Webster Reports Third Quarter 2024 EPS of $1.10; Adjusted EPS of $1.34
Third quarter 2024 results include
“Webster delivered solid deposit and loan growth, even in a challenging environment,” said
Highlights for the third quarter of 2024:
-
Revenue of
$647.6 million . -
Period end loans and leases balance of
$51.9 billion , up$0.4 billion or 0.7 percent from prior quarter; excluding a$0.3 billion strategic repositioning of the balance sheet through a commercial real estate ("CRE") securitization, loans grew 1.3 percent. -
Period end deposits balance of
$64.5 billion , up$2.2 billion or 3.6 percent from prior quarter; core deposit growth of$2.6 billion from prior quarter;$1.1 billion of growth from seasonal public funds inflows. -
Provision for credit losses of
$54.0 million . - Return on average assets of 1.01 percent; adjusted 1.22 percent1.
- Return on average tangible common equity of 14.29 percent1; adjusted 17.28 percent1.
- Net interest margin of 3.36 percent, up 4 basis points from prior quarter.
- Common equity tier 1 ratio of 11.23%.
- Efficiency ratio of 45.49 percent1.
- Tangible common equity ratio of 7.48 percent1.
“In addition to our diverse balance sheet growth, we took actions this quarter to reduce our CRE concentration, enhance capital ratios, and further mitigate our interest rate sensitivity while maintaining industry leading efficiency,” said
1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.
Consolidated financial performance:
Quarterly net interest income compared to the third quarter of 2023:
-
Net interest income was
$589.9 million compared to$587.1 million . - Net interest margin was 3.36 percent compared to 3.49 percent. The yield on interest-earning assets increased by 20 basis points, and the cost of interest-bearing liabilities increased by 35 basis points.
-
Average interest-earning assets totaled
$69.8 billion and increased by$2.7 billion , or 4.0 percent. -
Average loans and leases totaled
$51.8 billion and increased by$0.8 billion , or 1.6 percent. -
Average deposits totaled
$62.6 billion and increased by$3.0 billion , or 5.0 percent.
Quarterly provision for credit losses:
-
The provision for credit losses was
$54.0 million in the quarter, contributing to a$18.4 million increase in the allowance for credit losses on loans and leases from the prior quarter. The provision for credit losses was$59.0 million in the prior quarter, and$36.5 million a year ago. -
Net charge-offs were
$35.4 million , compared to$33.1 million in the prior quarter, and$29.3 million a year ago. The ratio of net charge-offs to average loans and leases was 0.27 percent, compared to 0.26 percent in the prior quarter, and 0.23 percent a year ago. -
The allowance for credit losses on loans and leases represented 1.32 percent of total loans and leases, compared to 1.30 percent at
June 30, 2024 , and 1.27 percent atSeptember 30, 2023 . The allowance represented 162 percent of nonperforming loans and leases, compared to 181 percent atJune 30, 2024 , and 295 percent atSeptember 30, 2023 .
Quarterly non-interest income compared to the third quarter of 2023:
-
Total non-interest income was
$57.7 million compared to$90.4 million , a decrease of$32.7 million . Total non-interest income includes a$19.6 million net loss on the sale of investment securities and a$16.0 million loss on the exit of non-core operations including the write-off of a related customer intangible. Excluding these items, total non-interest income increased$2.9 million . The increase is primarily attributable to the addition of Ametros and higher investment services income, which was partially offset by a reduction in the credit valuation adjustment on customer derivatives.
Quarterly non-interest expense compared to the third quarter of 2023:
-
Total non-interest expense was
$349.0 million compared to$362.6 million , a decrease of$13.6 million . Total non-interest expense includes a net$20.6 million related to strategic restructuring costs and other adjustments partially offset by a benefit on theFDIC special assessment compared to a net$61.6 million of Sterling merger charges a year ago. Excluding those charges, total non-interest expense increased$27.4 million . The increase is primarily attributable to the addition of Ametros and related intangible amortization expense, along with investments in human capital and technology.
Quarterly income taxes compared to the third quarter of 2023:
-
Income tax expense was
$51.7 million compared to$52.0 million , and the effective tax rate was 21.1 percent compared to 18.7 percent. The lower effective tax rate in the period a year ago reflected the recognition of discrete tax benefits from merger related charges and tax return true-up adjustments, while the current period includes discrete tax expense from tax return true-ups and other items.
Investment securities:
-
Total investment securities, net were
$17.2 billion , compared to$16.4 billion atJune 30, 2024 , and$14.5 billion atSeptember 30, 2023 . The carrying value of the available-for-sale portfolio included$486.1 million of net unrealized losses, compared to$772.2 million atJune 30, 2024 , and$1.1 billion atSeptember 30, 2023 . The carrying value of the held-to-maturity portfolio does not reflect$677.0 million of net unrealized losses, compared to$964.5 million atJune 30, 2024 , and$1.2 billion atSeptember 30, 2023 .
Loans and leases:
-
Total loans and leases were
$51.9 billion , compared to$51.6 billion atJune 30, 2024 , and$50.1 billion atSeptember 30, 2023 . Compared toJune 30, 2024 , commercial loans and leases increased by$628.6 million , commercial real estate loans decreased by$586.4 million , residential mortgages increased by$292.3 million , and consumer loans increased by$39.1 million . -
Compared to a year ago, commercial loans and leases increased by
$0.4 billion , commercial real estate loans increased by$1.1 billion , residential mortgages increased by$348.2 million , and consumer loans decreased by$26.9 million . -
Loan originations for the portfolio were
$2.8 billion , compared to$3.0 billion in the prior quarter, and$1.5 billion a year ago. In addition,$0.8 million of residential loans were originated for sale in the quarter, compared to$0.8 million in the prior quarter, and$1.5 million a year ago.
Asset quality:
-
Total nonperforming loans and leases were
$425.6 million , or 0.82 percent of total loans and leases, compared to$368.8 million , or 0.72 percent of total loans and leases, atJune 30, 2024 , and$215.1 million , or 0.43 percent of total loans and leases, atSeptember 30, 2023 . -
Past due loans and leases were
$108.9 million , compared to$166.3 million atJune 30, 2024 , and$70.7 million atSeptember 30, 2023 . The decrease from prior quarter is driven primarily by commercial non-mortgage, partially offset by commercial real estate and residential mortgages.
Deposits and borrowings:
-
Total deposits were
$64.5 billion , compared to$62.3 billion atJune 30, 2024 , and$60.3 billion atSeptember 30, 2023 . Core deposits to total deposits1 were 88.5 percent, compared to 87.5 percent atJune 30, 2024 , and 87.6 percent atSeptember 30, 2023 . The loan to deposit ratio was 80.5 percent, compared to 82.8 percent atJune 30, 2024 , and 83.0 percent atSeptember 30, 2023 . -
Total borrowings were
$4.1 billion , compared to$4.0 billion atJune 30, 2024 , and$3.0 billion atSeptember 30, 2023 .
Capital:
- The return on average common stockholders’ equity and the return on average tangible common stockholders’ equity1 were 8.67 percent and 14.29 percent, respectively, compared to 11.00 percent and 17.51 percent, respectively, in the third quarter of 2023.
-
The tangible equity1 and tangible common equity1 ratios were 7.85 percent and 7.48 percent, respectively, compared to 7.62 percent and 7.22 percent, respectively, at
September 30, 2023 . The common equity tier 1 ratio was 11.23 percent, compared to 11.12 percent atSeptember 30, 2023 . -
Book value and tangible book value per common share1 were
$52.00 and$33.26 , respectively, compared to$46.00 and$29.48 , respectively, atSeptember 30, 2023 .
1 See “Non-GAAP to GAAP Reconciliations” section beginning on page 19.
Reportable segments :
Commercial Banking
Webster’s Commercial Banking segment serves businesses that have more than
Commercial Banking Operating Results:
|
|
|
|
|
Percent |
|||
|
Three months ended |
|
Favorable/ |
|||||
(In thousands) |
|
2024 |
2023 |
|
(Unfavorable) |
|||
Net interest income |
|
|
|
|
|
(7.3 |
)% |
|
Non-interest income |
|
33,288 |
28,804 |
|
|
15.6 |
|
|
Operating revenue |
|
371,712 |
393,807 |
|
|
(5.6 |
) |
|
Non-interest expense |
|
100,892 |
98,736 |
|
|
(2.2 |
) |
|
Pre-tax, pre-provision net revenue |
|
|
|
|
|
(8.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
|||
|
|
At |
|
Increase/ |
||||
(In millions) |
|
2024 |
2023 |
|
(Decrease) |
|||
Loans and leases |
|
|
|
|
|
3.9 |
% |
|
Deposits |
|
17,124 |
17,166 |
|
|
(0.2 |
) |
|
AUA / AUM (off balance sheet) |
|
2,968 |
2,727 |
|
|
8.9 |
|
|
Pre-tax, pre-provision net revenue decreased
Webster’s
Healthcare Financial Services Operating Results:
|
|
|
|
|
Percent |
|||
|
Three months ended |
|
Favorable/ |
|||||
(In thousands) |
|
2024 |
2023 |
|
(Unfavorable) |
|||
Net interest income |
|
|
|
|
|
20.9 |
% |
|
Non-interest income |
|
26,541 |
20,799 |
|
|
27.6 |
|
|
Operating revenue |
|
120,481 |
98,468 |
|
|
22.4 |
|
|
Non-interest expense |
|
54,023 |
39,870 |
|
|
(35.5 |
) |
|
Pre-tax, net revenue |
|
|
|
|
|
13.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
At |
|
Percent |
||||
(Dollars in millions) |
|
2024 |
2023 |
|
Increase |
|||
Number of accounts (thousands) |
|
3,341 |
3,186 |
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
20.8 |
|
|
Linked investment accounts (off balance sheet) |
|
5,205 |
4,095 |
|
|
27.1 |
|
|
Total footings |
|
|
|
|
|
22.9 |
|
|
Pre-tax net revenue increased
Consumer Banking
Webster’s Consumer Banking segment serves consumer and business banking customers primarily throughout southern
Consumer Banking Operating Results:
|
|
|
|
|
Percent |
|||
|
Three months ended |
|
Favorable/ |
|||||
(In thousands) |
|
2024 |
2023 |
|
(Unfavorable) |
|||
Net interest income |
|
|
|
|
|
(8.8 |
)% |
|
Non-interest income |
|
28,299 |
28,687 |
|
|
(1.4 |
) |
|
Operating revenue |
|
230,421 |
250,385 |
|
|
(8.0 |
) |
|
Non-interest expense |
|
116,253 |
117,273 |
|
|
0.9 |
|
|
Pre-tax, pre-provision net revenue |
|
|
|
|
|
(14.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
At |
|
Percent |
||||
(In millions) |
|
2024 |
2023 |
|
Increase |
|||
Loans |
|
|
|
|
|
3.1 |
% |
|
Deposits |
|
27,020 |
25,869 |
|
|
4.4 |
|
|
AUA (off balance sheet) |
|
7,948 |
7,615 |
|
|
4.4 |
|
|
Pre-tax, pre-provision net revenue decreased
Conference Call
A conference call covering Webster’s third quarter 2024 earnings announcement will be held today,
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” “continue,” “remain,” “will,” “should,” “may,” “plans,” “estimates,” and similar references to future periods. However, these words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to: projections of revenues, expenses, expense savings, income or loss, earnings or loss per share, and other financial items; statements of plans, objectives, and expectations of Webster or its management or Board of Directors; statements of future economic performance; and statements of assumptions underlying such statements. Forward-looking statements are based on Webster’s current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Webster’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Factors that could cause Webster’s actual results to differ from those discussed in any forward-looking statements include, but are not limited to: Webster’s ability to successfully execute its business plan and strategic initiatives, and manage any risks or uncertainties; continued regulatory changes or other mitigation efforts taken by government agencies in response to volatility in the banking industry; volatility in Webster’s stock price due to investor sentiment and perception of the banking industry; local, regional, national, and international economic conditions, and the impact they may have on Webster or its customers; volatility and disruption in national and international financial markets, including as a result of geopolitical conflict; the impact of unrealized losses in Webster’s available-for-sale securities portfolio; changes in laws and regulations, or existing laws and regulations that Webster becomes subject to, including those concerning banking, taxes, dividends, securities, insurance, cybersecurity, and healthcare administration, with which Webster and its subsidiaries must comply; adverse conditions in the securities markets that could lead to impairment in the value of Webster’s securities portfolio; inflation, monetary fluctuations, and changes in interest rates, including the impact of such changes on economic conditions, customer behavior, funding costs, and Webster’s loans and leases and securities portfolios; possible changes in governmental monetary and fiscal policies, including, but not limited to, the
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of net income, return on average tangible common stockholders’ equity, and other performance ratios, in each case as adjusted, is included in the accompanying selected financial highlights table.
Webster believes that providing certain non-GAAP financial measures provides investors with information useful in understanding its financial performance, performance trends, and financial position. Webster utilizes these measures for internal planning and forecasting purposes. Webster, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. Webster believes that its presentation and discussion, together with the accompanying reconciliations, provides additional clarity of factors and trends affecting its business and allows investors to view performance in a manner similar to management.
The efficiency ratio, which represents the costs expended to generate a dollar of revenue, is calculated excluding certain non-operational items. The return on average tangible common stockholders’ equity (ROATCE) represents net income available to common stockholders, adjusted for the tax-effected amortization of intangible assets, as a percentage of average stockholders’ equity less average preferred stock and average goodwill and net intangible assets. The tangible equity ratio represents stockholders’ equity less goodwill and net intangible assets divided by total assets less goodwill and net intangible assets. The tangible common equity ratio represents stockholders’ equity less preferred stock and goodwill and net intangible assets divided by total assets less goodwill and net intangible assets. Tangible book value per common share represents stockholders’ equity less preferred stock and goodwill and net intangible assets divided by common shares outstanding at the end of the period. Core deposits reflect total deposits less certificates of deposit and brokered certificates of deposit. Adjusted pre-tax net income, adjusted net income available to common stockholders, adjusted diluted earnings per share (EPS), adjusted ROATCE, and adjusted return on average assets (ROAA) are calculated excluding a net loss on sale of investment securities, exit of non-core operations, strategic restructuring costs, and a
These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Webster strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Refer the tables beginning on page 19 for Non-GAAP to GAAP reconciliations.
Selected Financial Highlights (unaudited) |
||||||||||||||||||
At or for the Three Months Ended | ||||||||||||||||||
(In thousands, except per share data) |
2024 |
2024 |
2024 |
2023 |
2023 |
|||||||||||||
Income and performance ratios: | ||||||||||||||||||
Net income | $ |
192,985 |
$ |
181,633 |
$ |
216,323 |
$ |
185,393 |
$ |
226,475 |
||||||||
Net income available to common stockholders |
188,823 |
177,471 |
212,160 |
181,230 |
222,313 |
|||||||||||||
Earnings per diluted common share |
1.10 |
1.03 |
1.23 |
1.05 |
1.28 |
|||||||||||||
Return on average assets (annualized) |
1.01 |
% |
0.96 |
% |
1.15 |
% |
1.01 |
% |
1.23 |
|||||||||
Return on average tangible common stockholders' equity (annualized) (1) |
14.29 |
14.17 |
16.30 |
14.49 |
17.51 |
|||||||||||||
Return on average common stockholders’ equity (annualized) |
8.67 |
8.40 |
10.01 |
9.03 |
11.00 |
|||||||||||||
Non-interest income as a percentage of total revenue |
8.92 |
6.88 |
14.89 |
10.05 |
13.34 |
|||||||||||||
Asset quality: | ||||||||||||||||||
Allowance for credit losses on loans and leases | $ |
687,798 |
$ |
669,355 |
$ |
641,442 |
$ |
635,737 |
$ |
635,438 |
||||||||
Nonperforming assets |
427,274 |
374,884 |
289,254 |
218,600 |
218,402 |
|||||||||||||
Allowance for credit losses on loans and leases / total loans and leases |
1.32 |
% |
1.30 |
% |
1.26 |
% |
1.25 |
% |
1.27 |
|||||||||
Net charge-offs / average loans and leases (annualized) |
0.27 |
0.26 |
0.29 |
0.27 |
0.23 |
|||||||||||||
Nonperforming loans and leases / total loans and leases |
0.82 |
0.72 |
0.56 |
0.41 |
0.43 |
|||||||||||||
Nonperforming assets / total loans and leases plus other real estate owned and repossessed assets |
0.82 |
0.73 |
0.57 |
0.43 |
0.44 |
|||||||||||||
Allowance for credit losses on loans and leases / nonperforming loans and leases |
161.60 |
181.48 |
226.17 |
303.39 |
295.48 |
|||||||||||||
Other ratios: | ||||||||||||||||||
Tangible equity (1) |
7.85 |
% |
7.56 |
% |
7.54 |
% |
8.12 |
% |
7.62 |
|||||||||
Tangible common equity (1) |
7.48 |
7.18 |
7.15 |
7.73 |
7.22 |
|||||||||||||
Tier 1 risk-based capital (2) |
11.75 |
11.09 |
11.08 |
11.62 |
11.64 |
|||||||||||||
Total risk-based capital (2) |
14.03 |
13.28 |
13.21 |
13.72 |
13.79 |
|||||||||||||
Common equity tier 1 risk-based capital (2) |
11.23 |
10.59 |
10.57 |
11.11 |
11.12 |
|||||||||||||
Stockholders’ equity / total assets |
11.58 |
11.46 |
11.49 |
11.60 |
11.21 |
|||||||||||||
Net interest margin |
3.36 |
3.32 |
3.35 |
3.42 |
3.49 |
|||||||||||||
Efficiency ratio (1) |
45.49 |
46.22 |
45.25 |
43.04 |
41.75 |
|||||||||||||
Equity and share related: | ||||||||||||||||||
Common equity | $ |
8,914,071 |
$ |
8,525,289 |
$ |
8,463,519 |
$ |
8,406,017 |
$ |
7,915,222 |
||||||||
Book value per common share |
52.00 |
49.74 |
49.07 |
48.87 |
46.00 |
|||||||||||||
Tangible book value per common share (1) |
33.26 |
30.82 |
30.22 |
32.39 |
29.48 |
|||||||||||||
Common stock closing price |
46.61 |
43.59 |
50.77 |
50.76 |
40.31 |
|||||||||||||
Dividends declared per common share |
0.40 |
0.40 |
0.40 |
0.40 |
0.40 |
|||||||||||||
Common shares issued and outstanding |
171,428 |
171,402 |
172,464 |
172,022 |
172,056 |
|||||||||||||
Weighted-average common shares outstanding - Basic |
169,569 |
169,675 |
170,445 |
170,415 |
171,210 |
|||||||||||||
Weighted-average common shares outstanding - Diluted |
169,894 |
169,937 |
170,704 |
170,623 |
171,350 |
|||||||||||||
(1) See "Non-GAAP to GAAP Reconciliations" section beginning on page 19. | ||||||||||||||||||
(2) Presented as preliminary for |
Consolidated Balance Sheets (unaudited) |
||||||||||
(In thousands) |
2024 |
2024 |
2023 |
|||||||
Assets: | ||||||||||
Cash and due from banks | $ |
721,261 |
$ |
333,138 |
$ |
406,300 |
||||
Interest-bearing deposits |
2,476,290 |
1,202,515 |
1,766,431 |
|||||||
Investment securities: | ||||||||||
Available-for-sale |
8,594,978 |
7,808,874 |
7,653,391 |
|||||||
Held-to-maturity, net |
8,565,936 |
8,637,654 |
6,875,772 |
|||||||
Total investment securities, net |
17,160,914 |
16,446,528 |
14,529,163 |
|||||||
Loans held for sale |
117,615 |
248,137 |
46,267 |
|||||||
Loans and leases: | ||||||||||
Commercial |
20,120,992 |
19,492,433 |
19,691,486 |
|||||||
Commercial real estate |
21,691,377 |
22,277,813 |
20,583,254 |
|||||||
Residential mortgages |
8,576,612 |
8,284,297 |
8,228,451 |
|||||||
Consumer |
1,558,034 |
1,518,922 |
1,584,955 |
|||||||
Total loans and leases |
51,947,015 |
51,573,465 |
50,088,146 |
|||||||
Allowance for credit losses on loans and leases |
(687,798) |
(669,355) |
(635,438) |
|||||||
Total loans and leases, net |
51,259,217 |
50,904,110 |
49,452,708 |
|||||||
|
360,795 |
348,263 |
306,085 |
|||||||
Premises and equipment, net |
411,070 |
417,700 |
431,698 |
|||||||
|
3,212,050 |
3,242,193 |
2,843,217 |
|||||||
Cash surrender value of life insurance policies |
1,247,624 |
1,241,367 |
1,242,648 |
|||||||
Deferred tax assets, net |
273,174 |
354,482 |
478,926 |
|||||||
Accrued interest receivable and other assets |
2,213,890 |
2,099,673 |
1,627,408 |
|||||||
Total assets | $ |
79,453,900 |
$ |
76,838,106 |
$ |
73,130,851 |
||||
Liabilities and Stockholders' Equity: | ||||||||||
Deposits: | ||||||||||
Demand | $ |
10,744,524 |
$ |
9,996,274 |
$ |
11,410,063 |
||||
Health savings accounts |
8,951,383 |
8,474,857 |
8,229,889 |
|||||||
Interest-bearing checking |
10,016,651 |
9,509,202 |
8,826,265 |
|||||||
Money market |
20,460,382 |
19,559,083 |
17,755,198 |
|||||||
Savings |
6,921,459 |
6,965,774 |
6,622,833 |
|||||||
Certificates of deposit |
6,020,031 |
5,861,431 |
5,150,139 |
|||||||
Brokered certificates of deposit |
1,400,000 |
1,910,071 |
2,337,380 |
|||||||
Total deposits |
64,514,430 |
62,276,692 |
60,331,767 |
|||||||
Securities sold under agreements to repurchase and other borrowings |
100,232 |
239,524 |
157,491 |
|||||||
|
3,110,205 |
2,809,843 |
1,810,218 |
|||||||
Long-term debt |
910,963 |
912,743 |
1,050,539 |
|||||||
Accrued expenses and other liabilities |
1,620,020 |
1,790,036 |
1,581,635 |
|||||||
Total liabilities |
70,255,850 |
68,028,838 |
64,931,650 |
|||||||
Preferred stock |
283,979 |
283,979 |
283,979 |
|||||||
Common stockholders' equity |
8,914,071 |
8,525,289 |
7,915,222 |
|||||||
Total stockholders’ equity |
9,198,050 |
8,809,268 |
8,199,201 |
|||||||
Total liabilities and stockholders' equity | $ |
79,453,900 |
$ |
76,838,106 |
$ |
73,130,851 |
||||
Consolidated Statements of Income (unaudited) |
||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||
(In thousands, except per share data) |
2024 |
2023 |
2024 |
2023 |
||||||||||
Interest income: | ||||||||||||||
Interest and fees on loans and leases | $ |
809,184 |
$ |
793,626 |
$ |
2,399,326 |
$ |
2,281,955 |
||||||
Interest on investment securities |
176,722 |
113,395 |
485,134 |
321,964 |
||||||||||
Loans held for sale |
5,400 |
17 |
11,075 |
454 |
||||||||||
Other interest and dividends |
12,757 |
23,751 |
36,664 |
90,740 |
||||||||||
Total interest income |
1,004,063 |
930,789 |
2,932,199 |
2,695,113 |
||||||||||
Interest expense: | ||||||||||||||
Deposits |
371,075 |
293,955 |
1,068,309 |
695,625 |
||||||||||
Borrowings |
43,105 |
49,698 |
133,971 |
233,240 |
||||||||||
Total interest expense |
414,180 |
343,653 |
1,202,280 |
928,865 |
||||||||||
Net interest income |
589,883 |
587,136 |
1,729,919 |
1,766,248 |
||||||||||
Provision for credit losses |
54,000 |
36,500 |
158,500 |
114,747 |
||||||||||
Net interest income after provision for loan and lease losses |
535,883 |
550,636 |
1,571,419 |
1,651,501 |
||||||||||
Non-interest income: | ||||||||||||||
Deposit service fees |
38,863 |
41,005 |
122,479 |
131,859 |
||||||||||
Loan and lease related fees |
18,513 |
19,966 |
57,614 |
63,499 |
||||||||||
Wealth and investment services |
8,367 |
7,254 |
24,847 |
21,232 |
||||||||||
Cash surrender value of life insurance policies |
8,020 |
6,620 |
20,325 |
19,641 |
||||||||||
(Loss) on sale of investment securities, net |
(19,597) |
- |
(79,338) |
(16,795) |
||||||||||
Other income |
3,575 |
15,537 |
53,465 |
31,086 |
||||||||||
Total non-interest income |
57,741 |
90,382 |
199,392 |
250,522 |
||||||||||
Non-interest expense: | ||||||||||||||
Compensation and benefits |
194,736 |
180,333 |
570,126 |
526,838 |
||||||||||
Occupancy |
18,879 |
18,617 |
53,421 |
59,042 |
||||||||||
Technology and equipment |
56,696 |
55,261 |
147,835 |
151,442 |
||||||||||
Marketing |
4,224 |
4,810 |
12,612 |
13,446 |
||||||||||
Professional and outside services |
16,001 |
26,874 |
43,048 |
88,693 |
||||||||||
Intangible assets amortization |
8,491 |
8,899 |
26,401 |
27,589 |
||||||||||
Deposit insurance |
13,555 |
13,310 |
52,843 |
39,356 |
||||||||||
Other expenses |
36,376 |
54,474 |
104,616 |
132,728 |
||||||||||
Total non-interest expense |
348,958 |
362,578 |
1,010,902 |
1,039,134 |
||||||||||
Income before income taxes |
244,666 |
278,440 |
759,909 |
862,889 |
||||||||||
Income tax expense |
51,681 |
51,965 |
168,968 |
180,442 |
||||||||||
Net income |
192,985 |
226,475 |
590,941 |
682,447 |
||||||||||
Preferred stock dividends |
(4,162) |
(4,162) |
(12,487) |
(12,487) |
||||||||||
Net income available to common stockholders | $ |
188,823 |
$ |
222,313 |
$ |
578,454 |
$ |
669,960 |
||||||
Weighted-average common shares outstanding - Diluted |
169,894 |
171,350 |
170,226 |
172,326 |
||||||||||
Earnings per common share: | ||||||||||||||
Basic | $ |
1.10 |
$ |
1.29 |
$ |
3.37 |
$ |
3.85 |
||||||
Diluted |
1.10 |
1.28 |
3.36 |
3.85 |
Five Quarter Consolidated Statements of Income (unaudited) |
||||||||||||||||||
Three Months Ended | ||||||||||||||||||
(In thousands, except per share data) |
2024 |
2024 |
2024 |
2023 |
2023 |
|||||||||||||
Interest income: | ||||||||||||||||||
Interest and fees on loans and leases | $ |
809,184 |
$ |
798,097 |
$ |
792,045 |
$ |
789,423 |
$ |
793,626 |
||||||||
Interest on investment securities |
176,722 |
160,827 |
147,585 |
128,924 |
113,395 |
|||||||||||||
Loans held for sale |
5,400 |
5593 |
82 |
280 |
17 |
|||||||||||||
Other interest and dividends |
12,757 |
11,769 |
12,138 |
14,520 |
23,751 |
|||||||||||||
Total interest income |
1,004,063 |
976,286 |
951,850 |
933,147 |
930,789 |
|||||||||||||
Interest expense: | ||||||||||||||||||
Deposits |
371,075 |
361,263 |
335,971 |
325,793 |
293,955 |
|||||||||||||
Borrowings |
43,105 |
42,726 |
48,140 |
36,333 |
49,698 |
|||||||||||||
Total interest expense |
414,180 |
403,989 |
384,111 |
362,126 |
343,653 |
|||||||||||||
Net interest income |
589,883 |
572,297 |
567,739 |
571,021 |
587,136 |
|||||||||||||
Provision for credit losses |
54,000 |
59,000 |
45,500 |
36,000 |
36,500 |
|||||||||||||
Net interest income after provision for loan and lease losses |
535,883 |
513,297 |
522,239 |
535,021 |
550,636 |
|||||||||||||
Non-interest income: | ||||||||||||||||||
Deposit service fees |
38,863 |
41,027 |
42,589 |
37,459 |
41,005 |
|||||||||||||
Loan and lease related fees |
18,513 |
19,334 |
19,767 |
21,362 |
19,966 |
|||||||||||||
Wealth and investment services |
8,367 |
8,556 |
7,924 |
7,767 |
7,254 |
|||||||||||||
Cash surrender value of life insurance policies |
8,020 |
6,359 |
5,946 |
6,587 |
6,620 |
|||||||||||||
(Loss) on sale of investment securities, net |
(19,597) |
(49,915) |
(9,826) |
(16,825) |
- |
|||||||||||||
Other income |
3,575 |
16,937 |
32,953 |
7,465 |
15,537 |
|||||||||||||
Total non-interest income |
57,741 |
42,298 |
99,353 |
63,815 |
90,382 |
|||||||||||||
Non-interest expense: | ||||||||||||||||||
Compensation and benefits |
194,736 |
186,850 |
188,540 |
184,914 |
180,333 |
|||||||||||||
Occupancy |
18,879 |
15,103 |
19,439 |
18,478 |
18,617 |
|||||||||||||
Technology and equipment |
56,696 |
45,303 |
45,836 |
46,486 |
55,261 |
|||||||||||||
Marketing |
4,224 |
4,107 |
4,281 |
5,176 |
4,810 |
|||||||||||||
Professional and outside services |
16,001 |
14,066 |
12,981 |
18,804 |
26,874 |
|||||||||||||
Intangible assets amortization |
8,491 |
8,716 |
9,194 |
8,618 |
8,899 |
|||||||||||||
Deposit insurance |
13,555 |
15,065 |
24,223 |
58,725 |
13,310 |
|||||||||||||
Other expenses |
36,376 |
36,811 |
31,429 |
36,020 |
54,474 |
|||||||||||||
Total non-interest expense |
348,958 |
326,021 |
335,923 |
377,221 |
362,578 |
|||||||||||||
Income before income taxes |
244,666 |
229,574 |
285,669 |
221,615 |
278,440 |
|||||||||||||
Income tax expense |
51,681 |
47,941 |
69,346 |
36,222 |
51,965 |
|||||||||||||
Net income |
192,985 |
181,633 |
216,323 |
185,393 |
226,475 |
|||||||||||||
Preferred stock dividends |
(4,162) |
(4,162) |
(4,163) |
(4,163) |
(4,162) |
|||||||||||||
Net income available to common stockholders | $ |
188,823 |
$ |
177,471 |
$ |
212,160 |
$ |
181,230 |
$ |
222,313 |
||||||||
Weighted-average common shares outstanding - Diluted |
169,894 |
169,937 |
170,704 |
170,623 |
171,350 |
|||||||||||||
Earnings per common share: | ||||||||||||||||||
Basic | $ |
1.10 |
$ |
1.03 |
$ |
1.23 |
$ |
1.05 |
$ |
1.29 |
||||||||
Diluted |
1.10 |
1.03 |
1.23 |
1.05 |
1.28 |
Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited) |
|||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||
2024 |
2023 |
||||||||||||||||||||
(Dollars in thousands) | Average balance | Interest | Yield/rate | Average balance | Interest | Yield/rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans and leases | $ |
51,752,193 |
$ |
820,209 |
6.22 |
% |
$ |
50,912,188 |
$ |
804,930 |
6.20 |
% |
|||||||||
Investment securities (1) |
16,886,464 |
179,356 |
4.10 |
14,686,798 |
119,997 |
3.09 |
|||||||||||||||
|
340,330 |
4,383 |
5.12 |
355,495 |
7,619 |
8.50 |
|||||||||||||||
Interest-bearing deposits |
629,180 |
8,374 |
5.21 |
1,187,096 |
16,132 |
5.32 |
|||||||||||||||
Loans held for sale |
216,735 |
5,400 |
9.97 |
6,756 |
17 |
1.03 |
|||||||||||||||
Total interest-earning assets |
69,824,902 |
$ |
1,017,722 |
5.69 |
% |
67,148,333 |
$ |
948,695 |
5.49 |
% |
|||||||||||
Non-interest-earning assets |
6,980,399 |
6,459,493 |
|||||||||||||||||||
Total assets | $ |
76,805,301 |
$ |
73,607,826 |
|||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ |
10,243,045 |
$ |
- |
- |
% |
$ |
11,335,734 |
$ |
- |
- |
% |
|||||||||
Health savings accounts |
8,546,941 |
3,257 |
0.15 |
8,235,632 |
3,126 |
0.15 |
|||||||||||||||
Interest-bearing checking, money market and savings |
36,599,576 |
286,280 |
3.11 |
32,673,899 |
214,891 |
2.61 |
|||||||||||||||
Certificates of deposit and brokered deposits |
7,190,093 |
81,538 |
4.51 |
7,342,757 |
75,938 |
4.10 |
|||||||||||||||
Total deposits |
62,579,655 |
371,075 |
2.36 |
59,588,022 |
293,955 |
1.96 |
|||||||||||||||
Securities sold under agreements to repurchase and other borrowings |
125,738 |
38 |
0.12 |
170,256 |
50 |
0.12 |
|||||||||||||||
|
2,535,497 |
35,172 |
5.43 |
2,945,136 |
40,196 |
5.34 |
|||||||||||||||
Long-term debt (1) |
911,834 |
7,895 |
3.56 |
1,051,380 |
9,452 |
3.70 |
|||||||||||||||
Total borrowings |
3,573,069 |
43,105 |
4.77 |
4,166,772 |
49,698 |
4.72 |
|||||||||||||||
Total interest-bearing liabilities |
66,152,724 |
$ |
414,180 |
2.49 |
% |
63,754,794 |
$ |
343,653 |
2.14 |
% |
|||||||||||
Non-interest-bearing liabilities |
1,657,443 |
1,482,563 |
|||||||||||||||||||
Total liabilities |
67,810,167 |
65,237,357 |
|||||||||||||||||||
Preferred stock |
283,979 |
283,979 |
|||||||||||||||||||
Common stockholders' equity |
8,711,155 |
8,086,490 |
|||||||||||||||||||
Total stockholders' equity |
8,995,134 |
8,370,469 |
|||||||||||||||||||
Total liabilities and stockholders' equity | $ |
76,805,301 |
$ |
73,607,826 |
|||||||||||||||||
Tax-equivalent net interest income |
603,542 |
605,042 |
|||||||||||||||||||
Less: Tax-equivalent adjustments |
(13,659) |
(17,906) |
|||||||||||||||||||
Net interest income | $ |
589,883 |
$ |
587,136 |
|||||||||||||||||
Net interest margin |
3.36 |
% |
3.49 |
% |
|||||||||||||||||
(1) For the purposes of average yield/rate and margin computations, unsettled trades on investment securities, unrealized gains (losses) on available-for-sale investment securities, and basis adjustments on long-term debt from de-designated fair value hedges are excluded. | |||||||||||||||||||||
Consolidated Average Balances, Interest, Yields and Rates, and Net Interest Margin on a Fully Tax-equivalent Basis (unaudited) |
|||||||||||||||||||||
Nine Months Ended |
|||||||||||||||||||||
2024 |
2023 |
||||||||||||||||||||
(Dollars in thousands) | Average balance | Interest | Yield/rate | Average balance | Interest | Yield/rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans and leases | $ |
51,376,513 |
$ |
2,430,382 |
6.23 |
% |
$ |
50,733,691 |
$ |
2,313,030 |
6.02 |
% |
|||||||||
Investment securities (1) |
16,505,404 |
497,931 |
3.87 |
14,700,296 |
341,998 |
2.95 |
|||||||||||||||
Federal Home Loan and |
340,222 |
13,901 |
5.46 |
442,429 |
19,204 |
5.80 |
|||||||||||||||
Interest-bearing deposits |
563,217 |
22,763 |
5.31 |
1,872,657 |
71,536 |
5.04 |
|||||||||||||||
Loans held for sale |
150,985 |
11,075 |
9.78 |
35,982 |
454 |
1.68 |
|||||||||||||||
Total interest-earning assets |
68,936,341 |
$ |
2,976,052 |
5.65 |
% |
67,785,055 |
$ |
2,746,222 |
5.30 |
% |
|||||||||||
Non-interest-earning assets |
7,091,307 |
6,271,968 |
|||||||||||||||||||
Total assets | $ |
76,027,648 |
$ |
74,057,023 |
|||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ |
10,327,076 |
$ |
- |
- |
% |
$ |
11,775,500 |
$ |
- |
- |
% |
|||||||||
Health savings accounts |
8,560,303 |
9,654 |
0.15 |
8,259,408 |
9,243 |
0.15 |
|||||||||||||||
Interest-bearing checking, money market and savings |
35,227,682 |
799,939 |
3.03 |
31,442,258 |
516,646 |
2.20 |
|||||||||||||||
Certificates of deposit and brokered deposits |
7,508,481 |
258,716 |
4.60 |
6,192,415 |
169,736 |
3.66 |
|||||||||||||||
Total deposits |
61,623,542 |
1,068,309 |
2.32 |
57,669,581 |
695,625 |
1.61 |
|||||||||||||||
Securities sold under agreements to repurchase and other borrowings |
198,029 |
3,260 |
2.16 |
430,989 |
7,940 |
2.43 |
|||||||||||||||
Federal Home Loan Bank advances |
2,551,535 |
106,266 |
5.47 |
5,104,372 |
196,878 |
5.09 |
|||||||||||||||
Long-term debt (1) |
935,370 |
24,445 |
3.58 |
1,061,643 |
28,422 |
3.68 |
|||||||||||||||
Total borrowings |
3,684,934 |
133,971 |
4.82 |
6,597,004 |
233,240 |
4.69 |
|||||||||||||||
Total interest-bearing liabilities |
65,308,476 |
$ |
1,202,280 |
2.46 |
% |
64,266,585 |
$ |
928,865 |
1.93 |
% |
|||||||||||
Non-interest-bearing liabilities |
1,888,947 |
1,462,723 |
|||||||||||||||||||
Total liabilities |
67,197,423 |
65,729,308 |
|||||||||||||||||||
Preferred stock |
283,979 |
283,979 |
|||||||||||||||||||
Common stockholders' equity |
8,546,246 |
8,043,736 |
|||||||||||||||||||
Total stockholders' equity |
8,830,225 |
8,327,715 |
|||||||||||||||||||
Total liabilities and stockholders' equity | $ |
76,027,648 |
$ |
74,057,023 |
|||||||||||||||||
Tax-equivalent net interest income |
1,773,772 |
1,817,357 |
|||||||||||||||||||
Less: Tax-equivalent adjustments |
(43,853) |
(51,109) |
|||||||||||||||||||
Net interest income | $ |
1,729,919 |
$ |
1,766,248 |
|||||||||||||||||
Net interest margin |
3.34 |
% |
3.49 |
% |
|||||||||||||||||
(1) For the purposes of average yield/rate and margin computations, unsettled trades on investment securities, unrealized gains (losses) on available-for-sale investment securities, and basis adjustments on long-term debt from de-designated fair value hedges are excluded. |
Five Quarter Loans and Leases (unaudited) |
|||||||||||||||||||
(Dollars in thousands) |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||
Loans and leases (actual): | |||||||||||||||||||
Commercial non-mortgage | $ |
18,657,089 |
|
$ |
18,021,758 |
|
$ |
17,976,128 |
|
$ |
18,214,261 |
|
$ |
18,058,524 |
|
||||
Asset-based lending |
1,463,903 |
|
1,470,675 |
|
1,492,886 |
|
1,557,841 |
|
1,632,962 |
|
|||||||||
Commercial real estate |
21,691,377 |
|
22,277,813 |
|
21,869,502 |
|
21,157,732 |
|
20,583,254 |
|
|||||||||
Residential mortgages |
8,576,612 |
|
8,284,297 |
|
8,226,154 |
|
8,227,923 |
|
8,228,451 |
|
|||||||||
Consumer |
1,558,034 |
|
1,518,922 |
|
1,533,972 |
|
1,568,295 |
|
1,584,955 |
|
|||||||||
Total loans and leases |
51,947,015 |
|
51,573,465 |
|
51,098,642 |
|
50,726,052 |
|
50,088,146 |
|
|||||||||
Allowance for credit losses on loans and leases |
(687,798) |
(669,355) |
(641,442) |
(635,737) |
(635,438) |
||||||||||||||
Total loans and leases, net | $ |
51,259,217 |
|
$ |
50,904,110 |
|
$ |
50,457,200 |
|
$ |
50,090,315 |
|
$ |
49,452,708 |
|
||||
Loans and leases (average): | |||||||||||||||||||
Commercial non-mortgage | $ |
18,166,258 |
|
$ |
17,995,654 |
|
$ |
18,235,402 |
|
$ |
18,181,417 |
|
$ |
18,839,776 |
|
||||
Asset-based lending |
1,452,794 |
|
1,473,175 |
|
1,523,616 |
|
1,588,350 |
|
1,663,481 |
|
|||||||||
Commercial real estate |
22,215,293 |
|
22,186,566 |
|
21,403,765 |
|
20,764,834 |
|
20,614,334 |
|
|||||||||
Residential mortgages |
8,390,613 |
|
8,252,397 |
|
8,225,151 |
|
8,240,390 |
|
8,200,938 |
|
|||||||||
Consumer |
1,527,235 |
|
1,527,007 |
|
1,550,484 |
|
1,577,349 |
|
1,593,659 |
|
|||||||||
Total loans and leases | $ |
51,752,193 |
|
$ |
51,434,799 |
|
$ |
50,938,418 |
|
$ |
50,352,340 |
|
$ |
50,912,188 |
|
||||
|
|||||||||||||||||||
Five Quarter Nonperforming Assets and Past Due Loans and Leases (unaudited) |
|||||||||||||||||||
(Dollars in thousands) |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||
Nonperforming loans and leases: | |||||||||||||||||||
Commercial non-mortgage | $ |
215,834 |
|
$ |
210,906 |
|
$ |
203,626 |
|
$ |
134,617 |
|
$ |
121,067 |
|
||||
Asset-based lending |
29,791 |
|
29,791 |
|
34,915 |
|
35,090 |
|
10,350 |
|
|||||||||
Commercial real estate |
150,711 |
|
96,337 |
|
14,323 |
|
11,314 |
|
31,004 |
|
|||||||||
Residential mortgages |
9,098 |
|
11,345 |
|
8,407 |
|
5,591 |
|
27,312 |
|
|||||||||
Consumer |
20,183 |
|
20,457 |
|
22,341 |
|
22,932 |
|
25,320 |
|
|||||||||
Total nonperforming loans and leases | $ |
425,617 |
|
$ |
368,836 |
|
$ |
283,612 |
|
$ |
209,544 |
|
$ |
215,053 |
|
||||
Other real estate owned and repossessed assets: | |||||||||||||||||||
Commercial non-mortgage | $ |
504 |
|
$ |
5,013 |
|
$ |
5,540 |
|
$ |
8,954 |
|
$ |
2,687 |
|
||||
Residential mortgages |
221 |
|
- |
|
- |
|
- |
|
662 |
|
|||||||||
Consumer |
932 |
|
1,035 |
|
102 |
|
102 |
|
- |
|
|||||||||
Total other real estate owned and repossessed assets | $ |
1,657 |
|
$ |
6,048 |
|
$ |
5,642 |
|
$ |
9,056 |
|
$ |
3,349 |
|
||||
Total nonperforming assets | $ |
427,274 |
|
$ |
374,884 |
|
$ |
289,254 |
|
$ |
218,600 |
|
$ |
218,402 |
|
||||
Past due 30-89 days: | |||||||||||||||||||
Commercial non-mortgage | $ |
45,123 |
|
$ |
134,794 |
|
$ |
15,365 |
|
$ |
7,071 |
|
$ |
38,875 |
|
||||
Commercial real estate |
36,110 |
|
10,284 |
|
72,999 |
|
9,002 |
|
3,491 |
|
|||||||||
Residential mortgages |
18,153 |
|
13,008 |
|
17,580 |
|
21,047 |
|
16,208 |
|
|||||||||
Consumer |
9,471 |
|
8,185 |
|
6,824 |
|
9,417 |
|
12,016 |
|
|||||||||
Total past due 30-89 days | $ |
108,857 |
|
$ |
166,271 |
|
$ |
112,768 |
|
$ |
46,537 |
|
$ |
70,590 |
|
||||
Past due 90 days or more and accruing |
71 |
|
9 |
|
12,460 |
|
52 |
|
138 |
|
|||||||||
Total past due loans and leases | $ |
108,928 |
|
$ |
166,280 |
|
$ |
125,228 |
|
$ |
46,589 |
|
$ |
70,728 |
|
||||
|
|||||||||||||||||||
Five Quarter Changes in the Allowance for Credit Losses on Loans and Leases (unaudited) |
|||||||||||||||||||
Three Months Ended | |||||||||||||||||||
(Dollars in thousands) |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||
ACL on loans and leases, beginning balance | $ |
669,355 |
|
$ |
641,442 |
|
$ |
635,737 |
|
$ |
635,438 |
|
$ |
628,911 |
|
||||
Provision |
53,869 |
|
61,041 |
|
43,194 |
|
34,300 |
|
35,839 |
|
|||||||||
Charge-offs: | |||||||||||||||||||
Commercial portfolio |
36,362 |
|
33,356 |
|
38,461 |
|
28,794 |
|
27,360 |
|
|||||||||
Consumer portfolio |
997 |
|
1,418 |
|
1,330 |
|
6,878 |
|
3,642 |
|
|||||||||
Total charge-offs |
37,359 |
|
34,774 |
|
39,791 |
|
35,672 |
|
31,002 |
|
|||||||||
Recoveries: | |||||||||||||||||||
Commercial portfolio |
377 |
|
360 |
|
553 |
|
396 |
|
292 |
|
|||||||||
Consumer portfolio |
1,556 |
|
1,286 |
|
1,749 |
|
1,275 |
|
1,398 |
|
|||||||||
Total recoveries |
1,933 |
|
1,646 |
|
2,302 |
|
1,671 |
|
1,690 |
|
|||||||||
Total net charge-offs |
35,426 |
|
33,128 |
|
37,489 |
|
34,001 |
|
29,312 |
|
|||||||||
ACL on loans and leases, ending balance | $ |
687,798 |
|
$ |
669,355 |
|
$ |
641,442 |
|
$ |
635,737 |
|
$ |
635,438 |
|
||||
ACL on unfunded loan commitments, ending balance |
22,598 |
|
22,456 |
|
24,495 |
|
24,734 |
|
23,040 |
|
|||||||||
ACL, ending balance | $ |
710,396 |
|
$ |
691,811 |
|
$ |
665,937 |
|
$ |
660,471 |
|
$ |
658,478 |
|
||||
|
|||||||||||||||||||
Non-GAAP to GAAP Reconciliations |
|||||||||||||||||||
Three Months Ended | |||||||||||||||||||
(In thousands, except per share data) |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||
Efficiency ratio: | |||||||||||||||||||
Non-interest expense | $ |
348,958 |
|
$ |
326,021 |
|
$ |
335,923 |
|
$ |
377,221 |
|
$ |
362,578 |
|
||||
Less: Foreclosed property activity |
(687) |
(364) |
(330) |
(96) |
(492) |
||||||||||||||
Intangible assets amortization |
8,491 |
|
8,716 |
|
9,194 |
|
8,618 |
|
8,899 |
|
|||||||||
Operating lease depreciation |
197 |
|
560 |
|
663 |
|
900 |
|
1,146 |
|
|||||||||
|
(1,544) |
- |
|
11,862 |
|
47,164 |
|
- |
|
||||||||||
Merger related expenses (1) |
- |
|
- |
|
3,139 |
|
30,679 |
|
61,625 |
|
|||||||||
Strategic restructuring costs and other |
22,169 |
|
- |
|
- |
|
- |
|
- |
|
|||||||||
Adjusted non-interest expense | $ |
320,332 |
|
$ |
317,109 |
|
$ |
311,395 |
|
$ |
289,956 |
|
$ |
291,400 |
|
||||
Net interest income | $ |
589,883 |
|
$ |
572,297 |
|
$ |
567,739 |
|
$ |
571,021 |
|
$ |
587,136 |
|
||||
Add: Tax-equivalent adjustment |
13,659 |
|
14,315 |
|
15,879 |
|
17,830 |
|
17,906 |
|
|||||||||
Non-interest income |
57,741 |
|
42,298 |
|
99,353 |
|
63,815 |
|
90,382 |
|
|||||||||
Other income (2) |
7,448 |
|
7,802 |
|
7,626 |
|
5,099 |
|
3,614 |
|
|||||||||
Less: Operating lease depreciation |
197 |
|
560 |
|
663 |
|
900 |
|
1,146 |
|
|||||||||
(Loss) on sale of investment securities, net |
(19,597) |
(49,915) |
(9,826) |
(16,825) |
- |
|
|||||||||||||
Exit of non-core operations |
(15,977) |
- |
|
- |
|
- |
|
- |
|
||||||||||
Net gain on sale of mortgage servicing rights |
- |
|
- |
|
11,655 |
|
- |
|
- |
|
|||||||||
Adjusted income | $ |
704,108 |
|
$ |
686,067 |
|
$ |
688,105 |
|
$ |
673,690 |
|
$ |
697,892 |
|
||||
Efficiency ratio |
45.49 |
% |
46.22 |
% |
45.25 |
% |
43.04 |
% |
41.75 |
% |
|||||||||
ROATCE: | |||||||||||||||||||
Net income | $ |
192,985 |
|
$ |
181,633 |
|
$ |
216,323 |
|
$ |
185,393 |
|
$ |
226,475 |
|
||||
Less: Preferred stock dividends |
4,162 |
|
4,162 |
|
4,163 |
|
4,163 |
|
4,162 |
|
|||||||||
Add: Intangible assets amortization, tax-effected |
6,708 |
|
6,886 |
|
7,263 |
|
6,808 |
|
7,030 |
|
|||||||||
Adjusted net income | $ |
195,531 |
|
$ |
184,357 |
|
$ |
219,423 |
|
$ |
188,038 |
|
$ |
229,343 |
|
||||
Adjusted net income, annualized basis | $ |
782,124 |
|
$ |
737,428 |
|
$ |
877,692 |
|
$ |
752,152 |
|
$ |
917,372 |
|
||||
Average stockholders' equity | $ |
8,995,134 |
|
$ |
8,733,737 |
|
$ |
8,759,992 |
|
$ |
8,312,798 |
|
$ |
8,370,469 |
|
||||
Less: Average preferred stock |
283,979 |
|
283,979 |
|
283,979 |
|
283,979 |
|
283,979 |
|
|||||||||
Average goodwill and other intangible assets, net |
3,238,115 |
|
3,246,940 |
|
3,090,751 |
|
2,838,770 |
|
2,847,560 |
|
|||||||||
Average tangible common stockholders' equity | $ |
5,473,040 |
|
$ |
5,202,818 |
|
$ |
5,385,262 |
|
$ |
5,190,049 |
|
$ |
5,238,930 |
|
||||
Return on average tangible common stockholders' equity |
14.29 |
% |
14.17 |
% |
16.30 |
% |
14.49 |
% |
17.51 |
% |
|||||||||
(1) Merger related expenses include Ametros acquisition expenses for the three months ended March 31, 2024. 2023 periods primarily include charges related to the merger with Sterling. | |||||||||||||||||||
(2) Other income includes the taxable-equivalent of net income generated from low income housing tax-credit investments. | |||||||||||||||||||
|
|||||||||||||||||||
(In thousands, except per share data) |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
||||||||||||||
Tangible equity: | |||||||||||||||||||
Stockholders' equity | $ |
9,198,050 |
|
$ |
8,809,268 |
|
$ |
8,747,498 |
|
$ |
8,689,996 |
|
$ |
8,199,201 |
|
||||
Less: |
3,212,050 |
|
3,242,193 |
|
3,250,909 |
|
2,834,600 |
|
2,843,217 |
|
|||||||||
Tangible stockholders' equity | $ |
5,986,000 |
|
$ |
5,567,075 |
|
$ |
5,496,589 |
|
$ |
5,855,396 |
|
$ |
5,355,984 |
|
||||
Total assets | $ |
79,453,900 |
|
$ |
76,838,106 |
|
$ |
76,161,693 |
|
$ |
74,945,249 |
|
$ |
73,130,851 |
|
||||
Less: |
3,212,050 |
|
3,242,193 |
|
3,250,909 |
|
2,834,600 |
|
2,843,217 |
|
|||||||||
Tangible assets | $ |
76,241,850 |
|
$ |
73,595,913 |
|
$ |
72,910,784 |
|
$ |
72,110,649 |
|
$ |
70,287,634 |
|
||||
Tangible equity |
7.85 |
% |
7.56 |
% |
7.54 |
% |
8.12 |
% |
7.62 |
% |
|||||||||
Tangible common equity: | |||||||||||||||||||
Tangible stockholders' equity | $ |
5,986,000 |
|
$ |
5,567,075 |
|
$ |
5,496,589 |
|
$ |
5,855,396 |
|
$ |
5,355,984 |
|
||||
Less: Preferred stock |
283,979 |
|
283,979 |
|
283,979 |
|
283,979 |
|
283,979 |
|
|||||||||
Tangible common stockholders' equity | $ |
5,702,021 |
|
$ |
5,283,096 |
|
$ |
5,212,610 |
|
$ |
5,571,417 |
|
$ |
5,072,005 |
|
||||
Tangible assets | $ |
76,241,850 |
|
$ |
73,595,913 |
|
$ |
72,910,784 |
|
$ |
72,110,649 |
|
$ |
70,287,634 |
|
||||
Tangible common equity |
7.48 |
% |
7.18 |
% |
|
7.15 |
% |
7.73 |
% |
7.22 |
% |
||||||||
Tangible book value per common share: | |||||||||||||||||||
Tangible common stockholders' equity | $ |
5,702,021 |
|
$ |
5,283,096 |
|
$ |
5,212,610 |
|
$ |
5,571,417 |
|
$ |
5,072,005 |
|
||||
Common shares outstanding |
171,428 |
|
171,402 |
|
172,464 |
|
172,022 |
|
172,056 |
|
|||||||||
Tangible book value per common share | $ |
33.26 |
|
$ |
30.82 |
|
$ |
30.22 |
|
$ |
32.39 |
|
$ |
29.48 |
|
||||
Core deposits: | |||||||||||||||||||
Total deposits | $ |
64,514,430 |
|
$ |
62,276,692 |
|
$ |
60,747,743 |
|
$ |
60,784,284 |
|
$ |
60,331,767 |
|
||||
Less: Certificates of deposit |
6,020,031 |
|
5,861,431 |
|
5,928,773 |
|
5,574,048 |
|
5,150,139 |
|
|||||||||
Brokered certificates of deposit |
1,400,000 |
|
1,910,071 |
|
1,008,547 |
|
2,890,411 |
|
2,337,380 |
|
|||||||||
Core deposits | $ |
57,094,399 |
|
$ |
54,505,190 |
|
$ |
53,810,423 |
|
$ |
52,319,825 |
|
$ |
52,844,248 |
|
||||
|
|||||||||||||||||||
Three Months Ended September 30, 2024 |
|||||||||||||||||||
Adjusted ROATCE: | |||||||||||||||||||
Net income | $ |
192,985 |
|
||||||||||||||||
Less: Preferred stock dividends |
4,162 |
|
|||||||||||||||||
Add: Intangible assets amortization, tax-effected |
6,708 |
|
|||||||||||||||||
Loss on sale of investment securities, net, tax-effected |
14,283 |
|
|||||||||||||||||
Exit of non-core operations, tax effected |
11,644 |
|
|||||||||||||||||
Strategic restructuring costs and other, tax-effected |
16,158 |
|
|||||||||||||||||
|
(1,125) |
||||||||||||||||||
Adjusted net income | $ |
236,491 |
|
||||||||||||||||
Adjusted net income, annualized basis | $ |
945,964 |
|
||||||||||||||||
Average stockholders' equity | $ |
8,995,134 |
|
||||||||||||||||
Less: Average preferred stock |
283,979 |
|
|||||||||||||||||
Average goodwill and other intangible assets, net |
3,238,115 |
|
|||||||||||||||||
Average tangible common stockholders' equity | $ |
5,473,040 |
|
||||||||||||||||
Adjusted return on average tangible common stockholders' equity |
17.28 |
% |
|||||||||||||||||
Adjusted ROAA: | |||||||||||||||||||
Net income | $ |
192,985 |
|
||||||||||||||||
Add: Loss on sale of investment securities, net, tax-effected |
14,283 |
|
|||||||||||||||||
Exit of non-core operations, tax-effected |
11,644 |
|
|||||||||||||||||
Strategic restructuring costs and other, tax-effected |
16,158 |
|
|||||||||||||||||
|
(1,125) |
||||||||||||||||||
Adjusted net income | $ |
233,945 |
|
||||||||||||||||
Adjusted net income, annualized basis | $ |
935,780 |
|
||||||||||||||||
Average assets | $ |
76,805,301 |
|
||||||||||||||||
Adjusted return on average assets |
1.22 |
% |
|||||||||||||||||
GAAP to adjusted reconciliation: | |||||||||||||||||||
Three Months Ended September 30, 2024 | |||||||||||||||||||
(In millions, except per share data) | Pre-Tax Income | Net Income Available to Common Stockholders | Diluted EPS | ||||||||||||||||
Reported (GAAP) | $ |
244.7 |
|
$ |
188.8 |
|
$ |
1.10 |
|
||||||||||
Loss on sale of investment securities, net |
19.6 |
|
14.3 |
|
0.08 |
|
|||||||||||||
Exit of non-core operations |
16.0 |
|
11.6 |
|
0.07 |
|
|||||||||||||
Strategic restructuring costs and other |
22.2 |
|
16.2 |
|
0.10 |
|
|||||||||||||
|
(1.5) |
(1.1) |
(0.01) |
||||||||||||||||
Adjusted (non-GAAP) | $ |
300.9 |
|
$ |
229.8 |
|
$ |
1.34 |
|
||||||||||
Note: Totals may not sum due to rounding |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241016084561/en/
Media Contact
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