Financial Summary
(dollars in thousands, | For the Three Months Ended | For the Six Months Ended | |||||||||||||||||
except per share data) | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Reported Results | |||||||||||||||||||
Net income | $ | 42,781 | $ | 30,224 | $ | 30,754 | $ | 73,005 | $ | 58,480 | |||||||||
Diluted earnings per share | $ | 0.42 | $ | 0.30 | $ | 0.33 | $ | 0.72 | $ | 0.62 | |||||||||
Return on average assets | 1.54 | % | 1.17 | % | 1.28 | % | 1.36 | % | 1.23 | % | |||||||||
Return on average equity | 13.90 | % | 10.56 | % | 11.60 | % | 12.29 | % | 10.86 | % | |||||||||
Operating Results (non-GAAP)(1) | |||||||||||||||||||
Core net income | $ | 42,734 | $ | 45,387 | $ | 30,643 | $ | 88,121 | $ | 58,458 | |||||||||
Core diluted earnings per share | $ | 0.42 | $ | 0.45 | $ | 0.33 | $ | 0.87 | $ | 0.62 | |||||||||
Core pre-tax pre-provision net revenue | $ | 56,344 | $ | 54,481 | $ | 42,352 | $ | 110,825 | $ | 78,889 | |||||||||
Provision for credit losses | $ | 2,790 | $ | (2,650 | ) | $ | 4,099 | $ | 140 | $ | 6,063 | ||||||||
Provision for credit losses - acquisition day 1 non-PCD | $ | — | $ | 10,653 | $ | — | $ | 10,653 | $ | — | |||||||||
Net charge-offs | $ | 8,665 | $ | 1,173 | $ | 1,528 | $ | 9,838 | $ | 2,662 | |||||||||
Reserve build/(release)(2) | $ | (339 | ) | $ | 30,979 | $ | 2,415 | $ | 30,640 | $ | 1,081 | ||||||||
Core return on average assets (ROAA) | 1.54 | % | 1.75 | % | 1.28 | % | 1.64 | % | 1.23 | % | |||||||||
Core pre-tax pre-provision ROAA | 2.03 | % | 2.11 | % | 1.77 | % | 2.06 | % | 1.66 | % | |||||||||
Return on average tangible common equity | 20.68 | % | 15.75 | % | 16.81 | % | 18.30 | % | 15.64 | % | |||||||||
Core return on average tangible common equity | 20.66 | % | 23.42 | % | 16.75 | % | 21.99 | % | 15.63 | % | |||||||||
Core efficiency ratio | 52.80 | % | 52.41 | % | 55.87 | % | 52.61 | % | 57.61 | % | |||||||||
Net interest margin (FTE) | 3.85 | % | 4.01 | % | 3.38 | % | 3.93 | % | 3.29 | % |
(1) Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. A full reconciliation of non-GAAP financial measures can be found at the end of the financial statements which accompany this release.
(2) Reserve build/(release) represents the net change in the Company's allowance for credit losses (ACL) from the prior period.
Second Quarter 2023 Highlights
- Net income of
$42.8 million and diluted earnings per share of$0.42 represented an increase of$12.6 million , or$0.12 per share, from the prior quarter and an increase of$12.0 million , or$0.09 per share, from the second quarter of 2022- The results from the previous quarter included
$19.2 million of merger-related expenses, including$8.5 million of noninterest expense and impacts to the provision for credit losses of$10.7 million , related to the Company’s acquisition ofCentric Financial Corporation (Centric) onJanuary 31, 2023
- The results from the previous quarter included
- Core pre-tax pre-provision net revenue (PPNR)(1) totaled
$56.3 million , an increase of$1.9 million from the previous quarter and an increase of$14.0 million from the second quarter of 2022 - Total loans increased
$148.1 million , or 6.9% annualized, from the previous quarter, driven by strong commercial loan growth, including$44.9 million growth in Equipment Finance loans- Average loans increased
$387.6 million , or 18.7% annualized, from the previous quarter, due in part to the inclusion of acquired loan balances on the Company’s balance sheet for the entirety of the second quarter, as compared to only two months of the first quarter
- Average loans increased
- Average deposits increased
$433.5 million , or 20.0% annualized, compared to the prior quarter, due in part to the inclusion of acquired deposit balances on the Company’s balance sheet for the entirety of the second quarter, as compared to only two months of the first quarter- Excluding deposits acquired in the Centric acquisition, average deposits increased by
$221.4 million , or 10.8% annualized - End of period deposits decreased
$88.7 million compared to the prior quarter - 82.0% of deposits were insured or secured as of
June 30, 2023
- Excluding deposits acquired in the Centric acquisition, average deposits increased by
- The loan-to-deposit ratio increased 250 basis points to 96.4% at the end of the second quarter of 2023
- Loans and available for sale (AFS) securities as a percentage of total deposits was 105.0% as of
June 30, 2023
- Loans and available for sale (AFS) securities as a percentage of total deposits was 105.0% as of
- Record net interest income (FTE) of
$98.1 million increased$3.5 million from the previous quarter and increased$24.2 million from the second quarter of 2022 - Noninterest income of
$24.5 million increased$1.6 million from the previous quarter due in part to higher gain on sale of mortgage loans - Noninterest expense (excluding merger-related expense) of
$66.0 million increased$3.2 million from the previous quarter due primarily to elevated hospitalization expenses - Total shareholder’s equity increased
$7.4 million from the previous quarter due to a$29.9 million increase in retained earnings, partially offset by a$14.0 million decrease in accumulated other comprehensive income (AOCI) resulting from the impact of higher interest rates on the fair value of the Company’s available for sale investment portfolio and interest rate swap agreements- Tangible book value per share increased
$0.11 , or 5.3% annualized, from the previous quarter - AOCI as a percentage of tangible common equity increased 157 basis points to 16.4% in the second quarter of 2023
- Tangible book value per share increased
First Commonwealth Bank (the Bank) has been recognized for the fifth consecutive year by Forbes as one of the World’s Best Banks for 2023
Profitability
- The core efficiency ratio(1) of 52.8% increased 39 basis points from the previous quarter, but improved 306 basis points from the second quarter of 2022
- The return on average assets (ROA) improved 37 basis points to 1.54% compared to previous quarter
- The core return on average assets(1) decreased 22 basis points to 1.54% compared to the previous quarter but improved 26 basis points from the second quarter of 2023
- Core pre-tax pre-provision ROA(1) for the quarter ended
June 30, 2023 was 2.03% as compared to 2.11% in the prior quarter and 1.77% in the second quarter of 2022 - The net interest margin of 3.85% decreased 16 basis points compared to the prior quarter and increased 47 basis points as compared to the second quarter of 2022
- Centric purchasing accounting marks contributed 14 basis points to the margin in the second quarter, an increase of 8 basis points from the prior quarter
- The retention of approximately
$250 million of additional cash on the Bank’s balance sheet for liquidity purposes had a negative impact on the net interest margin of 10 basis points in the second quarter
Asset quality
- The provision for credit losses was
$2.8 million , a decrease of$5.2 million compared to the previous quarter- Provision expense in the prior quarter included
$10.7 million related to day-1 Non-Purchase Credit Deteriorated (PCD) loans resulting from the Centric acquisition
- Provision expense in the prior quarter included
- The allowance for credit losses as a percentage of end-of-period loans was 1.52%, a decrease of 3 basis points from the previous quarter
- Total criticized loans increased
$17.2 million from the previous quarter, from$189.9 million , or 2.2% of total loans and leases, to$207.1 million , or 2.3% of total loans and leases- Total nonperforming assets of
$49.3 million increased$4.1 million from the previous quarter
- Total nonperforming assets of
Net charge-offs on loans totaled
- Net charge-offs as a percentage of average loans outstanding was 0.40% in the second quarter of 2023 as compared to 0.06% in the previous quarter, 0.35% of which was attributable to the aforementioned charge off of acquired loans
Strong capital and liquidity positions
- Total available liquidity of
$4.3 billion atJune 30, 2023 - Cash and AFS securities as a percentage of total assets increased 26 basis points to 10.9%
- Total available liquidity represented 258% of uninsured/unsecured deposits, and combined with cash represented 285% of uninsured/unsecured deposits
- On
April 24, 2023 , the Board of Directors authorized a 4.2% increase in the quarterly cash dividend to shareholders - Bank-level Tier 1 Capital ratio of 10.7%, which represents
$245.7 million in excess capital above the regulatory “well capitalized” requirement of 8.0% - A total of 766,393 shares at a weighted average price of
$11.92 were repurchased during the second quarter of 2023 under the Company’s previously authorized share repurchase program. The remaining repurchase capacity under the current program was$21.1 million as ofJune 30, 2023
“I’m pleased with our progress this quarter, as we continue to grow the company strategically while posting a core efficiency ratio of 52.8% and a return on average assets of 1.54%,” stated
Earnings
Net income for the second quarter of 2023 was
Net Interest Income and Net Interest Margin
Net interest income (FTE) of
The net interest margin for the second quarter of 2023 was 3.85%, a decrease of 16 basis points from the previous quarter and an increase of 47 basis points from the second quarter of 2022. The decrease from the previous quarter was due primarily to a 42 basis point increase in the cost of deposits partially offset by a 31 basis point increase in the yield on loans. The total cost of funds was 1.38% in the second quarter of 2023, which represents an increase of 48 basis points from the previous quarter.
Total average deposits grew
Asset Quality
Provision expense in the second quarter of 2023 totaled
The allowance for credit losses in the second quarter of 2023 totaled
The allowance for credit losses as a percentage of end-of-period loans in the second quarter of 2023 was 1.52% as compared to 1.55% in the previous quarter.
At
Nonperforming loans represented 0.54% of total loans for the period ended
During the second quarter of 2023, net charge-offs were
Net charge-offs as a percentage of average loans were 0.40%, 0.06% and 0.09% for the periods ended
Noninterest Income and Noninterest Expense
Noninterest income totaled
The
Noninterest expense (excluding
The core efficiency ratio was 52.8% during the second quarter of 2023 as compared to 52.4% in the previous quarter and 55.9% in the second quarter of 2022.
Full time equivalent staff was 1,483 at
Dividends and Capital
First Commonwealth declared a common stock quarterly dividend of
First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the second quarter of 2023 on
About
Forward-Looking Statements
Certain statements contained in this release that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Media Relations:
Vice President / Communications and Media Relations
Phone: 724-463-6806
E-mail: JLongwill@fcbanking.com
Investor Relations:
Vice President / Finance and Investor Relations
Phone: 724-463-1690
E-mail: RThomas1@fcbanking.com
CONSOLIDATED FINANCIAL DATA | |||||||||||||||||||
Unaudited | |||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
SUMMARY RESULTS OF OPERATIONS | |||||||||||||||||||
Net interest income | $ | 97,824 | $ | 94,358 | $ | 73,662 | $ | 192,182 | $ | 141,834 | |||||||||
Provision for credit losses | 2,790 | (2,650 | ) | 4,099 | 140 | 6,063 | |||||||||||||
Provision for credit losses — acquisition day 1 non-PCD | — | 10,653 | — | 10,653 | — | ||||||||||||||
Noninterest income | 24,523 | 22,963 | 24,509 | 47,486 | 48,485 | ||||||||||||||
Noninterest expense | 65,943 | 71,381 | 55,679 | 137,324 | 111,403 | ||||||||||||||
Net income | 42,781 | 30,224 | 30,754 | 73,005 | 58,480 | ||||||||||||||
Core net income(5) | 42,734 | 45,387 | 30,643 | 88,121 | 58,458 | ||||||||||||||
Earnings per common share (diluted) | $ | 0.42 | $ | 0.30 | $ | 0.33 | $ | 0.72 | $ | 0.62 | |||||||||
Core earnings per common share (diluted)(6) | $ | 0.42 | $ | 0.45 | $ | 0.33 | $ | 0.87 | $ | 0.62 | |||||||||
KEY FINANCIAL RATIOS | |||||||||||||||||||
Return on average assets | 1.54 | % | 1.17 | % | 1.28 | % | 1.36 | % | 1.23 | % | |||||||||
Core return on average assets(7) | 1.54 | % | 1.75 | % | 1.28 | % | 1.64 | % | 1.23 | % | |||||||||
Return on average assets, pre-provision, pre-tax | 2.03 | % | 1.78 | % | 1.78 | % | 1.91 | % | 1.66 | % | |||||||||
Core return on average assets, pre-provision, pre-tax | 2.03 | % | 2.11 | % | 1.77 | % | 2.06 | % | 1.66 | % | |||||||||
Return on average shareholders' equity | 13.90 | % | 10.56 | % | 11.60 | % | 12.29 | % | 10.86 | % | |||||||||
Return on average tangible common equity(8) | 20.68 | % | 15.75 | % | 16.81 | % | 18.30 | % | 15.64 | % | |||||||||
Core return on average tangible common equity(9) | 20.66 | % | 23.42 | % | 16.75 | % | 21.99 | % | 15.63 | % | |||||||||
Core efficiency ratio(2)(10) | 52.80 | % | 52.41 | % | 55.87 | % | 52.61 | % | 57.61 | % | |||||||||
Net interest margin (FTE)(1) | 3.85 | % | 4.01 | % | 3.38 | % | 3.93 | % | 3.29 | % | |||||||||
Book value per common share | $ | 12.03 | $ | 11.87 | $ | 11.20 | |||||||||||||
Tangible book value per common share(11) | 8.24 | 8.13 | 7.85 | ||||||||||||||||
Market value per common share | 12.65 | 12.43 | 13.42 | ||||||||||||||||
Cash dividends declared per common share | 0.125 | 0.120 | 0.120 | 0.245 | 0.235 | ||||||||||||||
ASSET QUALITY RATIOS | |||||||||||||||||||
Nonperforming loans and leases as a percent of end-of-period loans and leases(3) | 0.54 | % | 0.51 | % | 0.50 | % | |||||||||||||
Nonperforming assets as a percent of total assets(3) | 0.44 | % | 0.41 | % | 0.38 | % | |||||||||||||
Net charge-offs as a percent of average loans and leases (annualized)(4) | 0.40 | % | 0.06 | % | 0.09 | % | |||||||||||||
Allowance for credit losses as a percent of nonperforming loans and leases(4) | 278.17 | % | 302.67 | % | 262.25 | % | |||||||||||||
Allowance for credit losses as a percent of end-of-period loans and leases(4) | 1.52 | % | 1.55 | % | 1.31 | % | |||||||||||||
CAPITAL RATIOS | |||||||||||||||||||
Shareholders' equity as a percent of total assets | 10.9 | % | 11.0 | % | 11.0 | % | |||||||||||||
Tangible common equity as a percent of tangible assets(12) | 7.7 | % | 7.8 | % | 8.0 | % | |||||||||||||
Leverage Ratio | 9.8 | % | 10.2 | % | 9.8 | % | |||||||||||||
11.5 | % | 11.5 | % | 12.2 | % | ||||||||||||||
13.7 | % | 13.8 | % | 14.6 | % | ||||||||||||||
Common Equity - Tier I | 10.8 | % | 10.8 | % | 11.2 | % |
CONSOLIDATED FINANCIAL DATA | ||||||||||||||
Unaudited | ||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
INCOME STATEMENT | ||||||||||||||
Interest income | $ | 131,267 | $ | 114,589 | $ | 76,728 | $ | 245,856 | $ | 147,972 | ||||
Interest expense | 33,443 | 20,231 | 3,066 | 53,674 | 6,138 | |||||||||
Net Interest Income | 97,824 | 94,358 | 73,662 | 192,182 | 141,834 | |||||||||
Provision for credit losses | 2,790 | (2,650 | ) | 4,099 | 140 | 6,063 | ||||||||
Provision for credit losses - acquisition day 1 non-PCD | — | 10,653 | — | 10,653 | — | |||||||||
Net Interest Income after Provision for Credit Losses | 95,034 | 86,355 | 69,563 | 181,389 | 135,771 | |||||||||
Net securities gains | — | — | — | — | 2 | |||||||||
Trust income | 2,532 | 2,486 | 2,573 | 5,018 | 5,286 | |||||||||
Service charges on deposit accounts | 5,324 | 4,918 | 4,886 | 10,242 | 9,501 | |||||||||
Insurance and retail brokerage commissions | 2,314 | 2,552 | 2,486 | 4,866 | 4,758 | |||||||||
Income from bank owned life insurance | 1,195 | 1,227 | 1,383 | 2,422 | 2,891 | |||||||||
Gain on sale of mortgage loans | 1,253 | 652 | 1,561 | 1,905 | 2,843 | |||||||||
Gain on sale of other loans and assets | 1,891 | 2,086 | 1,099 | 3,977 | 3,418 | |||||||||
Card-related interchange income | 7,372 | 6,829 | 7,137 | 14,201 | 13,627 | |||||||||
Derivative mark-to-market | 81 | (89 | ) | 42 | (8 | ) | 389 | |||||||
Swap fee income | 332 | 245 | 1,154 | 577 | 1,607 | |||||||||
Other income | 2,229 | 2,057 | 2,188 | 4,286 | 4,163 | |||||||||
Total Noninterest Income | 24,523 | 22,963 | 24,509 | 47,486 | 48,485 | |||||||||
Salaries and employee benefits | 36,735 | 34,264 | 30,949 | 70,999 | 61,881 | |||||||||
Net occupancy | 4,784 | 5,018 | 4,170 | 9,802 | 8,957 | |||||||||
Furniture and equipment | 4,284 | 4,238 | 3,857 | 8,522 | 7,587 | |||||||||
Data processing | 3,763 | 3,404 | 3,470 | 7,167 | 6,658 | |||||||||
1,173 | 1,252 | 913 | 2,425 | 1,918 | ||||||||||
Advertising and promotion | 1,327 | 1,663 | 1,434 | 2,990 | 2,660 | |||||||||
Intangible amortization | 1,282 | 1,147 | 862 | 2,429 | 1,724 | |||||||||
Other professional fees and services | 1,182 | 1,591 | 1,197 | 2,773 | 2,418 | |||||||||
1,277 | 1,417 | 702 | 2,694 | 1,400 | ||||||||||
Litigation and operational losses | 894 | 743 | 629 | 1,637 | 1,229 | |||||||||
Loss on sale or write-down of assets | 6 | 41 | 86 | 47 | 161 | |||||||||
Merger and acquisition | (60 | ) | 8,541 | — | 8,481 | — | ||||||||
Other operating expenses | 9,296 | 8,062 | 7,410 | 17,358 | 14,810 | |||||||||
Total Noninterest Expense | 65,943 | 71,381 | 55,679 | 137,324 | 111,403 | |||||||||
Income before Income Taxes | 53,614 | 37,937 | 38,393 | 91,551 | 72,853 | |||||||||
Income tax provision | 10,833 | 7,713 | 7,639 | 18,546 | 14,373 | |||||||||
Net Income | $ | 42,781 | $ | 30,224 | $ | 30,754 | $ | 73,005 | $ | 58,480 | ||||
Shares Outstanding at End of Period | 102,444,915 | 103,193,127 | 93,705,120 | 102,444,915 | 93,705,120 | |||||||||
Average Shares Outstanding Assuming Dilution | 102,760,266 | 99,779,816 | 94,245,770 | 101,281,899 | 94,273,808 | |||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||
Unaudited | |||||||||||
(dollars in thousands) | |||||||||||
2023 | 2023 | 2022 | |||||||||
BALANCE SHEET (Period End) | |||||||||||
Assets | |||||||||||
Cash and due from banks | $ | 123,095 | $ | 113,692 | $ | 120,267 | |||||
Interest-bearing bank deposits | 325,774 | 282,110 | 179,533 | ||||||||
Securities available for sale, at fair value | 784,503 | 786,813 | 877,287 | ||||||||
Securities held to maturity, at amortized cost | 439,922 | 451,278 | 492,229 | ||||||||
Loans held for sale | 16,300 | 11,050 | 12,876 | ||||||||
Loans and leases | 8,799,836 | 8,656,945 | 7,119,754 | ||||||||
Allowance for credit losses | (133,546 | ) | (133,885 | ) | (93,603 | ) | |||||
Net loans and leases | 8,666,290 | 8,523,060 | 7,026,151 | ||||||||
388,451 | 385,998 | 313,449 | |||||||||
Other assets | 574,269 | 559,751 | 504,635 | ||||||||
Total Assets | $ | 11,318,604 | $ | 11,113,752 | $ | 9,526,427 | |||||
Liabilities and Shareholders' Equity | |||||||||||
Noninterest-bearing demand deposits | $ | 2,624,344 | $ | 2,698,225 | $ | 2,726,242 | |||||
Interest-bearing demand deposits | 611,156 | 547,015 | 273,360 | ||||||||
Savings deposits | 4,935,124 | 5,127,037 | 4,708,868 | ||||||||
Time deposits | 975,654 | 862,671 | 345,075 | ||||||||
Total interest-bearing deposits | 6,521,934 | 6,536,723 | 5,327,303 | ||||||||
Total deposits | 9,146,278 | 9,234,948 | 8,053,545 | ||||||||
Short-term borrowings | 542,839 | 278,978 | 88,923 | ||||||||
Long-term borrowings | 187,276 | 187,531 | 181,752 | ||||||||
Total borrowings | 730,115 | 466,509 | 270,675 | ||||||||
Other liabilities | 209,792 | 187,281 | 153,049 | ||||||||
Shareholders' equity | 1,232,419 | 1,225,014 | 1,049,158 | ||||||||
Total Liabilities and Shareholders' Equity | $ | 11,318,604 | $ | 11,113,752 | $ | 9,526,427 |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands) |
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||
Yield/ | Yield/ | Yield/ | Yield/ | Yield/ | |||||||||||||||||
2023 | Rate | 2023 | Rate | 2022 | Rate | 2023 | Rate | 2022 | Rate | ||||||||||||
NET INTEREST MARGIN | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Loans and leases (FTE)(1)(3) | $ | 8,689,021 | 5.58 | % | $ | 8,301,449 | 5.27 | % | $ | 7,036,176 | 3.97 | % | $ | 8,496,305 | 5.43 | % | $ | 6,965,296 | 3.89 | % | |
Securities and interest-bearing bank deposits (FTE)(1) | 1,535,136 | 2.77 | % | 1,279,477 | 2.20 | % | 1,734,126 | 1.68 | % | 1,408,014 | 2.51 | % | 1,771,421 | 1.61 | % | ||||||
Total Interest-Earning Assets (FTE)(1) | 10,224,157 | 5.16 | % | 9,580,926 | 4.86 | % | 8,770,302 | 3.52 | % | 9,904,319 | 5.02 | % | 8,736,717 | 3.43 | % | ||||||
Noninterest-earning assets | 932,756 | 907,982 | 830,167 | 920,437 | 826,016 | ||||||||||||||||
Total Assets | $ | 11,156,913 | $ | 10,488,908 | $ | 9,600,469 | $ | 10,824,756 | $ | 9,562,733 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||
Interest-bearing demand and savings deposits | $ | 5,595,336 | 1.35 | % | $ | 5,312,086 | 0.88 | % | $ | 5,067,692 | 0.05 | % | $ | 5,454,494 | 1.13 | % | $ | 5,024,283 | 0.04 | % | |
Time deposits | 930,447 | 3.03 | % | 682,144 | 2.34 | % | 354,403 | 0.26 | % | 806,981 | 2.74 | % | 364,388 | 0.27 | % | ||||||
Short-term borrowings | 434,783 | 4.79 | % | 266,932 | 3.65 | % | 95,561 | 0.08 | % | 351,321 | 4.36 | % | 105,497 | 0.07 | % | ||||||
Long-term borrowings | 187,379 | 5.03 | % | 185,367 | 5.06 | % | 181,859 | 4.96 | % | 186,378 | 5.04 | % | 181,988 | 4.97 | % | ||||||
Total Interest-Bearing Liabilities | 7,147,945 | 1.88 | % | 6,446,529 | 1.27 | % | 5,699,515 | 0.22 | % | 6,799,174 | 1.59 | % | 5,676,156 | 0.22 | % | ||||||
Noninterest-bearing deposits | 2,580,842 | 2,678,849 | 2,711,458 | 2,629,575 | 2,678,686 | ||||||||||||||||
Other liabilities | 193,292 | 202,476 | 125,646 | 197,860 | 122,379 | ||||||||||||||||
Shareholders' equity | 1,234,834 | 1,161,054 | 1,063,850 | 1,198,147 | 1,085,512 | ||||||||||||||||
Total Noninterest-Bearing Funding Sources | 4,008,968 | 4,042,379 | 3,900,954 | 4,025,582 | 3,886,577 | ||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 11,156,913 | $ | 10,488,908 | $ | 9,600,469 | $ | 10,824,756 | $ | 9,562,733 | |||||||||||
Net Interest Margin (FTE) (annualized)(1) | 3.85 | % | 4.01 | % | 3.38 | % | 3.93 | % | 3.29 | % |
CONSOLIDATED FINANCIAL DATA | |||||||||
Unaudited | |||||||||
(dollars in thousands) | |||||||||
2023 | 2023 | 2022 | |||||||
Loan and Lease Portfolio Detail | |||||||||
Commercial Loan and Lease Portfolio: | |||||||||
Commercial, financial, agricultural and other | $ | 1,347,842 | $ | 1,361,858 | $ | 1,149,521 | |||
Commercial real estate | 3,004,962 | 2,991,930 | 2,319,094 | ||||||
Equipment Finance loans and leases | 154,152 | 109,221 | 21,062 | ||||||
Real estate construction | 474,720 | 422,831 | 292,400 | ||||||
Total Commercial | 4,981,676 | 4,885,840 | 3,782,077 | ||||||
Consumer Loan Portfolio: | |||||||||
Closed-end mortgages | 1,858,660 | 1,807,941 | 1,567,561 | ||||||
Home equity lines of credit | 505,449 | 515,926 | 532,640 | ||||||
Real estate construction | 100,079 | 119,071 | 100,592 | ||||||
2,464,188 | 2,442,938 | 2,200,793 | |||||||
Auto & RV loans | 1,272,557 | 1,244,874 | 1,047,104 | ||||||
Direct installment | 28,881 | 30,381 | 35,245 | ||||||
Personal lines of credit | 49,168 | 49,399 | 50,249 | ||||||
Student loans | 3,366 | 3,513 | 4,286 | ||||||
Total Other Consumer | 1,353,972 | 1,328,167 | 1,136,884 | ||||||
Total Consumer Portfolio | 3,818,160 | 3,771,105 | 3,337,677 | ||||||
Total Portfolio Loans and Leases | 8,799,836 | 8,656,945 | 7,119,754 | ||||||
Loans held for sale | 16,300 | 11,050 | 12,876 | ||||||
Total Loans and Leases | $ | 8,816,136 | $ | 8,667,995 | $ | 7,132,630 | |||
2023 | 2023 | 2022 | |||||||
ASSET QUALITY DETAIL | |||||||||
Nonperforming Loans and Leases: | |||||||||
Loans and leases on nonaccrual basis * | $ | 29,322 | $ | 29,413 | $ | 29,288 | |||
Loans on nonaccrual basis - Centric acquisition | 18,687 | 14,821 | — | ||||||
Troubled debt restructured loans on accrual basis * | — | — | 6,404 | ||||||
Total Nonperforming Loans and Leases | $ | 48,009 | $ | 44,234 | $ | 35,692 | |||
Other real estate owned ("OREO") | 324 | 424 | 93 | ||||||
Repossessions ("Repos") | 1,004 | 553 | 621 | ||||||
Total Nonperforming Assets | $ | 49,337 | $ | 45,211 | $ | 36,406 | |||
Loans past due in excess of 90 days and still accruing | 2,474 | 1,440 | 3,155 | ||||||
Classified loans and leases | 76,419 | 76,962 | 46,798 | ||||||
Criticized loans and leases | 207,071 | 189,873 | 146,780 | ||||||
Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos(4) | 0.56 | % | 0.52 | % | 0.51 | % | |||
Allowance for credit losses | $ | 133,546 | $ | 133,885 | $ | 93,603 | |||
*TDR's were eliminated as of |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands) |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net Charge-offs (Recoveries): | ||||||||||||||||
Commercial, financial, agricultural and other | $ | 6,582 | $ | 504 | $ | 430 | $ | 7,086 | $ | 825 | ||||||
Real estate construction | — | — | — | — | — | |||||||||||
Commercial real estate | 1,423 | (42 | ) | 547 | 1,381 | 533 | ||||||||||
Residential real estate | (32 | ) | 41 | (26 | ) | 9 | 84 | |||||||||
Loans to individuals | 692 | 670 | 577 | 1,362 | 1,220 | |||||||||||
Net Charge-offs | $ | 8,665 | $ | 1,173 | $ | 1,528 | $ | 9,838 | $ | 2,662 | ||||||
Net charge-offs as a percentage of average loans and leases outstanding (annualized)(4) | 0.40 | % | 0.06 | % | 0.09 | % | 0.23 | % | 0.08 | % | ||||||
Provision for credit losses as a percentage of net charge-offs | 32.20 | % | (225.92)% | 268.26 | % | 1.42 | % | 227.76 | % | |||||||
Provision for credit losses | $ | 2,790 | $ | (2,650 | ) | $ | 4,099 | $ | 140 | $ | 6,063 |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
Note: Management believes that it is standard practice in the banking industry to present these non-GAAP measures. These measures provide useful information to management and investors by allowing them to make peer comparisons. | |||||||||||
(1)Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the federal income tax statutory rate of 21%. | |||||||||||
(2)Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs. | |||||||||||
(3)Includes held for sale loans. | |||||||||||
(4)Excludes held for sale loans. | |||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||
Interest income | $ | 131,267 | $ | 114,589 | $ | 76,728 | $ | 245,856 | $ | 147,972 | |
Adjustment to fully taxable equivalent basis(1) | 305 | 305 | 244 | 610 | 498 | ||||||
Interest income adjusted to fully taxable equivalent basis (non-GAAP) | 131,572 | 114,894 | 76,972 | 246,466 | 148,470 | ||||||
Interest expense | 33,443 | 20,231 | 3,066 | 53,674 | 6,138 | ||||||
Net interest income, (FTE)(1) | $ | 98,129 | $ | 94,663 | $ | 73,906 | $ | 192,792 | $ | 142,332 |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands, except per share data) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net Income | $ | 42,781 | $ | 30,224 | $ | 30,754 | $ | 73,005 | $ | 58,480 | ||||||
Intangible amortization | 1,282 | 1,147 | 862 | 2,429 | 1,724 | |||||||||||
Tax benefit of amortization of intangibles | (269 | ) | (241 | ) | (181 | ) | (510 | ) | (362 | ) | ||||||
Net Income, adjusted for tax affected amortization of intangibles | $ | 43,794 | $ | 31,130 | $ | 31,435 | $ | 74,924 | $ | 59,842 | ||||||
Average Tangible Equity: | ||||||||||||||||
Total shareholders' equity | $ | 1,234,834 | $ | 1,161,054 | $ | 1,063,850 | $ | 1,198,147 | $ | 1,085,512 | ||||||
Less: intangible assets | 385,567 | 359,431 | 313,617 | 372,571 | 313,924 | |||||||||||
Tangible Equity | 849,267 | 801,623 | 750,233 | 825,576 | 771,588 | |||||||||||
Less: preferred stock | — | — | — | — | — | |||||||||||
Tangible Common Equity | $ | 849,267 | $ | 801,623 | $ | 750,233 | $ | 825,576 | $ | 771,588 | ||||||
(8)Return on Average Tangible Common Equity | 20.68 | % | 15.75 | % | 16.81 | % | 18.30 | % | 15.64 | % |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Core Net Income: | ||||||||||||||||
Total Net Income | $ | 42,781 | $ | 30,224 | $ | 30,754 | $ | 73,005 | $ | 58,480 | ||||||
Net securities gains | — | — | — | — | (2 | ) | ||||||||||
Merger and acquisition related expenses | (60 | ) | 8,541 | — | 8,481 | — | ||||||||||
Tax benefit of merger and acquisition related expenses | 13 | (1,794 | ) | — | (1,781 | ) | — | |||||||||
COVID-19 related | — | — | 62 | — | 79 | |||||||||||
Tax benefit of COVID-19 related | — | — | (13 | ) | — | (17 | ) | |||||||||
Provision for credit losses - acquisition day 1 non-PCD | — | 10,653 | — | 10,653 | — | |||||||||||
Tax benefit of provision for credit losses - acquisition day 1 non-PCD | — | (2,237 | ) | — | (2,237 | ) | — | |||||||||
Branch consolidation related | — | — | (202 | ) | — | (104 | ) | |||||||||
Tax benefit of bank consolidation related expenses | — | — | 42 | — | 22 | |||||||||||
(5)Core net income | $ | 42,734 | $ | 45,387 | $ | 30,643 | $ | 88,121 | $ | 58,458 | ||||||
Average Shares Outstanding Assuming Dilution | 102,760,266 | 99,779,816 | 94,245,770 | 101,281,899 | 94,273,808 | |||||||||||
(6)Core Earnings per common share (diluted) | $ | 0.42 | $ | 0.45 | $ | 0.33 | $ | 0.87 | $ | 0.62 | ||||||
Intangible amortization | 1,282 | 1,147 | 862 | 2,429 | 1,724 | |||||||||||
Tax benefit of amortization of intangibles | (269 | ) | (241 | ) | (181 | ) | (510 | ) | (362 | ) | ||||||
Core Net Income, adjusted for tax affected amortization of intangibles | $ | 43,747 | $ | 46,293 | $ | 31,324 | $ | 90,040 | $ | 59,820 | ||||||
(9)Core Return on Average Tangible Common Equity | 20.66 | % | 23.42 | % | 16.75 | % | 21.99 | % | 15.63 | % |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands, except per share data) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Core Return on Average Assets: | ||||||||||||||||
Total Net Income | $ | 42,781 | $ | 30,224 | $ | 30,754 | $ | 73,005 | $ | 58,480 | ||||||
Total Average Assets | 11,156,913 | 10,488,908 | 9,600,469 | 10,824,756 | 9,562,733 | |||||||||||
Return on Average Assets | 1.54 | % | 1.17 | % | 1.28 | % | 1.36 | % | 1.23 | % | ||||||
Core Net Income(5) | $ | 42,734 | $ | 45,387 | $ | 30,643 | $ | 88,121 | $ | 58,458 | ||||||
Total Average Assets | 11,156,913 | 10,488,908 | 9,600,469 | 10,824,756 | 9,562,733 | |||||||||||
(7)Core Return on Average Assets | 1.54 | % | 1.75 | % | 1.28 | % | 1.64 | % | 1.23 | % |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Core Efficiency Ratio: | ||||||||||||||||
Total Noninterest Expense | $ | 65,943 | $ | 71,381 | $ | 55,679 | $ | 137,324 | $ | 111,403 | ||||||
Adjustments to Noninterest Expense: | ||||||||||||||||
Intangible amortization | 1,282 | 1,147 | 862 | 2,429 | 1,724 | |||||||||||
Merger and acquisition related | (60 | ) | 8,541 | — | 8,481 | — | ||||||||||
COVID-19 related | — | — | 62 | — | 79 | |||||||||||
Branch consolidation related | — | — | (202 | ) | — | (104 | ) | |||||||||
Noninterest Expense - Core | $ | 64,721 | $ | 61,693 | $ | 54,957 | $ | 126,414 | $ | 109,704 | ||||||
Net interest income, (FTE) | $ | 98,129 | $ | 94,663 | $ | 73,906 | $ | 192,792 | $ | 142,332 | ||||||
Total noninterest income | 24,523 | 22,963 | 24,509 | 47,486 | 48,485 | |||||||||||
Net securities gains | — | — | — | — | (2 | ) | ||||||||||
Total Revenue | 122,652 | 117,626 | 98,415 | 240,278 | 190,815 | |||||||||||
Adjustments to Revenue: | ||||||||||||||||
Derivative mark-to-market | 81 | (89 | ) | 42 | (8 | ) | 389 | |||||||||
Total Revenue - Core | $ | 122,571 | $ | 117,715 | $ | 98,373 | $ | 240,286 | $ | 190,426 | ||||||
(10)Core Efficiency Ratio | 52.80 | % | 52.41 | % | 55.87 | % | 52.61 | % | 57.61 | % |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | |||||||||
2023 | 2023 | 2022 | |||||||
Tangible Equity: | |||||||||
Total shareholders' equity | $ | 1,232,419 | $ | 1,225,014 | $ | 1,049,158 | |||
Less: intangible assets | 388,451 | 385,998 | 313,449 | ||||||
Tangible Equity | 843,968 | 839,016 | 735,709 | ||||||
Less: preferred stock | — | — | — | ||||||
Tangible Common Equity | $ | 843,968 | $ | 839,016 | $ | 735,709 | |||
Tangible Assets: | |||||||||
Total assets | $ | 11,318,604 | $ | 11,113,752 | $ | 9,526,427 | |||
Less: intangible assets | 388,451 | 385,998 | 313,449 | ||||||
Tangible Assets | $ | 10,930,153 | $ | 10,727,754 | $ | 9,212,978 | |||
(12)Tangible Common Equity as a percentage of Tangible Assets | 7.72 | % | 7.82 | % | 7.99 | % | |||
Shares Outstanding at End of Period | 102,444,915 | 103,193,127 | 93,705,120 | ||||||
(11)Tangible Book Value Per Common Share | $ | 8.24 | $ | 8.13 | $ | 7.85 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
Pre-tax pre-provision income: | ||||||||||||||
Net interest income | $ | 97,824 | $ | 94,358 | $ | 73,662 | $ | 192,182 | $ | 141,834 | ||||
Noninterest income | 24,523 | 22,963 | 24,509 | 47,486 | 48,485 | |||||||||
Noninterest expense | 65,943 | 71,381 | 55,679 | 137,324 | 111,403 | |||||||||
Pre-tax pre-provision income | $ | 56,404 | $ | 45,940 | $ | 42,492 | $ | 102,344 | $ | 78,916 | ||||
Net securities gains | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | |||
Merger and acquisition related expenses | (60 | ) | 8,541 | — | 8,481 | — | ||||||||
COVID-19 related | — | — | 62 | — | 79 | |||||||||
Branch consolidation | — | — | (202 | ) | — | (104 | ) | |||||||
Core pre-tax pre-provision income | $ | 56,344 | $ | 54,481 | $ | 42,352 | $ | 110,825 | $ | 78,889 | ||||
Net charge-offs | $ | 8,665 | $ | 1,173 | $ | 1,528 | $ | 9,838 | $ | 2,662 |
Source:
2023 GlobeNewswire, Inc., source