HOUSTON and TUPELO, Miss., Oct. 23, 2023 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended September 30, 2023.

The new logo for Cadence Bank (NYSE: CADE). (PRNewsfoto/Cadence Bank)

Highlights for the third quarter of 2023 included:

  • Achieved quarterly net income available to common shareholders of $90.2 million, or $0.49 per diluted common share, and adjusted net income available to common shareholders,(1) which excludes non-routine income and expenses,(2) of $103.9 million, or $0.56 per diluted common share.
  • Net interest margin was relatively stable at 2.98%, reflecting a slower pace of deposit mix shift from noninterest to interest bearing products and a decrease in brokered funds.
  • Total loans were flat at $32.5 billion compared to the second quarter of 2023. On a year-to-date basis, loans have grown 9.6% annualized.
  • Deposit balances remained relatively stable, declining $356.8 million compared to the second quarter of 2023. Excluding reduction in brokered deposits, total deposits increased $255.5 million, or 2.6% annualized. On a year-to-date basis, total deposits have declined 2.1% annualized.
  • Continued to maintain strong balance sheet liquidity, with a loan-to-deposit ratio of 84.8% at September 30, 2023.

"Our third quarter results are highlighted by stability in our balance sheet and net interest margin," remarked Dan Rollins, Chairman and Chief Executive Officer of the Company. "While loan balances were flat for the quarter, we saw customer deposit growth of over $255 million excluding an intentional reduction in brokered deposits, and a reduction in pace of deposit mix shift from noninterest bearing to interest bearing products. We also continue our focus on improving expenses. Our total employee FTE count has declined by over 400 thus far in 2023 and is expected to decline by an additional 80 FTEs through year end. Similarly, our branch count has declined from 407 at merger to approximately 360 today, including the closure or consolidation of 35 locations in the third quarter."

Earnings Summary

For the third quarter of 2023, the Company reported net income available to common shareholders of $90.2 million, or $0.49 per diluted common share, compared with $121.0 million, or $0.66 per diluted common share, for the third quarter of 2022 and $111.7 million, or $0.61 per diluted common share, for the second quarter of 2023. Adjusted net income available to common shareholders(1) was $103.9 million, or $0.56 per diluted common share, for the third quarter of 2023, compared with $143.7 million, or $0.78 per diluted common share, for the third quarter of 2022 and $116.9 million, or $0.64 per diluted common share, for the second quarter of 2023. Additionally, the Company reported adjusted pre-tax pre-provision net revenue (PPNR)(1) of $153.6 million, or 1.25% of average assets on an annualized basis, for the third quarter of 2023 compared to $189.8 million, or 1.58% of average assets on an annualized basis, for the third quarter of 2022 and $168.8 million, or 1.38% of average assets on an annualized basis, for the second quarter of 2023.

Net Interest Revenue

Net interest revenue was $329.0 million for the third quarter of 2023, compared to $355.4 million for the third quarter of 2022 and $333.6 million for the second quarter of 2023. The net interest margin (fully taxable equivalent) was 2.98% for the third quarter of 2023, compared with 3.28% for the third quarter of 2022 and 3.03% for the second quarter of 2023.

Net interest revenue declined $4.5 million, or 1.4%, compared to the linked quarter as funding costs slightly outpaced improving yields on earning assets.  Loan yield improvement was tempered by the slower loan originations in the third quarter of 2023.  Accretion revenue was $6.6 million and $5.2 million for the third quarter of 2023 and the second quarter of 2023, respectively, adding approximately 7 basis points to the net interest margin for the third quarter of 2023 and 4 basis points for the second quarter of 2023.

Yield on net loans, loans held for sale, and leases excluding accretion, was 6.31% for the third quarter of 2023, up 13 basis points from 6.18% for the second quarter of 2023, while yield on total interest earning assets was 5.38% for the third quarter of 2023, up 17 basis points from 5.21% for the second quarter of 2023. Earning asset yields benefited from the immediate impact of the July Fed action on floating rate loans as well as other fixed and variable rate credits continuing to reprice at higher yields.  Approximately 29% of our total loans are floating (reprice within 30 days), and another 19% reprice within 12 months.  Our total loan beta, excluding accretion, is 44% cycle-to-date.

The average cost of total deposits increased to 2.14% for the third quarter of 2023, up 27 basis points during the quarter. The third quarter increase in total deposit costs slowed considerably, as the increase was nearly half the pace of the first and second quarters of 2023 cost increases of 52 and 59 basis point increases, respectively.  Total interest-bearing liabilities cost increased to 3.17% from 2.92% during the third quarter of 2023.  Our total deposit beta is 38% cycle-to-date.

Balance Sheet Activity

Loans and leases, net of unearned income, were $32.5 billion at September 30, 2023, essentially flat compared to $32.6 billion at the end of the second quarter of 2023.  Total investment securities of $9.6 billion at September 30, 2023 decreased $611.3 million during the third quarter as routine portfolio cash flows each quarter continue to be used to fund loan growth and reduce higher cost funding, including brokered deposits. 

Total deposits declined $356.8 million to $38.3 billion as of September 30, 2023. Total brokered deposits declined $612.3 million from $1.8 billion at the end of the second quarter of 2023 to $1.2 billion at September 30, 2023, or 3.2% of total deposits.  Excluding this proactive decline in brokered deposits, total deposits actually increased $255.5 million, or 2.6% annualized, during the third quarter of 2023.  The results reflect growth in both the Corporate and Community core deposit base, partially offset by seasonal declines in public fund deposits of approximately $250 million.  The September 30, 2023 loan to deposit ratio was 84.8% and securities to total assets was 19.9%, reflecting continued strong liquidity. Noninterest bearing deposits represented 25.2% of total deposits at the end of the third quarter of 2023, declining slightly from 26.4% at June 30, 2023, reflective of the moderated deposit mix shift in the third quarter of 2023. The Company's deposit base continues to be very granular, with average transaction account balances of approximately $22,000 for consumer accounts and $131,000 for commercial accounts at September 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 were stable at $3.5 billion at September 30, 2023 while cash, due from balances and deposits at the Federal Reserve increased $267.1 million to $2.0 billion at September 30, 2023.

Credit Results, Provision for Credit Losses and Allowance for Credit Losses

Total non-performing assets as a percent of total assets were stable at 0.33% at September 30, 2023 compared to 0.27% at September 30, 2022 and 0.34% at June 30, 2023. Total non-performing loans and leases as a percent of loans and leases, net were 0.49% at September 30, 2023, compared to 0.40% at September 30, 2022 and 0.50% at June 30, 2023. Other real estate owned and other repossessed assets was $2.9 million at September 30, 2023 compared to the September 30, 2022 balance of $8.4 million and the June 30, 2023 balance of $2.9 million.  For the third quarter of 2023, criticized loans declined by $10 million to $882 million or 2.71% of loans, down from 2.74% at June 30, 2023 while classified loans increased $65 million to $682 million or 2.10% compared to 1.90% at June 30, 2023 reflective of certain grade migration primarily in non-real estate C&I.

Net charge-offs for the third quarter of 2023 were $34.2 million, or 0.42% of average net loans and leases on an annualized basis, compared with net charge-offs of $6.7 million for the third quarter of 2022 and net charge-offs of $12.7 million for the second quarter of 2023. The increase in net charge-offs during the third quarter of 2023 was driven primarily by two C&I credits that were previously identified as impaired and reserved for in prior quarters. The provision for credit losses for the third quarter of 2023 was $17.0 million, compared with no recorded provision for third quarter of 2022 and $15.0 million for the second quarter of 2023. The allowance for credit losses of $446.9 million at September 30, 2023 represented 1.37% as a percent of total loans and leases, down slightly compared to the June 30, 2023 coverage of 1.43%.

Noninterest Revenue

Noninterest revenue was $119.0 million for the third quarter of 2023, compared with $124.5 million for the third quarter of 2022 and $132.3 million for the second quarter of 2023.  Adjusted noninterest revenue(1) for the third quarter of 2023 was $125.6 million, compared with $124.6 million for the third quarter of 2022 and $132.2 million for the second quarter of 2023. Adjusted noninterest revenue(1) for the third quarter of 2023 excludes $6.7 million of facility and signage write-downs associated with the 35 branch closures effected in the third quarter of 2023. The linked quarter decline in adjusted noninterest revenue(1)  was driven by lower mortgage production and servicing revenue, a negative mortgage servicing rights adjustment, as well as lower other noninterest income. 

Insurance commission revenue continued to remain strong at $45.0 million for the third quarter of 2023, compared with $39.9 million for the third quarter of 2022 and $45.6 million for the second quarter of 2023. The year-over-year quarterly insurance revenue was up $5.1 million or 12.8% reflecting a continued firm pricing market and strong customer growth and retention.

Credit card, debit card and merchant fee revenue was $12.4 million for the third quarter of 2023, compared with $14.5 million for the third quarter of 2022 and $12.6 million for the second quarter of 2023.  Deposit service charge revenue was $16.9 million for the third quarter of 2023 compared with $19.1 million for the third quarter of 2022 and $17.2 million for the second quarter of 2023. The declines include increases in earnings credit rate on corporate accounts.  Other noninterest revenue was $17.9 million for the third quarter of 2023, compared with $22.7 million for the third quarter of 2022 and $26.7 million for the second quarter of 2023. The decline compared to the second quarter of 2023 is driven primarily by $6.7 million of facility and signage write-downs associated with the 35 branch closures effected in the third quarter of 2023.  The remainder of this decline was driven by lower credit related fees, SBA income, and other investment income. 

Mortgage production and servicing revenue totaled $5.8 million for the third quarter of 2023, compared with $4.7 million for the third quarter of 2022 and $6.8 million for the second quarter of 2023. The net mortgage servicing rights valuation adjustment was a negative $0.2 million for the third quarter of 2023, compared with a positive $4.3 million for the third quarter of 2022 and a positive $1.6 million for the second quarter of 2023 with the variances due to continued changes in the interest rate environment. Mortgage origination volume for the third quarter of 2023 was $615.2 million, compared with $769.9 million for the third quarter of 2022 and $848.9 million for the second quarter of 2023.  The decline compared to the second quarter of 2023 reflects routine selling seasonality while the year-over-year decline was impacted by a decline in refinance activity due to the rate environment.

Noninterest Expense

Noninterest expense for the third quarter of 2023 was $312.3 million, compared with $319.7 million for the third quarter of 2022 and $303.9 million for the second quarter of 2023. Adjusted noninterest expense(1) for the third quarter of 2023 was $301.0 million, compared with $290.2 million for the third quarter of 2022 and $297.0 million for the second quarter of 2023. Adjusted noninterest expense(1) for the third quarter of 2023 excludes $10.6 million in restructuring charges related to efficiency initiatives including compensation matters as well as legal and advisory costs.  The adjusted efficiency ratio(1) was 66.1% for the third quarter of 2023 compared to 63.6% for the second quarter of 2023.

The $4.0 million, or 1.4%, increase in adjusted noninterest expense(1) compared to the linked quarter was driven primarily by a $2.7 million increase in deposit insurance assessment expense resulting from an increase in insured deposits, higher second quarter loan balances and certain changes in credit quality metrics that impact the assessment. Salaries and employee benefits increased $4.0 million in the third quarter of 2023, reflecting an increase of $2.6 million in restructuring costs and the impact of our annual merit cycle effective July 1, partially offset by branch closures and reduced headcount during the third quarter of 2023. Employee headcount declined by 319 FTE during the third quarter of 2023, and over the last 12 months has declined by 469 FTE or 7%.

Capital Management

Total shareholders' equity was $4.4 billion at September 30, 2023 compared with $4.2 billion at September 30, 2022 and $4.5 billion at June 30, 2023. Estimated regulatory capital ratios at September 30, 2023 included Common Equity Tier 1 capital of 10.3%, Tier 1 capital of 10.8%, Total risk-based capital of 12.9%, and Tier 1 leverage capital of 8.6%. During the third 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 September 30, 2023.

Summary

Rollins concluded, "We are excited about the opportunities ahead of us.  Our funding and margin dynamics have stabilized, credit quality remains well-managed and within risk tolerances, and our efficiency initiatives continue and should be more evident in our financial results as we move forward, particularly into 2024.  Our bankers remain focused on both sides of the balance sheet - producing quality loan growth as well as protecting and growing core deposit relationships."

Conference Call and Webcast

The Company will conduct a conference call to discuss its third quarter 2023 financial results on October 24, 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 22 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; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies, including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends 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)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

Earnings Summary:









Interest revenue

$       595,518

$       573,419

$       526,132

$       473,548

$       405,559


$    1,695,069

$        1,087,044

Interest expense

266,499

239,868

171,862

114,188

50,205


678,229

95,102

Net interest revenue

329,019

333,551

354,270

359,360

355,354


1,016,840

991,942

Provision for credit losses

17,000

15,000

10,000

6,000

—


42,000

1,000

Net interest revenue, after provision for credit losses

312,019

318,551

344,270

353,360

355,354


974,840

990,942

Noninterest revenue

118,997

132,290

74,071

114,873

124,491


325,358

378,160

Noninterest expense

312,267

303,878

319,279

340,671

319,734


935,424

897,289

Income before income taxes

118,749

146,963

99,062

127,562

160,111


364,774

471,813

Income tax expense

26,166

32,935

22,433

29,628

36,713


81,534

106,510

Net income

92,583

114,028

76,629

97,934

123,398


283,240

365,303

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372


7,116

7,116

Net income available to common shareholders

$         90,211

$       111,656

$         74,257

$         95,562

$       121,026


$       276,124

$          358,187










Balance Sheet - Period End Balances








Total assets

$  48,523,010

$  48,838,660

$  51,693,096

$  48,653,414

$  47,699,660


$  48,523,010

$      47,699,660

Total earning assets

43,729,220

44,012,570

46,808,612

43,722,544

42,832,355


43,729,220

42,832,355

Available-for-sale securities

9,643,231

10,254,580

10,877,879

11,944,096

12,441,894


9,643,231

12,441,894

Loans and leases, net of unearned income

32,520,593

32,556,708

31,282,594

30,349,277

29,296,450


32,520,593

29,296,450

Allowance for credit losses (ACL)

446,859

466,013

453,727

440,347

433,363


446,859

433,363

Net book value of acquired loans

6,895,487

7,357,174

7,942,980

8,754,526

8,841,588


6,895,487

8,841,588

Unamortized net discount on acquired loans

30,761

37,000

41,748

58,162

58,887


30,761

58,887

Total deposits

38,344,885

38,701,669

39,406,454

38,956,614

39,003,946


38,344,885

39,003,946

Total deposits and repurchase agreements

39,207,474

39,492,427

40,177,789

39,665,350

39,682,280


39,207,474

39,682,280

Other short-term borrowings

3,500,223

3,500,226

5,700,228

3,300,231

2,495,000


3,500,223

2,495,000

Subordinated and long-term debt

449,323

449,733

462,144

462,554

463,291


449,323

463,291

Total shareholders' equity

4,395,257

4,485,850

4,490,417

4,311,374

4,166,925


4,395,257

4,166,925

Total shareholders' equity, excluding AOCI (1)

5,705,178

5,648,925

5,572,303

5,533,912

5,464,737


5,705,178

5,464,737

Common shareholders' equity

4,228,264

4,318,857

4,323,424

4,144,381

3,999,932


4,228,264

3,999,932

Common shareholders' equity, excluding AOCI (1)

$    5,538,185

$    5,481,932

$    5,405,310

$    5,366,919

$    5,297,744


$    5,538,185

$        5,297,744










Balance Sheet - Average Balances








Total assets

$  48,655,138

$  49,067,121

$  48,652,201

$  47,790,494

$  47,595,557


$  48,791,497

$      47,446,436

Total earning assets

44,005,800

44,231,755

43,819,715

42,976,050

43,079,481


44,019,772

43,092,786

Available-for-sale securities

10,004,441

10,655,791

11,354,457

12,156,803

13,252,828


10,666,618

14,081,502

Loans and leases, net of unearned income

32,311,572

31,901,096

30,891,640

29,812,924

28,872,156


31,706,637

27,948,795

Total deposits

38,468,912

38,934,793

38,904,048

38,372,354

39,600,886


38,767,657

39,850,473

Total deposits and repurchase agreements

39,295,967

39,708,963

39,632,023

39,033,328

40,256,109


39,544,419

40,522,105

Other short-term borrowings

3,510,942

3,541,985

3,326,196

3,251,947

1,608,587


3,460,386

1,017,106

Subordinated and long-term debt

449,568

455,617

462,385

462,927

464,843


455,810

465,704

Total shareholders' equity

4,505,162

4,539,353

4,396,461

4,215,585

4,506,655


4,480,723

4,695,324

Common shareholders' equity

$    4,338,169

$    4,372,360

$    4,229,468

$    4,048,592

$    4,339,662


$    4,313,730

$        4,528,331










Nonperforming Assets:









Nonaccrual loans and leases

$       150,038

$       157,243

$       160,615

$         98,745

$         89,931


$       150,038

$            89,931

Loans and leases 90+ days past due, still accruing

9,152

4,412

5,164

2,068

11,984


9,152

11,984

Accruing TDR (2)

—

—

—

8,598

16,200


—

16,200

Non-performing loans and leases (NPL)

159,190

161,655

165,779

109,411

118,115


159,190

118,115

Other real estate owned and other assets

2,927

2,857

5,327

6,725

8,376


2,927

8,376

Non-performing assets (NPA)

$       162,117

$       164,512

$       171,106

$       116,136

$       126,491


$       162,117

$          126,491



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26.

(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


Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

Financial Ratios and Other Data:









Return on average assets (2)

0.75 %

0.93 %

0.64 %

0.81 %

1.03 %


0.78 %

1.03 %

Adjusted return on average assets (1)(2)

0.87

0.97

1.06

1.21

1.22


0.97

1.15

Return on average common shareholders' equity (2)

8.25

10.24

7.12

9.36

11.06


8.56

10.58

Adjusted return on average common shareholders' equity (1)(2)

9.50

10.72

11.93

14.00

13.13


10.70

11.79

Return on average tangible common equity (1)(2)

12.96

16.05

11.40

15.42

17.40


13.52

16.32

Adjusted return on average tangible common equity (1)(2)

14.92

16.80

19.10

23.04

20.66


16.89

18.19

Pre-tax pre-provision net revenue to total average assets (1)(2)

1.11

1.32

0.91

1.11

1.33


1.11

1.33

Adjusted pre-tax pre-provision net revenue to total average assets (1)(2)

1.25

1.38

1.46

1.62

1.58


1.36

1.48

Net interest margin-fully taxable equivalent

2.98

3.03

3.29

3.33

3.28


3.10

3.09

Net interest rate spread-fully taxable equivalent

2.21

2.29

2.65

2.84

3.05


2.37

2.93

Efficiency ratio fully tax equivalent (1)

69.53

65.08

74.36

71.67

66.49


69.53

65.34

Adjusted efficiency ratio fully tax equivalent (1)

66.06

63.62

63.46

58.69

60.33


64.36

61.40

Loan/deposit ratio

84.81 %

84.12 %

79.38 %

77.91 %

75.11 %


84.81 %

75.11 %

Full time equivalent employees

6,160

6,479

6,567

6,572

6,629


6,160

6,629










Credit Quality Ratios:









Net charge-offs (recoveries) to average loans and leases (2)

0.42 %

0.16 %

0.02 %

(0.07) %

0.09 %


0.20 %

0.02 %

Provision for credit losses to average loans and leases (2)

0.21

0.19

0.13

0.08

—


0.18

—

ACL to loans and leases, net

1.37

1.43

1.45

1.45

1.48


1.37

1.48

ACL to NPL

280.71

288.28

273.69

402.47

366.90


280.71

366.90

NPL to loans and leases, net

0.49

0.50

0.53

0.36

0.40


0.49

0.40

NPA to total assets

0.33

0.34

0.33

0.24

0.27


0.33

0.27










Equity Ratios:









Total shareholders' equity to total assets

9.06 %

9.19 %

8.69 %

8.86 %

8.74 %


9.06 %

8.74 %

Total common shareholders' equity to total assets

8.71

8.84

8.36

8.52

8.39


8.71

8.39

Tangible common shareholders' equity to tangible assets (1)

5.65

5.80

5.46

5.42

5.24


5.65

5.24

Tangible common shareholders' equity to tangible assets, excluding AOCI (1)

8.22

8.06

7.46

7.82

7.84


8.22

7.84










Capital Adequacy (3):









Common Equity Tier 1 capital

10.3 %

10.1 %

10.1 %

10.2 %

10.3 %


10.3

10.3 %

Tier 1 capital

10.8

10.5

10.6

10.7

10.7


10.8

10.7

Total capital

12.9

12.7

12.8

12.8

12.8


12.9

12.8

Tier 1 leverage capital

8.6

8.5

8.4

8.4

8.4


8.6

8.4



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26.

(2)

Annualized.

(3)

Current quarter regulatory capital ratios are estimated.

 

Table 3

Selected Financial Information



Quarter Ended


Year-to-date


Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

Common Share Data:









Diluted earnings per share

$         0.49

$         0.61

$         0.40

$         0.52

$         0.66


$      1.50

$      1.94

Adjusted earnings per share (1)

0.56

0.64

0.68

0.78

0.78


1.87

2.16

Cash dividends per share

0.235

0.235

0.235

0.22

0.22


0.705

0.66

Book value per share

23.15

23.65

23.67

22.72

21.92


23.15

21.92

Tangible book value per share (1)

14.54

15.01

14.99

13.99

13.25


14.54

13.25

Market value per share (last)

21.22

19.88

20.76

24.66

25.41


21.22

25.41

Market value per share (high)

25.87

21.73

28.18

29.41

28.54


28.18

34.24

Market value per share (low)

19.00

16.95

19.24

22.43

22.04


16.95

22.04

Market value per share (average)

22.56

19.73

24.88

26.84

25.68


22.41

27.52

Dividend payout ratio

47.96 %

38.52 %

58.75 %

42.31 %

33.33 %


47.00 %

34.02 %

Adjusted dividend payout ratio (1)

41.96 %

36.72 %

34.56 %

28.21 %

28.21 %


37.70 %

30.56 %

Total shares outstanding

182,611,075

182,626,229

182,684,578

182,437,265

182,438,780


182,611,075

182,438,780

Average shares outstanding - diluted

184,645,004

183,631,570

183,908,798

183,762,008

183,313,831


184,062,368

184,747,880










Yield/Rate:









(Taxable equivalent basis)









Loans, loans held for sale, and leases

6.39 %

6.24 %

6.00 %

5.54 %

4.82 %


6.22 %

4.45 %

Loans, loans held for sale, and leases
excluding net accretion on acquired loans and
leases

6.31

6.18

5.87

5.41

4.70


6.12

4.27

Available-for-sale securities:









Taxable

2.07

2.09

1.80

1.54

1.44


1.98

1.35

Tax-exempt

3.23

3.21

3.21

3.28

3.05


3.22

2.85

Other investments

5.36

5.05

4.64

3.69

2.32


5.02

1.10

Total interest earning assets and revenue

5.38

5.21

4.88

4.38

3.74


5.16

3.38

Deposits

2.14

1.87

1.28

0.76

0.35


1.76

0.22

Interest bearing demand and money market

2.79

2.49

2.03

1.34

0.60


2.43

0.35

Savings

0.56

0.51

0.36

0.31

0.17


0.47

0.10

Time

3.98

3.69

2.24

1.17

0.56


3.48

0.52

Total interest bearing deposits

2.88

2.58

1.86

1.17

0.53


2.46

0.34

Fed funds purchased, securities sold under
agreement to repurchase and other

4.27

3.97

3.73

3.04

1.65


3.99

0.78

Short-term FHLB borrowings

3.54

5.24

4.66

3.84

2.05


4.91

1.56

Short-term BTFP borrowings

5.15

5.15

—

—

—


5.15

—

Total interest bearing deposits and short-term
borrowings

3.16

2.90

2.20

1.50

0.64


2.77

0.39

Long-term debt

4.22

4.23

4.27

4.15

4.16


4.24

4.16

Total interest bearing liabilities

3.17

2.92

2.23

1.54

0.70


2.79

0.45

Interest bearing liabilities to interest earning
assets

75.74 %

74.57 %

71.24 %

68.42 %

66.19 %


73.87 %

65.30 %

Net interest income tax equivalent adjustment
(in thousands)

$       1,081

$       1,063

$       1,051

$       1,071

$       1,052


$     3,197

$     3,141



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26.

 

Table 4

Consolidated Balance Sheets

(Unaudited)



As of

(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022

ASSETS






Cash and due from banks

$         594,787

$         722,625

$         660,431

$         756,906

$         693,999

Interest bearing deposits with other banks and Federal funds sold

1,403,020

1,008,048

4,452,029

1,241,246

895,630

Available-for-sale securities, at fair value

9,643,231

10,254,580

10,877,879

11,944,096

12,441,894

Loans and leases, net of unearned income

32,520,593

32,556,708

31,282,594

30,349,277

29,296,450

Allowance for credit losses

446,859

466,013

453,727

440,347

433,363

Net loans and leases

32,073,734

32,090,695

30,828,867

29,908,930

28,863,087

Loans held for sale, at fair value

162,376

193,234

196,110

187,925

198,381

Premises and equipment, net

818,006

830,184

826,439

817,430

802,382

Goodwill

1,459,302

1,459,302

1,459,302

1,458,795

1,449,511

Other intangible assets, net

114,127

119,098

125,724

132,764

132,953

Bank-owned life insurance

639,073

634,985

631,174

630,046

624,696

Other assets

1,615,354

1,525,909

1,635,141

1,575,276

1,597,127

Total Assets

$    48,523,010

$    48,838,660

$    51,693,096

$    48,653,414

$    47,699,660

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      9,657,198

$    10,223,508

$    11,517,037

$    12,731,065

$    13,839,649

Interest bearing

18,334,551

18,088,711

18,146,678

19,040,131

18,033,648

 Savings

2,837,348

2,983,709

3,226,685

3,473,746

3,676,340

 Time deposits

7,515,788

7,405,741

6,516,054

3,711,672

3,454,309

Total deposits

38,344,885

38,701,669

39,406,454

38,956,614

39,003,946

Securities sold under agreement to repurchase

862,589

790,758

771,335

708,736

678,334

Other short-term borrowings

3,500,223

3,500,226

5,700,228

3,300,231

2,495,000

Subordinated and long-term debt

449,323

449,733

462,144

462,554

463,291

Other liabilities

970,733

910,424

862,518

913,905

892,164

Total Liabilities

44,127,753

44,352,810

47,202,679

44,342,040

43,532,735

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,528

456,566

456,711

456,093

456,097

Capital surplus

2,733,003

2,724,021

2,715,981

2,709,391

2,695,646

Accumulated other comprehensive loss

(1,309,921)

(1,163,075)

(1,081,886)

(1,222,538)

(1,297,812)

Retained earnings

2,348,654

2,301,345

2,232,618

2,201,435

2,146,001

Total Shareholders' Equity

4,395,257

4,485,850

4,490,417

4,311,374

4,166,925

Total Liabilities & Shareholders' Equity

$    48,523,010

$    48,838,660

$    51,693,096

$    48,653,414

$    47,699,660

 

Table 5

Consolidated Quarterly Average Balance Sheets

(Unaudited)


(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022

ASSETS






Cash and due from banks

$         587,040

$         610,948

$         695,263

$         617,634

$         654,589

Interest bearing deposits with other banks and Federal funds sold

1,574,134

1,607,830

1,526,755

943,806

851,185

Available-for-sale securities, at fair value

10,004,441

10,655,791

11,354,457

12,156,803

13,252,828

Loans and leases, net of unearned income

32,311,572

31,901,096

30,891,640

29,812,924

28,872,156

Allowance for credit losses

459,698

457,027

442,486

434,785

441,042

Net loans and leases

31,851,874

31,444,069

30,449,154

29,378,139

28,431,114

Loans held for sale, at fair value

115,653

67,038

46,863

62,517

103,312

Premises and equipment, net

837,516

829,938

824,190

802,771

809,799

Goodwill

1,459,302

1,459,302

1,459,127

1,457,120

1,444,331

Other intangible assets, net

116,715

123,313

128,957

132,091

136,149

Bank-owned life insurance

636,335

632,489

630,601

625,938

613,973

Other assets

1,472,128

1,636,403

1,536,834

1,613,675

1,298,277

Total Assets

$    48,655,138

$    49,067,121

$    48,652,201

$    47,790,494

$    47,595,557

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      9,924,554

$    10,725,108

$    12,203,079

$    13,344,152

$    13,816,796

Interest bearing

17,970,463

17,997,618

19,009,345

17,866,198

18,675,214

 Savings

2,913,027

3,088,174

3,363,236

3,555,911

3,720,218

 Time deposits

7,660,868

7,123,893

4,328,388

3,606,093

3,388,658

Total deposits

38,468,912

38,934,793

38,904,048

38,372,354

39,600,886

Securities sold under agreement to repurchase

827,055

774,170

727,975

660,974

655,223

Other short-term borrowings

3,510,942

3,541,985

3,326,196

3,251,947

1,608,587

Subordinated and long-term debt

449,568

455,617

462,385

462,927

464,843

Other liabilities

893,499

821,203

835,136

826,707

759,363

Total Liabilities

44,149,976

44,527,768

44,255,740

43,574,909

43,088,902

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,557

456,755

456,354

456,095

456,130

Capital surplus

2,726,686

2,717,866

2,710,501

2,701,121

2,689,340

Accumulated other comprehensive loss

(1,175,077)

(1,087,389)

(1,174,723)

(1,302,388)

(922,673)

Retained earnings

2,330,003

2,285,128

2,237,336

2,193,764

2,116,865

Total Shareholders' Equity

4,505,162

4,539,353

4,396,461

4,215,585

4,506,655

Total Liabilities & Shareholders' Equity

$    48,655,138

$    49,067,121

$    48,652,201

$    47,790,494

$    47,595,557

 

Table 6

Consolidated Statements of Income

(Unaudited)



Quarter Ended


Year-to-date

(Dollars in thousands, except per share data)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

INTEREST REVENUE:









Loans and leases

$     520,126

$     496,262

$     457,084

$     414,623

$     349,093


$  1,473,472

$     928,039

Available-for-sale securities:









Taxable

50,277

53,531

48,515

45,807

46,701


152,323

138,110

Tax-exempt

2,375

2,427

2,477

2,547

2,548


7,279

7,533

Loans held for sale

1,468

961

603

1,788

2,241


3,033

5,766

Short-term investments

21,272

20,238

17,453

8,783

4,976


58,962

7,596

Total interest revenue

595,518

573,419

526,132

473,548

405,559


1,695,069

1,087,044

INTEREST EXPENSE:









Interest bearing demand deposits and money market accounts

126,296

111,938

95,344

60,253

28,175


333,578

49,636

Savings

4,108

3,915

3,014

2,769

1,597


11,037

2,753

Time deposits

76,867

65,517

23,950

10,651

4,797


166,333

13,602

Federal funds purchased and securities sold under agreement to
repurchase

9,004

7,656

7,667

8,365

3,944


24,327

5,067

Short-term debt

45,438

46,036

37,015

27,302

6,822


128,490

9,562

Subordinated and long-term debt

4,786

4,806

4,872

4,848

4,870


14,464

14,482

Total interest expense

266,499

239,868

171,862

114,188

50,205


678,229

95,102

Net interest revenue

329,019

333,551

354,270

359,360

355,354


1,016,840

991,942

Provision for credit losses

17,000

15,000

10,000

6,000

—


42,000

1,000

Net interest revenue, after provision for credit losses

312,019

318,551

344,270

353,360

355,354


974,840

990,942










NONINTEREST REVENUE:









Mortgage banking

5,684

8,356

6,076

2,571

9,080


20,115

42,289

Credit card, debit card and merchant fees

12,413

12,617

11,851

15,750

14,497


36,882

42,410

Deposit service charges

16,867

17,208

16,482

16,863

19,134


50,557

56,615

Security gains (losses), net

64

69

(51,261)

(595)

(139)


(51,127)

211

Insurance commissions

44,989

45,603

39,606

34,679

39,876


130,198

115,596

Wealth management

21,079

21,741

21,532

19,199

19,335


64,351

61,286

Other noninterest income

17,901

26,696

29,785

26,406

22,708


74,382

59,753

Total noninterest revenue

118,997

132,290

74,071

114,873

124,491


325,358

378,160










NONINTEREST EXPENSE:









Salaries and employee benefits

194,812

190,854

195,702

183,918

191,193


581,368

561,106

Occupancy and equipment

28,343

29,590

29,113

30,539

30,610


87,046

89,008

Data processing and software

29,933

28,073

31,869

29,289

28,079


89,875

84,644

Merger expense

—

137

5,075

20,276

19,690


5,212

30,938

Amortization of intangibles

4,971

6,626

5,005

5,251

5,417


16,601

15,240

Deposit insurance assessments

10,425

7,705

8,361

5,931

4,499


26,491

12,781

Pension settlement expense

600

—

—

6,127

2,896


600

2,896

Other noninterest expense

43,183

40,893

44,154

59,340

37,350


128,231

100,676

Total noninterest expense

312,267

303,878

319,279

340,671

319,734


935,424

897,289

Income before income taxes

118,749

146,963

99,062

127,562

160,111


364,774

471,813

Income tax expense

26,166

32,935

22,433

29,628

36,713


81,534

106,510

Net income

92,583

114,028

76,629

97,934

123,398


283,240

365,303

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372


7,116

7,116

Net income available to common shareholders

$       90,211

$     111,656

$       74,257

$       95,562

$     121,026


$     276,124

$     358,187

Net income per common share: Diluted

$           0.49

$           0.61

$           0.40

$           0.52

$           0.66


$           1.50

$           1.94

 

Table 7

Selected Loan Portfolio Data

(Unaudited)



Quarter Ended

(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022

LOAN AND LEASE PORTFOLIO:






Commercial and industrial






Non-real estate

$      9,199,024

$      9,636,481

$      9,159,387

$      8,985,547

$      8,803,381

Owner occupied

4,361,530

4,358,000

4,278,468

4,068,659

3,943,442

Total commercial and industrial

13,560,554

13,994,481

13,437,855

13,054,206

12,746,823

Commercial real estate






Construction, acquisition and development

3,819,307

3,744,114

3,703,137

3,547,986

3,244,425

Income producing

5,720,606

5,596,134

5,368,676

5,150,680

5,098,470

Total commercial real estate

9,539,913

9,340,248

9,071,813

8,698,666

8,342,895

Consumer






Residential mortgages

9,186,179

8,989,614

8,536,032

8,319,242

7,924,378

Other consumer

233,947

232,365

236,894

277,163

282,354

Total consumer

9,420,126

9,221,979

8,772,926

8,596,405

8,206,732

Total loans and leases, net of unearned income

$    32,520,593

$    32,556,708

$    31,282,594

$    30,349,277

$    29,296,450







NON-PERFORMING ASSETS






Non-performing Loans and Leases






Nonaccrual Loans and Leases






Commercial and industrial






Non-real estate

$           67,962

$           72,592

$           65,783

$           23,907

$           23,916

Owner occupied

6,486

7,541

9,089

7,944

8,327

Total commercial and industrial

74,448

80,133

74,872

31,851

32,243

Commercial real estate






Construction, acquisition and development

4,608

4,496

1,850

2,974

1,823

Income producing

12,251

19,205

20,616

7,331

8,580

Total commercial real estate

16,859

23,701

22,466

10,305

10,403

Consumer






Residential mortgages

58,488

53,171

62,748

55,892

46,671

Other consumer

243

238

529

697

614

Total consumer

58,731

53,409

63,277

56,589

47,285

Total nonaccrual loans and leases

$         150,038

$         157,243

$         160,615

$           98,745

$           89,931







Loans and leases 90+ days past due, still accruing

9,152

4,412

5,164

2,068

11,984

Restructured loans and leases, still accruing

—

—

—

8,598

16,200

Total non-performing loans and leases

$         159,190

$         161,655

$         165,779

$         109,411

$         118,115







Other real estate owned and repossessed assets

2,927

2,857

5,327

6,725

8,376

Total non-performing assets

$         162,117

$         164,512

$         171,106

$         116,136

$         126,491







Additions to nonaccrual loans and leases during the quarter
(excluding acquisitions)

$           41,773

$           57,764

$           89,779

$           38,945

$           34,432

 

Table 8

Allowance for Credit Losses

(Unaudited)



Quarter Ended

(Dollars in thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022

ALLOWANCE FOR CREDIT LOSSES:






Balance, beginning of period

$      466,013

$      453,727

$      440,347

$      433,363

$      440,112

Charge-offs:






Commercial and industrial

(34,959)

(13,598)

(2,853)

(2,295)

(11,551)

Commercial real estate

(931)

(126)

(1,988)

(426)

(1,116)

Consumer

(1,608)

(1,916)

(2,189)

(2,650)

(2,653)

Total loans charged-off

(37,498)

(15,640)

(7,030)

(5,371)

(15,320)

Recoveries:






Commercial and industrial

2,240

1,360

3,399

6,405

3,657

Commercial real estate

201

618

779

2,851

3,509

Consumer

903

948

977

1,099

1,405

Total recoveries

3,344

2,926

5,155

10,355

8,571

Net (charge-offs) recoveries

(34,154)

(12,714)

(1,875)

4,984

(6,749)

Adoption of new ASU related to modified loans (3)

—

—

255

—

—

Provision for credit losses related to loans and leases

15,000

25,000

15,000

2,000

—

Total provision for loans and leases

15,000

25,000

15,000

2,000

—

Balance, end of period

$      446,859

$      466,013

$      453,727

$      440,347

$      433,363







Average loans and leases, net of unearned income, for period

$ 32,311,572

$ 31,901,096

$ 30,891,640

$ 29,812,924

$ 28,872,156

Ratio: Net charge-offs (recoveries) to average loans and leases (2)

0.42 %

0.16 %

0.02 %

(0.07) %

0.09 %







RESERVE FOR UNFUNDED COMMITMENTS (1)






Balance, beginning of period

$        13,551

$        23,551

$        28,551

$        24,551

$        24,551

Provision (reversal) for credit losses for unfunded commitments

2,000

(10,000)

(5,000)

4,000

—

Balance, end of period

$        15,551

$        13,551

$        23,551

$        28,551

$        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)



September 30, 2023

(In thousands)

Pass

Special
Mention

Substandard

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:







Commercial and industrial







Non-real estate

$      8,690,172

$        100,118

$        388,741

$          15,337

$             4,656

$     9,199,024

Owner occupied

4,281,916

30,414

46,803

1,275

1,122

4,361,530

Total commercial and industrial

12,972,088

130,532

435,544

16,612

5,778

13,560,554

Commercial real estate







Construction, acquisition and development

3,798,695

2,975

17,637

—

—

3,819,307

Income producing

5,519,028

65,473

124,731

11,374

—

5,720,606

Total commercial real estate

9,317,723

68,448

142,368

11,374

—

9,539,913

Consumer (1)







Residential mortgages

9,114,880

1,366

68,359

—

1,574

9,186,179

Other consumer

233,505

—

442

—

—

233,947

Total consumer

9,348,385

1,366

68,801

—

1,574

9,420,126

Total loans and leases, net of unearned income

$    31,638,196

$        200,346

$        646,713

$          27,986

$             7,352

$   32,520,593



(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 periods prior to the second quarter of 2023. As a result of the modification, current period results are not
directly comparable to periods prior to the second quarter of 2023.




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








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

 

Table 10

Geographical Loan Information

(Unaudited)



September 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

$    360,970

$       162,650

$       491,854

$      514,031

$      330,072

$      516,449

$         65,475

$       341,777

$    3,884,907

$   2,530,839

$    9,199,024

Owner occupied

351,835

252,880

284,886

319,982

288,640

594,127

92,167

164,564

1,660,831

351,618

4,361,530

Total commercial and industrial

712,805

415,530

776,740

834,013

618,712

1,110,576

157,642

506,341

5,545,738

2,882,457

13,560,554

Commercial real estate












Construction, acquisition and development

210,809

73,567

306,869

422,605

59,957

201,138

49,584

163,621

1,885,210

445,947

3,819,307

Income producing

427,591

275,663

374,452

634,494

217,475

423,473

193,555

328,808

2,047,954

797,141

5,720,606

Total commercial real estate

638,400

349,230

681,321

1,057,099

277,432

624,611

243,139

492,429

3,933,164

1,243,088

9,539,913

Consumer












Residential mortgages

1,204,991

388,592

634,059

405,382

459,661

1,138,245

175,973

720,227

3,799,189

259,860

9,186,179

Other consumer

31,446

18,075

5,188

7,268

11,360

86,899

1,706

16,914

50,039

5,052

233,947

Total consumer

1,236,437

406,667

639,247

412,650

471,021

1,225,144

177,679

737,141

3,849,228

264,912

9,420,126

Total loans and leases, net of
unearned income

$  2,587,642

$   1,171,427

$    2,097,308

$   2,303,762

$   1,367,165

$   2,960,331

$       578,460

$    1,735,911

$  13,328,130

$   4,390,457

$  32,520,593













Loan growth, excluding loans acquired
during the quarter ($)

$      (14,602)

$        12,160

$         (3,504)

$        29,586

$        32,312

$          7,060

$              901

$           4,127

$       133,358

$     (237,513)

$        (36,115)

Loan growth, excluding loans acquired
during the quarter (%) (annualized)

(2.23) %

4.16 %

(0.66) %

5.16 %

9.60 %

0.95 %

0.62 %

0.95 %

4.01 %

(20.36) %

(0.44) %














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

 

Table 11

Noninterest Revenue and Expense

(Unaudited)



Quarter Ended


Year-to-date

(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

NONINTEREST REVENUE:









Mortgage banking excl. MSR and MSR hedge market value adjustment

$        5,842

$        6,774

$        8,379

$        5,408

$        4,746


$      20,995

$      19,234

MSR and MSR hedge market value adjustment

(158)

1,582

(2,303)

(2,837)

4,334


(880)

23,055

Credit card, debit card and merchant fees

12,413

12,617

11,851

15,750

14,497


36,882

42,410

Deposit service charges

16,867

17,208

16,482

16,863

19,134


50,557

56,615

Security gains (losses), net

64

69

(51,261)

(595)

(139)


(51,127)

211

Insurance commissions

44,989

45,603

39,606

34,679

39,876


130,198

115,596

Trust income

10,574

10,084

10,553

9,113

9,011


31,211

28,201

Annuity fees

1,882

1,702

2,192

951

600


5,775

1,957

Brokerage commissions and fees

8,623

9,955

8,787

9,135

9,724


27,365

31,128

Bank-owned life insurance

4,108

3,811

3,647

5,436

3,537


11,566

10,158

Other miscellaneous income

13,793

22,885

26,138

20,970

19,171


62,816

49,595

Total noninterest revenue

$    118,997

$    132,290

$      74,071

$    114,873

$    124,491


$    325,358

$    378,160










NONINTEREST EXPENSE:









Salaries and employee benefits

$    194,812

$    190,854

$    195,702

$    183,918

$    191,193


$    581,368

$    561,106

Occupancy and equipment

28,343

29,590

29,113

30,539

30,610


87,046

89,008

Deposit insurance assessments

10,425

7,705

8,361

5,931

4,499


26,491

12,781

Pension settlement expense

600

—

—

6,127

2,896


600

2,896

Advertising and public relations

5,738

5,708

4,331

28,659

4,085


15,777

13,095

Foreclosed property expense

270

323

980

400

1,093


1,573

430

Telecommunications

1,702

1,541

1,717

1,714

1,882


4,960

5,699

Travel and entertainment

3,287

3,898

3,508

5,310

4,149


10,693

10,372

Data processing and software

29,933

28,073

31,869

29,289

28,079


89,875

84,644

Professional, consulting and outsourcing

5,163

5,519

4,417

3,598

2,724


15,099

10,231

Amortization of intangibles

4,971

6,626

5,005

5,251

5,417


16,601

15,240

Legal

3,592

1,908

1,491

758

2,054


6,991

5,310

Merger expense

—

137

5,075

20,276

19,690


5,212

30,938

Postage and shipping

2,421

2,070

2,452

1,925

2,098


6,943

6,154

Other miscellaneous expense

21,010

19,926

25,258

16,976

19,265


66,195

49,385

Total noninterest expense

$    312,267

$    303,878

$    319,279

$    340,671

$    319,734


$    935,424

$    897,289










INSURANCE COMMISSIONS:









Property and casualty commissions

$      35,016

$      34,273

$      28,202

$      24,682

$      30,021


$      97,491

$      85,093

Life and health commissions

7,172

7,847

8,024

7,151

7,254


23,043

22,332

Risk management income

659

703

657

887

654


2,018

2,085

Other

2,142

2,780

2,723

1,959

1,947


7,646

6,086

Total insurance commissions

$      44,989

$      45,603

$      39,606

$      34,679

$      39,876


$    130,198

$    115,596

 

Table 12

Average Balance and Yields

(Unaudited)



Quarter Ended


September 30, 2023


June 30, 2023


September 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

$ 32,311,572

$   513,989

6.31 %


$  31,901,096

$   491,473

6.17 %


$ 28,872,156

$   341,334

4.69 %

Accretion income on acquired loans


6,587

0.08



5,207

0.07



8,134

0.11

Loans held for sale

115,653

1,468

5.04


67,038

961

5.75


103,312

2,241

8.61

Investment securities












Taxable

9,635,084

50,277

2.07


10,272,425

53,531

2.09


12,833,857

46,701

1.44

Tax-exempt

369,357

3,006

3.23


383,366

3,072

3.21


418,971

3,225

3.05

Total investment securities

10,004,441

53,283

2.11


10,655,791

56,603

2.13


13,252,828

49,926

1.49

Other investments

1,574,134

21,272

5.36


1,607,830

20,238

5.05


851,185

4,976

2.32

Total interest-earning assets

44,005,800

596,599

5.38 %


44,231,755

574,482

5.21 %


43,079,481

406,611

3.74 %

Other assets

5,109,036




5,292,393




4,957,118



Allowance for credit losses

459,698




457,027




441,042



Total assets

$ 48,655,138




$  49,067,121




$ 47,595,557















LIABILITIES AND SHAREHOLDERS' EQUITY












Interest-bearing liabilities:












Interest bearing demand and money market

$ 17,970,463

$   126,296

2.79 %


$  17,997,618

$   111,938

2.49 %


$ 18,675,214

28,175

0.60 %

Savings deposits

2,913,027

4,108

0.56


3,088,174

3,915

0.51


3,720,218

1,597

0.17

Time deposits

7,660,868

76,867

3.98


7,123,893

65,517

3.69


3,388,658

4,797

0.56

Total interest-bearing deposits

28,544,358

207,271

2.88


28,209,685

181,370

2.58


25,784,090

34,569

0.53

Fed funds purchased, securities
sold under agreement to
repurchase and other

$      837,773

$       9,007

4.27


$       774,170

$       7,658

3.97


$     946,419

3,944

1.65

Short-term FHLB borrowings

224

2

3.54


2,388,139

31,219

5.24


1,317,391

6,822

2.05

  Short-term BTFP borrowings

3,500,000

45,433

5.15


1,153,846

14,815

5.15


—

—

—

Long-term borrowings

449,568

4,786

4.22


455,617

4,806

4.23


464,843

4,870

4.16

Total interest-bearing liabilities

33,331,923

266,499

3.17 %


32,981,457

239,868

2.92 %


28,512,743

50,205

0.70 %

Noninterest-bearing liabilities:












Demand deposits

9,924,554




10,725,108




13,816,796



Other liabilities

893,499




821,203




759,363



Total liabilities

44,149,976




44,527,768




43,088,902



Shareholders' equity

4,505,162




4,539,353




4,506,655



Total liabilities and shareholders' equity

$ 48,655,138




$  49,067,121




$ 47,595,557



Net interest income/net interest spread


330,100

2.21 %



334,614

2.29 %



356,406

3.05 %

Net yield on earning assets/net interest margin



2.98 %




3.03 %




3.28 %

Taxable equivalent adjustment:












Loans and investment securities


(1,081)




(1,063)




(1,052)


Net interest revenue


$   329,019




$   333,551




$   355,354


 

Table 12

Average Balance and Yields Cont.



For the Nine Months Ended


September 30, 2023


September 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

$   31,706,637

$   1,452,912

6.13 %


$   27,948,795

$      891,585

4.27 %

Accretion income on acquired loans


21,822

0.09



37,592

0.18

Loans held for sale

76,770

3,033

5.28


142,152

5,766

5.42

Investment securities








Taxable

10,283,587

152,323

1.98


13,633,964

138,110

1.35

Tax-exempt

383,031

9,214

3.22


447,538

9,536

2.85

Total investment securities

10,666,618

161,537

2.02


14,081,502

147,646

1.40

Other investments

1,569,747

58,962

5.02


920,337

7,596

1.10

Total interest-earning assets

44,019,772

1,698,266

5.16 %


43,092,786

1,090,185

3.38 %

Other assets

5,224,858




4,795,001



Allowance for credit losses

453,133




441,351



Total assets

$   48,791,497




$   47,446,436











LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing liabilities:








Interest bearing demand and money market

$   18,322,003

333,578

2.43 %


$   18,768,943

$        49,636

0.35 %

Savings deposits

3,119,830

11,037

0.47


3,692,027

2,753

0.10

Time deposits

6,383,257

166,333

3.48


3,524,949

13,602

0.52

Total interest-bearing deposits

27,825,090

510,948

2.46


25,985,919

65,991

0.34

Fed funds purchased, securities sold under agreement to repurchase and other

814,943

24,334

3.99


867,676

5,069

0.78

Short-term FHLB borrowings

1,858,102

68,235

4.91


821,062

9,560

1.56

Short-term BTFP borrowings

1,564,103

60,248

5.15


—

—

—

Long-term borrowings

455,810

14,464

4.24


465,704

14,482

4.16

Total interest-bearing liabilities

32,518,048

678,229

2.79 %


28,140,361

95,102

0.45 %

Noninterest-bearing liabilities:








Demand deposits

10,942,567




13,864,554



Other liabilities

850,159




746,197



Total liabilities

44,310,774




42,751,112



Shareholders' equity

4,480,723




4,695,324



Total liabilities and shareholders' equity

$   48,791,497




$   47,446,436



Net interest income/net interest spread


1,020,037

2.37 %



995,083

2.93 %

Net yield on earning assets/net interest margin



3.10 %




3.09 %

Taxable equivalent adjustment:








Loans and investment securities


(3,197)




(3,141)


Net interest revenue


$   1,016,840




$      991,942


 

Table 13

Selected Additional Data

(Unaudited)



Quarter Ended

(Dollars in thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022

MORTGAGE SERVICING RIGHTS ("MSR"):






Fair value, beginning of period

$          111,417

$         106,942

$         109,744

$         112,767

$         102,021

Originations of servicing assets

4,065

1,990

1,385

2,283

3,890

Changes in fair value:






Due to payoffs/paydowns

(2,104)

(2,621)

(1,078)

(2,308)

(3,085)

Due to update in valuation assumptions

2,888

5,106

(3,109)

(2,998)

9,941

Fair value, end of period

$          116,266

$          111,417

$         106,942

$         109,744

$         112,767







MORTGAGE BANKING REVENUE:






Origination

$              2,031

$             3,495

$             3,344

$             1,793

$             1,916

Servicing

5,915

5,900

6,113

5,923

5,915

Payoffs/Paydowns

(2,104)

(2,621)

(1,078)

(2,308)

(3,085)

Total mortgage banking revenue excluding MSR

5,842

6,774

8,379

5,408

4,746

Market value adjustment on MSR

2,888

5,106

(3,109)

(2,998)

9,941

Market value adjustment on MSR Hedge

(3,046)

(3,524)

806

161

(5,607)

Total mortgage banking revenue

$              5,684

$             8,356

$             6,076

$             2,571

$             9,080







Mortgage loans serviced

$       7,643,885

$      7,550,676

$      7,633,236

$      7,692,744

$      7,723,605

MSR/mortgage loans serviced

1.52 %

1.48 %

1.40 %

1.43 %

1.46 %








Quarter Ended

(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022

AVAILABLE-FOR-SALE SECURITIES, at fair value






U.S. Treasury securities

$              1,996

$             8,959

$           15,849

$      1,458,513

$      1,451,461

Obligations of U.S. government agencies

1,004,374

1,112,326

1,358,350

1,477,127

1,820,913

Mortgage-backed securities issued or guaranteed by U.S. agencies ("MBS"):






Residential pass-through:






Guaranteed by GNMA

73,649

79,261

83,649

84,368

87,063

Issued by FNMA and FHLMC

5,541,895

5,895,704

6,164,294

6,274,970

6,427,152

Other residential mortgage-back securities

146,063

157,294

166,449

168,452

181,317

Commercial mortgage-backed securities

2,271,680

2,357,047

2,427,808

1,881,853

1,880,949

Total MBS

8,033,287

8,489,306

8,842,200

8,409,643

8,576,481

Obligations of states and political subdivisions

392,252

433,316

447,731

466,002

444,953

Other domestic debt securities

71,741

71,356

73,557

82,718

98,615

Foreign debt securities

139,581

139,317

140,192

50,093

49,471

Total available-for-sale securities

$       9,643,231

$    10,254,580

$    10,877,879

$    11,944,096

$    12,441,894

 

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)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

Adjusted net income available to common shareholders









Net income

$         92,583

$      114,028

$        76,629

$        97,934

$      123,398


$      283,240

$      365,303

Plus: Merger expense

—

137

5,075

20,276

19,690


5,212

30,938

Incremental merger related expense

—

1,671

8,960

32,704

6,912


10,631

19,543

Gain on extinguishment of debt

—

(1,140)

—

—

—


(1,140)

—

Restructuring and other nonroutine expenses

10,649

6,219

212

2,254

6


17,080

839

Pension settlement expense

600

—

—

6,127

2,896


600

2,896

Less:   Security gains (losses), net

64

69

(51,261)

(595)

(139)


(51,127)

211

Nonroutine gains (losses), net

(6,653)

—

—

—

—


(6,653)

—

Tax adjustment

4,190

1,602

15,394

14,665

7,016


21,186

12,783

Adjusted net income

106,231

119,244

126,743

145,225

146,025


352,217

406,525

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372


7,116

7,116

Adjusted net income available to common shareholders

$       103,859

$      116,872

$      124,371

$      142,853

$      143,653


$      345,101

$      399,409



Quarter Ended


Year-to-date

(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

Pre-tax pre-provision net revenue









Net income

$         92,583

$      114,028

$        76,629

$        97,934

$      123,398


$      283,240

$      365,303

Plus:   Provision for credit losses

17,000

15,000

10,000

6,000

—


42,000

1,000

Income tax expense

26,166

32,935

22,433

29,628

36,713


81,534

106,510

Pre-tax pre-provision net revenue

$       135,749

$      161,963

$      109,062

$      133,562

$      160,111


$      406,774

$      472,813



Quarter Ended


Year-to-date

(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

Adjusted pre-tax pre-provision net revenue









Net income

$         92,583

$      114,028

$        76,629

$        97,934

$      123,398


$      283,240

$      365,303

Plus:   Provision for credit losses

17,000

15,000

10,000

6,000

—


42,000

1,000

Merger expense

—

137

5,075

20,276

19,690


5,212

30,938

Incremental merger related expense

—

1,671

8,960

32,704

6,912


10,631

19,543

Gain on extinguishment of debt

—

(1,140)

—

—

—


(1,140)

—

Restructuring and other nonroutine expenses

10,649

6,219

212

2,254

6


17,080

839

Pension settlement expense

600

—

—

6,127

2,896


600

2,896

Income tax expense

26,166

32,935

22,433

29,628

36,713


81,534

106,510

Less:   Security gains (losses), net

64

69

(51,261)

(595)

(139)


(51,127)

211

Nonroutine gains (losses), net

$          (6,653)

$               —

$               —

$               —

$               —


(6,653)

—

Adjusted pre-tax pre-provision net revenue

$       153,587

$      168,781

$      174,570

$      195,518

$      189,754


$      496,937

$      526,818



Quarter Ended


Year-to-date

(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

Total adjusted noninterest revenue









Total noninterest revenue

$       118,997

$      132,290

$        74,071

$      114,873

$      124,491


$      325,358

$      378,160

Less:   Security gains (losses), net

64

69

(51,261)

(595)

(139)


(51,127)

211

Nonroutine gains (losses), net

(6,653)

—

—

—

—


(6,653)

—

Total adjusted noninterest revenue

$       125,586

$      132,221

$      125,332

$      115,468

$      124,630


$      383,138

$      377,949



Quarter Ended


Year-to-date

(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

Total adjusted noninterest expense









Total noninterest expense

$       312,267

$      303,878

$      319,279

$      340,671

$      319,734


$      935,424

$      897,289

Less:   Merger expense

—

137

5,075

20,276

19,690


5,212

30,938

Incremental merger related expense

—

1,671

8,960

32,704

6,912


10,631

19,543

Gain on extinguishment of debt

—

(1,140)

—

—

—


(1,140)

—

Restructuring and other nonroutine expenses

10,649

6,219

212

2,254

6


17,080

839

Pension settlement expense

600

—

—

6,127

2,896


600

2,896

Total adjusted noninterest expense

$       301,018

$      296,991

$      305,032

$      279,310

$      290,230


$      903,041

$      843,073



Quarter Ended


Year-to-date

(In thousands)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

Total tangible assets, excluding AOCI









Total assets

$  48,523,010

$  48,838,660

$  51,693,096

$  48,653,414

$  47,699,660


$  48,523,010

$   47,699,660

Less:  Goodwill

1,459,302

1,459,302

1,459,302

1,458,795

1,449,511


1,459,302

1,449,511

Other identifiable intangible assets

114,127

119,098

125,724

132,764

132,953


114,127

132,953

Total tangible assets

46,949,581

47,260,260

50,108,070

47,061,855

46,117,196


46,949,581

46,117,196

Less: AOCI

(1,309,921)

(1,163,075)

(1,081,886)

(1,222,538)

(1,297,812)


(1,309,921)

(1,297,812)

Total tangible assets, excluding AOCI

$  48,259,502

$  48,423,335

$  51,189,956

$  48,284,393

$  47,415,008


$  48,259,502

$   47,415,008



Quarter Ended


Year-to-date

(Dollars in thousands, except per share data)

Sep 2023

Jun 2023

Mar 2023

Dec 2022

Sep 2022


Sep 2023

Sep 2022

PERIOD END BALANCES:









Total shareholders' equity, excluding AOCI









Total shareholders' equity

$    4,395,257

$     4,485,850

$     4,490,417

$     4,311,374

$     4,166,925


$     4,395,257

$     4,166,925

Less: AOCI

(1,309,921)

(1,163,075)

(1,081,886)

(1,222,538)

(1,297,812)


(1,309,921)

(1,297,812)

Total shareholders' equity, excluding AOCI

$5,705,178

$     5,648,925

$     5,572,303

$     5,533,912

$     5,464,737


$     5,705,178

$     5,464,737










Common shareholders' equity, excluding AOCI









Total shareholders' equity

$    4,395,257

$     4,485,850

$     4,490,417

$     4,311,374

$     4,166,925


$     4,395,257

$     4,166,925

Less: preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Common shareholders' equity

4,228,264

4,318,857

4,323,424

4,144,381

3,999,932


4,228,264

3,999,932

Less: AOCI

(1,309,921)

(1,163,075)

(1,081,886)

(1,222,538)

(1,297,812)


(1,309,921)

(1,297,812)

Common shareholders' equity, excluding AOCI

$    5,538,185

$     5,481,932

$     5,405,310

$     5,366,919

$     5,297,744


$     5,538,185

$     5,297,744










Total tangible common shareholders' equity, excluding AOCI









Total shareholders' equity

$    4,395,257

$     4,485,850

$     4,490,417

$     4,311,374

$     4,166,925


$     4,395,257

$     4,166,925

Less:  Goodwill

1,459,302

1,459,302

1,459,302

1,458,795

1,449,511


1,459,302

1,449,511

Other identifiable intangible assets

114,127

119,098

125,724

132,764

132,953


114,127

132,953

Preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Total tangible common shareholders' equity

2,654,835

2,740,457

2,738,398

2,552,822

2,417,468


2,654,835

2,417,468

Less: AOCI

(1,309,921)

(1,163,075)

(1,081,886)

(1,222,538)

(1,297,812)


(1,309,921)

(1,297,812)

Total tangible common shareholders' equity, excluding AOCI

$    3,964,756

$     3,903,532

$     3,820,284

$     3,775,360

$     3,715,280


$     3,964,756

$     3,715,280










AVERAGE BALANCES:









Total tangible common shareholders' equity









Total shareholders' equity

$4,505,162

$4,539,353

$4,396,461

$4,215,585

$4,506,655


$4,480,723

$4,695,324

Less:   Goodwill

1,459,302

1,459,302

1,459,127

1,457,120

1,444,331


1,459,244

1,420,052

Other identifiable intangible assets

116,715

123,313

128,957

132,091

136,149


122,950

173,333

Preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Total tangible common shareholders' equity

$2,762,152

$2,789,745

$2,641,384

$2,459,381

$2,759,182


$2,731,536

$2,934,946










Total average assets

$48,655,138

$49,067,121

$48,652,201

$47,790,494

$47,595,557


$48,791,497

$47,446,436

Total shares of common stock outstanding

182,611,075

182,626,229

182,684,578

182,437,265

182,438,780


182,611,075

182,438,780

Average shares outstanding-diluted

184,645,004

183,631,570

183,908,798

183,762,008

183,313,831


184,062,368

184,747,880










Tangible common shareholders' equity to tangible assets (1)

5.65 %

5.80 %

5.46 %

5.42 %

5.24 %


5.65 %

5.24 %

Tangible common shareholders' equity to tangible assets,
excluding AOCI (2)

8.22

8.06

7.46

7.82

7.84


8.22

7.84

Return on average tangible common equity (3)

12.96

16.05

11.40

15.42

17.40


13.52

16.32

Adjusted return on average tangible common equity (4)

14.92

16.80

19.10

23.04

20.66


16.89

18.19

Adjusted return on average assets (5)

0.87

0.97

1.06

1.21

1.22


0.97

1.15

Adjusted return on average common shareholders' equity (6)

9.50

10.72

11.93

14.00

13.13


10.70

11.79

Pre-tax pre-provision net revenue to total average assets (7)

1.11

1.32

0.91

1.11

1.33


1.11

1.33

Adjusted pre-tax pre-provision net revenue to total average assets (8)

1.25

1.38

1.46

1.62

1.58


1.36

1.48

Tangible book value per common share (9)

$      14.54

$      15.01

$      14.99

$      13.99

$      13.25


$      14.54

$       13.25

Tangible book value per common share, excluding AOCI (10)

21.71

21.37

20.91

20.69

20.36


21.71

20.36

Adjusted earnings per common share (11)

$        0.56

$        0.64

$        0.68

$        0.78

$        0.78


$        1.87

$        2.16

Adjusted dividend payout ratio (12)

41.96 %

36.72 %

34.56 %

28.21 %

28.21 %


37.70 %

30.56 %

 

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