HOUSTON and TUPELO,
Miss., July 24, 2023 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today
announced financial results for the quarter ended June 30,
2023.
Highlights for the second quarter of 2023 included:
- Achieved quarterly net income available to common shareholders
of $111.7 million, or $0.61 per diluted common share, and adjusted net
income available to common shareholders,(1) which
excludes non-routine income and expenses,(2) of
$116.9 million, or $0.64 per diluted common share.
- Generated net organic loan growth of $1.3 billion for the second quarter of 2023, or
16.3% annualized. On a year-to-date basis, loans have grown
$2.2 billion, or 14.7%
annualized.
- Reflected a decline in total deposits of $704.8 million during the quarter. On a
year-to-date basis, total deposits have declined $254.9 million, or 1.3% annualized.
- Continued to maintain strong balance sheet liquidity, with a
loan-to-deposit ratio of 84.1% at June 30,
2023.
- Reported total revenue of $465.8
million, down 2.9% compared to the prior quarter (excluding
securities gains and losses) as net interest revenue was negatively
impacted by higher funding costs, partially offset by meaningful
growth in several noninterest revenue sources spotlighted by record
quarterly insurance commission revenue of $45.6 million.
- Decreased adjusted noninterest expenses(1) to
$297.0 million, down $8 million, or 2.6% from the prior quarter as we
continue to refine our operating leverage.
- Announced the closure or consolidation of 35 branches and other
strategic initiatives including early retirements and other
personnel efficiencies to occur primarily during the third quarter
of 2023. These initiatives are now projected to collectively reduce
noninterest expense by approximately $35 - $40 million
annually, an increase from our previous estimate of $15 - $20
million.
"Our second quarter results reflect several key successes,
particularly from a business development standpoint," remarked
Dan Rollins, Chairman and Chief
Executive Officer of the Company. "While higher than anticipated
deposit costs negatively impacted our net interest margin, we had
another very solid quarter from a loan growth perspective and our
bankers continue to successfully protect our core deposit
relationships. From a liquidity and capital perspective, our
balance sheet remains in a strong position. We also reported
meaningful revenue growth in several of our noninterest revenue
businesses, highlighted by record quarterly revenue from our
insurance team. Finally, we remain encouraged with our credit
quality. Net charge-offs for the quarter remain at low
levels, and our total non-performing asset levels declined."
Earnings Summary
For the second quarter of 2023, the Company reported net income
available to common shareholders of $111.7
million, or $0.61 per diluted
common share, compared with $124.6
million, or $0.68 per diluted
common share, for the second quarter of 2022 and $74.3 million, or $0.40 per diluted common share, for the first
quarter of 2023. Adjusted net income available to common
shareholders(1) was $116.9
million, or $0.64 per diluted
common share, for the second quarter of 2023, compared with
$134.2 million, or $0.73 per diluted common share, for the second
quarter of 2022 and $124.4 million,
or $0.68 per diluted common share,
for the first quarter of 2023. Additionally, the Company reported
adjusted pre-tax pre-provision net revenue (PPNR)(1) of
$168.8 million, or 1.38% of average
assets on an annualized basis, for the second quarter of 2023
compared to $176.7 million, or 1.51%
of average assets on an annualized basis, for the second quarter of
2022 and $174.6 million, or 1.46% of
average assets on an annualized basis, for the first quarter of
2023.
The declines in adjusted earnings(1) and
PPNR(1) metrics for the second quarter of 2023 were
driven by a decline in net interest revenue and an increase in the
provision for credit losses, which were partially offset by growth
in several noninterest revenue categories and improvement in
operating expenses.
Net Interest Revenue
Net interest revenue was $333.6
million for the second quarter of 2023, compared to
$324.8 million for the second quarter
of 2022 and $354.3 million for the
first quarter of 2023. The net interest margin was 3.03% for the
second quarter of 2023, compared with 3.06% for the second quarter
of 2022 and 3.29% for the first quarter of 2023.
The decline in net interest revenue in the second quarter of
2023 of $20.7 million, or 5.9%,
compared to the linked quarter was primarily driven by net interest
margin pressure resulting from an increase in funding costs,
including the impact of mix shift out of noninterest bearing into
interest bearing deposits. The decline also included $4.8 million in lower accretion revenue related
to acquired loans and leases. Accretion revenue was
$5.2 million and $10.0 million for the second quarter of 2023 and
the first quarter of 2023, respectively, adding approximately 4
basis points to the net interest margin for the second quarter of
2023 and 9 basis points for the first quarter of 2023.
Yield on net loans, loans held for sale, and leases excluding
accretion, was 6.18% for the second quarter of 2023, up 31 basis
points from 5.87% for the first quarter of 2023, while yield on
total interest earning assets was 5.21% for the second quarter of
2023, up 33 basis points from 4.88% for the first quarter of 2023.
The increase in earning asset yields continues to be driven by both
the impact of rising interest rates on loan portfolio repricing and
new loan production, as well as a change in mix as cash flows from
lower yielding securities are deployed primarily into higher
yielding loans. Approximately 20% 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 1.87% for the
second quarter of 2023, compared with 1.28% for the first quarter
of 2023, reflecting continued competitive pressure on rates as well
as a continued mix shift from noninterest bearing to interest
bearing products during the second quarter of 2023. Our total
deposit beta is 33% cycle-to-date. Total interest-bearing
liabilities costs increased to 2.92% from 2.23% during the second
quarter of 2023.
Balance Sheet Activity
Loans and leases, net of unearned income, increased $1.3 billion during the second quarter of 2023,
or 16.3% annualized, to $32.6
billion. Consistent with prior quarters, the loan growth
continues to be diverse from both a loan category and geographic
standpoint, including approximately $556.6
million in Commercial and Industrial, $268.4 million in Commercial Real Estate and
$453.6 million in Residential
Mortgage due to increased seasonal mortgage loan production. Total
investment securities of $10.3
billion at June 30, 2023
decreased $623.3 million during the
second quarter as routine portfolio cash flows continue to be
redeployed into loan growth.
Total deposits decreased $704.8
million to $38.7 billion as of
June 30, 2023 with the decline
primarily in corporate account activity. Our community bank
deposits reflected net deposit outflows of $129.6 million in the second quarter, however on
a year-to-date basis, they increased $346.7
million, demonstrating the strength of our community
franchise deposit base. Total brokered deposits were $1.8 billion at June 30,
2023, down slightly from $1.9
billion at the end of the first quarter of 2023. The
June 30, 2023 loan to deposit ratio
was 84.1% and securities to total assets was 21.0%, reflecting
continued strong liquidity. Noninterest bearing deposits
represented 26.4% of total deposits at the end of the second
quarter of 2023, declining from 29.2% at March 31, 2023, as we saw further migration from
noninterest bearing products into interest bearing products. The
Company's deposit base continues to be very granular, with average
transaction account balances of approximately $22,000 for consumer accounts and $132,000 for commercial accounts at June 30, 2023. Additionally, approximately 98% of
the Company's deposit accounts have balances less than $250,000, and approximately 75% of our deposit
balances were FDIC insured or collateralized at quarter-end.
Short-term borrowings declined $2.2
billion during the quarter to $3.5
billion at June 30, 2023 while
cash, due from balances and deposits at the Federal Reserve
declined $3.4 billion to $1.7 billion at June 30,
2023. These balances returned to more normalized levels
after excess on-balance sheet liquidity was proactively added late
in the first quarter of 2023 in response to industry-wide
disruption.
Credit Results, Provision for Credit Losses and Allowance for
Credit Losses
Total non-performing assets as a percent of total assets were
0.34% at June 30, 2023 compared to
0.27% at June 30, 2022 and 0.33% at
March 31, 2023. Total non-performing
loans and leases as a percent of loans and leases, net were 0.50%
at June 30, 2023, compared to 0.41%
at June 30, 2022 and 0.53% at
March 31, 2023. Other real estate owned and other repossessed
assets declined meaningfully during the second quarter to
$2.9 million at June 30, 2023
compared to the June 30, 2022 balance
of $14.4 million and the
March 31, 2023 balance of $5.3
million.
Net charge-offs for the second quarter of 2023 were $12.7 million, or 0.16% of average net loans and
leases on an annualized basis, compared with net recoveries of
$1.4 million for the second quarter
of 2022 and net charge-offs of $1.9
million for the first quarter of 2023. The increase in net
charge-offs during the second quarter of 2023 was driven primarily
by the charge down of one C&I credit that was previously
identified as impaired. The provision for credit losses for the
second quarter of 2023 was $15.0
million, compared with $1.0
million for second quarter of 2022 and $10.0 million for the first quarter of 2023. The
second quarter of 2023 provision expense included a $25.0 million provision charge for funded loans
and a $10.0 million provision
reversal for unfunded commitments. The allowance for credit losses
of $466.0 million at June 30, 2023 represented 1.43% as a percent of
total loans and leases, stable compared to the March 31, 2023 coverage of 1.45%.
Noninterest Revenue
Noninterest revenue was $132.3
million for the second quarter of 2023, compared with
$125.2 million for the second quarter
of 2022 and $74.1 million for the
first quarter of 2023. First quarter 2023 noninterest revenue
included a $51.3 million non-routine loss on the sale of
securities. Excluding the securities loss, noninterest revenue
increased $6.9 million from the first
quarter of 2023 revenue driven by increases in insurance
commission, card, and mortgage banking revenue, partially offset by
lower other noninterest revenue.
Insurance commission revenue continues to be strong at
$45.6 million for the second quarter
of 2023, compared with $40.0 million for the second quarter of 2022
and $39.6 million for the first
quarter of 2023. The year-over-year quarterly revenue was up
$5.6 million or 14.0% reflecting
continued strong performance. The linked quarter increase of
$6.0 million or 15.1% was primarily
in property and casualty commissions and was driven by successful
client acquisition efforts as well as continued upward pressure on
policy rates.
Credit card, debit card and merchant fee revenue was
$12.6 million for the second quarter
of 2023, compared with $16.6 million
for the second quarter of 2022 and $11.9 million for the first quarter of
2023. The second quarter of 2022 included vendor incentive
revenue that was elevated compared to other periods. Deposit
service charge revenue was $17.2
million for the second quarter of 2023 compared with
$18.3 million for the second quarter
of 2022 and $16.5 million for the
first quarter of 2023. The decline compared to the second quarter
of 2022 includes increases in earnings credit rate due to the
increasing rate environment. Other noninterest revenue was
$26.7 million for the second quarter
of 2023, compared with $17.3 million
for the second quarter of 2022 and $29.8
million for the first quarter of 2023. The decline compared
to the first quarter of 2023 is related primarily to a decline in
revenue on SBA loan sales, while the increase from the second
quarter of 2022 was in multiple areas including partnership income,
credit fees, FX income and other revenue streams.
Mortgage production and servicing revenue totaled $6.8 million for the second quarter of 2023,
compared with $6.8 million for the
second quarter of 2022 and $8.4
million for the first quarter of 2023. The net mortgage
servicing rights valuation adjustment was a positive $1.6 million for the second quarter of 2023,
compared with a positive $4.7 million
for the second quarter of 2022 and a negative $2.3 million for the first quarter of 2023 with
the variances due to continued changes in the interest rate
environment. Mortgage origination volume for the second quarter of
2023 was $848.9 million, compared
with $913.0 million for the second
quarter of 2022 and $454.2 million
for the first quarter of 2023. Compared to the same quarter in
2022, mortgage origination volume was down 7.0%, and was up 86.9%
compared to the prior quarter reflecting seasonality.
Noninterest Expense
Noninterest expense for the second quarter of 2023 was
$303.9 million, compared with
$285.9 million for the second quarter
of 2022 and $319.3 million for the
first quarter of 2023. Adjusted noninterest expense(1)
for the second quarter of 2023 was $297.0
million, compared with $271.8
million for the second quarter of 2022 and $305.0 million for the first quarter of 2023.
Adjusted noninterest expense(1) for the second quarter
of 2023 excludes $1.8 million in
total merger related expenses, $6.2
million in branch closure and other restructuring charges,
and a $1.1 million debt
extinguishment gain. The adjusted efficiency ratio(1)
was 63.6% for the second quarter of 2023 compared to 63.5% for the
first quarter of 2023, as the decline in the second quarter's
revenue offset the impact of lower expenses.
The $8.0 million, or 2.6%, decline
in adjusted noninterest expense(1) compared to the
linked quarter was driven primarily by a decline in salaries and
employee benefits expense as well as data processing and software
expense, partially offset by an increase in amortization of
intangibles. Salaries and benefits expense declined $4.8 million compared to the first quarter of
2023 due to a number of factors including lower payroll tax expense
and retirement plan expense. Data processing and software expense
declined $3.8 million compared to the
first quarter of 2023 related to cost savings associated with
vendor service terminations and vendor contracts.
The Company continues to identify strategic opportunities to
improve operating efficiency, including branch optimization.
In April 2023, the Company announced
35 additional branch locations that will be closed or consolidated
early in the third quarter of 2023. These branch closures and
consolidations are in addition to the 17 executed in the fourth
quarter of 2022. The Company also continues to execute on other
initiatives designed to improve efficiency, including
personnel-related initiatives. These branch optimization and other
efficiency initiatives are now collectively expected to result in
annual cost savings of $35 - 40
million, an increase from our previous estimate of $15 - $20 million.
One-time costs associated with the initiatives included
$6.2 million in the second quarter of
2023 and are expected to include $10
- $12 million over the remainder of
2023 with the majority in the third quarter.
Capital Management
Total shareholders' equity was $4.5
billion at June 30, 2023
compared with $4.4 billion at
June 30, 2022 and $4.5 billion at March 31,
2023. Estimated regulatory capital ratios at June 30,
2023 included Common Equity Tier 1 capital of 10.1%, Tier 1 capital
of 10.5%, Total risk-based capital of 12.7%, and Tier 1 leverage
capital of 8.5%. During the second quarter of 2023, the Company did
not repurchase any shares of its common stock pursuant to its 10
million share repurchase authorization for 2023. Outstanding common
shares were 182.6 million as of June 30,
2023.
Summary
Rollins concluded, "While deposit competition and pricing are
impacting financial performance across the industry, we are proud
of our second quarter accomplishments and we remain optimistic on
our business opportunities as we look forward. We have continued to
grow loans in a steady and prudent manner, protect core deposit
relationships and maintain stable credit quality. Additionally, we
continue to execute on strategic initiatives designed to improve
our operating efficiency. As we move into the second half of 2023,
these key strategies will continue to be our focus."
Conference Call and Webcast
The Company will conduct a conference call to discuss its second
quarter 2023 financial results on July 25,
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.
|
(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 21
of this news release.
|
|
|
(2) See Table 14 for
detail on non-routine income and expenses.
|
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, 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; 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; 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 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 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 the FDIC, including those factors included in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2022, 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)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
Earnings
Summary:
|
|
|
|
|
|
|
|
|
|
Interest
revenue
|
$
573,419
|
$
526,132
|
$
473,548
|
$
405,559
|
$
349,555
|
|
$
1,099,551
|
$
681,485
|
|
Interest
expense
|
239,868
|
171,862
|
114,188
|
50,205
|
24,789
|
|
411,730
|
44,897
|
|
Net interest
revenue
|
333,551
|
354,270
|
359,360
|
355,354
|
324,766
|
|
687,821
|
636,588
|
|
Provision for credit
losses
|
15,000
|
10,000
|
6,000
|
—
|
1,000
|
|
25,000
|
1,000
|
|
Net interest revenue,
after provision for credit losses
|
318,551
|
344,270
|
353,360
|
355,354
|
323,766
|
|
662,821
|
635,588
|
|
Noninterest
revenue
|
132,290
|
74,071
|
114,873
|
124,491
|
125,234
|
|
206,361
|
253,669
|
|
Noninterest
expense
|
303,878
|
319,279
|
340,671
|
319,734
|
285,888
|
|
623,157
|
577,555
|
|
Income before income
taxes
|
146,963
|
99,062
|
127,562
|
160,111
|
163,112
|
|
246,025
|
311,702
|
|
Income tax
expense
|
32,935
|
22,433
|
29,628
|
36,713
|
36,154
|
|
55,368
|
69,797
|
|
Net income
|
114,028
|
76,629
|
97,934
|
123,398
|
126,958
|
|
190,657
|
241,905
|
|
Less: Preferred
dividends
|
2,372
|
2,372
|
2,372
|
2,372
|
2,372
|
|
4,744
|
4,744
|
|
Net income available to
common shareholders
|
$
111,656
|
$
74,257
|
$
95,562
|
$
121,026
|
$
124,586
|
|
$
185,913
|
$
237,161
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet -
Period End Balances
|
|
|
|
|
|
|
|
|
Total assets
|
$
48,838,660
|
$
51,693,096
|
$
48,653,414
|
$
47,699,660
|
$
47,747,708
|
|
$
48,838,660
|
$ 47,747,708
|
|
Total earning
assets
|
44,012,570
|
46,808,612
|
43,722,544
|
42,832,355
|
43,093,974
|
|
44,012,570
|
43,093,974
|
|
Available-for-sale
securities
|
10,254,580
|
10,877,879
|
11,944,096
|
12,441,894
|
13,450,621
|
|
10,254,580
|
13,450,621
|
|
Loans and leases, net
of unearned income
|
32,556,708
|
31,282,594
|
30,349,277
|
29,296,450
|
28,360,485
|
|
32,556,708
|
28,360,485
|
|
Allowance for credit
losses (ACL)
|
466,013
|
453,727
|
440,347
|
433,363
|
440,112
|
|
466,013
|
440,112
|
|
Net book value of
acquired loans
|
7,357,174
|
7,942,980
|
8,754,526
|
8,841,588
|
9,721,672
|
|
7,357,174
|
9,721,672
|
|
Unamortized net
discount on acquired loans
|
37,000
|
41,748
|
58,162
|
58,887
|
65,350
|
|
37,000
|
65,350
|
|
Total
deposits
|
38,701,669
|
39,406,454
|
38,956,614
|
39,003,946
|
40,189,083
|
|
38,701,669
|
40,189,083
|
|
Total deposits and
repurchase agreements
|
39,492,427
|
40,177,789
|
39,665,350
|
39,682,280
|
40,838,260
|
|
39,492,427
|
40,838,260
|
|
Other short-term
borrowings
|
3,500,226
|
5,700,228
|
3,300,231
|
2,495,000
|
1,200,000
|
|
3,500,226
|
1,200,000
|
|
Subordinated and
long-term debt
|
449,733
|
462,144
|
462,554
|
463,291
|
465,073
|
|
449,733
|
465,073
|
|
Total shareholders'
equity
|
4,485,850
|
4,490,417
|
4,311,374
|
4,166,925
|
4,437,925
|
|
4,485,850
|
4,437,925
|
|
Total shareholders'
equity, excluding AOCI (1)
|
5,648,925
|
5,572,303
|
5,533,912
|
5,464,737
|
5,374,270
|
|
5,648,925
|
5,374,270
|
|
Common shareholders'
equity
|
4,318,857
|
4,323,424
|
4,144,381
|
3,999,932
|
4,270,932
|
|
4,318,857
|
4,270,932
|
|
Common shareholders'
equity, excluding AOCI (1)
|
$
5,481,932
|
$
5,405,310
|
$
5,366,919
|
$
5,297,744
|
$
5,207,277
|
|
$
5,481,932
|
$
5,207,277
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet -
Average Balances
|
|
|
|
|
|
|
|
|
Total assets
|
$
49,067,121
|
$
48,652,201
|
$
47,790,494
|
$
47,595,557
|
$
47,064,829
|
|
$
48,860,807
|
$ 47,370,639
|
|
Total earning
assets
|
44,231,755
|
43,819,715
|
42,976,050
|
43,079,481
|
42,688,497
|
|
44,026,874
|
43,099,548
|
|
Available-for-sale
securities
|
10,655,791
|
11,354,457
|
12,156,803
|
13,252,828
|
13,941,127
|
|
11,003,194
|
14,502,705
|
|
Loans and leases, net
of unearned income
|
31,901,096
|
30,891,640
|
29,812,924
|
28,872,156
|
27,848,097
|
|
31,399,156
|
27,479,463
|
|
Total
deposits
|
38,934,793
|
38,904,048
|
38,372,354
|
39,600,886
|
39,396,028
|
|
38,919,505
|
39,977,335
|
|
Total deposits and
repurchase agreements
|
39,708,963
|
39,632,023
|
39,033,328
|
40,256,109
|
40,062,095
|
|
39,670,703
|
40,657,308
|
|
Other short-term
borrowings
|
3,541,985
|
3,326,196
|
3,251,947
|
1,608,587
|
1,294,946
|
|
3,434,688
|
716,464
|
|
Subordinated and
long-term debt
|
455,617
|
462,385
|
462,927
|
464,843
|
465,447
|
|
458,982
|
466,141
|
|
Total shareholders'
equity
|
4,539,353
|
4,396,461
|
4,215,585
|
4,506,655
|
4,523,189
|
|
4,468,302
|
4,791,221
|
|
Common shareholders'
equity
|
$
4,372,360
|
$
4,229,468
|
$
4,048,592
|
$
4,339,662
|
$
4,356,196
|
|
$
4,301,309
|
$
4,624,228
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Assets:
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans and
leases
|
$
157,243
|
$
160,615
|
$
98,745
|
$
89,931
|
$
89,368
|
|
$
157,243
|
$
89,368
|
|
Loans and leases 90+
days past due, still accruing
|
4,412
|
5,164
|
2,068
|
11,984
|
19,682
|
|
4,412
|
19,682
|
|
Accruing TDR
(2)
|
—
|
—
|
8,598
|
16,200
|
7,385
|
|
—
|
7,385
|
|
Non-performing loans
and leases (NPL)
|
161,655
|
165,779
|
109,411
|
118,115
|
116,435
|
|
161,655
|
116,435
|
|
Other real estate owned
and other assets
|
2,857
|
5,327
|
6,725
|
8,376
|
14,399
|
|
2,857
|
14,399
|
|
Non-performing assets
(NPA)
|
$
164,512
|
$
171,106
|
$
116,136
|
$
126,491
|
$
130,834
|
|
$
164,512
|
$
130,834
|
|
|
|
(1)
|
Denotes non-GAAP
financial measure. Refer to related disclosure and reconciliation
on pages 21 - 24.
|
|
(2)
|
Cadence elected to
adopt the new accounting guidance effective January 1, 2023, which
eliminates the TDR recognition and measurement guidance via
the modified retrospective transition method (ASU 2022-02). As
such, there is no TDR reporting effective January 1,
2023.
|
|
Table
2
Selected Financial
Ratios
|
|
|
Quarter
Ended
|
|
Year-to-date
|
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
Financial Ratios and
Other Data:
|
|
|
|
|
|
|
|
|
|
Return on average
assets (2)
|
0.93 %
|
0.64 %
|
0.81 %
|
1.03 %
|
1.08 %
|
|
0.79 %
|
1.03 %
|
|
Adjusted return on
average assets (1)(2)
|
0.97
|
1.06
|
1.21
|
1.22
|
1.16
|
|
1.02
|
1.11
|
|
Return on average
common shareholders' equity (2)
|
10.24
|
7.12
|
9.36
|
11.06
|
11.47
|
|
8.72
|
10.34
|
|
Adjusted return on
average common shareholders' equity (1)(2)
|
10.72
|
11.93
|
14.00
|
13.13
|
12.36
|
|
11.31
|
11.15
|
|
Return on average
tangible common equity (1)(2)
|
16.05
|
11.40
|
15.42
|
17.40
|
18.11
|
|
13.80
|
15.81
|
|
Adjusted return on
average tangible common equity (1)(2)
|
16.80
|
19.10
|
23.04
|
20.66
|
19.50
|
|
17.91
|
17.05
|
|
Pre-tax pre-provision
net revenue to total average assets (1)(2)
|
1.32
|
0.91
|
1.11
|
1.33
|
1.40
|
|
1.12
|
1.33
|
|
Adjusted pre-tax
pre-provision net revenue to total average assets
(1)(2)
|
1.38
|
1.46
|
1.62
|
1.58
|
1.51
|
|
1.42
|
1.43
|
|
Net interest
margin-fully taxable equivalent
|
3.03
|
3.29
|
3.33
|
3.28
|
3.06
|
|
3.16
|
2.99
|
|
Net interest rate
spread-fully taxable equivalent
|
2.29
|
2.65
|
2.84
|
3.05
|
2.94
|
|
2.46
|
2.87
|
|
Efficiency ratio fully
tax equivalent (1)
|
65.08
|
74.36
|
71.67
|
66.49
|
63.38
|
|
69.53
|
64.72
|
|
Adjusted efficiency
ratio fully tax equivalent (1)
|
63.62
|
63.46
|
58.69
|
60.33
|
60.46
|
|
63.54
|
61.98
|
|
Loan/deposit
ratio
|
84.12 %
|
79.38 %
|
77.91 %
|
75.11 %
|
70.57 %
|
|
84.12 %
|
70.57 %
|
|
Full time equivalent
employees
|
6,479
|
6,567
|
6,572
|
6,629
|
6,659
|
|
6,479
|
6,659
|
|
|
|
|
|
|
|
|
|
|
Credit Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) to average loans and leases (2)
|
0.16 %
|
0.02 %
|
(0.07) %
|
0.09 %
|
(0.02) %
|
|
0.09 %
|
(0.01) %
|
|
Provision for credit
losses to average loans and leases (2)
|
0.19
|
0.13
|
0.08
|
—
|
0.01
|
|
0.16
|
0.01
|
|
ACL to loans and
leases, net
|
1.43
|
1.45
|
1.45
|
1.48
|
1.55
|
|
1.43
|
1.55
|
|
ACL to NPL
|
288.28
|
273.69
|
402.47
|
366.90
|
377.99
|
|
288.28
|
377.99
|
|
NPL to loans and
leases, net
|
0.50
|
0.53
|
0.36
|
0.40
|
0.41
|
|
0.50
|
0.41
|
|
NPA to total
assets
|
0.34
|
0.33
|
0.24
|
0.27
|
0.27
|
|
0.34
|
0.27
|
|
|
|
|
|
|
|
|
|
|
Equity
Ratios:
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity to total assets
|
9.19 %
|
8.69 %
|
8.86 %
|
8.74 %
|
9.29 %
|
|
9.19 %
|
9.29 %
|
|
Total common
shareholders' equity to total assets
|
8.84
|
8.36
|
8.52
|
8.39
|
8.94
|
|
8.84
|
8.94
|
|
Tangible common
shareholders' equity to tangible assets (1)
|
5.80
|
5.46
|
5.42
|
5.24
|
5.82
|
|
5.80
|
5.82
|
|
Tangible common
shareholders' equity to tangible assets, excluding
AOCI (1)
|
8.06
|
7.46
|
7.82
|
7.84
|
7.70
|
|
8.06
|
7.70
|
|
|
|
|
|
|
|
|
|
|
Capital Adequacy
(3):
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
capital
|
10.1 %
|
10.1 %
|
10.2 %
|
10.3 %
|
10.3 %
|
|
10.1
|
10.3 %
|
|
Tier 1
capital
|
10.5
|
10.6
|
10.7
|
10.7
|
10.8
|
|
10.5
|
10.8
|
|
Total
capital
|
12.7
|
12.8
|
12.8
|
12.8
|
13.0
|
|
12.7
|
13.0
|
|
Tier 1 leverage
capital
|
8.5
|
8.4
|
8.4
|
8.4
|
8.4
|
|
8.5
|
8.4
|
|
|
|
(1)
|
Denotes non-GAAP
financial measure. Refer to related disclosure and reconciliation
on pages 21 - 24.
|
|
(2)
|
Annualized.
|
|
(3)
|
Current quarter
regulatory capital ratios are estimated.
|
|
Table
3
Selected Financial
Information
|
|
|
Quarter
Ended
|
|
Year-to-date
|
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
Common Share
Data:
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.61
|
$
0.40
|
$
0.52
|
$
0.66
|
$
0.68
|
|
$ 1.01
|
$ 1.28
|
|
Adjusted earnings per
share (1)
|
0.64
|
0.68
|
0.78
|
0.78
|
0.73
|
|
1.31
|
1.38
|
|
Cash dividends per
share
|
0.235
|
0.235
|
0.22
|
0.22
|
0.22
|
|
0.470
|
0.44
|
|
Book value per
share
|
23.65
|
23.67
|
22.72
|
21.92
|
23.41
|
|
23.65
|
23.41
|
|
Tangible book value per
share (1)
|
15.01
|
14.99
|
13.99
|
13.25
|
14.73
|
|
15.01
|
14.73
|
|
Market value per share
(last)
|
19.88
|
20.76
|
24.66
|
25.41
|
23.48
|
|
19.88
|
23.48
|
|
Market value per share
(high)
|
21.73
|
28.18
|
29.41
|
28.54
|
29.75
|
|
28.18
|
34.24
|
|
Market value per share
(low)
|
16.95
|
19.24
|
22.43
|
22.04
|
22.82
|
|
16.95
|
22.82
|
|
Market value per share
(avg)
|
19.73
|
24.88
|
26.84
|
25.68
|
25.74
|
|
22.32
|
28.47
|
|
Dividend payout
ratio
|
38.52 %
|
58.75 %
|
42.31 %
|
33.33 %
|
32.44 %
|
|
46.53 %
|
34.38 %
|
|
Adjusted dividend
payout ratio (1)
|
36.72 %
|
34.56 %
|
28.21 %
|
28.21 %
|
30.14 %
|
|
35.88 %
|
31.88 %
|
|
Total shares
outstanding
|
182,626,229
|
182,684,578
|
182,437,265
|
182,438,780
|
182,461,786
|
|
182,626,229
|
182,461,786
|
|
Average shares
outstanding - diluted
|
183,631,570
|
183,908,798
|
183,762,008
|
183,313,831
|
183,711,402
|
|
183,770,759
|
185,476,720
|
|
|
|
|
|
|
|
|
|
|
Yield/Rate:
|
|
|
|
|
|
|
|
|
|
(Taxable equivalent
basis)
|
|
|
|
|
|
|
|
|
|
Loans, loans held for
sale, and leases
|
6.24 %
|
6.00 %
|
5.54 %
|
4.82 %
|
4.29 %
|
|
6.13 %
|
4.25 %
|
|
Loans, loans held for
sale, and leases
excluding net accretion on acquired loans and
leases
|
6.18
|
5.87
|
5.41
|
4.70
|
4.12
|
|
6.03
|
4.04
|
|
Available-for-sale
securities:
|
|
|
|
|
|
|
|
|
|
Taxable
|
2.09
|
1.80
|
1.54
|
1.44
|
1.37
|
|
1.94
|
1.31
|
|
Tax-exempt
|
3.21
|
3.21
|
3.28
|
3.05
|
2.95
|
|
3.21
|
2.75
|
|
Other
investments
|
5.05
|
4.64
|
3.69
|
2.32
|
1.03
|
|
4.85
|
0.55
|
|
Total interest earning
assets and revenue
|
5.21
|
4.88
|
4.38
|
3.74
|
3.29
|
|
5.05
|
3.20
|
|
Deposits
|
1.87
|
1.28
|
0.76
|
0.35
|
0.17
|
|
1.57
|
0.16
|
|
Interest bearing demand
and money market
|
2.49
|
2.03
|
1.34
|
0.60
|
0.26
|
|
2.26
|
0.23
|
|
Savings
|
0.51
|
0.36
|
0.31
|
0.17
|
0.06
|
|
0.43
|
0.06
|
|
Time
|
3.69
|
2.24
|
1.17
|
0.56
|
0.47
|
|
3.15
|
0.49
|
|
Total interest bearing
deposits
|
2.58
|
1.86
|
1.17
|
0.53
|
0.26
|
|
2.23
|
0.24
|
|
Fed funds purchased,
securities sold under
agreement to repurchase and other
|
3.97
|
3.73
|
3.04
|
1.65
|
0.43
|
|
3.85
|
0.27
|
|
Short-term FHLB
borrowings
|
5.24
|
4.66
|
3.84
|
2.05
|
0.98
|
|
4.91
|
0.97
|
|
Short-term BTFP
borrowings
|
5.15
|
—
|
—
|
—
|
—
|
|
5.15
|
—
|
|
Total interest bearing
deposits and short-term
borrowings
|
2.90
|
2.20
|
1.50
|
0.64
|
0.29
|
|
2.56
|
0.26
|
|
Long-term
debt
|
4.23
|
4.27
|
4.15
|
4.16
|
4.14
|
|
4.25
|
4.16
|
|
Total interest bearing
liabilities
|
2.92
|
2.23
|
1.54
|
0.70
|
0.36
|
|
2.59
|
0.32
|
|
Interest bearing
liabilities to interest earning
assets
|
74.57 %
|
71.24 %
|
68.42 %
|
66.19 %
|
65.25 %
|
|
72.92 %
|
64.86 %
|
|
Net interest income tax
equivalent adjustment
(in thousands)
|
$
1,063
|
$
1,051
|
$
1,071
|
$
1,052
|
$
1,063
|
|
$ 2,114
|
$ 2,090
|
|
|
|
(1)
|
Denotes non-GAAP
financial measure. Refer to related disclosure and reconciliation
on pages 21 - 24.
|
|
Table
4
Consolidated Balance
Sheets
(Unaudited)
|
|
|
As of
|
|
(In
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
$
722,625
|
$
660,431
|
$
756,906
|
$
693,999
|
$
770,293
|
|
Interest bearing
deposits with other banks and Federal
funds sold
|
1,008,048
|
4,452,029
|
1,241,246
|
895,630
|
1,069,410
|
|
Available-for-sale
securities, at fair value
|
10,254,580
|
10,877,879
|
11,944,096
|
12,441,894
|
13,450,621
|
|
Loans and leases, net
of unearned income
|
32,556,708
|
31,282,594
|
30,349,277
|
29,296,450
|
28,360,485
|
|
Allowance for credit
losses
|
466,013
|
453,727
|
440,347
|
433,363
|
440,112
|
|
Net loans and
leases
|
32,090,695
|
30,828,867
|
29,908,930
|
28,863,087
|
27,920,373
|
|
Loans held for sale, at
fair value
|
193,234
|
196,110
|
187,925
|
198,381
|
213,458
|
|
Premises and equipment,
net
|
830,184
|
826,439
|
817,430
|
802,382
|
782,728
|
|
Goodwill
|
1,459,302
|
1,459,302
|
1,458,795
|
1,449,511
|
1,444,209
|
|
Other intangible
assets, net
|
119,098
|
125,724
|
132,764
|
132,953
|
138,370
|
|
Bank-owned life
insurance
|
634,985
|
631,174
|
630,046
|
624,696
|
601,601
|
|
Other assets
|
1,525,909
|
1,635,141
|
1,575,276
|
1,597,127
|
1,356,645
|
|
Total
Assets
|
$
48,838,660
|
$
51,693,096
|
$
48,653,414
|
$
47,699,660
|
$
47,747,708
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Demand: Noninterest
bearing
|
$
10,223,508
|
$
11,517,037
|
$
12,731,065
|
$
13,839,649
|
$
14,012,529
|
|
Interest
bearing
|
18,088,711
|
18,146,678
|
19,040,131
|
18,033,648
|
19,032,983
|
|
Savings
|
2,983,709
|
3,226,685
|
3,473,746
|
3,676,340
|
3,735,925
|
|
Time
deposits
|
7,405,741
|
6,516,054
|
3,711,672
|
3,454,309
|
3,407,646
|
|
Total
deposits
|
38,701,669
|
39,406,454
|
38,956,614
|
39,003,946
|
40,189,083
|
|
Securities sold under
agreement to repurchase
|
790,758
|
771,335
|
708,736
|
678,334
|
649,177
|
|
Other short-term
borrowings
|
3,500,226
|
5,700,228
|
3,300,231
|
2,495,000
|
1,200,000
|
|
Subordinated and
long-term debt
|
449,733
|
462,144
|
462,554
|
463,291
|
465,073
|
|
Other
liabilities
|
910,424
|
862,518
|
913,905
|
892,164
|
806,450
|
|
Total
Liabilities
|
44,352,810
|
47,202,679
|
44,342,040
|
43,532,735
|
43,309,783
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
|
Common stock
|
456,566
|
456,711
|
456,093
|
456,097
|
456,154
|
|
Capital
surplus
|
2,724,021
|
2,715,981
|
2,709,391
|
2,695,646
|
2,686,031
|
|
Accumulated other
comprehensive loss
|
(1,163,075)
|
(1,081,886)
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
|
Retained
earnings
|
2,301,345
|
2,232,618
|
2,201,435
|
2,146,001
|
2,065,092
|
|
Total Shareholders'
Equity
|
4,485,850
|
4,490,417
|
4,311,374
|
4,166,925
|
4,437,925
|
|
Total Liabilities
& Shareholders' Equity
|
$
48,838,660
|
$
51,693,096
|
$
48,653,414
|
$
47,699,660
|
$
47,747,708
|
|
Table
5
Consolidated
Quarterly Average Balance Sheets
(Unaudited)
|
|
|
(In
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
$
610,948
|
$
695,263
|
$
617,634
|
$
654,589
|
$
640,672
|
|
Interest bearing
deposits with other banks and Federal
funds sold
|
1,607,830
|
1,526,755
|
943,806
|
851,185
|
751,972
|
|
Available-for-sale
securities, at fair value
|
10,655,791
|
11,354,457
|
12,156,803
|
13,252,828
|
13,941,127
|
|
Loans and leases, net
of unearned income
|
31,901,096
|
30,891,640
|
29,812,924
|
28,872,156
|
27,848,097
|
|
Allowance for credit
losses
|
457,027
|
442,486
|
434,785
|
441,042
|
438,752
|
|
Net loans and
leases
|
31,444,069
|
30,449,154
|
29,378,139
|
28,431,114
|
27,409,345
|
|
Loans held for sale, at
fair value
|
67,038
|
46,863
|
62,517
|
103,312
|
147,301
|
|
Premises and equipment,
net
|
829,938
|
824,190
|
802,771
|
809,799
|
784,247
|
|
Goodwill
|
1,459,302
|
1,459,127
|
1,457,120
|
1,444,331
|
1,407,452
|
|
Other intangible
assets, net
|
123,313
|
128,957
|
132,091
|
136,149
|
188,897
|
|
Bank-owned life
insurance
|
632,489
|
630,601
|
625,938
|
613,973
|
599,912
|
|
Other assets
|
1,636,403
|
1,536,834
|
1,613,675
|
1,298,277
|
1,193,904
|
|
Total
Assets
|
$
49,067,121
|
$
48,652,201
|
$
47,790,494
|
$
47,595,557
|
$
47,064,829
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Demand: Noninterest
bearing
|
$
10,725,108
|
$
12,203,079
|
$
13,344,152
|
$
13,816,796
|
$
13,970,163
|
|
Interest
bearing
|
17,997,618
|
19,009,345
|
17,866,198
|
18,675,214
|
18,238,571
|
|
Savings
|
3,088,174
|
3,363,236
|
3,555,911
|
3,720,218
|
3,723,193
|
|
Time
deposits
|
7,123,893
|
4,328,388
|
3,606,093
|
3,388,658
|
3,464,101
|
|
Total
deposits
|
38,934,793
|
38,904,048
|
38,372,354
|
39,600,886
|
39,396,028
|
|
Securities sold under
agreement to repurchase
|
774,170
|
727,975
|
660,974
|
655,223
|
666,067
|
|
Other short-term
borrowings
|
3,541,985
|
3,326,196
|
3,251,947
|
1,608,587
|
1,294,946
|
|
Subordinated and
long-term debt
|
455,617
|
462,385
|
462,927
|
464,843
|
465,447
|
|
Other
liabilities
|
821,203
|
835,136
|
826,707
|
759,363
|
719,152
|
|
Total
Liabilities
|
44,527,768
|
44,255,740
|
43,574,909
|
43,088,902
|
42,541,640
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
|
Common stock
|
456,755
|
456,354
|
456,095
|
456,130
|
457,713
|
|
Capital
surplus
|
2,717,866
|
2,710,501
|
2,701,121
|
2,689,340
|
2,694,546
|
|
Accumulated other
comprehensive loss
|
(1,087,389)
|
(1,174,723)
|
(1,302,388)
|
(922,673)
|
(821,034)
|
|
Retained
earnings
|
2,285,128
|
2,237,336
|
2,193,764
|
2,116,865
|
2,024,971
|
|
Total Shareholders'
Equity
|
4,539,353
|
4,396,461
|
4,215,585
|
4,506,655
|
4,523,189
|
|
Total Liabilities &
Shareholders' Equity
|
$
49,067,121
|
$
48,652,201
|
$
47,790,494
|
$
47,595,557
|
$
47,064,829
|
|
Table
6
Consolidated
Statements of Income
(Unaudited)
|
|
|
Quarter
Ended
|
|
Year-to-date
|
|
(Dollars in thousands,
except per share data)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
INTEREST
REVENUE:
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$ 496,262
|
$ 457,084
|
$ 414,623
|
$ 349,093
|
$ 296,680
|
|
$ 953,346
|
$ 578,946
|
|
Available-for-sale
securities:
|
|
|
|
|
|
|
|
|
|
Taxable
|
53,531
|
48,515
|
45,807
|
46,701
|
46,254
|
|
102,046
|
91,409
|
|
Tax-exempt
|
2,427
|
2,477
|
2,547
|
2,548
|
2,571
|
|
4,904
|
4,985
|
|
Loans held for
sale
|
961
|
603
|
1,788
|
2,241
|
2,118
|
|
1,564
|
3,525
|
|
Short-term
investments
|
20,238
|
17,453
|
8,783
|
4,976
|
1,932
|
|
37,691
|
2,620
|
|
Total interest
revenue
|
573,419
|
526,132
|
473,548
|
405,559
|
349,555
|
|
1,099,551
|
681,485
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
Interest bearing demand
deposits and money market accounts
|
111,938
|
95,344
|
60,253
|
28,175
|
11,717
|
|
207,282
|
21,459
|
|
Savings
|
3,915
|
3,014
|
2,769
|
1,597
|
590
|
|
6,929
|
1,158
|
|
Time
deposits
|
65,517
|
23,950
|
10,651
|
4,797
|
4,041
|
|
89,467
|
8,805
|
|
Federal funds purchased
and securities sold under agreement to
repurchase
|
7,656
|
7,667
|
8,365
|
3,944
|
906
|
|
15,323
|
1,122
|
|
Short-term
debt
|
46,036
|
37,015
|
27,302
|
6,821
|
2,734
|
|
83,051
|
2,741
|
|
Subordinated and
long-term debt
|
4,806
|
4,872
|
4,848
|
4,871
|
4,801
|
|
9,678
|
9,612
|
|
Total interest
expense
|
239,868
|
171,862
|
114,188
|
50,205
|
24,789
|
|
411,730
|
44,897
|
|
Net interest
revenue
|
333,551
|
354,270
|
359,360
|
355,354
|
324,766
|
|
687,821
|
636,588
|
|
Provision for credit
losses
|
15,000
|
10,000
|
6,000
|
—
|
1,000
|
|
25,000
|
1,000
|
|
Net interest revenue,
after provision for credit losses
|
318,551
|
344,270
|
353,360
|
355,354
|
323,766
|
|
662,821
|
635,588
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
REVENUE:
|
|
|
|
|
|
|
|
|
|
Mortgage
banking
|
8,356
|
6,076
|
2,571
|
9,080
|
11,446
|
|
14,432
|
33,209
|
|
Credit card, debit card
and merchant fees
|
12,617
|
11,851
|
15,750
|
14,497
|
16,593
|
|
24,469
|
27,914
|
|
Deposit service
charges
|
17,208
|
16,482
|
16,863
|
19,134
|
18,291
|
|
33,690
|
37,480
|
|
Security gains
(losses), net
|
69
|
(51,261)
|
(595)
|
(139)
|
1,446
|
|
(51,192)
|
349
|
|
Insurance
commissions
|
45,603
|
39,606
|
34,679
|
39,876
|
39,994
|
|
85,210
|
75,721
|
|
Wealth
management
|
21,741
|
21,532
|
19,199
|
19,335
|
20,213
|
|
43,272
|
41,950
|
|
Other noninterest
income
|
26,696
|
29,785
|
26,406
|
22,708
|
17,251
|
|
56,480
|
37,046
|
|
Total noninterest
revenue
|
132,290
|
74,071
|
114,873
|
124,491
|
125,234
|
|
206,361
|
253,669
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
190,854
|
195,702
|
183,918
|
191,193
|
182,094
|
|
386,557
|
369,913
|
|
Occupancy and
equipment
|
29,590
|
29,113
|
30,539
|
30,610
|
30,129
|
|
58,703
|
58,399
|
|
Data processing and
software
|
28,073
|
31,869
|
29,289
|
28,079
|
29,081
|
|
59,942
|
56,564
|
|
Merger
expense
|
137
|
5,075
|
20,276
|
19,690
|
7,274
|
|
5,212
|
11,248
|
|
Amortization of
intangibles
|
6,626
|
5,005
|
5,251
|
5,417
|
3,042
|
|
11,631
|
9,822
|
|
Deposit insurance
assessments
|
7,705
|
8,361
|
5,931
|
4,499
|
4,945
|
|
16,066
|
8,281
|
|
Pension settlement
expense
|
—
|
—
|
6,127
|
2,896
|
—
|
|
—
|
—
|
|
Other noninterest
expense
|
40,893
|
44,154
|
59,340
|
37,350
|
29,323
|
|
85,046
|
63,328
|
|
Total noninterest
expense
|
303,878
|
319,279
|
340,671
|
319,734
|
285,888
|
|
623,157
|
577,555
|
|
Income before income
taxes
|
146,963
|
99,062
|
127,562
|
160,111
|
163,112
|
|
246,025
|
311,702
|
|
Income tax
expense
|
32,935
|
22,433
|
29,628
|
36,713
|
36,154
|
|
55,368
|
69,797
|
|
Net income
|
114,028
|
76,629
|
97,934
|
123,398
|
126,958
|
|
190,657
|
241,905
|
|
Less: Preferred
dividends
|
2,372
|
2,372
|
2,372
|
2,372
|
2,372
|
|
4,744
|
4,744
|
|
Net income available to
common shareholders
|
$ 111,656
|
$
74,257
|
$
95,562
|
$ 121,026
|
$ 124,586
|
|
$ 185,913
|
$ 237,161
|
|
Net income per common
share: Diluted
|
$
0.61
|
$
0.40
|
$
0.52
|
$
0.66
|
$
0.68
|
|
$
1.01
|
$
1.28
|
|
Table
7
Selected Loan
Portfolio Data
(Unaudited)
|
|
|
Quarter
Ended
|
|
(In
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
Non-real
estate
|
$ 9,636,481
|
$ 9,159,387
|
$ 8,985,547
|
$ 8,803,381
|
$ 8,526,481
|
|
Owner
occupied
|
4,358,000
|
4,278,468
|
4,068,659
|
3,943,442
|
3,851,336
|
|
Total commercial and
industrial
|
13,994,481
|
13,437,855
|
13,054,206
|
12,746,823
|
12,377,817
|
|
Commercial real
estate
|
|
|
|
|
|
|
Construction,
acquisition and development
|
3,744,114
|
3,703,137
|
3,547,986
|
3,244,425
|
2,982,119
|
|
Income
producing
|
5,596,134
|
5,368,676
|
5,150,680
|
5,098,470
|
5,054,232
|
|
Total commercial real
estate
|
9,340,248
|
9,071,813
|
8,698,666
|
8,342,895
|
8,036,351
|
|
Consumer
|
|
|
|
|
|
|
Residential
mortgages
|
8,989,614
|
8,536,032
|
8,319,242
|
7,924,378
|
7,662,621
|
|
Other
consumer
|
232,365
|
236,894
|
277,163
|
282,354
|
283,696
|
|
Total
consumer
|
9,221,979
|
8,772,926
|
8,596,405
|
8,206,732
|
7,946,317
|
|
Total loans and
leases, net of unearned income
|
$
32,556,708
|
$
31,282,594
|
$
30,349,277
|
$
29,296,450
|
$
28,360,485
|
|
|
|
|
|
|
|
NON-PERFORMING
ASSETS
|
|
|
|
|
|
|
Non-performing Loans
and Leases
|
|
|
|
|
|
|
Nonaccrual Loans and
Leases
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
Non-real
estate
|
$
72,592
|
$
65,783
|
$
23,907
|
$
23,916
|
$
34,233
|
|
Owner
occupied
|
7,541
|
9,089
|
7,944
|
8,327
|
9,567
|
|
Total commercial and
industrial
|
80,133
|
74,872
|
31,851
|
32,243
|
43,800
|
|
Commercial real
estate
|
|
|
|
|
|
|
Construction,
acquisition and development
|
4,496
|
1,850
|
2,974
|
1,823
|
2,125
|
|
Income
producing
|
19,205
|
20,616
|
7,331
|
8,580
|
8,750
|
|
Total commercial real
estate
|
23,701
|
22,466
|
10,305
|
10,403
|
10,875
|
|
Consumer
|
|
|
|
|
|
|
Residential
mortgages
|
53,171
|
62,748
|
55,892
|
46,671
|
34,172
|
|
Other
consumer
|
238
|
529
|
697
|
614
|
521
|
|
Total
consumer
|
53,409
|
63,277
|
56,589
|
47,285
|
34,693
|
|
Total nonaccrual loans
and leases
|
$
157,243
|
$
160,615
|
$
98,745
|
$
89,931
|
$
89,368
|
|
|
|
|
|
|
|
Loans and leases 90+
days past due, still accruing
|
4,412
|
5,164
|
2,068
|
11,984
|
19,682
|
|
Restructured loans and
leases, still accruing
|
—
|
—
|
8,598
|
16,200
|
7,385
|
|
Total non-performing
loans and leases
|
$
161,655
|
$
165,779
|
$
109,411
|
$
118,115
|
$
116,435
|
|
|
|
|
|
|
|
Other real estate owned
and repossessed assets
|
2,857
|
5,327
|
6,725
|
8,376
|
14,399
|
|
Total non-performing
assets
|
$
164,512
|
$
171,106
|
$
116,136
|
$
126,491
|
$
130,834
|
|
|
|
|
|
|
|
Additions to nonaccrual
loans and leases during the
quarter (excluding acquisitions)
|
$
57,764
|
$
89,779
|
$
38,945
|
$
34,432
|
$
21,312
|
|
Table
8
Allowance for Credit
Losses
(Unaudited)
|
|
|
Quarter
Ended
|
|
(Dollars in
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
ALLOWANCE FOR CREDIT
LOSSES:
|
|
|
|
|
|
|
Balance, beginning of
period
|
$ 453,727
|
$ 440,347
|
$ 433,363
|
$ 440,112
|
$ 438,738
|
|
Charge-offs:
|
|
|
|
|
|
|
Commercial and
industrial
|
(13,598)
|
(2,853)
|
(2,295)
|
(11,551)
|
(2,170)
|
|
Commercial real
estate
|
(126)
|
(1,988)
|
(426)
|
(1,116)
|
(275)
|
|
Consumer
|
(1,916)
|
(2,189)
|
(2,650)
|
(2,653)
|
(1,941)
|
|
Total loans
charged-off
|
(15,640)
|
(7,030)
|
(5,371)
|
(15,320)
|
(4,386)
|
|
Recoveries:
|
|
|
|
|
|
|
Commercial and
industrial
|
1,360
|
3,399
|
6,405
|
3,657
|
3,217
|
|
Commercial real
estate
|
618
|
779
|
2,851
|
3,509
|
1,076
|
|
Consumer
|
948
|
977
|
1,099
|
1,405
|
1,467
|
|
Total
recoveries
|
2,926
|
5,155
|
10,355
|
8,571
|
5,760
|
|
Net (charge-offs)
recoveries
|
(12,714)
|
(1,875)
|
4,984
|
(6,749)
|
1,374
|
|
Adoption of new ASU
related to modified loans (3)
|
—
|
255
|
—
|
—
|
—
|
|
Provision for credit
losses related to loans and leases
|
25,000
|
15,000
|
2,000
|
—
|
—
|
|
Total provision for
loans and leases
|
25,000
|
15,000
|
2,000
|
—
|
—
|
|
Balance, end of
period
|
$ 466,013
|
$ 453,727
|
$ 440,347
|
$ 433,363
|
$ 440,112
|
|
|
|
|
|
|
|
Average loans and
leases, net of unearned income,
for period
|
$ 31,901,096
|
$ 30,891,640
|
$ 29,812,924
|
$ 28,872,156
|
$ 27,848,097
|
|
Ratio: Net charge-offs
(recoveries) to average loans
and leases (2)
|
0.16 %
|
0.02 %
|
(0.07) %
|
0.09 %
|
(0.02) %
|
|
|
|
|
|
|
|
RESERVE FOR UNFUNDED
COMMITMENTS (1)
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
23,551
|
$
28,551
|
$
24,551
|
$
24,551
|
$
23,551
|
|
(Reversal) provision
for credit losses for unfunded
commitments
|
(10,000)
|
(5,000)
|
4,000
|
—
|
1,000
|
|
Balance, end of
period
|
$
13,551
|
$
23,551
|
$
28,551
|
$
24,551
|
$
24,551
|
|
|
|
(1)
|
The Reserve for
Unfunded Commitments is classified in other liabilities on the
consolidated balance sheets.
|
|
(2)
|
Annualized.
|
|
(3)
|
Cadence elected to
adopt the new accounting guidance effective January 1, 2023, which
eliminates the TDR recognition and measurement guidance via
the modified retrospective transition method (ASU 2022-02). As
such, there is no TDR reporting effective January 1,
2023.
|
|
Table
9
Loan Portfolio by
Grades
(Unaudited)
|
|
|
June 30,
2023
|
|
(In
thousands)
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Impaired
|
Purchased
Credit
Deteriorated
(Loss)
|
Total
|
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
|
|
Non-real
estate
|
$
9,126,727
|
$ 160,652
|
$ 311,119
|
$
—
|
$
34,027
|
$
3,956
|
$
9,636,481
|
|
Owner
occupied
|
4,276,518
|
29,991
|
48,068
|
—
|
1,762
|
1,661
|
4,358,000
|
|
Total commercial and
industrial
|
13,403,245
|
190,643
|
359,187
|
—
|
35,789
|
5,617
|
13,994,481
|
|
Commercial real
estate
|
|
|
|
|
|
|
|
|
Construction,
acquisition and development
|
3,711,414
|
20,339
|
12,158
|
203
|
—
|
—
|
3,744,114
|
|
Income
producing
|
5,390,435
|
63,323
|
113,021
|
—
|
10,760
|
18,595
|
5,596,134
|
|
Total commercial real
estate
|
9,101,849
|
83,662
|
125,179
|
203
|
10,760
|
18,595
|
9,340,248
|
|
Consumer
(1)
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
8,927,494
|
—
|
59,267
|
—
|
1,279
|
1,574
|
8,989,614
|
|
Other
consumer
|
231,978
|
—
|
387
|
—
|
—
|
—
|
232,365
|
|
Total
consumer
|
9,159,472
|
—
|
59,654
|
—
|
1,279
|
1,574
|
9,221,979
|
|
Total loans and leases,
net of unearned
income
|
$
31,664,566
|
$ 274,305
|
$ 544,020
|
$
203
|
$
47,828
|
$
25,786
|
$
32,556,708
|
|
|
|
(1)
|
During the second
quarter of 2023, the Company began determining the risk rating
classification of its Consumer portfolio based on nonaccrual
and delinquency status in accordance with the Uniform Retail Credit
Classification guidance and industry norms, which contributed to a
lower number of criticized and classified loans compared to
previous periods. As a result of the modification, current period
results are not directly comparable to prior periods.
|
|
March 31,
2023
|
|
(In
thousands)
|
Pass
|
Special
Mention
|
Substandard
|
Impaired
|
Purchased
Credit
Deteriorated
(Loss)
|
Total
|
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
|
Non-real
estate
|
$
8,744,629
|
$
107,218
|
$
280,192
|
$
23,316
|
$
4,032
|
$
9,159,387
|
|
Owner
occupied
|
4,201,364
|
11,928
|
59,764
|
3,739
|
1,673
|
4,278,468
|
|
Total commercial and
industrial
|
12,945,993
|
119,146
|
339,956
|
27,055
|
5,705
|
13,437,855
|
|
Commercial real
estate
|
|
|
|
|
|
|
|
Construction,
acquisition and development
|
3,656,934
|
27,041
|
19,162
|
—
|
—
|
3,703,137
|
|
Income
producing
|
5,191,260
|
36,598
|
116,784
|
5,476
|
18,558
|
5,368,676
|
|
Total commercial real
estate
|
8,848,194
|
63,639
|
135,946
|
5,476
|
18,558
|
9,071,813
|
|
Consumer
|
|
|
|
|
|
|
|
Residential
mortgages
|
8,361,116
|
—
|
173,342
|
—
|
1,574
|
8,536,032
|
|
Other
consumer
|
232,637
|
—
|
4,257
|
—
|
—
|
236,894
|
|
Total
consumer
|
8,593,753
|
—
|
177,599
|
—
|
1,574
|
8,772,926
|
|
Total loans and leases,
net of unearned income
|
$
30,387,940
|
$
182,785
|
$
653,501
|
$
32,531
|
$
25,837
|
$
31,282,594
|
|
Table
10
Geographical Loan
Information
(Unaudited)
|
|
|
June 30,
2023
|
|
(Dollars in
thousands)
|
Alabama
|
Arkansas
|
Florida
|
Georgia
|
Louisiana
|
Mississippi
|
Missouri
|
Tennessee
|
Texas
|
Other
|
Total
|
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-real
estate
|
$
377,605
|
$
153,433
|
$
535,035
|
$
553,110
|
$
324,964
|
$
508,159
|
$
80,894
|
$
348,478
|
$ 3,961,249
|
$
2,793,554
|
$
9,636,481
|
|
Owner
occupied
|
358,089
|
244,598
|
304,871
|
315,771
|
281,270
|
596,732
|
91,474
|
169,620
|
1,634,523
|
361,052
|
4,358,000
|
|
Total commercial and
industrial
|
735,694
|
398,031
|
839,906
|
868,881
|
606,234
|
1,104,891
|
172,368
|
518,098
|
5,595,772
|
3,154,606
|
13,994,481
|
|
Commercial real
estate
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction,
acquisition and development
|
200,551
|
81,766
|
261,666
|
404,301
|
48,211
|
199,099
|
44,273
|
146,479
|
1,874,670
|
483,098
|
3,744,114
|
|
Income
producing
|
454,443
|
279,541
|
371,717
|
595,999
|
211,076
|
436,653
|
190,959
|
335,009
|
1,995,521
|
725,216
|
5,596,134
|
|
Total commercial real
estate
|
654,994
|
361,307
|
633,383
|
1,000,300
|
259,287
|
635,752
|
235,232
|
481,488
|
3,870,191
|
1,208,314
|
9,340,248
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
1,180,606
|
382,172
|
622,179
|
398,080
|
457,968
|
1,127,557
|
168,403
|
715,992
|
3,677,451
|
259,206
|
8,989,614
|
|
Other
consumer
|
30,950
|
17,757
|
5,344
|
6,915
|
11,364
|
85,071
|
1,556
|
16,206
|
51,358
|
5,844
|
232,365
|
|
Total
consumer
|
1,211,556
|
399,929
|
627,523
|
404,995
|
469,332
|
1,212,628
|
169,959
|
732,198
|
3,728,809
|
265,050
|
9,221,979
|
|
Total loans and
leases, net of
unearned income
|
$
2,602,244
|
$
1,159,267
|
$
2,100,812
|
$
2,274,176
|
$
1,334,853
|
$
2,953,271
|
$
577,559
|
$
1,731,784
|
$
13,194,772
|
$
4,627,970
|
$
32,556,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan growth, excluding
loans acquired
during the quarter ($)
|
$
19,370
|
$
14,264
|
$
149,998
|
$ 8,562
|
$ 8,919
|
$
52,151
|
$
17,488
|
$
57,345
|
$
397,089
|
$
548,928
|
$
1,274,114
|
|
Loan growth, excluding
loans acquired
during the quarter (%) (annualized)
|
3.01 %
|
5.00 %
|
30.84 %
|
1.52 %
|
2.70 %
|
7.21 %
|
12.52 %
|
13.74 %
|
12.45 %
|
53.98 %
|
16.34 %
|
|
March 31,
2023
|
|
(Dollars in
thousands)
|
Alabama
|
Arkansas
|
Florida
|
Georgia
|
Louisiana
|
Mississippi
|
Missouri
|
Tennessee
|
Texas
|
Other
|
Total
|
|
LOAN AND LEASE
PORTFOLIO:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-real
estate
|
$ 370,464
|
$ 148,872
|
$ 471,198
|
$ 537,753
|
$ 329,353
|
$ 530,064
|
$
74,408
|
$ 331,891
|
$
3,958,744
|
$
2,406,640
|
$
9,159,387
|
|
Owner
occupied
|
384,004
|
247,806
|
291,558
|
319,831
|
284,527
|
578,141
|
92,030
|
173,729
|
1,597,745
|
309,097
|
4,278,468
|
|
Total commercial and
industrial
|
754,468
|
396,678
|
762,756
|
857,584
|
613,880
|
1,108,205
|
166,438
|
505,620
|
5,556,489
|
2,715,737
|
13,437,855
|
|
Commercial real
estate
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction,
acquisition and development
|
202,210
|
80,681
|
223,119
|
409,773
|
45,899
|
213,740
|
40,319
|
139,995
|
1,836,582
|
510,819
|
3,703,137
|
|
Income
producing
|
432,113
|
273,397
|
377,826
|
616,799
|
214,952
|
424,004
|
193,518
|
340,114
|
1,907,173
|
588,780
|
5,368,676
|
|
Total commercial real
estate
|
634,323
|
354,078
|
600,945
|
1,026,572
|
260,851
|
637,744
|
233,837
|
480,109
|
3,743,755
|
1,099,599
|
9,071,813
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgages
|
1,163,319
|
377,180
|
580,893
|
374,343
|
439,998
|
1,070,648
|
158,404
|
672,393
|
3,441,995
|
256,859
|
8,536,032
|
|
Other
consumer
|
30,764
|
17,067
|
6,220
|
7,115
|
11,205
|
84,523
|
1,392
|
16,317
|
55,444
|
6,847
|
236,894
|
|
Total
consumer
|
1,194,083
|
394,247
|
587,113
|
381,458
|
451,203
|
1,155,171
|
159,796
|
688,710
|
3,497,439
|
263,706
|
8,772,926
|
|
Total loans and
leases, net of
unearned income
|
$
2,582,874
|
$
1,145,003
|
$
1,950,814
|
$
2,265,614
|
$
1,325,934
|
$
2,901,120
|
$ 560,071
|
$
1,674,439
|
$ 12,797,683
|
$
4,079,042
|
$ 31,282,594
|
|
Table
11
Noninterest Revenue
and Expense
(Unaudited)
|
|
|
Quarter
Ended
|
|
Year-to-date
|
|
(In
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
NONINTEREST
REVENUE:
|
|
|
|
|
|
|
|
|
|
Mortgage banking excl.
MSR and MSR
hedge market value adjustment
|
$
6,774
|
$
8,379
|
$
5,408
|
$
4,746
|
$
6,754
|
|
$ 15,153
|
$ 14,487
|
|
MSR and MSR hedge
market value
adjustment
|
1,582
|
(2,303)
|
(2,837)
|
4,334
|
4,692
|
|
(721)
|
18,722
|
|
Credit card, debit card
and merchant fees
|
12,617
|
11,851
|
15,750
|
14,497
|
16,593
|
|
24,469
|
27,914
|
|
Deposit service
charges
|
17,208
|
16,482
|
16,863
|
19,134
|
18,291
|
|
33,690
|
37,480
|
|
Security gains
(losses), net
|
69
|
(51,261)
|
(595)
|
(139)
|
1,446
|
|
(51,192)
|
349
|
|
Insurance
commissions
|
45,603
|
39,606
|
34,679
|
39,876
|
39,994
|
|
85,210
|
75,721
|
|
Trust income
|
10,084
|
10,553
|
9,113
|
9,011
|
9,129
|
|
20,637
|
19,190
|
|
Annuity fees
|
1,702
|
2,192
|
951
|
600
|
753
|
|
3,893
|
1,357
|
|
Brokerage commissions
and fees
|
9,955
|
8,787
|
9,135
|
9,724
|
10,331
|
|
18,742
|
21,403
|
|
Bank-owned life
insurance
|
3,811
|
3,647
|
5,436
|
3,537
|
3,285
|
|
7,458
|
6,621
|
|
Other miscellaneous
income
|
22,885
|
26,138
|
20,970
|
19,171
|
13,966
|
|
49,022
|
30,425
|
|
Total noninterest
revenue
|
$
132,290
|
$ 74,071
|
$
114,873
|
$
124,491
|
$
125,234
|
|
$
206,361
|
$
253,669
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
$
190,854
|
$
195,702
|
$
183,918
|
$
191,193
|
$
182,094
|
|
$
386,557
|
$
369,913
|
|
Occupancy and
equipment
|
29,590
|
29,113
|
30,539
|
30,610
|
30,129
|
|
58,703
|
58,399
|
|
Deposit insurance
assessments
|
7,705
|
8,361
|
5,931
|
4,499
|
4,945
|
|
16,066
|
8,281
|
|
Pension settlement
expense
|
—
|
—
|
6,127
|
2,896
|
—
|
|
—
|
—
|
|
Advertising and public
relations
|
5,708
|
4,331
|
28,659
|
4,085
|
4,417
|
|
10,039
|
9,010
|
|
Foreclosed property
expense (income)
|
323
|
980
|
400
|
1,093
|
(1,104)
|
|
1,303
|
(664)
|
|
Telecommunications
|
1,541
|
1,717
|
1,714
|
1,882
|
1,984
|
|
3,258
|
3,817
|
|
Travel and
entertainment
|
3,898
|
3,508
|
5,310
|
4,149
|
3,412
|
|
7,406
|
6,223
|
|
Data processing and
software
|
28,073
|
31,869
|
29,289
|
28,079
|
29,081
|
|
59,942
|
56,564
|
|
Professional,
consulting and outsourcing
|
5,519
|
4,417
|
3,598
|
2,724
|
3,769
|
|
9,936
|
7,507
|
|
Amortization of
intangibles
|
6,626
|
5,005
|
5,251
|
5,417
|
3,042
|
|
11,631
|
9,822
|
|
Legal
|
1,908
|
1,491
|
758
|
2,054
|
1,463
|
|
3,399
|
3,256
|
|
Merger
expense
|
137
|
5,075
|
20,276
|
19,690
|
7,274
|
|
5,212
|
11,248
|
|
Postage and
shipping
|
2,070
|
2,452
|
1,925
|
2,098
|
2,022
|
|
4,522
|
4,056
|
|
Other miscellaneous
expense
|
19,926
|
25,258
|
16,976
|
19,265
|
13,360
|
|
45,183
|
30,123
|
|
Total noninterest
expense
|
$
303,878
|
$
319,279
|
$
340,671
|
$
319,734
|
$
285,888
|
|
$
623,157
|
$
577,555
|
|
|
|
|
|
|
|
|
|
|
INSURANCE
COMMISSIONS:
|
|
|
|
|
|
|
|
|
|
Property and casualty
commissions
|
$ 34,273
|
$ 28,202
|
$ 24,682
|
$ 30,021
|
$ 29,220
|
|
$ 62,475
|
$ 55,072
|
|
Life and health
commissions
|
7,847
|
8,024
|
7,151
|
7,254
|
7,935
|
|
15,872
|
15,078
|
|
Risk management
income
|
703
|
657
|
887
|
654
|
674
|
|
1,360
|
1,431
|
|
Other
|
2,780
|
2,723
|
1,959
|
1,947
|
2,165
|
|
5,503
|
4,140
|
|
Total insurance
commissions
|
$ 45,603
|
$ 39,606
|
$ 34,679
|
$ 39,876
|
$ 39,994
|
|
$ 85,210
|
$ 75,721
|
|
Table
12
Average Balance and
Yields
(Unaudited)
|
|
|
Quarter
Ended
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
(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
|
$ 31,901,096
|
$
491,473
|
6.17 %
|
|
$
30,891,640
|
$
447,449
|
5.87 %
|
|
$ 27,848,097
|
$
285,345
|
4.11 %
|
|
Accretion income on
acquired
loans
|
|
5,207
|
0.07
|
|
|
10,028
|
0.13
|
|
|
11,714
|
0.17
|
|
Loans held for
sale
|
67,038
|
961
|
5.75
|
|
46,863
|
603
|
5.22
|
|
147,301
|
2,118
|
5.77
|
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
10,272,425
|
53,531
|
2.09
|
|
10,957,786
|
48,515
|
1.80
|
|
13,499,222
|
46,254
|
1.37
|
|
Tax-exempt
|
383,366
|
3,072
|
3.21
|
|
396,671
|
3,135
|
3.21
|
|
441,905
|
3,255
|
2.95
|
|
Total investment
securities
|
10,655,791
|
56,603
|
2.13
|
|
11,354,457
|
51,650
|
1.84
|
|
13,941,127
|
49,509
|
1.42
|
|
Other
investments
|
1,607,830
|
20,238
|
5.05
|
|
1,526,755
|
17,453
|
4.64
|
|
751,972
|
1,932
|
1.03
|
|
Total interest-earning
assets
|
44,231,755
|
574,482
|
5.21 %
|
|
43,819,715
|
527,183
|
4.88 %
|
|
42,688,497
|
350,618
|
3.29 %
|
|
Other assets
|
5,292,393
|
|
|
|
5,274,972
|
|
|
|
4,815,084
|
|
|
|
Allowance for credit
losses
|
457,027
|
|
|
|
442,486
|
|
|
|
438,752
|
|
|
|
Total
assets
|
$ 49,067,121
|
|
|
|
$
48,652,201
|
|
|
|
$ 47,064,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand
and
money market
|
$ 17,997,618
|
$
111,938
|
2.49 %
|
|
$
19,009,345
|
$ 95,344
|
2.03 %
|
|
$ 18,238,571
|
11,717
|
0.26 %
|
|
Savings
deposits
|
3,088,174
|
3,915
|
0.51
|
|
3,363,236
|
3,014
|
0.36
|
|
3,723,193
|
590
|
0.06
|
|
Time
deposits
|
7,123,893
|
65,517
|
3.69
|
|
4,328,388
|
23,950
|
2.24
|
|
3,464,101
|
4,041
|
0.47
|
|
Total
interest-bearing
deposits
|
28,209,685
|
181,370
|
2.58
|
|
26,700,969
|
122,308
|
1.86
|
|
25,425,865
|
16,348
|
0.26
|
|
Fed funds purchased,
securities
sold under agreement to
repurchase and other
|
$ 774,170
|
$
7,658
|
3.97
|
|
$
832,831
|
$
7,669
|
3.73
|
|
$ 843,705
|
907
|
0.43
|
|
Short-term FHLB
borrowings
|
2,388,139
|
31,219
|
5.24
|
|
3,221,340
|
37,013
|
4.66
|
|
1,117,308
|
2,733
|
0.98
|
|
Short-term BTFP
borrowings
|
1,153,846
|
14,815
|
5.15
|
|
—
|
—
|
—
|
|
—
|
—
|
—
|
|
Long-term
borrowings
|
455,617
|
4,806
|
4.23
|
|
462,385
|
4,872
|
4.27
|
|
465,447
|
4,801
|
4.14
|
|
Total
interest-bearing
liabilities
|
32,981,457
|
239,868
|
2.92 %
|
|
31,217,525
|
171,862
|
2.23 %
|
|
27,852,325
|
24,789
|
0.36 %
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
10,725,108
|
|
|
|
12,203,079
|
|
|
|
13,970,163
|
|
|
|
Other
liabilities
|
821,203
|
|
|
|
835,136
|
|
|
|
719,152
|
|
|
|
Total
liabilities
|
44,527,768
|
|
|
|
44,255,740
|
|
|
|
42,541,640
|
|
|
|
Shareholders'
equity
|
4,539,353
|
|
|
|
4,396,461
|
|
|
|
4,523,189
|
|
|
|
Total liabilities
and
shareholders' equity
|
$ 49,067,121
|
|
|
|
$
48,652,201
|
|
|
|
$ 47,064,829
|
|
|
|
Net interest income/net
interest
spread
|
|
334,614
|
2.29 %
|
|
|
355,321
|
2.65 %
|
|
|
325,829
|
2.94 %
|
|
Net yield on earning
assets/net
interest margin
|
|
|
3.03 %
|
|
|
|
3.29 %
|
|
|
|
3.06 %
|
|
Taxable equivalent
adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and investment
securities
|
|
(1,063)
|
|
|
|
(1,051)
|
|
|
|
(1,063)
|
|
|
Net interest
revenue
|
|
$
333,551
|
|
|
|
$
354,270
|
|
|
|
$
324,766
|
|
|
Table
12
Average Balance and
Yields Cont.
|
|
|
For the Six Months
Ended
|
|
June 30,
2023
|
|
June 30,
2022
|
|
(Dollars in
thousands)
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Loans and leases,
excluding accretion
|
$
31,399,156
|
$ 938,922
|
6.03 %
|
|
$
27,479,463
|
$ 550,254
|
4.04 %
|
|
Accretion income on
acquired loans
|
|
15,235
|
0.10
|
|
|
29,455
|
0.22
|
|
Loans held for
sale
|
57,007
|
1,564
|
5.53 %
|
|
161,893
|
3,525
|
4.39 %
|
|
Investment
securities
|
|
|
|
|
|
|
|
|
Taxable
|
10,613,212
|
102,046
|
1.94 %
|
|
14,040,648
|
91,409
|
1.31 %
|
|
Tax-exempt
|
389,982
|
6,207
|
3.21
|
|
462,057
|
6,312
|
2.75
|
|
Total investment
securities
|
11,003,194
|
108,253
|
1.98
|
|
14,502,705
|
97,721
|
1.36
|
|
Other
investments
|
1,567,517
|
37,691
|
4.85
|
|
955,487
|
2,620
|
0.55
|
|
Total interest-earning
assets
|
44,026,874
|
1,101,665
|
5.05 %
|
|
43,099,548
|
683,575
|
3.20
|
|
Other assets
|
5,283,730
|
|
|
|
4,712,599
|
|
|
|
Allowance for credit
losses
|
449,797
|
|
|
|
441,508
|
|
|
|
Total
assets
|
$
48,860,807
|
|
|
|
$
47,370,639
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
Interest bearing demand
and money market
|
$
18,500,687
|
207,282
|
2.26 %
|
|
$
18,816,584
|
$
21,459
|
0.23 %
|
|
Savings
deposits
|
3,224,945
|
6,929
|
0.43
|
|
3,677,698
|
1,158
|
0.06
|
|
Time
deposits
|
5,733,863
|
89,467
|
3.15
|
|
3,594,225
|
8,805
|
0.49
|
|
Total interest-bearing
deposits
|
27,459,495
|
303,678
|
2.23
|
|
26,088,507
|
31,422
|
0.24
|
|
Fed funds
purchased, securities sold under
agreement to repurchase and other
|
803,338
|
15,327
|
3.85 %
|
|
828,970
|
1,125
|
0.27 %
|
|
Short-term FHLB
borrowings
|
2,802,438
|
68,232
|
4.91
|
|
568,785
|
2,738
|
0.97
|
|
Short-term BTFP
borrowings
|
580,111
|
14,815
|
5.15 %
|
|
—
|
—
|
—
|
|
Long-term
borrowings
|
458,982
|
9,678
|
4.25
|
|
466,141
|
9,612
|
4.16
|
|
Total interest-bearing
liabilities
|
32,104,364
|
411,730
|
2.59 %
|
|
27,952,403
|
44,897
|
0.32 %
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
Demand
deposits
|
11,460,010
|
|
|
|
13,888,828
|
|
|
|
Other
liabilities
|
828,131
|
|
|
|
738,187
|
|
|
|
Total
liabilities
|
44,392,505
|
|
|
|
42,579,418
|
|
|
|
Shareholders'
equity
|
4,468,302
|
|
|
|
4,791,221
|
|
|
|
Total liabilities and
shareholders' equity
|
$
48,860,807
|
|
|
|
$
47,370,639
|
|
|
|
Net interest income/net
interest spread
|
|
689,935
|
2.46 %
|
|
|
638,678
|
2.87 %
|
|
Net yield on earning
assets/net interest margin
|
|
|
3.16 %
|
|
|
|
2.99 %
|
|
Taxable equivalent
adjustment:
|
|
|
|
|
|
|
|
|
Loans and investment
securities
|
|
(2,114)
|
|
|
|
(2,090)
|
|
|
Net interest
revenue
|
|
$ 687,821
|
|
|
|
$ 636,588
|
|
|
Table
13
Selected Additional
Data
(Unaudited)
|
|
|
Quarter
Ended
|
|
(Dollars in
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
MORTGAGE SERVICING
RIGHTS ("MSR"):
|
|
|
|
|
|
|
Fair value, beginning
of period
|
$ 106,942
|
$ 109,744
|
$ 112,767
|
$ 102,021
|
$
92,859
|
|
Originations of
servicing assets
|
1,990
|
1,385
|
2,283
|
3,890
|
4,962
|
|
Changes in fair
value:
|
|
|
|
|
|
|
Due to
payoffs/paydowns
|
(2,621)
|
(1,078)
|
(2,308)
|
(3,085)
|
(3,253)
|
|
Due to update in
valuation assumptions
|
5,106
|
(3,109)
|
(2,998)
|
9,941
|
7,453
|
|
Fair value, end of
period
|
$ 111,417
|
$ 106,942
|
$ 109,744
|
$ 112,767
|
$ 102,021
|
|
|
|
|
|
|
|
MORTGAGE BANKING
REVENUE:
|
|
|
|
|
|
|
Origination
|
$
3,495
|
$
3,344
|
$
1,793
|
$
1,916
|
$
4,042
|
|
Servicing
|
5,900
|
6,113
|
5,923
|
5,915
|
5,965
|
|
Payoffs/Paydowns
|
(2,621)
|
(1,078)
|
(2,308)
|
(3,085)
|
(3,253)
|
|
Total mortgage banking
revenue excluding MSR
|
6,774
|
8,379
|
5,408
|
4,746
|
6,754
|
|
Market value adjustment
on MSR
|
5,106
|
(3,109)
|
(2,998)
|
9,941
|
7,453
|
|
Market value adjustment
on MSR Hedge
|
(3,524)
|
806
|
161
|
(5,607)
|
(2,761)
|
|
Total mortgage banking
revenue
|
$
8,356
|
$
6,076
|
$
2,571
|
$
9,080
|
$
11,446
|
|
|
|
|
|
|
|
Mortgage loans
serviced
|
$
7,550,676
|
$
7,633,236
|
$
7,692,744
|
$
7,723,605
|
$
7,685,994
|
|
MSR/mortgage loans
serviced
|
1.48 %
|
1.40 %
|
1.43 %
|
1.46 %
|
1.33 %
|
|
Quarter
Ended
|
|
(In
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
AVAILABLE-FOR-SALE
SECURITIES, at fair value
|
|
|
|
|
|
|
U.S. Treasury
securities
|
$
8,959
|
$
15,849
|
$ 1,458,513
|
$ 1,451,461
|
$ 1,466,313
|
|
Obligations of U.S.
government agencies
|
1,112,326
|
1,358,350
|
1,477,127
|
1,820,913
|
2,133,561
|
|
Mortgage-backed
securities issued or guaranteed by U.S.
agencies ("MBS"):
|
|
|
|
|
|
|
Residential
pass-through:
|
|
|
|
|
|
|
Guaranteed by
GNMA
|
79,261
|
83,649
|
84,368
|
87,063
|
95,955
|
|
Issued by FNMA and
FHLMC
|
5,895,704
|
6,164,294
|
6,274,970
|
6,427,152
|
7,014,715
|
|
Other residential
mortgage-back securities
|
157,294
|
166,449
|
168,452
|
181,317
|
201,440
|
|
Commercial
mortgage-backed securities
|
2,357,047
|
2,427,808
|
1,881,853
|
1,880,949
|
1,899,785
|
|
Total MBS
|
8,489,306
|
8,842,200
|
8,409,643
|
8,576,481
|
9,211,895
|
|
Obligations of states
and political subdivisions
|
433,316
|
447,731
|
466,002
|
444,953
|
485,400
|
|
Other domestic debt
securities
|
71,356
|
73,557
|
82,718
|
98,615
|
101,313
|
|
Foreign debt
securities
|
139,317
|
140,192
|
50,093
|
49,471
|
52,139
|
|
Total
available-for-sale securities
|
$
10,254,580
|
$
10,877,879
|
$
11,944,096
|
$
12,441,894
|
$
13,450,621
|
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)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
Adjusted net income
available to common
shareholders
|
|
|
|
|
|
|
|
|
|
Net income
|
$
114,028
|
$
76,629
|
$
97,934
|
$ 123,398
|
$ 126,958
|
|
$ 190,657
|
$ 241,905
|
|
Plus: Merger
expense
|
137
|
5,075
|
20,276
|
19,690
|
7,274
|
|
5,212
|
11,248
|
|
Incremental merger
related expense
|
1,671
|
8,960
|
32,704
|
6,912
|
6,060
|
|
10,631
|
12,631
|
|
Gain on extinguishment
of debt
|
(1,140)
|
—
|
—
|
—
|
—
|
|
(1,140)
|
—
|
|
Branch closure and
other restructuring
charges
|
6,219
|
212
|
2,254
|
6
|
705
|
|
6,431
|
833
|
|
Pension settlement
expense
|
—
|
—
|
6,127
|
2,896
|
—
|
|
—
|
—
|
|
Less: Security gains
(losses), net
|
69
|
(51,261)
|
(595)
|
(139)
|
1,446
|
|
(51,192)
|
349
|
|
Tax
adjustment
|
1,602
|
15,394
|
14,665
|
7,016
|
2,981
|
|
16,997
|
5,767
|
|
Adjusted net
income
|
119,244
|
126,743
|
145,225
|
146,025
|
136,570
|
|
245,986
|
260,501
|
|
Less: Preferred
dividends
|
2,372
|
2,372
|
2,372
|
2,372
|
2,372
|
|
4,744
|
4,744
|
|
Adjusted net income
available to common
shareholders
|
$
116,872
|
$ 124,371
|
$ 142,853
|
$ 143,653
|
$ 134,198
|
|
$ 241,242
|
$ 255,757
|
|
Quarter
Ended
|
|
Year-to-date
|
|
(In
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
Pre-tax pre-provision
net revenue
|
|
|
|
|
|
|
|
|
|
Net income
|
$
114,028
|
$
76,629
|
$
97,934
|
$ 123,398
|
$ 126,958
|
|
$ 190,657
|
$ 241,905
|
|
Plus:
Provision for credit losses
|
15,000
|
10,000
|
6,000
|
—
|
1,000
|
|
25,000
|
1,000
|
|
Income tax
expense
|
32,935
|
22,433
|
29,628
|
36,713
|
36,154
|
|
55,368
|
69,797
|
|
Pre-tax pre-provision
net revenue
|
$
161,963
|
$ 109,062
|
$ 133,562
|
$ 160,111
|
$ 164,112
|
|
$ 271,025
|
$ 312,702
|
|
Quarter
Ended
|
|
Year-to-date
|
|
(In
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
Adjusted pre-tax
pre-provision net revenue
|
|
|
|
|
|
|
|
|
|
Net income
|
$
114,028
|
$
76,629
|
$
97,934
|
$ 123,398
|
$ 126,958
|
|
$ 190,657
|
$ 241,905
|
|
Plus:
Provision for credit losses
|
15,000
|
10,000
|
6,000
|
—
|
1,000
|
|
25,000
|
1,000
|
|
Merger
expense
|
137
|
5,075
|
20,276
|
19,690
|
7,274
|
|
5,212
|
11,248
|
|
Incremental merger
related expense
|
1,671
|
8,960
|
32,704
|
6,912
|
6,060
|
|
10,631
|
12,631
|
|
Gain on extinguishment
of debt
|
(1,140)
|
—
|
—
|
—
|
—
|
|
(1,140)
|
—
|
|
Branch closure and
other restructuring
charges
|
6,219
|
212
|
2,254
|
6
|
705
|
|
6,431
|
833
|
|
Pension settlement
expense
|
—
|
—
|
6,127
|
2,896
|
—
|
|
—
|
—
|
|
Income tax
expense
|
32,935
|
22,433
|
29,628
|
36,713
|
36,154
|
|
55,368
|
69,797
|
|
Less: Security gains
(losses), net
|
69
|
(51,261)
|
(595)
|
(139)
|
1,446
|
|
(51,192)
|
349
|
|
Adjusted pre-tax
pre-provision net revenue
|
$
168,781
|
$ 174,570
|
$ 195,518
|
$ 189,754
|
$ 176,705
|
|
$ 343,351
|
$ 337,065
|
|
Quarter
Ended
|
|
Year-to-date
|
|
(In
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
Total adjusted
noninterest expense
|
|
|
|
|
|
|
|
|
|
Total noninterest
expense
|
$
303,878
|
$ 319,279
|
$ 340,671
|
$ 319,734
|
$ 285,888
|
|
$ 623,157
|
$ 577,555
|
|
Less:
Merger expense
|
137
|
5,075
|
20,276
|
19,690
|
7,274
|
|
5,212
|
11,248
|
|
Incremental merger
related expense
|
1,671
|
8,960
|
32,704
|
6,912
|
6,060
|
|
10,631
|
12,631
|
|
Gain on extinguishment
of debt
|
(1,140)
|
—
|
—
|
—
|
—
|
|
(1,140)
|
—
|
|
Branch closure and
other restructuring
charges
|
6,219
|
212
|
2,254
|
6
|
705
|
|
6,431
|
833
|
|
Pension settlement
expense
|
—
|
—
|
6,127
|
2,896
|
—
|
|
—
|
—
|
|
Total adjusted
noninterest expense
|
$
296,991
|
$ 305,032
|
$ 279,310
|
$ 290,230
|
$ 271,849
|
|
$ 602,023
|
$ 552,843
|
|
Quarter
Ended
|
|
Year-to-date
|
|
(In
thousands)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
Total tangible assets,
excluding AOCI
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
48,838,660
|
$ 51,693,096
|
$ 48,653,414
|
$ 47,699,660
|
$ 47,747,708
|
|
$ 48,838,660
|
$ 47,747,708
|
|
Less:
Goodwill
|
1,459,302
|
1,459,302
|
1,458,795
|
1,449,511
|
1,444,209
|
|
1,459,302
|
1,444,209
|
|
Other identifiable
intangible assets
|
119,098
|
125,724
|
132,764
|
132,953
|
138,370
|
|
119,098
|
138,370
|
|
Total tangible
assets
|
47,260,260
|
50,108,070
|
47,061,855
|
46,117,196
|
46,165,129
|
|
47,260,260
|
46,165,129
|
|
Less: AOCI
|
(1,163,075)
|
(1,081,886)
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
|
(1,163,075)
|
(936,345)
|
|
Total tangible assets,
excluding AOCI
|
$
48,423,335
|
$ 51,189,956
|
$ 48,284,393
|
$ 47,415,008
|
$ 47,101,474
|
|
$ 48,423,335
|
$ 47,101,474
|
|
Quarter
Ended
|
|
Year-to-date
|
|
(Dollars in thousands,
except per share data)
|
Jun 2023
|
Mar 2023
|
Dec 2022
|
Sep 2022
|
Jun 2022
|
|
Jun 2023
|
Jun 2022
|
|
PERIOD END
BALANCES:
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity, excluding AOCI
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$4,485,850
|
$4,490,417
|
$4,311,374
|
$4,166,925
|
$4,437,925
|
|
$4,485,850
|
$4,437,925
|
|
Less: AOCI
|
(1,163,075)
|
(1,081,886)
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
|
(1,163,075)
|
(936,345)
|
|
Total shareholders'
equity, excluding AOCI
|
$5,648,925
|
$5,572,303
|
$5,533,912
|
$5,464,737
|
$5,374,270
|
|
$5,648,925
|
$5,374,270
|
|
|
|
|
|
|
|
|
|
|
Common shareholders'
equity, excluding AOCI
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$4,485,850
|
$4,490,417
|
$4,311,374
|
$4,166,925
|
$4,437,925
|
|
$4,485,850
|
$4,437,925
|
|
Less: preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
|
166,993
|
166,993
|
|
Common shareholders'
equity
|
4,318,857
|
4,323,424
|
4,144,381
|
3,999,932
|
4,270,932
|
|
4,318,857
|
4,270,932
|
|
Less: AOCI
|
(1,163,075)
|
(1,081,886)
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
|
(1,163,075)
|
(936,345)
|
|
Common shareholders'
equity, excluding AOCI
|
$5,481,932
|
$5,405,310
|
$5,366,919
|
$5,297,744
|
$5,207,277
|
|
$5,481,932
|
$5,207,277
|
|
|
|
|
|
|
|
|
|
|
Total tangible common
shareholders' equity,
excluding AOCI
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$4,485,850
|
$4,490,417
|
$4,311,374
|
$4,166,925
|
$4,437,925
|
|
$4,485,850
|
$4,437,925
|
|
Less:
Goodwill
|
1,459,302
|
1,459,302
|
1,458,795
|
1,449,511
|
1,444,209
|
|
1,459,302
|
1,444,209
|
|
Other identifiable
intangible assets
|
119,098
|
125,724
|
132,764
|
132,953
|
138,370
|
|
119,098
|
138,370
|
|
Preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
|
166,993
|
166,993
|
|
Total tangible common
shareholders' equity
|
2,740,457
|
2,738,398
|
2,552,822
|
2,417,468
|
2,688,353
|
|
2,740,457
|
2,688,353
|
|
Less: AOCI
|
(1,163,075)
|
(1,081,886)
|
(1,222,538)
|
(1,297,812)
|
(936,345)
|
|
(1,163,075)
|
(936,345)
|
|
Total tangible common
shareholders' equity,
excluding AOCI
|
$3,903,532
|
$3,820,284
|
$3,775,360
|
$3,715,280
|
$3,624,698
|
|
$3,903,532
|
$3,624,698
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES:
|
|
|
|
|
|
|
|
|
|
Total tangible common
shareholders' equity
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
$4,539,353
|
$4,396,461
|
$4,215,585
|
$4,506,655
|
$4,523,189
|
|
$4,468,302
|
$4,791,221
|
|
Less:
Goodwill
|
1,459,302
|
1,459,127
|
1,457,120
|
1,444,331
|
1,407,452
|
|
1,459,215
|
1,407,711
|
|
Other identifiable
intangible assets
|
123,313
|
128,957
|
132,091
|
136,149
|
188,897
|
|
126,119
|
192,233
|
|
Preferred
stock
|
166,993
|
166,993
|
166,993
|
166,993
|
166,993
|
|
166,993
|
166,993
|
|
Total tangible common
shareholders' equity
|
$2,789,745
|
$2,641,384
|
$2,459,381
|
$2,759,182
|
$2,759,847
|
|
$2,715,975
|
$3,024,284
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
$49,067,121
|
$48,652,201
|
$47,790,494
|
$47,595,557
|
$47,064,829
|
|
$48,860,807
|
$47,370,639
|
|
Total shares of common
stock outstanding
|
182,626,229
|
182,684,578
|
182,437,265
|
182,438,780
|
182,461,786
|
|
182,626,229
|
182,461,786
|
|
Average shares
outstanding-diluted
|
183,631,570
|
183,908,798
|
183,762,008
|
183,313,831
|
183,711,402
|
|
183,770,759
|
185,476,720
|
|
|
|
|
|
|
|
|
|
|
Tangible common
shareholders' equity to tangible
assets (1)
|
5.80 %
|
5.46 %
|
5.42 %
|
5.24 %
|
5.82 %
|
|
5.80 %
|
5.82 %
|
|
Tangible common
shareholders' equity to tangible
assets, excluding AOCI (2)
|
8.06
|
7.46
|
7.82
|
7.84
|
7.70
|
|
8.06
|
7.70
|
|
Return on average
tangible common equity (3)
|
16.05
|
11.40
|
15.42
|
17.40
|
18.11
|
|
13.80
|
15.81
|
|
Adjusted return on
average tangible common
equity (4)
|
16.80
|
19.10
|
23.04
|
20.66
|
19.50
|
|
17.91
|
17.05
|
|
Adjusted return on
average assets (5)
|
0.97
|
1.06
|
1.21
|
1.22
|
1.16
|
|
1.02
|
1.11
|
|
Adjusted return on
average common shareholders'
equity (6)
|
10.72
|
11.93
|
14.00
|
13.13
|
12.36
|
|
11.31
|
11.15
|
|
Pre-tax pre-provision
net revenue to total average
assets (7)
|
1.32
|
0.91
|
1.11
|
1.33
|
1.40
|
|
1.12
|
1.33
|
|
Adjusted pre-tax
pre-provision net revenue to
total average assets (8)
|
1.38
|
1.46
|
1.62
|
1.58
|
1.51
|
|
1.42
|
1.43
|
|
Tangible book value per
common share (9)
|
$ 15.01
|
$ 14.99
|
$ 13.99
|
$ 13.25
|
$ 14.73
|
|
$ 15.01
|
$
14.73
|
|
Tangible book value per
common share, excluding
AOCI (10)
|
21.37
|
20.91
|
20.69
|
20.36
|
19.87
|
|
21.37
|
19.87
|
|
Adjusted earnings per
common share (11)
|
$
0.64
|
$
0.68
|
$
0.78
|
$
0.78
|
$
0.73
|
|
$
1.31
|
$
1.38
|
|
Adjusted dividend
payout ratio (12)
|
36.72 %
|
34.56 %
|
28.21 %
|
28.21 %
|
30.14 %
|
|
35.88 %
|
31.88 %
|
|
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