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Cadence Bank

Cadence Bank Announces Third Quarter 2024 Financial Results

HOUSTON and TUPELO, Miss., Oct. 21, 2024 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended September 30, 2024.

Highlights for the third quarter of 2024 included:

  • Reported quarterly net income available to common shareholders of $134.1 million, or $0.72 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 $135.6 million, or $0.73 per diluted common share, which represents an increase of $0.04 per share, or 5.8%, compared to the second quarter of 2024 adjusted net income from continuing operations available to common shareholders.(1)
  • Achieved quarterly adjusted pre-tax pre-provision net revenue from continuing operations (PPNR)(1) of $189.9 million, which is flat compared to the second quarter of 2024 and up $44.7 million from the third quarter of 2023. Year-to-date, adjusted PPNR(1) is $555.0 million, up $80.6 million or 17.0%, from the same period in 2023.
  • Period-end loans were flat for the quarter at $33.3 billion as higher levels of payoffs and paydowns offset new origination activity. Year-to-date, net loan growth is $807.0 million or 3.3% annualized.
  • Grew period-end total deposits by $985.7 million, or 10.4% on an annualized basis. Customer deposits, which exclude brokered deposits and public funds, increased $1.4 billion including approximately $435.0 million in customer overnight sweep activity. Excluding the sweep activity, customer deposits increased approximately $945.0 million in the quarter, or 11.4% annualized.
  • Continued improvement in net interest margin by 4 basis points to 3.31%, benefiting from improvement in average earning asset mix, stabilized deposit costs and higher loan yields.
  • Credit metrics reflected 0.26% in annualized net charge-offs, slightly improved from the linked quarter, and a $12.0 million provision for credit losses resulting in a 1.38% allowance for credit losses as a percent of loans.
  • Repurchased 323,395 shares of Company common stock during the third quarter at a weighted average price of $28.79 per share; regulatory capital remained strong with Common Equity Tier 1 Capital of 12.3% and Total Capital of 14.5%.
  • Tangible book value per common share(1) increased to $21.68 per share at September 30, 2024, up $1.60 per share compared to the second quarter of 2024, while tangible common shareholders' equity to tangible assets(1) increased to 8.28% at September 30, 2024.

"Our third quarter results reflect another good quarter with strong operating performance, highlighted by favorable deposit trends, improvement in our net interest margin, and continued disciplined expense management," remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. "From a balance sheet standpoint, we were very pleased with our team's continued success in growing deposits across the franchise, while keeping the increase in total cost of deposits to just two basis points.  Our loan pipelines continue to be robust, reflecting the strong economies in our footprint; however, elevated payoffs and paydowns resulted in total loans being flat linked quarter. Importantly, our net interest income and net interest margin continued to exhibit growth, and our expenses and credit quality results remained in line with expectations."

Earnings Summary

All adjusted financial results discussed herein are adjusted results from continuing operations.(3)

For the third quarter of 2024, the Company reported net income available to common shareholders of $134.1 million, or $0.72 per diluted common share, compared to $90.2 million, or $0.49 per diluted common share, for the third quarter of 2023 and $135.1 million, or $0.73 per diluted common share, for the second quarter of 2024. Adjusted net income available to common shareholders from continuing operations(1) increased to $135.6 million, or $0.73 per diluted common share, for the third quarter of 2024, compared with $97.6 million, or $0.53 per diluted common share, for the third quarter of 2023 and $127.9 million, or $0.69 per diluted common share, for the second quarter of 2024.

Additionally, the Company reported adjusted PPNR from continuing operations(1) of $189.9 million, or 1.58% of average assets on an annualized basis, for the third quarter of 2024, which is consistent with the second quarter of 2024, and an increase of $44.7 million or 30.7% compared to the same quarter of 2023.  These notable increases in financial performance were driven by net interest margin expansion, fee revenue growth, and continued disciplined expense management.  

Net Interest Revenue

Net interest revenue increased to $361.5 million for the third quarter of 2024, compared to $329.0 million for the third quarter of 2023 and $356.3 million for the second quarter of 2024. The net interest margin (fully taxable equivalent) improved to 3.31% for the third quarter of 2024, compared with 2.98% for the third quarter of 2023 and 3.27% for the second quarter of 2024.

Net interest revenue increased $5.1 million, or 1.4%, compared to the second quarter of 2024 as the Company continues to benefit from improved average earning asset mix, upward repricing in the loan portfolio and slowed pressure on deposit costs.  Purchase accounting accretion revenue was $3.0 million for both the third quarter of 2024 and the second quarter of 2024, respectively. Average earning assets declined slightly to $43.5 billion, as growth in average loans of $334.3 million was offset by lower excess cash.

Yield on net loans, loans held for sale and leases, excluding accretion, was 6.61% for the third quarter of 2024, up 5 basis points from 6.56% for the second quarter of 2024. Investment securities yielded 3.04% in the third quarter of 2024, down 15 basis points from 3.19% in the second quarter of 2024 due to both increased fair values of the portfolio as well as maturing higher yielding securities in the quarter. The yield on total interest earning assets increased to 5.92% for the third quarter of 2024, up 2 basis points from 5.90% for the second quarter of 2024.

The average cost of total deposits was relatively stable at 2.55% for the third quarter of 2024, compared to 2.53% for the second quarter of 2024.  While there was some mix shift between deposit product types, interest bearing demand and money market as well as savings costs were flat linked quarter and time deposit costs declined slightly.  Total interest-bearing liabilities cost was 3.47% for the third quarter of 2024 compared to 3.45% for the second quarter of 2024.

Balance Sheet Activity

Loans and leases, net of unearned income, were flat at $33.3 billion compared to the second quarter of 2024. A decline in non-real estate C&I loans was offset by growth in owner occupied C&I, income producing CRE and residential mortgage loans. 

Total deposits were $38.8 billion as of September 30, 2024, an increase of $985.7 million from the prior quarter. The third quarter's increase included a decline of $568.0 million in public funds to $3.7 billion, and a $174.0 million increase in brokered deposits to $626.0 million at September 30, 2024.  Core customer deposits, which excludes brokered deposits and public funds, reflected organic growth of approximately $1.4 billion compared to June 30, 2024.  However, approximately $435 million of this increase in non-interest bearing deposits was temporary in nature at quarter end driven by timing of overnight customer sweep activity. 

The September 30, 2024 loan to deposit ratio was 85.7% and securities to total assets was 15.9%, reflecting continued strong liquidity. Noninterest bearing deposits increased to 23.8% of total deposits at the end of the third quarter of 2024 from 22.7% at June 30, 2024.  Excluding the aforementioned approximately $435 million in overnight customer sweep activity, noninterest bearing deposits to total deposits were flat compared to the prior quarter.  Stabilization in this mix has positively impacted both the net interest margin and cost of deposits trends. 

Total investment securities declined $0.1 billion during the third quarter of 2024 to $7.8 billion at September 30, 2024. Cash, due from balances and deposits at the Federal Reserve increased $1.4 billion to $4.0 billion at September 30, 2024.  However, from an average balance perspective, cash, due from balances and deposits at the Federal Reserve declined $0.6 billion linked quarter as the Company continues to use 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. In November 2024, the Company anticipates calling $215.2 million in fixed-to-floating subordinated debt at par.  This debt is currently yielding 4.125% and is set to reprice at SOFR+2.73% after the November call date.

Credit Results, Provision for Credit Losses and Allowance for Credit Losses

Net charge-offs for the third quarter of 2024 were $22.2 million, or 0.26% of average net loans and leases on an annualized basis, compared with net charge-offs of $34.2 million, or 0.42% of average net loans and leases on an annualized basis, for the third quarter of 2023 and net charge-offs of $22.6 million, or 0.28% of average net loans and leases on an annualized basis, for the second quarter of 2024.  Net charge-offs for the third quarter of 2024 were primarily in the C&I portfolio and a significant portion of the credits were specifically reserved for in prior quarters.  The provision for credit losses for the third quarter of 2024 was $12.0 million, compared with $17.0 million for the third quarter of 2023 and $22.0 million for the second quarter of 2024. The allowance for credit losses of $460.9 million at September 30, 2024 declined slightly to 1.38% of total loans and leases compared to 1.41% of total loans and leases at June 30, 2024.

Total nonperforming assets as a percent of total assets were 0.57% at September 30, 2024 compared to 0.32% at September 30, 2023 and 0.46% at June 30, 2024. Total nonperforming loans and leases as a percent of loans and leases, net were 0.82% at September 30, 2024, compared to 0.46% at September 30, 2023 and 0.65% at June 30, 2024.  The linked quarter increase in nonperforming loans represents migration of a limited number of credits that were previously identified as criticized.  Other real estate owned and other repossessed assets was $5.4 million at September 30, 2024 compared to the September 30, 2023 balance of $2.9 million and the June 30, 2024 balance of $4.8 million.  Criticized loans represented 2.64% of loans at September 30, 2024 compared to 2.71% at September 30, 2023 and 2.51% at June 30, 2024, while classified loans were 2.09% at September 30, 2024 compared to 2.10% at September 30, 2023 and 2.09% at June 30, 2024.  Criticized and classified loan totals continue to remain below the most recent peak levels at March 31, 2023.

Noninterest Revenue

Noninterest revenue was $85.9 million for the third quarter of 2024 compared with $74.0 million for the third quarter of 2023 and $100.7 million for the second quarter of 2024.  Adjusted noninterest revenue(1) for the third quarter of 2024 was $88.8 million, compared with $80.6 million for the third quarter of 2023 and $85.7 million for the second quarter of 2024. Adjusted noninterest revenue(1) for the third quarter of 2024 excludes $2.9 million in securities losses while adjusted noninterest revenue(1) for the third quarter of 2023 excludes $6.7 million of facility and signage write-downs associated with branch closures and 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 was $24.1 million for the third quarter of 2024, compared with $24.0 million for the second quarter of 2024 as seasonal declines in trust revenue were offset by growth in advisory and brokerage fees.  Credit card, debit card and merchant fee revenue was $12.6 million for the third quarter of 2024, relatively consistent with $12.8 million for the second quarter of 2024.  Deposit service charge revenue was $18.8 million for the third quarter of 2024, which represents an increase compared to $17.7 million for the second quarter of 2024 including an increase in account analysis revenue.

Mortgage production and servicing revenue totaled $8.2 million for the third quarter of 2024, compared with $9.9 million for the second quarter of 2024 due to slower originations. Mortgage origination volume for the third quarter of 2024 was $732.3 million, compared with  $758.4 million for the second quarter of 2024. The net MSR valuation adjustment, net of the related hedge, was a negative $7.0 million for the third quarter of 2024, compared with a negative $3.7 million for the second quarter of 2024.

Other noninterest revenue was $32.1 million for the third quarter of 2024, compared to $40.1 million for the second quarter of 2024.  Other noninterest revenue for the second quarter of 2024 included the $15.0 million gain on sale of businesses. Excluding this gain, other noninterest revenue increased $7.1 million linked quarter including increases in credit related fees, SBA income and other miscellaneous revenue.

Noninterest Expense

Noninterest expense for the third quarter of 2024 was $259.4 million, compared with $274.4 million for the third quarter of 2023 and $256.7 million for the second quarter of 2024. Adjusted noninterest expense(1) for the third quarter of 2024 was $260.4 million, compared with $264.2 million for the third quarter of 2023 and $251.1 million for the second quarter of 2024.  Adjusted noninterest expense for the third quarter of 2024 excludes a benefit of $1.2 million associated with an adjustment to the estimated FDIC deposit insurance special assessment. The adjusted efficiency ratio(1) was 57.7% for the third quarter of 2024, compared to 56.7% for the second quarter of 2024 and 64.4% for the third quarter of 2023.

The $9.2 million, or 3.7%, linked quarter increases in adjusted noninterest expense(1) was driven by increases in salaries and employee benefits expense as well as other noninterest expense.  Salaries and employee benefits expense increased $4.2 million compared to the second quarter of 2024 primarily as a result of the Company's annual merit increases being effective on July 1, 2024.  Other noninterest expense increased $7.6 million compared to the second quarter of 2024.  This increase was driven partially by an increase of $2.9 million in legal expense as second quarter of 2024 included higher recoveries of legal costs.  The remainder of the increase was the result of small increases in various miscellaneous expenses combined with second quarter 2024 results including benefits associated with certain items including operational loss recoveries.

Capital Management

Total shareholders' equity was $5.6 billion at September 30, 2024 compared with $4.4 billion at September 30, 2023 and $5.3 billion at June 30, 2024.  Estimated regulatory capital ratios at September 30, 2024 included Common Equity Tier 1 capital of 12.3%, Tier 1 capital of 12.7%, Total risk-based capital of 14.5%, and Tier 1 leverage capital of 10.1%. During the third quarter of 2024, the Company repurchased 323,395 shares of Company common stock at an average price of $28.79 per share.  The company has 8.8 million shares remaining on its current share repurchase authorization, which expires on December 31, 2024.   Outstanding common shares were 182.3 million as of September 30, 2024.

Summary

Rollins concluded, "Our results for the third quarter as well as year-to-date 2024 reflect steady improvement in our financial performance through disciplined balance sheet growth and strong core deposit retention, expansion in our net interest margin, stable credit quality, and enhanced operating efficiency. As always, it is rewarding to see all of our teammates' hard work and focus on serving our customers and communities continue to produce positive results."

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 third quarter 2024 financial results on October 22, 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 22 of this news release.


(2) See Table 14 for detail on non-routine income and expenses.


(3) Given the sale of Cadence Insurance, Inc. ("Cadence Insurance") in the fourth quarter of 2023, the financial results presented consist of both continuing operations and discontinued operations.  The discontinued operations include the financial results of Cadence Insurance prior to the sale, as well as the associated gain on sale in the fourth quarter of 2023. The discontinued operations are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented.

Forward-Looking Statements

Certain statements made in this news release constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the "bespeaks caution" doctrine. These statements are often, but not exclusively, made through the use of words or phrases like "assume," "believe," "budget," "contemplate," "continue," "could," "foresee," "indicate," "may," "might," "outlook," "prospect," "potential," "roadmap," "should," "target," "will," "would," the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures or results of operations as well as the impact of the Cadence Insurance sale on the Company's financial condition and future net income and earnings per share, and the Company's ability to deploy capital into strategic and growth initiatives. Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.

Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies, including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends or coupons on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating Rate Subordinated Notes due November 20, 2029; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements; the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers. The Company also faces risks from natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from Russia's military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.

The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors," and in the Company's Current Reports on Form 8-K.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.

 

Table 1

Selected Financial Data

(Unaudited)

 

Quarter Ended


Year-to-date

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

Earnings Summary:









Interest revenue

$       647,713

$       642,210

$       637,113

$       615,187

$       595,459


$    1,927,036

$ 1,694,980

Interest expense

286,255

285,892

283,205

280,582

266,499


855,352

678,229

Net interest revenue

361,458

356,318

353,908

334,605

328,960


1,071,684

1,016,751

Provision for credit losses

12,000

22,000

22,000

38,000

17,000


56,000

42,000

Net interest revenue, after provision for credit losses

349,458

334,318

331,908

296,605

311,960


1,015,684

974,751

Noninterest revenue

85,901

100,658

83,786

(311,460)

73,989


270,345

195,116

Noninterest expense

259,438

256,697

263,207

329,367

274,442


779,343

826,555

Income (loss) from continuing operations before income taxes

175,921

178,279

152,487

(344,222)

111,507


506,686

343,312

Income tax expense (benefit)

39,482

40,807

35,509

(80,485)

24,355


115,797

75,891

Income (loss) from continuing operations

136,439

137,472

116,978

(263,737)

87,152


390,889

267,421

Income from discontinued operations, net of taxes

—

—

—

522,801

5,431


—

15,819

Net income

136,439

137,472

116,978

259,064

92,583


390,889

283,240

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372


7,116

7,116

Net income available to common shareholders

$       134,067

$       135,100

$       114,606

$       256,692

$         90,211


$       383,773

$   276,124










Balance Sheet - Period End Balances








Total assets

$  49,204,933

$  47,984,078

$  48,313,863

$  48,934,510

$  48,523,010


$  49,204,933

$  48,523,010

Total earning assets

44,834,897

43,525,688

43,968,692

44,192,887

43,727,058


44,834,897

43,727,058

Available for sale securities

7,841,685

7,921,422

8,306,589

8,075,476

9,643,231


7,841,685

9,643,231

Loans and leases, net of unearned income

33,303,972

33,312,773

32,882,616

32,497,022

32,520,593


33,303,972

32,520,593

Allowance for credit losses (ACL)

460,859

470,022

472,575

468,034

446,859


460,859

446,859

Net book value of acquired loans

5,521,000

5,543,419

6,011,007

6,353,344

6,895,487


5,521,000

6,895,487

Unamortized net discount on acquired loans

17,988

20,874

23,715

26,928

30,761


17,988

30,761

Total deposits

38,844,360

37,858,659

38,120,226

38,497,137

38,344,885


38,844,360

38,344,885

Total deposits and repurchase agreements

38,861,324

37,913,693

38,214,616

38,948,653

39,207,474


38,861,324

39,207,474

Other short-term borrowings

3,500,000

3,500,000

3,500,000

3,500,000

3,500,223


3,500,000

3,500,223

Subordinated and long-term debt

225,823

269,353

430,123

438,460

449,323


225,823

449,323

Total shareholders' equity

5,572,863

5,287,758

5,189,932

5,167,843

4,395,257


5,572,863

4,395,257

Total shareholders' equity, excluding AOCI (1)

6,163,205

6,070,220

5,981,265

5,929,672

5,705,178


6,163,205

5,705,178

Common shareholders' equity

5,405,870

5,120,765

5,022,939

5,000,850

4,228,264


5,405,870

4,228,264

Common shareholders' equity, excluding AOCI (1)

$    5,996,212

$    5,903,227

$    5,814,272

$    5,762,679

$    5,538,185


$    5,996,212

$ 5,538,185










Balance Sheet - Average Balances








Total assets

$  47,803,977

$  48,192,719

$  48,642,540

$  48,444,176

$  48,655,138


$  48,211,586

$  48,791,497

Total earning assets

43,540,045

43,851,822

44,226,077

43,754,664

44,003,639


43,871,434

44,017,508

Available for sale securities

7,915,636

8,033,552

8,269,708

9,300,714

10,004,441


8,072,391

10,666,618

Loans and leases, net of unearned income

33,279,819

32,945,526

32,737,574

32,529,030

32,311,572


32,988,706

31,706,637

Total deposits

37,634,453

38,100,087

38,421,272

38,215,379

38,468,912


38,050,413

38,767,657

Total deposits and repurchase agreements

37,666,828

38,165,908

38,630,620

38,968,397

39,295,967


38,152,672

39,544,419

Other short-term borrowings

3,512,218

3,500,000

3,500,000

3,503,320

3,510,942


3,504,102

3,460,386

Subordinated and long-term debt

265,790

404,231

434,579

443,251

449,568


367,826

455,810

Total shareholders' equity

5,420,826

5,207,254

5,194,048

4,507,343

4,505,162


5,274,579

4,480,723

Common shareholders' equity

$    5,253,833

$    5,040,261

$    5,027,055

$    4,340,350

$    4,338,169


$    5,107,586

$ 4,313,730










Nonperforming Assets:









Nonperforming loans and leases (NPL) (2) (3)

272,954

216,746

241,007

216,141

150,038


272,954

150,038

Other real estate owned and other assets

5,354

4,793

5,280

6,246

2,927


5,354

2,927

Nonperforming assets (NPA)

$       278,308

$       221,539

$       246,287

$       222,387

$       152,965


$       278,308

$   152,965

(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 27.

(2)

At September 30, 2024, $81.6 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


Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

Financial Ratios and Other Data:









Return on average assets from continuing operations (2)

1.14 %

1.15 %

0.97 %

(2.16) %

0.71 %


1.08 %

0.73 %

Return on average assets (2)

1.14

1.15

0.97

2.12

0.75


1.08

0.78

Adjusted return on average assets from continuing operations (1)(2)

1.15

1.09

0.97

0.62

0.82


1.07

0.92

Return on average common shareholders' equity from continuing operations (2)

10.15

10.78

9.17

(24.32)

7.75


10.04

8.07

Return on average common shareholders' equity (2)

10.15

10.78

9.17

23.46

8.25


10.04

8.56

Adjusted return on average common shareholders' equity from continuing operations (1)(2)

10.27

10.21

9.15

6.65

8.93


9.88

10.18

Return on average tangible common equity from continuing operations (1)(2)

14.04

15.18

12.94

(36.79)

11.75


14.06

12.28

Return on average tangible common equity (1)(2)

14.04

15.18

12.94

35.49

12.50


14.06

13.03

Adjusted return on average tangible common equity from continuing operations (1)(2)

14.21

14.37

12.92

10.06

13.53


13.84

15.50

Pre-tax pre-provision net revenue from continuing operation to total average assets (1)(2)

1.56

1.67

1.44

(2.51)

1.05


1.56

1.06

Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (1)(2)

1.58

1.59

1.44

1.13

1.18


1.54

1.30

Net interest margin-fully taxable equivalent

3.31

3.27

3.22

3.04

2.98


3.27

3.10

Net interest rate spread-fully taxable equivalent

2.45

2.45

2.40

2.25

2.21


2.43

2.37

Efficiency ratio fully tax equivalent (1)

57.90

56.09

60.05

NM

67.93


57.99

68.03

Adjusted efficiency ratio fully tax equivalent (1)

57.73

56.73

60.12

66.01

64.35


58.18

62.48

Loan/deposit ratio

85.74 %

87.99 %

86.26 %

84.41 %

84.81 %


85.74 %

84.81 %

Full time equivalent employees

5,327

5,290

5,322

5,333

6,160


5,327

6,160










Credit Quality Ratios:









Net charge-offs to average loans and leases (2)

0.26 %

0.28 %

0.24 %

0.29 %

0.42 %


0.26 %

0.20 %

Provision for credit losses to average loans and leases (2)

0.14

0.27

0.27

0.46

0.21


0.23

0.18

ACL to loans and leases, net

1.38

1.41

1.44

1.44

1.37


1.38

1.37

ACL to NPL

168.84

216.85

196.08

216.54

297.83


168.84

297.83

NPL to loans and leases, net

0.82

0.65

0.73

0.67

0.46


0.82

0.46

NPA to total assets

0.57

0.46

0.51

0.45

0.32


0.57

0.32










Equity Ratios:









Total shareholders' equity to total assets

11.33 %

11.02 %

10.74 %

10.56 %

9.06 %


11.33 %

9.06 %

Total common shareholders' equity to total assets

10.99

10.67

10.40

10.22

8.71


10.99

8.71

Tangible common shareholders' equity to tangible assets (1)

8.28

7.87

7.60

7.44

5.86


8.28

5.86

Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI (1)

9.40

9.40

9.13

8.90

8.41


9.40

8.41










Capital Adequacy (3):









Common Equity Tier 1 capital

12.3 %

11.9 %

11.7 %

11.6 %

10.3 %


12.3 %

10.3 %

Tier 1 capital

12.7

12.3

12.2

12.1

10.8


12.7

10.8

Total capital

14.5

14.2

14.5

14.3

12.9


14.5

12.9

Tier 1 leverage capital

10.1

9.7

9.5

9.3

8.6


10.1

8.6


(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 27.

(2)     Annualized.

(3)     Current quarter regulatory capital ratios are estimated.

NM - Not meaningful

 

Table 3

Selected Financial Information

 

Quarter Ended


Year-to-date


Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

Common Share Data:









Diluted earnings (losses) per share from continuing operations

$         0.72

$         0.73

$         0.62

$       (1.46)

$         0.46


$      2.07

$      1.41

Adjusted earnings per share from continuing operations (1)

0.73

0.69

0.62

0.40

0.53


2.04

1.78

Diluted earnings per share

0.72

0.73

0.62

1.41

0.49


2.07

1.50

Cash dividends per share

0.250

0.250

0.250

0.235

0.235


0.750

0.705

Book value per share

29.65

28.07

27.50

27.35

23.15


29.65

23.15

Tangible book value per share (1)

21.68

20.08

19.48

19.32

15.09


21.68

15.09

Market value per share (last)

31.28

28.28

29.00

29.59

21.22


31.28

21.22

Market value per share (high)

34.13

29.95

30.03

31.45

25.87


34.13

28.18

Market value per share (low)

27.46

26.16

24.99

19.67

19.00


24.99

16.95

Market value per share (average)

30.96

28.14

27.80

24.40

22.56


28.98

22.41

Dividend payout ratio from continuing operations

34.72 %

34.25 %

40.48 %

(16.13) %

51.09 %


36.23 %

50.00 %

Adjusted dividend payout ratio from continuing operations (1)

34.25 %

36.23 %

40.32 %

58.75 %

44.34 %


36.76 %

39.61 %

Total shares outstanding

182,315,142

182,430,427

182,681,325

182,871,775

182,611,075


182,315,142

182,611,075

Average shares outstanding - diluted

185,496,110

185,260,963

185,574,130

182,688,190

184,645,004


185,443,201

184,062,368










Yield/Rate:









(Taxable equivalent basis)









Loans, loans held for sale, and leases

6.64 %

6.59 %

6.50 %

6.48 %

6.39 %


6.58 %

6.22 %

Loans, loans held for sale, and leases excluding net accretion on
acquired loans and leases

6.61

6.56

6.46

6.43

6.31


6.54

6.12

Available for sale securities:









Taxable

3.03

3.18

3.11

2.45

2.07


3.11

1.98

Tax-exempt

3.97

4.12

4.25

3.78

3.23


4.11

3.22

Other investments

5.37

5.45

5.48

5.41

5.36


5.44

5.02

Total interest earning assets and revenue

5.92

5.90

5.80

5.59

5.38


5.87

5.16

Deposits

2.55

2.53

2.45

2.32

2.14


2.51

1.76

Interest bearing demand and money market

3.13

3.13

3.11

3.02

2.79


3.13

2.43

Savings

0.57

0.57

0.57

0.56

0.56


0.57

0.47

Time

4.50

4.53

4.42

4.22

3.98


4.48

3.48

Total interest bearing deposits

3.30

3.28

3.21

3.10

2.88


3.26

2.46

Fed funds purchased, securities sold under agreement to repurchase
and other

5.10

4.47

4.86

4.33

4.27


4.81

3.99

Short-term FHLB borrowings

—

—

—

—

3.54


—

4.91

Short-term BTFP borrowings

4.77

4.77

4.84

5.04

5.15


4.79

5.15

Total interest bearing deposits and short-term borrowings

3.46

3.44

3.39

3.33

3.16


3.43

2.77

Subordinated and long-term borrowings

4.30

4.41

4.35

4.18

4.22


4.36

4.24

Total interest bearing liabilities

3.47

3.45

3.40

3.34

3.17


3.44

2.79

Interest bearing liabilities to interest earning assets

75.40 %

75.97 %

75.73 %

76.08 %

75.74 %


75.70 %

73.88 %

Net interest income tax equivalent adjustment (in thousands)

$          694

$          644

$          636

$          987

$       1,081


$     1,974

$     3,197


(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 27.

 

Table 4

Consolidated Balance Sheets

(Unaudited)

 

As of

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023

ASSETS






Cash and due from banks

$         504,827

$         516,715

$         427,543

$         798,177

$         594,787

Interest bearing deposits with other banks and Federal funds sold

3,483,299

2,093,820

2,609,931

3,434,088

1,400,858

Available for sale securities, at fair value

7,841,685

7,921,422

8,306,589

8,075,476

9,643,231

Loans and leases, net of unearned income

33,303,972

33,312,773

32,882,616

32,497,022

32,520,593

Allowance for credit losses

460,859

470,022

472,575

468,034

446,859

Net loans and leases

32,843,113

32,842,751

32,410,041

32,028,988

32,073,734

Loans held for sale, at fair value

205,941

197,673

169,556

186,301

162,376

Premises and equipment, net

797,556

808,705

822,666

802,133

789,698

Goodwill

1,366,923

1,366,923

1,367,785

1,367,785

1,367,785

Other intangible assets, net

87,094

91,027

96,126

100,191

104,596

Bank-owned life insurance

652,057

648,970

645,167

642,840

639,073

Other assets

1,422,438

1,496,072

1,458,459

1,498,531

1,590,769

Assets of discontinued operations

—

—

—

—

156,103

Total Assets

$    49,204,933

$    47,984,078

$    48,313,863

$    48,934,510

$    48,523,010

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      9,242,693

$      8,586,265

$      8,820,468

$      9,232,068

$      9,657,198

                     Interest bearing

18,125,553

18,514,015

18,945,982

19,276,596

18,334,551

 Savings

2,560,803

2,613,950

2,694,777

2,720,913

2,837,348

 Time deposits

8,915,311

8,144,429

7,658,999

7,267,560

7,515,788

Total deposits

38,844,360

37,858,659

38,120,226

38,497,137

38,344,885

Securities sold under agreement to repurchase

16,964

55,034

94,390

451,516

862,589

Other short-term borrowings

3,500,000

3,500,000

3,500,000

3,500,000

3,500,223

Subordinated and long-term debt

225,823

269,353

430,123

438,460

449,323

Other liabilities

1,044,923

1,013,274

979,192

879,554

876,195

Liabilities of discontinued operations

—

—

—

—

94,538

Total Liabilities

43,632,070

42,696,320

43,123,931

43,766,667

44,127,753

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

455,788

456,076

456,703

457,179

456,528

Capital surplus

2,729,440

2,724,656

2,724,587

2,743,066

2,733,003

Accumulated other comprehensive loss

(590,342)

(782,462)

(791,333)

(761,829)

(1,309,921)

Retained earnings

2,810,984

2,722,495

2,632,982

2,562,434

2,348,654

Total Shareholders' Equity

5,572,863

5,287,758

5,189,932

5,167,843

4,395,257

Total Liabilities & Shareholders' Equity

$    49,204,933

$    47,984,078

$    48,313,863

$    48,934,510

$    48,523,010

 

Table 5

Consolidated Quarterly Average Balance Sheets

(Unaudited)

 


(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023

ASSETS






Cash and due from banks

$         435,569

$         456,938

$         557,009

$         443,504

$         362,479

Interest bearing deposits with other banks and Federal funds sold

2,210,277

2,758,385

3,146,439

1,811,686

1,571,973

Available for sale securities, at fair value

7,915,636

8,033,552

8,269,708

9,300,714

10,004,441

Loans and leases, net of unearned income

33,279,819

32,945,526

32,737,574

32,529,030

32,311,572

Allowance for credit losses

469,919

475,181

473,849

447,879

459,698

Net loans and leases

32,809,900

32,470,345

32,263,725

32,081,151

31,851,874

Loans held for sale, at fair value

134,313

114,359

72,356

113,234

115,653

Premises and equipment, net

807,353

815,920

808,473

795,164

811,095

Goodwill

1,366,923

1,367,358

1,367,785

1,367,916

1,367,785

Other intangible assets, net

89,262

93,743

98,350

102,765

107,032

Bank-owned life insurance

650,307

646,124

643,189

640,439

636,335

Other assets

1,384,437

1,435,995

1,415,506

1,787,603

1,826,471

Total Assets

$    47,803,977

$    48,192,719

$    48,642,540

$    48,444,176

$    48,655,138

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      8,616,534

$      8,757,029

$      9,072,619

$      9,625,912

$      9,924,554

                     Interest bearing

18,043,686

18,770,093

19,303,845

18,292,826

17,970,463

 Savings

2,584,761

2,652,019

2,696,452

2,758,977

2,913,027

 Time deposits

8,389,472

7,920,946

7,348,356

7,537,664

7,660,868

Total deposits

37,634,453

38,100,087

38,421,272

38,215,379

38,468,912

Securities sold under agreement to repurchase

32,375

65,821

209,348

753,018

827,055

Other short-term borrowings

3,512,218

3,500,000

3,500,000

3,503,320

3,510,942

Subordinated and long-term debt

265,790

404,231

434,579

443,251

449,568

Other liabilities

938,315

915,326

883,293

1,021,865

893,499

Total Liabilities

42,383,151

42,985,465

43,448,492

43,936,833

44,149,976

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

455,954

456,618

456,437

456,636

456,557

Capital surplus

2,725,581

2,724,838

2,733,902

2,733,985

2,726,686

Accumulated other comprehensive loss

(703,619)

(838,710)

(777,940)

(1,279,235)

(1,175,077)

Retained earnings

2,775,917

2,697,515

2,614,656

2,428,964

2,330,003

Total Shareholders' Equity

5,420,826

5,207,254

5,194,048

4,507,343

4,505,162

Total Liabilities & Shareholders' Equity

$    47,803,977

$    48,192,719

$    48,642,540

$    48,444,176

$    48,655,138

 

Table 6

Consolidated Statements of Income

(Unaudited)

 

Quarter Ended


Year-to-date

(Dollars in thousands, except per share data)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

INTEREST REVENUE:









Loans and leases

$     555,862

$     539,685

$     528,940

$     531,340

$     520,126


$  1,624,487

$  1,473,472

Available for sale securities:









Taxable

59,732

62,852

63,405

55,801

50,277


185,989

152,320

Tax-exempt

638

638

687

1,927

2,375


1,963

7,279

Loans held for sale

1,630

1,652

1,184

1,418

1,468


4,467

3,033

Short-term investments

29,851

37,383

42,897

24,701

21,213


110,130

58,876

Total interest revenue

647,713

642,210

637,113

615,187

595,459


1,927,036

1,694,980

INTEREST EXPENSE:









Interest bearing demand deposits and money market accounts

142,179

146,279

149,403

139,144

126,296


437,861

333,578

Savings

3,695

3,743

3,801

3,918

4,108


11,238

11,037

Time deposits

94,944

89,173

80,670

80,143

76,867


264,786

166,333

Federal funds purchased and securities sold under agreement to repurchase

561

724

2,523

8,254

9,004


3,808

24,327

Short-term debt

42,003

41,544

42,109

44,451

45,438


125,656

128,490

Subordinated and long-term debt

2,873

4,429

4,699

4,672

4,786


12,003

14,464

Total interest expense

286,255

285,892

283,205

280,582

266,499


855,352

678,229

Net interest revenue

361,458

356,318

353,908

334,605

328,960


1,071,684

1,016,751

Provision for credit losses

12,000

22,000

22,000

38,000

17,000


56,000

42,000

Net interest revenue, after provision for credit losses

349,458

334,318

331,908

296,605

311,960


1,015,684

974,751










NONINTEREST REVENUE:









Mortgage banking

1,133

6,173

6,443

(1,137)

5,684


13,749

20,115

Credit card, debit card and merchant fees

12,649

12,770

12,162

12,902

12,413


37,581

36,882

Deposit service charges

18,814

17,652

18,338

11,161

16,867


54,803

50,557

Security (losses) gains, net

(2,947)

(4)

(9)

(384,524)

64


(2,960)

(51,127)

Wealth management

24,110

24,006

22,833

22,576

21,079


70,949

64,351

Other noninterest income

32,142

40,061

24,019

27,562

17,882


96,223

74,338

Total noninterest revenue

85,901

100,658

83,786

(311,460)

73,989


270,345

195,116










NONINTEREST EXPENSE:









Salaries and employee benefits

152,237

148,038

156,650

148,081

161,627


456,926

486,641

Occupancy and equipment

28,894

29,367

28,640

28,009

27,069


86,901

82,962

Data processing and software

29,164

29,467

30,028

32,922

29,127


88,658

87,521

Merger expense

—

—

—

—

—


—

5,192

Amortization of intangibles

3,933

3,999

4,066

4,405

4,436


11,998

14,983

Deposit insurance assessments

7,481

15,741

8,414

45,733

10,425


31,637

26,491

Pension settlement expense

—

—

—

11,226

600


—

600

Other noninterest expense

37,729

30,085

35,409

58,991

41,158


103,223

122,165

Total noninterest expense

259,438

256,697

263,207

329,367

274,442


779,343

826,555

Income (loss) from continuing operations before taxes

175,921

178,279

152,487

(344,222)

111,507


506,686

343,312

Income tax expense (benefit)

39,482

40,807

35,509

(80,485)

24,355


115,797

75,891

Income (loss) from continuing operations

$     136,439

$     137,472

$     116,978

$   (263,737)

$       87,152


390,889

267,421

Income from discontinued operations

—

—

—

706,129

7,242


—

21,462

Income tax expense from discontinued operations

—

—

—

183,328

1,811


—

5,643

Income from discontinued operations, net of taxes

—

—

—

522,801

5,431


—

15,819

Net income

136,439

137,472

116,978

259,064

92,583


390,889

283,240

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372


7,116

7,116

Net income available to common shareholders

$     134,067

$     135,100

$     114,606

$     256,692

$       90,211


$     383,773

$     276,124

Diluted earnings (losses) per common share from continuing operations

$           0.72

$           0.73

$           0.62

$         (1.46)

$           0.46


$           2.07

$           1.41

Diluted earnings per common share

$           0.72

$           0.73

$           0.62

$           1.41

$           0.49


$           2.07

$           1.50

 

Table 7

Selected Loan Portfolio Data

(Unaudited)

 

Quarter Ended

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023

LOAN AND LEASE PORTFOLIO:






Commercial and industrial






Non-real estate

$     8,692,639

$     9,136,929

$     9,121,457

$     8,935,598

$     9,199,024

Owner occupied

4,557,723

4,475,647

4,442,357

4,349,060

4,361,530

Total commercial and industrial

13,250,362

13,612,576

13,563,814

13,284,658

13,560,554

Commercial real estate






Construction, acquisition and development

3,931,821

3,892,527

3,864,351

3,910,962

3,819,307

Income producing

5,978,695

5,851,340

5,783,943

5,736,871

5,720,606

Total commercial real estate

9,910,516

9,743,867

9,648,294

9,647,833

9,539,913

Consumer






Residential mortgages

9,933,222

9,740,713

9,447,675

9,329,692

9,186,179

Other consumer

209,872

215,617

222,833

234,839

233,947

Total consumer

10,143,094

9,956,330

9,670,508

9,564,531

9,420,126

Total loans and leases, net of unearned income

$   33,303,972

$   33,312,773

$   32,882,616

$   32,497,022

$   32,520,593







NONPERFORMING ASSETS






Nonperforming Loans and Leases






Commercial and industrial






Non-real estate

$        148,267

$        121,171

$        149,683

$        131,559

$          67,962

Owner occupied

15,127

13,700

5,962

7,097

6,486

Total commercial and industrial

163,394

134,871

155,645

138,656

74,448

Commercial real estate






Construction, acquisition and development

2,034

4,923

3,787

1,859

4,608

Income producing

25,112

15,002

19,428

17,485

12,251

Total commercial real estate

27,146

19,925

23,215

19,344

16,859

Consumer






Residential mortgages

82,191

61,677

61,886

57,881

58,488

Other consumer

223

273

261

260

243

Total consumer

82,414

61,950

62,147

58,141

58,731

Total nonperforming loans and leases (1)

$        272,954

$        216,746

$        241,007

$        216,141

$        150,038







Other real estate owned and repossessed assets

5,354

4,793

5,280

6,246

2,927

Total nonperforming assets

$        278,308

$        221,539

$        246,287

$        222,387

$        152,965







Government guaranteed portion of nonaccrual loans and leases covered by the SBA, FHA, VA or USDA

$          81,632

$          71,418

$          59,897

$          49,551

$          42,046







Loans and leases 90+ days past due, still accruing

$          11,757

$            6,150

$          30,048

$          22,466

$            9,152


(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)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023

ALLOWANCE FOR CREDIT LOSSES:






Balance, beginning of period

$      470,022

$      472,575

$      468,034

$      446,859

$      466,013

Charge-offs:






Commercial and industrial

(21,620)

(23,340)

(16,997)

(21,385)

(34,959)

Commercial real estate

(222)

(649)

(2,244)

(2,290)

(931)

Consumer

(2,681)

(2,294)

(2,395)

(3,229)

(1,608)

Total loans charged-off

(24,523)

(26,283)

(21,636)

(26,904)

(37,498)

Recoveries:






Commercial and industrial

1,647

2,943

1,312

2,117

2,240

Commercial real estate

65

101

150

95

201

Consumer

648

686

715

867

903

Total recoveries

2,360

3,730

2,177

3,079

3,344

Net charge-offs

(22,163)

(22,553)

(19,459)

(23,825)

(34,154)

Provision for credit losses related to loans and leases

13,000

20,000

24,000

45,000

15,000

Balance, end of period

$      460,859

$      470,022

$      472,575

$      468,034

$      446,859







Average loans and leases, net of unearned income, for period

$ 33,279,819

$ 32,945,526

$ 32,737,574

$ 32,529,030

$ 32,311,572

Ratio: Net charge-offs to average loans and leases (2)

0.26 %

0.28 %

0.24 %

0.29 %

0.42 %







RESERVE FOR UNFUNDED COMMITMENTS (1)






Balance, beginning of period

$          8,551

$          6,551

$          8,551

$        15,551

$        13,551

 Provision (reversal) for credit losses for unfunded commitments

(1,000)

2,000

(2,000)

(7,000)

2,000

Balance, end of period

$          7,551

$          8,551

$          6,551

$          8,551

$        15,551


(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)



September 30, 2024

(In thousands)

Pass

Special Mention

Substandard

Doubtful

Impaired

Purchased Credit
Deteriorated (Loss)

Total

LOAN AND LEASE PORTFOLIO:








Commercial and industrial








Non-real estate

$    8,190,551

$   171,866

$     258,496

$  13,325

$      54,795

$         3,606

$  8,692,639

Owner occupied

4,506,806

1,530

39,101

—

9,187

1,099

4,557,723

Total commercial and industrial

12,697,357

173,396

297,597

13,325

63,982

4,705

13,250,362

Commercial real estate








Construction, acquisition and development

3,918,273

—

13,548

—

—

—

3,931,821

Income producing

5,767,252

8,611

180,414

—

22,418

—

5,978,695

Total commercial real estate

9,685,525

8,611

193,962

—

22,418

—

9,910,516

Consumer








Residential mortgages

9,831,527

795

91,863

—

7,579

1,458

9,933,222

Other consumer

209,460

—

412

—

—

—

209,872

Total consumer

10,040,987

795

92,275

—

7,579

1,458

10,143,094

Total loans and leases, net of unearned income

$  32,423,869

$   182,802

$     583,834

$  13,325

$      93,979

$         6,163

$  33,303,972

 

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

 

Table 10

Geographical Loan Information

(Unaudited)

 

September 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

$  373,496

$  174,110

$  503,478

$  451,079

$  347,397

$  493,209

$    67,512

$  366,114

$    3,443,772

$  2,472,472

$  8,692,639

Owner occupied

342,037

248,109

302,228

323,643

296,937

625,425

101,509

162,176

1,749,994

405,665

4,557,723

Total commercial and industrial

715,533

422,219

805,706

774,722

644,334

1,118,634

169,021

528,290

5,193,766

2,878,137

13,250,362

Commercial real estate












Construction, acquisition and
development

214,627

72,186

467,852

553,316

42,963

183,412

40,413

166,889

1,604,724

585,439

3,931,821

Income producing

425,613

248,133

408,683

574,925

232,605

428,569

204,351

323,786

2,312,282

819,748

5,978,695

Total commercial real estate

640,240

320,319

876,535

1,128,241

275,568

611,981

244,764

490,675

3,917,006

1,405,187

9,910,516

Consumer












Residential mortgages

1,284,111

406,108

691,794

436,840

473,271

1,193,982

208,750

759,480

4,241,278

237,608

9,933,222

Other consumer

27,230

17,386

5,223

7,425

10,771

83,311

1,542

15,909

35,564

5,511

209,872

Total consumer

1,311,341

423,494

697,017

444,265

484,042

1,277,293

210,292

775,389

4,276,842

243,119

10,143,094

Total

$2,667,114

$  1,166,032

$  2,379,258

$  2,347,228

$  1,403,944

$  3,007,908

$  624,077

$  1,794,354

$  13,387,614

$  4,526,443

$33,303,972













Loan growth (decline), excluding
loans acquired during the
quarter ($)

$    30,840

$    17,674

$    73,538

$    21,012

$    20,825

$  (35,294)

$         724

$    72,424

$  (99,263)

$  (111,281)

$    (8,801)

Loan growth (decline), excluding
loans acquired during the
quarter (%) (annualized)

4.65 %

6.12 %

12.69 %

3.59 %

5.99 %

(4.61) %

0.46 %

16.73 %

(2.93) %

(9.55) %

(0.11) %



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 loans and leases, net of
unearned income

$   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

 

Table 11

Noninterest Revenue and Expense

(Unaudited)

 

Quarter Ended


Year-to-date

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

NONINTEREST REVENUE:









Mortgage banking excl. MSR and MSR hedge market value adjustment

$        8,171

$        9,875

$        9,116

$        6,966

$        7,946


$      27,161

$      26,797

MSR and MSR hedge market value adjustment

(7,038)

(3,702)

(2,673)

(8,103)

(2,262)


(13,412)

(6,682)

Credit card, debit card and merchant fees

12,649

12,770

12,162

12,902

12,413


37,581

36,882

Deposit service charges

18,814

17,652

18,338

11,161

16,867


54,803

50,557

Security (losses) gains, net

(2,947)

(4)

(9)

(384,524)

64


(2,960)

(51,127)

Trust and asset management income

12,055

12,645

11,322

11,301

10,574


36,023

31,211

Investment advisory fees

8,641

8,180

8,336

8,084

8,428


25,157

23,320

Brokerage and annuity fees

3,414

3,181

3,175

3,191

2,077


9,769

9,820

Bank-owned life insurance

4,353

4,370

3,946

4,728

4,108


12,670

11,566

Other miscellaneous income

27,789

35,691

20,073

22,834

13,774


83,553

62,772

Total noninterest revenue

$      85,901

$    100,658

$      83,786

$  (311,460)

$      73,989


$    270,345

$    195,116










NONINTEREST EXPENSE:









Salaries and employee benefits

$    152,237

$    148,038

$    156,650

$    148,081

$    161,627


$    456,926

$    486,641

Occupancy and equipment

28,894

29,367

28,640

28,009

27,069


86,901

82,962

Deposit insurance assessments

7,481

15,741

8,414

45,733

10,425


31,637

26,491

Pension settlement expense

—

—

—

11,226

600


—

600

Advertising and public relations

5,481

6,537

4,224

12,632

5,671


16,241

15,530

Foreclosed property expense

486

515

268

915

270


1,269

1,573

Telecommunications

1,513

1,441

1,545

1,356

1,520


4,498

4,419

Travel and entertainment

2,612

2,549

2,236

3,146

2,442


7,397

7,857

Data processing and software

29,164

29,467

30,028

32,922

29,127


88,658

87,521

Professional, consulting and outsourcing

4,115

3,534

3,935

5,194

5,017


11,584

14,698

Amortization of intangibles

3,933

3,999

4,066

4,405

4,436


11,998

14,983

Legal

3,664

758

3,682

13,724

3,316


8,104

6,369

Merger expense

—

—

—

—

—


—

5,192

Postage and shipping

1,677

1,622

2,205

1,907

2,292


5,504

6,536

Other miscellaneous expense

18,181

13,129

17,314

20,117

20,630


48,626

65,183

Total noninterest expense

$    259,438

$    256,697

$    263,207

$    329,367

$    274,442


$    779,343

$    826,555










 

Table 12

Average Balance and Yields

(Unaudited)



Quarter Ended


September 30, 2024


June 30, 2024


September 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

$ 33,279,819

$   553,394

6.62 %


$  32,945,526

$   537,179

6.56 %


$ 32,311,572

$   513,989

6.31 %

Accretion income on acquired loans


2,992

0.04



2,981

0.03



6,587

0.08

Loans held for sale

134,313

1,630

4.83


114,359

1,652

5.81


115,653

1,468

5.04

Investment securities












Taxable

7,834,596

59,732

3.03


7,954,865

62,852

3.18


9,635,084

50,277

2.07

Tax-exempt

81,040

808

3.97


78,687

807

4.12


369,357

3,006

3.23

Total investment securities

7,915,636

60,540

3.04


8,033,552

63,659

3.19


10,004,441

53,283

2.11

Other investments

2,210,277

29,851

5.37


2,758,385

37,383

5.45


1,571,973

21,213

5.35

Total interest-earning assets

43,540,045

648,407

5.92 %


43,851,822

642,854

5.90 %


44,003,639

596,540

5.38 %

Other assets

4,733,851




4,816,078




5,111,197



Allowance for credit losses

469,919




475,181




459,698



Total assets

$ 47,803,977




$  48,192,719




$ 48,655,138















LIABILITIES AND SHAREHOLDERS' EQUITY












Interest-bearing liabilities:












Interest bearing demand and money market

$ 18,043,686

$   142,179

3.13 %


$  18,770,093

$   146,279

3.13 %


$ 17,970,463

126,296

2.79 %

Savings deposits

2,584,761

3,695

0.57


2,652,019

3,743

0.57


2,913,027

4,108

0.56

Time deposits

8,389,472

94,944

4.50


7,920,946

89,173

4.53


7,660,868

76,867

3.98

Total interest-bearing deposits

29,017,919

240,818

3.30


29,343,058

239,195

3.28


28,544,358

207,271

2.88

Fed funds purchased, securities sold under agreement to
repurchase and other

44,582

572

5.10


65,821

732

4.47


837,773

9,007

4.27

Short-term FHLB borrowings

11

—

—


—

—

—


224

2

3.54

  Short-term BTFP borrowings

3,500,000

41,992

4.77


3,500,000

41,536

4.77


3,500,000

45,433

5.15

Subordinated and long-term borrowings

265,790

2,873

4.30


404,231

4,429

4.41


449,568

4,786

4.22

Total interest-bearing liabilities

32,828,302

286,255

3.47 %


33,313,110

285,892

3.45 %


33,331,923

266,499

3.17 %

Noninterest-bearing liabilities:












Demand deposits

8,616,534




8,757,029




9,924,554



Other liabilities

938,315




915,326




893,499



Total liabilities

42,383,151




42,985,465




44,149,976



Shareholders' equity

5,420,826




5,207,254




4,505,162



Total liabilities and shareholders' equity

$ 47,803,977




$  48,192,719




$ 48,655,138



Net interest income/net interest spread


362,152

2.45 %



356,962

2.45 %



330,041

2.21 %

Net yield on earning assets/net interest margin



3.31 %




3.27 %




2.98 %

Taxable equivalent adjustment:












Loans and investment securities


(694)




(644)




(1,081)


Net interest revenue


$   361,458




$   356,318




$   328,960


 

Table 12

Average Balance and Yields Continued


Year-To-Date


September 30, 2024


September 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

$   32,988,706

$   1,616,450

6.54 %


$   31,706,637

$   1,452,912

6.13 %

Accretion income on acquired loans


9,489

0.04



21,822

0.09

Loans held for sale

107,109

4,467

5.57


76,770

3,033

5.28

Investment securities








Taxable

7,991,692

185,989

3.11


10,283,587

152,320

1.98

Tax-exempt

80,699

2,485

4.11


383,031

9,214

3.22

Total investment securities

8,072,391

188,474

3.12


10,666,618

161,534

2.02

Other investments

2,703,228

110,130

5.44


1,567,483

58,876

5.02

Total interest-earning assets

43,871,434

1,929,010

5.87 %


44,017,508

1,698,177

5.16 %

Other assets

4,813,124




5,227,122



Allowance for credit losses

472,972




453,133



Total assets

$   48,211,586




$   48,791,497











LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing liabilities:








Interest bearing demand and money market

$   18,703,458

437,861

3.13 %


$   18,322,003

$      333,578

2.43 %

Savings deposits

2,644,193

11,238

0.57


3,119,830

11,037

0.47

Time deposits

7,888,094

264,786

4.48


6,383,257

166,333

3.48

Total interest-bearing deposits

29,235,745

713,885

3.26


27,825,090

510,948

2.46

Fed funds purchased, securities sold under agreement to repurchase and other

106,357

3,832

4.81


814,943

24,334

3.99

Short-term FHLB borrowings

4

—

—


1,858,102

68,235

4.91

Short-term BTFP borrowings

3,500,000

125,632

4.79


1,564,103

60,248

5.15

Subordinated and long-term borrowings

367,826

12,003

4.36


455,810

14,464

4.24

Total interest-bearing liabilities

33,209,932

855,352

3.44 %


32,518,048

678,229

2.79 %

Noninterest-bearing liabilities:








Demand deposits

8,814,668




10,942,567



Other liabilities

912,407




850,159



Total liabilities

42,937,007




44,310,774



Shareholders' equity

5,274,579




4,480,723



Total liabilities and shareholders' equity

$   48,211,586




$   48,791,497



Net interest income/net interest spread


1,073,658

2.43 %



1,019,948

2.37 %

Net yield on earning assets/net interest margin



3.27 %




3.10 %

Taxable equivalent adjustment:








Loans and investment securities


(1,974)




(3,197)


Net interest revenue


$   1,071,684




$   1,016,751


 

Table 13

Selected Additional Data

(Unaudited)



Quarter Ended

(Dollars in thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023

MORTGAGE SERVICING RIGHTS ("MSR"):






Fair value, beginning of period

$      113,595

$    111,685

$     106,824

$     116,266

$    111,417

Originations of servicing assets

3,361

3,687

2,736

2,636

4,065

Changes in fair value:






Due to changes in valuation inputs or assumptions(1)

(8,232)

927

4,781

(9,043)

2,888

Other changes in fair value(2)

(3,833)

(2,704)

(2,656)

(3,035)

(2,104)

Fair value, end of period

$      104,891

$    113,595

$     111,685

$     106,824

$    116,266







MORTGAGE BANKING REVENUE:






Origination

$          2,145

$        3,976

$         3,165

$         1,040

$        2,031

Servicing

6,026

5,899

5,951

5,926

5,915

Total mortgage banking revenue excluding MSR

8,171

9,875

9,116

6,966

7,946

Due to changes in valuation inputs or assumptions(1)

(8,232)

927

4,781

(9,043)

2,888

Other changes in fair value(2)

(3,833)

(2,704)

(2,656)

(3,035)

(2,104)

Market value adjustment on MSR Hedge

5,027

(1,925)

(4,798)

3,975

(3,046)

Total mortgage banking revenue

$          1,133

$        6,173

$         6,443

$       (1,137)

$        5,684







Mortgage loans serviced

$   7,927,028

$ 7,824,895

$  7,764,936

$  7,702,592

$ 7,643,885

MSR/mortgage loans serviced

1.32 %

1.45 %

1.44 %

1.39 %

1.52 %



(1)

Primarily reflects changes in prepayment speeds and discount rate assumptions which are updated based on market interest rates.

(2)

Primarily reflects changes due to realized cash flows.

 

Quarter Ended

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023

AVAILABLE FOR SALE SECURITIES, at fair value






U.S. Treasury securities

$                  —

$                  —

$         239,402

$         465,018

$             1,996

Obligations of U.S. government agencies

300,730

305,200

318,233

332,011

1,004,374

Mortgage-backed securities issued or guaranteed by U.S. agencies ("MBS"):






Residential pass-through:






Guaranteed by GNMA

71,001

69,788

72,034

75,662

73,649

Issued by FNMA and FHLMC

4,163,760

4,125,416

4,254,227

4,387,101

5,541,895

Other residential mortgage-back securities

1,135,004

1,233,868

1,210,617

727,434

146,063

Commercial mortgage-backed securities

1,664,288

1,673,823

1,694,967

1,742,837

2,271,680

Total MBS

7,034,053

7,102,895

7,231,845

6,933,034

8,033,287

Obligations of states and political subdivisions

137,996

133,155

134,643

137,624

392,252

Other domestic debt securities

51,599

64,288

67,421

67,197

71,741

Foreign debt securities

317,307

315,884

315,045

140,592

139,581

Total available for sale securities

$      7,841,685

$      7,921,422

$      8,306,589

$      8,075,476

$      9,643,231

 

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)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

Adjusted Income from Continuing Operations Available to Common
Shareholders









Income (loss) from continuing operations

$    136,439

$      137,472

$      116,978

$    (263,737)

$        87,152


$      390,889

$      267,421

Plus: Merger expense

—

—

—

—

—


—

5,192

Incremental merger related expense

—

—

—

7,500

—


—

10,631

Gain on extinguishment of debt

—

(1,098)

(576)

(652)

—


(1,674)

(1,140)

Restructuring and other nonroutine expenses

(920)

6,675

251

41,522

9,596


6,006

16,027

Pension settlement expense

—

—

—

11,226

600


—

600

Less:   Security (losses) gains, net

(2,947)

(4)

(9)

(384,524)

64


(2,960)

(51,127)

Gain on sale of businesses

—

14,980

—

—

—


14,980

—

Nonroutine (losses) gains, net

—

—

—

—

(6,653)


—

(6,653)

Tax adjustment

476

(2,209)

(74)

105,275

3,944


(1,807)

20,936

Adjusted income from continuing operations

137,990

130,282

116,736

75,108

99,992


385,008

335,575

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372


7,116

7,116

Adjusted income from continuing operations available to common
shareholders

$    135,618

$      127,910

$      114,364

$        72,736

$        97,620


$      377,892

$      328,459



Quarter Ended


Year-to-date

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

Pre-Tax Pre-Provision Net Revenue from Continuing Operations









Income (loss) from continuing operations

$    136,439

$   137,472

$     116,978

$  (263,737)

$      87,152


$     390,889

$     267,421

Plus:   Provision for credit losses

12,000

22,000

22,000

38,000

17,000


56,000

42,000

Income tax expense (benefit)

39,482

40,807

35,509

(80,485)

24,355


115,797

75,891

Pre-tax pre-provision net revenue from continuing operations

$    187,921

$   200,279

$     174,487

$  (306,222)

$    128,507


$     562,686

$     385,312



Quarter Ended


Year-to-date

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

Adjusted Pre-Tax Pre-Provision Net Revenue from Continuing
Operations









Income (loss) from continuing operations

$    136,439

$      137,472

$      116,978

$    (263,737)

$        87,152


$      390,889

$      267,421

Plus:   Provision for credit losses

12,000

22,000

22,000

38,000

17,000


56,000

42,000

Merger expense

—

—

—

—

—


—

5,192

Incremental merger related expense

—

—

—

7,500

—


—

10,631

Gain on extinguishment of debt

—

(1,098)

(576)

(652)

—


(1,674)

(1,140)

Restructuring and other nonroutine expenses

(920)

6,675

251

41,522

9,596


6,006

16,027

Pension settlement expense

—

—

—

11,226

600


—

600

Income tax expense (benefit)

39,482

40,807

35,509

(80,485)

24,355


115,797

75,891

Less:   Security (losses) gains, net

(2,947)

(4)

(9)

(384,524)

64


(2,960)

(51,127)

Gain on sale of businesses

—

14,980

—

—

—


14,980

—

Nonroutine (losses) gains, net

—

—

—

—

(6,653)


—

(6,653)

Adjusted pre-tax pre-provision net revenue from continuing
operations

$    189,948

$      190,880

$      174,171

$      137,898

$      145,292


$      554,998

$      474,402



Quarter Ended


Year-to-date

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

Total Adjusted Revenue









Net interest revenue

$    361,458

$      356,318

$      353,908

$      334,605

$      328,960


$   1,071,684

$   1,016,751

Total Adjusted Noninterest Revenue









Total noninterest revenue

$      85,901

$      100,658

$        83,786

$    (311,460)

$        73,989


$      270,345

$      195,116

Less:   Security (losses) gains, net

(2,947)

(4)

(9)

(384,524)

64


(2,960)

(51,127)

Gain on sale of businesses

—

14,980

—

—

—


14,980

—

Nonroutine gains (losses), net

—

—

—

—

(6,653)


—

(6,653)

Total adjusted noninterest revenue

$      88,848

$        85,682

$        83,795

$        73,064

$        80,578


$      258,325

$      252,896

Total adjusted revenue

$    450,306

$      442,000

$      437,703

$      407,669

$      409,538


$   1,330,009

$   1,269,647



Quarter Ended


Year-to-date

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

Total Adjusted Noninterest Expense









Total noninterest expense

$    259,438

$      256,697

$      263,207

$      329,367

$      274,442


$      779,343

$      826,555

Less:   Merger expense

—

—

—

—

—


—

5,192

Incremental merger related expense

—

—

—

7,500

—


—

10,631

Gain on extinguishment of debt

—

(1,098)

(576)

(652)

—


(1,674)

(1,140)

Restructuring and other nonroutine expenses

(920)

6,675

251

41,522

9,596


6,006

16,027

Pension settlement expense

—

—

—

11,226

600


—

600

Total adjusted noninterest expense

$    260,358

$      251,120

$      263,532

$      269,771

$      264,246


$      775,011

$      795,245



Quarter Ended


Year-to-date

(In thousands)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

Total Tangible Assets, Excluding AOCI









Total assets

$  49,204,933

$  47,984,078

$  48,313,863

$  48,934,510

$  48,523,010


$ 49,204,933

$ 48,523,010

Less:  Goodwill

1,366,923

1,366,923

1,367,785

1,367,785

1,367,785


1,366,923

1,367,785

Other intangible assets, net

87,094

91,027

96,126

100,191

104,596


87,094

104,596

Total tangible assets

47,750,916

46,526,128

46,849,952

47,466,534

47,050,629


47,750,916

47,050,629

Less: AOCI

(590,342)

(782,462)

(791,333)

(761,829)

(1,309,921)


(590,342)

(1,309,921)

Total tangible assets, excluding AOCI

$  48,341,258

$  47,308,590

$  47,641,285

$  48,228,363

$  48,360,550


$ 48,341,258

$ 48,360,550



Quarter Ended


Year-to-date

(Dollars in thousands, except per share data)

Sep 2024

Jun 2024

Mar 2024

Dec 2023

Sep 2023


Sep 2024

Sep 2023

PERIOD END BALANCES:









Total Shareholders' Equity, Excluding AOCI









Total shareholders' equity

$5,572,863

$5,287,758

$5,189,932

$5,167,843

$4,395,257


$5,572,863

$4,395,257

Less: AOCI

(590,342)

(782,462)

(791,333)

(761,829)

(1,309,921)


(590,342)

(1,309,921)

Total shareholders' equity, excluding AOCI

$6,163,205

$6,070,220

$5,981,265

$5,929,672

$5,705,178


$6,163,205

$5,705,178










Common Shareholders' Equity, Excluding AOCI









Total shareholders' equity

$5,572,863

$5,287,758

$5,189,932

$5,167,843

$4,395,257


$5,572,863

$4,395,257

Less: preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Common shareholders' equity

5,405,870

5,120,765

5,022,939

5,000,850

4,228,264


5,405,870

4,228,264

Less: AOCI

(590,342)

(782,462)

(791,333)

(761,829)

(1,309,921)


(590,342)

(1,309,921)

Common shareholders' equity, excluding AOCI

$5,996,212

$5,903,227

$5,814,272

$5,762,679

$5,538,185


$5,996,212

$5,538,185










Total Tangible Common Shareholders' Equity, Excluding AOCI









Total shareholders' equity

$5,572,863

$5,287,758

$5,189,932

$5,167,843

$4,395,257


$5,572,863

$4,395,257

Less:  Goodwill

1,366,923

1,366,923

1,367,785

1,367,785

1,367,785


1,366,923

1,367,785

Other intangible assets, net

87,094

91,027

96,126

100,191

104,596


87,094

104,596

Preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Total tangible common shareholders' equity

3,951,853

3,662,815

3,559,028

3,532,874

2,755,883


3,951,853

2,755,883

Less: AOCI

(590,342)

(782,462)

(791,333)

(761,829)

(1,309,921)


(590,342)

(1,309,921)

Total tangible common shareholders' equity, excluding AOCI

$4,542,195

$4,445,277

$4,350,361

$4,294,703

$4,065,804


$4,542,195

$4,065,804










AVERAGE BALANCES:









Total Tangible Common Shareholders' Equity









Total shareholders' equity

$5,420,826

$5,207,254

$5,194,048

$4,507,343

$4,505,162


$5,274,579

$4,480,723

Less:   Goodwill

1,366,923

1,367,358

1,367,785

1,367,916

1,367,785


1,367,354

1,367,785

Other intangible assets, net

89,262

93,743

98,350

102,765

107,032


93,769

112,510

Preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Total tangible common shareholders' equity

$3,797,648

$3,579,160

$3,560,920

$2,869,669

$2,863,352


$3,646,463

$2,833,435










Total average assets

$47,803,977

$48,192,719

$48,642,540

$48,444,176

$48,655,138


$48,211,586

$48,791,497

Total shares of common stock outstanding

182,315,142

182,430,427

182,681,325

182,871,775

182,611,075


182,315,142

182,611,075

Average shares outstanding-diluted

185,496,110

185,260,963

185,574,130

182,688,190

184,645,004


185,443,201

184,062,368










Tangible common shareholders' equity to tangible assets (1)

8.28 %

7.87 %

7.60 %

7.44 %

5.86 %


8.28 %

5.86 %

Tangible common shareholders' equity, excluding AOCI, to
tangible assets, excluding AOCI (2)

9.40

9.40

9.13

8.90

8.41


9.40

8.41

Return on average tangible common equity from continuing
operations (3)

14.04

15.18

12.94

(36.79)

11.75


14.06

12.28

Return on average tangible common equity (4)

14.04

15.18

12.94

35.49

12.50


14.06

13.03

Adjusted return on average tangible common equity from
continuing operations (5)

14.21

14.37

12.92

10.06

13.53


13.84

15.50

Adjusted return on average assets from continuing
operations (6)

1.15

1.09

0.97

0.62

0.82


1.07

0.92

Adjusted return on average common shareholders' equity
from continuing operations (7)

10.27

10.21

9.15

6.65

8.93


9.88

10.18

Pre-tax pre-provision net revenue from continuing
operations to total average assets (8)

1.56

1.67

1.44

(2.51)

1.05


1.56

1.06

Adjusted pre-tax pre-provision net revenue from continuing
operations to total average assets (9)

1.58

1.59

1.44

1.13

1.18


1.54

1.30

Tangible book value per common share (10)

$      21.68

$      20.08

$      19.48

$      19.32

$      15.09


$      21.68

$       15.09

Tangible book value per common share, excluding AOCI (11)

24.91

24.37

23.81

23.48

22.26


24.91

22.26

Adjusted earnings from continuing operations per common
share (12)

$        0.73

$        0.69

$        0.62

$        0.40

$        0.53


$        2.04

$        1.78

Adjusted dividend payout ratio from continuing operations (13)

34.25 %

36.23 %

40.32 %

58.75 %

44.34 %


36.76 %

39.61 %

 

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 intangible assets, net, divided by the difference of total assets less goodwill and other intangible assets, net.

(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 intangible assets, net and accumulated other comprehensive loss, divided by the difference of total assets less goodwill, accumulated other comprehensive loss, and other intangible assets, net.

(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