HOUSTON and TUPELO, Miss., April 22, 2024 /PRNewswire/ — Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended March 31, 2024.
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. All adjusted financial results discussed herein are adjusted results from continuing operations.
For the first quarter of 2024, the Company reported net income available to common shareholders of $114.6 million, or $0.62 per diluted common share, compared with $74.3 million, or $0.40 per diluted common share, for the first quarter of 2023 and $256.7 million, or $1.41 per diluted common share, for the fourth quarter of 2023. Adjusted net income available to common shareholders from continuing operations(1) was $114.4 million, or $0.62 per diluted common share, for the first quarter of 2024, compared with $120.7 million, or $0.66 per diluted common share, for the first quarter of 2023 and $72.7 million, or $0.40 per diluted common share, for the fourth quarter of 2023. Additionally, the Company reported adjusted PPNR from continuing operations(1) of $174.2 million, or 1.44% of average assets on an annualized basis, for the first quarter of 2024 compared to $169.6 million, or 1.41% of average assets on an annualized basis, for the first quarter of 2023 and $137.9 million, or 1.13% of average assets on an annualized basis, for the fourth quarter of 2023.
Net Interest Revenue
Net interest revenue was $353.9 million for the first quarter of 2024, compared to $354.3 million for the first quarter of 2023 and $334.6 million for the fourth quarter of 2023. The net interest margin (fully taxable equivalent) was 3.22% for the first quarter of 2024, compared with 3.29% for the first quarter of 2023 and 3.04% for the fourth quarter of 2023.
Net interest revenue increased $19.3 million, or 5.8%, compared to the fourth quarter of 2023 as the Company continues to benefit from the fourth quarter 2023 securities portfolio repositioning and improved earning asset mix resulting from continued deployment of cash as well as first quarter 2024 loan growth. Purchase accounting accretion revenue was $3.5 million and $4.1 million for the first quarter of 2024 and the fourth quarter of 2023, respectively.
Yield on net loans, loans held for sale, and leases excluding accretion, was 6.46% for the first quarter of 2024, up 3 basis points from 6.43% for the fourth quarter of 2023. Approximately 28% of our total loans are floating (reprice within 30 days), and another 20% reprice within 12 months. Our total loan beta, excluding accretion, is 46% cycle-to-date. Investment securities yielded 3.13% in the first quarter of 2024, up 65 basis points from 2.48% in the fourth quarter of 2023, and up from 1.84% in the first quarter of 2023, reflective of the securities restructurings that occurred in 2023. As a result, the yield on total interest earning assets increased to 5.80% for the first quarter of 2024, up 21 basis points from 5.59% for the fourth quarter of 2023.
The average cost of total deposits increased to 2.45% for the first quarter of 2024, up 13 basis points compared to the fourth quarter of 2023. The first quarter increase in total deposit costs continued to slow compared to recent quarters. Total interest-bearing liabilities cost increased to 3.40% for the first quarter of 2024 from 3.34% for the fourth quarter of 2023. Our total deposit beta, excluding brokered deposits, is 43% cycle-to-date.
Balance Sheet Activity
Loans and leases, net of unearned income, increased $385.6 million during the first quarter, or 4.8% annualized to $32.9 billion. The loan growth for the quarter was primarily in our non-real estate and owner occupied commercial and industrial portfolios as well as residential mortgages.
Total deposits were $38.1 billion as of March 31, 2024, a decline of $376.9 million from the prior quarter. The decline included a $262.8 million reduction in brokered deposits as the Company continues to reduce its use of brokered deposits. Total public fund balances declined $874.0 million from the linked quarter to $4.8 billion at March 31, 2024, reflecting seasonal volatility in these balances. Importantly, core customer deposits, which excludes brokered deposits and public funds, reflected organic growth of approximately $400.0 million compared to December 31, 2023. In addition, we had approximately $360.0 million in customer balances transition from repo products into deposit products during the first quarter of 2024.
The March 31, 2024 loan to deposit ratio was 86.3% and securities to total assets was 17.2%, reflecting continued strong liquidity. Noninterest bearing deposits represented 23.1% of total deposits at the end of the first quarter of 2024, reflecting a slight decline from 24.0% at December 31, 2023. The Company’s deposit base continues to be very granular, with average transaction account balances of approximately $23,000 for consumer accounts and $129,000 for commercial accounts at March 31, 2024. Additionally, approximately 98% of the Company’s deposit accounts have balances less than $250,000, and approximately 74% of our deposit balances were FDIC insured or collateralized at quarter-end.
Total investment securities increased $0.2 billion during the quarter to $8.3 billion at March 31, 2024. Cash, due from balances and deposits at the Federal Reserve declined $1.2 billion to $3.0 billion at March 31, 2024, as the Company continued to reinvest in securities, reduce reliance on brokered deposits and fund loan growth. Additionally, the Company refinanced the $3.5 billion bank term funding program borrowing early in the first quarter, lowering the cost from 4.84% at December 31, 2023 to 4.76% at March 31, 2024.
Credit Results, Provision for Credit Losses and Allowance for Credit Losses
Net charge-offs for the first quarter of 2024 were $19.5 million, or 0.24% of average net loans and leases on an annualized basis, compared with net charge-offs of $1.9 million, or 0.02% of average net loans and leases on an annualized basis, for the first quarter of 2023 and net charge-offs of $23.8 million, or 0.29% of average net loans and leases on an annualized basis, for the fourth quarter of 2023. The provision for credit losses for the first quarter of 2024 was $22.0 million, compared with $10.0 million for the first quarter of 2023 and $38.0 million for the fourth quarter of 2023. The allowance for credit losses of $472.6 million at March 31, 2024 remained unchanged from the prior quarter at 1.44% of total loans and leases.
Total non-performing assets as a percent of total assets were 0.51% at March 31, 2024 compared to 0.32% at March 31, 2023 and 0.45% at December 31, 2023. Total non-performing loans and leases as a percent of loans and leases, net were 0.73% at March 31, 2024, compared to 0.51% at March 31, 2023 and 0.67% at December 31, 2023. Other real estate owned and other repossessed assets was $5.3 million at March 31, 2024 compared to the March 31, 2023 balance of $5.3 million and the December 31, 2023 balance of $6.2 million. For the first quarter of 2024, criticized and classified loans were relatively stable. Criticized loans represented 2.64% of loans at March 31, 2024 compared to 2.86% at March 31, 2023 and 2.60% at December 31, 2023, while classified loans were 2.19% at March 31, 2024 compared to 2.28% at March 31, 2023 and 2.09% at December 31, 2023.
Noninterest Revenue
Noninterest revenue was $83.8 million for the first quarter of 2024 compared with $34.5 million for the first quarter of 2023 and negative $311.5 million for the fourth quarter of 2023. Adjusted noninterest revenue(1) for the first quarter of 2024 was $83.8 million, compared with $85.7 million for the first quarter of 2023 and $73.1 million for the fourth quarter of 2023. Adjusted noninterest revenue(1) for the first quarter of 2024 excludes an insignificant amount of securities losses while fourth quarter 2023 adjusted noninterest revenue(1) excludes the securities portfolio restructuring loss of $384.5 million. The linked quarter increase in adjusted noninterest revenue(1) was driven primarily by growth in mortgage banking revenue, as well as deposit service revenue. The increase in mortgage revenue was in both production and servicing revenue, as well as positive variance related to the mortgage servicing rights (MSR) valuation.
Credit card, debit card and merchant fee revenue was $12.2 million for the first quarter of 2024, compared with $11.9 million for the first quarter of 2023 and $12.9 million for the fourth quarter of 2023. Deposit service charge revenue was $18.4 million for the first quarter of 2024 compared with $16.5 million for the first quarter of 2023 and $11.2 million for the fourth quarter of 2023. Deposit service charge revenue for the fourth quarter of 2023 included an adjustment of approximately $8 million, resulting from deposit service charge changes. These changes are expected to result in a reduction in revenue of approximately $3 million per year and are fully reflected in the first quarter 2024 run rate.
Other noninterest revenue was $24.0 million for the first quarter of 2024, compared with $29.8 million for the first quarter of 2023 and $27.6 million for the fourth quarter of 2023. The decline compared to the fourth quarter of 2023 was driven by a number of smaller variances including declines in death benefits on bank-owned life insurance, payroll processing revenue, and equity investment valuations.
Mortgage production and servicing revenue totaled $6.5 million for the first quarter of 2024, compared with $8.4 million for the first quarter of 2023 and $3.9 million for the fourth quarter of 2023. The net MSR valuation adjustment was insignificant for the first quarter of 2024, compared with a negative $2.3 million for the first quarter of 2023 and a negative $5.1 million for the fourth quarter of 2023. Mortgage origination volume for the first quarter of 2024 was $437.2 million, compared with $454.2 million for the first quarter of 2023 and $434.7 million for the fourth quarter of 2023.
Noninterest Expense
Noninterest expense for the first quarter of 2024 was $263.2 million, compared with $284.6 million for the first quarter of 2023 and $329.4 million for the fourth quarter of 2023. Adjusted noninterest expense(1) for the first quarter of 2024 was $263.5 million, compared with $270.4 million for the first quarter of 2023 and $269.8 million for the fourth quarter of 2023. The adjusted efficiency ratio(1) was 60.1% for the first quarter of 2024, meaningfully improved from 66.0% for the fourth quarter of 2023 and 61.3% for the first quarter of 2023.
The $6.2 million, or 2.3%, linked quarter decline in adjusted noninterest expense(1) was driven by declines in data processing and software expense as well as other noninterest expense, partially offset by a seasonal increase in salaries and employee benefits. Salaries and employee benefits increased $8.6 million compared to the fourth quarter of 2023 with nearly half of the increase as a result of seasonal increases in payroll tax expense resulting from the annual FICA reset and 401(k) expense related to annual incentive compensation payouts. Additionally, certain other incentive based accruals increased as a result of strong operating performance. Data processing and software expense declined $2.9 million compared to the fourth quarter of 2023 primarily as a result of certain seasonal and volume related factors as well as timing. Other noninterest expense declined $11.4 million on an adjusted basis compared to the fourth quarter of 2023. This decline included decreases in a number of expense items including legal fees, advertising and public relations, contributions and operational losses.
Capital Management
Total shareholders’ equity was $5.2 billion at March 31, 2024 compared with $4.5 billion at March 31, 2023 and $5.2 billion at December 31, 2023. Estimated regulatory capital ratios at March 31, 2024 included Common Equity Tier 1 capital of 11.7%, Tier 1 capital of 12.1%, Total risk-based capital of 14.5%, and Tier 1 leverage capital of 9.5%. During the first quarter of 2024, the Company repurchased 657,593 shares of common stock under its 10 million share authorization for 2024. Outstanding common shares were 182.7 million as of March 31, 2024.
Summary
Rollins concluded, “I’m excited to see the hard work of teammates across our organization bear fruit in the financial results we’ve reported this quarter. Our efforts to improve our balance sheet profile, improve operating efficiency, and produce disciplined growth have contributed to meaningful improvement in virtually all of our key performance metrics. We’ve also been able to maintain stable credit quality metrics and a strong capital base. I’m encouraged by this momentum as we look to the remainder of the year and beyond.”
Key Transactions
Effective November 30, 2023, the Company completed the sale of its insurance subsidiary, Cadence Insurance, to Arthur J. Gallagher & Co. for approximately $904 million, subject to customary purchase price adjustments. The Transaction resulted in net capital creation of approximately $620 million, including a net gain on sale of approximately $520 million. The gain along with Cadence Insurance’s historical financial results for periods prior to the divestiture have been reflected in the consolidated financial statements as discontinued operations. Additionally, current and prior period adjusted earnings exclude the impact of discontinued operations. The purchase price and related gain remain subject to additional adjustments in accordance with the purchase agreement.
Conference Call and Webcast
The Company will conduct a conference call to discuss its first quarter 2024 financial results on April 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 20 of this news release.
(2) See Table 14 for detail on non-routine income and expenses.
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 (the “Cadence Insurance Transaction”) on the Company’s financial condition and future net income and earnings per share, the amount of net after-tax proceeds expected to be received by the Company from the Cadence Insurance Transaction, and the Company’s ability to deploy capital into strategic and growth initiatives. Forward-looking statements are based upon management’s expectations as well as certain assumptions and estimates made by, and information available to, the Company’s management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company’s control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.
Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company’s net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company’s growth, expansion, acquisition, or divestment strategies (including the Cadence Insurance Transaction), including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends or coupons on the Company’s 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating Rate Subordinated Notes due November 20, 2029; possible downgrades in the Company’s credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements; the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company’s customers. The Company also faces risks from natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from Russia’s military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.
The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company’s goodwill or other intangible assets; losses of key employees and personnel; the diversion of management’s attention from ongoing business operations and opportunities; and the company’s success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.
In addition, the Company faces risks from the failure to achieve the expected impact on the Company’s financial condition; and risks associated with unexpected costs or liabilities relating to the Cadence Insurance Transaction.
The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company’s periodic and current reports filed with the FDIC, including those factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 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
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Earnings Summary:
Interest revenue
$ 637,113
$ 615,187
$ 595,459
$ 573,395
$ 526,126
Interest expense
283,205
280,582
266,499
239,868
171,862
Net interest revenue
353,908
334,605
328,960
333,527
354,264
Provision for credit losses
22,000
38,000
17,000
15,000
10,000
Net interest revenue, after provision for credit losses
331,908
296,605
311,960
318,527
344,264
Noninterest revenue
83,786
(311,460)
73,989
86,664
34,463
Noninterest expense
263,207
329,367
274,442
267,466
284,647
Income (loss) from continuing operations before income taxes
152,487
(344,222)
111,507
137,725
94,080
Income tax expense (benefit)
35,509
(80,485)
24,355
30,463
21,073
Income (loss) from continuing operations
116,978
(263,737)
87,152
107,262
73,007
Income from discontinued operations, net of taxes
—
522,801
5,431
6,766
3,622
Net income
116,978
259,064
92,583
114,028
76,629
Less: Preferred dividends
2,372
2,372
2,372
2,372
2,372
Net income available to common shareholders
$ 114,606
$ 256,692
$ 90,211
$ 111,656
$ 74,257
Balance Sheet – Period End Balances
Total assets
$ 48,313,863
$ 48,934,510
$ 48,523,010
$ 48,838,660
$ 51,693,096
Total earning assets
43,968,692
44,192,887
43,727,058
44,010,411
46,806,214
Available for sale securities
8,306,589
8,075,476
9,643,231
10,254,580
10,877,879
Loans and leases, net of unearned income
32,882,616
32,497,022
32,520,593
32,556,708
31,282,594
Allowance for credit losses (ACL)
472,575
468,034
446,859
466,013
453,727
Net book value of acquired loans
6,011,007
6,353,344
6,895,487
7,357,174
7,942,980
Unamortized net discount on acquired loans
23,715
26,928
30,761
37,000
41,748
Total deposits
38,120,226
38,497,137
38,335,878
38,701,669
39,406,454
Total deposits and repurchase agreements
38,214,616
38,948,653
39,198,467
39,492,427
40,177,789
Other short-term borrowings
3,500,000
3,500,000
3,500,223
3,500,226
5,700,228
Subordinated and long-term debt
430,123
438,460
449,323
449,733
462,144
Total shareholders’ equity
5,189,932
5,167,843
4,395,257
4,485,850
4,490,417
Total shareholders’ equity, excluding AOCI (1)
5,981,265
5,929,672
5,705,178
5,648,925
5,572,303
Common shareholders’ equity
5,022,939
5,000,850
4,228,264
4,318,857
4,323,424
Common shareholders’ equity, excluding AOCI (1)
$ 5,814,272
$ 5,762,679
$ 5,538,185
$ 5,481,932
$ 5,405,310
Balance Sheet – Average Balances
Total assets
$ 48,642,540
$ 48,444,176
$ 48,655,138
$ 49,067,121
$ 48,652,201
Total earning assets
44,226,077
43,754,664
44,003,639
44,229,519
43,817,318
Available for sale securities
8,269,708
9,300,714
10,004,441
10,655,791
11,354,457
Loans and leases, net of unearned income
32,737,574
32,529,030
32,311,572
31,901,096
30,891,640
Total deposits
38,421,272
38,215,379
38,465,975
38,934,793
38,904,048
Total deposits and repurchase agreements
38,630,620
38,968,397
39,293,030
39,708,963
39,632,023
Other short-term borrowings
3,500,000
3,503,320
3,510,942
3,541,985
3,326,196
Subordinated and long-term debt
434,579
443,251
449,568
455,617
462,385
Total shareholders’ equity
5,194,048
4,507,343
4,505,162
4,539,353
4,396,461
Common shareholders’ equity
$ 5,027,055
$ 4,340,350
$ 4,338,169
$ 4,372,360
$ 4,229,468
Nonperforming Assets:
Non-performing loans and leases (NPL) (2)
241,007
216,141
150,038
157,243
160,615
Other real estate owned and other assets
5,280
6,246
2,927
2,857
5,327
Non-performing assets (NPA)
$ 246,287
$ 222,387
$ 152,965
$ 160,100
$ 165,942
(1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 21 – 25.
(2) At March 31, 2024, $59.9 million of NPL is covered by government guarantees from the SBA, FHA, VA or USDA.
Table 2
Selected Financial Ratios
Quarter Ended
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Financial Ratios and Other Data:
Return on average assets from continuing operations (2)
0.97 %
(2.16) %
0.71 %
0.88 %
0.61 %
Return on average assets (2)
0.97 %
2.12 %
0.75 %
0.93 %
0.64 %
Adjusted return on average assets from continuing operations (1)(2)
0.97
0.62
0.82
0.92
1.03
Return on average common shareholders’ equity from continuing operations (2)
9.17
(24.32)
7.75
9.62
6.77
Return on average common shareholders’ equity (2)
9.17
23.46
8.25
10.24
7.12
Adjusted return on average common shareholders’ equity from continuing operations (1)(2)
9.15
6.65
8.93
10.10
11.58
Return on average tangible common equity from continuing operations (1)(2)
12.94
(36.79)
11.75
14.55
10.44
Return on average tangible common equity (1)(2)
12.94
35.49
12.50
15.49
10.97
Adjusted return on average tangible common equity from continuing operations (1)(2)
12.92
10.06
13.53
15.27
17.84
Pre-tax pre-provision net revenue from continuing operation to total average assets (1)(2)
1.44
(2.51)
1.05
1.25
0.87
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (1)(2)
1.44
1.13
1.18
1.30
1.41
Net interest margin-fully taxable equivalent
3.22
3.04
2.98
3.03
3.29
Net interest rate spread-fully taxable equivalent
2.40
2.25
2.21
2.29
2.65
Efficiency ratio fully tax equivalent (1)
60.05
NM
67.17
60.51
73.03
Adjusted efficiency ratio fully tax equivalent (1)
60.12
66.01
63.64
58.97
61.31
Loan/deposit ratio
86.26 %
84.41 %
84.83 %
84.12 %
79.38 %
Full time equivalent employees
5,322
5,333
6,160
6,479
6,567
Credit Quality Ratios:
Net charge-offs to average loans and leases (2)
0.24 %
0.29 %
0.42 %
0.16 %
0.02 %
Provision for credit losses to average loans and leases (2)
0.27
0.46
0.21
0.19
0.13
ACL to loans and leases, net
1.44
1.44
1.37
1.43
1.45
ACL to NPL
196.08
216.54
297.83
296.36
282.49
NPL to loans and leases, net
0.73
0.67
0.46
0.48
0.51
NPA to total assets
0.51
0.45
0.32
0.33
0.32
Equity Ratios:
Total shareholders’ equity to total assets
10.74 %
10.56 %
9.06 %
9.19 %
8.69 %
Total common shareholders’ equity to total assets
10.40
10.22
8.71
8.84
8.36
Tangible common shareholders’ equity to tangible assets (1)
7.60
7.44
5.86
6.00
5.66
Tangible common shareholders’ equity, excluding AOCI, to tangible assets, excluding AOCI (1)
9.13
8.90
8.41
8.25
7.65
Capital Adequacy (3):
Common Equity Tier 1 capital
11.7 %
11.6 %
10.3 %
10.1 %
10.1 %
Tier 1 capital
12.1
12.1
10.8
10.5
10.6
Total capital
14.5
14.3
12.9
12.7
12.8
Tier 1 leverage capital
9.5
9.3
8.6
8.5
8.4
(1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 21 – 25.
(2) Annualized.
(3) Current quarter regulatory capital ratios are estimated.
NM – Not meaningful
Table 3
Selected Financial Information
Quarter Ended
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Common Share Data:
Diluted earnings (losses) per share from continuing operations
$ 0.62
$ (1.46)
$ 0.46
$ 0.57
$ 0.38
Adjusted earnings per share from continuing operations (1)
0.62
0.40
0.53
0.60
0.66
Diluted earnings per share
0.62
1.41
0.49
0.61
0.40
Cash dividends per share
0.250
0.235
0.235
0.235
0.235
Book value per share
27.50
27.35
23.15
23.65
23.67
Tangible book value per share (1)
19.48
19.32
15.09
15.56
15.55
Market value per share (last)
29.00
29.59
21.22
19.88
20.76
Market value per share (high)
30.03
31.45
25.87
21.73
28.18
Market value per share (low)
24.99
19.67
19.00
16.95
19.24
Market value per share (average)
27.80
24.40
22.56
19.73
24.88
Dividend payout ratio from continuing operations
40.48 %
(16.13) %
51.09 %
41.23 %
61.84 %
Adjusted dividend payout ratio from continuing operations (1)
40.32 %
58.75 %
44.34 %
39.17 %
35.61 %
Total shares outstanding
182,681,325
182,871,775
182,611,075
182,626,229
182,684,578
Average shares outstanding – diluted
185,574,130
182,688,190
184,645,004
183,631,570
183,908,798
Yield/Rate:
(Taxable equivalent basis)
Loans, loans held for sale, and leases
6.50 %
6.48 %
6.39 %
6.24 %
6.00 %
Loans, loans held for sale, and leases excluding net accretion on acquired loans and leases
6.46
6.43
6.31
6.18
5.87
Available for sale securities:
Taxable
3.11
2.45
2.07
2.09
1.80
Tax-exempt
4.25
3.78
3.23
3.21
3.21
Other investments
5.48
5.41
5.36
5.05
4.64
Total interest earning assets and revenue
5.80
5.59
5.38
5.21
4.88
Deposits
2.45
2.32
2.14
1.87
1.28
Interest bearing demand and money market
3.11
3.02
2.79
2.49
2.03
Savings
0.57
0.56
0.56
0.51
0.36
Time
4.42
4.22
3.98
3.69
2.24
Total interest bearing deposits
3.21
3.10
2.88
2.58
1.86
Fed funds purchased, securities sold under agreement to repurchase and other
4.86
4.33
4.27
3.97
3.73
Short-term FHLB borrowings
—
—
3.54
5.24
4.66
Short-term BTFP borrowings
4.84
5.04
5.15
5.15
—
Total interest bearing deposits and short-term borrowings
3.39
3.33
3.16
2.90
2.20
Long-term debt
4.35
4.18
4.22
4.23
4.27
Total interest bearing liabilities
3.40
3.34
3.17
2.92
2.23
Interest bearing liabilities to interest earning assets
75.73 %
76.08 %
75.74 %
74.57 %
71.24 %
Net interest income tax equivalent adjustment (in thousands)
$ 636
$ 987
$ 1,081
$ 1,063
$ 1,051
(1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 21 – 25.
NM – Not meaningful
Table 4
Consolidated Balance Sheets
(Unaudited)
As of
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
ASSETS
Cash and due from banks
$ 427,543
$ 798,177
$ 594,787
$ 722,625
$ 660,431
Interest bearing deposits with other banks and Federal funds sold
2,609,931
3,434,088
1,400,858
1,005,889
4,449,631
Available for sale securities, at fair value
8,306,589
8,075,476
9,643,231
10,254,580
10,877,879
Loans and leases, net of unearned income
32,882,616
32,497,022
32,520,593
32,556,708
31,282,594
Allowance for credit losses
472,575
468,034
446,859
466,013
453,727
Net loans and leases
32,410,041
32,028,988
32,073,734
32,090,695
30,828,867
Loans held for sale, at fair value
169,556
186,301
162,376
193,234
196,110
Premises and equipment, net
822,666
802,133
789,698
804,732
801,463
Goodwill
1,367,785
1,367,785
1,367,785
1,367,785
1,367,785
Other intangible assets, net
96,126
100,191
104,596
109,033
115,113
Bank-owned life insurance
645,167
642,840
639,073
634,985
631,174
Other assets
1,458,459
1,498,531
1,590,769
1,486,070
1,609,232
Assets of discontinued operations
—
—
156,103
169,032
155,411
Total Assets
$ 48,313,863
$ 48,934,510
$ 48,523,010
$ 48,838,660
$ 51,693,096
LIABILITIES
Deposits:
Demand: Noninterest bearing
$ 8,820,468
$ 9,232,068
$ 9,648,191
$ 10,223,508
$ 11,517,037
Interest bearing
18,945,982
19,276,596
18,334,551
18,088,711
18,146,678
Savings
2,694,777
2,720,913
2,837,348
2,983,709
3,226,685
Time deposits
7,658,999
7,267,560
7,515,788
7,405,741
6,516,054
Total deposits
38,120,226
38,497,137
38,335,878
38,701,669
39,406,454
Securities sold under agreement to repurchase
94,390
451,516
862,589
790,758
771,335
Other short-term borrowings
3,500,000
3,500,000
3,500,223
3,500,226
5,700,228
Subordinated and long-term debt
430,123
438,460
449,323
449,733
462,144
Other liabilities
979,192
879,554
876,195
806,305
763,912
Liabilities of discontinued operations
—
—
103,545
104,119
98,606
Total Liabilities
43,123,931
43,766,667
44,127,753
44,352,810
47,202,679
SHAREHOLDERS’ EQUITY
Preferred stock
166,993
166,993
166,993
166,993
166,993
Common stock
456,703
457,179
456,528
456,566
456,711
Capital surplus
2,724,587
2,743,066
2,733,003
2,724,021
2,715,981
Accumulated other comprehensive loss
(791,333)
(761,829)
(1,309,921)
(1,163,075)
(1,081,886)
Retained earnings
2,632,982
2,562,434
2,348,654
2,301,345
2,232,618
Total Shareholders’ Equity
5,189,932
5,167,843
4,395,257
4,485,850
4,490,417
Total Liabilities & Shareholders’ Equity
$ 48,313,863
$ 48,934,510
$ 48,523,010
$ 48,838,660
$ 51,693,096
Table 5
Consolidated Quarterly Average Balance Sheets
(Unaudited)
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
ASSETS
Cash and due from banks
$ 557,009
$ 443,504
$ 362,479
$ 402,744
$ 500,507
Interest bearing deposits with other banks and Federal funds sold
3,146,439
1,811,686
1,571,973
1,605,594
1,524,358
Available for sale securities, at fair value
8,269,708
9,300,714
10,004,441
10,655,791
11,354,457
Loans and leases, net of unearned income
32,737,574
32,529,030
32,311,572
31,901,096
30,891,640
Allowance for credit losses
473,849
447,879
459,698
457,027
442,486
Net loans and leases
32,263,725
32,081,151
31,851,874
31,444,069
30,449,154
Loans held for sale, at fair value
72,356
113,234
115,653
67,038
46,863
Premises and equipment, net
808,473
795,164
811,095
804,526
799,077
Goodwill
1,367,785
1,367,916
1,367,785
1,367,785
1,367,784
Other intangible assets, net
98,350
102,765
107,032
113,094
117,518
Bank-owned life insurance
643,189
640,439
636,335
632,489
630,601
Other assets
1,415,506
1,787,603
1,826,471
1,973,991
1,861,882
Total Assets
$ 48,642,540
$ 48,444,176
$ 48,655,138
$ 49,067,121
$ 48,652,201
LIABILITIES
Deposits:
Demand: Noninterest bearing
$ 9,072,619
$ 9,625,912
$ 9,921,617
$ 10,725,108
$ 12,203,079
Interest bearing
19,303,845
18,292,826
17,970,463
17,997,618
19,009,345
Savings
2,696,452
2,758,977
2,913,027
3,088,174
3,363,236
Time deposits
7,348,356
7,537,664
7,660,868
7,123,893
4,328,388
Total deposits
38,421,272
38,215,379
38,465,975
38,934,793
38,904,048
Securities sold under agreement to repurchase
209,348
753,018
827,055
774,170
727,975
Other short-term borrowings
3,500,000
3,503,320
3,510,942
3,541,985
3,326,196
Subordinated and long-term debt
434,579
443,251
449,568
455,617
462,385
Other liabilities
883,293
1,021,865
896,436
821,203
835,136
Total Liabilities
43,448,492
43,936,833
44,149,976
44,527,768
44,255,740
SHAREHOLDERS’ EQUITY
Preferred stock
166,993
166,993
166,993
166,993
166,993
Common stock
456,437
456,636
456,557
456,755
456,354
Capital surplus
2,733,902
2,733,985
2,726,686
2,717,866
2,710,501
Accumulated other comprehensive loss
(777,940)
(1,279,235)
(1,175,077)
(1,087,389)
(1,174,723)
Retained earnings
2,614,656
2,428,964
2,330,003
2,285,128
2,237,336
Total Shareholders’ Equity
5,194,048
4,507,343
4,505,162
4,539,353
4,396,461
Total Liabilities & Shareholders’ Equity
$ 48,642,540
$ 48,444,176
$ 48,655,138
$ 49,067,121
$ 48,652,201
Table 6
Consolidated Statements of Income
(Unaudited)
Quarter Ended
(Dollars in thousands, except per share data)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
INTEREST REVENUE:
Loans and leases
$ 528,940
$ 531,340
$ 520,126
$ 496,262
$ 457,084
Available for sale securities:
Taxable
63,405
55,801
50,277
53,531
48,512
Tax-exempt
687
1,927
2,375
2,427
2,477
Loans held for sale
1,184
1,418
1,468
961
603
Short-term investments
42,897
24,701
21,213
20,214
17,450
Total interest revenue
637,113
615,187
595,459
573,395
526,126
INTEREST EXPENSE:
Interest bearing demand deposits and money market accounts
149,403
139,144
126,296
111,938
95,344
Savings
3,801
3,918
4,108
3,915
3,014
Time deposits
80,670
80,143
76,867
65,517
23,950
Federal funds purchased and securities sold under agreement to repurchase
2,523
8,254
9,004
7,656
7,667
Short-term debt
42,109
44,451
45,438
46,036
37,015
Subordinated and long-term debt
4,699
4,672
4,786
4,806
4,872
Total interest expense
283,205
280,582
266,499
239,868
171,862
Net interest revenue
353,908
334,605
328,960
333,527
354,264
Provision for credit losses
22,000
38,000
17,000
15,000
10,000
Net interest revenue, after provision for credit losses
331,908
296,605
311,960
318,527
344,264
NONINTEREST REVENUE:
Mortgage banking
6,443
(1,137)
5,684
8,356
6,076
Credit card, debit card and merchant fees
12,162
12,902
12,413
12,617
11,851
Deposit service charges
18,338
11,161
16,867
17,208
16,482
Security (losses) gains, net
(9)
(384,524)
64
69
(51,261)
Wealth management
22,833
22,576
21,079
21,741
21,532
Other noninterest income
24,019
27,562
17,882
26,673
29,783
Total noninterest revenue
83,786
(311,460)
73,989
86,664
34,463
NONINTEREST EXPENSE:
Salaries and employee benefits
156,650
148,081
161,627
159,276
165,738
Occupancy and equipment
28,640
28,009
27,069
28,106
27,787
Data processing and software
30,028
32,922
29,127
27,289
31,105
Merger expense
—
—
—
122
5,070
Amortization of intangibles
4,066
4,405
4,436
6,081
4,466
Deposit insurance assessments
8,414
45,733
10,425
7,705
8,361
Pension settlement expense
—
11,226
600
—
—
Other noninterest expense
35,409
58,991
41,158
38,887
42,120
Total noninterest expense
263,207
329,367
274,442
267,466
284,647
Income (loss) from continuing operations before taxes
152,487
(344,222)
111,507
137,725
94,080
Income tax expense (benefit)
35,509
(80,485)
24,355
30,463
21,073
Income (loss) from continuing operations
$ 116,978
$ (263,737)
$ 87,152
$ 107,262
$ 73,007
Income from discontinued operations
—
706,129
7,242
9,238
4,982
Income tax expense from discontinued operations
—
183,328
1,811
2,472
1,360
Income from discontinued operations, net of taxes
—
522,801
5,431
6,766
3,622
Net income
116,978
259,064
92,583
114,028
76,629
Less: Preferred dividends
2,372
2,372
2,372
2,372
2,372
Net income available to common shareholders
$ 114,606
$ 256,692
$ 90,211
$ 111,656
$ 74,257
Diluted earnings (losses) per common share from continuing operations
$ 0.62
$ (1.46)
$ 0.46
$ 0.57
$ 0.38
Diluted earnings per common share
$ 0.62
$ 1.41
$ 0.49
$ 0.61
$ 0.40
Table 7
Selected Loan Portfolio Data
(Unaudited)
Quarter Ended
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate
$ 9,121,457
$ 8,935,598
$ 9,199,024
$ 9,636,481
$ 9,159,387
Owner occupied
4,442,357
4,349,060
4,361,530
4,358,000
4,278,468
Total commercial and industrial
13,563,814
13,284,658
13,560,554
13,994,481
13,437,855
Commercial real estate
Construction, acquisition and development
3,864,351
3,910,962
3,819,307
3,744,114
3,703,137
Income producing
5,783,943
5,736,871
5,720,606
5,596,134
5,368,676
Total commercial real estate
9,648,294
9,647,833
9,539,913
9,340,248
9,071,813
Consumer
Residential mortgages
9,447,675
9,329,692
9,186,179
8,989,614
8,536,032
Other consumer
222,833
234,839
233,947
232,365
236,894
Total consumer
9,670,508
9,564,531
9,420,126
9,221,979
8,772,926
Total loans and leases, net of unearned income
$ 32,882,616
$ 32,497,022
$ 32,520,593
$ 32,556,708
$ 31,282,594
NON-PERFORMING ASSETS
Non-performing Loans and Leases
Commercial and industrial
Non-real estate
$ 149,683
$ 131,559
$ 67,962
$ 72,592
$ 65,783
Owner occupied
5,962
7,097
6,486
7,541
9,089
Total commercial and industrial
155,645
138,656
74,448
80,133
74,872
Commercial real estate
Construction, acquisition and development
3,787
1,859
4,608
4,496
1,850
Income producing
19,428
17,485
12,251
19,205
20,616
Total commercial real estate
23,215
19,344
16,859
23,701
22,466
Consumer
Residential mortgages
61,886
57,881
58,488
53,171
62,748
Other consumer
261
260
243
238
529
Total consumer
62,147
58,141
58,731
53,409
63,277
Total non-performing loans and leases
$ 241,007
$ 216,141
$ 150,038
$ 157,243
$ 160,615
Other real estate owned and repossessed assets
5,280
6,246
2,927
2,857
5,327
Total non-performing assets
$ 246,287
$ 222,387
$ 152,965
$ 160,100
$ 165,942
Government guaranteed portion of nonaccrual loans and leases covered by the SBA, FHA, VA or USDA
$ 59,897
$ 49,551
$ 42,046
$ 35,322
$ 30,218
Loans and leases 90+ days past due, still accruing
$ 30,048
$ 22,466
$ 9,152
$ 4,412
$ 5,164
Table 8
Allowance for Credit Losses
(Unaudited)
Quarter Ended
(Dollars in thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period
$ 468,034
$ 446,859
$ 466,013
$ 453,727
$ 440,347
Charge-offs:
Commercial and industrial
(16,997)
(21,385)
(34,959)
(13,598)
(2,853)
Commercial real estate
(2,244)
(2,290)
(931)
(126)
(1,988)
Consumer
(2,395)
(3,229)
(1,608)
(1,916)
(2,189)
Total loans charged-off
(21,636)
(26,904)
(37,498)
(15,640)
(7,030)
Recoveries:
Commercial and industrial
1,312
2,117
2,240
1,360
3,406
Commercial real estate
150
95
201
618
779
Consumer
715
867
903
948
970
Total recoveries
2,177
3,079
3,344
2,926
5,155
Net (charge-offs) recoveries
(19,459)
(23,825)
(34,154)
(12,714)
(1,875)
Adoption of new ASU related to modified loans (3)
—
—
—
—
255
Provision for credit losses related to loans and leases
24,000
45,000
15,000
25,000
15,000
Balance, end of period
$ 472,575
$ 468,034
$ 446,859
$ 466,013
$ 453,727
Average loans and leases, net of unearned income, for period
$ 32,737,574
$ 32,529,030
$ 32,311,572
$ 31,901,096
$ 30,891,640
Ratio: Net charge-offs (recoveries) to average loans and leases (2)
0.24 %
0.29 %
0.42 %
0.16 %
0.02 %
RESERVE FOR UNFUNDED COMMITMENTS (1)
Balance, beginning of period
$ 8,551
$ 15,551
$ 13,551
$ 23,551
$ 28,551
(Reversal) provision for credit losses for unfunded commitments
(2,000)
(7,000)
2,000
(10,000)
(5,000)
Balance, end of period
$ 6,551
$ 8,551
$ 15,551
$ 13,551
$ 23,551
(1)
The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets.
(2)
Annualized.
(3)
Cadence elected to adopt the new accounting guidance effective January 1, 2023, which eliminates the TDR recognition and measurement guidance via the modified retrospective transition method (ASU 2022-02). As such, there is no TDR reporting effective January 1, 2023.
Table 9
Loan Portfolio by Grades
(Unaudited)
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
December 31, 2023
(In thousands)
Pass
Special Mention
Substandard
Loss
Impaired
Purchased Credit Deteriorated (Loss)
Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate
$ 8,450,809
$ 101,607
$ 294,895
$ 13
$ 84,457
$ 3,817
$ 8,935,598
Owner occupied
4,287,190
32,409
27,070
—
1,275
1,116
4,349,060
Total commercial and industrial
12,737,999
134,016
321,965
13
85,732
4,933
13,284,658
Commercial real estate
Construction, acquisition and development
3,894,551
3,364
13,047
—
—
—
3,910,962
Income producing
5,527,388
23,727
170,217
—
15,539
—
5,736,871
Total commercial real estate
9,421,939
27,091
183,264
—
15,539
—
9,647,833
Consumer
Residential mortgages
9,258,002
4,066
66,050
—
—
1,574
9,329,692
Other consumer
234,367
—
472
—
—
—
234,839
Total consumer
9,492,369
4,066
66,522
—
—
1,574
9,564,531
Total loans and leases, net of unearned income
$ 31,652,307
$ 165,173
$ 571,751
$ 13
$ 101,271
$ 6,507
$ 32,497,022
Table 10
Geographical Loan Information
(Unaudited)
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
$ 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
Loan growth, excluding loans acquired during the quarter ($)
$ 5,960
$ (20,629)
$ 112,739
$ (1,734)
$ (29,188)
$ 29,176
$ 15,668
$ (50,779)
$ 203,310
$ 121,071
$ 385,594
Loan growth, excluding loans acquired during the quarter (%) (annualized)
0.90 %
(7.12) %
20.88 %
(0.30) %
(8.51) %
3.93 %
10.72 %
(11.64) %
6.18 %
11.51 %
4.77 %
December 31, 2023
(Dollars in thousands)
Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Missouri
Tennessee
Texas
Other
Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate
$ 417,687
$ 158,759
$ 503,957
$ 528,205
$ 346,840
$ 532,593
$ 62,507
$ 373,991
$ 3,718,233
$ 2,292,826
$ 8,935,598
Owner occupied
345,679
247,584
281,750
313,532
292,347
591,611
90,227
167,464
1,676,272
342,594
4,349,060
Total commercial and industrial
763,366
406,343
785,707
841,737
639,187
1,124,204
152,734
541,455
5,394,505
2,635,420
13,284,658
Commercial real estate
Construction, acquisition and development
202,977
79,365
363,597
472,953
54,985
194,535
46,014
182,393
1,799,697
514,446
3,910,962
Income producing
446,290
273,000
369,897
605,160
212,148
435,089
208,216
296,918
2,080,393
809,760
5,736,871
Total commercial real estate
649,267
352,365
733,494
1,078,113
267,133
629,624
254,230
479,311
3,880,090
1,324,206
9,647,833
Consumer
Residential mortgages
1,216,942
388,396
647,117
408,459
462,264
1,147,388
179,119
716,384
3,898,525
265,098
9,329,692
Other consumer
31,155
18,488
5,563
6,431
11,587
87,229
1,780
17,892
49,397
5,317
234,839
Total consumer
1,248,097
406,884
652,680
414,890
473,851
1,234,617
180,899
734,276
3,947,922
270,415
9,564,531
Total loans and leases, net of unearned income
$ 2,660,730
$ 1,165,592
$ 2,171,881
$ 2,334,740
$ 1,380,171
$ 2,988,445
$ 587,863
$ 1,755,042
$ 13,222,517
$ 4,230,041
$ 32,497,022
Table 11
Noninterest Revenue and Expense
(Unaudited)
Quarter Ended
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
NONINTEREST REVENUE:
Mortgage banking excl. MSR and MSR hedge market value adjustment
$ 6,460
$ 3,931
$ 5,842
$ 6,774
$ 8,379
MSR and MSR hedge market value adjustment
(17)
(5,068)
(158)
1,582
(2,303)
Credit card, debit card and merchant fees
12,162
12,902
12,413
12,617
11,851
Deposit service charges
18,338
11,161
16,867
17,208
16,482
Security (losses) gains, net
(9)
(384,524)
64
69
(51,261)
Trust income
11,322
11,301
10,574
10,084
10,553
Annuity fees
1,705
1,839
1,882
1,702
2,192
Brokerage commissions and fees
9,806
9,436
8,623
9,955
8,787
Bank-owned life insurance
3,946
4,728
4,108
3,811
3,647
Other miscellaneous income
20,073
22,834
13,774
22,862
26,136
Total noninterest revenue
$ 83,786
$ (311,460)
$ 73,989
$ 86,664
$ 34,463
NONINTEREST EXPENSE:
Salaries and employee benefits
$ 156,650
$ 148,081
$ 161,627
$ 159,276
$ 165,738
Occupancy and equipment
28,640
28,009
27,069
28,106
27,787
Deposit insurance assessments
8,414
45,733
10,425
7,705
8,361
Pension settlement expense
—
11,226
600
—
—
Advertising and public relations
4,224
12,632
5,671
5,618
4,241
Foreclosed property expense
268
915
270
323
980
Telecommunications
1,545
1,356
1,520
1,365
1,534
Travel and entertainment
2,236
3,146
2,442
2,850
2,565
Data processing and software
30,028
32,922
29,127
27,289
31,105
Professional, consulting and outsourcing
3,935
5,194
5,017
5,371
4,311
Amortization of intangibles
4,066
4,405
4,436
6,081
4,466
Legal
3,682
13,724
3,316
1,765
1,288
Merger expense
—
—
—
122
5,070
Postage and shipping
2,205
1,907
2,292
1,941
2,303
Other miscellaneous expense
17,314
20,117
20,630
19,654
24,898
Total noninterest expense
$ 263,207
$ 329,367
$ 274,442
$ 267,466
$ 284,647
Table 12
Average Balance and Yields
(Unaudited)
Quarter Ended
March 31, 2024
December 31, 2023
March 31, 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
$ 32,737,574
$ 525,878
6.46 %
$ 32,529,030
$ 527,688
6.44 %
$ 30,891,640
$ 447,449
5.87 %
Accretion income on acquired loans
3,515
0.04
4,127
0.05
10,028
0.13
Loans held for sale
72,356
1,184
6.58
113,234
1,418
4.97
46,863
603
5.22
Investment securities
Taxable
8,187,342
63,405
3.11
9,044,724
55,801
2.45
10,957,786
48,512
1.80
Tax-exempt
82,366
870
4.25
255,990
2,439
3.78
396,671
3,135
3.21
Total investment securities
8,269,708
64,275
3.13
9,300,714
58,240
2.48
11,354,457
51,647
1.84
Other investments
3,146,439
42,897
5.48
1,811,686
24,701
5.41
1,524,358
17,450
4.64
Total interest-earning assets
44,226,077
637,749
5.80 %
43,754,664
616,174
5.59 %
43,817,318
527,177
4.88 %
Other assets
4,890,312
5,137,391
5,277,369
Allowance for credit losses
473,849
447,879
442,486
Total assets
$ 48,642,540
$ 48,444,176
$ 48,652,201
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest bearing demand and money market
$ 19,303,845
$ 149,403
3.11 %
$ 18,292,826
$ 139,144
3.02 %
$ 19,009,345
95,344
2.03 %
Savings deposits
2,696,452
3,801
0.57
2,758,977
3,918
0.56
3,363,236
3,014
0.36
Time deposits
7,348,356
80,670
4.42
7,537,664
80,143
4.22
4,328,388
23,950
2.24
Total interest-bearing deposits
29,348,653
233,874
3.21
28,589,467
223,205
3.10
26,700,969
122,308
1.86
Fed funds purchased, securities sold under agreement to repurchase and other
209,348
2,528
4.86
756,336
8,257
4.33
832,831
7,669
3.73
Short-term FHLB borrowings
—
—
—
2
—
—
3,221,340
37,013
4.66
Short-term BTFP borrowings
3,500,000
42,104
4.84
3,500,000
44,448
5.04
—
—
—
Long-term borrowings
434,579
4,699
4.35
443,251
4,672
4.18
462,385
4,872
4.27
Total interest-bearing liabilities
33,492,580
283,205
3.40 %
33,289,056
280,582
3.34 %
31,217,525
171,862
2.23 %
Noninterest-bearing liabilities:
Demand deposits
9,072,619
9,625,912
12,203,079
Other liabilities
883,293
1,021,865
835,136
Total liabilities
43,448,492
43,936,833
44,255,740
Shareholders’ equity
5,194,048
4,507,343
4,396,461
Total liabilities and shareholders’ equity
$ 48,642,540
$ 48,444,176
$ 48,652,201
Net interest income/net interest spread
354,544
2.40 %
335,592
2.25 %
355,315
2.65 %
Net yield on earning assets/net interest margin
3.22 %
3.04 %
3.29 %
Taxable equivalent adjustment:
Loans and investment securities
(636)
(987)
(1,051)
Net interest revenue
$ 353,908
$ 334,605
$ 354,264
Table 13
Selected Additional Data
(Unaudited)
Quarter Ended
(Dollars in thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
MORTGAGE SERVICING RIGHTS (“MSR”):
Fair value, beginning of period
$ 106,824
$ 116,266
$ 111,417
$ 106,942
$ 109,744
Originations of servicing assets
2,736
2,636
4,065
1,990
1,385
Changes in fair value:
Due to payoffs/paydowns
(2,656)
(3,035)
(2,104)
(2,621)
(1,078)
Due to update in valuation assumptions
4,781
(9,043)
2,888
5,106
(3,109)
Fair value, end of period
$ 111,685
$ 106,824
$ 116,266
$ 111,417
$ 106,942
MORTGAGE BANKING REVENUE:
Origination
$ 3,165
$ 1,040
$ 2,031
$ 3,495
$ 3,344
Servicing
5,951
5,926
5,915
5,900
6,113
Payoffs/Paydowns
(2,656)
(3,035)
(2,104)
(2,621)
(1,078)
Total mortgage banking revenue excluding MSR
6,460
3,931
5,842
6,774
8,379
Market value adjustment on MSR
4,781
(9,043)
2,888
5,106
(3,109)
Market value adjustment on MSR Hedge
(4,798)
3,975
(3,046)
(3,524)
806
Total mortgage banking revenue
$ 6,443
$ (1,137)
$ 5,684
$ 8,356
$ 6,076
Mortgage loans serviced
$ 7,764,936
$ 7,702,592
$ 7,643,885
$ 7,550,676
$ 7,633,236
MSR/mortgage loans serviced
1.44 %
1.39 %
1.52 %
1.48 %
1.40 %
Quarter Ended
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
AVAILABLE FOR SALE SECURITIES, at fair value
U.S. Treasury securities
$ 239,402
$ 465,018
$ 1,996
$ 8,959
$ 15,849
Obligations of U.S. government agencies
318,233
332,011
1,004,374
1,112,326
1,358,350
Mortgage-backed securities issued or guaranteed by U.S. agencies (“MBS”):
Residential pass-through:
Guaranteed by GNMA
72,034
75,662
73,649
79,261
83,649
Issued by FNMA and FHLMC
4,254,227
4,387,101
5,541,895
5,895,704
6,164,294
Other residential mortgage-back securities
1,210,617
727,434
146,063
157,294
166,449
Commercial mortgage-backed securities
1,694,967
1,742,837
2,271,680
2,357,047
2,427,808
Total MBS
7,231,845
6,933,034
8,033,287
8,489,306
8,842,200
Obligations of states and political subdivisions
134,643
137,624
392,252
433,316
447,731
Other domestic debt securities
67,421
67,197
71,741
71,356
73,557
Foreign debt securities
315,045
140,592
139,581
139,317
140,192
Total available for sale securities
$ 8,306,589
$ 8,075,476
$ 9,643,231
$ 10,254,580
$ 10,877,879
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
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Adjusted Income from Continuing Operations Available to Common Shareholders
Income (loss) from continuing operations
$ 116,978
$ (263,737)
$ 87,152
$ 107,262
$ 73,007
Plus: Merger expense
—
—
—
122
5,070
Incremental merger related expense
—
7,500
—
1,671
8,960
Gain on extinguishment of debt
(576)
(652)
—
(1,140)
—
Restructuring and other nonroutine expenses
251
41,522
9,596
6,219
212
Pension settlement expense
—
11,226
600
—
—
Less: Security (losses) gains, net
(9)
(384,524)
64
69
(51,261)
Nonroutine (losses) gains, net
—
—
(6,653)
—
—
Tax adjustment
(74)
105,275
3,944
1,599
15,393
Adjusted income from continuing operations
116,736
75,108
99,992
112,466
123,117
Less: Preferred dividends
2,372
2,372
2,372
2,372
2,372
Adjusted income from continuing operations available to common shareholders
$ 114,364
$ 72,736
$ 97,620
$ 110,094
$ 120,745
Quarter Ended
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Pre-Tax Pre-Provision Net Revenue from Continuing Operations
Income (loss) from continuing operations
$ 116,978
$ (263,737)
$ 87,152
$ 107,262
$ 73,007
Plus: Provision for credit losses
22,000
38,000
17,000
15,000
10,000
Income tax expense (benefit)
35,509
(80,485)
24,355
30,463
21,073
Pre-tax pre-provision net revenue from continuing operations
$ 174,487
$ (306,222)
$ 128,507
$ 152,725
$ 104,080
Quarter Ended
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Adjusted Pre-Tax Pre-Provision Net Revenue from Continuing Operations
Income (loss) from continuing operations
$ 116,978
$ (263,737)
$ 87,152
$ 107,262
$ 73,007
Plus: Provision for credit losses
22,000
38,000
17,000
15,000
10,000
Merger expense
—
—
—
122
5,070
Incremental merger related expense
—
7,500
—
1,671
8,960
Gain on extinguishment of debt
(576)
(652)
—
(1,140)
—
Restructuring and other nonroutine expenses
251
41,522
9,596
6,219
212
Pension settlement expense
—
11,226
600
—
—
Income tax expense (benefit)
35,509
(80,485)
24,355
30,463
21,073
Less: Security (losses) gains, net
(9)
(384,524)
64
69
(51,261)
Nonroutine (losses) gains, net
$ —
$ —
$ (6,653)
$ —
$ —
Adjusted pre-tax pre-provision net revenue from continuing operations
$ 174,171
$ 137,898
$ 145,292
$ 159,528
$ 169,583
Quarter Ended
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Total Adjusted Noninterest Revenue
Total noninterest revenue
$ 83,786
$ (311,460)
$ 73,989
$ 86,664
$ 34,463
Less: Security (losses) gains, net
(9)
(384,524)
64
69
(51,261)
Nonroutine gains (losses), net
—
—
(6,653)
—
—
Total adjusted noninterest revenue
$ 83,795
$ 73,064
$ 80,578
$ 86,595
$ 85,724
Quarter Ended
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Total Adjusted Revenue
Net interest revenue
$ 353,908
$ 334,605
$ 328,960
$ 333,527
$ 354,264
Total Adjusted Noninterest Revenue
Total noninterest revenue
83,786
(311,460)
73,989
86,664
34,463
Less: Security (losses) gains, net
(9)
(384,524)
64
69
(51,261)
Nonroutine gains (losses), net
—
—
(6,653)
—
—
Total adjusted noninterest revenue
83,795
73,064
80,578
86,595
85,724
Total adjusted revenue
$ 437,703
$ 407,669
$ 409,538
$ 420,122
$ 439,988
Quarter Ended
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Total Adjusted Noninterest Expense
Total noninterest expense
$ 263,207
$ 329,367
$ 274,442
$ 267,466
$ 284,647
Less: Merger expense
—
—
—
122
5,070
Incremental merger related expense
—
7,500
—
1,671
8,960
Gain on extinguishment of debt
(576)
(652)
—
(1,140)
—
Restructuring and other nonroutine expenses
251
41,522
9,596
6,219
212
Pension settlement expense
—
11,226
600
—
—
Total adjusted noninterest expense
$ 263,532
$ 269,771
$ 264,246
$ 260,594
$ 270,405
Quarter Ended
(In thousands)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
Total Tangible Assets, Excluding AOCI
Total assets
$ 48,313,863
$ 48,934,510
$ 48,523,010
$ 48,838,660
$ 51,693,096
Less: Goodwill
1,367,785
1,367,785
1,367,785
1,367,785
1,367,785
Other identifiable intangible assets
96,126
100,191
104,596
109,033
115,113
Total tangible assets
46,849,952
47,466,534
47,050,629
47,361,842
50,210,198
Less: AOCI
(791,333)
(761,829)
(1,309,921)
(1,163,075)
(1,081,886)
Total tangible assets, excluding AOCI
$ 47,641,285
$ 48,228,363
$ 48,360,550
$ 48,524,917
$ 51,292,084
Quarter Ended
(Dollars in thousands, except per share data)
Mar 2024
Dec 2023
Sep 2023
Jun 2023
Mar 2023
PERIOD END BALANCES:
Total Shareholders’ Equity, Excluding AOCI
Total shareholders’ equity
$5,189,932
$5,167,843
$4,395,257
$4,485,850
$4,490,417
Less: AOCI
(791,333)
(761,829)
(1,309,921)
(1,163,075)
(1,081,886)
Total shareholders’ equity, excluding AOCI
$5,981,265
$5,929,672
$5,705,178
$5,648,925
$5,572,303
Common Shareholders’ Equity, Excluding AOCI
Total shareholders’ equity
$5,189,932
$5,167,843
$4,395,257
$4,485,850
$4,490,417
Less: preferred stock
166,993
166,993
166,993
166,993
166,993
Common shareholders’ equity
5,022,939
5,000,850
4,228,264
4,318,857
4,323,424
Less: AOCI
(791,333)
(761,829)
(1,309,921)
(1,163,075)
(1,081,886)
Common shareholders’ equity, excluding AOCI
$5,814,272
$5,762,679
$5,538,185
$5,481,932
$5,405,310
Total Tangible Common Shareholders’ Equity, Excluding AOCI
Total shareholders’ equity
$5,189,932
$5,167,843
$4,395,257
$4,485,850
$4,490,417
Less: Goodwill
1,367,785
1,367,785
1,367,785
1,367,785
1,367,785
Other identifiable intangible assets
96,126
100,191
104,596
109,033
115,113
Preferred stock
166,993
166,993
166,993
166,993
166,993
Total tangible common shareholders’ equity
3,559,028
3,532,874
2,755,883
2,842,039
2,840,526
Less: AOCI
(791,333)
(761,829)
(1,309,921)
(1,163,075)
(1,081,886)
Total tangible common shareholders’ equity, excluding AOCI
$4,350,361
$4,294,703
$4,065,804
$4,005,114
$3,922,412
AVERAGE BALANCES:
Total Tangible Common Shareholders’ Equity
Total shareholders’ equity
$5,194,048
$4,507,343
$4,505,162
$4,539,353
$4,396,461
Less: Goodwill
1,367,785
1,367,916
1,367,785
1,367,785
1,367,784
Other identifiable intangible assets
98,350
102,765
107,032
113,094
117,518
Preferred stock
166,993
166,993
166,993
166,993
166,993
Total tangible common shareholders’ equity
$3,560,920
$2,869,669
$2,863,352
$2,891,481
$2,744,166
Total average assets
$48,642,540
$48,444,176
$48,655,138
$49,067,121
$48,652,201
Total shares of common stock outstanding
182,681,325
182,871,775
182,611,075
182,626,229
182,684,578
Average shares outstanding-diluted
185,574,130
182,688,190
184,645,004
183,631,570
183,908,798
Tangible common shareholders’ equity to tangible assets (1)
7.60 %
7.44 %
5.86 %
6.00 %
5.66 %
Tangible common shareholders’ equity, excluding AOCI, to tangible assets, excluding AOCI (2)
9.13
8.90
8.41
8.25
7.65
Return on average tangible common equity from continuing operations (3)
12.94
(36.79)
11.75
14.55
10.44
Return on average tangible common equity (4)
12.94
35.49
12.50
15.49
10.97
Adjusted return on average tangible common equity from continuing operations (5)
12.92
10.06
13.53
15.27
17.84
Adjusted return on average assets from continuing operations (6)
0.97
0.62
0.82
0.92
1.03
Adjusted return on average common shareholders’ equity from continuing operations (7)
9.15
6.65
8.93
10.10
11.58
Pre-tax pre-provision net revenue from continuing operations to total average assets (8)
1.44
(2.51)
1.05
1.25
0.87
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (9)
1.44
1.13
1.18
1.30
1.41
Tangible book value per common share (10)
$ 19.48
$ 19.32
$ 15.09
$ 15.56
$ 15.55
Tangible book value per common share, excluding AOCI (11)
23.81
23.48
22.26
21.93
21.47
Adjusted earnings from continuing operations per common share (12)
$ 0.62
$ 0.40
$ 0.53
$ 0.60
$ 0.66
Adjusted dividend payout ratio from continuing operations (13)
40.32 %
58.75 %
44.34 %
39.17 %
35.61 %
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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