Cadence Bank Announces Third Quarter 2024 Financial Results
Highlights for the third quarter of 2024 included:
- Reported quarterly net income available to common shareholders of
$134.1 million , or$0.72 per diluted common share, and adjusted net income from continuing operations available to common shareholders,(1) which excludes non-routine income and expenses,(2) of$135.6 million , or$0.73 per diluted common share, which represents an increase of$0.04 per share, or 5.8%, compared to the second quarter of 2024 adjusted net income from continuing operations available to common shareholders.(1) - Achieved quarterly adjusted pre-tax pre-provision net revenue from continuing operations (PPNR)(1) of
$189.9 million , which is flat compared to the second quarter of 2024 and up$44.7 million from the third quarter of 2023. Year-to-date, adjusted PPNR(1) is$555.0 million , up$80.6 million or 17.0%, from the same period in 2023. - Period-end loans were flat for the quarter at
$33.3 billion as higher levels of payoffs and paydowns offset new origination activity. Year-to-date, net loan growth is$807.0 million or 3.3% annualized. - Grew period-end total deposits by
$985.7 million , or 10.4% on an annualized basis. Customer deposits, which exclude brokered deposits and public funds, increased$1.4 billion including approximately$435.0 million in customer overnight sweep activity. Excluding the sweep activity, customer deposits increased approximately$945.0 million in the quarter, or 11.4% annualized. - Continued improvement in net interest margin by 4 basis points to 3.31%, benefiting from improvement in average earning asset mix, stabilized deposit costs and higher loan yields.
- Credit metrics reflected 0.26% in annualized net charge-offs, slightly improved from the linked quarter, and a
$12.0 million provision for credit losses resulting in a 1.38% allowance for credit losses as a percent of loans. - Repurchased 323,395 shares of Company common stock during the third quarter at a weighted average price of
$28.79 per share; regulatory capital remained strong with Common Equity Tier 1 Capital of 12.3% and Total Capital of 14.5%. - Tangible book value per common share(1) increased to
$21.68 per share atSeptember 30, 2024 , up$1.60 per share compared to the second quarter of 2024, while tangible common shareholders' equity to tangible assets(1) increased to 8.28% atSeptember 30, 2024 .
"Our third quarter results reflect another good quarter with strong operating performance, highlighted by favorable deposit trends, improvement in our net interest margin, and continued disciplined expense management," remarked
Earnings Summary
All adjusted financial results discussed herein are adjusted results from continuing operations.(3)
For the third quarter of 2024, the Company reported net income available to common shareholders of
Additionally, the Company reported adjusted PPNR from continuing operations(1) of
Net Interest Revenue
Net interest revenue increased to
Net interest revenue increased
Yield on net loans, loans held for sale and leases, excluding accretion, was 6.61% for the third quarter of 2024, up 5 basis points from 6.56% for the second quarter of 2024. Investment securities yielded 3.04% in the third quarter of 2024, down 15 basis points from 3.19% in the second quarter of 2024 due to both increased fair values of the portfolio as well as maturing higher yielding securities in the quarter. The yield on total interest earning assets increased to 5.92% for the third quarter of 2024, up 2 basis points from 5.90% for the second quarter of 2024.
The average cost of total deposits was relatively stable at 2.55% for the third quarter of 2024, compared to 2.53% for the second quarter of 2024. While there was some mix shift between deposit product types, interest bearing demand and money market as well as savings costs were flat linked quarter and time deposit costs declined slightly. Total interest-bearing liabilities cost was 3.47% for the third quarter of 2024 compared to 3.45% for the second quarter of 2024.
Balance Sheet Activity
Loans and leases, net of unearned income, were flat at
Total deposits were
The
Total investment securities declined
In
Credit Results, Provision for Credit Losses and Allowance for Credit Losses
Net charge-offs for the third quarter of 2024 were $22.2 million, or 0.26% of average net loans and leases on an annualized basis, compared with net charge-offs of
Total nonperforming assets as a percent of total assets were 0.57% at
Noninterest Revenue
Noninterest revenue was
Wealth management revenue was
Mortgage production and servicing revenue totaled
Other noninterest revenue was
Noninterest Expense
Noninterest expense for the third quarter of 2024 was
The
Capital Management
Total shareholders' equity was
Summary
Rollins concluded, "Our results for the third quarter as well as year-to-date 2024 reflect steady improvement in our financial performance through disciplined balance sheet growth and strong core deposit retention, expansion in our net interest margin, stable credit quality, and enhanced operating efficiency. As always, it is rewarding to see all of our teammates' hard work and focus on serving our customers and communities continue to produce positive results."
Key Transactions
Effective
Effective
Conference Call and Webcast
The Company will conduct a conference call to discuss its third quarter 2024 financial results on
About
(1) Considered a non-GAAP financial measure. A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears in Table 14 "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 22 of this news release. |
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(2) See Table 14 for detail on non-routine income and expenses. |
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(3) Given the sale of |
Forward-Looking Statements
Certain statements made in this news release constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the "bespeaks caution" doctrine. These statements are often, but not exclusively, made through the use of words or phrases like "assume," "believe," "budget," "contemplate," "continue," "could," "foresee," "indicate," "may," "might," "outlook," "prospect," "potential," "roadmap," "should," "target," "will," "would," the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures or results of operations as well as the impact of the
Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for
The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.
The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the
Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.
Table 1 Selected Financial Data (Unaudited)
|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
(In thousands) |
|
|
|
|
|
|
|
|
Earnings Summary: |
|
|
|
|
|
|
|
|
Interest revenue |
$ 647,713 |
$ 642,210 |
$ 637,113 |
$ 615,187 |
$ 595,459 |
|
$ 1,927,036 |
|
Interest expense |
286,255 |
285,892 |
283,205 |
280,582 |
266,499 |
|
855,352 |
678,229 |
Net interest revenue |
361,458 |
356,318 |
353,908 |
334,605 |
328,960 |
|
1,071,684 |
1,016,751 |
Provision for credit losses |
12,000 |
22,000 |
22,000 |
38,000 |
17,000 |
|
56,000 |
42,000 |
Net interest revenue, after provision for credit losses |
349,458 |
334,318 |
331,908 |
296,605 |
311,960 |
|
1,015,684 |
974,751 |
Noninterest revenue |
85,901 |
100,658 |
83,786 |
(311,460) |
73,989 |
|
270,345 |
195,116 |
Noninterest expense |
259,438 |
256,697 |
263,207 |
329,367 |
274,442 |
|
779,343 |
826,555 |
Income (loss) from continuing operations before income taxes |
175,921 |
178,279 |
152,487 |
(344,222) |
111,507 |
|
506,686 |
343,312 |
Income tax expense (benefit) |
39,482 |
40,807 |
35,509 |
(80,485) |
24,355 |
|
115,797 |
75,891 |
Income (loss) from continuing operations |
136,439 |
137,472 |
116,978 |
(263,737) |
87,152 |
|
390,889 |
267,421 |
Income from discontinued operations, net of taxes |
— |
— |
— |
522,801 |
5,431 |
|
— |
15,819 |
Net income |
136,439 |
137,472 |
116,978 |
259,064 |
92,583 |
|
390,889 |
283,240 |
Less: Preferred dividends |
2,372 |
2,372 |
2,372 |
2,372 |
2,372 |
|
7,116 |
7,116 |
Net income available to common shareholders |
$ 134,067 |
$ 135,100 |
$ 114,606 |
$ 256,692 |
$ 90,211 |
|
$ 383,773 |
$ 276,124 |
|
|
|
|
|
|
|
|
|
Balance Sheet - Period End Balances |
|
|
|
|
|
|
|
|
Total assets |
$ 49,204,933 |
$ 47,984,078 |
$ 48,313,863 |
$ 48,934,510 |
$ 48,523,010 |
|
$ 49,204,933 |
$ 48,523,010 |
Total earning assets |
44,834,897 |
43,525,688 |
43,968,692 |
44,192,887 |
43,727,058 |
|
44,834,897 |
43,727,058 |
Available for sale securities |
7,841,685 |
7,921,422 |
8,306,589 |
8,075,476 |
9,643,231 |
|
7,841,685 |
9,643,231 |
Loans and leases, net of unearned income |
33,303,972 |
33,312,773 |
32,882,616 |
32,497,022 |
32,520,593 |
|
33,303,972 |
32,520,593 |
Allowance for credit losses (ACL) |
460,859 |
470,022 |
472,575 |
468,034 |
446,859 |
|
460,859 |
446,859 |
Net book value of acquired loans |
5,521,000 |
5,543,419 |
6,011,007 |
6,353,344 |
6,895,487 |
|
5,521,000 |
6,895,487 |
Unamortized net discount on acquired loans |
17,988 |
20,874 |
23,715 |
26,928 |
30,761 |
|
17,988 |
30,761 |
Total deposits |
38,844,360 |
37,858,659 |
38,120,226 |
38,497,137 |
38,344,885 |
|
38,844,360 |
38,344,885 |
Total deposits and repurchase agreements |
38,861,324 |
37,913,693 |
38,214,616 |
38,948,653 |
39,207,474 |
|
38,861,324 |
39,207,474 |
Other short-term borrowings |
3,500,000 |
3,500,000 |
3,500,000 |
3,500,000 |
3,500,223 |
|
3,500,000 |
3,500,223 |
Subordinated and long-term debt |
225,823 |
269,353 |
430,123 |
438,460 |
449,323 |
|
225,823 |
449,323 |
Total shareholders' equity |
5,572,863 |
5,287,758 |
5,189,932 |
5,167,843 |
4,395,257 |
|
5,572,863 |
4,395,257 |
Total shareholders' equity, excluding AOCI (1) |
6,163,205 |
6,070,220 |
5,981,265 |
5,929,672 |
5,705,178 |
|
6,163,205 |
5,705,178 |
Common shareholders' equity |
5,405,870 |
5,120,765 |
5,022,939 |
5,000,850 |
4,228,264 |
|
5,405,870 |
4,228,264 |
Common shareholders' equity, excluding AOCI (1) |
$ 5,996,212 |
$ 5,903,227 |
$ 5,814,272 |
$ 5,762,679 |
$ 5,538,185 |
|
$ 5,996,212 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet - Average Balances |
|
|
|
|
|
|
|
|
Total assets |
$ 47,803,977 |
$ 48,192,719 |
$ 48,642,540 |
$ 48,444,176 |
$ 48,655,138 |
|
$ 48,211,586 |
$ 48,791,497 |
Total earning assets |
43,540,045 |
43,851,822 |
44,226,077 |
43,754,664 |
44,003,639 |
|
43,871,434 |
44,017,508 |
Available for sale securities |
7,915,636 |
8,033,552 |
8,269,708 |
9,300,714 |
10,004,441 |
|
8,072,391 |
10,666,618 |
Loans and leases, net of unearned income |
33,279,819 |
32,945,526 |
32,737,574 |
32,529,030 |
32,311,572 |
|
32,988,706 |
31,706,637 |
Total deposits |
37,634,453 |
38,100,087 |
38,421,272 |
38,215,379 |
38,468,912 |
|
38,050,413 |
38,767,657 |
Total deposits and repurchase agreements |
37,666,828 |
38,165,908 |
38,630,620 |
38,968,397 |
39,295,967 |
|
38,152,672 |
39,544,419 |
Other short-term borrowings |
3,512,218 |
3,500,000 |
3,500,000 |
3,503,320 |
3,510,942 |
|
3,504,102 |
3,460,386 |
Subordinated and long-term debt |
265,790 |
404,231 |
434,579 |
443,251 |
449,568 |
|
367,826 |
455,810 |
Total shareholders' equity |
5,420,826 |
5,207,254 |
5,194,048 |
4,507,343 |
4,505,162 |
|
5,274,579 |
4,480,723 |
Common shareholders' equity |
$ 5,253,833 |
$ 5,040,261 |
$ 5,027,055 |
$ 4,340,350 |
$ 4,338,169 |
|
$ 5,107,586 |
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets: |
|
|
|
|
|
|
|
|
Nonperforming loans and leases (NPL) (2) (3) |
272,954 |
216,746 |
241,007 |
216,141 |
150,038 |
|
272,954 |
150,038 |
Other real estate owned and other assets |
5,354 |
4,793 |
5,280 |
6,246 |
2,927 |
|
5,354 |
2,927 |
Nonperforming assets (NPA) |
$ 278,308 |
$ 221,539 |
$ 246,287 |
$ 222,387 |
$ 152,965 |
|
$ 278,308 |
$ 152,965 |
(1) |
Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 27. |
(2) |
At |
(3) |
At |
Table 2 Selected Financial Ratios |
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|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
|
|
|
|
|
|
|
|
|
Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
Return on average assets from continuing operations (2) |
1.14 % |
1.15 % |
0.97 % |
(2.16) % |
0.71 % |
|
1.08 % |
0.73 % |
Return on average assets (2) |
1.14 |
1.15 |
0.97 |
2.12 |
0.75 |
|
1.08 |
0.78 |
Adjusted return on average assets from continuing operations (1)(2) |
1.15 |
1.09 |
0.97 |
0.62 |
0.82 |
|
1.07 |
0.92 |
Return on average common shareholders' equity from continuing operations (2) |
10.15 |
10.78 |
9.17 |
(24.32) |
7.75 |
|
10.04 |
8.07 |
Return on average common shareholders' equity (2) |
10.15 |
10.78 |
9.17 |
23.46 |
8.25 |
|
10.04 |
8.56 |
Adjusted return on average common shareholders' equity from continuing operations (1)(2) |
10.27 |
10.21 |
9.15 |
6.65 |
8.93 |
|
9.88 |
10.18 |
Return on average tangible common equity from continuing operations (1)(2) |
14.04 |
15.18 |
12.94 |
(36.79) |
11.75 |
|
14.06 |
12.28 |
Return on average tangible common equity (1)(2) |
14.04 |
15.18 |
12.94 |
35.49 |
12.50 |
|
14.06 |
13.03 |
Adjusted return on average tangible common equity from continuing operations (1)(2) |
14.21 |
14.37 |
12.92 |
10.06 |
13.53 |
|
13.84 |
15.50 |
Pre-tax pre-provision net revenue from continuing operation to total average assets (1)(2) |
1.56 |
1.67 |
1.44 |
(2.51) |
1.05 |
|
1.56 |
1.06 |
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (1)(2) |
1.58 |
1.59 |
1.44 |
1.13 |
1.18 |
|
1.54 |
1.30 |
Net interest margin-fully taxable equivalent |
3.31 |
3.27 |
3.22 |
3.04 |
2.98 |
|
3.27 |
3.10 |
Net interest rate spread-fully taxable equivalent |
2.45 |
2.45 |
2.40 |
2.25 |
2.21 |
|
2.43 |
2.37 |
Efficiency ratio fully tax equivalent (1) |
57.90 |
56.09 |
60.05 |
NM |
67.93 |
|
57.99 |
68.03 |
Adjusted efficiency ratio fully tax equivalent (1) |
57.73 |
56.73 |
60.12 |
66.01 |
64.35 |
|
58.18 |
62.48 |
Loan/deposit ratio |
85.74 % |
87.99 % |
86.26 % |
84.41 % |
84.81 % |
|
85.74 % |
84.81 % |
Full time equivalent employees |
5,327 |
5,290 |
5,322 |
5,333 |
6,160 |
|
5,327 |
6,160 |
|
|
|
|
|
|
|
|
|
Credit Quality Ratios: |
|
|
|
|
|
|
|
|
Net charge-offs to average loans and leases (2) |
0.26 % |
0.28 % |
0.24 % |
0.29 % |
0.42 % |
|
0.26 % |
0.20 % |
Provision for credit losses to average loans and leases (2) |
0.14 |
0.27 |
0.27 |
0.46 |
0.21 |
|
0.23 |
0.18 |
ACL to loans and leases, net |
1.38 |
1.41 |
1.44 |
1.44 |
1.37 |
|
1.38 |
1.37 |
ACL to NPL |
168.84 |
216.85 |
196.08 |
216.54 |
297.83 |
|
168.84 |
297.83 |
NPL to loans and leases, net |
0.82 |
0.65 |
0.73 |
0.67 |
0.46 |
|
0.82 |
0.46 |
NPA to total assets |
0.57 |
0.46 |
0.51 |
0.45 |
0.32 |
|
0.57 |
0.32 |
|
|
|
|
|
|
|
|
|
Equity Ratios: |
|
|
|
|
|
|
|
|
Total shareholders' equity to total assets |
11.33 % |
11.02 % |
10.74 % |
10.56 % |
9.06 % |
|
11.33 % |
9.06 % |
Total common shareholders' equity to total assets |
10.99 |
10.67 |
10.40 |
10.22 |
8.71 |
|
10.99 |
8.71 |
Tangible common shareholders' equity to tangible assets (1) |
8.28 |
7.87 |
7.60 |
7.44 |
5.86 |
|
8.28 |
5.86 |
Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI (1) |
9.40 |
9.40 |
9.13 |
8.90 |
8.41 |
|
9.40 |
8.41 |
|
|
|
|
|
|
|
|
|
Capital Adequacy (3): |
|
|
|
|
|
|
|
|
Common Equity Tier 1 capital |
12.3 % |
11.9 % |
11.7 % |
11.6 % |
10.3 % |
|
12.3 % |
10.3 % |
Tier 1 capital |
12.7 |
12.3 |
12.2 |
12.1 |
10.8 |
|
12.7 |
10.8 |
Total capital |
14.5 |
14.2 |
14.5 |
14.3 |
12.9 |
|
14.5 |
12.9 |
Tier 1 leverage capital |
10.1 |
9.7 |
9.5 |
9.3 |
8.6 |
|
10.1 |
8.6 |
|
(1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 27. |
(2) Annualized. |
(3) Current quarter regulatory capital ratios are estimated. |
NM - Not meaningful |
Table 3 Selected Financial Information
|
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|
Quarter Ended |
|
Year-to-date |
|||||
|
|
|
|
|
|
|
|
|
Common Share Data: |
|
|
|
|
|
|
|
|
Diluted earnings (losses) per share from continuing operations |
$ 0.72 |
$ 0.73 |
$ 0.62 |
$ (1.46) |
$ 0.46 |
|
$ 2.07 |
$ 1.41 |
Adjusted earnings per share from continuing operations (1) |
0.73 |
0.69 |
0.62 |
0.40 |
0.53 |
|
2.04 |
1.78 |
Diluted earnings per share |
0.72 |
0.73 |
0.62 |
1.41 |
0.49 |
|
2.07 |
1.50 |
Cash dividends per share |
0.250 |
0.250 |
0.250 |
0.235 |
0.235 |
|
0.750 |
0.705 |
Book value per share |
29.65 |
28.07 |
27.50 |
27.35 |
23.15 |
|
29.65 |
23.15 |
Tangible book value per share (1) |
21.68 |
20.08 |
19.48 |
19.32 |
15.09 |
|
21.68 |
15.09 |
Market value per share (last) |
31.28 |
28.28 |
29.00 |
29.59 |
21.22 |
|
31.28 |
21.22 |
Market value per share (high) |
34.13 |
29.95 |
30.03 |
31.45 |
25.87 |
|
34.13 |
28.18 |
Market value per share (low) |
27.46 |
26.16 |
24.99 |
19.67 |
19.00 |
|
24.99 |
16.95 |
Market value per share (average) |
30.96 |
28.14 |
27.80 |
24.40 |
22.56 |
|
28.98 |
22.41 |
Dividend payout ratio from continuing operations |
34.72 % |
34.25 % |
40.48 % |
(16.13) % |
51.09 % |
|
36.23 % |
50.00 % |
Adjusted dividend payout ratio from continuing operations (1) |
34.25 % |
36.23 % |
40.32 % |
58.75 % |
44.34 % |
|
36.76 % |
39.61 % |
Total shares outstanding |
182,315,142 |
182,430,427 |
182,681,325 |
182,871,775 |
182,611,075 |
|
182,315,142 |
182,611,075 |
Average shares outstanding - diluted |
185,496,110 |
185,260,963 |
185,574,130 |
182,688,190 |
184,645,004 |
|
185,443,201 |
184,062,368 |
|
|
|
|
|
|
|
|
|
Yield/Rate: |
|
|
|
|
|
|
|
|
(Taxable equivalent basis) |
|
|
|
|
|
|
|
|
Loans, loans held for sale, and leases |
6.64 % |
6.59 % |
6.50 % |
6.48 % |
6.39 % |
|
6.58 % |
6.22 % |
Loans, loans held for sale, and leases excluding net accretion on |
6.61 |
6.56 |
6.46 |
6.43 |
6.31 |
|
6.54 |
6.12 |
Available for sale securities: |
|
|
|
|
|
|
|
|
Taxable |
3.03 |
3.18 |
3.11 |
2.45 |
2.07 |
|
3.11 |
1.98 |
Tax-exempt |
3.97 |
4.12 |
4.25 |
3.78 |
3.23 |
|
4.11 |
3.22 |
Other investments |
5.37 |
5.45 |
5.48 |
5.41 |
5.36 |
|
5.44 |
5.02 |
Total interest earning assets and revenue |
5.92 |
5.90 |
5.80 |
5.59 |
5.38 |
|
5.87 |
5.16 |
Deposits |
2.55 |
2.53 |
2.45 |
2.32 |
2.14 |
|
2.51 |
1.76 |
Interest bearing demand and money market |
3.13 |
3.13 |
3.11 |
3.02 |
2.79 |
|
3.13 |
2.43 |
Savings |
0.57 |
0.57 |
0.57 |
0.56 |
0.56 |
|
0.57 |
0.47 |
Time |
4.50 |
4.53 |
4.42 |
4.22 |
3.98 |
|
4.48 |
3.48 |
Total interest bearing deposits |
3.30 |
3.28 |
3.21 |
3.10 |
2.88 |
|
3.26 |
2.46 |
Fed funds purchased, securities sold under agreement to repurchase |
5.10 |
4.47 |
4.86 |
4.33 |
4.27 |
|
4.81 |
3.99 |
Short-term FHLB borrowings |
— |
— |
— |
— |
3.54 |
|
— |
4.91 |
Short-term BTFP borrowings |
4.77 |
4.77 |
4.84 |
5.04 |
5.15 |
|
4.79 |
5.15 |
Total interest bearing deposits and short-term borrowings |
3.46 |
3.44 |
3.39 |
3.33 |
3.16 |
|
3.43 |
2.77 |
Subordinated and long-term borrowings |
4.30 |
4.41 |
4.35 |
4.18 |
4.22 |
|
4.36 |
4.24 |
Total interest bearing liabilities |
3.47 |
3.45 |
3.40 |
3.34 |
3.17 |
|
3.44 |
2.79 |
Interest bearing liabilities to interest earning assets |
75.40 % |
75.97 % |
75.73 % |
76.08 % |
75.74 % |
|
75.70 % |
73.88 % |
Net interest income tax equivalent adjustment (in thousands) |
$ 694 |
$ 644 |
$ 636 |
$ 987 |
$ 1,081 |
|
$ 1,974 |
$ 3,197 |
|
(1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 - 27. |
Table 4 Consolidated Balance Sheets (Unaudited)
|
|||||
|
As of |
||||
(In thousands) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
Cash and due from banks |
$ 504,827 |
$ 516,715 |
$ 427,543 |
$ 798,177 |
$ 594,787 |
Interest bearing deposits with other banks and Federal funds sold |
3,483,299 |
2,093,820 |
2,609,931 |
3,434,088 |
1,400,858 |
Available for sale securities, at fair value |
7,841,685 |
7,921,422 |
8,306,589 |
8,075,476 |
9,643,231 |
Loans and leases, net of unearned income |
33,303,972 |
33,312,773 |
32,882,616 |
32,497,022 |
32,520,593 |
Allowance for credit losses |
460,859 |
470,022 |
472,575 |
468,034 |
446,859 |
Net loans and leases |
32,843,113 |
32,842,751 |
32,410,041 |
32,028,988 |
32,073,734 |
Loans held for sale, at fair value |
205,941 |
197,673 |
169,556 |
186,301 |
162,376 |
Premises and equipment, net |
797,556 |
808,705 |
822,666 |
802,133 |
789,698 |
|
1,366,923 |
1,366,923 |
1,367,785 |
1,367,785 |
1,367,785 |
Other intangible assets, net |
87,094 |
91,027 |
96,126 |
100,191 |
104,596 |
Bank-owned life insurance |
652,057 |
648,970 |
645,167 |
642,840 |
639,073 |
Other assets |
1,422,438 |
1,496,072 |
1,458,459 |
1,498,531 |
1,590,769 |
Assets of discontinued operations |
— |
— |
— |
— |
156,103 |
Total Assets |
$ 49,204,933 |
$ 47,984,078 |
$ 48,313,863 |
$ 48,934,510 |
$ 48,523,010 |
LIABILITIES |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Demand: Noninterest bearing |
$ 9,242,693 |
$ 8,586,265 |
$ 8,820,468 |
$ 9,232,068 |
$ 9,657,198 |
Interest bearing |
18,125,553 |
18,514,015 |
18,945,982 |
19,276,596 |
18,334,551 |
Savings |
2,560,803 |
2,613,950 |
2,694,777 |
2,720,913 |
2,837,348 |
Time deposits |
8,915,311 |
8,144,429 |
7,658,999 |
7,267,560 |
7,515,788 |
Total deposits |
38,844,360 |
37,858,659 |
38,120,226 |
38,497,137 |
38,344,885 |
Securities sold under agreement to repurchase |
16,964 |
55,034 |
94,390 |
451,516 |
862,589 |
Other short-term borrowings |
3,500,000 |
3,500,000 |
3,500,000 |
3,500,000 |
3,500,223 |
Subordinated and long-term debt |
225,823 |
269,353 |
430,123 |
438,460 |
449,323 |
Other liabilities |
1,044,923 |
1,013,274 |
979,192 |
879,554 |
876,195 |
Liabilities of discontinued operations |
— |
— |
— |
— |
94,538 |
Total Liabilities |
43,632,070 |
42,696,320 |
43,123,931 |
43,766,667 |
44,127,753 |
SHAREHOLDERS' EQUITY |
|
|
|
|
|
Preferred stock |
166,993 |
166,993 |
166,993 |
166,993 |
166,993 |
Common stock |
455,788 |
456,076 |
456,703 |
457,179 |
456,528 |
Capital surplus |
2,729,440 |
2,724,656 |
2,724,587 |
2,743,066 |
2,733,003 |
Accumulated other comprehensive loss |
(590,342) |
(782,462) |
(791,333) |
(761,829) |
(1,309,921) |
Retained earnings |
2,810,984 |
2,722,495 |
2,632,982 |
2,562,434 |
2,348,654 |
Total Shareholders' Equity |
5,572,863 |
5,287,758 |
5,189,932 |
5,167,843 |
4,395,257 |
Total Liabilities & Shareholders' Equity |
$ 49,204,933 |
$ 47,984,078 |
$ 48,313,863 |
$ 48,934,510 |
$ 48,523,010 |
Table 5 Consolidated Quarterly Average Balance Sheets (Unaudited)
|
|||||
|
|||||
(In thousands) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
Cash and due from banks |
$ 435,569 |
$ 456,938 |
$ 557,009 |
$ 443,504 |
$ 362,479 |
Interest bearing deposits with other banks and Federal funds sold |
2,210,277 |
2,758,385 |
3,146,439 |
1,811,686 |
1,571,973 |
Available for sale securities, at fair value |
7,915,636 |
8,033,552 |
8,269,708 |
9,300,714 |
10,004,441 |
Loans and leases, net of unearned income |
33,279,819 |
32,945,526 |
32,737,574 |
32,529,030 |
32,311,572 |
Allowance for credit losses |
469,919 |
475,181 |
473,849 |
447,879 |
459,698 |
Net loans and leases |
32,809,900 |
32,470,345 |
32,263,725 |
32,081,151 |
31,851,874 |
Loans held for sale, at fair value |
134,313 |
114,359 |
72,356 |
113,234 |
115,653 |
Premises and equipment, net |
807,353 |
815,920 |
808,473 |
795,164 |
811,095 |
|
1,366,923 |
1,367,358 |
1,367,785 |
1,367,916 |
1,367,785 |
Other intangible assets, net |
89,262 |
93,743 |
98,350 |
102,765 |
107,032 |
Bank-owned life insurance |
650,307 |
646,124 |
643,189 |
640,439 |
636,335 |
Other assets |
1,384,437 |
1,435,995 |
1,415,506 |
1,787,603 |
1,826,471 |
Total Assets |
$ 47,803,977 |
$ 48,192,719 |
$ 48,642,540 |
$ 48,444,176 |
$ 48,655,138 |
LIABILITIES |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Demand: Noninterest bearing |
$ 8,616,534 |
$ 8,757,029 |
$ 9,072,619 |
$ 9,625,912 |
$ 9,924,554 |
Interest bearing |
18,043,686 |
18,770,093 |
19,303,845 |
18,292,826 |
17,970,463 |
Savings |
2,584,761 |
2,652,019 |
2,696,452 |
2,758,977 |
2,913,027 |
Time deposits |
8,389,472 |
7,920,946 |
7,348,356 |
7,537,664 |
7,660,868 |
Total deposits |
37,634,453 |
38,100,087 |
38,421,272 |
38,215,379 |
38,468,912 |
Securities sold under agreement to repurchase |
32,375 |
65,821 |
209,348 |
753,018 |
827,055 |
Other short-term borrowings |
3,512,218 |
3,500,000 |
3,500,000 |
3,503,320 |
3,510,942 |
Subordinated and long-term debt |
265,790 |
404,231 |
434,579 |
443,251 |
449,568 |
Other liabilities |
938,315 |
915,326 |
883,293 |
1,021,865 |
893,499 |
Total Liabilities |
42,383,151 |
42,985,465 |
43,448,492 |
43,936,833 |
44,149,976 |
SHAREHOLDERS' EQUITY |
|
|
|
|
|
Preferred stock |
166,993 |
166,993 |
166,993 |
166,993 |
166,993 |
Common stock |
455,954 |
456,618 |
456,437 |
456,636 |
456,557 |
Capital surplus |
2,725,581 |
2,724,838 |
2,733,902 |
2,733,985 |
2,726,686 |
Accumulated other comprehensive loss |
(703,619) |
(838,710) |
(777,940) |
(1,279,235) |
(1,175,077) |
Retained earnings |
2,775,917 |
2,697,515 |
2,614,656 |
2,428,964 |
2,330,003 |
Total Shareholders' Equity |
5,420,826 |
5,207,254 |
5,194,048 |
4,507,343 |
4,505,162 |
Total Liabilities & Shareholders' Equity |
$ 47,803,977 |
$ 48,192,719 |
$ 48,642,540 |
$ 48,444,176 |
$ 48,655,138 |
Table 6 Consolidated Statements of Income (Unaudited)
|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
INTEREST REVENUE: |
|
|
|
|
|
|
|
|
Loans and leases |
$ 555,862 |
$ 539,685 |
$ 528,940 |
$ 531,340 |
$ 520,126 |
|
$ 1,624,487 |
$ 1,473,472 |
Available for sale securities: |
|
|
|
|
|
|
|
|
Taxable |
59,732 |
62,852 |
63,405 |
55,801 |
50,277 |
|
185,989 |
152,320 |
Tax-exempt |
638 |
638 |
687 |
1,927 |
2,375 |
|
1,963 |
7,279 |
Loans held for sale |
1,630 |
1,652 |
1,184 |
1,418 |
1,468 |
|
4,467 |
3,033 |
Short-term investments |
29,851 |
37,383 |
42,897 |
24,701 |
21,213 |
|
110,130 |
58,876 |
Total interest revenue |
647,713 |
642,210 |
637,113 |
615,187 |
595,459 |
|
1,927,036 |
1,694,980 |
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
Interest bearing demand deposits and money market accounts |
142,179 |
146,279 |
149,403 |
139,144 |
126,296 |
|
437,861 |
333,578 |
Savings |
3,695 |
3,743 |
3,801 |
3,918 |
4,108 |
|
11,238 |
11,037 |
Time deposits |
94,944 |
89,173 |
80,670 |
80,143 |
76,867 |
|
264,786 |
166,333 |
Federal funds purchased and securities sold under agreement to repurchase |
561 |
724 |
2,523 |
8,254 |
9,004 |
|
3,808 |
24,327 |
Short-term debt |
42,003 |
41,544 |
42,109 |
44,451 |
45,438 |
|
125,656 |
128,490 |
Subordinated and long-term debt |
2,873 |
4,429 |
4,699 |
4,672 |
4,786 |
|
12,003 |
14,464 |
Total interest expense |
286,255 |
285,892 |
283,205 |
280,582 |
266,499 |
|
855,352 |
678,229 |
Net interest revenue |
361,458 |
356,318 |
353,908 |
334,605 |
328,960 |
|
1,071,684 |
1,016,751 |
Provision for credit losses |
12,000 |
22,000 |
22,000 |
38,000 |
17,000 |
|
56,000 |
42,000 |
Net interest revenue, after provision for credit losses |
349,458 |
334,318 |
331,908 |
296,605 |
311,960 |
|
1,015,684 |
974,751 |
|
|
|
|
|
|
|
|
|
NONINTEREST REVENUE: |
|
|
|
|
|
|
|
|
Mortgage banking |
1,133 |
6,173 |
6,443 |
(1,137) |
5,684 |
|
13,749 |
20,115 |
Credit card, debit card and merchant fees |
12,649 |
12,770 |
12,162 |
12,902 |
12,413 |
|
37,581 |
36,882 |
Deposit service charges |
18,814 |
17,652 |
18,338 |
11,161 |
16,867 |
|
54,803 |
50,557 |
Security (losses) gains, net |
(2,947) |
(4) |
(9) |
(384,524) |
64 |
|
(2,960) |
(51,127) |
Wealth management |
24,110 |
24,006 |
22,833 |
22,576 |
21,079 |
|
70,949 |
64,351 |
Other noninterest income |
32,142 |
40,061 |
24,019 |
27,562 |
17,882 |
|
96,223 |
74,338 |
Total noninterest revenue |
85,901 |
100,658 |
83,786 |
(311,460) |
73,989 |
|
270,345 |
195,116 |
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
152,237 |
148,038 |
156,650 |
148,081 |
161,627 |
|
456,926 |
486,641 |
Occupancy and equipment |
28,894 |
29,367 |
28,640 |
28,009 |
27,069 |
|
86,901 |
82,962 |
Data processing and software |
29,164 |
29,467 |
30,028 |
32,922 |
29,127 |
|
88,658 |
87,521 |
Merger expense |
— |
— |
— |
— |
— |
|
— |
5,192 |
Amortization of intangibles |
3,933 |
3,999 |
4,066 |
4,405 |
4,436 |
|
11,998 |
14,983 |
Deposit insurance assessments |
7,481 |
15,741 |
8,414 |
45,733 |
10,425 |
|
31,637 |
26,491 |
Pension settlement expense |
— |
— |
— |
11,226 |
600 |
|
— |
600 |
Other noninterest expense |
37,729 |
30,085 |
35,409 |
58,991 |
41,158 |
|
103,223 |
122,165 |
Total noninterest expense |
259,438 |
256,697 |
263,207 |
329,367 |
274,442 |
|
779,343 |
826,555 |
Income (loss) from continuing operations before taxes |
175,921 |
178,279 |
152,487 |
(344,222) |
111,507 |
|
506,686 |
343,312 |
Income tax expense (benefit) |
39,482 |
40,807 |
35,509 |
(80,485) |
24,355 |
|
115,797 |
75,891 |
Income (loss) from continuing operations |
$ 136,439 |
$ 137,472 |
$ 116,978 |
$ (263,737) |
$ 87,152 |
|
390,889 |
267,421 |
Income from discontinued operations |
— |
— |
— |
706,129 |
7,242 |
|
— |
21,462 |
Income tax expense from discontinued operations |
— |
— |
— |
183,328 |
1,811 |
|
— |
5,643 |
Income from discontinued operations, net of taxes |
— |
— |
— |
522,801 |
5,431 |
|
— |
15,819 |
Net income |
136,439 |
137,472 |
116,978 |
259,064 |
92,583 |
|
390,889 |
283,240 |
Less: Preferred dividends |
2,372 |
2,372 |
2,372 |
2,372 |
2,372 |
|
7,116 |
7,116 |
Net income available to common shareholders |
$ 134,067 |
$ 135,100 |
$ 114,606 |
$ 256,692 |
$ 90,211 |
|
$ 383,773 |
$ 276,124 |
Diluted earnings (losses) per common share from continuing operations |
$ 0.72 |
$ 0.73 |
$ 0.62 |
$ (1.46) |
$ 0.46 |
|
$ 2.07 |
$ 1.41 |
Diluted earnings per common share |
$ 0.72 |
$ 0.73 |
$ 0.62 |
$ 1.41 |
$ 0.49 |
|
$ 2.07 |
$ 1.50 |
Table 7 Selected Loan Portfolio Data (Unaudited)
|
|||||
|
Quarter Ended |
||||
(In thousands) |
|
|
|
|
|
LOAN AND LEASE PORTFOLIO: |
|
|
|
|
|
Commercial and industrial |
|
|
|
|
|
Non-real estate |
$ 8,692,639 |
$ 9,136,929 |
$ 9,121,457 |
$ 8,935,598 |
$ 9,199,024 |
Owner occupied |
4,557,723 |
4,475,647 |
4,442,357 |
4,349,060 |
4,361,530 |
Total commercial and industrial |
13,250,362 |
13,612,576 |
13,563,814 |
13,284,658 |
13,560,554 |
Commercial real estate |
|
|
|
|
|
Construction, acquisition and development |
3,931,821 |
3,892,527 |
3,864,351 |
3,910,962 |
3,819,307 |
Income producing |
5,978,695 |
5,851,340 |
5,783,943 |
5,736,871 |
5,720,606 |
Total commercial real estate |
9,910,516 |
9,743,867 |
9,648,294 |
9,647,833 |
9,539,913 |
Consumer |
|
|
|
|
|
Residential mortgages |
9,933,222 |
9,740,713 |
9,447,675 |
9,329,692 |
9,186,179 |
Other consumer |
209,872 |
215,617 |
222,833 |
234,839 |
233,947 |
Total consumer |
10,143,094 |
9,956,330 |
9,670,508 |
9,564,531 |
9,420,126 |
Total loans and leases, net of unearned income |
$ 33,303,972 |
$ 33,312,773 |
$ 32,882,616 |
$ 32,497,022 |
$ 32,520,593 |
|
|
|
|
|
|
NONPERFORMING ASSETS |
|
|
|
|
|
Nonperforming Loans and Leases |
|
|
|
|
|
Commercial and industrial |
|
|
|
|
|
Non-real estate |
$ 148,267 |
$ 121,171 |
$ 149,683 |
$ 131,559 |
$ 67,962 |
Owner occupied |
15,127 |
13,700 |
5,962 |
7,097 |
6,486 |
Total commercial and industrial |
163,394 |
134,871 |
155,645 |
138,656 |
74,448 |
Commercial real estate |
|
|
|
|
|
Construction, acquisition and development |
2,034 |
4,923 |
3,787 |
1,859 |
4,608 |
Income producing |
25,112 |
15,002 |
19,428 |
17,485 |
12,251 |
Total commercial real estate |
27,146 |
19,925 |
23,215 |
19,344 |
16,859 |
Consumer |
|
|
|
|
|
Residential mortgages |
82,191 |
61,677 |
61,886 |
57,881 |
58,488 |
Other consumer |
223 |
273 |
261 |
260 |
243 |
Total consumer |
82,414 |
61,950 |
62,147 |
58,141 |
58,731 |
Total nonperforming loans and leases (1) |
$ 272,954 |
$ 216,746 |
$ 241,007 |
$ 216,141 |
$ 150,038 |
|
|
|
|
|
|
Other real estate owned and repossessed assets |
5,354 |
4,793 |
5,280 |
6,246 |
2,927 |
Total nonperforming assets |
$ 278,308 |
$ 221,539 |
$ 246,287 |
$ 222,387 |
$ 152,965 |
|
|
|
|
|
|
Government guaranteed portion of nonaccrual loans and leases covered by the SBA, FHA, |
$ 81,632 |
$ 71,418 |
$ 59,897 |
$ 49,551 |
$ 42,046 |
|
|
|
|
|
|
Loans and leases 90+ days past due, still accruing |
$ 11,757 |
$ 6,150 |
$ 30,048 |
$ 22,466 |
$ 9,152 |
|
(1) At |
Table 8 Allowance for Credit Losses (Unaudited)
|
|||||
|
Quarter Ended |
||||
(Dollars in thousands) |
|
|
|
|
|
ALLOWANCE FOR CREDIT LOSSES: |
|
|
|
|
|
Balance, beginning of period |
$ 470,022 |
$ 472,575 |
$ 468,034 |
$ 446,859 |
$ 466,013 |
Charge-offs: |
|
|
|
|
|
Commercial and industrial |
(21,620) |
(23,340) |
(16,997) |
(21,385) |
(34,959) |
Commercial real estate |
(222) |
(649) |
(2,244) |
(2,290) |
(931) |
Consumer |
(2,681) |
(2,294) |
(2,395) |
(3,229) |
(1,608) |
Total loans charged-off |
(24,523) |
(26,283) |
(21,636) |
(26,904) |
(37,498) |
Recoveries: |
|
|
|
|
|
Commercial and industrial |
1,647 |
2,943 |
1,312 |
2,117 |
2,240 |
Commercial real estate |
65 |
101 |
150 |
95 |
201 |
Consumer |
648 |
686 |
715 |
867 |
903 |
Total recoveries |
2,360 |
3,730 |
2,177 |
3,079 |
3,344 |
Net charge-offs |
(22,163) |
(22,553) |
(19,459) |
(23,825) |
(34,154) |
Provision for credit losses related to loans and leases |
13,000 |
20,000 |
24,000 |
45,000 |
15,000 |
Balance, end of period |
$ 460,859 |
$ 470,022 |
$ 472,575 |
$ 468,034 |
$ 446,859 |
|
|
|
|
|
|
Average loans and leases, net of unearned income, for period |
|
|
|
|
|
Ratio: Net charge-offs to average loans and leases (2) |
0.26 % |
0.28 % |
0.24 % |
0.29 % |
0.42 % |
|
|
|
|
|
|
RESERVE FOR UNFUNDED COMMITMENTS (1) |
|
|
|
|
|
Balance, beginning of period |
$ 8,551 |
$ 6,551 |
$ 8,551 |
$ 15,551 |
$ 13,551 |
Provision (reversal) for credit losses for unfunded commitments |
(1,000) |
2,000 |
(2,000) |
(7,000) |
2,000 |
Balance, end of period |
$ 7,551 |
$ 8,551 |
$ 6,551 |
$ 8,551 |
$ 15,551 |
|
(1) The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets. |
(2) Annualized. |
Table 9 Loan Portfolio by Grades (Unaudited) |
|||||||
|
|||||||
|
|
||||||
(In thousands) |
Pass |
Special Mention |
Substandard |
Doubtful |
Impaired |
Purchased Credit |
Total |
LOAN AND LEASE PORTFOLIO: |
|
|
|
|
|
|
|
Commercial and industrial |
|
|
|
|
|
|
|
Non-real estate |
$ 8,190,551 |
$ 171,866 |
$ 258,496 |
$ 13,325 |
$ 54,795 |
$ 3,606 |
$ 8,692,639 |
Owner occupied |
4,506,806 |
1,530 |
39,101 |
— |
9,187 |
1,099 |
4,557,723 |
Total commercial and industrial |
12,697,357 |
173,396 |
297,597 |
13,325 |
63,982 |
4,705 |
13,250,362 |
Commercial real estate |
|
|
|
|
|
|
|
Construction, acquisition and development |
3,918,273 |
— |
13,548 |
— |
— |
— |
3,931,821 |
Income producing |
5,767,252 |
8,611 |
180,414 |
— |
22,418 |
— |
5,978,695 |
Total commercial real estate |
9,685,525 |
8,611 |
193,962 |
— |
22,418 |
— |
9,910,516 |
Consumer |
|
|
|
|
|
|
|
Residential mortgages |
9,831,527 |
795 |
91,863 |
— |
7,579 |
1,458 |
9,933,222 |
Other consumer |
209,460 |
— |
412 |
— |
— |
— |
209,872 |
Total consumer |
10,040,987 |
795 |
92,275 |
— |
7,579 |
1,458 |
10,143,094 |
Total loans and leases, net of unearned income |
$ 32,423,869 |
$ 182,802 |
$ 583,834 |
$ 13,325 |
$ 93,979 |
$ 6,163 |
$ 33,303,972 |
|
|
|||||
(In thousands) |
Pass |
Special Mention |
Substandard |
Impaired |
Purchased Credit |
Total |
LOAN AND LEASE PORTFOLIO: |
|
|
|
|
|
|
Commercial and industrial |
|
|
|
|
|
|
Non-real estate |
$ 8,657,327 |
$ 116,208 |
$ 309,809 |
$ 49,914 |
$ 3,671 |
$ 9,136,929 |
Owner occupied |
4,413,813 |
9,872 |
42,860 |
7,998 |
1,104 |
4,475,647 |
Total commercial and industrial |
13,071,140 |
126,080 |
352,669 |
57,912 |
4,775 |
13,612,576 |
Commercial real estate |
|
|
|
|
|
|
Construction, acquisition and development |
3,875,914 |
926 |
14,273 |
1,414 |
— |
3,892,527 |
Income producing |
5,655,410 |
12,007 |
170,305 |
13,618 |
— |
5,851,340 |
Total commercial real estate |
9,531,324 |
12,933 |
184,578 |
15,032 |
— |
9,743,867 |
Consumer |
|
|
|
|
|
|
Residential mortgages |
9,658,697 |
799 |
79,759 |
— |
1,458 |
9,740,713 |
Other consumer |
215,104 |
— |
513 |
— |
— |
215,617 |
Total consumer |
9,873,801 |
799 |
80,272 |
— |
1,458 |
9,956,330 |
Total loans and leases, net of unearned income |
|
$ 139,812 |
$ 617,519 |
$ 72,944 |
$ 6,233 |
|
Table 10 Geographical Loan Information (Unaudited)
|
|||||||||||
|
|
||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
Other |
Total |
LOAN AND LEASE PORTFOLIO: |
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
|
|
|
|
|
|
|
|
|
Non-real estate |
$ 373,496 |
$ 174,110 |
$ 503,478 |
$ 451,079 |
$ 347,397 |
$ 493,209 |
$ 67,512 |
$ 366,114 |
$ 3,443,772 |
$ 2,472,472 |
$ 8,692,639 |
Owner occupied |
342,037 |
248,109 |
302,228 |
323,643 |
296,937 |
625,425 |
101,509 |
162,176 |
1,749,994 |
405,665 |
4,557,723 |
Total commercial and industrial |
715,533 |
422,219 |
805,706 |
774,722 |
644,334 |
1,118,634 |
169,021 |
528,290 |
5,193,766 |
2,878,137 |
13,250,362 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
Construction, acquisition and |
214,627 |
72,186 |
467,852 |
553,316 |
42,963 |
183,412 |
40,413 |
166,889 |
1,604,724 |
585,439 |
3,931,821 |
Income producing |
425,613 |
248,133 |
408,683 |
574,925 |
232,605 |
428,569 |
204,351 |
323,786 |
2,312,282 |
819,748 |
5,978,695 |
Total commercial real estate |
640,240 |
320,319 |
876,535 |
1,128,241 |
275,568 |
611,981 |
244,764 |
490,675 |
3,917,006 |
1,405,187 |
9,910,516 |
Consumer |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgages |
1,284,111 |
406,108 |
691,794 |
436,840 |
473,271 |
1,193,982 |
208,750 |
759,480 |
4,241,278 |
237,608 |
9,933,222 |
Other consumer |
27,230 |
17,386 |
5,223 |
7,425 |
10,771 |
83,311 |
1,542 |
15,909 |
35,564 |
5,511 |
209,872 |
Total consumer |
1,311,341 |
423,494 |
697,017 |
444,265 |
484,042 |
1,277,293 |
210,292 |
775,389 |
4,276,842 |
243,119 |
10,143,094 |
Total |
|
$ 1,166,032 |
$ 2,379,258 |
$ 2,347,228 |
$ 1,403,944 |
$ 3,007,908 |
$ 624,077 |
$ 1,794,354 |
$ 13,387,614 |
$ 4,526,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan growth (decline), excluding |
$ 30,840 |
$ 17,674 |
$ 73,538 |
$ 21,012 |
$ 20,825 |
$ (35,294) |
$ 724 |
$ 72,424 |
$ (99,263) |
$ (111,281) |
$ (8,801) |
Loan growth (decline), excluding |
4.65 % |
6.12 % |
12.69 % |
3.59 % |
5.99 % |
(4.61) % |
0.46 % |
16.73 % |
(2.93) % |
(9.55) % |
(0.11) % |
|
|||||||||||
|
|
||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
Other |
Total |
LOAN AND LEASE PORTFOLIO: |
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
|
|
|
|
|
|
|
|
|
Non-real estate |
$ 385,251 |
$ 166,222 |
$ 516,717 |
$ 491,184 |
$ 351,731 |
$ 535,447 |
$ 74,535 |
$ 331,710 |
$ 3,644,417 |
$ 2,639,715 |
$ 9,136,929 |
Owner occupied |
346,525 |
241,106 |
311,070 |
311,358 |
294,390 |
602,399 |
97,739 |
161,289 |
1,761,399 |
348,372 |
4,475,647 |
Total commercial and industrial |
731,776 |
407,328 |
827,787 |
802,542 |
646,121 |
1,137,846 |
172,274 |
492,999 |
5,405,816 |
2,988,087 |
13,612,576 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
Construction, acquisition and |
195,318 |
68,561 |
420,107 |
529,531 |
48,133 |
210,904 |
43,146 |
168,474 |
1,632,361 |
575,992 |
3,892,527 |
Income producing |
426,133 |
261,575 |
373,876 |
560,683 |
213,649 |
430,971 |
203,927 |
297,257 |
2,260,782 |
822,487 |
5,851,340 |
Total commercial real estate |
621,451 |
330,136 |
793,983 |
1,090,214 |
261,782 |
641,875 |
247,073 |
465,731 |
3,893,143 |
1,398,479 |
9,743,867 |
Consumer |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgages |
1,257,791 |
393,730 |
679,028 |
426,349 |
464,187 |
1,177,933 |
202,196 |
747,121 |
4,146,204 |
246,174 |
9,740,713 |
Other consumer |
25,256 |
17,164 |
4,922 |
7,111 |
11,029 |
85,548 |
1,810 |
16,079 |
41,714 |
4,984 |
215,617 |
Total consumer |
1,283,047 |
410,894 |
683,950 |
433,460 |
475,216 |
1,263,481 |
204,006 |
763,200 |
4,187,918 |
251,158 |
9,956,330 |
Total loans and leases, net of |
$ 2,636,274 |
$ 1,148,358 |
$ 2,305,720 |
$ 2,326,216 |
$ 1,383,119 |
$ 3,043,202 |
$ 623,353 |
$ 1,721,930 |
|
$ 4,637,724 |
|
Table 11 Noninterest Revenue and Expense (Unaudited)
|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
(In thousands) |
|
|
|
|
|
|
|
|
NONINTEREST REVENUE: |
|
|
|
|
|
|
|
|
Mortgage banking excl. MSR and MSR hedge market value adjustment |
$ 8,171 |
$ 9,875 |
$ 9,116 |
$ 6,966 |
$ 7,946 |
|
$ 27,161 |
$ 26,797 |
MSR and MSR hedge market value adjustment |
(7,038) |
(3,702) |
(2,673) |
(8,103) |
(2,262) |
|
(13,412) |
(6,682) |
Credit card, debit card and merchant fees |
12,649 |
12,770 |
12,162 |
12,902 |
12,413 |
|
37,581 |
36,882 |
Deposit service charges |
18,814 |
17,652 |
18,338 |
11,161 |
16,867 |
|
54,803 |
50,557 |
Security (losses) gains, net |
(2,947) |
(4) |
(9) |
(384,524) |
64 |
|
(2,960) |
(51,127) |
Trust and asset management income |
12,055 |
12,645 |
11,322 |
11,301 |
10,574 |
|
36,023 |
31,211 |
Investment advisory fees |
8,641 |
8,180 |
8,336 |
8,084 |
8,428 |
|
25,157 |
23,320 |
Brokerage and annuity fees |
3,414 |
3,181 |
3,175 |
3,191 |
2,077 |
|
9,769 |
9,820 |
Bank-owned life insurance |
4,353 |
4,370 |
3,946 |
4,728 |
4,108 |
|
12,670 |
11,566 |
Other miscellaneous income |
27,789 |
35,691 |
20,073 |
22,834 |
13,774 |
|
83,553 |
62,772 |
Total noninterest revenue |
$ 85,901 |
$ 100,658 |
$ 83,786 |
$ (311,460) |
$ 73,989 |
|
$ 270,345 |
$ 195,116 |
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ 152,237 |
$ 148,038 |
$ 156,650 |
$ 148,081 |
$ 161,627 |
|
$ 456,926 |
$ 486,641 |
Occupancy and equipment |
28,894 |
29,367 |
28,640 |
28,009 |
27,069 |
|
86,901 |
82,962 |
Deposit insurance assessments |
7,481 |
15,741 |
8,414 |
45,733 |
10,425 |
|
31,637 |
26,491 |
Pension settlement expense |
— |
— |
— |
11,226 |
600 |
|
— |
600 |
Advertising and public relations |
5,481 |
6,537 |
4,224 |
12,632 |
5,671 |
|
16,241 |
15,530 |
Foreclosed property expense |
486 |
515 |
268 |
915 |
270 |
|
1,269 |
1,573 |
Telecommunications |
1,513 |
1,441 |
1,545 |
1,356 |
1,520 |
|
4,498 |
4,419 |
Travel and entertainment |
2,612 |
2,549 |
2,236 |
3,146 |
2,442 |
|
7,397 |
7,857 |
Data processing and software |
29,164 |
29,467 |
30,028 |
32,922 |
29,127 |
|
88,658 |
87,521 |
Professional, consulting and outsourcing |
4,115 |
3,534 |
3,935 |
5,194 |
5,017 |
|
11,584 |
14,698 |
Amortization of intangibles |
3,933 |
3,999 |
4,066 |
4,405 |
4,436 |
|
11,998 |
14,983 |
Legal |
3,664 |
758 |
3,682 |
13,724 |
3,316 |
|
8,104 |
6,369 |
Merger expense |
— |
— |
— |
— |
— |
|
— |
5,192 |
Postage and shipping |
1,677 |
1,622 |
2,205 |
1,907 |
2,292 |
|
5,504 |
6,536 |
Other miscellaneous expense |
18,181 |
13,129 |
17,314 |
20,117 |
20,630 |
|
48,626 |
65,183 |
Total noninterest expense |
$ 259,438 |
$ 256,697 |
$ 263,207 |
$ 329,367 |
$ 274,442 |
|
$ 779,343 |
$ 826,555 |
|
|
|
|
|
|
|
|
|
Table 12 Average Balance and Yields (Unaudited) |
|||||||||||
|
|||||||||||
|
Quarter Ended |
||||||||||
|
|
|
|
|
|
||||||
(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 |
|
$ 553,394 |
6.62 % |
|
$ 32,945,526 |
$ 537,179 |
6.56 % |
|
|
$ 513,989 |
6.31 % |
Accretion income on acquired loans |
|
2,992 |
0.04 |
|
|
2,981 |
0.03 |
|
|
6,587 |
0.08 |
Loans held for sale |
134,313 |
1,630 |
4.83 |
|
114,359 |
1,652 |
5.81 |
|
115,653 |
1,468 |
5.04 |
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
7,834,596 |
59,732 |
3.03 |
|
7,954,865 |
62,852 |
3.18 |
|
9,635,084 |
50,277 |
2.07 |
Tax-exempt |
81,040 |
808 |
3.97 |
|
78,687 |
807 |
4.12 |
|
369,357 |
3,006 |
3.23 |
Total investment securities |
7,915,636 |
60,540 |
3.04 |
|
8,033,552 |
63,659 |
3.19 |
|
10,004,441 |
53,283 |
2.11 |
Other investments |
2,210,277 |
29,851 |
5.37 |
|
2,758,385 |
37,383 |
5.45 |
|
1,571,973 |
21,213 |
5.35 |
Total interest-earning assets |
43,540,045 |
648,407 |
5.92 % |
|
43,851,822 |
642,854 |
5.90 % |
|
44,003,639 |
596,540 |
5.38 % |
Other assets |
4,733,851 |
|
|
|
4,816,078 |
|
|
|
5,111,197 |
|
|
Allowance for credit losses |
469,919 |
|
|
|
475,181 |
|
|
|
459,698 |
|
|
Total assets |
|
|
|
|
$ 48,192,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand and money market |
|
$ 142,179 |
3.13 % |
|
$ 18,770,093 |
$ 146,279 |
3.13 % |
|
|
126,296 |
2.79 % |
Savings deposits |
2,584,761 |
3,695 |
0.57 |
|
2,652,019 |
3,743 |
0.57 |
|
2,913,027 |
4,108 |
0.56 |
Time deposits |
8,389,472 |
94,944 |
4.50 |
|
7,920,946 |
89,173 |
4.53 |
|
7,660,868 |
76,867 |
3.98 |
Total interest-bearing deposits |
29,017,919 |
240,818 |
3.30 |
|
29,343,058 |
239,195 |
3.28 |
|
28,544,358 |
207,271 |
2.88 |
Fed funds purchased, securities sold under agreement to |
44,582 |
572 |
5.10 |
|
65,821 |
732 |
4.47 |
|
837,773 |
9,007 |
4.27 |
Short-term FHLB borrowings |
11 |
— |
— |
|
— |
— |
— |
|
224 |
2 |
3.54 |
Short-term BTFP borrowings |
3,500,000 |
41,992 |
4.77 |
|
3,500,000 |
41,536 |
4.77 |
|
3,500,000 |
45,433 |
5.15 |
Subordinated and long-term borrowings |
265,790 |
2,873 |
4.30 |
|
404,231 |
4,429 |
4.41 |
|
449,568 |
4,786 |
4.22 |
Total interest-bearing liabilities |
32,828,302 |
286,255 |
3.47 % |
|
33,313,110 |
285,892 |
3.45 % |
|
33,331,923 |
266,499 |
3.17 % |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
8,616,534 |
|
|
|
8,757,029 |
|
|
|
9,924,554 |
|
|
Other liabilities |
938,315 |
|
|
|
915,326 |
|
|
|
893,499 |
|
|
Total liabilities |
42,383,151 |
|
|
|
42,985,465 |
|
|
|
44,149,976 |
|
|
Shareholders' equity |
5,420,826 |
|
|
|
5,207,254 |
|
|
|
4,505,162 |
|
|
Total liabilities and shareholders' equity |
|
|
|
|
$ 48,192,719 |
|
|
|
|
|
|
Net interest income/net interest spread |
|
362,152 |
2.45 % |
|
|
356,962 |
2.45 % |
|
|
330,041 |
2.21 % |
Net yield on earning assets/net interest margin |
|
|
3.31 % |
|
|
|
3.27 % |
|
|
|
2.98 % |
Taxable equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
Loans and investment securities |
|
(694) |
|
|
|
(644) |
|
|
|
(1,081) |
|
Net interest revenue |
|
$ 361,458 |
|
|
|
$ 356,318 |
|
|
|
$ 328,960 |
|
Table 12 Average Balance and Yields Continued |
|||||||
|
Year-To-Date |
||||||
|
|
|
|
||||
(Dollars in thousands) |
Average Balance |
Income/ |
Yield/ Rate |
|
Average Balance |
Income/ |
Yield/ Rate |
ASSETS |
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
Loans and leases, excluding accretion |
$ 32,988,706 |
$ 1,616,450 |
6.54 % |
|
$ 31,706,637 |
$ 1,452,912 |
6.13 % |
Accretion income on acquired loans |
|
9,489 |
0.04 |
|
|
21,822 |
0.09 |
Loans held for sale |
107,109 |
4,467 |
5.57 |
|
76,770 |
3,033 |
5.28 |
Investment securities |
|
|
|
|
|
|
|
Taxable |
7,991,692 |
185,989 |
3.11 |
|
10,283,587 |
152,320 |
1.98 |
Tax-exempt |
80,699 |
2,485 |
4.11 |
|
383,031 |
9,214 |
3.22 |
Total investment securities |
8,072,391 |
188,474 |
3.12 |
|
10,666,618 |
161,534 |
2.02 |
Other investments |
2,703,228 |
110,130 |
5.44 |
|
1,567,483 |
58,876 |
5.02 |
Total interest-earning assets |
43,871,434 |
1,929,010 |
5.87 % |
|
44,017,508 |
1,698,177 |
5.16 % |
Other assets |
4,813,124 |
|
|
|
5,227,122 |
|
|
Allowance for credit losses |
472,972 |
|
|
|
453,133 |
|
|
Total assets |
$ 48,211,586 |
|
|
|
$ 48,791,497 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Interest bearing demand and money market |
$ 18,703,458 |
437,861 |
3.13 % |
|
$ 18,322,003 |
$ 333,578 |
2.43 % |
Savings deposits |
2,644,193 |
11,238 |
0.57 |
|
3,119,830 |
11,037 |
0.47 |
Time deposits |
7,888,094 |
264,786 |
4.48 |
|
6,383,257 |
166,333 |
3.48 |
Total interest-bearing deposits |
29,235,745 |
713,885 |
3.26 |
|
27,825,090 |
510,948 |
2.46 |
Fed funds purchased, securities sold under agreement to repurchase and other |
106,357 |
3,832 |
4.81 |
|
814,943 |
24,334 |
3.99 |
Short-term FHLB borrowings |
4 |
— |
— |
|
1,858,102 |
68,235 |
4.91 |
Short-term BTFP borrowings |
3,500,000 |
125,632 |
4.79 |
|
1,564,103 |
60,248 |
5.15 |
Subordinated and long-term borrowings |
367,826 |
12,003 |
4.36 |
|
455,810 |
14,464 |
4.24 |
Total interest-bearing liabilities |
33,209,932 |
855,352 |
3.44 % |
|
32,518,048 |
678,229 |
2.79 % |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
Demand deposits |
8,814,668 |
|
|
|
10,942,567 |
|
|
Other liabilities |
912,407 |
|
|
|
850,159 |
|
|
Total liabilities |
42,937,007 |
|
|
|
44,310,774 |
|
|
Shareholders' equity |
5,274,579 |
|
|
|
4,480,723 |
|
|
Total liabilities and shareholders' equity |
$ 48,211,586 |
|
|
|
$ 48,791,497 |
|
|
Net interest income/net interest spread |
|
1,073,658 |
2.43 % |
|
|
1,019,948 |
2.37 % |
Net yield on earning assets/net interest margin |
|
|
3.27 % |
|
|
|
3.10 % |
Taxable equivalent adjustment: |
|
|
|
|
|
|
|
Loans and investment securities |
|
(1,974) |
|
|
|
(3,197) |
|
Net interest revenue |
|
$ 1,071,684 |
|
|
|
$ 1,016,751 |
|
Table 13 Selected Additional Data (Unaudited) |
|||||
|
|||||
|
Quarter Ended |
||||
(Dollars in thousands) |
|
|
|
|
|
MORTGAGE SERVICING RIGHTS ("MSR"): |
|
|
|
|
|
Fair value, beginning of period |
$ 113,595 |
$ 111,685 |
$ 106,824 |
$ 116,266 |
$ 111,417 |
Originations of servicing assets |
3,361 |
3,687 |
2,736 |
2,636 |
4,065 |
Changes in fair value: |
|
|
|
|
|
Due to changes in valuation inputs or assumptions(1) |
(8,232) |
927 |
4,781 |
(9,043) |
2,888 |
Other changes in fair value(2) |
(3,833) |
(2,704) |
(2,656) |
(3,035) |
(2,104) |
Fair value, end of period |
$ 104,891 |
$ 113,595 |
$ 111,685 |
$ 106,824 |
$ 116,266 |
|
|
|
|
|
|
MORTGAGE BANKING REVENUE: |
|
|
|
|
|
Origination |
$ 2,145 |
$ 3,976 |
$ 3,165 |
$ 1,040 |
$ 2,031 |
Servicing |
6,026 |
5,899 |
5,951 |
5,926 |
5,915 |
Total mortgage banking revenue excluding MSR |
8,171 |
9,875 |
9,116 |
6,966 |
7,946 |
Due to changes in valuation inputs or assumptions(1) |
(8,232) |
927 |
4,781 |
(9,043) |
2,888 |
Other changes in fair value(2) |
(3,833) |
(2,704) |
(2,656) |
(3,035) |
(2,104) |
Market value adjustment on MSR Hedge |
5,027 |
(1,925) |
(4,798) |
3,975 |
(3,046) |
Total mortgage banking revenue |
$ 1,133 |
$ 6,173 |
$ 6,443 |
$ (1,137) |
$ 5,684 |
|
|
|
|
|
|
Mortgage loans serviced |
$ 7,927,028 |
|
$ 7,764,936 |
$ 7,702,592 |
|
MSR/mortgage loans serviced |
1.32 % |
1.45 % |
1.44 % |
1.39 % |
1.52 % |
|
|
(1) |
Primarily reflects changes in prepayment speeds and discount rate assumptions which are updated based on market interest rates. |
(2) |
Primarily reflects changes due to realized cash flows. |
|
Quarter Ended |
||||
(In thousands) |
|
|
|
|
|
AVAILABLE FOR SALE SECURITIES, at fair value |
|
|
|
|
|
|
$ — |
$ — |
$ 239,402 |
$ 465,018 |
$ 1,996 |
Obligations of |
300,730 |
305,200 |
318,233 |
332,011 |
1,004,374 |
Mortgage-backed securities issued or guaranteed by |
|
|
|
|
|
Residential pass-through: |
|
|
|
|
|
Guaranteed by GNMA |
71,001 |
69,788 |
72,034 |
75,662 |
73,649 |
Issued by |
4,163,760 |
4,125,416 |
4,254,227 |
4,387,101 |
5,541,895 |
Other residential mortgage-back securities |
1,135,004 |
1,233,868 |
1,210,617 |
727,434 |
146,063 |
Commercial mortgage-backed securities |
1,664,288 |
1,673,823 |
1,694,967 |
1,742,837 |
2,271,680 |
Total MBS |
7,034,053 |
7,102,895 |
7,231,845 |
6,933,034 |
8,033,287 |
Obligations of states and political subdivisions |
137,996 |
133,155 |
134,643 |
137,624 |
392,252 |
Other domestic debt securities |
51,599 |
64,288 |
67,421 |
67,197 |
71,741 |
Foreign debt securities |
317,307 |
315,884 |
315,045 |
140,592 |
139,581 |
Total available for sale securities |
$ 7,841,685 |
$ 7,921,422 |
$ 8,306,589 |
$ 8,075,476 |
$ 9,643,231 |
Table 14 |
Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions |
(Unaudited) |
|
Management evaluates the Company's capital position and adjusted performance by utilizing certain financial measures not calculated in accordance with GAAP, including adjusted income from continuing operations, adjusted income from continuing operations available to common shareholders, pre-tax pre-provision net revenue from continuing operations, adjusted pre-tax pre-provision net revenue from continuing operations, total adjusted noninterest revenue, total adjusted noninterest expense, tangible common shareholders' equity to tangible assets, total shareholders' equity (excluding AOCI), common shareholders' equity (excluding AOCI), tangible common shareholders' equity to tangible assets (excluding AOCI), return on average tangible common equity from continuing operations, return on average tangible common equity, adjusted return on average tangible common equity from continuing operations, adjusted return on average tangible common equity, adjusted return on average assets from continuing operations, adjusted return on average assets, adjusted return on average common shareholders' equity from continuing operations, adjusted return on average common shareholders' equity, pre-tax pre-provision net revenue to total average assets, adjusted pre-tax pre-provision net revenue to total average assets, adjusted earnings per common share, tangible book value per common share, tangible book value per common share, excluding AOCI, efficiency ratio (tax equivalent), adjusted efficiency ratio (tax equivalent), dividend payout ratio from continuing operations, and adjusted dividend payout ratio from continuing operations. The Company has included these non-GAAP financial measures in this release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures: (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and adjusted performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names. |
|
Quarter Ended |
|
Year-to-date |
|||||
(In thousands) |
|
|
|
|
|
|
|
|
Adjusted Income from Continuing Operations Available to Common |
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
$ 136,439 |
$ 137,472 |
$ 116,978 |
$ (263,737) |
$ 87,152 |
|
$ 390,889 |
$ 267,421 |
Plus: Merger expense |
— |
— |
— |
— |
— |
|
— |
5,192 |
Incremental merger related expense |
— |
— |
— |
7,500 |
— |
|
— |
10,631 |
Gain on extinguishment of debt |
— |
(1,098) |
(576) |
(652) |
— |
|
(1,674) |
(1,140) |
Restructuring and other nonroutine expenses |
(920) |
6,675 |
251 |
41,522 |
9,596 |
|
6,006 |
16,027 |
Pension settlement expense |
— |
— |
— |
11,226 |
600 |
|
— |
600 |
Less: Security (losses) gains, net |
(2,947) |
(4) |
(9) |
(384,524) |
64 |
|
(2,960) |
(51,127) |
Gain on sale of businesses |
— |
14,980 |
— |
— |
— |
|
14,980 |
— |
Nonroutine (losses) gains, net |
— |
— |
— |
— |
(6,653) |
|
— |
(6,653) |
Tax adjustment |
476 |
(2,209) |
(74) |
105,275 |
3,944 |
|
(1,807) |
20,936 |
Adjusted income from continuing operations |
137,990 |
130,282 |
116,736 |
75,108 |
99,992 |
|
385,008 |
335,575 |
Less: Preferred dividends |
2,372 |
2,372 |
2,372 |
2,372 |
2,372 |
|
7,116 |
7,116 |
Adjusted income from continuing operations available to common |
$ 135,618 |
$ 127,910 |
$ 114,364 |
$ 72,736 |
$ 97,620 |
|
$ 377,892 |
$ 328,459 |
|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
(In thousands) |
|
|
|
|
|
|
|
|
Pre-Tax Pre-Provision Net Revenue from Continuing Operations |
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
$ 136,439 |
$ 137,472 |
$ 116,978 |
$ (263,737) |
$ 87,152 |
|
$ 390,889 |
$ 267,421 |
Plus: Provision for credit losses |
12,000 |
22,000 |
22,000 |
38,000 |
17,000 |
|
56,000 |
42,000 |
Income tax expense (benefit) |
39,482 |
40,807 |
35,509 |
(80,485) |
24,355 |
|
115,797 |
75,891 |
Pre-tax pre-provision net revenue from continuing operations |
$ 187,921 |
$ 200,279 |
$ 174,487 |
$ (306,222) |
$ 128,507 |
|
$ 562,686 |
$ 385,312 |
|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
(In thousands) |
|
|
|
|
|
|
|
|
Adjusted Pre-Tax Pre-Provision Net Revenue from Continuing |
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
$ 136,439 |
$ 137,472 |
$ 116,978 |
$ (263,737) |
$ 87,152 |
|
$ 390,889 |
$ 267,421 |
Plus: Provision for credit losses |
12,000 |
22,000 |
22,000 |
38,000 |
17,000 |
|
56,000 |
42,000 |
Merger expense |
— |
— |
— |
— |
— |
|
— |
5,192 |
Incremental merger related expense |
— |
— |
— |
7,500 |
— |
|
— |
10,631 |
Gain on extinguishment of debt |
— |
(1,098) |
(576) |
(652) |
— |
|
(1,674) |
(1,140) |
Restructuring and other nonroutine expenses |
(920) |
6,675 |
251 |
41,522 |
9,596 |
|
6,006 |
16,027 |
Pension settlement expense |
— |
— |
— |
11,226 |
600 |
|
— |
600 |
Income tax expense (benefit) |
39,482 |
40,807 |
35,509 |
(80,485) |
24,355 |
|
115,797 |
75,891 |
Less: Security (losses) gains, net |
(2,947) |
(4) |
(9) |
(384,524) |
64 |
|
(2,960) |
(51,127) |
Gain on sale of businesses |
— |
14,980 |
— |
— |
— |
|
14,980 |
— |
Nonroutine (losses) gains, net |
— |
— |
— |
— |
(6,653) |
|
— |
(6,653) |
Adjusted pre-tax pre-provision net revenue from continuing |
$ 189,948 |
$ 190,880 |
$ 174,171 |
$ 137,898 |
$ 145,292 |
|
$ 554,998 |
$ 474,402 |
|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
(In thousands) |
|
|
|
|
|
|
|
|
Total Adjusted Revenue |
|
|
|
|
|
|
|
|
Net interest revenue |
$ 361,458 |
$ 356,318 |
$ 353,908 |
$ 334,605 |
$ 328,960 |
|
$ 1,071,684 |
$ 1,016,751 |
Total Adjusted Noninterest Revenue |
|
|
|
|
|
|
|
|
Total noninterest revenue |
$ 85,901 |
$ 100,658 |
$ 83,786 |
$ (311,460) |
$ 73,989 |
|
$ 270,345 |
$ 195,116 |
Less: Security (losses) gains, net |
(2,947) |
(4) |
(9) |
(384,524) |
64 |
|
(2,960) |
(51,127) |
Gain on sale of businesses |
— |
14,980 |
— |
— |
— |
|
14,980 |
— |
Nonroutine gains (losses), net |
— |
— |
— |
— |
(6,653) |
|
— |
(6,653) |
Total adjusted noninterest revenue |
$ 88,848 |
$ 85,682 |
$ 83,795 |
$ 73,064 |
$ 80,578 |
|
$ 258,325 |
$ 252,896 |
Total adjusted revenue |
$ 450,306 |
$ 442,000 |
$ 437,703 |
$ 407,669 |
$ 409,538 |
|
$ 1,330,009 |
$ 1,269,647 |
|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
(In thousands) |
|
|
|
|
|
|
|
|
Total Adjusted Noninterest Expense |
|
|
|
|
|
|
|
|
Total noninterest expense |
$ 259,438 |
$ 256,697 |
$ 263,207 |
$ 329,367 |
$ 274,442 |
|
$ 779,343 |
$ 826,555 |
Less: Merger expense |
— |
— |
— |
— |
— |
|
— |
5,192 |
Incremental merger related expense |
— |
— |
— |
7,500 |
— |
|
— |
10,631 |
Gain on extinguishment of debt |
— |
(1,098) |
(576) |
(652) |
— |
|
(1,674) |
(1,140) |
Restructuring and other nonroutine expenses |
(920) |
6,675 |
251 |
41,522 |
9,596 |
|
6,006 |
16,027 |
Pension settlement expense |
— |
— |
— |
11,226 |
600 |
|
— |
600 |
Total adjusted noninterest expense |
$ 260,358 |
$ 251,120 |
$ 263,532 |
$ 269,771 |
$ 264,246 |
|
$ 775,011 |
$ 795,245 |
|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
(In thousands) |
|
|
|
|
|
|
|
|
Total Tangible Assets, Excluding AOCI |
|
|
|
|
|
|
|
|
Total assets |
$ 49,204,933 |
$ 47,984,078 |
$ 48,313,863 |
$ 48,934,510 |
$ 48,523,010 |
|
|
|
Less: |
1,366,923 |
1,366,923 |
1,367,785 |
1,367,785 |
1,367,785 |
|
1,366,923 |
1,367,785 |
Other intangible assets, net |
87,094 |
91,027 |
96,126 |
100,191 |
104,596 |
|
87,094 |
104,596 |
Total tangible assets |
47,750,916 |
46,526,128 |
46,849,952 |
47,466,534 |
47,050,629 |
|
47,750,916 |
47,050,629 |
Less: AOCI |
(590,342) |
(782,462) |
(791,333) |
(761,829) |
(1,309,921) |
|
(590,342) |
(1,309,921) |
Total tangible assets, excluding AOCI |
$ 48,341,258 |
$ 47,308,590 |
$ 47,641,285 |
$ 48,228,363 |
$ 48,360,550 |
|
|
|
|
||||||||
|
Quarter Ended |
|
Year-to-date |
|||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
PERIOD END BALANCES: |
|
|
|
|
|
|
|
|
Total Shareholders' Equity, Excluding AOCI |
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
|
|
|
|
|
|
|
Less: AOCI |
(590,342) |
(782,462) |
(791,333) |
(761,829) |
(1,309,921) |
|
(590,342) |
(1,309,921) |
Total shareholders' equity, excluding AOCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shareholders' Equity, Excluding AOCI |
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
|
|
|
|
|
|
|
Less: preferred stock |
166,993 |
166,993 |
166,993 |
166,993 |
166,993 |
|
166,993 |
166,993 |
Common shareholders' equity |
5,405,870 |
5,120,765 |
5,022,939 |
5,000,850 |
4,228,264 |
|
5,405,870 |
4,228,264 |
Less: AOCI |
(590,342) |
(782,462) |
(791,333) |
(761,829) |
(1,309,921) |
|
(590,342) |
(1,309,921) |
Common shareholders' equity, excluding AOCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Tangible Common Shareholders' Equity, Excluding AOCI |
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
|
|
|
|
|
|
|
Less: |
1,366,923 |
1,366,923 |
1,367,785 |
1,367,785 |
1,367,785 |
|
1,366,923 |
1,367,785 |
Other intangible assets, net |
87,094 |
91,027 |
96,126 |
100,191 |
104,596 |
|
87,094 |
104,596 |
Preferred stock |
166,993 |
166,993 |
166,993 |
166,993 |
166,993 |
|
166,993 |
166,993 |
Total tangible common shareholders' equity |
3,951,853 |
3,662,815 |
3,559,028 |
3,532,874 |
2,755,883 |
|
3,951,853 |
2,755,883 |
Less: AOCI |
(590,342) |
(782,462) |
(791,333) |
(761,829) |
(1,309,921) |
|
(590,342) |
(1,309,921) |
Total tangible common shareholders' equity, excluding AOCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES: |
|
|
|
|
|
|
|
|
Total Tangible Common Shareholders' Equity |
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
|
|
|
|
|
|
|
Less: |
1,366,923 |
1,367,358 |
1,367,785 |
1,367,916 |
1,367,785 |
|
1,367,354 |
1,367,785 |
Other intangible assets, net |
89,262 |
93,743 |
98,350 |
102,765 |
107,032 |
|
93,769 |
112,510 |
Preferred stock |
166,993 |
166,993 |
166,993 |
166,993 |
166,993 |
|
166,993 |
166,993 |
Total tangible common shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average assets |
|
|
|
|
|
|
|
|
Total shares of common stock outstanding |
182,315,142 |
182,430,427 |
182,681,325 |
182,871,775 |
182,611,075 |
|
182,315,142 |
182,611,075 |
Average shares outstanding-diluted |
185,496,110 |
185,260,963 |
185,574,130 |
182,688,190 |
184,645,004 |
|
185,443,201 |
184,062,368 |
|
|
|
|
|
|
|
|
|
Tangible common shareholders' equity to tangible assets (1) |
8.28 % |
7.87 % |
7.60 % |
7.44 % |
5.86 % |
|
8.28 % |
5.86 % |
Tangible common shareholders' equity, excluding AOCI, to |
9.40 |
9.40 |
9.13 |
8.90 |
8.41 |
|
9.40 |
8.41 |
Return on average tangible common equity from continuing |
14.04 |
15.18 |
12.94 |
(36.79) |
11.75 |
|
14.06 |
12.28 |
Return on average tangible common equity (4) |
14.04 |
15.18 |
12.94 |
35.49 |
12.50 |
|
14.06 |
13.03 |
Adjusted return on average tangible common equity from |
14.21 |
14.37 |
12.92 |
10.06 |
13.53 |
|
13.84 |
15.50 |
Adjusted return on average assets from continuing |
1.15 |
1.09 |
0.97 |
0.62 |
0.82 |
|
1.07 |
0.92 |
Adjusted return on average common shareholders' equity |
10.27 |
10.21 |
9.15 |
6.65 |
8.93 |
|
9.88 |
10.18 |
Pre-tax pre-provision net revenue from continuing |
1.56 |
1.67 |
1.44 |
(2.51) |
1.05 |
|
1.56 |
1.06 |
Adjusted pre-tax pre-provision net revenue from continuing |
1.58 |
1.59 |
1.44 |
1.13 |
1.18 |
|
1.54 |
1.30 |
Tangible book value per common share (10) |
$ 21.68 |
$ 20.08 |
$ 19.48 |
$ 19.32 |
$ 15.09 |
|
$ 21.68 |
$ 15.09 |
Tangible book value per common share, excluding AOCI (11) |
24.91 |
24.37 |
23.81 |
23.48 |
22.26 |
|
24.91 |
22.26 |
Adjusted earnings from continuing operations per common |
$ 0.73 |
$ 0.69 |
$ 0.62 |
$ 0.40 |
$ 0.53 |
|
$ 2.04 |
$ 1.78 |
Adjusted dividend payout ratio from continuing operations (13) |
34.25 % |
36.23 % |
40.32 % |
58.75 % |
44.34 % |
|
36.76 % |
39.61 % |
Definitions of Non-GAAP Measures: |
|
(1) |
Tangible common shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less preferred stock, goodwill and other intangible assets, net, divided by the difference of total assets less goodwill and other intangible assets, net. |
(2) |
Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI, is defined by the Company as total shareholders' equity less preferred stock, goodwill, other intangible assets, net and accumulated other comprehensive loss, divided by the difference of total assets less goodwill, accumulated other comprehensive loss, and other intangible assets, net. |
(3) |
Return on average tangible common equity from continuing operations is defined by the Company as annualized income available to common shareholders from continuing operation divided by average tangible common shareholders equity. |
(4) |
Return on average tangible common equity is defined by the Company as annualized income available to common shareholders divided by average tangible common shareholders equity. |
(5) |
Adjusted return on average tangible common equity from continuing operations is defined by the Company as annualized adjusted income available to common shareholders from continuing operations divided by average tangible common shareholders' equity. |
(6) |
Adjusted return on average assets from continuing operations is defined by the Company as annualized adjusted income from continuing operations divided by total average assets. |
(7) |
Adjusted return on average common shareholders' equity from continuing operations is defined by the Company as annualized adjusted income available to common shareholders from continuing operations divided by average common shareholders' equity. |
(8) |
Pre-tax pre-provision net revenue from continuing operations to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue from continuing operations divided by total average assets. |
(9) |
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets is defined by the Company as annualized adjusted pre-tax pre-provision net revenue from continuing operations divided by total average assets adjusted for items included in the definition and calculation of adjusted income. |
(10) |
Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding. |
(11) |
Tangible book value per common share, excluding AOCI is defined by the Company as tangible common shareholders' equity less accumulated other comprehensive loss divided by total shares of common stock outstanding. |
(12) |
Adjusted earnings from continuing operations per common share is defined by the Company as adjusted income available to common shareholders from continuing operations divided by average common shares outstanding-diluted. |
(13) |
Adjusted dividend payout ratio from continuing operations is defined by the Company as common share dividends divided by adjusted income available to common shareholders from continuing operations. |
Efficiency Ratio-Fully Taxable Equivalent and Adjusted Efficiency Ratio-Fully Taxable Equivalent Definitions
The efficiency ratio and the adjusted efficiency ratio are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment from continuing operations. The adjusted efficiency ratio excludes income and expense items otherwise disclosed as non-routine from total noninterest expense from continuing operations.
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