($ in thousands except per share amounts) | GAAP / As Reported |
Non-GAAP / As Adjusted1
| ||||||||||
June 30, 2020 | June 30, 2021 | Change % / bps | June 30, 2020 | June 30, 2021 | Change % / bps | |||||||
Total assets | $ | 30,839,893 | $ | 29,143,918 | (5.5) | % | $ | 30,839,893 | $ | 29,143,918 | (5.5) | % |
Total portfolio loans, gross | 22,295,267 | 20,724,097 | (7.0) | 22,295,267 | 20,724,097 | (7.0) | ||||||
Total deposits | 23,600,621 | 23,146,711 | (1.9) | 23,600,621 | 23,146,711 | (1.9) | ||||||
PPNR1, 2
| 114,508 | 128,112 | 11.9 | 113,832 | 124,727 | 9.6 | ||||||
Net income available to common | 48,820 | 96,380 | 97.4 | 56,926 | 100,509 | 76.6 | ||||||
Diluted EPS available to common | 0.25 | 0.50 | 100.0 | 0.29 | 0.52 | 79.3 | ||||||
Net interest margin | 3.15 | % | 3.38 | % | 23 | 3.20 | % | 3.42 | % | 22 | ||
Tangible book value per common share1
| $ | 13.17 | $ | 14.62 | 11.0 | $ | 13.17 | $ | 14.62 | 11.0 |
($ in thousands except per share amounts) | GAAP / As Reported |
Non-GAAP / As Adjusted1
| ||||||||
March 31, 2021 | June 30, 2021 | Change % / bps | March 31, 2021 | June 30, 2021 | Change % / bps | |||||
PPNR1, 2
| $ | 132,105 | $ | 128,112 | (3.0) | $ | 123,895 | $ | 124,727 | 0.7 |
Net income available to common | 97,187 | 96,380 | (0.8) | 97,603 | 100,509 | 3.0 | ||||
Diluted EPS available to common | 0.50 | 0.50 | - | 0.51 | 0.52 | 2.0 | ||||
Net interest margin | 3.38 | % | 3.38 | % | - | 3.43 | % | 3.42 | % | (1) |
Operating efficiency ratio3
| 47.2 | 48.5 | 130 | 44.3 | 44.1 | (20) | ||||
Allowance for credit losses ('ACL') - loans | $ | 323,186 | $ | 314,873 | (2.6) | $ | 323,186 | $ | 314,873 | (2.6) |
ACL to portfolio loans | 1.53 | % | 1.52 | % | (1) | 1.53 | % | 1.52 | % | (1) |
ACL to NPLs | 191.7 | 181.7 | (10) | 191.7 | 181.7 | (10) | ||||
Tangible book value per common share1
| $ | 14.08 | $ | 14.62 | 3.8 | $ | 14.08 | $ | 14.62 | 3.8 |
1. Non-GAAP / as adjusted measures are defined in the non-GAAP tables beginning on page 20.
|
2. PPNR represents pretax pre-provision net revenue. PPNR and PPNR excluding accretion income are non-GAAP measures and are measured as net interest income plus non-interest income less operating expenses before tax.
|
3. Operating efficiency ratio is a non-GAAP measure. See page 25. for an explanation of the operating efficiency ratio.
|
Non-GAAP financial measures include the terms 'adjusted' or 'excluding'. See the reconciliation of the Company's non-GAAP financial measures beginning on page 20.
|
($ in thousands) | For the three months ended | Change % / bps | ||||||||
June 30, 2020 | March 31, 2021 | June 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Interest and dividend income | $ | 253,226 | $ | 233,847 | $ | 230,310 | (9.0) | % | (1.5) | % |
Interest expense | 39,927 | 15,933 | 11,783 | (70.5) | (26.0) | |||||
Net interest income | $ | 213,299 | $ | 217,914 | $ | 218,527 | 2.5 | 0.3 | ||
Accretion income on acquired loans | $ | 10,086 | $ | 8,272 | $ | 7,812 | (22.5) | % | (5.6) | % |
Yield on loans | 4.03 | % | 3.92 | % | 3.88 | % | (15) | (4) | ||
Tax equivalent yield on investment securities4
| 3.05 | 3.02 | 2.84 | (21) | (18) | |||||
Tax equivalent yield on interest earning assets4
| 3.79 | 3.68 | 3.61 | (18) | (7) | |||||
Cost of total deposits | 0.48 | 0.15 | 0.11 | (37) | (4) | |||||
Cost of interest bearing deposits | 0.61 | 0.20 | 0.15 | (46) | (5) | |||||
Cost of borrowings | 2.26 | 3.97 | 3.87 | 161 | (10) | |||||
Cost of interest bearing liabilities | 0.78 | 0.34 | 0.26 | (52) | (8) | |||||
Total cost of funding liabilities5
| 0.63 | 0.27 | 0.20 | (43) | (7) | |||||
Tax equivalent net interest margin6
| 3.20 | 3.43 | 3.42 | 22 | (1) | |||||
Average loans, including loans held for sale
| $ | 21,940,636 | $ | 21,294,550 | $ | 20,843,661 | (5.0) | % | (2.1) | % |
Average commercial loans
| 19,715,184 | 19,553,823 | 19,245,641 | (2.4) | (1.6) | |||||
Average investment securities
| 4,630,056 | 4,054,978 | 4,322,126 | (6.7) | 6.6 | |||||
Average cash balances
| 455,626 | 648,178 | 651,271 | 42.9 | 0.5 | |||||
Average total interest earning assets
| 27,240,114 | 26,149,732 | 25,968,935 | (4.7) | (0.7) | |||||
Average deposits and mortgage escrow
| 23,463,937 | 23,546,928 | 23,516,675 | 0.2 | (0.1) |
($ in thousands) | For the three months ended | Change % | ||||||||
June 30, 2020 | March 31, 2021 | June 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Deposit fees and service charges | $ | 5,345 | $ | 6,563 | $ | 7,096 | 32.8 | % | 8.1 | % |
Accounts receivable management / factoring commissions and other related fees | 4,419 | 5,426 | 5,491 | 24.3 | % | 1.2 | % | |||
Bank owned life insurance ('BOLI') | 4,950 | 4,955 | 4,981 | 0.6 | % | 0.5 | % | |||
Loan commissions and fees | 8,003 | 10,477 | 8,762 | 9.5 | % | (16.4) | % | |||
Investment management fees | 1,379 | 1,852 | 2,018 | 46.3 | % | 9.0 | % | |||
Net gain (loss) on sale of securities | 485 | 719 | (80) | (116.5) | % | NM | ||||
Other | 1,509 | 2,364 | 1,946 | 29.0 | % | (17.7) | % | |||
Total non-interest income | 26,090 | 32,356 | 30,214 | 15.8 | % | (6.6) | % | |||
Net gain (loss) on sale of securities | 485 | 719 | (80) | (116.5) | % | NM | ||||
Adjusted non-interest income | $ | 25,605 | $ | 31,637 | $ | 30,294 | 18.3 | % | (4.2) | % |
($ in thousands) | For the three months ended | Change % / bps | ||||||||
June 30, 2020 | March 31, 2021 | June 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Compensation and benefits | $ | 54,668 | $ | 58,087 | $ | 56,953 | 4.2 | % | (2.0) | % |
Stock-based compensation plans | 5,913 | 6,617 | 6,781 | 14.7 | 2.5 | |||||
Occupancy and office operations | 14,695 | 14,515 | 13,875 | (5.6) | (4.4) | |||||
Information technology
| 7,312 | 9,246 | 9,741 | 33.2 | 5.4 | |||||
Professional fees | 5,458 | 7,077 | 7,561 | 38.5 | 6.8 | |||||
Amortization of intangible assets
| 4,200 | 3,776 | 3,776 | (10.1) | - | |||||
FDIC insurance and regulatory assessments
| 3,638 | 3,230 | 2,344 | (35.6) | (27.4) | |||||
Other real estate owned ('OREO'), net
| 1,233 | (68) | (72) | NM | NM | |||||
Merger-related expenses | - | - | 2,481 | NM | NM | |||||
Impairment related to financial centers and real estate consolidation strategy | - | 633 | 475 | NM | (25.0) | |||||
Loss on extinguishment of borrowings
| 9,723 | - | 1,243 | (87.2) | NM | |||||
Other expenses
| 18,041 | 15,052 | 15,471 | (14.2) | 2.8 | |||||
Total non-interest expense
| $ | 124,881 | $ | 118,165 | $ | 120,629 | (3.4) | 2.1 | ||
Full time equivalent employees ('FTEs') at period end
| 1,617 | 1,457 | 1,491 | (7.8) | 2.3 | |||||
Financial centers at period end | 78 | 75 | 73 | (6.4) | (2.7) | |||||
Operating efficiency ratio, as reported7
| 52.2 | % | 47.2 | % | 48.5 | % | (370) | 130 | ||
Operating efficiency ratio, as adjusted7
| 45.1 | 44.3 | 44.1 | (100) | (20) | |||||
7. See a reconciliation of non-GAAP financial measures beginning on page 20.
|
($ in thousands) | As of | Change % / bps | ||||||||
June 30, 2020 | March 31, 2021 | June 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Total assets | $ | 30,839,893 | $ | 29,914,282 | $ | 29,143,918 | (5.5) | % | (2.6) | % |
Total portfolio loans, gross | 22,295,267 | 21,151,973 | 20,724,097 | (7.0) | (2.0) | |||||
Commercial & industrial ('C&I') loans
| 9,166,744 | 8,451,614 | 8,335,044 | (9.1) | (1.4) | |||||
Commercial real estate loans (including multi-family)
| 10,402,897 | 10,421,132 | 10,143,157 | (2.5) | (2.7) | |||||
Acquisition, development and construction ('ADC') loans
| 572,558 | 618,295 | 690,224 | 20.6 | 11.6 | |||||
Total commercial loans | 20,142,199 | 19,491,041 | 19,168,425 | (4.8) | (1.7) | |||||
Residential mortgage loans | 1,938,212 | 1,486,597 | 1,389,294 | (28.3) | (6.5) | |||||
Loan portfolio composition: | ||||||||||
Commercial & industrial ('C&I') loans
| 41.1 | % | 40.0 | % | 40.2 | % | (90) | 20 | ||
Commercial real estate loans (including multi-family)
| 46.6 | 49.3 | 49.0 | 240 | (30) | |||||
Acquisition, development and construction ('ADC') loans
| 2.6 | 2.9 | 3.3 | 70 | 40 | |||||
Residential and consumer | 9.7 | 7.8 | 7.5 | (220) | (30) | |||||
BOLI | $ | 620,908 | $ | 630,430 | $ | 635,411 | 2.3 | 0.8 | ||
Core deposits9
| 21,904,429 | 22,216,035 | 22,603,302 | 3.2 | 1.7 | |||||
Total deposits | 23,600,621 | 23,841,718 | 23,146,711 | (1.9) | (2.9) | |||||
Municipal deposits (included in core deposits) | 1,724,049 | 2,047,349 | 1,844,719 | 7.0 | (9.9) | |||||
Investment securities, net | 4,545,579 | 4,241,457 | 4,366,470 | (3.9) | 2.9 | |||||
Investment securities, net to earning assets
| 16.7 | % | 16.5 | % | 17.2 | % | 50 | 70 | ||
Total borrowings | $ | 2,014,259 | $ | 667,499 | $ | 518,021 | (74.3) | (22.4) | ||
Loans to deposits | 94.5 | % | 88.7 | % | 89.5 | % | (500) | 80 | ||
Core deposits9 to total deposits
| 92.8 | 93.2 | 97.7 | 490 | 450 |
($ in thousands) | For the three months ended | Change % / bps | ||||||||
June 30, 2020 | March 31, 2021 | June 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Provision for credit losses - loans | $ | 56,606 | $ | 10,000 | $ | 6,000 | (89.4) | % | (40.0) | % |
Net charge-offs | 17,561 | 12,914 | 14,313 | (18.5) | 10.8 | |||||
ACL - loans | 365,489 | 323,186 | 314,873 | (13.8) | (2.6) | |||||
Loans 30 to 89 days past due, accruing | 66,268 | 42,165 | 39,476 | (40.4) | (6.4) | |||||
Non-performing loans
| 260,605 | 168,557 | 173,319 | (33.5) | 2.8 | |||||
Annualized net charge-offs to average loans
| 0.32 | % | 0.25 | % | 0.28 | % | (4) | 3 | ||
Special mention loans | $ | 141,805 | $ | 494,452 | $ | 388,535 | 174.0 | (21.4) | ||
Substandard loans | 415,917 | 590,109 | 611,805 | 47.1 | 3.7 | |||||
Total criticized and classified loans | 557,722 | 1,084,856 | 1,004,940 | 80.2 | (7.4) | |||||
ACL - loans to total loans
| 1.64 | % | 1.53 | % | 1.52 | % | (12) | (1) | ||
ACL - loans to non-performing loans
| 140.2 | 191.7 | 181.7 | 4,150 | (1,000) |
($ in thousands, except share and per share data)
| As of | Change % / bps | ||||||||
June 30, 2020 | March 31, 2021 | June 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Total stockholders' equity | $ | 4,484,187 | $ | 4,620,164 | $ | 4,722,856 | 5.3 | % | 2.2 | % |
Preferred stock
| 137,142 | 136,458 | 136,224 | (0.7) | (0.2) | |||||
Goodwill and other intangible assets
| 1,785,446 | 1,773,270 | 1,769,494 | (0.9) | (0.2) | |||||
Tangible common stockholders' equity 10
| $ | 2,561,599 | $ | 2,710,436 | $ | 2,817,138 | 10.0 | 3.9 | ||
Common shares outstanding | 194,458,805 | 192,567,901 | 192,715,433 | (0.9) | 0.1 | |||||
Book value per common share | $ | 22.35 | $ | 23.28 | $ | 23.80 | 6.5 | 2.2 | ||
Tangible book value per common share 10
| 13.17 | 14.08 | 14.62 | 11.0 | 3.8 | |||||
Tangible common equity as a % of tangible assets 10
| 8.82 | % | 9.63 | % | 10.29 | % | 147 | 66 | ||
Est. Tier 1 leverage ratio - Company | 9.51 | 10.50 | 10.91 | 140 | 41 | |||||
Est. Tier 1 leverage ratio - Company fully implemented | 9.14 | 10.15 | 10.55 | 141 | 40 | |||||
Est. Tier 1 leverage ratio - Bank
| 10.09 | 11.76 | 12.10 | 201 | 34 | |||||
Est. Tier 1 leverage ratio - Bank fully implemented | 9.69 | 11.42 | 11.74 | 205 | 32 | |||||
10 See a reconciliation of non-GAAP financial measures beginning on page 20.
|
June 30, 2020 | December 31, 2020 | June 30, 2021 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | 324,729 | $ | 305,002 | $ | 487,409 |
Investment securities, net | 4,545,579 | 4,039,456 | 4,366,470 | |||
Loans held for sale | 44,437 | 11,749 | 19,088 | |||
Portfolio loans: | ||||||
Commercial and industrial ('C&I') | 9,166,744 | 9,160,268 | 8,335,044 | |||
Commercial real estate (including multi-family) | 10,402,897 | 10,238,650 | 10,143,157 | |||
Acquisition, development and construction ('ADC') loans | 572,558 | 642,943 | 690,224 | |||
Residential mortgage | 1,938,212 | 1,616,641 | 1,389,294 | |||
Consumer | 214,856 | 189,907 | 166,378 | |||
Total portfolio loans, gross | 22,295,267 | 21,848,409 | 20,724,097 | |||
ACL - loans | (365,489) | (326,100) | (314,873) | |||
Total portfolio loans, net | 21,929,778 | 21,522,309 | 20,409,224 | |||
FHLB and Federal Reserve Bank Stock, at cost
| 193,666 | 166,190 | 151,443 | |||
Accrued interest receivable | 101,296 | 97,505 | 96,728 | |||
Premises and equipment, net | 226,728 | 202,555 | 204,632 | |||
Goodwill | 1,683,482 | 1,683,482 | 1,683,482 | |||
Other intangibles | 101,964 | 93,564 | 86,012 | |||
BOLI | 620,908 | 629,576 | 635,411 | |||
Other real estate owned | 8,665 | 5,347 | 816 | |||
Other assets | 1,058,661 | 1,063,403 | 1,003,203 | |||
Total assets | $ | 30,839,893 | $ | 29,820,138 | $ | 29,143,918 |
Liabilities: | ||||||
Deposits | $ | 23,600,621 | $ | 23,119,522 | $ | 23,146,711 |
FHLB borrowings | 975,058 | 382,000 | - | |||
Federal Funds Purchased | - | 277,000 | - | |||
Paycheck Protection Program Lending Facility | 568,350 | - | - | |||
Other borrowings | 26,448 | 27,101 | 25,802 | |||
Subordinated notes - Company | 271,096 | 491,910 | 492,219 | |||
Subordinated notes - Bank | 173,307 | 143,703 | - | |||
Mortgage escrow funds | 69,686 | 59,686 | 66,521 | |||
Other liabilities | 671,140 | 728,702 | 689,809 | |||
Total liabilities | 26,355,706 | 25,229,624 | 24,421,062 | |||
Stockholders' equity: | ||||||
Preferred stock | 137,142 | 136,689 | 136,224 | |||
Common stock | 2,299 | 2,299 | 2,299 | |||
Additional paid-in capital | 3,755,474 | 3,761,993 | 3,753,068 | |||
Treasury stock | (660,223) | (686,911) | (696,711) | |||
Retained earnings | 1,160,885 | 1,291,628 | 1,459,077 | |||
Accumulated other comprehensive income | 88,610 | 84,816 | 68,899 | |||
Total stockholders' equity | 4,484,187 | 4,590,514 | 4,722,856 | |||
Total liabilities and stockholders' equity | $ | 30,839,893 | $ | 29,820,138 | $ | 29,143,918 |
Shares of common stock outstanding at period end | 194,458,805 | 192,923,371 | 192,715,433 | |||
Book value per common share | $ | 22.35 | $ | 23.09 | $ | 23.80 |
Tangible book value per common share1
| 13.17 | 13.87 | 14.62 | |||
1 See reconciliation of non-GAAP financial measures beginning on page 20.
|
For the Quarter Ended | For the Six Months Ended | |||||||||
June 30, 2020 | March 31, 2021 | June 30, 2021 | June 30, 2020 | June 30, 2021 | ||||||
Interest and dividend income: | ||||||||||
Loans and loan fees | $ | 219,904 | $ | 205,855 | $ | 201,685 | $ | 455,343 | $ | 407,540 |
Securities taxable | 18,855 | 15,352 | 15,749 | 39,484 | 31,101 | |||||
Securities non-taxable | 12,831 | 11,738 | 11,718 | 25,828 | 23,456 | |||||
Other earning assets | 1,636 | 902 | 1,158 | 6,098 | 2,060 | |||||
Total interest and dividend income | 253,226 | 233,847 | 230,310 | 526,753 | 464,157 | |||||
Interest expense: | ||||||||||
Deposits | 28,110 | 8,868 | 6,698 | 73,891 | 15,566 | |||||
Borrowings | 11,817 | 7,065 | 5,085 | 27,791 | 12,150 | |||||
Total interest expense | 39,927 | 15,933 | 11,783 | 101,682 | 27,716 | |||||
Net interest income | 213,299 | 217,914 | 218,527 | 425,071 | 436,441 | |||||
Provision for credit losses - loans | 56,606 | 10,000 | 6,000 | 193,183 | 16,000 | |||||
Provision for credit losses - held to maturity securities | - | - | (750) | 1,703 | (750) | |||||
Net interest income after provision for credit losses | 156,693 | 207,914 | 213,277 | 230,185 | 421,191 | |||||
Non-interest income: | ||||||||||
Deposit fees and service charges | 5,345 | 6,563 | 7,096 | 11,968 | 13,659 | |||||
Accounts receivable management / factoring commissions and other related fees | 4,419 | 5,426 | 5,491 | 9,956 | 10,917 | |||||
BOLI | 4,950 | 4,955 | 4,981 | 9,967 | 9,936 | |||||
Loan commissions and fees | 8,003 | 10,477 | 8,762 | 19,028 | 19,239 | |||||
Investment management fees | 1,379 | 1,852 | 2,018 | 3,225 | 3,870 | |||||
Net gain (loss) on sale of securities | 485 | 719 | (80) | 8,896 | 639 | |||||
Net gain on security calls | - | - | - | 4,880 | - | |||||
Other | 1,509 | 2,364 | 1,946 | 5,496 | 4,310 | |||||
Total non-interest income | 26,090 | 32,356 | 30,214 | 73,416 | 62,570 | |||||
Non-interest expense: | ||||||||||
Compensation and benefits | 54,668 | 58,087 | 56,953 | 109,544 | 115,040 | |||||
Stock-based compensation plans | 5,913 | 6,617 | 6,781 | 11,919 | 13,398 | |||||
Occupancy and office operations | 14,695 | 14,515 | 13,875 | 29,894 | 28,390 | |||||
Information technology | 7,312 | 9,246 | 9,741 | 15,330 | 18,987 | |||||
Professional fees | 5,458 | 7,077 | 7,561 | 11,207 | 14,638 | |||||
Amortization of intangible assets | 4,200 | 3,776 | 3,776 | 8,400 | 7,552 | |||||
FDIC insurance and regulatory assessments | 3,638 | 3,230 | 2,344 | 6,844 | 5,574 | |||||
Other real estate owned, net | 1,233 | (68) | (72) | 1,285 | (140) | |||||
Merger-related expenses | - | - | 2,481 | - | 2,481 | |||||
Impairment related to financial centers and real estate consolidation strategy | - | 633 | 475 | - | 1,108 | |||||
Loss on extinguishment of borrowings | 9,723 | - | 1,243 | 10,476 | 1,243 | |||||
Other | 18,041 | 15,052 | 15,471 | 34,695 | 30,523 | |||||
Total non-interest expense | 124,881 | 118,165 | 120,629 | 239,594 | 238,794 | |||||
Income before income tax expense | 57,902 | 122,105 | 122,862 | 64,007 | 244,967 | |||||
Income tax expense (benefit) | 7,110 | 22,955 | 24,523 | (932) | 47,478 | |||||
Net income | 50,792 | 99,150 | 98,339 | 64,939 | 197,489 | |||||
Preferred stock dividend | 1,972 | 1,963 | 1,959 | 3,948 | 3,922 | |||||
Net income available to common stockholders | $ | 48,820 | $ | 97,187 | $ | 96,380 | $ | 60,991 | $ | 193,567 |
Weighted average common shares: | ||||||||||
Basic | 193,479,757 | 191,890,512 | 191,436,885 | 194,909,498 | 191,655,897 | |||||
Diluted | 193,604,431 | 192,621,907 | 192,292,989 | 195,168,557 | 192,456,817 | |||||
Earnings per common share: | ||||||||||
Basic earnings per share | $ | 0.25 | $ | 0.51 | $ | 0.50 | $ | 0.31 | $ | 1.01 |
Diluted earnings per share | 0.25 | 0.50 | 0.50 | 0.31 | 1.01 | |||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.14 | 0.14 |
As of and for the Quarter Ended | ||||||||||
End of Period | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | |||||
Total assets | $ | 30,839,893 | $ | 30,617,722 | $ | 29,820,138 | $ | 29,914,282 | $ | 29,143,918 |
Tangible assets 1
| 29,054,447 | 28,836,476 | 28,043,092 | 28,141,012 | 27,374,424 | |||||
Securities available for sale | 2,620,624 | 2,419,458 | 2,298,618 | 2,524,671 | 2,671,000 | |||||
Securities held to maturity, net | 1,924,955 | 1,781,892 | 1,740,838 | 1,716,786 | 1,695,470 | |||||
Loans held for sale2
| 44,437 | 36,826 | 11,749 | 36,237 | 19,088 | |||||
Portfolio loans | 22,295,267 | 22,281,940 | 21,848,409 | 21,151,973 | 20,724,097 | |||||
Goodwill | 1,683,482 | 1,683,482 | 1,683,482 | 1,683,482 | 1,683,482 | |||||
Other intangibles | 101,964 | 97,764 | 93,564 | 89,788 | 86,012 | |||||
Deposits | 23,600,621 | 24,255,333 | 23,119,522 | 23,841,718 | 23,146,711 | |||||
Municipal deposits (included above) | 1,724,049 | 2,397,072 | 1,648,945 | 2,047,349 | 1,844,719 | |||||
Borrowings | 2,014,259 | 993,535 | 1,321,714 | 667,499 | 518,021 | |||||
Stockholders' equity | 4,484,187 | 4,557,785 | 4,590,514 | 4,620,164 | 4,722,856 | |||||
Tangible common equity 1
| 2,561,599 | 2,639,622 | 2,676,779 | 2,710,436 | 2,817,138 | |||||
Quarterly Average Balances | ||||||||||
Total assets | 30,732,914 | 30,652,856 | 30,024,165 | 29,582,605 | 29,390,977 | |||||
Tangible assets 1
| 28,944,714 | 28,868,840 | 28,244,364 | 27,806,859 | 27,619,006 | |||||
Loans, gross: | ||||||||||
Commercial real estate (includes multi-family) | 10,404,643 | 10,320,930 | 10,191,707 | 10,283,292 | 10,331,355 | |||||
ADC | 519,517 | 636,061 | 685,368 | 624,259 | 645,094 | |||||
C&I: | ||||||||||
Traditional C&I (includes PPP loans) | 3,130,248 | 3,339,872 | 3,155,851 | 2,917,721 | 2,918,285 | |||||
Asset-based lending3
| 981,518 | 864,075 | 876,377 | 751,861 | 713,428 | |||||
Payroll finance3
| 173,175 | 143,579 | 162,762 | 146,839 | 151,333 | |||||
Warehouse lending3
| 1,353,885 | 1,550,425 | 1,637,507 | 1,546,947 | 1,203,374 | |||||
Factored receivables3
| 188,660 | 163,388 | 214,021 | 224,845 | 215,590 | |||||
Equipment financing3
| 1,677,273 | 1,590,855 | 1,535,582 | 1,474,993 | 1,412,812 | |||||
Public sector finance3
| 1,286,265 | 1,481,260 | 1,532,899 | 1,583,066 | 1,654,370 | |||||
Total C&I | 8,791,024 | 9,133,454 | 9,114,999 | 8,646,272 | 8,269,192 | |||||
Residential mortgage | 2,006,400 | 1,862,390 | 1,691,567 | 1,558,266 | 1,427,055 | |||||
Consumer | 219,052 | 206,700 | 195,870 | 182,461 | 170,965 | |||||
Loans, total4
| 21,940,636 | 22,159,535 | 21,879,511 | 21,294,550 | 20,843,661 | |||||
Securities (taxable) | 2,507,384 | 2,363,059 | 2,191,333 | 2,103,768 | 2,378,213 | |||||
Securities (non-taxable) | 2,122,672 | 2,029,805 | 1,964,451 | 1,951,210 | 1,943,913 | |||||
Other interest earning assets | 669,422 | 610,938 | 487,696 | 800,204 | 803,148 | |||||
Total interest earning assets | 27,240,114 | 27,163,337 | 26,522,991 | 26,149,732 | 25,968,935 | |||||
Deposits: | ||||||||||
Non-interest bearing demand | 5,004,907 | 5,385,939 | 5,530,334 | 5,521,538 | 5,747,679 | |||||
Interest bearing demand | 4,766,298 | 4,688,343 | 4,870,544 | 4,981,415 | 4,964,386 | |||||
Savings (including mortgage escrow funds) | 2,890,402 | 2,727,475 | 2,712,041 | 2,717,622 | 2,777,651 | |||||
Money market | 8,035,750 | 8,304,834 | 8,577,920 | 8,382,533 | 8,508,735 | |||||
Certificates of deposit | 2,766,580 | 2,559,325 | 2,158,348 | 1,943,820 | 1,518,224 | |||||
Total deposits and mortgage escrow | 23,463,937 | 23,665,916 | 23,849,187 | 23,546,928 | 23,516,675 | |||||
Borrowings | 2,101,016 | 1,747,941 | 852,057 | 721,642 | 527,272 | |||||
Stockholders' equity | 4,464,403 | 4,530,334 | 4,591,770 | 4,616,660 | 4,670,718 | |||||
Tangible common stockholders' equity 1
| 2,538,842 | 2,609,179 | 2,675,055 | 2,704,227 | 2,762,292 | |||||
1 See a reconciliation of non-GAAP financial measures beginning on page 20.
| ||||||||||
2 Loans held for sale mainly includes commercial syndication loans.
| ||||||||||
3 Asset-based lending, payroll finance, warehouse lending, factored receivables, equipment finance and public sector finance comprise our commercial finance loan portfolio.
| ||||||||||
4 Includes loans held for sale, but excludes allowance for credit losses.
|
As of and for the Quarter Ended | ||||||||||
Per Common Share Data | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | |||||
Basic earnings per share | $ | 0.25 | $ | 0.43 | $ | 0.39 | $ | 0.51 | $ | 0.50 |
Diluted earnings per share | 0.25 | 0.43 | 0.38 | 0.50 | 0.50 | |||||
Adjusted diluted earnings per share, non-GAAP 1
| 0.29 | 0.45 | 0.49 | 0.51 | 0.52 | |||||
Dividends declared per common share | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | |||||
Book value per common share | 22.35 | 22.73 | 23.09 | 23.28 | 23.80 | |||||
Tangible book value per common share1
| 13.17 | 13.57 | 13.87 | 14.08 | 14.62 | |||||
Shares of common stock o/s | 194,458,805 | 194,458,841 | 192,923,371 | 192,567,901 | 192,715,433 | |||||
Basic weighted average common shares o/s
| 193,479,757 | 193,494,929 | 193,036,678 | 191,890,512 | 191,436,885 | |||||
Diluted weighted average common shares o/s
| 193,604,431 | 193,715,943 | 193,530,930 | 192,621,907 | 192,292,989 | |||||
Performance Ratios (annualized) | ||||||||||
Return on average assets | 0.64 | % | 1.07 | % | 0.99 | % | 1.33 | % | 1.32 | % |
Return on average equity | 4.40 | 7.24 | 6.45 | 8.54 | 8.28 | |||||
Return on average tangible assets | 0.68 | 1.14 | 1.05 | 1.42 | 1.40 | |||||
Return on average tangible common equity | 7.73 | 12.57 | 11.07 | 14.58 | 13.99 | |||||
Return on average tangible assets, adjusted 1
| 0.79 | 1.21 | 1.33 | 1.42 | 1.46 | |||||
Return on avg. tangible common equity, adjusted 1
| 9.02 | 13.37 | 14.03 | 14.64 | 14.59 | |||||
Operating efficiency ratio, as adjusted 1
| 45.1 | 43.1 | 43.0 | 44.3 | 44.1 | |||||
Analysis of Net Interest Income | ||||||||||
Accretion income on acquired loans | $ | 10,086 | $ | 9,172 | $ | 8,560 | $ | 8,272 | $ | 7,812 |
Yield on loans | 4.03 | % | 3.82 | % | 3.90 | % | 3.92 | % | 3.88 | % |
Yield on investment securities - tax equivalent 2
| 3.05 | 3.09 | 2.94 | 3.02 | 2.84 | |||||
Yield on interest earning assets - tax equivalent 2
| 3.79 | 3.63 | 3.69 | 3.68 | 3.61 | |||||
Cost of interest bearing deposits | 0.61 | 0.40 | 0.29 | 0.20 | 0.15 | |||||
Cost of total deposits | 0.48 | 0.31 | 0.22 | 0.15 | 0.11 | |||||
Cost of borrowings | 2.26 | 1.95 | 3.35 | 3.97 | 3.87 | |||||
Cost of interest bearing liabilities | 0.78 | 0.53 | 0.43 | 0.34 | 0.26 | |||||
Net interest rate spread - tax equivalent basis 2
| 3.01 | 3.10 | 3.26 | 3.34 | 3.35 | |||||
Net interest margin - GAAP basis | 3.15 | 3.19 | 3.33 | 3.38 | 3.38 | |||||
Net interest margin - tax equivalent basis 2
| 3.20 | 3.24 | 3.38 | 3.43 | 3.42 | |||||
Capital | ||||||||||
Tier 1 leverage ratio - Company 3
| 9.51 | % | 9.93 | % | 10.14 | % | 10.50 | % | 10.91 | % |
Tier 1 leverage ratio - Bank only 3
| 10.09 | 10.48 | 11.33 | 11.76 | 12.10 | |||||
Tier 1 risk-based capital ratio - Bank only 3
| 12.24 | 12.39 | 13.38 | 14.04 | 14.44 | |||||
Total risk-based capital ratio - Bank only 3
| 13.85 | 13.86 | 14.73 | 15.42 | 15.22 | |||||
Tangible common equity - Company 1
| 8.82 | 9.15 | 9.55 | 9.63 | 10.29 | |||||
Condensed Five Quarter Income Statement | ||||||||||
Interest and dividend income | $ | 253,226 | $ | 244,658 | $ | 242,610 | $ | 233,847 | $ | 230,310 |
Interest expense | 39,927 | 26,834 | 20,584 | 15,933 | 11,783 | |||||
Net interest income | 213,299 | 217,824 | 222,026 | 217,914 | 218,527 | |||||
Provision for credit losses | 56,606 | 30,000 | 27,500 | 10,000 | 5,250 | |||||
Net interest income after provision for credit losses | 156,693 | 187,824 | 194,526 | 207,914 | 213,277 | |||||
Non-interest income | 26,090 | 28,225 | 33,921 | 32,356 | 30,214 | |||||
Non-interest expense | 124,881 | 119,362 | 133,473 | 118,165 | 120,629 | |||||
Income before income tax expense | 57,902 | 96,687 | 94,974 | 122,105 | 122,862 | |||||
Income tax expense | 7,110 | 12,280 | 18,551 | 22,955 | 24,523 | |||||
Net income | $ | 50,792 | $ | 84,407 | $ | 76,423 | $ | 99,150 | $ | 98,339 |
1 See a reconciliation of non-GAAP financial measures beginning on page 20.
| ||||||||||
2 Tax equivalent basis represents interest income earned on tax exempt securities divided by the applicable federal tax rate of 21%.
| ||||||||||
3 Regulatory capital amounts and ratios are preliminary estimates pending filing of the Company's and Bank's regulatory reports.
|
As of and for the Quarter Ended | ||||||||||
Allowance for Credit Losses Roll Forward | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | |||||
Balance, beginning of period | $ | 326,444 | $ | 365,489 | $ | 325,943 | $ | 326,100 | $ | 323,186 |
Provision for credit losses - loans | 56,606 | 31,000 | 27,500 | 10,000 | 6,000 | |||||
Loan charge-offs1:
| ||||||||||
Traditional C&I | (3,988) | (1,089) | (17,757) | (1,027) | (1,148) | |||||
Asset-based lending | (1,500) | (1,297) | - | - | - | |||||
Payroll finance | (560) | - | (730) | - | (86) | |||||
Factored receivables | (3,731) | (6,893) | (2,099) | (4) | (761) | |||||
Equipment financing | (7,863) | (42,128) | (3,445) | (2,408) | (3,004) | |||||
Commercial real estate | (11) | (3,650) | (3,266) | (2,933) | (7,375) | |||||
Multi-family | (154) | - | (430) | (3,230) | (4,982) | |||||
ADC | (1) | - | (307) | (5,000) | - | |||||
Residential mortgage | (702) | (17,353) | (23) | (267) | (237) | |||||
Consumer | (172) | (97) | (62) | (391) | (231) | |||||
Total charge-offs | (18,682) | (72,507) | (28,119) | (15,260) | (17,824) | |||||
Recoveries of loans previously charged-off1:
| ||||||||||
Traditional C&I | 116 | 677 | 194 | 468 | 588 | |||||
Asset-based lending | - | - | - | - | 1,998 | |||||
Payroll finance | 1 | 262 | 38 | 2 | 4 | |||||
Factored receivables | 1 | 185 | 122 | 406 | 52 | |||||
Equipment financing | 387 | 816 | 217 | 854 | 719 | |||||
Commercial real estate | 584 | - | 174 | 487 | 97 | |||||
Multi-family | 1 | - | - | - | 15 | |||||
Acquisition development & construction | - | - | - | - | - | |||||
Residential mortgage | - | - | 1 | 37 | - | |||||
Consumer | 31 | 21 | 30 | 92 | 38 | |||||
Total recoveries | 1,121 | 1,961 | 776 | 2,346 | 3,511 | |||||
Net loan charge-offs | (17,561) | (70,546) | (27,343) | (12,914) | (14,313) | |||||
Balance, end of period | $ | 365,489 | $ | 325,943 | $ | 326,100 | $ | 323,186 | $ | 314,873 |
Asset Quality Data and Ratios | ||||||||||
Non-performing loans ('NPLs') non-accrual | $ | 260,333 | $ | 180,795 | $ | 166,889 | $ | 168,555 | $ | 173,319 |
NPLs still accruing | 272 | 56 | 170 | 2 | - | |||||
Total NPLs | 260,605 | 180,851 | 167,059 | 168,557 | 173,319 | |||||
Other real estate owned | 8,665 | 6,919 | 5,346 | 5,227 | 816 | |||||
Non-performing assets ('NPAs') | $ | 269,270 | $ | 187,770 | $ | 172,405 | $ | 173,784 | $ | 174,135 |
Loans 30 to 89 days past due
| $ | 66,268 | $ | 68,979 | $ | 72,912 | $ | 42,165 | $ | 39,476 |
Net charge-offs as a % of average loans (annualized) | 0.32 | % | 1.27 | % | 0.50 | % | 0.25 | % | 0.28 | % |
NPLs as a % of total loans | 1.17 | 0.81 | 0.76 | 0.80 | 0.84 | |||||
NPAs as a % of total assets | 0.87 | 0.61 | 0.58 | 0.58 | 0.60 | |||||
ACL as a % of NPLs | 140.2 | 180.2 | 195.2 | 191.7 | 181.7 | |||||
ACL as a % of total loans | 1.64 | 1.46 | 1.49 | 1.53 | 1.52 | |||||
Special mention loans | $ | 141,805 | $ | 204,267 | $ | 461,458 | $ | 494,452 | $ | 388,535 |
Substandard loans | 415,917 | 375,427 | 528,760 | 590,109 | 611,805 | |||||
Doubtful loans | - | - | 304 | 295 | 4,600 | |||||
1 There were no charge-offs or recoveries on warehouse lending or public sector finance loans during the periods presented. There were no asset-based lending recoveries during the periods presented.
|
At or for the three months ended June 30, 2021 | CECL ACL | |||||||||||||
Total loans | Crit/Class | 30-89 Days Delinquent | NPLs | NCOs | ACL $ | % of Portfolio | ||||||||
Traditional C&I | $ | 2,917,848 | $ | 164,745 | $ | 6,095 | $ | 41,593 | $ | (560) | $ | 47,494 | 1.63 | % |
Asset Based Lending | 707,207 | 72,682 | - | 7,535 | 1,998 | 10,474 | 1.48 | |||||||
Payroll Finance | 158,424 | 652 | - | 652 | (82) | 1,567 | 0.99 | |||||||
Mortgage Warehouse | 1,229,588 | - | - | - | - | 1,087 | 0.09 | |||||||
Factored Receivables | 217,399 | - | - | - | (709) | 3,025 | 1.39 | |||||||
Equipment Finance | 1,381,308 | 66,790 | 890 | 23,452 | (2,285) | 27,987 | 2.03 | |||||||
Public Sector Finance | 1,723,270 | - | - | - | - | 6,168 | 0.36 | |||||||
Commercial Real Estate | 5,861,542 | 492,802 | 12,344 | 48,074 | (7,278) | 155,589 | 2.65 | |||||||
Multi-family | 4,281,615 | 153,181 | 12,853 | 327 | (4,967) | 32,054 | 0.75 | |||||||
ADC | 690,224 | 27,023 | - | 25,000 | - | 11,371 | 1.65 | |||||||
Total commercial loans | 19,168,425 | 977,875 | 32,182 | 146,633 | (13,883) | 296,816 | 1.55 | |||||||
Residential | 1,389,294 | 17,416 | 6,138 | 17,132 | (237) | 14,032 | 1.01 | |||||||
Consumer | 166,378 | 9,649 | 1,156 | 9,554 | (193) | 4,025 | 2.42 | |||||||
Total portfolio loans | $ | 20,724,097 | $ | 1,004,940 | $ | 39,476 | $ | 173,319 | $ | (14,313) | $ | 314,873 | 1.52 |
At or for the three months ended March 31, 2021 | CECL ACL | |||||||||||||
Total loans | Crit/Class | 30-89 Days Delinquent | NPLs | NCOs | ACL $ | % of Portfolio | ||||||||
Traditional C&I | $ | 2,886,336 | $ | 133,449 | $ | 3,009 | $ | 50,351 | $ | (559) | $ | 46,393 | 1.61 | % |
Asset Based Lending | 693,015 | 106,351 | - | 10,149 | - | 11,165 | 1.61 | |||||||
Payroll Finance | 153,987 | 3,489 | - | 2,313 | 2 | 1,519 | 0.99 | |||||||
Mortgage Warehouse | 1,394,945 | - | - | - | - | 1,232 | 0.09 | |||||||
Factored Receivables | 229,629 | - | - | - | 402 | 3,237 | 1.41 | |||||||
Equipment Finance | 1,475,716 | 53,850 | 2,514 | 28,870 | (1,554) | 28,025 | 1.90 | |||||||
Public Sector Finance | 1,617,986 | - | - | - | - | 4,632 | 0.29 | |||||||
Commercial Real Estate | 6,029,282 | 588,163 | 14,039 | 24,269 | (2,446) | 159,422 | 2.64 | |||||||
Multi-family | 4,391,850 | 145,730 | 14,029 | 778 | (3,230) | 33,376 | 0.76 | |||||||
ADC | 618,295 | 26,613 | - | 25,000 | (5,000) | 13,803 | 2.23 | |||||||
Total commercial loans | 19,491,041 | 1,057,645 | 33,591 | 141,730 | (12,385) | 302,804 | 1.55 | |||||||
Residential | 1,486,597 | 17,368 | 7,347 | 17,081 | (230) | 15,970 | 1.07 | |||||||
Consumer | 174,335 | 9,843 | 1,229 | 9,746 | (299) | 4,412 | 2.53 | |||||||
Total portfolio loans | $ | 21,151,973 | $ | 1,084,856 | $ | 42,167 | $ | 168,557 | $ | (12,914) | $ | 323,186 | 1.53 |
For the Quarter Ended | ||||||||||||
March 31, 2021 | June 30, 2021 | |||||||||||
Average balance | Interest | Yield/Rate |
Average balance | Interest | Yield/Rate | |||||||
(Dollars in thousands) | ||||||||||||
Interest earning assets: | ||||||||||||
Traditional C&I and commercial finance loans | $ | 8,646,272 | $ | 78,006 | 3.66 | % | $ | 8,269,192 | $ | 76,983 | 3.73 | % |
Commercial real estate (includes multi-family) | 10,283,292 | 103,625 | 4.09 | 10,331,355 | 103,225 | 4.01 | ||||||
ADC | 624,259 | 5,856 | 3.80 | 645,094 | 6,650 | 4.13 | ||||||
Commercial loans | 19,553,823 | 187,487 | 3.89 | 19,245,641 | 186,858 | 3.89 | ||||||
Consumer loans | 182,461 | 2,081 | 4.63 | 170,965 | 1,712 | 4.02 | ||||||
Residential mortgage loans | 1,558,266 | 16,287 | 4.18 | 1,427,055 | 13,115 | 3.68 | ||||||
Total gross loans 1
| 21,294,550 | 205,855 | 3.92 | 20,843,661 | 201,685 | 3.88 | ||||||
Securities taxable | 2,103,768 | 15,352 | 2.96 | 2,378,213 | 15,749 | 2.66 | ||||||
Securities non-taxable | 1,951,210 | 14,858 | 3.05 | 1,943,913 | 14,833 | 3.05 | ||||||
Interest earning deposits | 648,178 | 149 | 0.09 | 651,271 | 164 | 0.10 | ||||||
FHLB and Federal Reserve Bank Stock | 152,026 | 753 | 2.01 | 151,877 | 994 | 2.63 | ||||||
Total securities and other earning assets | 4,855,182 | 31,112 | 2.60 | 5,125,274 | 31,740 | 2.48 | ||||||
Total interest earning assets | 26,149,732 | 236,967 | 3.68 | 25,968,935 | 233,425 | 3.61 | ||||||
Non-interest earning assets | 3,432,873 | 3,422,042 | ||||||||||
Total assets | $ | 29,582,605 | $ | 29,390,977 | ||||||||
Interest bearing liabilities: | ||||||||||||
Demand and savings 2 deposits
| $ | 7,699,037 | $ | 2,513 | 0.13 | % | $ | 7,742,037 | $ | 2,145 | 0.11 | % |
Money market deposits | 8,382,533 | 3,813 | 0.18 | 8,508,735 | 3,140 | 0.15 | ||||||
Certificates of deposit | 1,943,820 | 2,542 | 0.53 | 1,518,224 | 1,413 | 0.37 | ||||||
Total interest bearing deposits | 18,025,390 | 8,868 | 0.20 | 17,768,996 | 6,698 | 0.15 | ||||||
Other borrowings | 85,957 | 36 | 0.17 | 35,156 | 9 | 0.10 | ||||||
Subordinated debentures - Bank | 143,722 | 1,957 | 5.45 | - | - | - | ||||||
Subordinated debentures - Company | 491,963 | 5,072 | 4.12 | 492,116 | 5,076 | 4.13 | ||||||
Total borrowings | 721,642 | 7,065 | 3.97 | 527,272 | 5,085 | 3.87 | ||||||
Total interest bearing liabilities | 18,747,032 | 15,933 | 0.34 | 18,296,268 | 11,783 | 0.26 | ||||||
Non-interest bearing deposits | 5,521,538 | 5,747,679 | ||||||||||
Other non-interest bearing liabilities | 697,375 | 676,312 | ||||||||||
Total liabilities | 24,965,945 | 24,720,259 | ||||||||||
Stockholders' equity | 4,616,660 | 4,670,718 | ||||||||||
Total liabilities and stockholders' equity | $ | 29,582,605 | $ | 29,390,977 | ||||||||
Net interest rate spread 3
| 3.34 | % | 3.35 | % | ||||||||
Net interest earning assets 4
| $ | 7,402,700 | $ | 7,672,667 | ||||||||
Net interest margin - tax equivalent | 221,034 | 3.43 | % | 221,642 | 3.42 | % | ||||||
Less tax equivalent adjustment | (3,120) | (3,115) | ||||||||||
Net interest income | 217,914 | 218,527 | ||||||||||
Accretion income on acquired loans | 8,272 | 7,812 | ||||||||||
Tax equivalent net interest margin excluding accretion income on acquired loans
| $ | 212,762 | 3.30 | % | $ | 213,830 | 3.30 | % | ||||
Ratio of interest earning assets to interest bearing liabilities
| 139.5 | % | 141.9 | % | ||||||||
For the Quarter Ended | ||||||||||||
June 30, 2020 | June 30, 2021 | |||||||||||
Average balance | Interest | Yield/Rate |
Average balance | Interest | Yield/Rate | |||||||
(Dollars in thousands) | ||||||||||||
Interest earning assets: | ||||||||||||
Traditional C&I and commercial finance loans | $ | 8,791,024 | $ | 84,192 | 3.85 | % | $ | 8,269,192 | $ | 76,983 | 3.73 | % |
Commercial real estate (includes multi-family) | 10,404,643 | 106,408 | 4.11 | 10,331,355 | 103,225 | 4.01 | ||||||
ADC | 519,517 | 5,762 | 4.46 | 645,094 | 6,650 | 4.13 | ||||||
Commercial loans | 19,715,184 | 196,362 | 4.01 | 19,245,641 | 186,858 | 3.89 | ||||||
Consumer loans | 219,052 | 2,233 | 4.10 | 170,965 | 1,712 | 4.02 | ||||||
Residential mortgage loans | 2,006,400 | 21,309 | 4.25 | 1,427,055 | 13,115 | 3.68 | ||||||
Total gross loans 1
| 21,940,636 | 219,904 | 4.03 | 20,843,661 | 201,685 | 3.88 | ||||||
Securities taxable | 2,507,384 | 18,855 | 3.02 | 2,378,213 | 15,749 | 2.66 | ||||||
Securities non-taxable | 2,122,672 | 16,242 | 3.06 | 1,943,913 | 14,833 | 3.05 | ||||||
Interest earning deposits | 455,626 | 146 | 0.13 | 651,271 | 164 | 0.10 | ||||||
FHLB and Federal Reserve Bank stock | 213,796 | 1,490 | 2.80 | 151,877 | 994 | 2.63 | ||||||
Total securities and other earning assets | 5,299,478 | 36,733 | 2.79 | 5,125,274 | 31,740 | 2.48 | ||||||
Total interest earning assets | 27,240,114 | 256,637 | 3.79 | 25,968,935 | 233,425 | 3.61 | ||||||
Non-interest earning assets | 3,492,800 | 3,422,042 | ||||||||||
Total assets | $ | 30,732,914 | $ | 29,390,977 | ||||||||
Interest bearing liabilities: | ||||||||||||
Demand and savings 2 deposits
| $ | 7,656,700 | $ | 7,224 | 0.38 | % | $ | 7,742,037 | $ | 2,145 | 0.11 | % |
Money market deposits | 8,035,750 | 11,711 | 0.59 | 8,508,735 | 3,140 | 0.15 | ||||||
Certificates of deposit | 2,766,580 | 9,175 | 1.33 | 1,518,224 | 1,413 | 0.37 | ||||||
Total interest bearing deposits | 18,459,030 | 28,110 | 0.61 | 17,768,996 | 6,698 | 0.15 | ||||||
Senior notes | 127,862 | 944 | 2.95 | - | - | - | ||||||
Other borrowings | 1,528,844 | 5,684 | 1.50 | 35,156 | 9 | 0.10 | ||||||
Subordinated debentures - Bank | 173,265 | 2,361 | 5.45 | - | - | - | ||||||
Subordinated debentures - Company | 271,045 | 2,828 | 4.17 | 492,116 | 5,076 | 4.13 | ||||||
Total borrowings | 2,101,016 | 11,817 | 2.26 | 527,272 | 5,085 | 3.87 | ||||||
Total interest bearing liabilities | 20,560,046 | 39,927 | 0.78 | 18,296,268 | 11,783 | 0.26 | ||||||
Non-interest bearing deposits | 5,004,907 | 5,747,679 | ||||||||||
Other non-interest bearing liabilities | 703,558 | 676,312 | ||||||||||
Total liabilities | 26,268,511 | 24,720,259 | ||||||||||
Stockholders' equity | 4,464,403 | 4,670,718 | ||||||||||
Total liabilities and stockholders' equity | $ | 30,732,914 | $ | 29,390,977 | ||||||||
Net interest rate spread 3
| 3.01 | % | 3.35 | % | ||||||||
Net interest earning assets 4
| $ | 6,680,068 | $ | 7,672,667 | ||||||||
Net interest margin - tax equivalent | 216,710 | 3.20 | % | 221,642 | 3.42 | % | ||||||
Less tax equivalent adjustment | (3,411) | (3,115) | ||||||||||
Net interest income | 213,299 | 218,527 | ||||||||||
Accretion income on acquired loans | 10,086 | 7,812 | ||||||||||
Tax equivalent net interest margin excluding accretion income on acquired loans
| $ | 206,624 | 3.05 | % | $ | 213,830 | 3.30 | % | ||||
Ratio of interest earning assets to interest bearing liabilities
| 132.5 | % | 141.9 | % | ||||||||
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 25.
| ||||||||||
As of and for the Quarter Ended | ||||||||||
June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | ||||||
The following table shows the reconciliation of pretax pre-provision net revenue to adjusted pretax pre-provision net revenue1:
| ||||||||||
Net interest income | $ | 213,299 | $ | 217,824 | $ | 222,026 | $ | 217,914 | $ | 218,527 |
Non-interest income | 26,090 | 28,225 | 33,921 | 32,356 | 30,214 | |||||
Total net revenue | 239,389 | 246,049 | 255,947 | 250,270 | 248,741 | |||||
Non-interest expense | 124,881 | 119,362 | 133,473 | 118,165 | 120,629 | |||||
PPNR | 114,508 | 126,687 | 122,474 | 132,105 | 128,112 | |||||
Adjustments: | ||||||||||
Accretion income | (10,086) | (9,172) | (8,560) | (8,272) | (7,812) | |||||
Net (gain) loss on sale of securities | (485) | (642) | 111 | (719) | 80 | |||||
Loss on extinguishment of debt | 9,723 | 6,241 | 2,749 | - | 1,243 | |||||
Impairment related to financial centers and real estate consolidation strategy | - | - | 13,311 | 633 | 475 | |||||
Merger related expense | - | - | - | - | 2,481 | |||||
Amortization of non-compete agreements and acquired customer list intangible assets | 172 | 172 | 172 | 148 | 148 | |||||
Adjusted PPNR | $ | 113,832 | $ | 123,286 | $ | 130,257 | $ | 123,895 | $ | 124,727 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 25.
| ||||||||||
As of and for the Quarter Ended | ||||||||||
June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | ||||||
The following table shows the reconciliation of stockholders' equity to tangible common equity and the tangible common equity ratio2:
| ||||||||||
Total assets | $ | 30,839,893 | $ | 30,617,722 | $ | 29,820,138 | $ | 29,914,282 | $ | 29,143,918 |
Goodwill and other intangibles | (1,785,446) | (1,781,246) | (1,777,046) | (1,773,270) | (1,769,494) | |||||
Tangible assets | 29,054,447 | 28,836,476 | 28,043,092 | 28,141,012 | 27,374,424 | |||||
Stockholders' equity | 4,484,187 | 4,557,785 | 4,590,514 | 4,620,164 | 4,722,856 | |||||
Preferred stock | (137,142) | (136,917) | (136,689) | (136,458) | (136,224) | |||||
Goodwill and other intangibles | (1,785,446) | (1,781,246) | (1,777,046) | (1,773,270) | (1,769,494) | |||||
Tangible common stockholders' equity | 2,561,599 | 2,639,622 | 2,676,779 | 2,710,436 | 2,817,138 | |||||
Common stock outstanding at period end | 194,458,805 | 194,458,841 | 192,923,371 | 192,567,901 | 192,715,433 | |||||
Common stockholders' equity as a % of total assets
| 14.10 | % | 14.44 | % | 14.94 | % | 14.99 | % | 15.74 | % |
Book value per common share | $ | 22.35 | $ | 22.73 | $ | 23.09 | $ | 23.28 | $ | 23.80 |
Tangible common equity as a % of tangible assets
| 8.82 | % | 9.15 | % | 9.55 | % | 9.63 | % | 10.29 | % |
Tangible book value per common share | $ | 13.17 | $ | 13.57 | $ | 13.87 | $ | 14.08 | $ | 14.62 |
The following table shows the reconciliation of reported return on average tangible common equity and adjusted return on average tangible common equity3:
| ||||||||||
Average stockholders' equity | $ | 4,464,403 | $ | 4,530,334 | $ | 4,591,770 | $ | 4,616,660 | $ | 4,670,718 |
Average preferred stock
| (137,361) | (137,139) | (136,914) | (136,687) | (136,455) | |||||
Average goodwill and other intangibles
| (1,788,200) | (1,784,016) | (1,779,801) | (1,775,746) | (1,771,971) | |||||
Average tangible common stockholders' equity
| 2,538,842 | 2,609,179 | 2,675,055 | 2,704,227 | 2,762,292 | |||||
Net income available to common | 48,820 | 82,438 | 74,457 | 97,187 | 96,380 | |||||
Net income, if annualized | 196,353 | 327,960 | 296,209 | 394,147 | 386,579 | |||||
Reported return on avg tangible common equity
| 7.73 | % | 12.57 | % | 11.07 | % | 14.58 | % | 13.99 | % |
Adjusted net income (see reconciliation on page 22)
| $ | 56,926 | $ | 87,682 | $ | 94,323 | $ | 97,603 | $ | 100,509 |
Annualized adjusted net income | 228,955 | 348,822 | 375,242 | 395,834 | 403,140 | |||||
Adjusted return on average tangible common equity
| 9.02 | % | 13.37 | % | 14.03 | % | 14.64 | % | 14.59 | % |
The following table shows the reconciliation of reported return on average tangible assets and adjusted return on average tangible assets4:
| ||||||||||
Average assets | $ | 30,732,914 | $ | 30,652,856 | $ | 30,024,165 | $ | 29,582,605 | $ | 29,390,977 |
Average goodwill and other intangibles | (1,788,200) | (1,784,016) | (1,779,801) | (1,775,746) | (1,771,971) | |||||
Average tangible assets | 28,944,714 | 28,868,840 | 28,244,364 | 27,806,859 | 27,619,006 | |||||
Net income available to common | 48,820 | 82,438 | 74,457 | 97,187 | 96,380 | |||||
Net income, if annualized | 196,353 | 327,960 | 296,209 | 394,147 | 386,579 | |||||
Reported return on average tangible assets | 0.68 | % | 1.14 | % | 1.05 | % | 1.42 | % | 1.40 | % |
Adjusted net income (see reconciliation on page 22)
| $ | 56,926 | $ | 87,682 | $ | 94,323 | $ | 97,603 | $ | 100,509 |
Annualized adjusted net income | 228,955 | 348,822 | 375,242 | 395,834 | 403,140 | |||||
Adjusted return on average tangible assets | 0.79 | % | 1.21 | % | 1.33 | % | 1.42 | % | 1.46 | % |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 25.
| ||||||||||
As of and for the Quarter Ended | ||||||||||
June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | ||||||
The following table shows the reconciliation of the reported operating efficiency ratio and adjusted operating efficiency ratio5:
| ||||||||||
Net interest income | $ | 213,299 | $ | 217,824 | $ | 222,026 | $ | 217,914 | $ | 218,527 |
Non-interest income | 26,090 | 28,225 | 33,921 | 32,356 | 30,214 | |||||
Total revenue | 239,389 | 246,049 | 255,947 | 250,270 | 248,741 | |||||
Tax equivalent adjustment on securities
| 3,411 | 3,258 | 3,146 | 3,120 | 3,115 | |||||
Net (gain) loss on sale of securities | (485) | (642) | 111 | (719) | 80 | |||||
Depreciation of operating leases | (3,136) | (3,130) | (3,130) | (3,124) | (2,917) | |||||
Adjusted total revenue | 239,179 | 245,535 | 256,074 | 249,547 | 249,019 | |||||
Non-interest expense | 124,881 | 119,362 | 133,473 | 118,165 | 120,629 | |||||
Merger related expense | - | - | - | - | (2,481) | |||||
Impairment related to financial centers and real estate consolidation strategy
| - | - | (13,311) | (633) | (475) | |||||
Loss on extinguishment of borrowings | (9,723) | (6,241) | (2,749) | - | (1,243) | |||||
Depreciation of operating leases | (3,136) | (3,130) | (3,130) | (3,124) | (2,917) | |||||
Amortization of intangible assets | (4,200) | (4,200) | (4,200) | (3,776) | (3,776) | |||||
Adjusted non-interest expense | 107,822 | 105,791 | 110,083 | 110,632 | 109,737 | |||||
Reported operating efficiency ratio | 52.2 | % | 48.5 | % | 52.1 | % | 47.2 | % | 48.5 | % |
Adjusted operating efficiency ratio | 45.1 | 43.1 | 43.0 | 44.3 | 44.1 | |||||
The following table shows the reconciliation of reported net income (GAAP) and earnings per share to adjusted net income available to common stockholders (non-GAAP) and adjusted diluted earnings per share(non-GAAP)6:
| ||||||||||
Income before income tax expense | $ | 57,902 | $ | 96,687 | $ | 94,974 | $ | 122,105 | $ | 122,862 |
Income tax expense | 7,110 | 12,280 | 18,551 | 22,955 | 24,523 | |||||
Net income (GAAP) | 50,792 | 84,407 | 76,423 | 99,150 | 98,339 | |||||
Adjustments: | ||||||||||
Net (gain) loss on sale of securities | (485) | (642) | 111 | (719) | 80 | |||||
Loss on extinguishment of debt | 9,723 | 6,241 | 2,749 | - | 1,243 | |||||
Impairment related to financial centers and real estate consolidation strategy. | - | - | 13,311 | 633 | 475 | |||||
Merger related expenses | - | - | - | - | 2,481 | |||||
Amortization of non-compete agreements and acquired customer list intangible assets
| 172 | 172 | 172 | 148 | 148 | |||||
Total pre-tax adjustments | 9,410 | 5,771 | 16,343 | 62 | 4,427 | |||||
Adjusted pre-tax income | 67,312 | 102,458 | 111,317 | 122,167 | 127,289 | |||||
Adjusted income tax expense | 8,414 | 12,807 | 15,028 | 22,601 | 24,821 | |||||
Adjusted net income (non-GAAP) | 58,898 | 89,651 | 96,289 | 99,566 | 102,468 | |||||
Preferred stock dividend
| 1,972 | 1,969 | 1,966 | 1,963 | 1,959 | |||||
Adjusted net income available to common stockholders (non-GAAP) | $ | 56,926 | $ | 87,682 | $ | 94,323 | $ | 97,603 | $ | 100,509 |
Weighted average diluted shares
| 193,604,431 | 193,715,943 | 193,530,930 | 192,621,907 | 192,292,989 | |||||
Reported diluted EPS (GAAP) | $ | 0.25 | $ | 0.43 | $ | 0.38 | $ | 0.50 | $ | 0.50 |
Adjusted diluted EPS (non-GAAP)
| 0.29 | 0.45 | 0.49 | 0.51 | 0.52 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 25.
| ||||
For the Six Months Ended June 30, | ||||
2020 | 2021 | |||
The following table shows the reconciliation of reported net income (GAAP) and earnings per share to adjusted net income available to common stockholders (non-GAAP) and adjusted diluted earnings per share (non-GAAP)6:
| ||||
Income before income tax expense | $ | 64,007 | $ | 244,967 |
Income tax (benefit) expense | (932) | 47,478 | ||
Net income (GAAP) | 64,939 | 197,489 | ||
Adjustments: | ||||
Net (gain) on sale of securities | (8,896) | (639) | ||
Loss on extinguishment of borrowings | 10,467 | 1,243 | ||
Impairment related to financial centers and real estate consolidation strategy | - | 1,108 | ||
Merger-related expense | - | 2,481 | ||
Amortization of non-compete agreements and acquired customer list intangible assets | 343 | 296 | ||
Total pre-tax adjustments | 1,914 | 4,489 | ||
Adjusted pre-tax income | 65,921 | 249,456 | ||
Adjusted income tax expense | 8,240 | 48,644 | ||
Adjusted net income (non-GAAP) | $ | 57,681 | $ | 200,812 |
Preferred stock dividend | 3,948 | 3,922 | ||
Adjusted net income available to common stockholders (non-GAAP) | $ | 53,733 | $ | 196,890 |
Weighted average diluted shares | 195,168,557 | 192,456,817 | ||
Diluted EPS as reported (GAAP) | $ | 0.31 | $ | 1.01 |
Adjusted diluted EPS (non-GAAP) | 0.28 | 1.02 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 25.
| ||||
For the Six Months Ended June 30, | ||||
2020 | 2021 | |||
The following table shows the reconciliation of reported return on average tangible common equity and adjusted return on average tangible common equity3:
| ||||
Average stockholders' equity | $ | 4,485,470 | $ | 4,643,838 |
Average preferred stock | (137,470) | (136,570) | ||
Average goodwill and other intangibles | (1,790,300) | (1,773,848) | ||
Average tangible common stockholders' equity | 2,557,700 | 2,733,420 | ||
Net income available to common stockholders | $ | 60,991 | $ | 193,567 |
Net income available to common stockholders, if annualized | 122,317 | 390,342 | ||
Reported return on average tangible common equity | 4.78 | % | 14.28 | % |
Adjusted net income available to common stockholders (see reconciliation on page 23)
| $ | 53,733 | $ | 196,890 |
Adjusted net income available to common stockholders, if annualized | 107,761 | 397,043 | ||
Adjusted return on average tangible common equity | 4.21 | % | 14.53 | % |
The following table shows the reconciliation of reported return on avg tangible assets and adjusted return on avg tangible assets4:
| ||||
Average assets | $ | 30,608,673 | $ | 29,486,261 |
Average goodwill and other intangibles | (1,790,300) | (1,773,848) | ||
Average tangible assets | 28,818,373 | 27,712,413 | ||
Net income available to common stockholders | 60,991 | 193,567 | ||
Net income available to common stockholders, if annualized | 122,317 | 390,342 | ||
Reported return on average tangible assets | 0.42 | % | 1.41 | % |
Adjusted net income available to common stockholders (see reconciliation on page 23)
| $ | 53,733 | $ | 196,890 |
Adjusted net income available to common stockholders, if annualized | 107,761 | 397,043 | ||
Adjusted return on average tangible assets | 0.38 | % | 1.43 | % |
The following table shows the reconciliation of the reported operating efficiency ratio and adjusted operating efficiency ratio5:
| ||||
Net interest income | $ | 425,071 | $ | 436,441 |
Non-interest income | 73,416 | 62,570 | ||
Total revenues | 498,487 | 499,011 | ||
Tax equivalent adjustment on securities | 6,865 | 6,235 | ||
Net (gain) on sale of securities | (8,896) | (639) | ||
Depreciation of operating leases | (6,628) | (6,042) | ||
Adjusted total net revenue | 489,828 | 498,565 | ||
Non-interest expense | 239,594 | 238,794 | ||
Merger-related expense | - | (2,481) | ||
Impairment related to financial centers and real estate consolidation strategy | - | (1,108) | ||
Loss on extinguishment of borrowings | (10,467) | (1,243) | ||
Depreciation of operating leases | (6,628) | (6,042) | ||
Amortization of intangible assets | (8,400) | (7,552) | ||
Adjusted non-interest expense | $ | 214,099 | $ | 220,368 |
Reported operating efficiency ratio | 48.1 | % | 47.9 | % |
Adjusted operating efficiency ratio | 43.7 | % | 44.2 | % |
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Sterling Bancorp published this content on 21 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2021 20:17:13 UTC.