HOUSTON and TUPELO,
Miss., Jan. 30, 2023 Cadence Bank (NYSE: CADE) (the Company), today
announced financial results for the quarter and year ended
December 31, 2022.
Annual highlights for 2022 included:
- Achieved net income available to common shareholders of
$453.7 million, or $2.46 per diluted common share, and adjusted net
income available to common shareholders of $542.3 million, or $2.94 per diluted common share.
- Reported annual adjusted pre-tax pre-provision net revenue
(PPNR) of $722.3 million, or 1.52% of
average assets.
- Generated net organic loan growth of $3.5 billion, or 12.9%.
- Net interest margin improved to 3.15%, compared to 2.96% for
2021, as a result of increasing interest rates and a shift in the
earning asset mix.
- Continued stable credit quality metrics; net recoveries for the
year, and total non-performing loans and leases declined to 0.36%
of net loans and leases.
- The adjusted efficiency ratio improved from 61.6% in 2021 to
60.7% in 2022.
- Repurchased 6.1 million shares of outstanding Company common
stock.
- Completed the core system conversion and operational
integration of the legacy Cadence merger (as defined below),
including the re-branding of the franchise across the Company
footprint.
Highlights for the fourth quarter of 2022 included:
- Achieved quarterly net income available to common shareholders
of $95.6 million, or $0.52 per diluted common share, and adjusted net
income available to common shareholders of $142.9 million, or $0.78 per diluted common share.
- Reported $195.5 million in
adjusted PPNR, or 1.62% of average assets, an increase of 3.0%
compared to the third quarter of 2022.
- Generated net organic loan growth of $1.1 billion for the fourth quarter of 2022, or
14.3% on an annualized basis, while total deposits were flat
quarter over quarter.
- Net interest margin improved to 3.33%, an increase of 5 basis
points from the linked quarter, driven by continued improvement in
earning asset yields partially offset by increasing deposit rates
and borrowing costs.
- Stable credit quality reflected in quarterly annualized net
recoveries of 0.07% of average loans and leases; results for the
quarter included a provision for credit losses of $6.0 million due to loan growth.
- Continued improvement in operating efficiency reflected in an
improvement in the adjusted efficiency ratio to 58.7% from 60.3%
for the third quarter of 2022.
"Our financial results for both the fourth quarter and full year
of 2022 reflect a number of key accomplishments," remarked
Dan Rollins, Chairman and Chief
Executive Officer of the Company. "Our bankers have continued to
generate meaningful business, including net loan growth of
$1.1 billion, or 14% annualized for
the fourth quarter, which resulted in total net loan growth of
$3.5 billion, or 13% for the
year. We were also pleased with our ability to hold our
deposits flat for the quarter despite continued pressure on
liquidity across the industry. Also, our net interest margin
improved for the fifth consecutive quarter."
Rollins continued, "Credit quality has continued to be a
positive story for our Company. While we recorded a provision
for credit losses of $6.0 million for
the quarter, we reported net recoveries of 0.07% annualized for the
quarter and total non-performing assets declined both for the
quarter and the full year. Additionally, our focus on
improving operating efficiency is evident in the continued
improvement in our adjusted efficiency ratio throughout the course
of 2022."
Earnings Summary
The fourth quarter 2021 merger with Cadence Bancorporation
impacts year-over-year comparisons. See "Recent Merger Transaction"
in this release for more information.
For the year ended December 31,
2022, the Company reported net income available to common
shareholders of $453.7 million, or
$2.46 per diluted common share,
compared with $185.7 million, or
$1.54 per diluted common share, for
the year ended December 31, 2021. The
Company reported adjusted net income available to common
shareholders of $542.3 million, or
$2.94 per diluted common share, for
the year ended December 31, 2022
compared with $348.5 million, or
$2.89 per diluted common share, for
the year ended December 31,
2021. Additionally, the Company reported adjusted PPNR of
$722.3 million, or 1.52% of average
assets, for the year ended December 31,
2022 compared with $453.0
million, or 1.51% of average assets, for the year ended
December 31, 2021.
For the fourth quarter of 2022, the Company reported net income
available to common shareholders of $95.6
million, or $0.52 per diluted
common share, compared with a net loss available to common
shareholders of $37.0 million, or
$0.22 per diluted common share, for
the fourth quarter of 2021 and net income available to common
shareholders of $121.0 million, or
$0.66 per diluted common share, for
the third quarter of 2022. Adjusted net income available to common
shareholders was $142.9 million, or
$0.78 per diluted common share, for
the fourth quarter of 2022, compared with $104.1 million, or $0.63 per diluted common share, for the fourth
quarter of 2021 and $143.7 million,
or $0.78 per diluted common share,
for the third quarter of 2022. Additionally, the Company
reported adjusted PPNR of $195.5
million, or 1.62% of average assets on an annualized basis,
for the fourth quarter of 2022 compared to $136.4 million, or 1.32% of average assets on an
annualized basis, for the fourth quarter of 2021 and $189.8 million, or 1.58% of average assets on an
annualized basis, for the third quarter of 2022.
The improvement in adjusted PPNR for the quarter was
attributable to an increase in net interest revenue, reflecting
continued net interest margin improvement and loan growth, and a
decline in adjusted non-interest expense, partially offset by lower
noninterest revenue driven by lower mortgage banking and insurance
commissions. The provision for credit losses offset this net
improvement, essentially resulting in flat adjusted net income for
the linked quarter.
Net Interest Revenue
Net interest revenue was $359.4
million for the fourth quarter of 2022, compared to
$271.2 million for the fourth quarter
of 2021 and $355.4 million for the
third quarter of 2022, an increase of $4.0 million or 1.13% from linked quarter. The
fully taxable equivalent (FTE) net interest margin was 3.33% for
the fourth quarter of 2022, compared with 2.90% for the fourth
quarter of 2021 and 3.28% for the third quarter of 2022.
Net interest revenue for the fourth quarter of 2022 included
$9.2 million in accretion revenue
related to acquired loans and leases, adding approximately 9 basis
points to the net interest margin. Accretion increased $1.1 million from $8.1
million for the third quarter of 2022, which added
approximately 7 basis points to the third quarter 2022 net interest
margin. Excluding the impact of accretion, the linked quarter net
interest margin increased by 3 basis points.
The increase in net interest revenue in the fourth quarter of
2022 compared to the linked quarter reflected continued improvement
in earning asset yields which outpaced acceleration in rates on
deposits and other funding.
Yields on net loans, loans held for sale, and leases excluding
accretion, were 5.41% for the fourth quarter of 2022, up 71 basis
points from 4.70% for the third quarter of 2022, while yields on
total interest earning assets were 4.38% for the fourth quarter of
2022, up 64 basis points from 3.74% for the third quarter of
2022. The increase in earning asset yields was driven by both
the impact of rising interest rates on loan portfolio repricing and
new loan production, as well as a mix shift as we deployed cash
flow from lower yielding securities into higher yielding
loans. Approximately 21% of our total loans are floating
(reprice within 30 days), and another 28% reprice within 12
months.
The average cost of total deposits increased to 0.76% for the
fourth quarter of 2022, compared with 0.35% for the third quarter
of 2022, reflecting both the impact of increasing rates and
continued competition for core deposits. Our total
deposit beta was 28% for the fourth quarter of 2022 and 17% for the
full year 2022 (cycle-to-date).
Balance Sheet Activity
Loans and leases, net of unearned income, increased $1.1 billion during the fourth quarter, or 14.3%
annualized, and $3.5 billion for the
full year, or 12.9%, to $30.3
billion. Loan growth for the quarter was spread across the
Corporate, Community and Mortgage teams, as well as across our
footprint.
Total investment securities of $11.9
billion decreased $497.8
million during the fourth quarter and $3.7 billion for the full year, reflecting both
fair valuation declines in the rising rate environment as well as
portfolio cash flows. We have continued to use cash flows from the
securities portfolio to support loan growth.
Total deposits were essentially flat for the fourth quarter at
$39.0 billion, while full year total
deposits declined $861.1 million,
reflecting the impact of inflation on our consumer accounts and the
decline of industry-wide deposits. The fourth quarter of 2022
ended with a loan to deposit ratio of 77.9% and securities to total
assets of 24.5%, reflecting continued improvement in earning asset
mix while maintaining strong balance sheet liquidity. Noninterest
bearing deposits represented 32.7% of total deposits at the end of
the fourth quarter of 2022, declining from 35.5% at September 30, 2022 as approximately $1.1 billion in non-interest bearing
balances shifted into interest bearing deposits.
Provision for Credit Losses and Allowance for Credit
Losses
Credit quality metrics for the fourth quarter of 2022 reflect
stability in overall credit quality, highlighted by net recoveries
for the quarter (the sixth quarter of net recoveries in the prior
seven quarters), a decline in total non-performing assets, and a
modest provision for credit losses necessary to support continued
growth in loans and unfunded commitments.
Total non-performing assets declined $10.4 million, or 8.2%, in the fourth quarter
from $126.5 million at September 30, 2022 to $116.1 million at December
31, 2022. Total non-performing loans and leases were
$109.4 million at
December 31, 2022, or 0.36% of total net loans and leases,
compared to the September 30, 2022 balance of $118.1 million, or 0.40% of total net loans and
leases. Other real estate owned and other repossessed assets also
declined to $6.7 million at
December 31, 2022, a decrease of $1.7
million or 19.7% from the September 30, 2022 balance of
$8.4 million.
Net recoveries for the fourth quarter of 2022 were $5.0 million, or 0.07% of net loans and leases on
an annualized basis, compared with net recoveries of $4.8 million for the fourth quarter of 2021 and
net charge-offs of $6.7 million for
the third quarter of 2022. The provision for credit losses for the
fourth quarter of 2022 was $6.0
million, compared with a provision for credit losses of
$133.6 million for fourth quarter of
2021 (which included a day one accounting provision of $132.1 million related to the legacy Cadence
merger) and no recorded provision for credit losses for the third
quarter of 2022. The fourth quarter 2022 provision included
$4 million for unfunded commitments
and $2 million related to loans. The
allowance for credit losses was $440.3
million, or 1.45% of net loans and leases at December 31, 2022, compared with $433.4 million, or 1.48% of net loans and leases
at September 30, 2022.
Noninterest Revenue
Noninterest revenue was $114.9
million for the fourth quarter of 2022, compared with
$103.9 million for the fourth quarter
of 2021 and $124.5 million for the
third quarter of 2022. The linked quarter decline was driven
primarily by policy renewal seasonality in insurance
commission revenue as well as a negative mortgage servicing rights
market value adjustment.
Insurance commission revenue totaled $34.7 million for the fourth quarter of 2022,
compared with $32.6 million for
the fourth quarter of 2021 and $39.9
million for the third quarter of 2022. The linked quarter
decline was driven by routine annual seasonality related to policy
renewal cycles within the book of business. Compared to the fourth
quarter of 2021, insurance commission revenue increased
6.3%.
Credit card, debit card and merchant fee revenue was
$15.8 million for the fourth quarter
of 2022, compared with $12.0 million
for the fourth quarter of 2021 and $14.5 million for the third quarter of 2022.
Deposit service charge revenue was $16.9 million for the fourth quarter of 2022
compared with $17.0 million for the
fourth quarter of 2021 and $19.1
million for the third quarter of 2022. The linked
quarter decline was driven by an an increase in the earnings credit
rate on corporate analysis accounts as well as NSF representment
refunds due to policy changes. Other noninterest revenue was
$26.4 million for the fourth quarter
of 2022, compared with $15.7 million
for the fourth quarter of 2021 and $22.7
million for the third quarter of 2022 with the increase
primarily attributable to increased bank-owned life insurance
proceeds and equity investment valuation adjustments.
Mortgage origination volume for the fourth quarter of 2022
was $554.5 million, compared with
$817.7 million for the fourth quarter
of 2021 and $769.9 million for the
third quarter of 2022. Mortgage production and servicing revenue
totaled $5.4 million for the fourth
quarter of 2022, compared with $8.0
million for the fourth quarter of 2021 and $4.7 million for the third quarter of 2022. The
mortgage servicing rights valuation adjustment was negative
$2.8 million for the fourth quarter
of 2022, compared with a positive $2.6
million for the fourth quarter of 2021 and a positive
$4.3 million for the third quarter of
2022 with the variances due to continued volatility in the interest
rate environment.
Noninterest Expense
Noninterest expense for the fourth quarter of 2022 was
$340.7 million, compared with
$289.2 million for the fourth quarter
of 2021 and $319.7 million for the
third quarter of 2022. Adjusted noninterest expense for the fourth
quarter of 2022 was $279.3 million,
compared with $239.1 million for the
fourth quarter of 2021 and $290.2
million for the third quarter of 2022. The adjusted
efficiency ratio was 58.7% for the fourth quarter of 2022,
representing improvement from 60.3% for the third quarter of 2022.
The decline in adjusted noninterest expense compared to the linked
quarter was driven primarily by a decline in salaries and employee
benefits expense. Salaries and benefits expense declined
$7.3 million compared to the third
quarter of 2022 due primarily to revised estimates of various
insurance accruals and employee benefit obligations impacted by
higher discount rates given the increase in interest rates.
Adjusted noninterest expense for the fourth quarter of 2022
excludes $53.0 million in total
merger related expenses, which includes one-time merger expense
shown as a separate line item on the income statement as well as
incremental merger related expenses (expenses for which the entity
receives future benefit) that are included in the respective
expense categories. Merger expense was $20.3
million for the fourth quarter of 2022, compared with
$44.8 million for the fourth quarter
of 2021 and $19.7 million for the
third quarter of 2022. Merger expense for the fourth quarter of
2022 was comprised primarily of system and technology related
expenses as a result of the core system conversion that took place
in the quarter, as well as compensation related items. Incremental
merger related expenses for the fourth quarter of 2022 totaled
$32.7 million compared to
$6.9 million in the prior quarter and
primarily included costs related to the franchise-wide rebranding
in October 2022, as well as employee
retention and technology related expenses. Adjusted noninterest
expense for the fourth quarter of 2022 also excludes a charge of
$6.1 million in accordance with ASC
715 "Compensation - Retirement Benefits" to reflect the settlement
accounting impact of elevated lump sum retirement pension payouts
during 2022 as well as $2.3 million
in branch closing expense.
Capital Management
Total shareholders' equity was $4.31
billion at December 31, 2022
compared with $5.25 billion at
December 31, 2021 and $4.17 billion at September
30, 2022. While the securities portfolio valuation
stabilized during the fourth quarter, the year-over-year decline is
primarily due to a decline in accumulated other comprehensive
income (loss) ("AOCI") resulting from an increase in unrealized
losses in the available-for-sale securities portfolio.
Estimated regulatory capital ratios at December 31, 2022
included Common Equity Tier 1 capital of 10.2%, Tier 1 capital of
10.7%, Total risk-based capital of 12.8%, and Tier 1 leverage
capital of 8.4%.
During the fourth quarter of 2022, the Company did not
repurchase shares of its common stock pursuant to its share
repurchase program, which expired on December 30, 2022. Outstanding company shares
were 182.4 million shares as of December 31,
2022, a reduction of 5.9 million shares since December 31, 2021. During December 2022, the board approved a share
repurchase authorization for 10 million shares of Company common
stock for the 2023 year.
Summary
Rollins concluded, "Reflecting back on 2022, it was a year of
tremendous progress. We reported continued growth in our businesses
and improvement in our financial performance while also completing
the final steps of our merger integration. Our
rebranding has sparked an energy across our franchise, and we are
excited to build on this spirit in 2023 and continue to bring value
to our teammates, customers and shareholders."
Recent Merger Transaction
Cadence Bancorporation (NYSE: CADE)
On October 29, 2021, the Company
completed the merger with Cadence Bancorporation, the parent
company of Cadence Bank N.A.,
(collectively referred to as legacy Cadence), pursuant to which
legacy Cadence was merged with and into the Company (the Cadence
Merger). Legacy Cadence operated 99 full-service banking offices in
the southeast. As of October 29,
2021, legacy Cadence reported total assets of $18.8 billion, total loans of $11.6 billion and total deposits of $16.3 billion. Under the terms of the definitive
merger agreement, each legacy Cadence shareholder received 0.70
shares of the Company's common stock in exchange for each share of
Cadence common stock they held. In addition, legacy Cadence paid a
one-time special dividend of $1.25
per share on October 28, 2021. In
connection with the closing of the Cadence merger, the Company
changed its name from BancorpSouth Bank to Cadence Bank and also changed its NYSE ticker
symbol from BXS to CADE.
The Company completed the planned conversion and consolidation
of the core operating systems in the fourth quarter of 2022
and is working to complete related post-conversion
reconciliations. These efforts are not complete as of the date of
this earnings announcement; however, Cadence presently anticipates
they will be complete prior to the scheduled filing of the Form
10-K for 2022. While the Company does not currently expect
adjustments to the financial information as of December 31, 2022 as presented herein, certain
reported amounts reflected in this announcement could be subject to
change.
For more information regarding the Cadence Merger, see our
Current Report on Form 8-K that was filed with the Federal Deposit
Insurance Corporation (FDIC) on October 29,
2021 and the 2021 Annual Report Form 10-K filed with the
FDIC.
Non-GAAP Measures and Ratios
This news release presents certain financial measures and ratios
that are not calculated in accordance with U.S. generally accepted
accounting principles (GAAP). 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 under the caption "Reconciliation of
Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning
on page 23 of this news release.
Conference Call and Webcast
The Company will conduct a conference call to discuss its fourth
quarter 2022 financial results on January
31, 2023, at 10:00 a.m. (Central
Time). This conference call will be an interactive session
between management and analysts. Interested parties may listen to
this live conference call via Internet webcast by accessing
http://ir.cadencebank.com/events. The webcast will also be
available in archived format at the same address.
About Cadence Bank
Cadence Bank (NYSE: CADE) is a
leading regional banking franchise with approximately $50 billion in assets and approximately 400
branch locations across the South and Texas. Cadence provides consumers, businesses
and corporations with a full range of innovative banking and
financial solutions. Services and products include consumer
banking, consumer loans, mortgages, home equity lines and loans,
credit cards, commercial and business banking, treasury management,
specialized lending, asset-based lending, commercial real estate,
equipment financing, correspondent banking, SBA lending, foreign
exchange, wealth management, investment and trust services,
financial planning, retirement plan management, and personal and
business insurance. Cadence is committed to a culture of respect,
diversity and inclusion in both its workplace and communities.
Cadence Bank, Member FDIC. Equal
Housing Lender.
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 (the "Exchange
Act"), 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. Forward-looking statements are based upon management's
expectations as well as certain assumptions and estimates made by,
and information available to, the Company's management at the time
such statements were made. Forward-looking statements are not
guarantees of future results or performance and are subject to
certain known and unknown risks, uncertainties and other factors
that are beyond the Company's control and that may cause actual
results to differ materially from those expressed in, or implied
by, such forward-looking statements.
Risks, uncertainties and other factors the Company may face
include, without limitation: general economic, unemployment, credit
market and real estate market conditions, including inflation, and
the effect of such conditions on customers, potential customers,
assets, investments and liquidity; the risks of changes in interest
rates and their effects on the level, cost, and composition of, and
competition for, deposits, loan demand and timing of payments, the
values of loan collateral, securities, and interest sensitive
assets and liabilities; the ability to attract new or retain
existing deposits, to retain or grow loans or additional interest
and fee income, or to control noninterest expense; the effect of
pricing pressures on the Company's net interest margin; the failure
of assumptions underlying the establishment of reserves for
possible credit losses, fair value for loans and other real estate
owned; changes in real estate values; a deterioration of the credit
rating for U.S. long-term sovereign debt, actions that the U.S.
government may take to avoid exceeding the debt ceiling, or
uncertainties surrounding the debt ceiling and the federal budget;
potential delays or other problems in implementing and executing
the Company's growth, expansion and acquisition strategies,
including delays in obtaining regulatory or other necessary
approvals, or the failure to realize any anticipated benefits or
synergies from any acquisitions or growth strategies; the
ability to pay dividends or coupons on the Company's 5.5% Series A
Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating
Rate Subordinated Notes due November 20,
2029; possible downgrades in the Company's credit ratings or
outlook which could increase the costs or availability of funding
from capital markets; the potential impact of the phase-out of the
London Interbank Offered Rate ("LIBOR") or other changes involving
LIBOR; changes in legal, financial, accounting, and/or regulatory
requirements; the costs and expenses to comply with such changes;
the enforcement efforts of federal and state bank regulators; the
ability to keep pace with technological changes, including changes
regarding maintaining cybersecurity; increased competition in the
financial services industry, particularly from regional and
national institutions; the impact of a failure in, or breach of,
the Company's operational or security systems or infrastructure, or
those of third parties with whom the Company does business,
including as a result of cyber-attacks or an increase in the
incidence or severity of fraud, illegal payments, security breaches
or other illegal acts impacting the Company or the Company's
customers. The Company also faces risks from the adverse effects of
the ongoing global COVID-19 pandemic, including the effect of
actions taken to mitigate its impact on individuals or the economy
broadly; natural disasters or acts of war or terrorism;
international or political instability, including the impacts
related to or resulting from Russia's military action in Ukraine and additional sanctions and export
controls, as well as the broader impacts to financial markets and
the global macroeconomic and geopolitical environments.
Risks specifically related to the Cadence Merger include, but
are not limited to: the possibility that the anticipated benefits
of the merger will not be realized when expected or at all,
including as a result of the impact of, or problems arising from,
the integration of the two companies, or as a result of the
strength of the economy and competitive factors in the areas where
the combined company does business; the possibility that the
parties may be unable to achieve expected synergies and operating
efficiencies within the expected timeframes, or at all, and to
successfully integrate legacy Cadence's operations and those of the
Company or because such integration may be more difficult, time
consuming, or costly than expected, including as a result of
unexpected factors or events; the risk that revenues following the
Cadence Merger may be lower than expected; the ability of the
Company and legacy Cadence to meet expectations regarding the
timing, completion and accounting and tax treatments of the Cadence
Merger; and the risk of potential adverse reactions or changes to
business or employee relationships, including those resulting from
the completion of the Cadence Merger. There are also risks of
adverse outcomes for any legal proceedings that may be instituted
against the Company or legacy Cadence in respect of the Cadence
Merger; the risk that any announcements relating to the Cadence
Merger could have adverse effects on the market price of the
capital stock of the combined company; and risks arising from the
dilution caused by the Company's issuance of additional shares of
its capital stock in connection with the Cadence Merger and other
factors as detailed from time to time in the Company's press and
news releases, periodic and current reports, and other filings the
Company files with the FDIC.
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 combined company's success in
executing its business plans and strategies, and managing the risks
involved in all of the foregoing.
The foregoing factors should not be construed as exhaustive and
should be read in conjunction with those factors that are set forth
from time to time in the Company's periodic and current reports
filed with the FDIC, including those factors included in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2021, particularly those
under the heading "Item 1A. Risk Factors," in the Company's
Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A.
Risk Factors" and in the Company's Current Reports on Form 8-K.
Although the Company believes that the expectations reflected in
these forward-looking statements are reasonable as of the date of
this news release, if one or more events related to these or other
risks or uncertainties materialize, or if the Company's underlying
assumptions prove to be incorrect, actual results may prove to be
materially different from the results expressed or implied by the
forward-looking statements. Accordingly, undue reliance should not
be placed on any forward-looking statements. The forward-looking
statements speak only as of the date of this news release, and the
Company does not undertake any obligation to publicly update or
review any forward-looking statement, except as required by
applicable law. All written or oral forward-looking statements
attributable to the Company are expressly qualified in their
entirety by this section.
Table
1
Selected Financial
Data
(Unaudited)
|
|
|
Quarter
Ended
|
|
Year-to-date
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
Earnings
Summary:
|
|
|
|
|
|
|
|
|
Interest
revenue
|
$
473,548
|
$
405,559
|
$
349,555
|
$
331,930
|
$
290,626
|
|
$ 1,560,593
|
$
882,049
|
Interest
expense
|
114,188
|
50,205
|
24,789
|
20,108
|
19,414
|
|
209,290
|
76,322
|
Net interest
revenue
|
359,360
|
355,354
|
324,766
|
311,822
|
271,212
|
|
1,351,303
|
805,727
|
Provision for credit
losses
|
6,000
|
—
|
1,000
|
—
|
133,562
|
|
7,000
|
138,062
|
Net interest revenue,
after provision for credit losses
|
353,360
|
355,354
|
323,766
|
311,822
|
137,650
|
|
1,344,303
|
667,665
|
Noninterest
revenue
|
114,873
|
124,491
|
125,234
|
128,435
|
103,854
|
|
493,032
|
378,153
|
Noninterest
expense
|
340,671
|
319,734
|
285,888
|
291,667
|
289,194
|
|
1,237,960
|
798,890
|
Income (loss) before
income taxes
|
127,562
|
160,111
|
163,112
|
148,590
|
(47,690)
|
|
599,375
|
246,928
|
Income tax expense
(benefit)
|
29,628
|
36,713
|
36,154
|
33,643
|
(13,033)
|
|
136,138
|
51,766
|
Net income
(loss)
|
97,934
|
123,398
|
126,958
|
114,947
|
(34,657)
|
|
463,237
|
195,162
|
Less: Preferred
dividends
|
2,372
|
2,372
|
2,372
|
2,372
|
2,372
|
|
9,488
|
9,488
|
Net income (loss)
available to common shareholders
|
$ 95,562
|
$
121,026
|
$
124,586
|
$
112,575
|
$
(37,029)
|
|
$
453,749
|
$
185,674
|
|
|
|
|
|
|
|
|
|
Balance Sheet -
Period End Balances
|
|
|
|
|
|
|
|
Total assets
|
$
48,653,414
|
$
47,699,660
|
$
47,747,708
|
$
47,204,061
|
$
47,669,751
|
|
$
48,653,414
|
$
47,669,751
|
Total earning
assets
|
43,722,544
|
42,832,355
|
43,093,974
|
42,744,225
|
43,503,089
|
|
43,722,544
|
43,503,089
|
Available-for-sale
securities
|
11,944,096
|
12,441,894
|
13,450,621
|
14,371,606
|
15,606,470
|
|
11,944,096
|
15,606,470
|
Loans and leases, net
of unearned income
|
30,349,277
|
29,296,450
|
28,360,485
|
27,189,666
|
26,882,988
|
|
30,349,277
|
26,882,988
|
Allowance for credit
losses (ACL)
|
440,347
|
433,363
|
440,112
|
438,738
|
446,415
|
|
440,347
|
446,415
|
Net book value of
acquired loans
|
8,754,526
|
8,841,588
|
9,721,672
|
11,020,251
|
11,968,278
|
|
8,754,526
|
11,968,278
|
Unamortized net
discount on acquired loans
|
58,162
|
58,887
|
65,350
|
72,620
|
77,711
|
|
58,162
|
77,711
|
Total
deposits
|
38,956,614
|
39,003,946
|
40,189,083
|
40,568,055
|
39,817,673
|
|
38,956,614
|
39,817,673
|
Total deposits and
repurchase agreements
|
39,665,350
|
39,682,280
|
40,838,260
|
41,271,615
|
40,504,861
|
|
39,665,350
|
40,504,861
|
Federal funds purchased
and short-term FHLB advances
|
3,300,231
|
2,495,000
|
1,200,000
|
—
|
595,000
|
|
3,300,231
|
595,000
|
Subordinated and
long-term debt
|
462,554
|
463,291
|
465,073
|
465,695
|
482,411
|
|
462,554
|
482,411
|
Total shareholders'
equity
|
4,311,374
|
4,166,925
|
4,437,925
|
4,643,757
|
5,247,987
|
|
4,311,374
|
5,247,987
|
Total shareholders'
equity, excluding AOCI (1)
|
5,533,912
|
5,464,737
|
5,374,270
|
5,307,757
|
5,387,356
|
|
5,533,912
|
5,387,356
|
Common shareholders'
equity
|
4,144,381
|
3,999,932
|
4,270,932
|
4,476,764
|
5,080,994
|
|
4,144,381
|
5,080,994
|
Common shareholders'
equity, excluding AOCI (1)
|
$ 5,366,919
|
$ 5,297,744
|
$ 5,207,277
|
$ 5,140,764
|
$ 5,220,363
|
|
$ 5,366,919
|
$ 5,220,363
|
|
|
|
|
|
|
|
|
|
Balance Sheet -
Average Balances
|
|
|
|
|
|
|
|
Total assets
|
$
47,790,494
|
$
47,595,557
|
$
47,064,829
|
$
47,679,850
|
$
40,995,513
|
|
$
47,533,157
|
$
29,994,648
|
Total earning
assets
|
42,976,050
|
43,079,481
|
42,688,497
|
43,515,166
|
37,210,403
|
|
43,063,362
|
27,282,382
|
Available-for-sale
securities
|
12,156,803
|
13,252,828
|
13,941,127
|
15,070,524
|
12,954,547
|
|
13,596,372
|
9,309,947
|
Loans and leases, net
of unearned income
|
29,812,924
|
28,872,156
|
27,848,097
|
27,106,733
|
22,745,093
|
|
28,418,658
|
17,055,429
|
Total
deposits
|
38,372,354
|
39,600,886
|
39,396,028
|
40,565,103
|
34,759,687
|
|
39,477,906
|
25,228,601
|
Total deposits and
repurchase agreements
|
39,033,328
|
40,256,109
|
40,062,095
|
41,259,136
|
35,479,807
|
|
40,146,852
|
25,936,769
|
Subordinated and
long-term debt
|
462,927
|
464,843
|
465,447
|
466,842
|
441,165
|
|
465,004
|
341,170
|
Total shareholders'
equity
|
4,215,585
|
4,506,655
|
4,523,189
|
5,062,231
|
4,508,594
|
|
4,574,403
|
3,337,575
|
Common shareholders'
equity
|
$ 4,048,592
|
$ 4,339,662
|
$ 4,356,196
|
$ 4,895,238
|
$ 4,341,601
|
|
$ 4,407,410
|
$ 3,170,582
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets:
|
|
|
|
|
|
|
|
|
Nonaccrual loans and
leases
|
$ 98,745
|
$ 89,931
|
$ 89,368
|
$ 91,031
|
$
122,104
|
|
$ 98,745
|
$
122,104
|
Loans and leases 90+
days past due, still accruing
|
2,068
|
11,984
|
19,682
|
20,957
|
24,784
|
|
2,068
|
24,784
|
Restructured loans and
leases, still accruing
|
8,598
|
16,200
|
7,385
|
7,292
|
6,903
|
|
8,598
|
6,903
|
Non-performing loans
and leases (NPL)
|
109,411
|
118,115
|
116,435
|
119,280
|
153,791
|
|
109,411
|
153,791
|
Other real estate owned
and other assets
|
6,725
|
8,376
|
14,399
|
28,401
|
33,021
|
|
6,725
|
33,021
|
Non-performing assets
(NPA)
|
$
116,136
|
$
126,491
|
$
130,834
|
$
147,681
|
$
186,812
|
|
$
116,136
|
$
186,812
|
|
|
(1)
|
Denotes non-GAAP
financial measure. Refer to related disclosure and reconciliation
on pages 23 - 26.
|
Table
2
Selected Financial
Ratios
|
|
|
Quarter
Ended
|
|
Year-to-date
|
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
Financial Ratios and
Other Data:
|
|
|
|
|
|
|
|
|
Return on average
assets (2)
|
0.81 %
|
1.03 %
|
1.08 %
|
0.98 %
|
(0.34) %
|
|
0.97 %
|
0.65 %
|
Adjusted return on
average assets (1)(2))
|
1.21
|
1.22
|
1.16
|
1.05
|
1.03
|
|
1.16
|
1.19
|
Return on average
common shareholders' equity (2)
|
9.36
|
11.06
|
11.47
|
9.33
|
(3.38)
|
|
10.30
|
5.86
|
Adjusted return on
average common shareholders' equity (1)(2)
|
14.00
|
13.13
|
12.36
|
10.07
|
9.51
|
|
12.30
|
10.99
|
Return on average
tangible common equity (1)(2)
|
15.42
|
17.40
|
18.11
|
13.87
|
(4.71)
|
|
16.12
|
8.66
|
Adjusted return on
average tangible common equity (1)(2)
|
23.04
|
20.66
|
19.50
|
14.98
|
13.24
|
|
19.26
|
16.26
|
Pre-tax pre-provision
net revenue to total average assets (1)(2)
|
1.11
|
1.33
|
1.40
|
1.26
|
0.83
|
|
1.28
|
1.28
|
Adjusted pre-tax
pre-provision net revenue to total average assets
(1)(2)
|
1.62
|
1.58
|
1.51
|
1.36
|
1.32
|
|
1.52
|
1.51
|
Net interest
margin-fully taxable equivalent
|
3.33
|
3.28
|
3.06
|
2.92
|
2.90
|
|
3.15
|
2.96
|
Net interest rate
spread-fully taxable equivalent
|
2.84
|
3.05
|
2.94
|
2.81
|
2.78
|
|
2.90
|
2.82
|
Efficiency ratio fully
tax equivalent (1)
|
71.67
|
66.49
|
63.38
|
66.10
|
76.94
|
|
66.97
|
67.34
|
Adjusted efficiency
ratio fully tax equivalent (1)
|
58.69
|
60.33
|
60.46
|
63.52
|
63.54
|
|
60.70
|
61.63
|
Loan/deposit
ratio
|
77.91 %
|
75.11 %
|
70.57 %
|
67.02 %
|
67.52 %
|
|
77.91 %
|
67.52 %
|
Full time equivalent
employees
|
6,572
|
6,629
|
6,659
|
6,568
|
6,595
|
|
6,572
|
6,595
|
|
|
|
|
|
|
|
|
|
Credit Quality
Ratios:
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) to average loans and leases (2)
|
(0.07) %
|
0.09 %
|
(0.02) %
|
(0.01) %
|
(0.08) %
|
|
— %
|
(0.03) %
|
Provision for credit
losses to average loans and leases (2)
|
0.08
|
—
|
0.01
|
—
|
2.33
|
|
0.02
|
0.81
|
ACL to loans and
leases, net
|
1.45
|
1.48
|
1.55
|
1.61
|
1.66
|
|
1.45
|
1.66
|
ACL to NPL
|
402.47
|
366.90
|
377.99
|
367.82
|
290.27
|
|
402.47
|
290.27
|
NPL to loans and
leases, net
|
0.36
|
0.40
|
0.41
|
0.44
|
0.57
|
|
0.36
|
0.57
|
NPA to total
assets
|
0.24
|
0.27
|
0.27
|
0.31
|
0.39
|
|
0.24
|
0.39
|
|
|
|
|
|
|
|
|
|
Equity
Ratios:
|
|
|
|
|
|
|
|
|
Total shareholders'
equity to total assets
|
8.86 %
|
8.74 %
|
9.29 %
|
9.84 %
|
11.01 %
|
|
8.86 %
|
11.01 %
|
Total common
shareholders' equity to total assets
|
8.52
|
8.39
|
8.94
|
9.48
|
10.66
|
|
8.52
|
10.66
|
Tangible common
shareholders' equity to tangible assets (1)
|
5.42
|
5.24
|
5.82
|
6.31
|
7.54
|
|
5.42
|
7.54
|
Tangible common
shareholders' equity to tangible assets, excluding AOCI
(1)
|
7.82
|
7.84
|
7.70
|
7.65
|
7.82
|
|
7.82
|
7.82
|
|
|
|
|
|
|
|
|
|
Capital Adequacy
(3):
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
capital
|
10.2 %
|
10.3 %
|
10.3 %
|
10.6 %
|
11.1 %
|
|
10.2 %
|
11.1 %
|
Tier 1
capital
|
10.7
|
10.7
|
10.8
|
11.1
|
11.6
|
|
10.7
|
11.6
|
Total
capital
|
12.8
|
12.8
|
13.0
|
13.3
|
13.9
|
|
12.8
|
13.9
|
Tier 1 leverage
capital
|
8.4
|
8.4
|
8.4
|
8.2
|
9.9
|
|
8.4
|
9.9
|
|
|
(1)
|
Denotes non-GAAP
financial measure. Refer to related disclosure and reconciliation
on pages 23 - 26.
|
(2)
|
Quarterly ratios are
annualized.
|
(3)
|
Current quarter
regulatory capital ratios are estimated.
|
Table
3
Selected Financial
Information
|
|
|
Quarter
Ended
|
|
Year-to-date
|
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
Common Share
Data:
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share
|
$ 0.52
|
$ 0.66
|
$ 0.68
|
$ 0.60
|
$ (0.22)
|
|
$ 2.46
|
$ 1.54
|
Adjusted earnings per
share (1)
|
0.78
|
0.78
|
0.73
|
0.65
|
0.63
|
|
2.94
|
2.89
|
Cash dividends per
share
|
0.22
|
0.22
|
0.22
|
0.22
|
0.20
|
|
0.88
|
0.78
|
Book value per
share
|
22.72
|
21.92
|
23.41
|
24.40
|
26.98
|
|
22.72
|
26.98
|
Tangible book value per
share (1)
|
13.99
|
13.25
|
14.73
|
15.67
|
18.45
|
|
13.99
|
18.45
|
Market value per share
(last)
|
24.66
|
25.41
|
23.48
|
29.26
|
29.79
|
|
24.66
|
29.79
|
Market value per share
(high)
|
29.41
|
28.54
|
29.75
|
34.24
|
32.12
|
|
34.24
|
35.59
|
Market value per share
(low)
|
22.43
|
22.04
|
22.82
|
27.95
|
27.25
|
|
22.04
|
24.87
|
Market value per share
(avg)
|
26.84
|
25.68
|
25.74
|
31.20
|
30.20
|
|
27.35
|
29.80
|
Dividend payout
ratio
|
42.31 %
|
33.33 %
|
32.44 %
|
36.60 %
|
NM
|
|
35.77 %
|
50.65 %
|
Adjusted dividend
payout ratio (1)
|
28.21 %
|
28.21 %
|
30.14 %
|
33.85 %
|
31.75 %
|
|
29.93 %
|
26.99 %
|
Total shares
outstanding
|
182,437,265
|
182,438,780
|
182,461,786
|
183,488,844
|
188,337,658
|
|
182,437,265
|
188,337,658
|
Average shares
outstanding - diluted
|
183,762,008
|
183,313,831
|
183,711,402
|
187,264,335
|
164,720,656
|
|
184,498,472
|
120,668,695
|
|
|
|
|
|
|
|
|
|
Yield/Rate:
|
|
|
|
|
|
|
|
|
(Taxable equivalent
basis)
|
|
|
|
|
|
|
|
|
Loans, loans held for
sale, and leases
|
5.54 %
|
4.82 %
|
4.29 %
|
4.23 %
|
4.34 %
|
|
4.74 %
|
4.43 %
|
Loans, loans held for
sale, and leases excluding net accretion on acquired loans and
leases
|
5.41
|
4.70
|
4.12
|
3.96
|
4.06
|
|
4.57
|
4.28
|
Available-for-sale
securities:
|
|
|
|
|
|
|
|
|
Taxable
|
1.54
|
1.44
|
1.37
|
1.26
|
1.17
|
|
1.40
|
1.21
|
Tax-exempt
|
3.28
|
3.05
|
2.95
|
2.57
|
2.54
|
|
2.95
|
2.78
|
Other
investments
|
3.69
|
2.32
|
1.03
|
0.24
|
0.25
|
|
1.77
|
0.21
|
Total interest earning
assets and revenue
|
4.38
|
3.74
|
3.29
|
3.10
|
3.11
|
|
3.63
|
3.24
|
Deposits
|
0.76
|
0.35
|
0.17
|
0.15
|
0.17
|
|
0.35
|
0.24
|
Interest bearing demand
and money market
|
1.34
|
0.60
|
0.26
|
0.20
|
0.21
|
|
0.59
|
0.30
|
Savings
|
0.31
|
0.17
|
0.06
|
0.06
|
0.14
|
|
0.15
|
0.09
|
Time
|
1.17
|
0.56
|
0.47
|
0.52
|
0.58
|
|
0.68
|
0.88
|
Total interest bearing
deposits
|
1.17
|
0.53
|
0.26
|
0.23
|
0.26
|
|
0.54
|
0.36
|
Short-term
borrowings
|
3.62
|
1.89
|
0.74
|
0.11
|
0.11
|
|
2.24
|
0.12
|
Total interest bearing
deposits and short-term borrowings
|
1.50
|
0.64
|
0.29
|
0.22
|
0.25
|
|
0.68
|
0.35
|
Long-term
debt
|
4.15
|
4.16
|
4.14
|
4.19
|
3.95
|
|
4.16
|
4.29
|
Total interest bearing
liabilities
|
1.54
|
0.70
|
0.36
|
0.29
|
0.32
|
|
0.74
|
0.43
|
Interest bearing
liabilities to interest earning assets
|
68.42 %
|
66.19 %
|
65.25 %
|
64.46 %
|
64.18 %
|
|
66.09 %
|
65.61 %
|
Net interest income tax
equivalent adjustment
|
$ 1,071
|
$ 1,052
|
$ 1,063
|
$ 1,027
|
$ 824
|
|
$ 4,212
|
$ 2,388
|
|
|
(1)
|
Denotes non-GAAP
financial measure. Refer to related disclosure and reconciliation
on pages 23 - 26.
|
Table
4
Consolidated Balance
Sheets
(Unaudited)
|
|
|
As of
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
ASSETS
|
|
|
|
|
|
Cash and due from
banks
|
$
756,906
|
$
693,999
|
$
770,293
|
$
781,310
|
$
656,132
|
Interest bearing
deposits with other banks and Federal funds sold
|
1,241,246
|
895,630
|
1,069,410
|
880,742
|
638,547
|
Available-for-sale
securities, at fair value
|
11,944,096
|
12,441,894
|
13,450,621
|
14,371,606
|
15,606,470
|
Loans and leases, net
of unearned income
|
30,349,277
|
29,296,450
|
28,360,485
|
27,189,666
|
26,882,988
|
Allowance for credit
losses
|
440,347
|
433,363
|
440,112
|
438,738
|
446,415
|
Net loans and
leases
|
29,908,930
|
28,863,087
|
27,920,373
|
26,750,928
|
26,436,573
|
Loans held for sale, at
fair value
|
187,925
|
198,381
|
213,458
|
302,211
|
340,175
|
Premises and equipment,
net
|
817,430
|
802,382
|
782,728
|
781,209
|
786,426
|
Goodwill
|
1,458,795
|
1,449,511
|
1,444,209
|
1,409,038
|
1,407,948
|
Other intangible
assets, net
|
132,764
|
132,953
|
138,370
|
191,642
|
198,271
|
Bank-owned life
insurance
|
630,046
|
624,696
|
601,601
|
599,346
|
597,953
|
Other assets
|
1,575,276
|
1,597,127
|
1,356,645
|
1,136,029
|
1,001,256
|
Total
Assets
|
$
48,653,414
|
$
47,699,660
|
$
47,747,708
|
$
47,204,061
|
$
47,669,751
|
LIABILITIES
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Demand: Noninterest
bearing
|
$
12,731,065
|
$
13,839,649
|
$
14,012,529
|
$
14,458,563
|
$
13,634,505
|
Interest
bearing
|
19,040,131
|
18,033,648
|
19,032,983
|
18,854,543
|
18,727,588
|
Savings
|
3,473,746
|
3,676,340
|
3,735,925
|
3,713,629
|
3,556,079
|
Time
deposits
|
3,711,672
|
3,454,309
|
3,407,646
|
3,541,320
|
3,899,501
|
Total
deposits
|
38,956,614
|
39,003,946
|
40,189,083
|
40,568,055
|
39,817,673
|
Securities sold under
agreement to repurchase
|
708,736
|
678,334
|
649,177
|
703,560
|
687,188
|
Federal funds purchased
and short-term FHLB borrowings
|
3,300,231
|
2,495,000
|
1,200,000
|
—
|
595,000
|
Subordinated and
long-term debt
|
462,554
|
463,291
|
465,073
|
465,695
|
482,411
|
Other
liabilities
|
913,905
|
892,164
|
806,450
|
822,994
|
839,492
|
Total
Liabilities
|
44,342,040
|
43,532,735
|
43,309,783
|
42,560,304
|
42,421,764
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
Common stock
|
456,093
|
456,097
|
456,154
|
458,722
|
470,844
|
Capital
surplus
|
2,709,391
|
2,695,646
|
2,686,031
|
2,701,371
|
2,841,998
|
Accumulated other
comprehensive loss
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
(664,000)
|
(139,369)
|
Retained
earnings
|
2,201,435
|
2,146,001
|
2,065,092
|
1,980,671
|
1,907,521
|
Total Shareholders'
Equity
|
4,311,374
|
4,166,925
|
4,437,925
|
4,643,757
|
5,247,987
|
Total Liabilities
& Shareholders' Equity
|
$
48,653,414
|
$
47,699,660
|
$
47,747,708
|
$
47,204,061
|
$
47,669,751
|
Table
5
Consolidated
Quarterly Average Balance Sheets
(Unaudited)
|
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
ASSETS
|
|
|
|
|
|
Cash and due from
banks
|
$
617,634
|
$
654,589
|
$
640,672
|
$
656,630
|
$
792,315
|
Interest bearing
deposits with other banks and Federal funds sold
|
943,806
|
851,185
|
751,972
|
1,161,262
|
1,253,722
|
Available-for-sale
securities, at fair value
|
12,156,803
|
13,252,828
|
13,941,127
|
15,070,524
|
12,954,547
|
Loans and leases, net
of unearned income
|
29,812,924
|
28,872,156
|
27,848,097
|
27,106,733
|
22,745,093
|
Allowance for credit
losses
|
434,785
|
441,042
|
438,752
|
444,294
|
404,578
|
Net loans and
leases
|
29,378,139
|
28,431,114
|
27,409,345
|
26,662,439
|
22,340,515
|
Loans held for sale, at
fair value
|
62,517
|
103,312
|
147,301
|
176,647
|
220,766
|
Premises and equipment,
net
|
802,771
|
809,799
|
784,247
|
785,005
|
690,031
|
Goodwill
|
1,457,120
|
1,444,331
|
1,407,452
|
1,407,973
|
1,115,502
|
Other intangible
assets, net
|
132,091
|
136,149
|
188,897
|
195,606
|
106,559
|
Bank-owned life
insurance
|
625,938
|
613,973
|
599,912
|
598,822
|
517,511
|
Other assets
|
1,613,675
|
1,298,277
|
1,193,904
|
964,942
|
1,004,045
|
Total
Assets
|
$
47,790,494
|
$
47,595,557
|
$
47,064,829
|
$
47,679,850
|
$
40,995,513
|
LIABILITIES
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Demand: Noninterest
bearing
|
$
13,344,152
|
$
13,816,796
|
$
13,970,163
|
$
13,806,591
|
$
12,047,637
|
Interest
bearing
|
17,866,198
|
18,675,214
|
18,238,571
|
19,401,019
|
15,811,268
|
Savings
|
3,555,911
|
3,720,218
|
3,723,193
|
3,631,699
|
3,374,243
|
Time
deposits
|
3,606,093
|
3,388,658
|
3,464,101
|
3,725,794
|
3,526,539
|
Total
deposits
|
38,372,354
|
39,600,886
|
39,396,028
|
40,565,103
|
34,759,687
|
Securities sold under
agreement to repurchase
|
660,974
|
655,223
|
666,067
|
694,033
|
720,120
|
Federal funds purchased
and short-term FHLB borrowings
|
3,251,947
|
1,608,587
|
1,294,946
|
131,556
|
7,554
|
Subordinated and
long-term debt
|
462,927
|
464,843
|
465,447
|
466,842
|
441,165
|
Other
liabilities
|
826,707
|
759,363
|
719,152
|
760,085
|
558,393
|
Total
Liabilities
|
43,574,909
|
43,088,902
|
42,541,640
|
42,617,619
|
36,486,919
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
Common stock
|
456,095
|
456,130
|
457,713
|
465,458
|
404,522
|
Capital
surplus
|
2,701,121
|
2,689,340
|
2,694,546
|
2,779,746
|
2,139,357
|
Accumulated other
comprehensive loss
|
(1,302,388)
|
(922,673)
|
(821,034)
|
(283,417)
|
(103,554)
|
Retained
earnings
|
2,193,764
|
2,116,865
|
2,024,971
|
1,933,451
|
1,901,276
|
Total Shareholders'
Equity
|
4,215,585
|
4,506,655
|
4,523,189
|
5,062,231
|
4,508,594
|
Total Liabilities &
Shareholders' Equity
|
$
47,790,494
|
$
47,595,557
|
$
47,064,829
|
$
47,679,850
|
$
40,995,513
|
Table
6
Consolidated
Statements of Income (Loss)
(Unaudited)
|
|
|
Quarter
Ended
|
|
Year-to-date
|
(Dollars in thousands,
except per share data)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
INTEREST
REVENUE:
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$
414,623
|
$
349,093
|
$
296,680
|
$
282,266
|
$
249,614
|
|
$ 1,342,662
|
$
758,180
|
Available-for-sale
securities:
|
|
|
|
|
|
|
|
|
Taxable
|
45,807
|
46,701
|
46,254
|
45,155
|
37,258
|
|
183,918
|
111,050
|
Tax-exempt
|
2,547
|
2,548
|
2,571
|
2,414
|
1,608
|
|
10,079
|
3,461
|
Loans held for
sale
|
1,788
|
2,241
|
2,118
|
1,407
|
1,324
|
|
7,554
|
8,035
|
Other interest
revenue
|
8,783
|
4,976
|
1,932
|
688
|
822
|
|
16,380
|
1,323
|
Total interest
revenue
|
473,548
|
405,559
|
349,555
|
331,930
|
290,626
|
|
1,560,593
|
882,049
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Interest bearing demand
deposits and money market accounts
|
60,253
|
28,175
|
11,717
|
9,742
|
8,922
|
|
109,893
|
33,688
|
Savings
|
2,769
|
1,597
|
590
|
568
|
766
|
|
5,519
|
2,764
|
Time
deposits
|
10,651
|
4,797
|
4,041
|
4,764
|
5,139
|
|
24,253
|
24,394
|
Federal funds purchased
and securities sold under agreement to repurchase
|
8,365
|
3,944
|
906
|
216
|
200
|
|
13,432
|
813
|
Short-term
debt
|
27,302
|
6,821
|
2,734
|
5
|
—
|
|
36,863
|
25
|
Subordinated and
long-term debt
|
4,848
|
4,871
|
4,801
|
4,813
|
4,387
|
|
19,330
|
14,638
|
Total interest
expense
|
114,188
|
50,205
|
24,789
|
20,108
|
19,414
|
|
209,290
|
76,322
|
Net interest
revenue
|
359,360
|
355,354
|
324,766
|
311,822
|
271,212
|
|
1,351,303
|
805,727
|
Provision (release) for
credit losses
|
6,000
|
—
|
1,000
|
—
|
133,562
|
|
7,000
|
138,062
|
Net interest revenue,
after provision for credit losses
|
353,360
|
355,354
|
323,766
|
311,822
|
137,650
|
|
1,344,303
|
667,665
|
|
|
|
|
|
|
|
|
|
NONINTEREST
REVENUE:
|
|
|
|
|
|
|
|
|
Mortgage
banking
|
2,571
|
9,080
|
11,446
|
21,763
|
10,580
|
|
44,860
|
58,053
|
Credit card, debit card
and merchant fees
|
15,750
|
14,497
|
16,593
|
11,321
|
12,016
|
|
58,160
|
42,636
|
Deposit service
charges
|
16,863
|
19,134
|
18,291
|
19,189
|
16,958
|
|
73,478
|
46,418
|
Security (losses)
gains, net
|
(595)
|
(139)
|
1,446
|
(1,097)
|
(378)
|
|
(384)
|
(395)
|
Insurance
commissions
|
34,679
|
39,876
|
39,994
|
35,727
|
32,637
|
|
150,275
|
135,183
|
Wealth
management
|
19,199
|
19,335
|
20,213
|
21,737
|
16,352
|
|
80,486
|
39,507
|
Gain on sale of PPP
loans
|
—
|
—
|
—
|
—
|
—
|
|
—
|
21,572
|
Other noninterest
income
|
26,406
|
22,708
|
17,251
|
19,795
|
15,689
|
|
86,157
|
35,179
|
Total noninterest
revenue
|
114,873
|
124,491
|
125,234
|
128,435
|
103,854
|
|
493,032
|
378,153
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
183,918
|
191,193
|
182,094
|
187,819
|
149,599
|
|
745,023
|
471,815
|
Occupancy and
equipment
|
30,539
|
30,610
|
30,129
|
28,270
|
26,885
|
|
119,548
|
81,394
|
Data processing and
software
|
29,289
|
28,079
|
29,081
|
27,483
|
24,838
|
|
113,932
|
73,085
|
Merger
expense
|
20,276
|
19,690
|
7,274
|
3,974
|
44,843
|
|
51,214
|
59,896
|
Amortization of
intangibles
|
5,251
|
5,417
|
3,042
|
6,780
|
5,473
|
|
20,490
|
12,616
|
Deposit insurance
assessments
|
5,931
|
4,499
|
4,945
|
3,336
|
3,278
|
|
18,712
|
8,701
|
Pension settlement
expense
|
6,127
|
2,896
|
—
|
—
|
651
|
|
9,023
|
3,051
|
Other noninterest
expense
|
59,340
|
37,350
|
29,323
|
34,005
|
33,627
|
|
160,018
|
88,332
|
Total noninterest
expense
|
340,671
|
319,734
|
285,888
|
291,667
|
289,194
|
|
1,237,960
|
798,890
|
Income (loss) before
income taxes
|
127,562
|
160,111
|
163,112
|
148,590
|
(47,690)
|
|
599,375
|
246,928
|
Income tax expense
(benefit)
|
29,628
|
36,713
|
36,154
|
33,643
|
(13,033)
|
|
136,138
|
51,766
|
Net income
(loss)
|
97,934
|
123,398
|
126,958
|
114,947
|
(34,657)
|
|
463,237
|
195,162
|
Less: Preferred
dividends
|
2,372
|
2,372
|
2,372
|
2,372
|
2,372
|
|
9,488
|
9,488
|
Net income (loss)
available to common shareholders
|
$ 95,562
|
$
121,026
|
$
124,586
|
$
112,575
|
$
(37,029)
|
|
$
453,749
|
$
185,674
|
Net income (loss) per
common share: Diluted
|
$
0.52
|
$
0.66
|
$
0.68
|
$
0.60
|
$
(0.22)
|
|
$
2.46
|
$
1.54
|
Table
7
Selected Loan
Portfolio Data
(Unaudited)
|
|
|
Quarter
Ended
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
Non-real
estate
|
$ 8,985,547
|
$ 8,803,381
|
$ 8,526,481
|
$ 8,017,958
|
$ 7,847,473
|
Owner
occupied
|
4,068,659
|
3,943,442
|
3,851,336
|
3,703,914
|
3,567,746
|
Total commercial and
industrial
|
13,054,206
|
12,746,823
|
12,377,817
|
11,721,872
|
11,415,219
|
Commercial real
estate
|
|
|
|
|
|
Construction,
acquisition and development
|
3,547,986
|
3,244,425
|
2,982,119
|
3,028,514
|
2,924,343
|
Income
producing
|
5,150,680
|
5,098,470
|
5,054,232
|
4,795,486
|
4,924,369
|
Total commercial real
estate
|
8,698,666
|
8,342,895
|
8,036,351
|
7,824,000
|
7,848,712
|
Consumer
|
|
|
|
|
|
Residential
mortgages
|
8,319,242
|
7,924,378
|
7,662,621
|
7,355,995
|
7,311,306
|
Other
consumer
|
277,163
|
282,354
|
283,696
|
287,799
|
307,751
|
Total
consumer
|
8,596,405
|
8,206,732
|
7,946,317
|
7,643,794
|
7,619,057
|
Total loans and
leases, net of unearned
|
$
30,349,277
|
$
29,296,450
|
$
28,360,485
|
$
27,189,666
|
$
26,882,988
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
Non-performing Loans
and Leases
|
|
|
|
|
|
Nonaccrual Loans and
Leases
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
Non-real
estate
|
$
23,907
|
$
23,916
|
$
34,233
|
$
33,086
|
$
33,690
|
Owner
occupied
|
7,944
|
8,327
|
9,567
|
11,787
|
22,058
|
Total commercial and
industrial
|
31,851
|
32,243
|
43,800
|
44,873
|
55,748
|
Commercial real
estate
|
|
|
|
|
|
Construction,
acquisition and development
|
2,974
|
1,823
|
2,125
|
1,618
|
5,568
|
Income
producing
|
7,331
|
8,580
|
8,750
|
9,688
|
16,086
|
Total commercial real
estate
|
10,305
|
10,403
|
10,875
|
11,306
|
21,654
|
Consumer
|
|
|
|
|
|
Residential
mortgages
|
55,892
|
46,671
|
34,172
|
34,278
|
44,180
|
Other
consumer
|
697
|
614
|
521
|
574
|
522
|
Total
consumer
|
56,589
|
47,285
|
34,693
|
34,852
|
44,702
|
Total nonaccrual loans
and leases
|
$
98,745
|
$
89,931
|
$
89,368
|
$
91,031
|
$
122,104
|
|
|
|
|
|
|
Loans and Leases 90+
Days Past Due, Still Accruing
|
2,068
|
11,984
|
19,682
|
20,957
|
24,784
|
Restructured Loans and
Leases, Still Accruing
|
8,598
|
16,200
|
7,385
|
7,292
|
6,903
|
Total non-performing
loans and leases
|
$
109,411
|
$
118,115
|
$
116,435
|
$
119,280
|
$
153,791
|
|
|
|
|
|
|
Other Real Estate Owned
and Other Repossessed Assets
|
6,725
|
8,376
|
14,399
|
28,401
|
33,021
|
Total Non-performing
Assets
|
$
116,136
|
$
126,491
|
$
130,834
|
$
147,681
|
$
186,812
|
|
|
|
|
|
|
Additions to nonaccrual
loans and leases during the quarter (excluding
acquisitions)
|
$
38,945
|
$
34,432
|
$
21,312
|
$
16,374
|
$
22,158
|
Table
8
Allowance for Credit
Losses
(Unaudited)
|
|
|
Quarter
Ended
|
(Dollars in
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
ALLOWANCE FOR CREDIT
LOSSES:
|
|
|
|
|
|
Balance, beginning of
period
|
$ 433,363
|
$ 440,112
|
$ 438,738
|
$ 446,415
|
$ 260,276
|
Charge-offs:
|
|
|
|
|
|
Commercial and
industrial
|
(2,295)
|
(11,551)
|
(2,170)
|
(2,682)
|
(2,712)
|
Commercial real
estate
|
(426)
|
(1,116)
|
(275)
|
(313)
|
(586)
|
Consumer
|
(2,650)
|
(2,653)
|
(1,941)
|
(1,792)
|
(2,342)
|
Total loans
charged-off
|
(5,371)
|
(15,320)
|
(4,386)
|
(4,787)
|
(5,640)
|
Recoveries:
|
|
|
|
|
|
Commercial and
industrial
|
6,405
|
3,657
|
3,217
|
3,178
|
7,835
|
Commercial real
estate
|
2,851
|
3,509
|
1,076
|
437
|
1,047
|
Consumer
|
1,099
|
1,405
|
1,467
|
1,612
|
1,521
|
Total
recoveries
|
10,355
|
8,571
|
5,760
|
5,227
|
10,403
|
Net recoveries
(charge-offs)
|
4,984
|
(6,749)
|
1,374
|
440
|
4,763
|
Initial allowance on
loans purchased with credit deterioration
|
—
|
—
|
—
|
(8,117)
|
62,321
|
Provision:
|
|
|
|
|
|
Loans and leases
acquired during the quarter
|
—
|
—
|
—
|
—
|
119,055
|
Provision for credit
losses related to loans and leases
|
2,000
|
—
|
—
|
—
|
—
|
Total provision for
loans and leases
|
2,000
|
—
|
—
|
—
|
119,055
|
Balance, end of
period
|
$ 440,347
|
$ 433,363
|
$ 440,112
|
$ 438,738
|
$ 446,415
|
|
|
|
|
|
|
Average loans and
leases, net of unearned, for period
|
$ 29,812,924
|
$ 28,872,156
|
$ 27,848,097
|
$ 27,106,733
|
$ 22,745,093
|
Ratio: Net (recoveries)
charge-offs to average loans and leases
(2)
|
(0.07) %
|
0.09 %
|
(0.02) %
|
(0.01) %
|
(0.08) %
|
|
|
|
|
|
|
RESERVE FOR UNFUNDED
COMMITMENTS (1)
|
|
|
|
|
|
Balance, beginning of
period
|
$
24,551
|
$
24,551
|
$
23,551
|
$
23,551
|
$
9,044
|
Provision for unfunded
commitments for loans acquired during the quarter
|
—
|
—
|
—
|
—
|
13,007
|
Provision for credit
losses for unfunded commitments
|
4,000
|
—
|
1,000
|
—
|
1,500
|
Balance, end of
period
|
$
28,551
|
$
24,551
|
$
24,551
|
$
23,551
|
$
23,551
|
|
|
(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)
|
|
|
December 31,
2022
|
(In
thousands)
|
Pass
|
Special
Mention
|
Substandard
|
Impaired
|
Purchased
Credit
Deteriorated
(Loss)
|
Total
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
Non-real
estate
|
$
8,735,337
|
$
37,389
|
$ 205,246
|
$
3,375
|
$
4,200
|
$
8,985,547
|
Owner
occupied
|
4,024,179
|
6,062
|
32,912
|
3,824
|
1,682
|
4,068,659
|
Total commercial and
industrial
|
12,759,516
|
43,451
|
238,158
|
7,199
|
5,882
|
13,054,206
|
Commercial real
estate
|
|
|
|
|
|
|
Construction,
acquisition and development
|
3,498,990
|
18,667
|
23,073
|
—
|
7,256
|
3,547,986
|
Income
producing
|
5,035,880
|
27,330
|
68,948
|
—
|
18,522
|
5,150,680
|
Total commercial real
estate
|
8,534,870
|
45,997
|
92,021
|
—
|
25,778
|
8,698,666
|
Consumer
|
|
|
|
|
|
|
Residential
mortgages
|
8,159,904
|
232
|
157,532
|
—
|
1,574
|
8,319,242
|
Other
consumer
|
272,182
|
—
|
4,981
|
—
|
—
|
277,163
|
Total
consumer
|
8,432,086
|
232
|
162,513
|
—
|
1,574
|
8,596,405
|
Total loans and leases,
net of unearned
|
$ 29,726,472
|
$
89,680
|
$ 492,692
|
$
7,199
|
$
33,234
|
$ 30,349,277
|
|
|
September 30,
2022
|
(In
thousands)
|
Pass
|
Special
Mention
|
Substandard
|
Impaired
|
Purchased
Credit
Deteriorated
(Loss)
|
Total
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
Non-real
estate
|
$
8,564,230
|
$
60,616
|
$
168,174
|
$
5,947
|
$
4,414
|
$
8,803,381
|
Owner
occupied
|
3,899,192
|
1,758
|
37,019
|
3,576
|
1,897
|
3,943,442
|
Total commercial and
industrial
|
12,463,422
|
62,374
|
205,193
|
9,523
|
6,311
|
12,746,823
|
Commercial real
estate
|
|
|
|
|
|
|
Construction,
acquisition and development
|
3,216,949
|
17,597
|
3,725
|
—
|
6,154
|
3,244,425
|
Income
producing
|
4,973,000
|
14,363
|
89,573
|
705
|
20,829
|
5,098,470
|
Total commercial real
estate
|
8,189,949
|
31,960
|
93,298
|
705
|
26,983
|
8,342,895
|
Consumer
|
|
|
|
|
|
|
Residential
mortgages
|
7,789,212
|
1,156
|
132,510
|
—
|
1,500
|
7,924,378
|
Other
consumer
|
278,815
|
—
|
3,539
|
—
|
—
|
282,354
|
Total
consumer
|
8,068,027
|
1,156
|
136,049
|
—
|
1,500
|
8,206,732
|
Total loans and leases,
net of unearned
|
$
28,721,398
|
$
95,490
|
$
434,540
|
$
10,228
|
$
34,794
|
$
29,296,450
|
Table
10
Geographical Loan
Information
(Unaudited)
|
|
|
December 31,
2022
|
(Dollars in
thousands)
|
Alabama
|
Arkansas
|
Florida
|
Georgia
|
Louisiana
|
Mississippi
|
Missouri
|
Tennessee
|
Texas
|
Other
|
Total
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
|
|
|
|
|
Non-real
estate
|
$
367,656
|
$
156,600
|
$
446,454
|
$
543,854
|
$
317,127
|
$
515,897
|
$
67,208
|
$
315,410
|
$
3,948,846
|
$
2,306,495
|
$
8,985,547
|
Owner
occupied
|
370,125
|
248,015
|
296,159
|
304,096
|
287,915
|
553,376
|
96,500
|
177,315
|
1,481,888
|
253,270
|
4,068,659
|
Total commercial and
industrial
|
737,781
|
404,615
|
742,613
|
847,950
|
605,042
|
1,069,273
|
163,708
|
492,725
|
5,430,734
|
2,559,765
|
13,054,206
|
Commercial real
estate
|
|
|
|
|
|
|
|
|
|
|
|
Construction,
acquisition and development
|
226,990
|
82,356
|
180,017
|
396,250
|
54,945
|
246,402
|
35,861
|
162,977
|
1,738,098
|
424,090
|
3,547,986
|
Income
producing
|
425,617
|
260,602
|
369,848
|
580,819
|
216,519
|
403,491
|
188,775
|
302,252
|
1,900,831
|
501,926
|
5,150,680
|
Total commercial real
estate
|
652,607
|
342,958
|
549,865
|
977,069
|
271,464
|
649,893
|
224,636
|
465,229
|
3,638,929
|
926,016
|
8,698,666
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
1,155,001
|
374,544
|
574,308
|
373,371
|
442,087
|
1,044,746
|
150,952
|
647,556
|
3,301,528
|
255,149
|
8,319,242
|
Other
consumer
|
31,270
|
17,816
|
5,294
|
12,827
|
12,487
|
86,499
|
1,439
|
17,115
|
63,029
|
29,387
|
277,163
|
Total
consumer
|
1,186,271
|
392,360
|
579,602
|
386,198
|
454,574
|
1,131,245
|
152,391
|
664,671
|
3,364,557
|
284,536
|
8,596,405
|
Total loans and
leases, net of unearned income
|
$
2,576,659
|
$
1,139,933
|
$
1,872,080
|
$
2,211,217
|
$
1,331,080
|
$
2,850,411
|
$
540,735
|
$
1,622,625
|
$
12,434,220
|
$
3,770,317
|
$
30,349,277
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan growth, excluding
loans acquired
during the quarter ($)
|
$
110,090
|
$
26,719
|
$
72,185
|
$
61,537
|
$
(22,564)
|
$
113,387
|
$ 6,371
|
$
74,638
|
$
484,022
|
$
126,442
|
$
1,052,827
|
Loan growth, excluding
loans acquired
during the quarter (%) (annualized)
|
17.71 %
|
9.52 %
|
15.91 %
|
11.36 %
|
(6.61) %
|
16.44 %
|
4.73 %
|
19.13 %
|
16.07 %
|
13.77 %
|
14.26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2022
|
(Dollars in
thousands)
|
Alabama
|
Arkansas
|
Florida
|
Georgia
|
Louisiana
|
Mississippi
|
Missouri
|
Tennessee
|
Texas
|
Other
|
Total
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
|
|
|
|
|
Non-real
estate
|
$ 349,832
|
$ 162,760
|
$ 393,595
|
$ 519,730
|
$ 345,539
|
$ 475,031
|
$
65,512
|
$ 321,528
|
$
3,812,763
|
$
2,357,091
|
$
8,803,381
|
Owner
occupied
|
349,354
|
244,482
|
323,891
|
279,264
|
290,926
|
554,072
|
91,611
|
172,550
|
1,456,766
|
180,526
|
3,943,442
|
Total commercial and
industrial
|
699,186
|
407,242
|
717,486
|
798,994
|
636,465
|
1,029,103
|
157,123
|
494,078
|
5,269,529
|
2,537,617
|
12,746,823
|
Commercial real
estate
|
|
|
|
|
|
|
|
|
|
|
|
Construction,
acquisition and development
|
191,703
|
81,362
|
210,076
|
328,010
|
58,871
|
204,065
|
33,441
|
148,321
|
1,620,083
|
368,493
|
3,244,425
|
Income
producing
|
428,514
|
250,807
|
329,519
|
654,233
|
212,723
|
439,077
|
193,106
|
289,768
|
1,875,365
|
425,358
|
5,098,470
|
Total commercial real
estate
|
620,217
|
332,169
|
539,595
|
982,243
|
271,594
|
643,142
|
226,547
|
438,089
|
3,495,448
|
793,851
|
8,342,895
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
1,120,555
|
363,247
|
537,874
|
354,043
|
435,941
|
1,009,632
|
149,603
|
605,962
|
3,126,062
|
221,459
|
7,924,378
|
Other
consumer
|
26,611
|
10,556
|
4,940
|
14,400
|
9,644
|
55,147
|
1,091
|
9,858
|
59,159
|
90,948
|
282,354
|
Total
consumer
|
1,147,166
|
373,803
|
542,814
|
368,443
|
445,585
|
1,064,779
|
150,694
|
615,820
|
3,185,221
|
312,407
|
8,206,732
|
Total loans and
leases, net of unearned
|
$
2,466,569
|
$
1,113,214
|
$
1,799,895
|
$
2,149,680
|
$
1,353,644
|
$
2,737,024
|
$ 534,364
|
$
1,547,987
|
$ 11,950,198
|
$
3,643,875
|
$
29,296,450
|
Table
11
Noninterest Revenue
and Expense
(Unaudited)
|
|
|
Quarter
Ended
|
|
Year-to-date
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
NONINTEREST
REVENUE:
|
|
|
|
|
|
|
|
|
Mortgage banking excl.
MSR and MSR
hedge market value adjustment
|
$
5,408
|
$
4,746
|
$
6,754
|
$
7,733
|
$
7,963
|
|
$ 24,642
|
$ 47,914
|
MSR and MSR hedge
market value adjustment
|
(2,837)
|
4,334
|
4,692
|
14,030
|
2,617
|
|
20,218
|
10,139
|
Credit card, debit card
and merchant fees
|
15,750
|
14,497
|
16,593
|
11,321
|
12,016
|
|
58,160
|
42,636
|
Deposit service
charges
|
16,863
|
19,134
|
18,291
|
19,189
|
16,958
|
|
73,478
|
46,418
|
Security (losses)
gains, net
|
(595)
|
(139)
|
1,446
|
(1,097)
|
(378)
|
|
(384)
|
(395)
|
Insurance
commissions
|
34,679
|
39,876
|
39,994
|
35,727
|
32,637
|
|
150,275
|
135,183
|
Trust income
|
9,113
|
9,011
|
9,129
|
10,061
|
7,892
|
|
37,314
|
22,190
|
Annuity fees
|
951
|
600
|
753
|
604
|
435
|
|
2,908
|
586
|
Brokerage commissions
and fees
|
9,135
|
9,724
|
10,331
|
11,072
|
8,025
|
|
40,264
|
16,731
|
Gain on sale of PPP
loans
|
—
|
—
|
—
|
—
|
—
|
|
—
|
21,572
|
Bank-owned life
insurance
|
5,436
|
3,537
|
3,285
|
3,336
|
3,098
|
|
15,594
|
11,180
|
Other miscellaneous
income
|
20,970
|
19,171
|
13,966
|
16,459
|
12,591
|
|
70,563
|
23,999
|
Total noninterest
revenue
|
$
114,873
|
$
124,491
|
$
125,234
|
$
128,435
|
$
103,854
|
|
$
493,032
|
$
378,153
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
$
183,918
|
$
191,193
|
$
182,094
|
$
187,819
|
$
149,599
|
|
$
745,023
|
$
471,815
|
Occupancy and
equipment
|
30,539
|
30,610
|
30,129
|
28,270
|
26,885
|
|
119,548
|
81,394
|
Deposit insurance
assessments
|
5,931
|
4,499
|
4,945
|
3,336
|
3,278
|
|
18,712
|
8,701
|
Pension settlement
expense
|
6,127
|
2,896
|
—
|
—
|
651
|
|
9,023
|
3,051
|
Advertising and public
relations
|
28,659
|
4,085
|
4,417
|
4,593
|
5,086
|
|
41,754
|
10,780
|
Foreclosed property
expense
|
400
|
1,093
|
(1,104)
|
440
|
689
|
|
832
|
4,548
|
Telecommunications
|
1,714
|
1,882
|
1,984
|
1,833
|
1,725
|
|
7,413
|
6,240
|
Travel and
entertainment
|
5,310
|
4,149
|
3,412
|
2,811
|
2,805
|
|
15,682
|
6,319
|
Data processing and
software
|
29,289
|
28,079
|
29,081
|
27,483
|
24,838
|
|
113,932
|
73,085
|
Professional,
consulting and outsourcing
|
3,598
|
2,724
|
3,769
|
3,737
|
3,127
|
|
13,828
|
7,465
|
Amortization of
intangibles
|
5,251
|
5,417
|
3,042
|
6,780
|
5,473
|
|
20,490
|
12,616
|
Legal
|
758
|
2,054
|
1,463
|
1,793
|
1,282
|
|
6,068
|
4,036
|
Merger
expense
|
20,276
|
19,690
|
7,274
|
3,974
|
44,843
|
|
51,214
|
59,896
|
Postage and
shipping
|
1,925
|
2,098
|
2,022
|
2,034
|
1,772
|
|
8,079
|
6,050
|
Other miscellaneous
expense
|
16,976
|
19,265
|
13,360
|
16,764
|
17,141
|
|
66,362
|
42,894
|
Total noninterest
expense
|
$
340,671
|
$
319,734
|
$
285,888
|
$
291,667
|
$
289,194
|
|
$ 1,237,960
|
$
798,890
|
|
|
|
|
|
|
|
|
|
INSURANCE
COMMISSIONS:
|
|
|
|
|
|
|
|
|
Property and casualty
commissions
|
$ 24,682
|
$ 30,021
|
$ 29,220
|
$ 25,852
|
$ 23,640
|
|
$
109,774
|
$ 98,042
|
Life and health
commissions
|
7,151
|
7,254
|
7,935
|
7,143
|
6,459
|
|
29,483
|
26,626
|
Risk management
income
|
887
|
654
|
674
|
757
|
699
|
|
2,972
|
2,599
|
Other
|
1,959
|
1,947
|
2,165
|
1,975
|
1,839
|
|
8,046
|
7,916
|
Total insurance
commissions
|
$ 34,679
|
$ 39,876
|
$ 39,994
|
$ 35,727
|
$ 32,637
|
|
$
150,275
|
$
135,183
|
Table
12
Average Balance and
Yields
(Unaudited)
|
|
|
Quarter
Ended
|
|
December 31,
2022
|
|
September 30,
2022
|
|
December 31,
2021
|
(Dollars in
thousands)
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases,
excluding accretion
|
$ 29,812,924
|
$
405,827
|
5.40 %
|
|
$
28,872,156
|
$
341,334
|
4.69 %
|
|
$ 22,745,093
|
$
233,585
|
4.07 %
|
Accretion income on
acquired loans
|
|
9,190
|
0.12
|
|
|
8,134
|
0.11
|
|
|
16,426
|
0.29
|
Loans held for
sale
|
62,517
|
1,788
|
11.35
|
|
103,312
|
2,241
|
8.61
|
|
220,766
|
1,324
|
2.38
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
11,767,062
|
45,807
|
1.54
|
|
12,833,857
|
46,701
|
1.44
|
|
12,636,302
|
37,258
|
1.17
|
Tax-exempt
|
389,741
|
3,224
|
3.28
|
|
418,971
|
3,225
|
3.05
|
|
318,245
|
2,035
|
2.54
|
Total investment
securities
|
12,156,803
|
49,031
|
1.60
|
|
13,252,828
|
49,926
|
1.49
|
|
12,954,547
|
39,293
|
1.20
|
Other
investments
|
943,806
|
8,783
|
3.69
|
|
851,185
|
4,976
|
2.32
|
|
1,289,997
|
822
|
0.25
|
Total interest-earning
assets
|
42,976,050
|
474,619
|
4.38 %
|
|
43,079,481
|
406,611
|
3.74 %
|
|
37,210,403
|
291,450
|
3.11 %
|
Other assets
|
5,249,229
|
|
|
|
4,957,118
|
|
|
|
4,189,688
|
|
|
Allowance for credit
losses
|
434,785
|
|
|
|
441,042
|
|
|
|
404,578
|
|
|
Total
assets
|
$ 47,790,494
|
|
|
|
$
47,595,557
|
|
|
|
$ 40,995,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand
and money market
|
$ 17,866,198
|
$ 60,253
|
1.34 %
|
|
$
18,675,214
|
$ 28,175
|
0.60 %
|
|
$ 15,811,268
|
8,922
|
0.22 %
|
Savings
deposits
|
3,555,911
|
2,769
|
0.31
|
|
3,720,218
|
1,597
|
0.17
|
|
3,374,243
|
766
|
0.09
|
Time
deposits
|
3,606,093
|
10,651
|
1.17
|
|
3,388,658
|
4,797
|
0.56
|
|
3,526,539
|
5,139
|
0.58
|
Total interest-bearing
deposits
|
25,028,202
|
73,673
|
1.17
|
|
25,784,090
|
34,569
|
0.53
|
|
22,712,050
|
14,827
|
0.26
|
Short-term
borrowings
|
3,912,921
|
35,667
|
3.62
|
|
2,263,810
|
10,765
|
1.89
|
|
727,674
|
200
|
0.11
|
Long-term
borrowings
|
462,927
|
4,848
|
4.15
|
|
464,843
|
4,871
|
4.16
|
|
441,165
|
4,387
|
3.95
|
Total interest-bearing
liabilities
|
29,404,050
|
114,188
|
1.54 %
|
|
28,512,743
|
50,205
|
0.70 %
|
|
23,880,889
|
19,414
|
0.32 %
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
13,344,152
|
|
|
|
13,816,796
|
|
|
|
12,047,637
|
|
|
Other
liabilities
|
826,707
|
|
|
|
759,363
|
|
|
|
558,393
|
|
|
Total
liabilities
|
43,574,909
|
|
|
|
43,088,902
|
|
|
|
36,486,919
|
|
|
Shareholders'
equity
|
4,215,585
|
|
|
|
4,506,655
|
|
|
|
4,508,594
|
|
|
Total liabilities and
shareholders' equity
|
$ 47,790,494
|
|
|
|
$
47,595,557
|
|
|
|
$ 40,995,513
|
|
|
Net interest income/net
interest spread
|
|
360,431
|
2.84 %
|
|
|
356,406
|
3.05 %
|
|
|
272,036
|
2.78 %
|
Net yield on earning
assets/net interest margin
|
|
|
3.33 %
|
|
|
|
3.28 %
|
|
|
|
2.90 %
|
Taxable equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
Loans and investment
securities
|
|
(1,071)
|
|
|
|
(1,052)
|
|
|
|
(824)
|
|
Net interest
revenue
|
|
$
359,360
|
|
|
|
$
355,354
|
|
|
|
$
271,212
|
|
Table
12
Average Balance and
Yields Cont.
|
|
|
Year-To-Date
|
|
December 31,
2022
|
|
December 31,
2021
|
(Dollars in
thousands)
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
ASSETS
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
Loans and leases,
excluding accretion
|
$
28,418,658
|
$
1,297,384
|
4.57 %
|
|
$
17,055,429
|
$ 733,448
|
4.30 %
|
Accretion income on
acquired loans
|
|
46,811
|
0.16
|
|
|
26,200
|
0.15
|
Loans held for
sale
|
122,079
|
7,554
|
6.19 %
|
|
278,447
|
8,035
|
2.89 %
|
Investment
securities
|
|
|
|
|
|
|
|
Taxable
|
13,163,403
|
183,918
|
1.40 %
|
|
9,152,620
|
111,050
|
1.21 %
|
Tax-exempt
|
432,969
|
12,758
|
2.95
|
|
157,327
|
4,381
|
2.78
|
Total investment
securities
|
13,596,372
|
196,676
|
1.45
|
|
9,309,947
|
115,431
|
1.24
|
Other
investments
|
926,253
|
16,380
|
1.77
|
|
638,559
|
1,323
|
0.21
|
Total interest-earning
assets
|
43,063,362
|
1,564,805
|
3.63 %
|
|
27,282,382
|
884,437
|
3.24
|
Other assets
|
4,909,491
|
|
|
|
3,001,809
|
|
|
Allowance for credit
losses
|
439,696
|
|
|
|
289,543
|
|
|
Total
assets
|
$
47,533,157
|
|
|
|
$
29,994,648
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
Interest bearing demand
and money market
|
$
18,541,402
|
109,893
|
0.59 %
|
|
$
11,114,242
|
$
33,688
|
0.30 %
|
Savings
deposits
|
3,657,718
|
5,519
|
0.15
|
|
2,946,629
|
2,764
|
0.09
|
Time
deposits
|
3,545,402
|
24,253
|
0.68
|
|
2,784,733
|
24,394
|
0.88
|
Total interest-bearing
deposits
|
25,744,522
|
139,665
|
0.54
|
|
16,845,604
|
60,846
|
0.36
|
Short-term
borrowings
|
2,249,354
|
50,295
|
2.24
|
|
713,788
|
838
|
0.12
|
Long-term
borrowings
|
465,004
|
19,330
|
4.16
|
|
341,170
|
14,638
|
4.29
|
Total interest-bearing
liabilities
|
28,458,880
|
209,290
|
0.74 %
|
|
17,900,562
|
76,322
|
0.43 %
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
Demand
deposits
|
13,733,384
|
|
|
|
8,382,997
|
|
|
Other
liabilities
|
766,490
|
|
|
|
373,514
|
|
|
Total
liabilities
|
42,958,754
|
|
|
|
26,657,073
|
|
|
Shareholders'
equity
|
4,574,403
|
|
|
|
3,337,575
|
|
|
Total liabilities and
shareholders' equity
|
$
47,533,157
|
|
|
|
$
29,994,648
|
|
|
Net interest income/net
interest spread
|
|
1,355,515
|
2.90 %
|
|
|
808,115
|
2.82 %
|
Net yield on earning
assets/net interest margin
|
|
|
3.15 %
|
|
|
|
2.96 %
|
Taxable equivalent
adjustment:
|
|
|
|
|
|
|
|
Loans and investment
securities
|
|
(4,212)
|
|
|
|
(2,388)
|
|
Net interest
revenue
|
|
$
1,351,303
|
|
|
|
$ 805,727
|
|
Table
13
Selected Additional
Data
(Unaudited)
|
|
|
Quarter
Ended
|
(Dollars in
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
MORTGAGE SERVICING
RIGHTS ("MSR"):
|
|
|
|
|
|
Fair value, beginning
of period
|
$ 112,767
|
$ 102,021
|
$
92,859
|
$
69,552
|
$
64,684
|
Originations of
servicing assets
|
2,282
|
3,890
|
4,962
|
5,155
|
5,709
|
Changes in fair
value:
|
|
|
|
|
|
Due to
payoffs/paydowns
|
(2,308)
|
(3,085)
|
(3,253)
|
(3,147)
|
(3,823)
|
Due to update in
valuation assumptions
|
(2,998)
|
9,941
|
7,453
|
21,299
|
2,982
|
Fair value, end of
period
|
$ 109,743
|
$ 112,767
|
$ 102,021
|
$
92,859
|
$
69,552
|
|
|
|
|
|
|
MORTGAGE BANKING
REVENUE:
|
|
|
|
|
|
Origination
|
$
1,793
|
$
1,916
|
$
4,042
|
$
5,118
|
$
5,970
|
Servicing
|
5,923
|
5,915
|
5,965
|
5,762
|
5,816
|
Payoffs/Paydowns
|
(2,308)
|
(3,085)
|
(3,253)
|
(3,147)
|
(3,823)
|
Total mortgage banking
revenue excluding MSR
|
5,408
|
4,746
|
6,754
|
7,733
|
7,963
|
Market value adjustment
on MSR
|
(2,998)
|
9,941
|
7,453
|
21,299
|
2,982
|
Market value adjustment
on MSR Hedge
|
161
|
(5,607)
|
(2,761)
|
(7,269)
|
(365)
|
Total mortgage banking
revenue
|
$
2,571
|
$
9,080
|
$
11,446
|
$
21,763
|
$
10,580
|
|
|
|
|
|
|
Mortgage loans
serviced
|
$
7,692,744
|
$
7,723,605
|
$
7,685,994
|
$
7,629,119
|
$
7,553,917
|
MSR/mortgage loans
serviced
|
1.43 %
|
1.46 %
|
1.33 %
|
1.22 %
|
0.92 %
|
|
|
Quarter
Ended
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
AVAILABLE-FOR-SALE
SECURITIES, at fair value
|
|
|
|
|
|
U.S. Treasury
securities
|
$ 1,458,513
|
$ 1,451,461
|
$ 1,466,313
|
$ 1,459,845
|
$ 1,496,465
|
Obligations of U.S.
government agencies
|
1,477,127
|
1,820,913
|
2,133,561
|
2,350,810
|
2,638,442
|
Mortgage-backed
securities issued or guaranteed by U.S. agencies
("MBS"):
|
|
|
|
|
|
Residential
pass-through:
|
|
|
|
|
|
Guaranteed by
GNMA
|
84,368
|
87,063
|
95,955
|
105,900
|
113,427
|
Issued by FNMA and
FHLMC
|
6,274,970
|
6,427,152
|
7,014,715
|
7,604,829
|
8,129,191
|
Other residential
mortgage-back securities
|
168,452
|
181,317
|
201,440
|
212,216
|
243,357
|
Commercial
mortgage-backed securities
|
1,881,853
|
1,880,949
|
1,899,785
|
1,951,367
|
2,061,133
|
Total MBS
|
8,409,643
|
8,576,481
|
9,211,895
|
9,874,312
|
10,547,108
|
Obligations of states
and political subdivisions
|
466,002
|
444,953
|
485,400
|
530,241
|
565,520
|
Other domestic debt
securities
|
82,718
|
98,615
|
101,313
|
103,117
|
63,645
|
Foreign debt
securities
|
50,093
|
49,471
|
52,139
|
53,281
|
295,290
|
Total
available-for-sale securities
|
$
11,944,096
|
$
12,441,894
|
$
13,450,621
|
$
14,371,606
|
$
15,606,470
|
Table
14
|
Reconciliation of
Non-GAAP Measures and Other Non-GAAP Ratio
Definitions
|
(Unaudited)
|
|
Management evaluates
the Company's capital position and adjusted performance by
utilizing certain financial measures not calculated in accordance
with GAAP, including adjusted net income, adjusted net income
available to common shareholders, pre-tax pre-provision net
revenue, adjusted pre-tax pre-provision net revenue, total adjusted
noninterest expense, tangible common shareholders' equity to
tangible assets, total shareholders' equity (excluding AOCI),
common shareholders' equity (excluding AOCI), tangible common
shareholders' equity to tangible assets (excluding AOCI), return on
average tangible common equity, adjusted return on average tangible
common equity, adjusted return on average assets, adjusted return
on average common shareholders' equity, 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), and
adjusted dividend payout ratio. The Company has included these
non-GAAP financial measures in this release for the applicable
periods presented. Management believes that the presentation of
these non-GAAP financial measures: (i) provides important
supplemental information that contributes to a proper understanding
of the Company's capital position and adjusted performance, (ii)
enables a more complete understanding of factors and trends
affecting the Company's business and (iii) allows investors to
evaluate the Company's performance in a manner similar to
management, the financial services industry, bank stock analysts
and bank regulators. Reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures
are presented in the tables below. These non-GAAP financial
measures should not be considered as substitutes for GAAP financial
measures, and the Company strongly encourages investors to review
the GAAP financial measures included in this news release and not
to place undue reliance upon any single financial measure. In
addition, because non-GAAP financial measures are not standardized,
it may not be possible to compare the non-GAAP financial measures
presented in this news release with other companies' non-GAAP
financial measures having the same or similar names.
|
|
Quarter
Ended
|
|
Year-to-date
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
Adjusted net income
available to common shareholders
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
97,934
|
$
123,398
|
$
126,958
|
$
114,947
|
$
(34,657)
|
|
$
463,237
|
$
195,162
|
Plus: Merger
expense
|
20,276
|
19,690
|
7,274
|
3,974
|
44,843
|
|
51,214
|
59,896
|
Incremental merger
related expense
|
32,704
|
6,912
|
6,060
|
6,571
|
4,633
|
|
52,247
|
4,633
|
Initial provision for
acquired loans
|
—
|
—
|
—
|
—
|
132,062
|
|
—
|
143,562
|
Branch closing
expense
|
2,254
|
6
|
705
|
128
|
—
|
|
3,094
|
—
|
Pension settlement
expense
|
6,127
|
2,896
|
—
|
—
|
651
|
|
9,023
|
3,051
|
Less: Security (losses)
gains, net
|
(595)
|
(139)
|
1,446
|
(1,097)
|
(378)
|
|
(384)
|
(395)
|
Tax
adjustment
|
14,665
|
7,016
|
2,981
|
2,786
|
41,453
|
|
27,448
|
48,681
|
Adjusted net
income
|
145,225
|
146,025
|
136,570
|
123,931
|
106,457
|
|
551,751
|
358,018
|
Less: Preferred
dividends
|
2,372
|
2,372
|
2,372
|
2,372
|
2,372
|
|
9,488
|
9,488
|
Adjusted net income
available to common shareholders
|
$
142,853
|
$
143,653
|
$
134,198
|
$
121,559
|
$
104,085
|
|
$
542,263
|
$
348,530
|
|
|
Quarter
Ended
|
|
Year-to-date
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
Pre-tax pre-provision
net revenue
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
97,934
|
$
123,398
|
$
126,958
|
$
114,947
|
$
(34,657)
|
|
$
463,237
|
$
195,162
|
Plus: Provision for
credit losses
|
6,000
|
—
|
1,000
|
—
|
133,562
|
|
7,000
|
138,062
|
Income tax expense
(benefit)
|
29,628
|
36,713
|
36,154
|
33,643
|
(13,033)
|
|
136,138
|
51,766
|
Pre-tax pre-provision
net revenue
|
$
133,562
|
$
160,111
|
$
164,112
|
$
148,590
|
$
85,872
|
|
$
606,375
|
$
384,990
|
|
|
Quarter
Ended
|
|
Year-to-date
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
Adjusted pre-tax
pre-provision net revenue
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
97,934
|
$
123,398
|
$
126,958
|
$
114,947
|
$
(34,657)
|
|
$
463,237
|
$
195,162
|
Plus: Provision for
credit losses
|
6,000
|
—
|
1,000
|
—
|
133,562
|
|
7,000
|
138,062
|
Merger
expense
|
20,276
|
19,690
|
7,274
|
3,974
|
44,843
|
|
51,214
|
59,896
|
Incremental merger
related expense
|
32,704
|
6,912
|
6,060
|
6,571
|
4,633
|
|
52,247
|
4,633
|
Branch closing
expense
|
2,254
|
6
|
705
|
128
|
—
|
|
3,094
|
—
|
Pension settlement
expense
|
6,127
|
2,896
|
—
|
—
|
651
|
|
9,023
|
3,051
|
Income tax expense
(benefit)
|
29,628
|
36,713
|
36,154
|
33,643
|
(13,033)
|
|
136,138
|
51,766
|
Less: Security (losses)
gains, net
|
(595)
|
(139)
|
1,446
|
(1,097)
|
(378)
|
|
(384)
|
(395)
|
Adjusted pre-tax
pre-provision net revenue
|
$
195,518
|
$
189,754
|
$
176,705
|
$
160,360
|
$
136,377
|
|
$
722,337
|
$
452,965
|
|
|
Quarter
Ended
|
|
Year-to-date
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
Total adjusted
noninterest expense
|
|
|
|
|
|
|
|
|
Total noninterest
expense
|
$
340,671
|
$
319,734
|
$
285,888
|
$
291,667
|
$
289,194
|
|
$
1,237,960
|
$
798,890
|
Less: Merger
expense
|
20,276
|
19,690
|
7,274
|
3,974
|
44,843
|
|
51,214
|
59,896
|
Incremental merger
related expense
|
32,704
|
6,912
|
6,060
|
6,571
|
4,633
|
|
52,247
|
4,633
|
Branch closing
expense
|
2,254
|
6
|
705
|
128
|
—
|
|
3,094
|
—
|
Pension settlement
expense
|
6,127
|
2,896
|
—
|
—
|
651
|
|
9,023
|
3,051
|
Total adjusted
noninterest expense
|
$
279,310
|
$
290,230
|
$
271,849
|
$
280,994
|
$
239,067
|
|
$
1,122,382
|
$
731,310
|
|
|
Quarter
Ended
|
|
Year-to-date
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
Total tangible assets,
excluding AOCI
|
|
|
|
|
|
|
|
|
Total assets
|
$
48,653,414
|
$
47,699,660
|
$
47,747,708
|
$
47,204,061
|
$
47,669,751
|
|
$
48,653,414
|
$
47,669,751
|
Less:
Goodwill
|
1,458,795
|
1,449,511
|
1,444,209
|
1,409,038
|
1,407,948
|
|
1,458,795
|
1,407,948
|
Other identifiable
intangible assets
|
132,764
|
132,953
|
138,370
|
191,642
|
198,271
|
|
132,764
|
198,271
|
Total tangible
assets
|
47,061,855
|
46,117,196
|
46,165,129
|
45,603,381
|
46,063,532
|
|
47,061,855
|
46,063,532
|
Less: AOCI
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
(664,000)
|
(139,369)
|
|
(1,222,538)
|
(139,369)
|
Total tangible assets,
excluding AOCI
|
$
48,284,393
|
$
47,415,008
|
$
47,101,474
|
$
46,267,381
|
$
46,202,901
|
|
$
48,284,393
|
$
46,202,901
|
|
|
Quarter
Ended
|
|
Year-to-date
|
(In
thousands)
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
Mar 2022
|
Dec 2021
|
|
Dec 2022
|
Dec 2021
|
PERIOD END
BALANCES:
|
|
|
|
|
|
|
|
|
Total shareholders'
equity, excluding AOCI
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
4,311,374
|
$
4,166,925
|
$
4,437,925
|
$
4,643,757
|
$
5,247,987
|
|
$
4,311,374
|
$
5,247,987
|
Less: AOCI
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
(664,000)
|
(139,369)
|
|
(1,222,538)
|
(139,369)
|
Total shareholders'
equity, excluding AOCI
|
$
5,533,912
|
$
5,464,737
|
$
5,374,270
|
$
5,307,757
|
$
5,387,356
|
|
$
5,533,912
|
$
5,387,356
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity, excluding AOCI
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
4,311,374
|
$
4,166,925
|
$
4,437,925
|
$
4,643,757
|
$
5,247,987
|
|
$
4,311,374
|
$
5,247,987
|
Less: preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
|
166,993
|
166,993
|
Common shareholders'
equity
|
4,144,381
|
3,999,932
|
4,270,932
|
4,476,764
|
5,080,994
|
|
4,144,381
|
5,080,994
|
Less: AOCI
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
(664,000)
|
(139,369)
|
|
(1,222,538)
|
(139,369)
|
Common shareholders'
equity, excluding AOCI
|
$
5,366,919
|
$
5,297,744
|
$
5,207,277
|
$
5,140,764
|
$
5,220,363
|
|
$
5,366,919
|
$
5,220,363
|
|
|
|
|
|
|
|
|
|
Total tangible common
shareholders' equity, excluding AOCI
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
4,311,374
|
$
4,166,925
|
$
4,437,925
|
$
4,643,757
|
$
5,247,987
|
|
$
4,311,374
|
$
5,247,987
|
Less:
Goodwill
|
1,458,795
|
1,449,511
|
1,444,209
|
1,409,038
|
1,407,948
|
|
1,458,795
|
1,407,948
|
Other identifiable
intangible assets
|
132,764
|
132,953
|
138,370
|
191,642
|
198,271
|
|
132,764
|
198,271
|
Preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
|
166,993
|
166,993
|
Total tangible common
shareholders' equity
|
2,552,822
|
2,417,468
|
2,688,353
|
2,876,084
|
3,474,775
|
|
2,552,822
|
3,474,775
|
Less: AOCI
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
(664,000)
|
(139,369)
|
|
(1,222,538)
|
(139,369)
|
Total tangible common
shareholders' equity, excluding AOCI
|
$
3,775,360
|
$
3,715,280
|
$
3,624,698
|
$
3,540,084
|
$
3,614,144
|
|
$
3,775,360
|
$
3,614,144
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES:
|
|
|
|
|
|
|
|
|
Total tangible common
shareholders' equity
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
4,215,585
|
$
4,506,655
|
$
4,523,189
|
$
5,062,231
|
$
4,508,594
|
|
$
4,574,403
|
$
3,337,575
|
Less:
Goodwill
|
1,457,120
|
1,444,331
|
1,407,452
|
1,407,973
|
1,115,502
|
|
1,429,395
|
959,586
|
Other identifiable
intangible assets
|
132,091
|
136,149
|
188,897
|
195,606
|
106,559
|
|
162,938
|
66,996
|
Preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
|
166,993
|
166,993
|
Total tangible common
shareholders' equity
|
$
2,459,381
|
$
2,759,182
|
$
2,759,847
|
$
3,291,659
|
$
3,119,540
|
|
$
2,815,077
|
$
2,144,000
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
$
47,790,494
|
$
47,595,557
|
$
47,064,829
|
$
47,679,850
|
$
40,995,513
|
|
$
47,533,157
|
$
29,994,648
|
Total shares of common
stock outstanding
|
182,437,265
|
182,438,780
|
182,461,786
|
183,488,844
|
188,337,658
|
|
182,437,265
|
188,337,658
|
Average shares
outstanding-diluted
|
183,762,008
|
183,313,831
|
183,711,402
|
187,264,335
|
164,720,656
|
|
184,498,472
|
120,668,695
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity to tangible assets (1)
|
5.42 %
|
5.24 %
|
5.82 %
|
6.31 %
|
7.54 %
|
|
5.42 %
|
7.54 %
|
Tangible common
shareholders' equity to tangible assets, excluding AOCI
(2)
|
7.82
|
7.84
|
7.70
|
7.65
|
7.82
|
|
7.82
|
7.82
|
Return on average
tangible common equity (3)
|
15.42
|
17.40
|
18.11
|
13.87
|
(4.71)
|
|
16.12
|
8.66
|
Adjusted return on
average tangible common equity (4)
|
23.04
|
20.66
|
19.50
|
14.98
|
13.24
|
|
19.26
|
16.26
|
Adjusted return on
average assets (5)
|
1.21
|
1.22
|
1.16
|
1.05
|
1.03
|
|
1.16
|
1.19
|
Adjusted return on
average common shareholders' equity (6)
|
14.00
|
13.13
|
12.36
|
10.07
|
9.51
|
|
12.30
|
10.99
|
Pre-tax pre-provision
net revenue to total average assets (7)
|
1.11
|
1.33
|
1.40
|
1.26
|
0.83
|
|
1.28
|
1.28
|
Adjusted pre-tax
pre-provision net revenue to total average assets
(8)
|
1.62
|
1.58
|
1.51
|
1.36
|
1.32
|
|
1.52
|
1.51
|
Tangible book value per
common share (9)
|
$
13.99
|
$
13.25
|
$
14.73
|
$
15.67
|
$
18.45
|
|
$
13.99
|
$
18.45
|
Tangible book value per
common share, excluding AOCI (10)
|
20.69
|
20.36
|
19.87
|
19.29
|
19.19
|
|
20.69
|
19.19
|
Adjusted earnings per
common share (11)
|
$
0.78
|
$
0.78
|
$
0.73
|
$
0.65
|
$
0.63
|
|
$
2.94
|
$
2.89
|
Adjusted dividend
payout ratio (12)
|
28.21 %
|
28.21 %
|
30.14 %
|
33.85 %
|
31.75 %
|
|
29.93 %
|
26.99 %
|
Definitions of Non-GAAP
Measures:
|
(1)
|
Tangible common
shareholders' equity to tangible assets is defined by the Company
as total shareholders' equity less preferred stock, goodwill and
other identifiable intangible assets, divided by the difference of
total assets less goodwill and other identifiable intangible
assets.
|
(2)
|
Tangible common
shareholders' equity to tangible assets, excluding AOCI, is defined
by the Company as total shareholders' equity less preferred stock,
goodwill, other identifiable intangible assets and accumulated
other comprehensive loss, divided by the difference of total assets
less goodwill, accumulated other comprehensive loss, and other
identifiable intangible assets.
|
(3)
|
Return on average
tangible common equity is defined by the Company as annualized net
income available to common shareholders divided by average tangible
common shareholders equity.
|
(4)
|
Adjusted return on
average tangible common equity is defined by the Company as
annualized net adjusted income available to common shareholders
divided by average tangible common shareholders' equity.
|
(5)
|
Adjusted return on
average assets is defined by the Company as annualized net adjusted
income divided by total average assets.
|
(6)
|
Adjusted return on
average common shareholders' equity is defined by the Company as
annualized net adjusted income available to common shareholders
divided by average common shareholders' equity.
|
(7)
|
Pre-tax pre-provision
net revenue to total average assets is defined by the Company as
annualized pre-tax pre-provision net revenue divided by total
average assets.
|
(8)
|
Adjusted pre-tax
pre-provision net revenue to total average assets is defined by the
Company as annualized adjusted pre-tax pre-provision net revenue
divided by total average assets adjusted for items included in the
definition and calculation of net adjusted income.
|
(9)
|
Tangible book value per
common share is defined by the Company as tangible common
shareholders' equity divided by total shares of common stock
outstanding.
|
(10)
|
Tangible book value per
common share, excluding AOCI is defined by the Company as tangible
common shareholders' equity less accumulated other comprehensive
loss divided by total shares of common stock
outstanding.
|
(11)
|
Adjusted earnings per
common share is defined by the Company as net adjusted income
available to common shareholders divided by average common shares
outstanding-diluted.
|
(12)
|
Adjusted dividend
payout ratio is defined by the Company as common share dividends
divided by net adjusted income available to common
shareholders.
|
Efficiency Ratio-Fully Taxable Equivalent and Adjusted
Efficiency Ratio-Fully Taxable Equivalent Definitions
The efficiency ratio and the adjusted efficiency ratio are
supplemental financial measures utilized in management's internal
evaluation of the Company's use of resources and are not defined
under GAAP. The efficiency ratio is calculated by dividing total
noninterest expense by total revenue, which includes net interest
income plus noninterest income plus the tax equivalent adjustment.
The adjusted efficiency ratio excludes income and expense items
otherwise disclosed as non-routine from total noninterest
expense.
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SOURCE Cadence Bank