Cadence Bank (NYSE:CADE) (the Company), today announced financial results for the quarter and year ended December 31, 2024.
https://mma.prnewswire.com/media/2604070/Cadence_Bank_2024_Q4_Earnings_Fact_Sheet.pdf?p=pdfthumbnail
Annual highlights for 2024 included:
— Achieved net income available to common shareholders of $514.1 million, or $2.77 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 $507.9 million, or $2.74 per diluted common share, an increase of 24.5% on a per share basis compared to 2023.
— Reported annual adjusted pre-tax pre-provision net revenue (PPNR) from continuing operations(1) of $739.0 million, or 1.54% of average assets, an increase of $126.7 million, or 20.7%, compared to 2023.
— Generated net organic loan growth of $1.2 billion, or 3.8% for the year while core customer deposits, which exclude brokered deposits and public funds, increased $2.2 billion, or 6.9%.
— Increased net interest margin for the year by 22 basis points to 3.30%.
— Achieved continued improvement in operating leverage reflected in a decline in the adjusted efficiency ratio(1) from 63.3% in 2023 to 58.4% in 2024.
— Realized stable net charge-offs as a percent of average loans in 2024 of 0.24%, and criticized loans improved 5.9% to $794.5 million at December 31, 2024.
— Repurchased 1,237,021 shares of Company common stock at a weighted average price of $26.74; tangible book value per common share(1) increased to $21.54 per share at December 31, 2024, up $2.22 per share, or 11.5%, compared to December 31, 2023 while tangible common shareholders' equity to tangible assets(1) increased from 7.44% to 8.67% over the same time period.
Highlights for the fourth quarter of 2024 included:
— Reported quarterly net income available to common shareholders of $130.3 million, or $0.70 per diluted common share, and adjusted net income from continuing operations available to common shareholders(1) of $130.0 million, or $0.70 per diluted common share.
— Achieved quarterly adjusted PPNR from continuing operations(1) of $184.0 million, which is down $5.9 million compared to the third quarter of 2024 and up $46.1 million from the fourth quarter of 2023.
— Generated net organic loan growth of $437.8 million for the fourth quarter of 2024, or 5.2% on an annualized basis.
— Grew core customer deposits by $259.6 million in the fourth quarter, or 3.0% annualized, excluding the $435.0 million in temporary overnight sweep activity included in the September 30, 2024 deposit totals.
— Continued to improve net interest margin, increasing 7 basis points compared to the third quarter of 2024 to 3.38%.
— Realized 0.17% in annualized net charge-offs as a percent of average loans, improved 9 basis points from the linked quarter, and a $15.0 million provision for credit losses resulting in a 1.37% allowance for credit losses as a percent of loans. Additionally, criticized and classified loan levels as well as total nonperforming loans improved compared to the linked quarter.
— Maintained strong regulatory capital with Common Equity Tier 1 Capital of 12.4% and Total Capital of 14.0%.
Quarterly dividend increase and approval:
— At its regular quarterly meeting today, the Board of Directors of the Company declared quarterly cash dividends of $0.275 per common share of stock and $0.34375 per share of Series A Preferred Stock. The common stock dividend represents an increase of $0.025, or 10.0%, per share compared to the previous quarterly dividend of $0.25 per common share and is payable on April 1, 2025 to shareholders of record at the close of business on March 14, 2025. The preferred stock dividend is payable on February 20, 2025 to shareholders of record at the close of business on February 5, 2025.
“Our fourth quarter results reflect the culmination of a successful year of improved operating performance achieved through steady balance sheet growth, reduction of debt, stable credit quality, and improved net interest margin and operating efficiency,” remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. “This has been an exciting year for Cadence. We could feel the momentum in our business throughout the year, and the benefits of our footprint, business diversification and talented teammates shined through. This momentum was evidenced by strong capital generation, supporting both our future growth as well as a 10% increase in the quarterly dividend to common shareholders. Importantly, this momentum also fueled the 25% increase in our adjusted earnings from continuing operations per common share(1) for the year.”
Earnings Summary
All adjusted financial results discussed herein are adjusted results from continuing operations.(3)
For the year ended December 31, 2024, the Company reported net income available to common shareholders of $514.1 million, or $2.77 per diluted common share, compared with $532.8 million, or $2.92 per diluted common share, for the year ended December 31, 2023. The Company reported adjusted net income from continuing operations available to common shareholders(1) of $507.9 million, or $2.74 per diluted common share, for the year ended December 31, 2024 compared with $401.2 million, or $2.20 per diluted common share, for the year ended December 31, 2023. Additionally, the Company reported adjusted PPNR from continuing operations(1) of $739.0 million, or 1.54% of average assets, for the year ended December 31, 2024 compared with $612.3 million, or 1.26% of average assets, for the year ended December 31, 2023.
For the fourth quarter of 2024, the Company reported net income available to common shareholders of $130.3 million, or $0.70 per diluted common share, compared to $256.7 million, or $1.41 per diluted common share, for the fourth quarter of 2023 and $134.1 million, or $0.72 per diluted common share, for the third quarter of 2024. Adjusted net income available to common shareholders from continuing operations(1) was $130.0 million, or $0.70 per diluted common share, for the fourth quarter of 2024, compared with $72.7 million, or $0.40 per diluted common share, for the fourth quarter of 2023 and $135.6 million, or $0.73 per diluted common share, for the third quarter of 2024. Additionally, the Company reported adjusted PPNR from continuing operations(1) of $184.0 million, or 1.55% of average assets on an annualized basis, for the fourth quarter of 2024, which represents a decline of $5.9 million or 3.1% compared to the third quarter of 2024, and an increase of $46.1 million or 33.4% compared to the same quarter of 2023.
Net Interest Revenue
Net interest revenue increased to $364.5 million for the fourth quarter of 2024, compared to $334.6 million for the fourth quarter of 2023 and $361.5 million for the third quarter of 2024. The net interest margin (fully taxable equivalent) improved to 3.38% for the fourth quarter of 2024, compared with 3.04% for the fourth quarter of 2023 and 3.31% for the third quarter of 2024.
Net interest revenue increased $3.1 million, or 0.9%, compared to the third quarter of 2024 as the Company continues to benefit from an improved average earning asset mix, continued upward repricing of fixed rate and certain variable rate loans that soften the impact of declining interest rates on the portfolio, declining deposit costs and paydowns of borrowings. Purchase accounting accretion revenue was $2.4 million for the fourth quarter of 2024 compared with $3.0 million for the third quarter of 2024. Average earning assets declined slightly to $42.9 billion, as growth in average loans of $182.1 million was offset by lower excess cash and securities as the Company paid off the Bank Term Funding Program balances and called a sub-debt issuance in the fourth quarter.
Yield on net loans, loans held for sale and leases, excluding accretion, was 6.40% for the fourth quarter of 2024, down 21 basis points from 6.61% for the third quarter of 2024. Investment securities yielded 3.04% in the fourth quarter of 2024, which is flat compared to the third quarter of 2024. The yield on total interest earning assets was 5.76% for the fourth quarter of 2024 compared with 5.92% for the third quarter of 2024.
The average cost of total deposits declined to 2.44% for the fourth quarter of 2024, compared to 2.55% for the third quarter of 2024. The 18 basis point linked quarter decline in the cost of interest-bearing deposits was partially offset by product mix shift with quarterly growth in interest-bearing demand and time deposits and declines innoninterest bearing deposits. Total interest-bearing liabilities cost declined 30 basis points to 3.17% for the fourth quarter of 2024 compared to 3.47% for the third quarter of 2024.
Balance Sheet Activity
Loans and leases, net of unearned income, increased to $33.7 billion at December 31, 2024 compared to $33.3 billion at September 30, 2024. Net loan growth of $437.8 million, or 5.2% annualized, for the fourth quarter was driven primarily by growth in residential mortgages, owner occupied C&I credits and income producing CRE.
Total deposits were $40.5 billion as of December 31, 2024, an increase of $1.7 billion from $38.8 billion at the end of the third quarter of 2024. The fourth quarter's increase included a seasonal increase of $360.0 million in public funds to $4.1 billion, and a $1.5 billion increase in brokered deposits to $2.1 billion at December 31, 2024. Brokered deposits were added during the fourth quarter primarily to facilitate the pay off of the $3.5 billion Bank Term Funding Program balance at rates the Company viewed as favorable compared to other alternative funding sources. Core customer deposits, which exclude brokered deposits and public funds, declined approximately $175.4 million compared to September 30, 2024. However, excluding approximately $435.0 million in temporary overnight customer sweep activity in core customer balances at the end of the third quarter, total core customer deposits increased $259.6 million during the fourth quarter, or 3.0% on an annualized basis.
The December31, 2024 loan to deposit ratio was 83.3%. Noninterest bearing deposits declined to 21.2% of total deposits at the end of the fourth quarter of 2024 from 23.8% at September 30, 2024.
Total investment securities declined $0.5 billion during the fourth quarter of 2024 to $7.3 billion at December 31, 2024, representing 15.5% of total assets. Cash, due from balances and deposits at the Federal Reserve declined $2.3 billion to $1.7 billion at December 31, 2024 as the Company utilized excess liquidity to reduce reliance on higher cost funding, including the pay off of the Bank Term Funding Program borrowings and call of subordinated debt.
In November 2024, the Company called $215.2 million in fixed-to-floating subordinated debt at par. This debt was yielding 4.125% and was set toreprice at SOFR+2.73% after the November call date. This call was in addition to the June 2024 call of $138.9 million in fixed-to-floating subordinated debt at par, yielding 5.65% and set to reprice to a weighted-average rate of SOFR+3.76% after the June call date.
Credit Results, Provision for Credit Losses and Allowance for Credit Losses
Credit metrics for the fourth quarter of 2024 reflected overall stability in credit quality. Net charge-offs for the fourth quarter of 2024 were $14.1 million, or 0.17% of average net loans and leases on an annualized basis, compared with net charge-offs of $23.8 million, or 0.29% of average net loans and leases on an annualized basis, for the fourth quarter of 2023 and net charge-offs of $22.2 million, or 0.26% of average net loans and leases on an annualized basis, for the third quarter of 2024. The provision for credit losses for the fourth quarter of 2024 was $15.0 million, compared with $38.0 million for the fourth quarter of 2023 and $12.0 million for the third quarter of 2024. The allowance for credit losses of $460.8 million at December 31, 2024 was stable at 1.37% of total loans and leases compared to 1.38% of total loans and leases at September 30, 2024 and down slightly from 1.44% of total loans and leases at December 31, 2023.
Total nonperforming assets as a percent of total assets were 0.58% at December 31, 2024 compared to 0.45% at December 31, 2023 and 0.57% at September 30, 2024. Total nonperforming loans and leases as a percent of loans and leases, net were 0.78% at December 31, 2024, compared to 0.67% at December 31, 2023 and 0.82% at September 30, 2024. Other real estate owned and other repossessed assets was $5.8 million at December 31, 2024 compared to the December 31, 2023 balance of $6.2 million and the September 30, 2024 balance of $5.4 million. Criticized loans represented 2.35% of loans at December 31, 2024 compared to 2.60% at December 31, 2023 and 2.64% at September 30, 2024, while classified loans were 2.02% at December 31, 2024 compared to 2.09% at December 31, 2023 and 2.09% at September 30, 2024.
Noninterest Revenue
Noninterest revenue was $86.2 million for the fourth quarter of 2024 compared with negative $311.5 million for the fourth quarter of 2023 and $85.9 million for the third quarter of 2024. Noninterest revenue for the fourth quarter of 2023 included a securities portfolio restructuring loss of $384.5 million. Adjustednoninterest revenue(1) for the fourth quarter of 2024 was $86.2 million, compared with $73.1 million for the fourth quarter of 2023 and $88.8 million for the third quarter of 2024. Adjusted noninterest revenue(1) for the fourth quarter of 2024 has no significant adjustments while adjusted noninterest revenue(1) for the fourth quarter of 2023 excludes $384.5 million securities portfolio restructuring loss and adjusted noninterest revenue(1) for the third quarter of 2024 excludes $2.9 million in securities losses.
Adjusted noninterest revenue was relatively consistent with the third quarter of 2024, with improvements in mortgage banking revenue offset by a decline in other noninterest revenue. Wealth management revenue was $24.0 million for the fourth quarter of 2024, consistent with $24.1 million for the third quarter of 2024. Credit card, debit card and merchant fee revenue was $12.7 million for the fourth quarter of 2024, compared with $12.6 million for the third quarter of 2024. Deposit service charge revenue was $18.7 million for the fourth quarter of 2024, compared to $18.8 million for the third quarter of 2024.
Mortgage banking revenue totaled $3.6 million for the fourth quarter of 2024, compared to negative $1.1 million for the fourth quarter of 2023 and $1.1 million for the third quarter of 2024. The $2.5 million improvement during the linked quarter was due to improvement in the MSR net valuation adjustment of $4.3 million, partially offset by $1.8 million in seasonally lower mortgage production and servicing revenue.
Other noninterest revenue was $27.3 million for the fourth quarter of 2024, down from $32.1 million for the third quarter of 2024, with the $4.8 million decline impacted by lower quarterly fair valuations of limited partnerships and equity securities, as well as the impact of the prior quarter's gain on debt redemption. These declines were partially offset by increases in credit related fees, SBA income and BOLI proceeds.
Noninterest Expense
Noninterest expense for the fourth quarter of 2024 was $266.2 million, compared with $329.4 million for the fourth quarter of 2023 and $259.4 million for the third quarter of 2024. Adjusted noninterest expense(1) for the fourth quarter of 2024 was $266.7 million, compared with $269.8 million for the fourth quarter of 2023 and $260.4 million for the third quarter of 2024. Adjustednoninterest expense for the fourth quarter of 2024 excludes a benefit of $0.5 million associated with an adjustment to the estimated FDIC special assessment. The adjusted efficiency ratio(1) was 59.1% for the fourth quarter of 2024, compared to 57.7% for the third quarter of 2024 and 66.0% for the fourth quarter of 2023.
The $6.3 million, or 2.4%, linked quarter increase in adjusted noninterest expense(1) was driven primarily by increases in data processing and software expense as well as other noninterest expense. Data processing and software expense increased $4.1 million compared to the third quarter of 2024, primarily as a result of the fourth quarter system upgrade of the Company's treasury management platform, with a majority of those expenses not ongoing in nature. Othernoninterest expense increased $3.4 million compared to the third quarter of 2024 driven by increases in various items including professional services, advertising and public relations, and operational losses.
Capital Management
Total shareholders' equity was $5.6 billion at December 31, 2024 compared with $5.2 billion at December 31, 2023 and $5.6 billion at September 30, 2024. Estimated regulatory capital ratios at December 31, 2024 included Common Equity Tier 1 capital of 12.4%, Tier 1 capital of 12.8%, Total risk-based capital of 14.0%, and Tier 1 leverage capital of 10.4%. During the fourth quarter of 2024, the Company did not repurchase any shares of Company common stock. For the full year 2024, the Company repurchased 1,237,021 shares at a weighted average price of $26.74. Outstanding common shares were 183.5 million as of December 31, 2024.
Summary
Rollins concluded, “As we enter 2025, our team is excited about the opportunity to build on our accomplishments and momentum from 2024. Our focus on growth in loans, deposits and fee revenues, combined with net interest margin expansion, stable credit quality and improved operating efficiency, has contributed to continued improvement in our profitability and financial performance. We look forward to building on this success in 2025 and beyond as we focus on our company's vision of helping people, companies and communities prosper.”
Key Transactions
Effective May 17, 2024, the Company completed the sale of Cadence Business Solutions, its payroll processing business unit, resulting in a net gain on sale of approximately $12 million. The impact on both revenues and expenses is not material. The payroll processing unit had previously been part of Cadence Insurance, Inc., prior to its sale in November 2023.
Effective November 30, 2023, the Company completed the sale of its insurance subsidiary, Cadence Insurance, to Arthur J. Gallagher & Co. for approximately $904 million. The Transaction resulted in net capital creation of approximately $625 million, including a net gain on sale of approximately $525 million. The gain along with Cadence Insurance's historical financial results for periods prior to the divestiture have been reflected in the consolidated financial statements as discontinued operations. Additionally, current and prior period adjusted earnings exclude the impact of discontinued operations.
Conference Call and Webcast
The Company will conduct a conference call to discuss its fourth quarter and annual 2024 financial results on January 23, 2025, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing http://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.
About Cadence Bank
Cadence Bank (NYSE: CADE) is a leading regional banking franchise with approximately $50 billion in assets and more than 350 branch locations across the South and Texas. Cadence provides consumers, businesses and corporations with a full range of innovative banking and financial solutions. Services and products include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, equipment financing, correspondent banking, SBA lending, foreign exchange, wealth management, investment and trust services, financial planning, and retirement plan management. Cadence is committed to a culture of respect, diversity and inclusion in both its workplace and communities. Cadence Bank, Member FDIC. Equal Housing Lender.
(1) Considered a non-GAAP financial measure. A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears in Table 14 “Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions” beginning on page 22 of this news release.(2) See Table 14 for detail on non-routine income and expenses.(3) Given the sale of Cadence Insurance, Inc. (“Cadence Insurance”) in the fourth quarter of 2023, the financial results presented consist of both continuing operations and discontinued operations. The discontinued operations include the financial results of Cadence Insurance prior to the sale, as well as the associated gain on sale in the fourth quarter of 2023. The discontinued operations are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented.
Forward-Looking Statements
Certain statements made in this news release constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the “bespeaks caution” doctrine. These statements are often, but not exclusively, made through the use of words or phrases like “assume,” “believe,” “budget,” “contemplate,” “continue,” “could,” “foresee,” “indicate,” “may,” “might,” “outlook,” “prospect,” “potential,” “roadmap,” “should,” “target,” “will,” “would,” the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures or results of operations as well as the impact of the Cadence Insurance sale on the Company's financial condition and future net income and earnings per share, and the Company's ability to deploy capital into strategic and growth initiatives. Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.
Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies, including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements (including those related to stock repurchases); the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers. The Company also faces risks from natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from Russia's military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.
The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the Company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.
The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with its primary federal regulator, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, particularly those under the heading “Item 1A. Risk Factors,” in the Company's Quarterly Reports on Form 10-Q under the heading “Part II-Item 1A. Risk Factors,” and in the Company's Current Reports on Form 8-K.
Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.
Table 1Selected Financial Data(Unaudited) Quarter Ended Year-to-date(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023Earnings Summary:Interest revenue $ 620,321 $ 647,713 $ 642,210 $ 637,113 $ 615,187 $ 2,547,357 $ 2,310,167Interest expense 255,790 286,255 285,892 283,205 280,582 1,111,142 958,811Net interest revenue 364,531 361,458 356,318 353,908 334,605 1,436,215 1,351,356Provision for credit losses 15,000 12,000 22,000 22,000 38,000 71,000 80,000Net interest revenue, after provision for credit losses 349,531 349,458 334,318 331,908 296,605 1,365,215 1,271,356Noninterest revenue 86,165 85,901 100,658 83,786 (311,460) 356,510 (116,343)Noninterest expense 266,186 259,438 256,697 263,207 329,367 1,045,528 1,155,923Income (loss) from continuing operations before income taxes 169,510 175,921 178,279 152,487 (344,222) 676,197 (910)Income tax expense (benefit) 36,795 39,482 40,807 35,509 (80,485) 152,593 (4,594)Income (loss) from continuing operations 132,715 136,439 137,472 116,978 (263,737) 523,604 3,684Income from discontinued operations, net of taxes – – – – 522,801 – 538,620Net income 132,715 136,439 137,472 116,978 259,064 523,604 542,304Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 9,488 9,488Net income available to common shareholders $ 130,343 $ 134,067 $ 135,100 $ 114,606 $ 256,692 $ 514,116 $ 532,816Balance Sheet – Period End BalancesTotal assets $ 47,019,190 $ 49,204,933 $ 47,984,078 $ 48,313,863 $ 48,934,510 $ 47,019,190 $ 48,934,510Total earning assets 42,386,627 44,834,897 43,525,688 43,968,692 44,192,887 42,386,627 44,192,887Available for sale securities 7,293,988 7,841,685 7,921,422 8,306,589 8,075,476 7,293,988 8,075,476Loans and leases, net of unearned income 33,741,755 33,303,972 33,312,773 32,882,616 32,497,022 33,741,755 32,497,022Allowance for credit losses (ACL) 460,793 460,859 470,022 472,575 468,034 460,793 468,034Net book value of acquired loans 4,783,206 5,521,000 5,543,419 6,011,007 6,353,344 4,783,206 6,353,344Unamortized net discount on acquired loans 15,611 17,988 20,874 23,715 26,928 15,611 26,928Total deposits 40,496,201 38,844,360 37,858,659 38,120,226 38,497,137 40,496,201 38,497,137Total deposits and repurchase agreements 40,519,817 38,861,324 37,913,693 38,214,616 38,948,653 40,519,817 38,948,653Other short-term borrowings – 3,500,000 3,500,000 3,500,000 3,500,000 – 3,500,000Subordinated and long-term debt 10,706 225,823 269,353 430,123 438,460 10,706 438,460Total shareholders' equity 5,569,683 5,572,863 5,287,758 5,189,932 5,167,843 5,569,683 5,167,843Total shareholders' equity, excluding AOCI (1) 6,264,178 6,163,205 6,070,220 5,981,265 5,929,672 6,264,178 5,929,672Common shareholders' equity 5,402,690 5,405,870 5,120,765 5,022,939 5,000,850 5,402,690 5,000,850Common shareholders' equity, excluding AOCI (1) $ 6,097,185 $ 5,996,212 $ 5,903,227 $ 5,814,272 $ 5,762,679 $ 6,097,185 $ 5,762,679Balance Sheet – Average BalancesTotal assets $ 47,263,538 $ 47,803,977 $ 48,192,719 $ 48,642,540 $ 48,444,176 $ 47,973,279 $ 48,703,953Total earning assets 42,920,125 43,540,045 43,851,822 44,226,077 43,754,664 43,632,307 43,951,257Available for sale securities 7,636,683 7,915,636 8,033,552 8,269,708 9,300,714 7,962,869 10,322,335Loans and leases, net of unearned income 33,461,931 33,279,819 32,945,526 32,737,574 32,529,030 33,107,659 31,913,925Total deposits 39,743,224 37,634,453 38,100,087 38,421,272 38,215,379 38,475,929 38,628,453Total deposits and repurchase agreements 39,761,277 37,666,828 38,165,908 38,630,620 38,968,397 38,557,021 39,399,230Other short-term borrowings 905,815 3,512,218 3,500,000 3,500,000 3,503,320 2,850,981 3,471,207Subordinated and long-term debt 123,442 265,790 404,231 434,579 443,251 306,396 452,645Total shareholders' equity 5,589,361 5,420,826 5,207,254 5,194,048 4,507,343 5,353,705 4,487,433Common shareholders' equity $ 5,422,368 $ 5,253,833 $ 5,040,261 $ 5,027,055 $ 4,340,350 $ 5,186,712 $ 4,320,440Nonperforming Assets:Nonperforming loans and leases (NPL) (2) (3) 264,692 272,954 216,746 241,007 216,141 264,692 216,141Other real estate owned and other assets 5,754 5,354 4,793 5,280 6,246 5,754 6,246Nonperforming assets (NPA) $ 270,446 $ 278,308 $ 221,539 $ 246,287 $ 222,387 $ 270,446 $ 222,387
(1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 – 27.(2) At December 31, 2024, $89.9 million of NPL is covered by government guarantees from the SBA, FHA, VA or USDA. Refer to Table 7 on page 13 for related information.(3) At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million.
Table 2Selected Financial Ratios Quarter Ended Year-to-date Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023Financial Ratios and Other Data:Return on average assets from continuing operations (2) 1.12% 1.14% 1.15% 0.97% (2.16)% 1.09% 0.01%Return on average assets (2) 1.12 1.14 1.15 0.97 2.12 1.09 1.11Adjusted return on average assets from continuing operations (1)(2) 1.11 1.15 1.09 0.97 0.62 1.08 0.84Return on average common shareholders' equity from continuing operations (2) 9.56 10.15 10.78 9.17 (24.32) 9.91 (0.13)Return on average common shareholders' equity (2) 9.56 10.15 10.78 9.17 23.46 9.91 12.33Adjusted return on average common shareholders' equity from continuing operations (1)(2) 9.53 10.27 10.21 9.15 6.65 9.79 9.29Return on average tangible common equity from continuing operations (1)(2) 13.06 14.04 15.18 12.94 (36.79) 13.79 (0.20)Return on average tangible common equity (1)(2) 13.06 14.04 15.18 12.94 35.49 13.79 18.74Adjusted return on average tangible common equity from continuing operations (1)(2) 13.02 14.21 14.37 12.92 10.06 13.62 14.11Pre-tax pre-provision net revenue from continuing operation to total average assets (1)(2) 1.55 1.56 1.67 1.44 (2.51) 1.56 0.16Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets (1)(2) 1.55 1.58 1.59 1.44 1.13 1.54 1.26Net interest margin-fully taxable equivalent 3.38 3.31 3.27 3.22 3.04 3.30 3.08Net interest rate spread-fully taxable equivalent 2.59 2.45 2.45 2.40 2.25 2.47 2.33Efficiency ratio fully tax equivalent (1) 58.98 57.90 56.09 60.05 NM 58.24 93.28Adjusted efficiency ratio fully tax equivalent (1) 59.09 57.73 56.73 60.12 66.01 58.41 63.34Loan/deposit ratio 83.32% 85.74% 87.99% 86.26% 84.41% 83.32% 84.41%Full time equivalent employees 5,335 5,327 5,290 5,322 5,333 5,335 5,333Credit Quality Ratios:Net charge-offs to average loans and leases (2) 0.17% 0.26% 0.28% 0.24% 0.29% 0.24% 0.23%Provision for credit losses to average loans and leases (2) 0.18 0.14 0.27 0.27 0.46 0.21 0.25ACL to loans and leases, net 1.37 1.38 1.41 1.44 1.44 1.37 1.44ACL to NPL 174.09 168.84 216.85 196.08 216.54 174.09 216.54NPL to loans and leases, net 0.78 0.82 0.65 0.73 0.67 0.78 0.67NPA to total assets 0.58 0.57 0.46 0.51 0.45 0.58 0.45Equity Ratios:Total shareholders' equity to total assets 11.85% 11.33% 11.02% 10.74% 10.56% 11.85% 10.56%Total common shareholders' equity to total assets 11.49 10.99 10.67 10.40 10.22 11.49 10.22Tangible common shareholders' equity to tangible assets (1) 8.67 8.28 7.87 7.60 7.44 8.67 7.44Tangible common shareholders' equity, excluding AOCI, to 10.04 9.40 9.40 9.13 8.90 10.04 8.90tangible assets, excluding AOCI (1)Capital Adequacy (3):Common Equity Tier 1 capital 12.4% 12.3% 11.9% 11.7% 11.6% 12.4% 11.6%Tier 1 capital 12.8 12.7 12.3 12.2 12.1 12.8 12.1Total capital 14.0 14.5 14.2 14.5 14.3 14.0 14.3Tier 1 leverage capital 10.4 10.1 9.7 9.5 9.3 10.4 9.3
(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 3Selected Financial Information Quarter Ended Year-to-date Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023Common Share Data:Diluted earnings (losses) per share from continuing operations $ 0.70 $ 0.72 $ 0.73 $ 0.62 $ (1.46) $ 2.77 $ (0.03)Adjusted earnings per share from continuing operations (1) 0.70 0.73 0.69 0.62 0.40 2.74 2.20Diluted earnings per share 0.70 0.72 0.73 0.62 1.41 2.77 2.92Cash dividends per share 0.250 0.250 0.250 0.250 0.235 1.00 0.94Book value per share 29.44 29.65 28.07 27.50 27.35 29.44 27.35Tangible book value per share (1) 21.54 21.68 20.08 19.48 19.32 21.54 19.32Market value per share (last) 34.45 31.85 28.28 29.00 29.59 34.45 29.59Market value per share (high) 40.20 34.13 29.95 30.03 31.45 40.20 31.45Market value per share (low) 30.21 27.46 26.16 24.99 19.67 24.99 16.95Market value per share (average) 35.17 30.96 28.14 27.80 24.40 30.56 22.90Dividend payout ratio from continuing operations 35.71% 34.72% 34.25% 40.48% (16.13)% 36.10% NMAdjusted dividend payout ratio from continuing operations (1) 35.71% 34.25% 36.23% 40.32% 58.75% 36.50% 42.73%Total shares outstanding 183,527,575 182,315,142 182,430,427 182,681,325 182,871,775 183,527,575 182,871,775Average shares outstanding – diluted 186,038,243 185,496,110 185,260,963 185,574,130 182,688,190 185,592,759 182,608,713Yield/Rate:(Taxable equivalent basis)Loans, loans held for sale, and leases 6.42% 6.64% 6.59% 6.50% 6.48% 6.54% 6.28%Loans, loans held for sale, and leases excluding net 6.40 6.61 6.56 6.46 6.43 6.50 6.20accretion on acquired loans and leasesAvailable for sale securities:Taxable 3.03 3.03 3.18 3.11 2.45 3.09 2.09Tax-exempt 3.93 3.97 4.12 4.25 3.78 4.07 3.32Other investments 4.77 5.37 5.45 5.48 5.41 5.33 5.13Total interest earning assets and revenue 5.76 5.92 5.90 5.80 5.59 5.84 5.27Deposits 2.44 2.55 2.53 2.45 2.32 2.49 1.90Interest bearing demand and money market 2.87 3.13 3.13 3.11 3.02 3.06 2.58Savings 0.57 0.57 0.57 0.57 0.56 0.57 0.49Time 4.28 4.50 4.53 4.42 4.22 4.42 3.69Total interest bearing deposits 3.12 3.30 3.28 3.21 3.10 3.22 2.62Fed funds purchased, securities sold under 4.58 5.10 4.47 4.86 4.33 4.79 4.07agreement to repurchase and otherShort-term FHLB borrowings – – – – – – 4.91Short-term BTFP borrowings 4.77 4.77 4.77 4.84 5.04 4.79 5.10Total interest bearing deposits and short-term borrowings 3.16 3.46 3.44 3.39 3.33 3.36 2.91Subordinated and long-term borrowings 4.14 4.30 4.41 4.35 4.18 4.34 4.23Total interest bearing liabilities 3.17 3.47 3.45 3.40 3.34 3.37 2.93Interest bearing liabilities to interest earning assets 74.82% 75.40% 75.97% 75.73% 76.08% 75.48% 74.43%Net interest income tax equivalent adjustment (in thousands) $ 648 $ 694 $ 644 $ 636 $ 987 $ 2,623 $ 4,184
(1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 23 – 27.
Table 4Consolidated Balance Sheets(Unaudited) As of(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023ASSETSCash and due from banks $ 624,884 $ 504,827 $ 516,715 $ 427,543 $ 798,177Interest bearing deposits with other banks and Federal funds sold 1,106,692 3,483,299 2,093,820 2,609,931 3,434,088Available for sale securities, at fair value 7,293,988 7,841,685 7,921,422 8,306,589 8,075,476Loans and leases, net of unearned income 33,741,755 33,303,972 33,312,773 32,882,616 32,497,022Allowance for credit losses 460,793 460,859 470,022 472,575 468,034Net loans and leases 33,280,962 32,843,113 32,842,751 32,410,041 32,028,988Loans held for sale, at fair value 244,192 205,941 197,673 169,556 186,301Premises and equipment, net 783,456 797,556 808,705 822,666 802,133Goodwill 1,366,923 1,366,923 1,366,923 1,367,785 1,367,785Other intangible assets, net 83,190 87,094 91,027 96,126 100,191Bank-owned life insurance 651,838 652,057 648,970 645,167 642,840Other assets 1,583,065 1,422,438 1,496,072 1,458,459 1,498,531Total Assets $ 47,019,190 $ 49,204,933 $ 47,984,078 $ 48,313,863 $ 48,934,510LIABILITIESDeposits:Demand: Noninterest bearing $ 8,591,805 $ 9,242,693 $ 8,586,265 $ 8,820,468 $ 9,232,068Interest bearing 19,345,114 18,125,553 18,514,015 18,945,982 19,276,596Savings 2,588,406 2,560,803 2,613,950 2,694,777 2,720,913Time deposits 9,970,876 8,915,311 8,144,429 7,658,999 7,267,560Total deposits 40,496,201 38,844,360 37,858,659 38,120,226 38,497,137Securities sold under agreement to repurchase 23,616 16,964 55,034 94,390 451,516Other short-term borrowings – 3,500,000 3,500,000 3,500,000 3,500,000Subordinated and long-term debt 10,706 225,823 269,353 430,123 438,460Other liabilities 918,984 1,044,923 1,013,274 979,192 879,554Total Liabilities 41,449,507 43,632,070 42,696,320 43,123,931 43,766,667SHAREHOLDERS' EQUITYPreferred stock 166,993 166,993 166,993 166,993 166,993Common stock 458,819 455,788 456,076 456,703 457,179Capital surplus 2,742,913 2,729,440 2,724,656 2,724,587 2,743,066Accumulated other comprehensive loss (694,495) (590,342) (782,462) (791,333) (761,829)Retained earnings 2,895,453 2,810,984 2,722,495 2,632,982 2,562,434Total Shareholders' Equity 5,569,683 5,572,863 5,287,758 5,189,932 5,167,843Total Liabilities & Shareholders' Equity $ 47,019,190 $ 49,204,933 $ 47,984,078 $ 48,313,863 $ 48,934,510
Table 5Consolidated Quarterly Average Balance Sheets(Unaudited)(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023ASSETSCash and due from banks $ 490,161 $ 435,569 $ 456,938 $ 557,009 $ 443,504Interest bearing deposits with other banks and Federal funds sold 1,698,300 2,210,277 2,758,385 3,146,439 1,811,686Available for sale securities, at fair value 7,636,683 7,915,636 8,033,552 8,269,708 9,300,714Loans and leases, net of unearned income 33,461,931 33,279,819 32,945,526 32,737,574 32,529,030Allowance for credit losses 465,971 469,919 475,181 473,849 447,879Net loans and leases 32,995,960 32,809,900 32,470,345 32,263,725 32,081,151Loans held for sale, at fair value 123,211 134,313 114,359 72,356 113,234Premises and equipment, net 796,394 807,353 815,920 808,473 795,164Goodwill 1,366,923 1,366,923 1,367,358 1,367,785 1,367,916Other intangible assets, net 85,323 89,262 93,743 98,350 102,765Bank-owned life insurance 651,166 650,307 646,124 643,189 640,439Other assets 1,419,417 1,384,437 1,435,995 1,415,506 1,787,603Total Assets $ 47,263,538 $ 47,803,977 $ 48,192,719 $ 48,642,540 $ 48,444,176LIABILITIESDeposits:Demand: Noninterest bearing $ 8,676,765 $ 8,616,534 $ 8,757,029 $ 9,072,619 $ 9,625,912Interest bearing 18,845,689 18,043,686 18,770,093 19,303,845 18,292,826Savings 2,573,961 2,584,761 2,652,019 2,696,452 2,758,977Time deposits 9,646,809 8,389,472 7,920,946 7,348,356 7,537,664Total deposits 39,743,224 37,634,453 38,100,087 38,421,272 38,215,379Securities sold under agreement to repurchase 18,053 32,375 65,821 209,348 753,018Other short-term borrowings 905,815 3,512,218 3,500,000 3,500,000 3,503,320Subordinated and long-term debt 123,442 265,790 404,231 434,579 443,251Other liabilities 883,643 938,315 915,326 883,293 1,021,865Total Liabilities 41,674,177 42,383,151 42,985,465 43,448,492 43,936,833SHAREHOLDERS' EQUITYPreferred stock 166,993 166,993 166,993 166,993 166,993Common stock 457,798 455,954 456,618 456,437 456,636Capital surplus 2,735,323 2,725,581 2,724,838 2,733,902 2,733,985Accumulated other comprehensive loss (634,307) (703,619) (838,710) (777,940) (1,279,235)Retained earnings 2,863,554 2,775,917 2,697,515 2,614,656 2,428,964Total Shareholders' Equity 5,589,361 5,420,826 5,207,254 5,194,048 4,507,343Total Liabilities & Shareholders' Equity $ 47,263,538 $ 47,803,977 $ 48,192,719 $ 48,642,540 $ 48,444,176
Table 6Consolidated Statements of Income(Unaudited) Quarter Ended Year-to-date(Dollars in thousands, except per share data) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023INTEREST REVENUE:Loans and leases $ 540,147 $ 555,862 $ 539,685 $ 528,940 $ 531,340 $ 2,164,633 $ 2,004,812Available for sale securities:Taxable 57,476 59,732 62,852 63,405 55,801 243,466 208,122Tax-exempt 635 638 638 687 1,927 2,598 9,206Loans held for sale 1,694 1,630 1,652 1,184 1,418 6,161 4,450Short-term investments 20,369 29,851 37,383 42,897 24,701 130,499 83,577Total interest revenue 620,321 647,713 642,210 637,113 615,187 2,547,357 2,310,167INTEREST EXPENSE:Interest bearing demand deposits and money market accounts 135,965 142,179 146,279 149,403 139,144 573,826 472,723Savings 3,684 3,695 3,743 3,801 3,918 14,922 14,955Time deposits 103,785 94,944 89,173 80,670 80,143 368,572 246,476Federal funds purchased and securities sold under agreement to repurchase 293 561 724 2,523 8,254 4,101 32,581Short-term debt 10,779 42,003 41,544 42,109 44,451 136,434 172,940Subordinated and long-term debt 1,284 2,873 4,429 4,699 4,672 13,287 19,136Total interest expense 255,790 286,255 285,892 283,205 280,582 1,111,142 958,811Net interest revenue 364,531 361,458 356,318 353,908 334,605 1,436,215 1,351,356Provision for credit losses 15,000 12,000 22,000 22,000 38,000 71,000 80,000Net interest revenue, after provision for credit losses 349,531 349,458 334,318 331,908 296,605 1,365,215 1,271,356NONINTEREST REVENUE:Wealth management 23,973 24,110 24,006 22,833 22,576 94,922 86,928Deposit service charges 18,694 18,814 17,652 18,338 11,161 73,497 61,718Credit card, debit card and merchant fees 12,664 12,649 12,770 12,162 12,902 50,245 49,784Mortgage banking 3,554 1,133 6,173 6,443 (1,137) 17,303 18,978Security losses (3) (2,947) (4) (9) (384,524) (2,962) (435,652)Other noninterest income 27,283 32,142 40,061 24,019 27,562 123,505 101,901Total noninterest revenue 86,165 85,901 100,658 83,786 (311,460) 356,510 (116,343)NONINTEREST EXPENSE:Salaries and employee benefits 152,381 152,237 148,038 156,650 148,081 609,307 634,722Occupancy and equipment 27,275 28,894 29,367 28,640 28,009 114,175 110,972Data processing and software 33,226 29,164 29,467 30,028 32,922 121,884 120,443Deposit insurance assessments 8,284 7,481 15,741 8,414 45,733 39,922 72,224Amortization of intangibles 3,904 3,933 3,999 4,066 4,405 15,902 19,388Pension settlement expense – – – – 11,226 – 11,826Merger expense – – – – – – 5,192Other noninterest expense 41,116 37,729 30,085 35,409 58,991 144,338 181,156Total noninterest expense 266,186 259,438 256,697 263,207 329,367 1,045,528 1,155,923Income (loss) from continuing operations before taxes 169,510 175,921 178,279 152,487 (344,222) 676,197 (910)Income tax expense (benefit) 36,795 39,482 40,807 35,509 (80,485) 152,593 (4,594)Income (loss) from continuing operations $ 132,715 $ 136,439 $ 137,472 $ 116,978 $ (263,737) 523,604 3,684Income from discontinued operations – – – – 706,129 – 727,591Income tax expense from discontinued operations – – – – 183,328 – 188,971Income from discontinued operations, net of taxes – – – – 522,801 – 538,620Net income 132,715 136,439 137,472 116,978 259,064 523,604 542,304Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 9,488 9,488Net income available to common shareholders $ 130,343 $ 134,067 $ 135,100 $ 114,606 $ 256,692 $ 514,116 $ 532,816Diluted earnings (losses) per common share from continuing operations $ 0.70 $ 0.72 $ 0.73 $ 0.62 $ (1.46) $ 2.77 $ (0.03)Diluted earnings per common share $ 0.70 $ 0.72 $ 0.73 $ 0.62 $ 1.41 $ 2.77 $ 2.92
Table 7Selected Loan Portfolio Data(Unaudited) Quarter Ended(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023LOAN AND LEASE PORTFOLIO:Commercial and industrialNon-real estate $ 8,670,529 $ 8,692,639 $ 9,136,929 $ 9,121,457 $ 8,935,598Owner occupied 4,665,015 4,557,723 4,475,647 4,442,357 4,349,060Total commercial and industrial 13,335,544 13,250,362 13,612,576 13,563,814 13,284,658Commercial real estateConstruction, acquisition and development 3,909,184 3,931,821 3,892,527 3,864,351 3,910,962Income producing 6,015,773 5,978,695 5,851,340 5,783,943 5,736,871Total commercial real estate 9,924,957 9,910,516 9,743,867 9,648,294 9,647,833ConsumerResidential mortgages 10,267,883 9,933,222 9,740,713 9,447,675 9,329,692Other consumer 213,371 209,872 215,617 222,833 234,839Total consumer 10,481,254 10,143,094 9,956,330 9,670,508 9,564,531Total loans and leases, net of unearned income $ 33,741,755 $ 33,303,972 $ 33,312,773 $ 32,882,616 $ 32,497,022NONPERFORMING ASSETSNonperforming Loans and LeasesCommercial and industrialNon-real estate $ 145,115 $ 148,267 $ 121,171 $ 149,683 $ 131,559Owner occupied 16,904 15,127 13,700 5,962 7,097Total commercial and industrial 162,019 163,394 134,871 155,645 138,656Commercial real estateConstruction, acquisition and development 8,600 2,034 4,923 3,787 1,859Income producing 18,542 25,112 15,002 19,428 17,485Total commercial real estate 27,142 27,146 19,925 23,215 19,344ConsumerResidential mortgages 75,287 82,191 61,677 61,886 57,881Other consumer 244 223 273 261 260Total consumer 75,531 82,414 61,950 62,147 58,141Total nonperforming loans and leases (1) $ 264,692 $ 272,954 $ 216,746 $ 241,007 $ 216,141Other real estate owned and repossessed assets 5,754 5,354 4,793 5,280 6,246Total nonperforming assets $ 270,446 $ 278,308 $ 221,539 $ 246,287 $ 222,387Government guaranteed portion of nonaccrual loans and $ 89,906 $ 81,632 $ 71,418 $ 59,897 $ 49,551leases covered by the SBA, FHA, VA or USDALoans and leases 90+ days past due, still accruing $ 13,126 $ 11,757 $ 6,150 $ 30,048 $ 22,466
(1) At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million.
Table 8Allowance for Credit Losses(Unaudited) Quarter Ended(Dollars in thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023ALLOWANCE FOR CREDIT LOSSES:Balance, beginning of period $ 460,859 $ 470,022 $ 472,575 $ 468,034 $ 446,859Charge-offs:Commercial and industrial (15,116) (21,620) (23,340) (16,997) (21,385)Commercial real estate (167) (222) (649) (2,244) (2,290)Consumer (2,679) (2,681) (2,294) (2,395) (3,229)Total loans charged-off (17,962) (24,523) (26,283) (21,636) (26,904)Recoveries:Commercial and industrial 2,613 1,647 2,943 1,312 2,117Commercial real estate 549 65 101 150 95Consumer 734 648 686 715 867Total recoveries 3,896 2,360 3,730 2,177 3,079Net charge-offs (14,066) (22,163) (22,553) (19,459) (23,825)Provision for credit losses related to loans and leases 14,000 13,000 20,000 24,000 45,000Balance, end of period $ 460,793 $ 460,859 $ 470,022 $ 472,575 $ 468,034Average loans and leases, net of unearned income, for period $ 33,461,931 $ 33,279,819 $ 32,945,526 $ 32,737,574 $ 32,529,030Ratio: Net charge-offs to average loans and leases (2) 0.17% 0.26% 0.28% 0.24% 0.29%RESERVE FOR UNFUNDED COMMITMENTS (1)Balance, beginning of period $ 7,551 $ 8,551 $ 6,551 $ 8,551 $ 15,551Provision (reversal) for credit losses for unfunded commitments 1,000 (1,000) 2,000 (2,000) (7,000)Balance, end of period $ 8,551 $ 7,551 $ 8,551 $ 6,551 $ 8,551
(1) The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets.(2) Annualized.
Table 9Loan Portfolio by Grades(Unaudited) December 31, 2024(In thousands) Pass Special Substandard Doubtful Impaired Purchased Total Mention Credit Deteriorated (Loss)LOAN AND LEASE PORTFOLIO:Commercial and industrialNon-real estate $ 8,208,176 $ 106,996 $ 311,096 $ 8,743 $ 31,996 $ 3,522 $ 8,670,529Owner occupied 4,610,775 815 41,363 – 10,968 1,094 4,665,015Total commercial and industrial 12,818,951 107,811 352,459 8,743 42,964 4,616 13,335,544Commercial real estateConstruction, acquisition and development 3,896,856 – 12,262 – 66 – 3,909,184Income producing 5,850,702 5,094 144,084 – 15,893 – 6,015,773Total commercial real estate 9,747,558 5,094 156,346 – 15,959 – 9,924,957ConsumerResidential mortgages 10,167,830 891 89,597 – 8,154 1,411 10,267,883Other consumer 212,865 – 506 – – – 213,371Total consumer 10,380,695 891 90,103 – 8,154 1,411 10,481,254Total loans and leases, net of unearned income $ 32,947,204 $ 113,796 $ 598,908 $ 8,743 $ 67,077 $ 6,027 $ 33,741,755
September 30, 2024(In thousands) Pass Special Substandard Doubtful Impaired Purchased Total Mention Credit Deteriorated (Loss)LOAN AND LEASE PORTFOLIO:Commercial and industrialNon-real estate $ 8,190,551 $ 171,866 $ 258,496 $ 13,325 $ 54,795 $ 3,606 $ 8,692,639Owner occupied 4,506,806 1,530 39,101 – 9,187 1,099 4,557,723Total commercial and industrial 12,697,357 173,396 297,597 13,325 63,982 4,705 13,250,362Commercial real estateConstruction, acquisition and development 3,918,273 – 13,548 – – – 3,931,821Income producing 5,767,252 8,611 180,414 – 22,418 – 5,978,695Total commercial real estate 9,685,525 8,611 193,962 – 22,418 – 9,910,516ConsumerResidential mortgages 9,831,527 795 91,863 – 7,579 1,458 9,933,222Other consumer 209,460 – 412 – – – 209,872Total consumer 10,040,987 795 92,275 – 7,579 1,458 10,143,094Total loans and leases, net of unearned income $ 32,423,869 $ 182,802 $ 583,834 $ 13,325 $ 93,979 $ 6,163 $ 33,303,972
Table 10Geographical Loan Information(Unaudited) December 31, 2024(Dollars in thousands) Alabama Arkansas Florida Georgia Louisiana Mississippi Missouri Tennessee Texas Other TotalLOAN AND LEASE PORTFOLIO:Commercial and industrialNon-real estate $ 413,359 $ 169,534 $ 532,224 $ 446,812 $ 371,543 $ 536,651 $ 64,846 $ 399,346 $ 3,478,755 $ 2,257,459 $ 8,670,529Owner occupied 337,580 253,538 308,545 400,342 298,787 624,950 107,443 159,058 1,708,113 466,659 4,665,015Total commercial and industrial 750,939 423,072 840,769 847,154 670,330 1,161,601 172,289 558,404 5,186,868 2,724,118 13,335,544Commercial real estateConstruction, acquisition and development 230,810 65,358 438,173 543,249 36,194 169,336 45,690 180,566 1,656,715 543,093 3,909,184Income producing 437,146 259,767 477,493 613,337 226,849 424,078 204,119 319,560 2,298,344 755,080 6,015,773Total commercial real estate 667,956 325,125 915,666 1,156,586 263,043 593,414 249,809 500,126 3,955,059 1,298,173 9,924,957ConsumerResidential mortgages 1,300,485 425,602 709,335 449,117 478,947 1,214,542 210,712 796,490 4,436,803 245,850 10,267,883Other consumer 27,186 17,653 5,002 7,817 10,653 86,059 1,322 16,668 36,559 4,452 213,371Total consumer 1,327,671 443,255 714,337 456,934 489,600 1,300,601 212,034 813,158 4,473,362 250,302 10,481,254Total $2,746,566 $ 1,191,452 $ 2,470,772 $ 2,460,674 $ 1,422,973 $ 3,055,616 $ 634,132 $ 1,871,688 $ 13,615,289 $ 4,272,593 $33,741,755Loan growth (decline), excluding loans $ 79,452 $ 25,420 $ 91,514 $ 113,446 $ 19,029 $ 47,708 $ 10,055 $ 77,334 $ 227,675 $ (253,850) $ 437,783acquired during the quarter ($)Loan growth (decline), excluding loans 11.85% 8.67% 15.30% 19.23% 5.39% 6.31% 6.41% 17.15% 6.77% (22.31)% 5.23%acquired during the quarter (%) (annualized)
September 30, 2024(Dollars in thousands) Alabama Arkansas Florida Georgia Louisiana Mississippi Missouri Tennessee Texas Other TotalLOAN AND LEASE PORTFOLIO:Commercial and industrialNon-real estate $ 373,496 $ 174,110 $ 503,478 $ 451,079 $ 347,397 $ 493,209 $ 67,512 $ 366,114 $ 3,443,772 $ 2,472,472 $ 8,692,639Owner occupied 342,037 248,109 302,228 323,643 296,937 625,425 101,509 162,176 1,749,994 405,665 4,557,723Total 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 13,250,362Commercial real estateConstruction, acquisition and development 214,627 72,186 467,852 553,316 42,963 183,412 40,413 166,889 1,604,724 585,439 3,931,821Income producing 425,613 248,133 408,683 574,925 232,605 428,569 204,351 323,786 2,312,282 819,748 5,978,695Total 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 9,910,516ConsumerResidential mortgages 1,284,111 406,108 691,794 436,840 473,271 1,193,982 208,750 759,480 4,241,278 237,608 9,933,222Other consumer 27,230 17,386 5,223 7,425 10,771 83,311 1,542 15,909 35,564 5,511 209,872Total consumer 1,311,341 423,494 697,017 444,265 484,042 1,277,293 210,292 775,389 4,276,842 243,119 10,143,094Total loans and leases, net of unearned income $ 2,667,114 $ 1,166,032 $ 2,379,258 $ 2,347,228 $ 1,403,944 $ 3,007,908 $ 624,077 $ 1,794,354 $ 13,387,614 $ 4,526,443 $ 33,303,972
Table 11Noninterest Revenue and Expense(Unaudited) Quarter Ended Year-to-date(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023NONINTEREST REVENUE:Trust and asset management income $ 12,485 $ 12,055 $ 12,645 $ 11,322 $ 11,301 $ 48,507 $ 42,513Investment advisory fees 8,502 8,641 8,180 8,336 8,084 33,660 31,403Brokerage and annuity fees 2,986 3,414 3,181 3,175 3,191 12,755 13,012Deposit service charges 18,694 18,814 17,652 18,338 11,161 73,497 61,718Credit card, debit card and merchant fees 12,664 12,649 12,770 12,162 12,902 50,245 49,784Mortgage banking excl. MSR and MSR hedge market value adjustment 6,293 8,171 9,875 9,116 6,966 33,455 33,763MSR and MSR hedge market value adjustment (2,739) (7,038) (3,702) (2,673) (8,103) (16,152) (14,785)Security losses, net (3) (2,947) (4) (9) (384,524) (2,962) (435,652)Bank-owned life insurance 5,046 4,353 4,370 3,946 4,728 17,716 16,294Other miscellaneous income 22,237 27,789 35,691 20,073 22,834 105,789 85,607Total noninterest revenue $ 86,165 $ 85,901 $ 100,658 $ 83,786 $ (311,460) $ 356,510 $ (116,343)NONINTEREST EXPENSE:Salaries and employee benefits $ 152,381 $ 152,237 $ 148,038 $ 156,650 $ 148,081 $ 609,307 $ 634,722Occupancy and equipment 27,275 28,894 29,367 28,640 28,009 114,175 110,972Data processing and software 33,226 29,164 29,467 30,028 32,922 121,884 120,443Deposit insurance assessments 8,284 7,481 15,741 8,414 45,733 39,922 72,224Amortization of intangibles 3,904 3,933 3,999 4,066 4,405 15,902 19,388Pension settlement expense – – – – 11,226 – 11,826Merger expense – – – – – – 5,192Advertising and public relations 5,870 5,481 6,537 4,224 12,632 22,112 28,162Foreclosed property expense 621 486 515 268 915 1,891 2,488Telecommunications 1,359 1,513 1,441 1,545 1,356 5,857 5,775Travel and entertainment 2,618 2,612 2,549 2,236 3,146 10,015 11,004Professional, consulting and outsourcing 4,540 4,115 3,534 3,935 5,194 16,124 19,892Legal 4,176 3,664 758 3,682 13,724 12,279 20,093Postage and shipping 1,624 1,677 1,622 2,205 1,907 7,128 8,443Other miscellaneous expense 20,308 18,181 13,129 17,314 20,117 68,932 85,299Total noninterest expense $ 266,186 $ 259,438 $ 256,697 $ 263,207 $ 329,367 $ 1,045,528 $ 1,155,923
Table 12Average Balance and Yields(Unaudited) Quarter Ended December 31, 2024 September 30, 2024 December 31, 2023(Dollars in thousands) Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense RateASSETSInterest-earning assets:Loans and leases, excluding accretion $ 33,461,931 $ 538,204 6.40% $ 33,279,819 $ 553,394 6.62% $ 32,529,030 $ 527,688 6.44%Accretion income on acquired loans 2,422 0.03 2,992 0.04 4,127 0.05Loans held for sale 123,211 1,694 5.47 134,313 1,630 4.83 113,234 1,418 4.97Investment securitiesTaxable 7,555,265 57,476 3.03 7,834,596 59,732 3.03 9,044,724 55,801 2.45Tax-exempt 81,418 804 3.93 81,040 808 3.97 255,990 2,439 3.78Total investment securities 7,636,683 58,280 3.04 7,915,636 60,540 3.04 9,300,714 58,240 2.48Other investments 1,698,300 20,369 4.77 2,210,277 29,851 5.37 1,811,686 24,701 5.41Total interest-earning assets 42,920,125 620,969 5.76% 43,540,045 648,407 5.92% 43,754,664 616,174 5.59%Other assets 4,809,384 4,733,851 5,137,391Allowance for credit losses 465,971 469,919 447,879Total assets $ 47,263,538 $ 47,803,977 $ 48,444,176LIABILITIES AND SHAREHOLDERS' EQUITYInterest-bearing liabilities:Interest bearing demand and money market $ 18,845,689 $ 135,965 2.87% $ 18,043,686 $ 142,179 3.13% $ 18,292,826 139,144 3.02%Savings deposits 2,573,961 3,684 0.57 2,584,761 3,695 0.57 2,758,977 3,918 0.56Time deposits 9,646,809 103,785 4.28 8,389,472 94,944 4.50 7,537,664 80,143 4.22Total interest-bearing deposits 31,066,459 243,434 3.12 29,017,919 240,818 3.30 28,589,467 223,205 3.10Fed funds purchased, securities sold under 26,042 300 4.58 44,593 572 5.10 756,338 8,257 4.33agreement to repurchase and otherShort-term BTFP borrowings 897,826 10,772 4.77 3,500,000 41,992 4.77 3,500,000 44,448 5.04Subordinated and long-term borrowings 123,442 1,284 4.14 265,790 2,873 4.30 443,251 4,672 4.18Total interest-bearing liabilities 32,113,769 255,790 3.17% 32,828,302 286,255 3.47% 33,289,056 280,582 3.34%Noninterest-bearing liabilities:Demand deposits 8,676,765 8,616,534 9,625,912Other liabilities 883,643 938,315 1,021,865Total liabilities 41,674,177 42,383,151 43,936,833Shareholders' equity 5,589,361 5,420,826 4,507,343Total liabilities and shareholders' equity $ 47,263,538 $ 47,803,977 $ 48,444,176Net interest income/net interest spread 365,179 2.59% 362,152 2.45% 335,592 2.25%Net yield on earning assets/net interest margin 3.38% 3.31% 3.04%Taxable equivalent adjustment:Loans and investment securities (648) (694) (987)Net interest revenue $ 364,531 $ 361,458 $ 334,605
Table 12Average Balance and Yields Continued Year-To-Date December 31, 2024 December 31, 2023(Dollars in thousands) Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense RateASSETSInterest-earning assets:Loans and leases, excluding accretion $ 33,107,659 $ 2,154,654 6.50% $ 31,913,925 $ 1,980,600 6.21%Accretion income on acquired loans 11,911 0.04 25,949 0.08Loans held for sale 111,156 6,161 5.54 85,961 4,450 5.18Investment securitiesTaxable 7,881,989 243,466 3.09 9,971,325 208,122 2.09Tax-exempt 80,880 3,289 4.07 351,010 11,653 3.32Total investment securities 7,962,869 246,755 3.10 10,322,335 219,775 2.13Other investments 2,450,623 130,499 5.33 1,629,036 83,577 5.13Total interest-earning assets 43,632,307 2,549,980 5.84% 43,951,257 2,314,351 5.27%Other assets 4,812,184 5,204,505Allowance for credit losses 471,212 451,809Total assets $ 47,973,279 $ 48,703,953LIABILITIES AND SHAREHOLDERS' EQUITYInterest-bearing liabilities:Interest bearing demand and money market $ 18,739,210 573,826 3.06% $ 18,314,649 $ 472,723 2.58%Savings deposits 2,626,539 14,922 0.57 3,028,875 14,955 0.49Time deposits 8,330,176 368,572 4.42 6,674,231 246,476 3.69Total interest-bearing deposits 29,695,925 957,320 3.22 28,017,755 734,154 2.62Fed funds purchased, securities sold under 86,171 4,131 4.79 800,170 32,590 4.07agreement to repurchase and otherShort-term FHLB borrowings – – – 1,389,759 68,235 4.91Short-term BTFP borrowings 2,845,902 136,404 4.79 2,052,055 104,696 5.10Subordinated and long-term borrowings 306,396 13,287 4.34 452,645 19,136 4.23Total interest-bearing liabilities 32,934,394 1,111,142 3.37% 32,712,384 958,811 2.93%Noninterest-bearing liabilities:Demand deposits 8,780,004 10,610,698Other liabilities 905,176 893,438Total liabilities 42,619,574 44,216,520Shareholders' equity 5,353,705 4,487,433Total liabilities and shareholders' equity $ 47,973,279 $ 48,703,953Net interest income/net interest spread 1,438,838 2.47% 1,355,540 2.33%Net yield on earning assets/net interest margin 3.30% 3.08%Taxable equivalent adjustment:Loans and investment securities (2,623) (4,184)Net interest revenue $ 1,436,215 $ 1,351,356
Table 13Selected Additional Data(Unaudited) Quarter Ended(Dollars in thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023MORTGAGE SERVICING RIGHTS (“MSR”):Fair value, beginning of period $ 104,891 $ 113,595 $ 111,685 $ 106,824 $ 116,266Originations of servicing assets 4,227 3,361 3,687 2,736 2,636Changes in fair value:Due to changes in valuation inputs or assumptions(1) 9,193 (8,232) 927 4,781 (9,043)Other changes in fair value(2) (3,717) (3,833) (2,704) (2,656) (3,035)Fair value, end of period $ 114,594 $ 104,891 $ 113,595 $ 111,685 $ 106,824MORTGAGE BANKING REVENUE:Origination $ 332 $ 2,145 $ 3,976 $ 3,165 $ 1,040Servicing 5,961 6,026 5,899 5,951 5,926Total mortgage banking revenue excluding MSR 6,293 8,171 9,875 9,116 6,966Due to changes in valuation inputs or assumptions(1) 9,193 (8,232) 927 4,781 (9,043)Other changes in fair value(2) (3,717) (3,833) (2,704) (2,656) (3,035)Market value adjustment on MSR Hedge (8,215) 5,027 (1,925) (4,798) 3,975Total mortgage banking revenue $ 3,554 $ 1,133 $ 6,173 $ 6,443 $ (1,137)Mortgage loans serviced $ 8,043,306 $ 7,927,028 $ 7,824,895 $ 7,764,936 $ 7,702,592MSR/mortgage loans serviced 1.42% 1.32% 1.45% 1.44% 1.39%
(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) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023AVAILABLE FOR SALE SECURITIES, at fair valueU.S. Treasury securities $ – $ – $ – $ 239,402 $ 465,018Obligations of U.S. government agencies 281,231 300,730 305,200 318,233 332,011Mortgage-backed securities issued or guaranteed byU.S. agencies (“MBS”):Residential pass-through:Guaranteed by GNMA 66,581 71,001 69,788 72,034 75,662Issued by FNMA and FHLMC 3,965,556 4,163,760 4,125,416 4,254,227 4,387,101Other residential mortgage-back securities 934,721 1,135,004 1,233,868 1,210,617 727,434Commercial mortgage-backed securities 1,549,641 1,664,288 1,673,823 1,694,967 1,742,837Total MBS 6,516,499 7,034,053 7,102,895 7,231,845 6,933,034Obligations of states and political subdivisions 132,069 137,996 133,155 134,643 137,624Other domestic debt securities 47,402 51,599 64,288 67,421 67,197Foreign debt securities 316,787 317,307 315,884 315,045 140,592Total available for sale securities $ 7,293,988 $ 7,841,685 $ 7,921,422 $ 8,306,589 $ 8,075,476
Table 14Reconciliation 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) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023Adjusted Income from Continuing OperationsAvailable to Common ShareholdersIncome (loss) from continuing operations $ 132,715 $ 136,439 $ 137,472 $ 116,978 $ (263,737) $ 523,604 $ 3,684Plus: Merger expense – – – – – – 5,192Incremental merger related expense – – – – 7,500 – 18,131Gain on extinguishment of debt – – (1,098) (576) (652) (1,674) (1,792)Restructuring and other nonroutine expenses (505) (920) 6,675 251 41,522 5,501 57,548Pension settlement expense – – – – 11,226 – 11,826Less: Security losses, net (3) (2,947) (4) (9) (384,524) (2,962) (435,652)Gain on sale of businesses – 14,980 – – 14,980 -Nonroutine losses, net – – – – – – (6,653)Tax adjustment (118) 476 (2,209) (74) 105,275 (1,925) 126,211Adjusted income from continuing operations 132,331 137,990 130,282 116,736 75,108 517,338 410,683Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 9,488 9,488Adjusted income from continuing operations $ 129,959 $ 135,618 $ 127,910 $ 114,364 $ 72,736 $ 507,850 $ 401,195available to common shareholders
Quarter Ended Year-to-date(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023Pre-Tax Pre-Provision Net Revenuefrom Continuing OperationsIncome (loss) from continuing operations $ 132,715 $ 136,439 $ 137,472 $ 116,978 $ (263,737) $ 523,604 $ 3,684Plus: Provision for credit losses 15,000 12,000 22,000 22,000 38,000 71,000 80,000Income tax expense (benefit) 36,795 39,482 40,807 35,509 (80,485) 152,593 (4,594)Pre-tax pre-provision net revenue from $ 184,510 $ 187,921 $ 200,279 $ 174,487 $ (306,222) $ 747,197 $ 79,090continuing operations
Quarter Ended Year-to-date(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023Adjusted Pre-Tax Pre-Provision Net Revenuefrom Continuing OperationsIncome (loss) from continuing operations $ 132,715 $ 136,439 $ 137,472 $ 116,978 $ (263,737) $ 523,604 $ 3,684Plus: Provision for credit losses 15,000 12,000 22,000 22,000 38,000 71,000 80,000Merger expense – – – – – – 5,192Incremental merger related expense – – – – 7,500 – 18,131Gain on extinguishment of debt – – (1,098) (576) (652) (1,674) (1,792)Restructuring and other nonroutine expenses (505) (920) 6,675 251 41,522 5,501 57,548Pension settlement expense – – – – 11,226 – 11,826Income tax expense (benefit) 36,795 39,482 40,807 35,509 (80,485) 152,593 (4,594)Less: Security losses, net (3) (2,947) (4) (9) (384,524) (2,962) (435,652)Gain on sale of businesses – 14,980 – – 14,980 -Nonroutine losses, net – – – – – – (6,653)Adjusted pre-tax pre-provision net revenue $ 184,008 $ 189,948 $ 190,880 $ 174,171 $ 137,898 $ 739,006 $ 612,300from continuing operations
Quarter Ended Year-to-date(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023Total Adjusted RevenueNet interest revenue $ 364,531 $ 361,458 $ 356,318 $ 353,908 $ 334,605 $ 1,436,215 $ 1,351,356Total Adjusted Noninterest RevenueTotal noninterest revenue $ 86,165 $ 85,901 $ 100,658 $ 83,786 $ (311,460) $ 356,510 $ (116,343)Less: Security losses, net (3) (2,947) (4) (9) (384,524) (2,962) (435,652)Gain on sale of businesses – – 14,980 – – 14,980 -Nonroutine losses, net – – – – – – (6,653)Total adjusted noninterest revenue $ 86,168 $ 88,848 $ 85,682 $ 83,795 $ 73,064 $ 344,492 $ 325,962Total adjusted revenue $ 450,699 $ 450,306 $ 442,000 $ 437,703 $ 407,669 $ 1,780,707 $ 1,677,318
Quarter Ended Year-to-date(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023Total Adjusted Noninterest ExpenseTotal noninterest expense $ 266,186 $ 259,438 $ 256,697 $ 263,207 $ 329,367 $ 1,045,528 $ 1,155,923Less: Merger expense – – – – – – 5,192Incremental merger related expense – – – – 7,500 – 18,131Gain on extinguishment of debt – – (1,098) (576) (652) (1,674) (1,792)Restructuring and other nonroutine expenses (505) (920) 6,675 251 41,522 5,501 57,548Pension settlement expense – – – – 11,226 – 11,826Total adjusted noninterest expense $ 266,691 $ 260,358 $ 251,120 $ 263,532 $ 269,771 $ 1,041,701 $ 1,065,018
Quarter Ended Year-to-date(In thousands) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023Total Tangible Assets, Excluding AOCITotal assets $ 47,019,190 $ 49,204,933 $ 47,984,078 $ 48,313,863 $ 48,934,510 $ 47,019,190 $ 48,934,510Less: Goodwill 1,366,923 1,366,923 1,366,923 1,367,785 1,367,785 1,366,923 1,367,785Other intangible assets, net 83,190 87,094 91,027 96,126 100,191 83,190 100,191Total tangible assets 45,569,077 47,750,916 46,526,128 46,849,952 47,466,534 45,569,077 47,466,534Less: AOCI (694,495) (590,342) (782,462) (791,333) (761,829) (694,495) (761,829)Total tangible assets, excluding AOCI $ 46,263,572 $ 48,341,258 $ 47,308,590 $ 47,641,285 $ 48,228,363 $ 46,263,572 $ 48,228,363
Quarter Ended Year-to-date(Dollars in thousands, except per share data) Dec 2024 Sep 2024 Jun 2024 Mar 2024 Dec 2023 Dec 2024 Dec 2023PERIOD END BALANCES:Total Shareholders' Equity, Excluding AOCITotal shareholders' equity $5,569,683 $5,572,863 $5,287,758 $5,189,932 $5,167,843 $5,569,683 $5,167,843Less: AOCI (694,495) (590,342) (782,462) (791,333) (761,829) (694,495) (761,829)Total shareholders' equity, excluding AOCI $6,264,178 $6,163,205 $6,070,220 $5,981,265 $5,929,672 $6,264,178 $5,929,672Common Shareholders' Equity, Excluding AOCITotal shareholders' equity $5,569,683 $5,572,863 $5,287,758 $5,189,932 $5,167,843 $5,569,683 $5,167,843Less: preferred stock 166,993 166,993 166,993 166,993 166,993 166,993 166,993Common shareholders' equity 5,402,690 5,405,870 5,120,765 5,022,939 5,000,850 5,402,690 5,000,850Less: AOCI (694,495) (590,342) (782,462) (791,333) (761,829) (694,495) (761,829)Common shareholders' equity, excluding AOCI $6,097,185 $5,996,212 $5,903,227 $5,814,272 $5,762,679 $6,097,185 $5,762,679Total Tangible Common Shareholders' Equity, Excluding AOCITotal shareholders' equity $5,569,683 $5,572,863 $5,287,758 $5,189,932 $5,167,843 $5,569,683 $5,167,843Less: Goodwill 1,366,923 1,366,923 1,366,923 1,367,785 1,367,785 1,366,923 1,367,785Other intangible assets, net 83,190 87,094 91,027 96,126 100,191 83,190 100,191Preferred stock 166,993 166,993 166,993 166,993 166,993 166,993 166,993Total tangible common shareholders' equity 3,952,577 3,951,853 3,662,815 3,559,028 3,532,874 3,952,577 3,532,874Less: AOCI (694,495) (590,342) (782,462) (791,333) (761,829) (694,495) (761,829)Total tangible common shareholders' equity, excluding AOCI $4,647,072 $4,542,195 $4,445,277 $4,350,361 $4,294,703 $4,647,072 $4,294,703AVERAGE BALANCES:Total Tangible Common Shareholders' EquityTotal shareholders' equity $5,589,361 $5,420,826 $5,207,254 $5,194,048 $4,507,343 $5,353,705 $4,487,433Less: Goodwill 1,366,923 1,366,923 1,367,358 1,367,785 1,367,916 1,367,245 1,367,818Other intangible assets, net 85,323 89,262 93,743 98,350 102,765 91,645 110,053Preferred stock 166,993 166,993 166,993 166,993 166,993 166,993 166,993Total tangible common shareholders' equity $3,970,122 $3,797,648 $3,579,160 $3,560,920 $2,869,669 $3,727,822 $2,842,569Total average assets $47,263,538 $47,803,977 $48,192,719 $48,642,540 $48,444,176 $47,973,279 $48,703,953Total shares of common stock outstanding 183,527,575 182,315,142 182,430,427 182,681,325 182,871,775 183,527,575 182,871,775Average shares outstanding-diluted 186,038,243 185,496,110 185,260,963 185,574,130 182,688,190 185,592,759 182,608,713Tangible common shareholders' equity to tangible assets (1) 8.67% 8.28% 7.87% 7.60% 7.44% 8.67% 7.44%Tangible common shareholders' equity, excluding AOCI, 10.04 9.40 9.40 9.13 8.90 10.04 8.90to tangible assets, excluding AOCI (2)Return on average tangible common equity from continuing 13.06 14.04 15.18 12.94 (36.79) 13.79 (0.20)operations (3)Return on average tangible common equity (4) 13.06 14.04 15.18 12.94 35.49 13.79 18.74Adjusted return on average tangible common equity from 13.02 14.21 14.37 12.92 10.06 13.62 14.11continuing operations (5)Adjusted return on average assets from continuing operations (6) 1.11 1.15 1.09 0.97 0.62 1.08 0.84Adjusted return on average common shareholders' equity from 9.53 10.27 10.21 9.15 6.65 9.79 9.29continuing operations (7)Pre-tax pre-provision net revenue from continuing operations 1.55 1.56 1.67 1.44 (2.51) 1.56 0.16to total average assets (8)Adjusted pre-tax pre-provision net revenue from continuing 1.55 1.58 1.59 1.44 1.13 1.54 1.26operations to total average assets (9)Tangible book value per common share (10) $ 21.54 $ 21.68 $ 20.08 $ 19.48 $ 19.32 $ 21.54 $ 19.32Tangible book value per common share, excluding AOCI (11) 25.32 24.91 24.37 23.81 23.48 25.32 23.48Adjusted earnings from continuing operations per common share (12) $ 0.70 $ 0.73 $ 0.69 $ 0.62 $ 0.40 $ 2.74 $ 2.20Adjusted dividend payout ratio from continuing operations (13) 35.71% 34.25% 36.23% 40.32% 58.75% 36.50% 42.73%
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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