HOUSTON and TUPELO, Miss., April 21, 2025 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended March 31, 2025.
Highlights for the first quarter of 2025 included:
- Reported quarterly net income available to common shareholders of $130.9 million, or $0.70 per diluted common share, and adjusted net income available to common shareholders(1) of $131.4 million, or $0.71 per diluted common share.
- Improved return on average assets to 1.15%, up 18 basis points from the first quarter of 2024 and up 3 basis points from the fourth quarter of 2024.
- Achieved quarterly adjusted pre-tax pre-provision net revenue (PPNR)(1) of $189.9 million, an increase of $5.9 million compared to the fourth quarter of 2024 and an increase of $15.7 million, or 9.0%, from the first quarter of 2024.
- Generated net organic loan growth of $309.9 million for the first quarter of 2025, or 3.7% on an annualized basis; core customer deposit balances, which exclude brokered and public fund deposits, remained stable and were flat linked quarter.
- Improved net interest margin to 3.46%, up 8 basis points compared to the fourth quarter of 2024.
- Adjusted noninterest expense(1) declined $8.1 million, or 3.0%, linked quarter driving improvement in the adjusted efficiency ratio(1) to 57.6% for the quarter.
- Maintained strong regulatory capital with Common Equity Tier 1 Capital of 12.4% and Total Capital of 14.1%.
- Received all required regulatory and shareholder approvals to complete proposed merger with FCB Financial Corp., the bank holding company for First Chatham Bank in Savannah, Georgia. The transaction is expected to close May 1, 2025, subject to customary closing conditions.
"Our first quarter results reflect a number of key accomplishments related to our financial performance and strategic growth efforts," remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. "We reported strong earnings driven by improved operating leverage and further expanded our net interest margin. Despite the recent economic volatility, we also captured nice organic loan growth while maintaining stable credit quality. Importantly, we received all necessary regulatory approvals related to our pending merger with First Chatham Bank in a very short timeframe, allowing us to quickly close and begin expanding our Company's presence in Savannah and other surrounding markets in Georgia."
Earnings Summary
For the first quarter of 2025, the Company reported net income available to common shareholders of $130.9 million, or $0.70 per diluted common share, compared to $114.6 million, or $0.62 per diluted common share, for the first quarter of 2024 and $130.3 million, or $0.70 per diluted common share, for the fourth quarter of 2024. Adjusted net income available to common shareholders(1) was $131.4 million, or $0.71 per diluted common share, for the first quarter of 2025, compared with $114.4 million, or $0.62 per diluted common share, for the first quarter of 2024 and $130.0 million, or $0.70 per diluted common share, for the fourth quarter of 2024.
Return on average assets was 1.15% for the first quarter of 2025, improved from both 0.97% for the first quarter of 2024 and 1.12% for the fourth quarter of 2024. Additionally, the Company reported adjusted PPNR(1) of $189.9 million, or 1.63% of average assets on an annualized basis, for the first quarter of 2025, which represents an increase of $5.9 million or 3.2% compared to the fourth quarter of 2024, and an increase of $15.7 million or 9.0% compared to the same quarter of 2024.
Net Interest Revenue
Net interest revenue was $363.2 million for the first quarter of 2025, compared to $353.9 million for the first quarter of 2024 and $364.5 million for the fourth quarter of 2024. The net interest margin (fully taxable equivalent) improved to 3.46% for the first quarter of 2025, compared with 3.22% for the first quarter of 2024 and 3.38% for the fourth quarter of 2024.
Net interest revenue declined $1.4 million compared to the fourth quarter of 2024 due to fewer number of days in the first quarter of 2025 and a slightly smaller average balance sheet. Purchase accounting accretion revenue was $2.6 million for the first quarter of 2025 compared with $2.4 million for the fourth quarter of 2024. Average earning assets declined slightly to $42.6 billion, as growth in average loans of $482.5 million was offset by lower linked quarter average cash and securities balances as the Company paid off the Bank Term Funding Program balances and called a subordinated-debt issuance in the fourth quarter of 2024.
Yield on net loans, loans held for sale and leases, excluding accretion, was 6.30% for the first quarter of 2025, down 10 basis points from 6.40% for the fourth quarter of 2024, reflecting the full quarter's impact of the December rate cut as well as new origination loan mix. Investment securities yielded 3.00% in the first quarter of 2025, down slightly from 3.04% for the fourth quarter of 2024. The yield on total interest earning assets was 5.71% for the first quarter of 2025 compared with 5.76% for the fourth quarter of 2024.
The average cost of total deposits of 2.35% for the first quarter of 2025 declined by 9 basis points from 2.44% for the fourth quarter of 2024. The decline in the cost of deposits was driven by the full quarter's impact of the December rate cut on interest bearing deposits and repricing time deposits, combined with a stable funding mix. Total cost of interest-bearing liabilities declined 20 basis points to 2.97% for the first quarter of 2025 compared to 3.17% for the fourth quarter of 2024, benefiting from declining deposit costs as well as the payoff of the Bank Term Funding Program and the subordinated debt call in the fourth quarter of 2024.
Balance Sheet Activity
Loans and leases, net of unearned income, increased to $34.1 billion at March 31, 2025 compared to $33.7 billion at December 31, 2024. Net loan growth of $309.9 million, or 3.7% annualized, for the first quarter of 2025 was driven primarily by growth in our mortgage, community banking, and private banking segments, while corporate banking was relatively flat quarter over quarter.
Total deposits were $40.3 billion as of March 31, 2025, declining $0.2 billion from $40.5 billion at the end of the fourth quarter of 2024. This decline was driven primarily by a decline in brokered deposits, partially offset by a nominal seasonal increase in public fund deposits. The March 31, 2025 loan to deposit ratio was 84.4%. Noninterest bearing deposits remained stable at 21.2% of total deposits at the end of the first quarter of 2025 compared to December 31, 2024. Borrowed funds increased $0.8 billion during the first quarter of 2025 compared to December 31, 2024, supporting the purchase of additional investment securities. The borrowed funds increase was in FHLB borrowings with maturities generally ranging between six months and two years.
Total investment securities increased $0.6 billion from December 31, 2024 to $7.9 billion at March 31, 2025, representing 16.6% of total assets. Cash, due from balances and deposits at the Federal Reserve of $1.6 billion at March 31, 2025 was relatively flat compared to $1.7 billion at December 31, 2024.
Credit Results, Provision for Credit Losses and Allowance for Credit Losses
Credit metrics for the first quarter of 2025 reflected continued overall stability in credit quality. Net charge-offs for the first quarter of 2025 were $23.0 million, or 0.27% of average net loans and leases on an annualized basis, compared with net charge-offs of $19.5 million, or 0.24% of average net loans and leases on an annualized basis, for the first quarter of 2024 and net charge-offs of $14.1 million, or 0.17% of average net loans and leases on an annualized basis, for the fourth quarter of 2024. The linked quarter increase was driven primarily by one C&I credit that was previously identified and reserved for in a prior quarter. The provision for credit losses for the first quarter of 2025 was $20.0 million, compared with $22.0 million for the first quarter of 2024 and $15.0 million for the fourth quarter of 2024. The allowance for credit losses of $457.8 million at March 31, 2025 was 1.34% of total loans and leases compared to 1.37% of total loans and leases at December 31, 2024 and 1.44% of total loans and leases at March 31, 2024.
Total nonperforming assets as a percent of total assets were 0.51% at March 31, 2025 compared to 0.51% at March 31, 2024 and 0.58% at December 31, 2024. Total nonperforming loans and leases as a percent of loans and leases, net were 0.69% at March 31, 2025 compared to 0.73% at March 31, 2024 and 0.78% at December 31, 2024. Other real estate owned and other repossessed assets was $8.5 million at March 31, 2025 compared to the March 31, 2024 balance of $5.3 million and the December 31, 2024 balance of $5.8 million. Criticized loans represented 2.39% of loans at March 31, 2025 compared to 2.64% at March 31, 2024 and 2.35% at December 31, 2024, while classified loans were 1.95% at March 31, 2025 compared to 2.19% at March 31, 2024 and 2.02% at December 31, 2024.
Noninterest Revenue
Noninterest revenue was $85.4 million for the first quarter of 2025 compared with $83.8 million for the first quarter of 2024 and $86.2 million for the fourth quarter of 2024. Adjusted noninterest revenue(1) had no significant adjustments for the quarters presented.
Noninterest revenue declined slightly compared to the fourth quarter of 2024, with improvements in mortgage banking revenue offset by a decline in other noninterest revenue as well as service charge and card revenues that were impacted by day count. Wealth management revenue was $23.3 million for the first quarter of 2025, down slightly from $24.0 million for the fourth quarter of 2024 due to market conditions. Credit card, debit card and merchant fee revenue was $12.0 million for the first quarter of 2025, compared with $12.7 million for the fourth quarter of 2024 and reflective of typical softer first quarter card activity. Deposit service charge revenue was $17.7 million for the first quarter of 2025, compared to $18.7 million for the fourth quarter of 2024, partially impacted by fewer number of days.
Mortgage banking revenue totaled $6.6 million for the first quarter of 2025, compared to $6.4 million for the first quarter of 2024 and $3.6 million for the fourth quarter of 2024. The $3.1 million improvement during the linked quarter was primarily due to seasonally higher mortgage production and servicing revenue.
Other noninterest revenue was $25.8 million for the first quarter of 2025, down from $27.3 million for the fourth quarter of 2024, with the $1.5 million decline impacted by lower credit related fees and other miscellaneous revenues.
Noninterest Expense
Noninterest expense for the first quarter of 2025 was $259.3 million, compared with $263.2 million for the first quarter of 2024 and $266.2 million for the fourth quarter of 2024. Adjusted noninterest expense(1) for the first quarter of 2025 was $258.6 million, compared with $263.5 million for the first quarter of 2024 and $266.7 million for the fourth quarter of 2024. Adjusted noninterest expense for the first quarter of 2025 excludes an insignificant amount of merger expense and incremental merger related expense. The adjusted efficiency ratio(1) was 57.6% for the first quarter of 2025, compared to 60.1% for the first quarter of 2024 and 59.1% for the fourth quarter of 2024.
The $8.1 million, or 3.0%, linked quarter decline in adjusted noninterest expense(1) was driven primarily by declines in data processing and software expense as well as other noninterest expense, partially offset by small increase in various other expense categories. Data processing and software expense declined $6.1 million in the first quarter of 2025 compared to the fourth quarter of 2024, primarily as a result of the fourth quarter expenses associated with technology investments including enhancements to the Company's treasury management platform. Other noninterest expense decreased $3.0 million in the first quarter of 2025 compared to the fourth quarter of 2024 driven by declines in various items including advertising/public relations and legal expense.
Capital Management
Total shareholders' equity was $5.7 billion at March 31, 2025, up from $5.2 billion at March 31, 2024 and $5.6 billion at December 31, 2024. Estimated regulatory capital ratios at March 31, 2025 included Common Equity Tier 1 capital of 12.4%, Tier 1 capital of 12.9%, Total risk-based capital of 14.1%, and Tier 1 leverage capital of 10.6%. During the first quarter of 2025, the Company did not repurchase any shares of Company common stock. Outstanding common shares were 184.0 million as of March 31, 2025.
Summary
Rollins concluded, "Our team remains excited about the opportunity to build on our accomplishments and momentum. Our relentless focus on customer service, quality growth and enhanced operating efficiency has resulted in continued improvement in our profitability and financial performance. We look forward to building on this success throughout 2025 and beyond as we focus on our company's vision of helping people, companies and communities prosper."
Key Transactions
On January 22, 2025, the Company announced the signing of a definitive merger agreement with FCB Financial Corp., the bank holding company for First Chatham Bank, (collectively referred to as "First Chatham"), pursuant to which First Chatham will be merged with and into the Company. First Chatham is a Savannah, Georgia -based community bank operating eight branches across the Greater Savannah Area. As of December 31, 2024, First Chatham reported total assets of $589 million, total loans of $326 million, and total deposits of $507 million. Under the terms of the definitive merger agreement, the Company will issue approximately 2,300,000 shares of common stock plus $23.1 million in cash for all outstanding shares of First Chatham. The Company has received all required regulatory and shareholder approvals related to the transaction. Subject to the satisfaction of all closing conditions, the merger is expected to close May 1, 2025, although the Company can provide no assurance that the merger will close on this date or at all.
Conference Call and Webcast
The Company will conduct a conference call to discuss its first quarter 2025 financial results on April 22, 2025, 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 $50 billion regional financial services company committed to helping people, companies and communities prosper. With more than 350 locations spanning the South and Texas, Cadence offers comprehensive banking, investment, trust and mortgage products and services to meet the needs of individuals, businesses and corporations. Accolades include being recognized as one of the nation's best employers by Forbes and U.S. News & World Report and a 2025 America's Best Banks by Forbes. Cadence maintains dual headquarters in Houston, Texas and Tupelo, Mississippi, and has dutifully served customers for nearly 150 years. Learn more at www.cadencebank.com. 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. |
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, trade, 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 Company's pending acquisition of FCB Financial Corp. and First Chatham Bank 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, trade, 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; 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; uncertainties surrounding the impact of the U.S.'s proposed tariffs, including potential negative impact to our loan portfolio and profitability, potential for increases in problem loans, potential re-evaluation of credit marks and interest rates, and lower equity valuation and potential slowdown in capital markets; uncertain duration of trade conflicts; magnitude of the impact that the proposed tariffs may have on our customers' businesses; 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 on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share; 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 (including those related to stock repurchases); 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 U.S.'s proposed tariffs and international trade conflicts, 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 its primary federal regulator, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, 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 | |||||
Quarter Ended | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
Earnings Summary: | |||||
Interest revenue | $ 599,257 | $ 620,321 | $ 647,713 | $ 642,210 | $ 637,113 |
Interest expense | 236,105 | 255,790 | 286,255 | 285,892 | 283,205 |
Net interest revenue | 363,152 | 364,531 | 361,458 | 356,318 | 353,908 |
Provision for credit losses | 20,000 | 15,000 | 12,000 | 22,000 | 22,000 |
Net interest revenue, after provision for credit losses | 343,152 | 349,531 | 349,458 | 334,318 | 331,908 |
Noninterest revenue | 85,387 | 86,165 | 85,901 | 100,658 | 83,786 |
Noninterest expense | 259,349 | 266,186 | 259,438 | 256,697 | 263,207 |
Income before income taxes | 169,190 | 169,510 | 175,921 | 178,279 | 152,487 |
Income tax expense | 35,968 | 36,795 | 39,482 | 40,807 | 35,509 |
Net income | 133,222 | 132,715 | 136,439 | 137,472 | 116,978 |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 |
Net income available to common shareholders | $ 130,850 | $ 130,343 | $ 134,067 | $ 135,100 | $ 114,606 |
Balance Sheet - Period End Balances | |||||
Total assets | $ 47,743,294 | $ 47,019,190 | $ 49,204,933 | $ 47,984,078 | $ 48,313,863 |
Total earning assets | 43,172,997 | 42,386,627 | 44,834,897 | 43,525,688 | 43,968,692 |
Available for sale securities | 7,912,159 | 7,293,988 | 7,841,685 | 7,921,422 | 8,306,589 |
Loans and leases, net of unearned income | 34,051,610 | 33,741,755 | 33,303,972 | 33,312,773 | 32,882,616 |
Allowance for credit losses (ACL) | 457,791 | 460,793 | 460,859 | 470,022 | 472,575 |
Net book value of acquired loans | 4,365,789 | 4,783,206 | 5,521,000 | 5,543,419 | 6,011,007 |
Unamortized net discount on acquired loans | 13,060 | 15,611 | 17,988 | 20,874 | 23,715 |
Total deposits | 40,335,728 | 40,496,201 | 38,844,360 | 37,858,659 | 38,120,226 |
Total deposits and repurchase agreements | 40,355,399 | 40,519,817 | 38,861,324 | 37,913,693 | 38,214,616 |
Other short-term borrowings | 235,000 | - | 3,500,000 | 3,500,000 | 3,500,000 |
Subordinated and long-term borrowings | 560,690 | 10,706 | 225,823 | 269,353 | 430,123 |
Total shareholders' equity | 5,718,541 | 5,569,683 | 5,572,863 | 5,287,758 | 5,189,932 |
Total shareholders' equity, excluding AOCI (1) | 6,339,744 | 6,264,178 | 6,163,205 | 6,070,220 | 5,981,265 |
Common shareholders' equity | 5,551,548 | 5,402,690 | 5,405,870 | 5,120,765 | 5,022,939 |
Common shareholders' equity, excluding AOCI (1) | $ 6,172,751 | $ 6,097,185 | $ 5,996,212 | $ 5,903,227 | $ 5,814,272 |
Balance Sheet - Average Balances | |||||
Total assets | $ 47,135,431 | $ 47,263,538 | $ 47,803,977 | $ 48,192,719 | $ 48,642,540 |
Total earning assets | 42,637,002 | 42,920,125 | 43,540,045 | 43,851,822 | 44,226,077 |
Available for sale securities | 7,302,172 | 7,636,683 | 7,915,636 | 8,033,552 | 8,269,708 |
Loans and leases, net of unearned income | 33,944,416 | 33,461,931 | 33,279,819 | 32,945,526 | 32,737,574 |
Total deposits | 40,353,292 | 39,743,224 | 37,634,453 | 38,100,087 | 38,421,272 |
Total deposits and repurchase agreements | 40,376,248 | 39,761,277 | 37,666,828 | 38,165,908 | 38,630,620 |
Other short-term borrowings | 108,389 | 905,815 | 3,512,218 | 3,500,000 | 3,500,000 |
Subordinated and long-term borrowings | 129,030 | 123,442 | 265,790 | 404,231 | 434,579 |
Total shareholders' equity | 5,651,592 | 5,589,361 | 5,420,826 | 5,207,254 | 5,194,048 |
Common shareholders' equity | $ 5,484,599 | $ 5,422,368 | $ 5,253,833 | $ 5,040,261 | $ 5,027,055 |
Nonperforming Assets: | |||||
Nonperforming loans and leases (NPL) (2) (3) | 235,952 | 264,692 | 272,954 | 216,746 | 241,007 |
Other real estate owned and other assets | 8,452 | 5,754 | 5,354 | 4,793 | 5,280 |
Nonperforming assets (NPA) | $ 244,404 | $ 270,446 | $ 278,308 | $ 221,539 | $ 246,287 |
(1) | Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 - 23. |
(2) | At March 31, 2025, $84.3 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 | |||||
Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 | |
Financial Ratios and Other Data: | |||||
Return on average assets (2) | 1.15 % | 1.12 % | 1.14 % | 1.15 % | 0.97 % |
Adjusted return on average assets (1)(2) | 1.15 | 1.11 | 1.15 | 1.09 | 0.97 |
Return on average common shareholders' equity (2) | 9.68 | 9.56 | 10.15 | 10.78 | 9.17 |
Adjusted return on average common shareholders' equity (1)(2) | 9.72 | 9.53 | 10.27 | 10.21 | 9.15 |
Return on average tangible common equity (1)(2) | 13.15 | 13.06 | 14.04 | 15.18 | 12.94 |
Adjusted return on average tangible common equity (1)(2) | 13.20 | 13.02 | 14.21 | 14.37 | 12.92 |
Pre-tax pre-provision net revenue to total average assets (1)(2) | 1.63 | 1.55 | 1.56 | 1.67 | 1.44 |
Adjusted pre-tax pre-provision net revenue to total average assets (1)(2) | 1.63 | 1.55 | 1.58 | 1.59 | 1.44 |
Net interest margin-fully taxable equivalent | 3.46 | 3.38 | 3.31 | 3.27 | 3.22 |
Net interest rate spread-fully taxable equivalent | 2.74 | 2.59 | 2.45 | 2.45 | 2.40 |
Efficiency ratio fully tax equivalent (1) | 57.74 | 58.98 | 57.90 | 56.09 | 60.05 |
Adjusted efficiency ratio fully tax equivalent (1) | 57.58 | 59.09 | 57.73 | 56.73 | 60.12 |
Loan/deposit ratio | 84.42 % | 83.32 % | 85.74 % | 87.99 % | 86.26 % |
Full time equivalent employees | 5,356 | 5,335 | 5,327 | 5,290 | 5,322 |
Credit Quality Ratios: | |||||
Net charge-offs to average loans and leases (2) | 0.27 % | 0.17 % | 0.26 % | 0.28 % | 0.24 % |
Provision for credit losses to average loans and leases (2) | 0.24 | 0.18 | 0.14 | 0.27 | 0.27 |
ACL to loans and leases, net | 1.34 | 1.37 | 1.38 | 1.41 | 1.44 |
ACL to NPL | 194.02 | 174.09 | 168.84 | 216.85 | 196.08 |
NPL to loans and leases, net | 0.69 | 0.78 | 0.82 | 0.65 | 0.73 |
NPA to total assets | 0.51 | 0.58 | 0.57 | 0.46 | 0.51 |
Equity Ratios: | |||||
Total shareholders' equity to total assets | 11.98 % | 11.85 % | 11.33 % | 11.02 % | 10.74 % |
Total common shareholders' equity to total assets | 11.63 | 11.49 | 10.99 | 10.67 | 10.40 |
Tangible common shareholders' equity to tangible assets (1) | 8.87 | 8.67 | 8.28 | 7.87 | 7.60 |
Tangible common shareholders' equity, excluding AOCI, to tangible | 10.07 | 10.04 | 9.40 | 9.40 | 9.13 |
Capital Adequacy (3): | |||||
Common Equity Tier 1 capital | 12.4 % | 12.4 % | 12.3 % | 11.9 % | 11.7 % |
Tier 1 capital | 12.9 | 12.8 | 12.7 | 12.3 | 12.2 |
Total capital | 14.1 | 14.0 | 14.5 | 14.2 | 14.5 |
Tier 1 leverage capital | 10.6 | 10.4 | 10.1 | 9.7 | 9.5 |
(1) | Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 - 23. |
(2) | Annualized. |
(3) | Current quarter regulatory capital ratios are estimated. |
Table 3 Selected Financial Information | |||||
Quarter Ended | |||||
Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 | |
Common Share Data: | |||||
Diluted earnings per share | $ 0.70 | $ 0.70 | $ 0.72 | $ 0.73 | $ 0.62 |
Adjusted earnings per share (1) | 0.71 | 0.70 | 0.73 | 0.69 | 0.62 |
Cash dividends per share | 0.275 | 0.250 | 0.250 | 0.250 | 0.250 |
Book value per share | 30.16 | 29.44 | 29.65 | 28.07 | 27.50 |
Tangible book value per share (1) | 22.30 | 21.54 | 21.68 | 20.08 | 19.48 |
Market value per share (last) | 30.36 | 34.45 | 31.85 | 28.28 | 29.00 |
Market value per share (high) | 36.53 | 40.20 | 34.13 | 29.95 | 30.03 |
Market value per share (low) | 28.90 | 30.21 | 27.46 | 26.16 | 24.99 |
Market value per share (average) | 33.13 | 35.17 | 30.96 | 28.14 | 27.80 |
Dividend payout ratio | 39.29 % | 35.71 % | 34.72 % | 34.25 % | 40.48 % |
Adjusted dividend payout ratio (1) | 38.73 % | 35.71 % | 34.25 % | 36.23 % | 40.32 % |
Total shares outstanding | 184,046,420 | 183,527,575 | 182,315,142 | 182,430,427 | 182,681,325 |
Average shares outstanding - diluted | 186,121,979 | 186,038,243 | 185,496,110 | 185,260,963 | 185,574,130 |
Yield/Rate: | |||||
(Taxable equivalent basis) | |||||
Loans, loans held for sale, and leases | 6.33 % | 6.42 % | 6.64 % | 6.59 % | 6.50 % |
Loans, loans held for sale, and leases excluding net accretion | 6.30 | 6.40 | 6.61 | 6.56 | 6.46 |
Available for sale securities: | |||||
Taxable | 2.99 | 3.03 | 3.03 | 3.18 | 3.11 |
Tax-exempt | 4.04 | 3.93 | 3.97 | 4.12 | 4.25 |
Other investments | 4.42 | 4.77 | 5.37 | 5.45 | 5.48 |
Total interest earning assets and revenue | 5.71 | 5.76 | 5.92 | 5.90 | 5.80 |
Deposits | 2.35 | 2.44 | 2.55 | 2.53 | 2.45 |
Interest bearing demand and money market | 2.69 | 2.87 | 3.13 | 3.13 | 3.11 |
Savings | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 |
Time | 4.10 | 4.28 | 4.50 | 4.53 | 4.42 |
Total interest bearing deposits | 2.96 | 3.12 | 3.30 | 3.28 | 3.21 |
Fed funds purchased, securities sold under agreement to | 4.45 | 4.58 | 5.10 | 4.47 | 4.86 |
Short-term FHLB borrowings | 4.43 | - | - | - | - |
Short-term BTFP borrowings | - | 4.77 | 4.77 | 4.77 | 4.84 |
Total interest bearing deposits and short-term borrowings | 2.96 | 3.16 | 3.46 | 3.44 | 3.39 |
Subordinated and long-term borrowings | 4.05 | 4.14 | 4.30 | 4.41 | 4.35 |
Total interest bearing liabilities | 2.97 | 3.17 | 3.47 | 3.45 | 3.40 |
Interest bearing liabilities to interest earning assets | 75.70 % | 74.82 % | 75.40 % | 75.97 % | 75.73 % |
Net interest income tax equivalent adjustment (in thousands) | $ 630 | $ 648 | $ 694 | $ 644 | $ 636 |
(1) | Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 - 23. |
Table 4 Consolidated Balance Sheets (Unaudited) | |||||
As of | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
ASSETS | |||||
Cash and due from banks | $ 578,513 | $ 624,884 | $ 504,827 | $ 516,715 | $ 427,543 |
Interest bearing deposits with other banks and Federal funds sold | 988,787 | 1,106,692 | 3,483,299 | 2,093,820 | 2,609,931 |
Available for sale securities, at fair value | 7,912,159 | 7,293,988 | 7,841,685 | 7,921,422 | 8,306,589 |
Loans and leases, net of unearned income | 34,051,610 | 33,741,755 | 33,303,972 | 33,312,773 | 32,882,616 |
Allowance for credit losses | 457,791 | 460,793 | 460,859 | 470,022 | 472,575 |
Net loans and leases | 33,593,819 | 33,280,962 | 32,843,113 | 32,842,751 | 32,410,041 |
Loans held for sale, at fair value | 220,441 | 244,192 | 205,941 | 197,673 | 169,556 |
Premises and equipment, net | 780,963 | 783,456 | 797,556 | 808,705 | 822,666 |
Goodwill | 1,366,923 | 1,366,923 | 1,366,923 | 1,366,923 | 1,367,785 |
Other intangible assets, net | 79,522 | 83,190 | 87,094 | 91,027 | 96,126 |
Bank-owned life insurance | 654,964 | 651,838 | 652,057 | 648,970 | 645,167 |
Other assets | 1,567,203 | 1,583,065 | 1,422,438 | 1,496,072 | 1,458,459 |
Total Assets | $ 47,743,294 | $ 47,019,190 | $ 49,204,933 | $ 47,984,078 | $ 48,313,863 |
LIABILITIES | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 8,558,412 | $ 8,591,805 | $ 9,242,693 | $ 8,586,265 | $ 8,820,468 |
Interest bearing | 19,221,356 | 19,345,114 | 18,125,553 | 18,514,015 | 18,945,982 |
Savings | 2,626,901 | 2,588,406 | 2,560,803 | 2,613,950 | 2,694,777 |
Time deposits | 9,929,059 | 9,970,876 | 8,915,311 | 8,144,429 | 7,658,999 |
Total deposits | 40,335,728 | 40,496,201 | 38,844,360 | 37,858,659 | 38,120,226 |
Securities sold under agreement to repurchase | 19,671 | 23,616 | 16,964 | 55,034 | 94,390 |
Other short-term borrowings | 235,000 | - | 3,500,000 | 3,500,000 | 3,500,000 |
Subordinated and long-term borrowings | 560,690 | 10,706 | 225,823 | 269,353 | 430,123 |
Other liabilities | 873,664 | 918,984 | 1,044,923 | 1,013,274 | 979,192 |
Total Liabilities | 42,024,753 | 41,449,507 | 43,632,070 | 42,696,320 | 43,123,931 |
SHAREHOLDERS' EQUITY | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Common stock | 460,116 | 458,819 | 455,788 | 456,076 | 456,703 |
Capital surplus | 2,736,799 | 2,742,913 | 2,729,440 | 2,724,656 | 2,724,587 |
Accumulated other comprehensive loss | (621,203) | (694,495) | (590,342) | (782,462) | (791,333) |
Retained earnings | 2,975,836 | 2,895,453 | 2,810,984 | 2,722,495 | 2,632,982 |
Total Shareholders' Equity | 5,718,541 | 5,569,683 | 5,572,863 | 5,287,758 | 5,189,932 |
Total Liabilities & Shareholders' Equity | $ 47,743,294 | $ 47,019,190 | $ 49,204,933 | $ 47,984,078 | $ 48,313,863 |
Table 5 Consolidated Quarterly Average Balance Sheets (Unaudited) | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
ASSETS | |||||
Cash and due from banks | $ 560,581 | $ 490,161 | $ 435,569 | $ 456,938 | $ 557,009 |
Interest bearing deposits with other banks and Federal funds sold | 1,275,153 | 1,698,300 | 2,210,277 | 2,758,385 | 3,146,439 |
Available for sale securities, at fair value | 7,302,172 | 7,636,683 | 7,915,636 | 8,033,552 | 8,269,708 |
Loans and leases, net of unearned income | 33,944,416 | 33,461,931 | 33,279,819 | 32,945,526 | 32,737,574 |
Allowance for credit losses | 465,332 | 465,971 | 469,919 | 475,181 | 473,849 |
Net loans and leases | 33,479,084 | 32,995,960 | 32,809,900 | 32,470,345 | 32,263,725 |
Loans held for sale, at fair value | 115,261 | 123,211 | 134,313 | 114,359 | 72,356 |
Premises and equipment, net | 785,194 | 796,394 | 807,353 | 815,920 | 808,473 |
Goodwill | 1,366,923 | 1,366,923 | 1,366,923 | 1,367,358 | 1,367,785 |
Other intangible assets, net | 81,527 | 85,323 | 89,262 | 93,743 | 98,350 |
Bank-owned life insurance | 652,689 | 651,166 | 650,307 | 646,124 | 643,189 |
Other assets | 1,516,847 | 1,419,417 | 1,384,437 | 1,435,995 | 1,415,506 |
Total Assets | $ 47,135,431 | $ 47,263,538 | $ 47,803,977 | $ 48,192,719 | $ 48,642,540 |
LIABILITIES | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 8,339,414 | $ 8,676,765 | $ 8,616,534 | $ 8,757,029 | $ 9,072,619 |
Interest bearing | 19,428,376 | 18,845,689 | 18,043,686 | 18,770,093 | 19,303,845 |
Savings | 2,607,366 | 2,573,961 | 2,584,761 | 2,652,019 | 2,696,452 |
Time deposits | 9,978,136 | 9,646,809 | 8,389,472 | 7,920,946 | 7,348,356 |
Total deposits | 40,353,292 | 39,743,224 | 37,634,453 | 38,100,087 | 38,421,272 |
Securities sold under agreement to repurchase | 22,956 | 18,053 | 32,375 | 65,821 | 209,348 |
Other short-term borrowings | 108,389 | 905,815 | 3,512,218 | 3,500,000 | 3,500,000 |
Subordinated and long-term borrowings | 129,030 | 123,442 | 265,790 | 404,231 | 434,579 |
Other liabilities | 870,172 | 883,643 | 938,315 | 915,326 | 883,293 |
Total Liabilities | 41,483,839 | 41,674,177 | 42,383,151 | 42,985,465 | 43,448,492 |
SHAREHOLDERS' EQUITY | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Common stock | 458,830 | 457,798 | 455,954 | 456,618 | 456,437 |
Capital surplus | 2,744,442 | 2,735,323 | 2,725,581 | 2,724,838 | 2,733,902 |
Accumulated other comprehensive loss | (663,883) | (634,307) | (703,619) | (838,710) | (777,940) |
Retained earnings | 2,945,210 | 2,863,554 | 2,775,917 | 2,697,515 | 2,614,656 |
Total Shareholders' Equity | 5,651,592 | 5,589,361 | 5,420,826 | 5,207,254 | 5,194,048 |
Total Liabilities & Shareholders' Equity | $ 47,135,431 | $ 47,263,538 | $ 47,803,977 | $ 48,192,719 | $ 48,642,540 |
Table 6 Consolidated Statements of Income (Unaudited) | |||||
Quarter Ended | |||||
(Dollars in thousands, except per share data) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
INTEREST REVENUE: | |||||
Loans and leases | $ 530,050 | $ 540,147 | $ 555,862 | $ 539,685 | $ 528,940 |
Available for sale securities: | |||||
Taxable | 53,232 | 57,476 | 59,732 | 62,852 | 63,405 |
Tax-exempt | 629 | 635 | 638 | 638 | 687 |
Loans held for sale | 1,449 | 1,694 | 1,630 | 1,652 | 1,184 |
Short-term investments | 13,897 | 20,369 | 29,851 | 37,383 | 42,897 |
Total interest revenue | 599,257 | 620,321 | 647,713 | 642,210 | 637,113 |
INTEREST EXPENSE: | |||||
Interest bearing demand deposits and money market accounts | 128,831 | 135,965 | 142,179 | 146,279 | 149,403 |
Savings | 3,644 | 3,684 | 3,695 | 3,743 | 3,801 |
Time deposits | 100,900 | 103,785 | 94,944 | 89,173 | 80,670 |
Federal funds purchased and securities sold under agreement to repurchase | 1,124 | 293 | 561 | 724 | 2,523 |
Short-term borrowings | 317 | 10,779 | 42,003 | 41,544 | 42,109 |
Subordinated and long-term borrowings | 1,289 | 1,284 | 2,873 | 4,429 | 4,699 |
Total interest expense | 236,105 | 255,790 | 286,255 | 285,892 | 283,205 |
Net interest revenue | 363,152 | 364,531 | 361,458 | 356,318 | 353,908 |
Provision for credit losses | 20,000 | 15,000 | 12,000 | 22,000 | 22,000 |
Net interest revenue, after provision for credit losses | 343,152 | 349,531 | 349,458 | 334,318 | 331,908 |
NONINTEREST REVENUE: | |||||
Wealth management | 23,279 | 23,973 | 24,110 | 24,006 | 22,833 |
Deposit service charges | 17,736 | 18,694 | 18,814 | 17,652 | 18,338 |
Credit card, debit card and merchant fees | 11,989 | 12,664 | 12,649 | 12,770 | 12,162 |
Mortgage banking | 6,638 | 3,554 | 1,133 | 6,173 | 6,443 |
Security losses | (9) | (3) | (2,947) | (4) | (9) |
Other noninterest income | 25,754 | 27,283 | 32,142 | 40,061 | 24,019 |
Total noninterest revenue | 85,387 | 86,165 | 85,901 | 100,658 | 83,786 |
NONINTEREST EXPENSE: | |||||
Salaries and employee benefits | 152,972 | 152,381 | 152,237 | 148,038 | 156,650 |
Occupancy and equipment | 28,477 | 27,275 | 28,894 | 29,367 | 28,640 |
Data processing and software | 27,132 | 33,226 | 29,164 | 29,467 | 30,028 |
Deposit insurance assessments | 8,643 | 8,284 | 7,481 | 15,741 | 8,414 |
Amortization of intangibles | 3,668 | 3,904 | 3,933 | 3,999 | 4,066 |
Merger expense | 315 | - | - | - | - |
Other noninterest expense | 38,142 | 41,116 | 37,729 | 30,085 | 35,409 |
Total noninterest expense | 259,349 | 266,186 | 259,438 | 256,697 | 263,207 |
Income before income taxes | 169,190 | 169,510 | 175,921 | 178,279 | 152,487 |
Income tax expense | 35,968 | 36,795 | 39,482 | 40,807 | 35,509 |
Net income | 133,222 | 132,715 | 136,439 | 137,472 | 116,978 |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 |
Net income available to common shareholders | $ 130,850 | $ 130,343 | $ 134,067 | $ 135,100 | $ 114,606 |
Diluted earnings per common share | $ 0.70 | $ 0.70 | $ 0.72 | $ 0.73 | $ 0.62 |
Table 7 Selected Loan and Lease Portfolio Data (Unaudited) | |||||
Quarter Ended | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
LOAN AND LEASE PORTFOLIO: | |||||
Commercial and industrial | |||||
Non-real estate | $ 8,688,653 | $ 8,670,529 | $ 8,692,639 | $ 9,136,929 | $ 9,121,457 |
Owner occupied | 4,667,477 | 4,665,015 | 4,557,723 | 4,475,647 | 4,442,357 |
Total commercial and industrial | 13,356,130 | 13,335,544 | 13,250,362 | 13,612,576 | 13,563,814 |
Commercial real estate | |||||
Construction, acquisition and development | 3,723,408 | 3,909,184 | 3,931,821 | 3,892,527 | 3,864,351 |
Income producing | 6,268,456 | 6,015,773 | 5,978,695 | 5,851,340 | 5,783,943 |
Total commercial real estate | 9,991,864 | 9,924,957 | 9,910,516 | 9,743,867 | 9,648,294 |
Consumer | |||||
Residential mortgages | 10,498,320 | 10,267,883 | 9,933,222 | 9,740,713 | 9,447,675 |
Other consumer | 205,296 | 213,371 | 209,872 | 215,617 | 222,833 |
Total consumer | 10,703,616 | 10,481,254 | 10,143,094 | 9,956,330 | 9,670,508 |
Total loans and leases, net of unearned income | $ 34,051,610 | $ 33,741,755 | $ 33,303,972 | $ 33,312,773 | $ 32,882,616 |
NONPERFORMING ASSETS | |||||
Nonperforming Loans and Leases | |||||
Commercial and industrial | |||||
Non-real estate | $ 118,078 | $ 145,115 | $ 148,267 | $ 121,171 | $ 149,683 |
Owner occupied | 18,988 | 16,904 | 15,127 | 13,700 | 5,962 |
Total commercial and industrial | 137,066 | 162,019 | 163,394 | 134,871 | 155,645 |
Commercial real estate | |||||
Construction, acquisition and development | 8,768 | 8,600 | 2,034 | 4,923 | 3,787 |
Income producing | 8,021 | 18,542 | 25,112 | 15,002 | 19,428 |
Total commercial real estate | 16,789 | 27,142 | 27,146 | 19,925 | 23,215 |
Consumer | |||||
Residential mortgages | 81,803 | 75,287 | 82,191 | 61,677 | 61,886 |
Other consumer | 294 | 244 | 223 | 273 | 261 |
Total consumer | 82,097 | 75,531 | 82,414 | 61,950 | 62,147 |
Total nonperforming loans and leases (1) | $ 235,952 | $ 264,692 | $ 272,954 | $ 216,746 | $ 241,007 |
Other real estate owned and repossessed assets | 8,452 | 5,754 | 5,354 | 4,793 | 5,280 |
Total nonperforming assets | $ 244,404 | $ 270,446 | $ 278,308 | $ 221,539 | $ 246,287 |
Government guaranteed portion of nonaccrual loans and | $ 84,339 | $ 89,906 | $ 81,632 | $ 71,418 | $ 59,897 |
Loans and leases 90+ days past due, still accruing | $ 8,832 | $ 13,126 | $ 11,757 | $ 6,150 | $ 30,048 |
(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) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
ALLOWANCE FOR CREDIT LOSSES: | |||||
Balance, beginning of period | $ 460,793 | $ 460,859 | $ 470,022 | $ 472,575 | $ 468,034 |
Charge-offs: | |||||
Commercial and industrial | (21,284) | (15,116) | (21,620) | (23,340) | (16,997) |
Commercial real estate | (1,382) | (167) | (222) | (649) | (2,244) |
Consumer | (3,062) | (2,679) | (2,681) | (2,294) | (2,395) |
Total loans charged-off | (25,728) | (17,962) | (24,523) | (26,283) | (21,636) |
Recoveries: | |||||
Commercial and industrial | 1,822 | 2,613 | 1,647 | 2,943 | 1,312 |
Commercial real estate | 83 | 549 | 65 | 101 | 150 |
Consumer | 821 | 734 | 648 | 686 | 715 |
Total recoveries | 2,726 | 3,896 | 2,360 | 3,730 | 2,177 |
Net charge-offs | (23,002) | (14,066) | (22,163) | (22,553) | (19,459) |
Provision for credit losses related to loans and leases | 20,000 | 14,000 | 13,000 | 20,000 | 24,000 |
Balance, end of period | $ 457,791 | $ 460,793 | $ 460,859 | $ 470,022 | $ 472,575 |
Average loans and leases, net of unearned income, for period | $ 33,944,416 | $ 33,461,931 | $ 33,279,819 | $ 32,945,526 | $ 32,737,574 |
Ratio: Net charge-offs to average loans and leases (2) | 0.27 % | 0.17 % | 0.26 % | 0.28 % | 0.24 % |
RESERVE FOR UNFUNDED COMMITMENTS (1) | |||||
Balance, beginning of period | $ 8,551 | $ 7,551 | $ 8,551 | $ 6,551 | $ 8,551 |
Provision (reversal) for credit losses for unfunded commitments | - | 1,000 | (1,000) | 2,000 | (2,000) |
Balance, end of period | $ 8,551 | $ 8,551 | $ 7,551 | $ 8,551 | $ 6,551 |
(1) | The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets. |
(2) | Annualized. |
Table 9 Loan and Lease Portfolio by Grades (Unaudited) | |||||||
March 31, 2025 | |||||||
(In thousands) | Pass | Special | Substandard | Doubtful | Impaired | Purchased | Total |
LOAN AND LEASE PORTFOLIO: | |||||||
Commercial and industrial | |||||||
Non-real estate | $ 8,234,513 | $ 108,903 | $ 317,012 | $ 8,556 | $ 16,227 | $ 3,442 | $ 8,688,653 |
Owner occupied | 4,617,617 | - | 38,174 | - | 10,592 | 1,094 | 4,667,477 |
Total commercial and industrial | 12,852,130 | 108,903 | 355,186 | 8,556 | 26,819 | 4,536 | 13,356,130 |
Commercial real estate | |||||||
Construction, acquisition and development | 3,710,504 | - | 7,031 | - | 5,873 | - | 3,723,408 |
Income producing | 6,078,353 | 39,412 | 144,159 | - | 6,532 | - | 6,268,456 |
Total commercial real estate | 9,788,857 | 39,412 | 151,190 | - | 12,405 | - | 9,991,864 |
Consumer | |||||||
Residential mortgages | 10,392,396 | - | 99,305 | - | 5,208 | 1,411 | 10,498,320 |
Other consumer | 204,701 | - | 595 | - | - | - | 205,296 |
Total consumer | 10,597,097 | - | 99,900 | - | 5,208 | 1,411 | 10,703,616 |
Total loans and leases, net of unearned income | $ 33,238,084 | $ 148,315 | $ 606,276 | $ 8,556 | $ 44,432 | $ 5,947 | $ 34,051,610 |
December 31, 2024 | |||||||
(In thousands) | Pass | Special | Substandard | Doubtful | Impaired | Purchased | Total |
LOAN AND LEASE PORTFOLIO: | |||||||
Commercial and industrial | |||||||
Non-real estate | $ 8,208,176 | $ 106,996 | $ 311,096 | $ 8,743 | $ 31,996 | $ 3,522 | $ 8,670,529 |
Owner occupied | 4,610,775 | 815 | 41,363 | - | 10,968 | 1,094 | 4,665,015 |
Total commercial and industrial | 12,818,951 | 107,811 | 352,459 | 8,743 | 42,964 | 4,616 | 13,335,544 |
Commercial real estate | |||||||
Construction, acquisition and development | 3,896,856 | - | 12,262 | - | 66 | - | 3,909,184 |
Income producing | 5,850,702 | 5,094 | 144,084 | - | 15,893 | - | 6,015,773 |
Total commercial real estate | 9,747,558 | 5,094 | 156,346 | - | 15,959 | - | 9,924,957 |
Consumer | |||||||
Residential mortgages | 10,167,830 | 891 | 89,597 | - | 8,154 | 1,411 | 10,267,883 |
Other consumer | 212,865 | - | 506 | - | - | - | 213,371 |
Total consumer | 10,380,695 | 891 | 90,103 | - | 8,154 | 1,411 | 10,481,254 |
Total loans and leases, net of unearned income | $ 32,947,204 | $ 113,796 | $ 598,908 | $ 8,743 | $ 67,077 | $ 6,027 | $ 33,741,755 |
Table 10 Geographical Loan and Lease Information (Unaudited) | |||||||||||
March 31, 2025 | |||||||||||
(Dollars in thousands) | Alabama | Arkansas | Florida | Georgia | Louisiana | Mississippi | Missouri | Tennessee | Texas | Other | Total |
LOAN AND LEASE PORTFOLIO: | |||||||||||
Commercial and industrial | |||||||||||
Non-real estate | $ 424,598 | $ 157,460 | $ 576,477 | $ 464,611 | $ 375,154 | $ 534,964 | $ 65,370 | $ 338,916 | $ 3,467,605 | $ 2,283,498 | $ 8,688,653 |
Owner occupied | 338,752 | 244,335 | 306,890 | 429,592 | 294,980 | 590,076 | 99,197 | 159,241 | 1,766,119 | 438,295 | 4,667,477 |
Total commercial and industrial | 763,350 | 401,795 | 883,367 | 894,203 | 670,134 | 1,125,040 | 164,567 | 498,157 | 5,233,724 | 2,721,793 | 13,356,130 |
Commercial real estate | |||||||||||
Construction, acquisition and development | 220,664 | 79,437 | 371,396 | 443,876 | 48,561 | 166,644 | 36,117 | 184,595 | 1,714,761 | 457,357 | 3,723,408 |
Income producing | 434,990 | 258,337 | 544,896 | 783,768 | 226,924 | 423,200 | 215,550 | 315,125 | 2,323,475 | 742,191 | 6,268,456 |
Total commercial real estate | 655,654 | 337,774 | 916,292 | 1,227,644 | 275,485 | 589,844 | 251,667 | 499,720 | 4,038,236 | 1,199,548 | 9,991,864 |
Consumer | |||||||||||
Residential mortgages | 1,309,478 | 430,005 | 719,379 | 455,027 | 484,751 | 1,221,895 | 226,051 | 821,297 | 4,571,649 | 258,788 | 10,498,320 |
Other consumer | 25,579 | 17,844 | 4,776 | 7,982 | 10,486 | 83,368 | 1,246 | 15,557 | 33,872 | 4,586 | 205,296 |
Total consumer | 1,335,057 | 447,849 | 724,155 | 463,009 | 495,237 | 1,305,263 | 227,297 | 836,854 | 4,605,521 | 263,374 | 10,703,616 |
Total loans and leases, net of unearned income | $2,754,061 | $ 1,187,418 | $ 2,523,814 | $ 2,584,856 | $ 1,440,856 | $ 3,020,147 | $ 643,531 | $ 1,834,731 | $ 13,877,481 | $ 4,184,715 | $34,051,610 |
Loan growth (decline), excluding loans acquired | $ 7,495 | $ (4,034) | $ 53,042 | $ 124,182 | $ 17,883 | $ (35,469) | $ 9,399 | $ (36,957) | $ 262,192 | $ (87,878) | $ 309,855 |
Loan growth (decline), excluding loans acquired | 1.11 % | (1.37) % | 8.71 % | 20.47 % | 5.10 % | (4.71) % | 6.01 % | (8.01) % | 7.81 % | (8.34) % | 3.72 % |
December 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 | $ 413,359 | $ 169,534 | $ 532,224 | $ 446,812 | $ 371,543 | $ 536,651 | $ 64,846 | $ 399,346 | $ 3,478,755 | $ 2,257,459 | $ 8,670,529 |
Owner occupied | 337,580 | 253,538 | 308,545 | 400,342 | 298,787 | 624,950 | 107,443 | 159,058 | 1,708,113 | 466,659 | 4,665,015 |
Total commercial and industrial | 750,939 | 423,072 | 840,769 | 847,154 | 670,330 | 1,161,601 | 172,289 | 558,404 | 5,186,868 | 2,724,118 | 13,335,544 |
Commercial real estate | |||||||||||
Construction, acquisition and development | 230,810 | 65,358 | 438,173 | 543,249 | 36,194 | 169,336 | 45,690 | 180,566 | 1,656,715 | 543,093 | 3,909,184 |
Income producing | 437,146 | 259,767 | 477,493 | 613,337 | 226,849 | 424,078 | 204,119 | 319,560 | 2,298,344 | 755,080 | 6,015,773 |
Total commercial real estate | 667,956 | 325,125 | 915,666 | 1,156,586 | 263,043 | 593,414 | 249,809 | 500,126 | 3,955,059 | 1,298,173 | 9,924,957 |
Consumer | |||||||||||
Residential mortgages | 1,300,485 | 425,602 | 709,335 | 449,117 | 478,947 | 1,214,542 | 210,712 | 796,490 | 4,436,803 | 245,850 | 10,267,883 |
Other consumer | 27,186 | 17,653 | 5,002 | 7,817 | 10,653 | 86,059 | 1,322 | 16,668 | 36,559 | 4,452 | 213,371 |
Total consumer | 1,327,671 | 443,255 | 714,337 | 456,934 | 489,600 | 1,300,601 | 212,034 | 813,158 | 4,473,362 | 250,302 | 10,481,254 |
Total loans and leases, net of unearned income | $ 2,746,566 | $ 1,191,452 | $ 2,470,772 | $ 2,460,674 | $ 1,422,973 | $ 3,055,616 | $ 634,132 | $ 1,871,688 | $ 13,615,289 | $ 4,272,593 | $ 33,741,755 |
Table 11 Noninterest Revenue and Expense (Unaudited) | |||||
Quarter Ended | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
NONINTEREST REVENUE: | |||||
Trust and asset management income | $ 11,823 | $ 12,485 | $ 12,055 | $ 12,645 | $ 11,322 |
Investment advisory fees | 8,454 | 8,502 | 8,641 | 8,180 | 8,336 |
Brokerage and annuity fees | 3,002 | 2,986 | 3,414 | 3,181 | 3,175 |
Deposit service charges | 17,736 | 18,694 | 18,814 | 17,652 | 18,338 |
Credit card, debit card and merchant fees | 11,989 | 12,664 | 12,649 | 12,770 | 12,162 |
Mortgage banking excl. MSR and MSR hedge market | 9,743 | 6,293 | 8,171 | 9,875 | 9,116 |
MSR and MSR hedge market value adjustment | (3,105) | (2,739) | (7,038) | (3,702) | (2,673) |
Security losses, net | (9) | (3) | (2,947) | (4) | (9) |
Bank-owned life insurance | 5,202 | 5,046 | 4,353 | 4,370 | 3,946 |
Other miscellaneous income | 20,552 | 22,237 | 27,789 | 35,691 | 20,073 |
Total noninterest revenue | $ 85,387 | $ 86,165 | $ 85,901 | $ 100,658 | $ 83,786 |
NONINTEREST EXPENSE: | |||||
Salaries and employee benefits | $ 152,972 | $ 152,381 | $ 152,237 | $ 148,038 | $ 156,650 |
Occupancy and equipment | 28,477 | 27,275 | 28,894 | 29,367 | 28,640 |
Data processing and software | 27,132 | 33,226 | 29,164 | 29,467 | 30,028 |
Deposit insurance assessments | 8,643 | 8,284 | 7,481 | 15,741 | 8,414 |
Amortization of intangibles | 3,668 | 3,904 | 3,933 | 3,999 | 4,066 |
Merger expense | 315 | - | - | - | - |
Advertising and public relations | 4,157 | 5,870 | 5,481 | 6,537 | 4,224 |
Foreclosed property expense | 864 | 621 | 486 | 515 | 268 |
Telecommunications | 1,512 | 1,359 | 1,513 | 1,441 | 1,545 |
Travel and entertainment | 2,436 | 2,618 | 2,612 | 2,549 | 2,236 |
Professional, consulting and outsourcing | 4,733 | 4,540 | 4,115 | 3,534 | 3,935 |
Legal | 3,559 | 4,176 | 3,664 | 758 | 3,682 |
Postage and shipping | 1,773 | 1,624 | 1,677 | 1,622 | 2,205 |
Other miscellaneous expense | 19,108 | 20,308 | 18,181 | 13,129 | 17,314 |
Total noninterest expense | $ 259,349 | $ 266,186 | $ 259,438 | $ 256,697 | $ 263,207 |
Table 12 Average Balance and Yields (Unaudited) | |||||||||||
Quarter Ended | |||||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
(Dollars in thousands) | Average Balance | Income/ | Yield/ Rate | Average Balance | Income/ | Yield/ Rate | Average Balance | Income/ | Yield/ Rate | ||
ASSETS | |||||||||||
Interest-earning assets: | |||||||||||
Loans and leases, excluding accretion | $ 33,944,416 | $ 527,951 | 6.31 % | $ 33,461,931 | $ 538,204 | 6.40 % | $ 32,737,574 | $ 525,878 | 6.46 % | ||
Accretion income on acquired loans | 2,562 | 0.03 | 2,422 | 0.03 | 3,515 | 0.04 | |||||
Loans held for sale | 115,261 | 1,449 | 5.10 | 123,211 | 1,694 | 5.47 | 72,356 | 1,184 | 6.58 | ||
Investment securities | |||||||||||
Taxable | 7,222,326 | 53,232 | 2.99 | 7,555,265 | 57,476 | 3.03 | 8,187,342 | 63,405 | 3.11 | ||
Tax-exempt | 79,846 | 796 | 4.04 | 81,418 | 804 | 3.93 | 82,366 | 870 | 4.25 | ||
Total investment securities | 7,302,172 | 54,028 | 3.00 | 7,636,683 | 58,280 | 3.04 | 8,269,708 | 64,275 | 3.13 | ||
Other investments | 1,275,153 | 13,897 | 4.42 | 1,698,300 | 20,369 | 4.77 | 3,146,439 | 42,897 | 5.48 | ||
Total interest-earning assets | 42,637,002 | 599,887 | 5.71 % | 42,920,125 | 620,969 | 5.76 % | 44,226,077 | 637,749 | 5.80 % | ||
Other assets | 4,963,761 | 4,809,384 | 4,890,312 | ||||||||
Allowance for credit losses | 465,332 | 465,971 | 473,849 | ||||||||
Total assets | $ 47,135,431 | $ 47,263,538 | $ 48,642,540 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Interest-bearing liabilities: | |||||||||||
Interest bearing demand and money market | $ 19,428,376 | $ 128,831 | 2.69 % | $ 18,845,689 | $ 135,965 | 2.87 % | $ 19,303,845 | $ 149,403 | 3.11 % | ||
Savings deposits | 2,607,366 | 3,644 | 0.57 | 2,573,961 | 3,684 | 0.57 | 2,696,452 | 3,801 | 0.57 | ||
Time deposits | 9,978,136 | 100,900 | 4.10 | 9,646,809 | 103,785 | 4.28 | 7,348,356 | 80,670 | 4.42 | ||
Total interest-bearing deposits | 32,013,878 | 233,375 | 2.96 | 31,066,459 | 243,434 | 3.12 | 29,348,653 | 233,874 | 3.21 | ||
Fed funds purchased, securities sold under | 103,067 | 1,132 | 4.45 | 26,042 | 300 | 4.58 | 209,348 | 2,528 | 4.86 | ||
Short-term FHLB borrowings | 28,278 | 309 | 4.43 | - | - | - | - | - | - | ||
Short-term BTFP borrowings | - | - | - | 897,826 | 10,772 | 4.77 | 3,500,000 | 42,104 | 4.84 | ||
Subordinated and long-term borrowings | 129,030 | 1,289 | 4.05 | 123,442 | 1,284 | 4.14 | 434,579 | 4,699 | 4.35 | ||
Total interest-bearing liabilities | 32,274,253 | 236,105 | 2.97 % | 32,113,769 | 255,790 | 3.17 % | 33,492,580 | 283,205 | 3.40 % | ||
Noninterest-bearing liabilities: | |||||||||||
Demand deposits | 8,339,414 | 8,676,765 | 9,072,619 | ||||||||
Other liabilities | 870,172 | 883,643 | 883,293 | ||||||||
Total liabilities | 41,483,839 | 41,674,177 | 43,448,492 | ||||||||
Shareholders' equity | 5,651,592 | 5,589,361 | 5,194,048 | ||||||||
Total liabilities and shareholders' equity | $ 47,135,431 | $ 47,263,538 | $ 48,642,540 | ||||||||
Net interest income/net interest spread | 363,782 | 2.74 % | 365,179 | 2.59 % | 354,544 | 2.40 % | |||||
Net yield on earning assets/net interest margin | 3.46 % | 3.38 % | 3.22 % | ||||||||
Taxable equivalent adjustment: | |||||||||||
Loans and investment securities | (630) | (648) | (636) | ||||||||
Net interest revenue | $ 363,152 | $ 364,531 | $ 353,908 | ||||||||
Table 13 Selected Additional Data (Unaudited) | |||||
Quarter Ended | |||||
(Dollars in thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
MORTGAGE SERVICING RIGHTS ("MSR"): | |||||
Fair value, beginning of period | $ 114,594 | $ 104,891 | $ 113,595 | $ 111,685 | $ 106,824 |
Originations of servicing assets | 2,796 | 4,227 | 3,361 | 3,687 | 2,736 |
Changes in fair value: | |||||
Due to changes in valuation inputs or assumptions(1) | (4,447) | 9,193 | (8,232) | 927 | 4,781 |
Other changes in fair value(2) | (1,974) | (3,717) | (3,833) | (2,704) | (2,656) |
Fair value, end of period | $ 110,969 | $ 114,594 | $ 104,891 | $ 113,595 | $ 111,685 |
MORTGAGE BANKING REVENUE: | |||||
Origination | $ 3,402 | $ 332 | $ 2,145 | $ 3,976 | $ 3,165 |
Servicing | 6,341 | 5,961 | 6,026 | 5,899 | 5,951 |
Total mortgage banking revenue excluding MSR | 9,743 | 6,293 | 8,171 | 9,875 | 9,116 |
Due to changes in valuation inputs or assumptions(1) | (4,447) | 9,193 | (8,232) | 927 | 4,781 |
Other changes in fair value(2) | (1,974) | (3,717) | (3,833) | (2,704) | (2,656) |
Market value adjustment on MSR Hedge | 3,316 | (8,215) | 5,027 | (1,925) | (4,798) |
Total mortgage banking revenue | $ 6,638 | $ 3,554 | $ 1,133 | $ 6,173 | $ 6,443 |
Mortgage loans serviced | $ 8,111,379 | $ 8,043,306 | $ 7,927,028 | $ 7,824,895 | $ 7,764,936 |
MSR/mortgage loans serviced | 1.37 % | 1.42 % | 1.32 % | 1.45 % | 1.44 % |
(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) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
AVAILABLE FOR SALE SECURITIES, at fair value | |||||
U.S. Treasury securities | $ - | $ - | $ - | $ - | $ 239,402 |
Obligations of U.S. government agencies | 274,285 | 281,231 | 300,730 | 305,200 | 318,233 |
Mortgage-backed securities issued or guaranteed by U.S. agencies ("MBS"): | |||||
Residential pass-through: | |||||
Guaranteed by GNMA | 66,149 | 66,581 | 71,001 | 69,788 | 72,034 |
Issued by FNMA and FHLMC | 4,024,678 | 3,965,556 | 4,163,760 | 4,125,416 | 4,254,227 |
Other residential mortgage-back securities | 1,564,928 | 934,721 | 1,135,004 | 1,233,868 | 1,210,617 |
Commercial mortgage-backed securities | 1,486,525 | 1,549,641 | 1,664,288 | 1,673,823 | 1,694,967 |
Total MBS | 7,142,280 | 6,516,499 | 7,034,053 | 7,102,895 | 7,231,845 |
Obligations of states and political subdivisions | 129,822 | 132,069 | 137,996 | 133,155 | 134,643 |
Other domestic debt securities | 48,422 | 47,402 | 51,599 | 64,288 | 67,421 |
Foreign debt securities | 317,350 | 316,787 | 317,307 | 315,884 | 315,045 |
Total available for sale securities | $ 7,912,159 | $ 7,293,988 | $ 7,841,685 | $ 7,921,422 | $ 8,306,589 |
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 net income, adjusted net income available to common shareholders, pre-tax pre-provision net revenue, adjusted pre-tax pre-provision net revenue, 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, adjusted return on average tangible common equity, adjusted return on average assets, adjusted return on average common shareholders' equity, 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, and adjusted dividend payout ratio. The Company has included these non-GAAP financial measures in this release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures: (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and adjusted performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names. |
Quarter Ended | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
Adjusted Net Income Available to Common Shareholders | |||||
Net income | $ 133,222 | $ 132,715 | $ 136,439 | $ 137,472 | $ 116,978 |
Plus: Merger expense | 315 | - | - | - | - |
Incremental merger related expense | 55 | - | - | - | - |
Gain on extinguishment of debt | - | - | - | (1,098) | (576) |
Restructuring and other nonroutine expenses | 351 | (505) | (920) | 6,675 | 251 |
Less: Security losses, net | (9) | (3) | (2,947) | (4) | (9) |
Gain on sale of businesses | - | - | - | 14,980 | - |
Tax adjustment | 172 | (118) | 476 | (2,209) | (74) |
Adjusted net income | 133,780 | 132,331 | 137,990 | 130,282 | 116,736 |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 |
Adjusted net income available to common shareholders | $ 131,408 | $ 129,959 | $ 135,618 | $ 127,910 | $ 114,364 |
Quarter Ended | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
Pre-Tax Pre-Provision Net Revenue | |||||
Net income | $ 133,222 | $ 132,715 | $ 136,439 | $ 137,472 | $ 116,978 |
Plus: Provision for credit losses | 20,000 | 15,000 | 12,000 | 22,000 | 22,000 |
Income tax expense | 35,968 | 36,795 | 39,482 | 40,807 | 35,509 |
Pre-tax pre-provision net revenue | $ 189,190 | $ 184,510 | $ 187,921 | $ 200,279 | $ 174,487 |
Quarter Ended | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
Adjusted Pre-Tax Pre-Provision Net Revenue | |||||
Net income | $ 133,222 | $ 132,715 | $ 136,439 | $ 137,472 | $ 116,978 |
Plus: Provision for credit losses | 20,000 | 15,000 | 12,000 | 22,000 | 22,000 |
Merger expense | 315 | - | - | - | - |
Incremental merger related expense | 55 | - | - | - | - |
Gain on extinguishment of debt | - | - | - | (1,098) | (576) |
Restructuring and other nonroutine expenses | 351 | (505) | (920) | 6,675 | 251 |
Income tax expense | 35,968 | 36,795 | 39,482 | 40,807 | 35,509 |
Less: Security losses, net | (9) | (3) | (2,947) | (4) | (9) |
Gain on sale of businesses | - | - | - | 14,980 | - |
Adjusted pre-tax pre-provision net revenue | $ 189,920 | $ 184,008 | $ 189,948 | $ 190,880 | $ 174,171 |
Quarter Ended | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
Total Adjusted Revenue | |||||
Net interest revenue | $ 363,152 | $ 364,531 | $ 361,458 | $ 356,318 | $ 353,908 |
Total Adjusted Noninterest Revenue | |||||
Total noninterest revenue | $ 85,387 | $ 86,165 | $ 85,901 | $ 100,658 | $ 83,786 |
Less: Security losses, net | (9) | (3) | (2,947) | (4) | (9) |
Gain on sale of businesses | - | - | - | 14,980 | - |
Total adjusted noninterest revenue | $ 85,396 | $ 86,168 | $ 88,848 | $ 85,682 | $ 83,795 |
Total adjusted revenue | $ 448,548 | $ 450,699 | $ 450,306 | $ 442,000 | $ 437,703 |
Quarter Ended | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
Total Adjusted Noninterest Expense | |||||
Total noninterest expense | $ 259,349 | $ 266,186 | $ 259,438 | $ 256,697 | $ 263,207 |
Less: Merger expense | 315 | - | - | - | - |
Incremental merger related expense | 55 | - | - | - | - |
Gain on extinguishment of debt | - | - | - | (1,098) | (576) |
Restructuring and other nonroutine expenses | 351 | (505) | (920) | 6,675 | 251 |
Total adjusted noninterest expense | $ 258,628 | $ 266,691 | $ 260,358 | $ 251,120 | $ 263,532 |
Quarter Ended | |||||
(In thousands) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
Total Tangible Assets, Excluding AOCI | |||||
Total assets | $ 47,743,294 | $ 47,019,190 | $ 49,204,933 | $ 47,984,078 | $ 48,313,863 |
Less: Goodwill | 1,366,923 | 1,366,923 | 1,366,923 | 1,366,923 | 1,367,785 |
Other intangible assets, net | 79,522 | 83,190 | 87,094 | 91,027 | 96,126 |
Total tangible assets | 46,296,849 | 45,569,077 | 47,750,916 | 46,526,128 | 46,849,952 |
Less: AOCI | (621,203) | (694,495) | (590,342) | (782,462) | (791,333) |
Total tangible assets, excluding AOCI | $ 46,918,052 | $ 46,263,572 | $ 48,341,258 | $ 47,308,590 | $ 47,641,285 |
Quarter Ended | |||||
(Dollars in thousands, except per share data) | Mar 2025 | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 |
PERIOD END BALANCES: | |||||
Total Shareholders' Equity, Excluding AOCI | |||||
Total shareholders' equity | $5,718,541 | $5,569,683 | $5,572,863 | $5,287,758 | $5,189,932 |
Less: AOCI | (621,203) | (694,495) | (590,342) | (782,462) | (791,333) |
Total shareholders' equity, excluding AOCI | $6,339,744 | $6,264,178 | $6,163,205 | $6,070,220 | $5,981,265 |
Common Shareholders' Equity, Excluding AOCI | |||||
Total shareholders' equity | $5,718,541 | $5,569,683 | $5,572,863 | $5,287,758 | $5,189,932 |
Less: preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Common shareholders' equity | 5,551,548 | 5,402,690 | 5,405,870 | 5,120,765 | 5,022,939 |
Less: AOCI | (621,203) | (694,495) | (590,342) | (782,462) | (791,333) |
Common shareholders' equity, excluding AOCI | $6,172,751 | $6,097,185 | $5,996,212 | $5,903,227 | $5,814,272 |
Total Tangible Common Shareholders' Equity, Excluding AOCI | |||||
Total shareholders' equity | $5,718,541 | $5,569,683 | $5,572,863 | $5,287,758 | $5,189,932 |
Less: Goodwill | 1,366,923 | 1,366,923 | 1,366,923 | 1,366,923 | 1,367,785 |
Other intangible assets, net | 79,522 | 83,190 | 87,094 | 91,027 | 96,126 |
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Total tangible common shareholders' equity | 4,105,103 | 3,952,577 | 3,951,853 | 3,662,815 | 3,559,028 |
Less: AOCI | (621,203) | (694,495) | (590,342) | (782,462) | (791,333) |
Total tangible common shareholders' equity, excluding AOCI | $4,726,306 | $4,647,072 | $4,542,195 | $4,445,277 | $4,350,361 |
AVERAGE BALANCES: | |||||
Total Tangible Common Shareholders' Equity | |||||
Total shareholders' equity | $5,651,592 | $5,589,361 | $5,420,826 | $5,207,254 | $5,194,048 |
Less: Goodwill | 1,366,923 | 1,366,923 | 1,366,923 | 1,367,358 | 1,367,785 |
Other intangible assets, net | 81,527 | 85,323 | 89,262 | 93,743 | 98,350 |
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 |
Total tangible common shareholders' equity | $4,036,149 | $3,970,122 | $3,797,648 | $3,579,160 | $3,560,920 |
Total average assets | $47,135,431 | $47,263,538 | $47,803,977 | $48,192,719 | $48,642,540 |
Total shares of common stock outstanding | 184,046,420 | 183,527,575 | 182,315,142 | 182,430,427 | 182,681,325 |
Average shares outstanding-diluted | 186,121,979 | 186,038,243 | 185,496,110 | 185,260,963 | 185,574,130 |
Tangible common shareholders' equity to tangible assets (1) | 8.87 % | 8.67 % | 8.28 % | 7.87 % | 7.60 % |
Tangible common shareholders' equity, excluding AOCI, to | 10.07 | 10.04 | 9.40 | 9.40 | 9.13 |
Return on average tangible common equity (3) | 13.15 | 13.06 | 14.04 | 15.18 | 12.94 |
Adjusted return on average tangible common equity (4) | 13.20 | 13.02 | 14.21 | 14.37 | 12.92 |
Adjusted return on average assets (5) | 1.15 | 1.11 | 1.15 | 1.09 | 0.97 |
Adjusted return on average common shareholders' equity (6) | 9.72 | 9.53 | 10.27 | 10.21 | 9.15 |
Pre-tax pre-provision net revenue to total average assets (7) | 1.63 | 1.55 | 1.56 | 1.67 | 1.44 |
Adjusted pre-tax pre-provision net revenue to total average assets (8) | 1.63 | 1.55 | 1.58 | 1.59 | 1.44 |
Tangible book value per common share (9) | $ 22.30 | $ 21.54 | $ 21.68 | $ 20.08 | $ 19.48 |
Tangible book value per common share, excluding AOCI (10) | 25.68 | 25.32 | 24.91 | 24.37 | 23.81 |
Adjusted earnings per common share (11) | $ 0.71 | $ 0.70 | $ 0.73 | $ 0.69 | $ 0.62 |
Adjusted dividend payout ratio (12) | 38.73 % | 35.71 % | 34.25 % | 36.23 % | 40.32 % |
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 is defined by the Company as annualized net income available to common shareholders divided by average tangible common shareholders equity. |
(4) | Adjusted return on average tangible common equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average tangible common shareholders' equity. |
(5) | Adjusted return on average assets is defined by the Company as annualized net adjusted income divided by total average assets. |
(6) | Adjusted return on average common shareholders' equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average common shareholders' equity. |
(7) | Pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue divided by total average assets. |
(8) | Adjusted pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized adjusted pre-tax pre-provision net revenue divided by total average assets adjusted for items included in the definition and calculation of adjusted income. |
(9) | Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding. |
(10) | Tangible book value per common share, excluding AOCI is defined by the Company as tangible common shareholders' equity less accumulated other comprehensive loss divided by total shares of common stock outstanding. |
(11) | Adjusted earnings per common share is defined by the Company as net adjusted income available to common shareholders divided by average common shares outstanding-diluted. |
(12) | Adjusted dividend payout ratio is defined by the Company as common share dividends divided by net adjusted income available to common shareholders. |
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. The adjusted efficiency ratio excludes income and expense items otherwise disclosed as non-routine from total noninterest expense.
SOURCE Cadence Bank
