Cadence Bank Announces Third Quarter 2022 Financial Results

News provided by

Cadence Bank

Oct 24, 2022, 16:30 ET

HOUSTON and TUPELO, Miss., Oct. 24, 2022 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended September 30, 2022.

Highlights for the third quarter of 2022 included:

  • Achieved quarterly net income available to common shareholders of $121.0 million, or $0.66 per diluted common share, and adjusted net income available to common shareholders of $143.7 million, or $0.78 per diluted common share, an increase in adjusted earnings per diluted share of 6.8% compared to the second quarter of 2022.
  • Reported $189.8 million in adjusted pre-tax pre-provision net revenue (PPNR), an increase of 7.4% compared to the second quarter of 2022.
  • Generated net organic loan growth of $936.0 million for the third quarter of 2022, or 13.1% on an annualized basis. Year-to-date, loans have grown $2.4 billion, or 12.0% annualized.
  • Net interest margin improved to 3.28%, up 22 basis points (and up 26 basis points excluding the impact of purchase accounting accretion) from the linked quarter, driven by continued improvement in loan yields, changes to the earning asset mix resulting from net loan growth and disciplined management of deposit pricing.
  • Continued stable credit quality reflected in quarterly annualized net charge-offs of 0.09% of average loans and leases as well as a 3.3% linked quarter decline in total non-performing assets; no recorded provision for credit losses for the quarter.
  • Recently completed the successful core system conversion and operational integration of the legacy Cadence merger, including the re-branding of all branch locations across the Company's footprint.

"Our team is pleased to report continued positive momentum for Cadence Bank, highlighted by growth in adjusted earnings per share to $0.78 for the third quarter as well as the recent successful conversion of core systems and re-branding across our footprint," remarked Dan Rollins, Chairman and Chief Executive Officer of the Company. "We also had another good quarter in terms of loan growth, reporting total growth of $936 million, or 13% on an annualized basis.  Our net interest margin improved as we continue to benefit from rising rates and improvement in our earning asset mix.   Importantly, credit quality remains stable, which is reflected in no recorded provision for credit losses for the quarter."

Earnings Summary

The fourth quarter 2021 merger with Cadence Bancorporation impacts year-over-year comparisons. See "RECENT MERGER TRANSACTION" in this release for more information.

The Company reported net income available to common shareholders of $121.0 million, or $0.66 per diluted common share, for the third quarter of 2022, compared with net income available to common shareholders of $70.4 million, or $0.65 per diluted common share, for the third quarter of 2021 and net income available to common shareholders of $124.6 million, or $0.68 per diluted common share, for the second quarter of 2022. Adjusted net income available to common shareholders was $143.7 million, or $0.78 per diluted common share, for the third quarter of 2022, compared with $74.9 million, or $0.69 per diluted common share, for the third quarter of 2021 and $134.2 million, or $0.73 per diluted common share, for the second quarter of 2022.

The Company reported adjusted PPNR of $189.8 million, or 1.58% of average assets on an annualized basis, for the third quarter of 2022 compared to $92.1 million, or 1.32% of average assets on an annualized basis, for the third quarter of 2021 and $176.7 million, or 1.51% of average assets on an annualized basis, for the second quarter of 2022.

The growth in adjusted net income and PPNR during the quarter was primarily attributable to a significant increase in net interest revenue reflecting continued net interest margin improvement as well as loan growth, but was partially offset by an increase in salaries and employee benefits expense as well as other noninterest expense.

Net Interest Revenue

Net interest revenue was $355.4 million for the third quarter of 2022, compared to $181.5 million for the third quarter of 2021 and $324.8 million for the second quarter of 2022, an increase of $30.6 million or 9.4% from linked quarter. The fully taxable equivalent (FTE) net interest margin was 3.28% for the third quarter of 2022, compared with 2.86% for the third quarter of 2021 and 3.06% for the second quarter of 2022.

Net interest revenue for the third quarter of 2022 included $8.1 million in accretion revenue related to acquired loans and leases, adding approximately 7 basis points to the net interest margin. Accretion declined $3.6 million from $11.7 million for the second quarter of 2022, which added approximately 11 basis points to the second quarter 2022 net interest margin. Excluding the impact of accretion, the linked quarter net interest margin increased by 26 basis points.

The increase in net interest revenue in the third quarter of 2022 compared to the linked quarter reflected continued improvement in loan and securities yields as well as additional deployment of cash flow from maturing securities into loan growth. The balance sheet remains asset sensitive, with approximately 21% of loans floating (repricing within 30 days) and another 49% of loans variable as of September 30, 2022.

Yields on net loans, loans held for sale, and leases excluding accretion, were 4.70% for the third quarter of 2022, up 58 basis points from 4.12% for the second quarter of 2022, while yields on total interest earning assets were 3.74% for the third quarter of 2022, up 45 basis points from 3.29% for the second quarter of 2022. The average cost of total deposits remained well managed at 0.35% for the third quarter of 2022, compared with 0.17% for the second quarter of 2022.

Balance Sheet Activity

Loans and leases, net of unearned income, increased $936.0 million during the third quarter, or 13.1% annualized, and $2.4 billion year-to-date, or 12.0% annualized, to $29.3 billion.  Loan growth for the quarter was well diversified, with our corporate banking team contributing the largest portion of the growth. Total deposits declined $1.2 billion during the third quarter to $39.0 billion, resulting in a total year-to-date decline of $813.7 million.  The decline in deposits for the quarter included approximately $430 million in public funds and approximately $260 million in correspondent bank balances, both categories of which can vary quarter to quarter.   The third quarter of 2022 ended with a loan to deposit ratio of 75.1% and securities to total assets of 26.1%, reflecting continued improvement in earning asset mix while maintaining strong balance sheet liquidity. Noninterest bearing deposits represented 35.5% of total deposits at the end of the third quarter of 2022, increasing slightly from  34.9% at June 30, 2022.

Provision for Credit Losses and Allowance for Credit Losses

Credit quality metrics for the third quarter of 2022 reflect continued stability in overall credit quality, highlighted by low levels of net charge-offs and no provision for credit losses for the quarter.

Total non-performing assets declined $4.3 million, or 3.3%, in the third quarter from $130.8 million at June 30, 2022 to $126.5 million at September 30, 2022. Total non-performing loans and leases were $118.1 million at September 30, 2022, or 0.40% of total net loans and leases, compared to the June 30, 2022 balance of $116.4 million, or 0.41% of total net loans and leases. Other real estate owned and other repossessed assets also declined to $8.4 million at September 30, 2022, a decrease of $6.0 million or 41.8% from the June 30, 2022 balance of $14.4 million.

Net charge-offs for the third quarter of 2022 were $6.7 million, or 0.09% of net loans and leases on an annualized basis, compared with net recoveries of $2.1 million for the third quarter of 2021 and net recoveries of $1.4 million for the second quarter of 2022.  Net charge-offs for the third quarter of 2022 included one $8.0 million acquired energy credit that was classified as purchased credit deteriorated at merger.   There was no recorded provision for credit losses for the third quarter of 2022, compared with a negative provision for credit losses of $7.0 million for the third quarter of 2021 and a provision for credit losses of $1.0 million for the second quarter of 2022. The allowance for credit losses was $433.4 million, or 1.48% of net loans and leases at September 30, 2022, compared with $440.1 million, or 1.55% of net loans and leases at June 30, 2022.

Noninterest Revenue

Noninterest revenue was $124.5 million for the third quarter of 2022, compared with $84.4 million for the third quarter of 2021 and $125.2 million for the second quarter of 2022. Declines in mortgage production and servicing revenue and credit card, debit card, and merchant fees were offset by increases in deposit service charges and other miscellaneous income.

Insurance commission revenue totaled $39.9 million for the third quarter of 2022, compared with $35.8 million for the third quarter of 2021 and $40.0 million for the second quarter of 2022. Credit card, debit card and merchant fee revenue was $14.5 million for the third quarter of 2022, compared with $16.6 million for the second quarter of 2022. Second quarter 2022 results included an annual incentive payment from our card vendor as well as an annual true-up of revenue based on improved contractual revenue share. Other noninterest revenue was $21.9 million for the third quarter of 2022, compared with $16.4 million for the second quarter of 2022 due primarily to a negative purchase accounting adjustment recorded in the second quarter related to the day one fair value of unfunded commitments acquired in the legacy Cadence transaction.  In addition, other noninterest revenue for the third quarter reflects improved earnings on limited partnership investments. 

Mortgage purchase money production continues to remain active despite the rate environment.  Third quarter of 2022 mortgage origination volume was $769.9 million, compared with $788.9 million for the third quarter of 2021 and $913.0 million for the second quarter of 2022.  Mortgage production and servicing revenue totaled $4.7 million for the third quarter of 2022, compared with $11.0 million for the third quarter of 2021 and $6.8 million for the second quarter of 2022. The mortgage servicing rights valuation adjustment was $4.3 million for the third quarter of 2022, compared with $2.0 million for the third quarter of 2021 and $4.7 million for the second quarter of 2022 with the variances due to continued volatility in the interest rate environment.

Noninterest Expense

Noninterest expense for the third quarter of 2022 was $319.7 million, compared with $179.9 million for the third quarter of 2021 and $285.9 million for the second quarter of 2022. Adjusted noninterest expense for the third quarter of 2022 was $290.2 million, compared with $174.0 million for the third quarter of 2021 and $271.8 million for the second quarter of 2022. The adjusted efficiency ratio was 60.3% for the third quarter of 2022, a slight improvement from 60.5% for the second quarter of 2022. The increase in adjusted noninterest expense compared to the linked quarter was driven primarily by increases in salaries and employee benefits expense as well as other miscellaneous expense.  Salaries and benefits expense increased $9.1 million for the linked quarter, including the impact of merit increases effective July 1, 2022, an increase in incentive compensation linked to corporate performance and a decrease in deferred salaries due to lower mortgage originations this quarter.  Other noninterest expense increased $10.4 million for the linked quarter, including an approximate $7.4 million increase due to non-routine benefits favorably impacting second quarter expenses including a second quarter gain on sale in foreclosed property expense (versus a third quarter loss on same), finalization of intangible asset valuation and related amortization in the second quarter, and various timing of regulatory fees and SBA sold loan costs.  In addition, the Company experienced elevated operating and fraud losses during the third quarter of 2022.

Adjusted noninterest expense for the third quarter of 2022 excludes $26.6 million in total merger related expenses, which includes one-time merger expense shown as a separate line item on the income statement as well as incremental merger related expenses (expenses for which the entity receives future benefit) that are included in the respective expense categories.  Merger expense was $19.7 million for the third quarter of 2022, compared with $3.4 million for the third quarter of 2021 and $7.3 million for the second quarter of 2022. Merger expense for the third quarter of 2022 was comprised primarily of conversion related expenses as well as compensation related items. Incremental merger related expenses for the third quarter of 2022 totaled $6.9 million compared to $6.1 million in the prior quarter and included primarily employee retention, marketing, and technology related expenses.  Adjusted noninterest expense for the third quarter of 2022 also excludes a charge of $2.9 million in accordance with ASC 715 "Compensation - Retirement Benefits" to reflect the settlement accounting impact of elevated lump sum retirement pension payouts during 2022.

Capital Management

Total shareholders' equity was $4.17 billion at September 30, 2022 compared with $3.02 billion at September 30, 2021 and $4.44 billion at June 30, 2022. The decline in the linked quarter is primarily due to a decline in accumulated other comprehensive income (Loss) ("AOCI") resulting from an increase in unrealized losses in the available-for-sale securities portfolio, as a result of continued increases in longer-term interest rates in the quarter.

Estimated regulatory capital ratios at September 30, 2022 included Common Equity Tier 1 capital of 10.25%, Tier 1 capital of 10.70%, Total risk-based capital of 12.84%, and Tier 1 leverage capital of 8.43%.

During the third quarter of 2022, the Company did not repurchase shares of its common stock pursuant to its share repurchase program. Outstanding company shares were 182.4 million shares as of September 30, 2022, a reduction of 5.9 million shares since December 31, 2021.

Summary

Rollins concluded, "It's really an exciting time across our Company and our footprint.  The successful completion of the core systems conversion and the rebranding of all of our locations is a historic event for our bank, and symbolizes that we now operate as one unified brand.  This accomplishment would not have been possible without the unwavering commitment and tireless work of the more than 6,500 teammates in our Company.  As we move forward, we will continue to focus on the important objectives of taking care of the customers and communities we serve and delivering value to our shareholders."

Recent Merger Transaction

Cadence Bancorporation (NYSE: CADE)

On October 29, 2021, the Company completed the merger with Cadence Bancorporation, the parent company of Cadence Bank N.A., (collectively referred to as legacy Cadence), pursuant to which legacy Cadence was merged with and into the Company (the Cadence Merger). Legacy Cadence operated 99 full-service banking offices in the southeast. As of October 29, 2021, legacy Cadence reported total assets of $18.8 billion, total loans of $11.6 billion and total deposits of $16.3 billion. Under the terms of the definitive merger agreement, each legacy Cadence shareholder received 0.70 shares of the Company's common stock in exchange for each share of Cadence common stock they held. In addition, legacy Cadence paid a one-time special dividend of $1.25 per share on October 28, 2021. In connection with the closing of the Cadence merger, the Company changed its name from BancorpSouth Bank to Cadence Bank and also changed its NYSE ticker symbol from BXS to CADE. For more information regarding the Cadence Merger, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation (FDIC) on October 29, 2021 and the 2021 Annual Report Form 10-K filed with the FDIC. Due to the Company's evaluation of post-merger activity and the extensive information gathering and management review processes required to properly record acquired assets and liabilities, the Company considers its valuations of legacy Cadence's assets and liabilities to be provisional estimates as management continues to identify and assess information regarding the nature of these assets and liabilities for the associated valuation assumptions and methodologies used.

Non-GAAP Measures and Ratios

This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). 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 under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 22 of this news release.

Conference Call and Webcast

The Company will conduct a conference call to discuss its third quarter 2022 financial results on October 25, 2022, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing http://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.

About Cadence Bank

Cadence Bank (NYSE: CADE) is a leading regional banking franchise with approximately $50 billion in assets and more than 400 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. 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: potential delays or other problems in implementing and executing the Company's growth, expansion and acquisition strategies, including delays in obtaining regulatory or other necessary approvals or the failure to realize any anticipated benefits or synergies from any acquisitions or growth strategies; general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, and investments; the risks of changes in interest rates and their effects on the level and composition of deposits, loan demand, 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; 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 proposed 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; 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 the adverse effects of the ongoing global COVID-19 pandemic, including the effect of actions taken to mitigate its impact on individuals or the economy broadly; 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.

Risks specifically related to the Cadence Merger include, but are not limited to: the possibility that the anticipated benefits of the merger will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies, or as a result of the strength of the economy and competitive factors in the areas where the combined company does business; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies within the expected timeframes, or at all, and to successfully integrate legacy Cadence's operations and those of the Company or because such integration may be more difficult, time consuming, or costly than expected, including as a result of unexpected factors or events; the risk that revenues following the Cadence Merger may be lower than expected; the ability of the Company and legacy Cadence to meet expectations regarding the timing, completion and accounting and tax treatments of the Cadence Merger; and the risk of potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Cadence Merger. There are also risks of adverse outcomes for any legal proceedings that may be instituted against the Company or legacy Cadence in respect of the Cadence Merger; the risk that any announcements relating to the Cadence Merger could have adverse effects on the market price of the capital stock of the combined company; and risks arising from the dilution caused by the Company's issuance of additional shares of its capital stock in connection with the Cadence Merger and other factors as detailed from time to time in the Company's press and news releases, periodic and current reports, and other filings the Company files with the FDIC.

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 combined 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, 2021, 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.

Selected Financial Data

(Unaudited)


Quarter Ended

Year-to-date

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

Earnings Summary:







Interest revenue

$   405,559

$   349,555

$   331,930

$   290,626

$   199,511

$ 1,087,044

$   591,423

Interest expense

50,205

24,789

20,108

19,414

17,967

95,102

56,908

Net interest revenue

355,354

324,766

311,822

271,212

181,544

991,942

534,515

Provision (release) for credit losses

—

1,000

—

133,562

(7,000)

1,000

4,500

Net interest revenue, after provision for credit losses

355,354

323,766

311,822

137,650

188,544

990,942

530,015

Noninterest revenue

124,491

125,234

128,435

103,854

84,420

378,160

274,299

Noninterest expense

319,734

285,888

291,667

289,194

179,889

897,289

509,696

Income (loss) before income taxes

160,111

163,112

148,590

(47,690)

93,075

471,813

294,618

Income tax expense (benefit)

36,713

36,154

33,643

(13,033)

20,350

106,510

64,799

Net income (loss)

123,398

126,958

114,947

(34,657)

72,725

365,303

229,819

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

7,116

7,116

Net income (loss) available to common shareholders

$   121,026

$   124,586

$   112,575

$    (37,029)

$     70,353

$   358,187

$   222,703









Balance Sheet - Period End Balances






Total assets

$  47,699,660

$  47,747,708

$  47,204,061

$  47,669,751

$  28,060,496

$  47,699,660

$  28,060,496

Total earning assets

42,832,355

43,093,974

42,744,225

43,503,089

25,572,354

42,832,355

25,572,354

Available-for-sale securities

12,441,894

13,450,621

14,371,606

15,606,470

10,053,372

12,441,894

10,053,372

Loans and leases, net of unearned income

29,296,450

28,360,485

27,189,666

26,882,988

14,991,245

29,296,450

14,991,245

Allowance for credit losses (ACL)

433,363

440,112

438,738

446,415

260,276

433,363

260,276

Net book value of acquired loans

8,841,588

9,721,672

11,020,251

11,968,278

1,426,266

8,841,588

1,426,266

Unamortized net discount on acquired loans

58,887

65,350

72,620

77,711

9,863

58,887

9,863

Total deposits

39,003,946

40,189,083

40,568,055

39,817,673

23,538,711

39,003,946

23,538,711

Total deposits and securities sold under agreement to
repurchase

39,682,280

40,838,260

41,271,615

40,504,861

24,243,834

39,682,280

24,243,834

Federal funds purchased and short-term FHLB advances

2,495,000

1,200,000

—

595,000

—

2,495,000

—

Subordinated and long-term debt

463,291

465,073

465,695

482,411

311,858

463,291

311,858

Total shareholders' equity

4,166,925

4,437,925

4,643,757

5,247,987

3,023,257

4,166,925

3,023,257

Total shareholders' equity, excluding AOCI (1)

5,464,737

5,374,270

5,307,757

5,387,356

3,105,884

5,464,737

3,105,884

Common shareholders' equity

3,999,932

4,270,932

4,476,764

5,080,994

2,856,264

3,999,932

2,856,264

Common shareholders' equity, excluding AOCI (1)

$ 5,297,744

$ 5,207,277

$ 5,140,764

$ 5,220,363

$ 2,938,891

$ 5,297,744

$ 2,938,891









Balance Sheet - Average Balances






Total assets

$  47,595,557

$  47,064,829

$  47,679,850

$  40,990,459

$  27,616,585

$  47,446,436

$  26,287,396

Total earning assets

43,079,481

42,688,497

43,515,166

37,210,403

25,220,602

43,092,786

23,936,674

Available-for-sale securities

13,252,828

13,941,127

15,070,524

12,954,547

9,539,814

14,081,502

8,081,730

Loans and leases, net of unearned income

28,872,156

27,848,097

27,106,733

22,745,093

14,915,728

27,948,795

15,138,032

Total deposits

39,600,886

39,396,028

40,565,103

34,759,687

23,162,450

39,850,473

22,016,659

Total deposits and securities sold under agreement to
repurchase

40,256,109

40,062,095

41,259,136

35,479,807

23,914,986

40,522,105

22,720,800

Subordinated and long-term debt

464,843

465,447

466,842

436,111

311,839

465,704

307,472

Total shareholders' equity

4,506,655

4,523,189

5,062,231

4,508,594

3,058,307

4,695,324

2,942,946

Common shareholders' equity

$ 4,339,662

$ 4,356,196

$ 4,895,238

$ 4,341,601

$ 2,891,314

$ 4,528,331

$ 2,775,953









Nonperforming Assets:







Nonaccrual loans and leases

$     89,931

$     89,368

$     91,031

$   122,104

$     59,622

$     89,931

$     59,622

Loans and leases 90+ days past due, still accruing

11,984

19,682

20,957

24,784

17,012

11,984

17,012

Restructured loans and leases, still accruing

16,200

7,385

7,292

6,903

7,165

16,200

7,165

Non-performing loans and leases (NPL)

118,115

116,435

119,280

153,791

83,799

118,115

83,799

Other real estate owned and other assets

8,376

14,399

28,401

33,021

16,515

8,376

16,515

Non-performing assets (NPA)

$   126,491

$   130,834

$   147,681

$   186,812

$   100,314

$   126,491

$   100,314

(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 25.

Selected Financial Data Cont.


Quarter Ended

Year-to-date

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

Financial Ratios and Other Data:







Return on average assets (2)

1.03 %

1.08 %

0.98 %

(0.34) %

1.04 %

1.03 %

1.17 %

Adjusted return on average assets (1)(2))

1.22

1.16

1.05

1.03

1.11

1.15

1.28

Return on average common shareholders' equity (2)

11.06

11.47

9.33

(3.38)

9.65

10.58

10.73

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

13.13

12.36

10.07

9.51

10.28

11.79

11.77

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

17.40

18.11

13.87

(4.71)

14.85

16.32

16.40

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

20.66

19.50

14.98

13.24

15.80

18.19

18.00

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

1.33

1.40

1.26

0.83

1.24

1.33

1.52

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

1.58

1.51

1.36

1.32

1.32

1.48

1.61

Net interest margin-fully taxable equivalent

3.28

3.06

2.92

2.90

2.86

3.09

2.99

Net interest rate spread-fully taxable equivalent

3.05

2.94

2.81

2.78

2.72

2.93

2.83

Efficiency ratio fully tax equivalent (1)

66.49

63.38

66.10

76.94

67.52

65.34

62.90

Adjusted efficiency ratio fully tax equivalent (1)

60.33

60.46

63.52

63.54

65.28

61.40

60.74

Loan/deposit ratio

75.11 %

70.57 %

67.02 %

67.52 %

63.69 %

75.11 %

63.69 %

Full time equivalent employees

6,629

6,659

6,568

6,595

4,770

6,629

4,770









Credit Quality Ratios:







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

0.09 %

(0.02) %

(0.01) %

(0.08) %

(0.05) %

0.02 %

— %

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

—

0.01

—

2.33

(0.19)

—

0.04

ACL to loans and leases, net

1.48

1.55

1.61

1.66

1.74

1.48

1.74

ACL to NPL

366.90

377.99

367.82

290.27

310.60

366.90

310.60

NPL to loans and leases, net

0.40

0.41

0.44

0.57

0.56

0.40

0.56

NPA to total assets

0.27

0.27

0.31

0.39

0.36

0.27

0.36









Equity Ratios:







Total shareholders' equity to total assets

8.74 %

9.29 %

9.84 %

11.01 %

10.77 %

8.74 %

10.77 %

Total common shareholders' equity to total assets

8.39

8.94

9.48

10.66

10.18

8.39

10.18

Tangible common shareholders' equity to tangible assets (1)

5.24

5.82

6.31

7.54

6.82

5.24

6.82

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

7.84

7.70

7.65

7.82

7.11

7.84

7.11









Capital Adequacy (3):







Common Equity Tier 1 capital

10.25 %

10.34 %

10.57 %

11.11 %

10.73 %

10.25 %

10.73 %

Tier 1 capital

10.70

10.81

11.05

11.61

11.63

10.70

11.63

Total capital

12.84

12.99

13.27

13.86

14.27

12.84

14.27

Tier 1 leverage capital

8.43

8.35

8.24

9.90

8.13

8.43

8.13

(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 25.

(2)     Annualized.

(3)     Current quarter regulatory capital ratios are estimated.

Selected Financial Data Cont.


Quarter Ended

Year-to-date

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

Common Share Data:







Diluted earnings (loss) per share

$      0.66

$      0.68

$      0.60

$     (0.22)

$      0.65

$      1.94

$      2.11

Adjusted earnings per share (1)

0.78

0.73

0.65

0.63

0.69

2.16

2.31

Cash dividends per share

0.22

0.22

0.22

0.20

0.20

0.66

0.58

Book value per share

21.92

23.41

24.40

26.98

26.73

21.92

26.73

Tangible book value per share (1)

13.25

14.73

15.67

18.45

17.27

13.25

17.27

Market value per share (last)

25.41

23.48

29.26

29.79

29.78

25.41

29.78

Market value per share (high)

28.54

29.75

34.24

32.12

30.55

34.24

30.55

Market value per share (low)

22.04

22.82

27.95

27.25

24.87

22.04

24.87

Market value per share (avg)

25.68

25.74

31.20

30.20

27.89

27.52

27.89

Dividend payout ratio

33.33 %

32.44 %

36.60 %

NM   

30.71 %

34.02 %

27.49 %

Adjusted dividend payout ratio (1)

28.21 %

30.14 %

33.85 %

31.75 %

28.99 %

30.56 %

25.11 %

Total shares outstanding

182,438,780

182,461,786

183,488,844

188,337,658

106,853,316

182,438,780

106,853,316

Average shares outstanding - diluted

183,313,831

183,711,402

187,264,335

164,720,656

108,250,102

184,747,880

105,599,914









Yield/Rate:







(Taxable equivalent basis)







Loans, loans held for sale, and leases

4.82 %

4.29 %

4.23 %

4.34 %

4.46 %

4.45 %

4.47 %

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

4.70

4.12

3.96

4.06

4.38

4.27

4.39

Available-for-sale securities:







Taxable

1.44

1.37

1.26

1.17

1.20

1.35

1.24

Tax-exempt

3.05

2.95

2.57

2.54

2.88

2.85

3.04

Other investments

2.32

1.03

0.24

0.25

0.20

1.10

0.16

Total interest earning assets and revenue

3.74

3.29

3.10

3.11

3.15

3.38

3.31

Deposits

0.35

0.17

0.15

0.17

0.24

0.22

0.28

Interest bearing demand and money market

0.60

0.26

0.20

0.21

0.31

0.35

0.35

Savings

0.17

0.06

0.06

0.14

0.09

0.10

0.10

Time

0.56

0.47

0.52

0.58

0.91

0.52

1.02

Total interest bearing deposits

0.53

0.26

0.23

0.26

0.36

0.34

0.41

Short-term borrowings

1.89

0.74

0.11

0.11

0.10

1.16

0.12

Total interest bearing deposits and short-term
borrowings

0.64

0.29

0.22

0.25

0.35

0.39

0.40

Long-term debt

4.16

4.14

4.19

3.95

4.47

4.16

4.47

Total interest bearing liabilities

0.70

0.36

0.29

0.32

0.43

0.45

0.48

Interest bearing liabilities to interest earning assets

66.19 %

65.25 %

64.46 %

64.18 %

66.04 %

65.30 %

66.36 %

Net interest income tax equivalent adjustment

$     1,052

$     1,063

$     1,027

$       824

$       446

$     3,141

$     1,564

(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 25.

Consolidated Balance Sheets

(Unaudited)


As of

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

ASSETS




Cash and due from banks

$         693,999

$         770,293

$         781,310

$         656,132

$         301,246

Interest bearing deposits with other banks and Federal
funds sold

895,630

1,069,410

880,742

638,547

150,778

Available-for-sale securities, at fair value

12,441,894

13,450,621

14,371,606

15,606,470

10,053,372

Loans and leases, net of unearned income

29,296,450

28,360,485

27,189,666

26,882,988

14,991,245

Allowance for credit losses

433,363

440,112

438,738

446,415

260,276

Net loans and leases

28,863,087

27,920,373

26,750,928

26,436,573

14,730,969

Loans held for sale, at fair value

198,381

213,458

302,211

340,175

342,871

Premises and equipment, net

802,382

782,728

781,209

786,426

533,999

Goodwill

1,449,511

1,444,209

1,409,038

1,407,948

958,304

Other intangible assets, net

132,953

138,370

191,642

198,271

52,235

Bank-owned life insurance

624,696

601,601

599,346

597,953

359,740

Other assets

1,597,127

1,356,645

1,136,029

1,001,256

576,982

Total Assets

$    47,699,660

$    47,747,708

$    47,204,061

$    47,669,751

$    28,060,496

LIABILITIES




Deposits:




Demand: Noninterest bearing

$    13,839,649

$    14,012,529

$    14,458,563

$    13,634,505

$      7,700,216

Interest bearing

18,033,648

19,032,983

18,854,543

18,727,588

10,285,371

 Savings

3,676,340

3,735,925

3,713,629

3,556,079

3,054,756

 Time deposits

3,454,309

3,407,646

3,541,320

3,899,501

2,498,368

Total deposits

39,003,946

40,189,083

40,568,055

39,817,673

23,538,711

Securities sold under agreement to repurchase

678,334

649,177

703,560

687,188

705,123

Federal funds purchased and short-term FHLB
borrowings

2,495,000

1,200,000

—

595,000

—

Subordinated and long-term debt

463,291

465,073

465,695

482,411

311,858

Other liabilities

892,164

806,450

822,994

839,492

481,547

Total Liabilities

43,532,735

43,309,783

42,560,304

42,421,764

25,037,239

SHAREHOLDERS' EQUITY




Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,097

456,154

458,722

470,844

267,133

Capital surplus

2,695,646

2,686,031

2,701,371

2,841,998

688,637

Accumulated other comprehensive loss

(1,297,812)

(936,345)

(664,000)

(139,369)

(82,627)

Retained earnings

2,146,001

2,065,092

1,980,671

1,907,521

1,983,121

Total Shareholders' Equity

4,166,925

4,437,925

4,643,757

5,247,987

3,023,257

Total Liabilities & Shareholders' Equity

$    47,699,660

$    47,747,708

$    47,204,061

$    47,669,751

$    28,060,496

Consolidated Quarterly Average Balance Sheets 

(Unaudited)

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

ASSETS




Cash and due from banks

$         654,589

$         640,672

$         656,630

$         792,315

$         288,199

Interest bearing deposits with other banks and Federal
funds sold

851,185

751,972

1,161,262

1,253,722

495,982

Available-for-sale securities, at fair value

13,252,828

13,941,127

15,070,524

12,954,547

9,539,814

Loans and leases, net of unearned income

28,872,156

27,848,097

27,106,733

22,745,093

14,915,728

Allowance for credit losses

441,042

438,752

444,294

404,578

264,067

Net loans and leases

28,431,114

27,409,345

26,662,439

22,340,515

14,651,661

Loans held for sale, at fair value

103,312

147,301

176,647

220,766

242,422

Premises and equipment, net

809,799

784,247

785,005

690,031

534,071

Goodwill

1,444,331

1,407,452

1,407,973

1,115,502

957,899

Other intangible assets, net

136,149

188,897

195,606

106,559

53,567

Bank-owned life insurance

613,973

599,912

598,822

517,511

357,429

Other assets

1,298,277

1,193,904

964,942

998,991

495,541

Total Assets

$    47,595,557

$    47,064,829

$    47,679,850

$    40,990,459

$    27,616,585

LIABILITIES




Deposits:




Demand: Noninterest bearing

$    13,816,796

$    13,970,163

$    13,806,591

$    12,047,637

$      7,579,513

Interest bearing

18,675,214

18,238,571

19,401,019

15,811,268

10,027,346

 Savings

3,720,218

3,723,193

3,631,699

3,374,243

3,001,406

 Time deposits

3,388,658

3,464,101

3,725,794

3,526,539

2,554,185

Total deposits

39,600,886

39,396,028

40,565,103

34,759,687

23,162,450

Securities sold under agreement to repurchase

655,223

666,067

694,033

720,120

752,536

Federal funds purchased and short-term FHLB borrowings

1,608,587

1,294,946

131,556

7,554

8,706

Subordinated and long-term debt

464,843

465,447

466,842

436,111

311,839

Other liabilities

759,363

719,152

760,085

558,393

322,747

Total Liabilities

43,088,902

42,541,640

42,617,619

36,481,865

24,558,278

SHAREHOLDERS' EQUITY




Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

456,130

457,713

465,458

404,522

270,098

Capital surplus

2,689,340

2,694,546

2,779,746

2,139,357

717,022

Accumulated other comprehensive loss

(922,673)

(821,034)

(283,417)

(103,554)

(35,408)

Retained earnings

2,116,865

2,024,971

1,933,451

1,901,276

1,939,602

Total Shareholders' Equity

4,506,655

4,523,189

5,062,231

4,508,594

3,058,307

Total Liabilities & Shareholders' Equity

$    47,595,557

$    47,064,829

$    47,679,850

$    40,990,459

$    27,616,585

Consolidated Statements of Income (Loss)

(Unaudited)


Quarter Ended

Year-to-date

(Dollars in thousands, except per share data)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

INTEREST REVENUE:







Loans and leases

$   349,093

$   296,680

$   282,266

$   249,614

$   168,066

$   928,039

$   508,566

Available-for-sale securities:







Taxable

46,701

46,254

45,155

37,258

28,617

138,110

73,792

Tax-exempt

2,548

2,571

2,414

1,608

490

7,533

1,853

Loans held for sale

2,241

2,118

1,407

1,324

2,076

5,766

6,711

Other interest revenue

4,976

1,932

688

822

262

7,596

501

Total interest revenue

405,559

349,555

331,930

290,626

199,511

1,087,044

591,423

INTEREST EXPENSE:







Interest bearing demand deposits and money market
accounts

28,175

11,717

9,742

8,485

7,723

49,636

24,766

Savings

1,597

590

568

1,203

672

2,753

1,998

Time deposits

4,797

4,041

4,764

5,139

5,861

13,602

19,255

Federal funds purchased and securities sold under
agreement to repurchase

3,944

906

216

200

204

5,067

613

Short-term debt

6,821

2,733

5

—

—

9,560

—

Subordinated and long-term debt

4,870

4,801

4,813

4,387

3,505

14,482

10,250

Other interest expense

1

1

—

—

2

2

26

Total interest expense

50,205

24,789

20,108

19,414

17,967

95,102

56,908

Net interest revenue

355,354

324,766

311,822

271,212

181,544

991,942

534,515

Provision (release) for credit losses

—

1,000

—

133,562

(7,000)

1,000

4,500

Net interest revenue, after provision for credit losses

355,354

323,766

311,822

137,650

188,544

990,942

530,015









NONINTEREST REVENUE:







Mortgage banking

9,080

11,446

21,763

10,580

13,058

42,289

47,473

Credit card, debit card and merchant fees

14,497

16,593

11,321

12,016

10,692

42,410

30,619

Deposit service charges

19,943

19,126

19,898

17,680

11,580

58,968

31,235

Security (losses) gains, net

(139)

1,446

(1,097)

(378)

(195)

211

(17)

Insurance commissions

39,876

39,994

35,727

32,637

35,773

115,596

102,546

Wealth management

19,335

20,213

21,737

16,352

7,147

61,286

23,155

Gain on sale of PPP loans

—

—

—

—

—

—

21,572

Other noninterest income

21,899

16,416

19,086

14,967

6,365

57,400

17,716

Total noninterest revenue

124,491

125,234

128,435

103,854

84,420

378,160

274,299









NONINTEREST EXPENSE:







Salaries and employee benefits

191,193

182,094

187,819

149,599

112,968

561,106

322,216

Occupancy and equipment

30,610

30,129

28,270

26,885

18,977

89,008

54,509

Data processing and software

28,079

29,081

27,483

24,838

16,799

84,644

48,247

Merger expense

19,690

7,274

3,974

44,843

3,442

30,938

15,053

Deposit insurance assessments

4,499

4,945

3,336

3,278

2,330

12,781

5,423

Pension settlement expense

2,896

—

—

651

2,400

2,896

2,400

Other noninterest expense

42,767

32,365

40,785

39,100

22,973

115,916

61,848

Total noninterest expense

319,734

285,888

291,667

289,194

179,889

897,289

509,696

Income (loss) before income taxes

160,111

163,112

148,590

(47,690)

93,075

471,813

294,618

Income tax expense (benefit)

36,713

36,154

33,643

(13,033)

20,350

106,510

64,799

Net income (loss)

123,398

126,958

114,947

(34,657)

72,725

365,303

229,819

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

7,116

7,116

Net income (loss) available to common shareholders

$   121,026

$   124,586

$   112,575

$    (37,029)

$     70,353

$   358,187

$   222,703

Net income (loss) per common share: Diluted

$         0.66

$         0.68

$         0.60

$       (0.22)

$         0.65

$         1.94

$         2.11

Selected Loan Portfolio Data

(Unaudited)


Quarter Ended

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

LOAN AND LEASE PORTFOLIO:




Commercial and industrial




Non-real estate

$      8,803,381

$      8,526,481

$      8,017,958

$      7,847,473

$      2,210,287

Owner occupied

3,943,442

3,851,336

3,703,914

3,567,746

2,611,777

Total commercial and industrial

12,746,823

12,377,817

11,721,872

11,415,219

4,822,064

Commercial real estate




Construction, acquisition and development

3,244,425

2,982,119

3,028,514

2,924,343

1,797,559

Income producing

5,098,470

5,054,232

4,795,486

4,924,369

3,443,967

Total commercial real estate

8,342,895

8,036,351

7,824,000

7,848,712

5,241,526

Consumer




Residential mortgages

7,924,378

7,662,621

7,355,995

7,311,306

4,698,328

Other consumer

282,354

283,696

287,799

307,751

229,327

Total consumer

8,206,732

7,946,317

7,643,794

7,619,057

4,927,655

Total loans and leases, net of unearned

$    29,296,450

$    28,360,485

$    27,189,666

$    26,882,988

$    14,991,245






NON-PERFORMING ASSETS




Non-performing Loans and Leases




Nonaccrual Loans and Leases




Commercial and industrial




Non-real estate

$           23,916

$           34,233

$           33,086

$           33,690

$           13,170

Owner occupied

8,327

9,567

11,787

22,058

13,738

Total commercial and industrial

32,243

43,800

44,873

55,748

26,908

Commercial real estate




Construction, acquisition and development

1,823

2,125

1,618

5,568

3,292

Income producing

8,580

8,750

9,688

16,086

8,403

Total commercial real estate

10,403

10,875

11,306

21,654

11,695

Consumer




Residential mortgages

46,671

34,172

34,278

44,180

20,821

Other consumer

614

521

574

522

198

Total consumer

47,285

34,693

34,852

44,702

21,019

Total nonaccrual loans and leases

$           89,931

$           89,368

$           91,031

$         122,104

$           59,622






Loans and Leases 90+ Days Past Due, Still Accruing

11,984

19,682

20,957

24,784

17,012

Restructured Loans and Leases, Still Accruing

16,200

7,385

7,292

6,903

7,165

Total non-performing loans and leases

$         118,115

$         116,435

$         119,280

$         153,791

$           83,799






Other Real Estate Owned and Other Repossessed
Assets

8,376

14,399

28,401

33,021

16,515

Total Non-performing Assets

$         126,491

$         130,834

$         147,681

$         186,812

$         100,314






Additions to Nonaccrual Loans and Leases during the
Quarter (excluding acquisitions)

$           34,432

$           21,312

$           16,374

$           22,158

$           19,858

Allowance for Credit Losses

(Unaudited)


Quarter Ended

(Dollars in thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

ALLOWANCE FOR CREDIT LOSSES:




Balance, beginning of period

$      440,112

$      438,738

$      446,415

$      260,276

$      265,720






Charge-offs:




Commercial and industrial

(11,551)

(2,170)

(2,682)

(2,712)

(1,488)

Commercial real estate

(1,116)

(275)

(313)

(586)

(131)

Consumer

(2,653)

(1,941)

(1,792)

(2,342)

(1,694)

Total loans charged-off

(15,320)

(4,386)

(4,787)

(5,640)

(3,313)






Recoveries:




Commercial and industrial

3,657

3,217

3,178

7,835

3,787

Commercial real estate

3,509

1,076

437

1,047

646

Consumer

1,405

1,467

1,612

1,521

936

Total recoveries

8,571

5,760

5,227

10,403

5,369






Net (charge-offs) recoveries

(6,749)

1,374

440

4,763

2,056






Initial allowance on loans purchased with credit
deterioration

—

—

(8,117)

62,321

—

Provision:




Loans and leases acquired during the quarter

—

—

—

119,055

—

Provision (release) for credit losses related to loans
and leases

—

—

—

—

(7,500)

Total provision for loans and leases

—

—

—

119,055

(7,500)






Balance, end of period

$      433,363

$      440,112

$      438,738

$      446,415

$      260,276






Average loans and leases, net of unearned, for period

$ 28,872,156

$ 27,848,097

$ 27,106,733

$ 22,745,093

$ 14,915,728






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

0.09 %

(0.02) %

(0.01) %

(0.08) %

(0.05) %






RESERVE FOR UNFUNDED COMMITMENTS (1)




Balance, beginning of period

$        24,551

$        23,551

$        23,551

$          9,044

$          8,544

Provision for unfunded commitments for loans
acquired during the quarter

—

—

—

13,007

—

Provision for credit losses for unfunded commitments

—

1,000

—

1,500

500

Balance, end of period

$        24,551

$        24,551

$        23,551

$        23,551

$          9,044

(1)     The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheet.

(2)     Annualized.

Loan Portfolio by Grades

(Unaudited)



September 30, 2022

(In thousands)

Pass

Special
Mention

Substandard

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:





Commercial and industrial





Non-real estate

$   8,564,230

$        60,616

$      168,174

$          5,947

$          4,414

$   8,803,381

Owner occupied

3,899,192

1,758

37,019

3,576

1,897

3,943,442

Total commercial and industrial

12,463,422

62,374

205,193

9,523

6,311

12,746,823

Commercial real estate





Construction, acquisition and development

3,216,949

17,597

3,725

—

6,154

3,244,425

Income producing

4,973,000

14,363

89,573

705

20,829

5,098,470

Total commercial real estate

8,189,949

31,960

93,298

705

26,983

8,342,895

Consumer





Residential mortgages

7,789,212

1,156

132,510

—

1,500

7,924,378

Other consumer

278,815

—

3,539

—

—

282,354

Total consumer

8,068,027

1,156

136,049

—

1,500

8,206,732

Total loans and leases, net of unearned

$ 28,721,398

$        95,490

$      434,540

$        10,228

$        34,794

$ 29,296,450


June 30, 2022

(In thousands)

Pass

Special
Mention

Substandard

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:





Commercial and industrial





Non-real estate

$    8,360,393

$         48,665

$         98,031

$           6,661

$         12,731

$    8,526,481

Owner occupied

3,805,811

1,735

36,098

3,622

4,070

3,851,336

Total commercial and industrial

12,166,204

50,400

134,129

10,283

16,801

12,377,817

Commercial real estate





Construction, acquisition and development

2,963,169

423

12,475

993

5,059

2,982,119

Income producing

4,931,450

3,083

92,887

704

26,108

5,054,232

Total commercial real estate

7,894,619

3,506

105,362

1,697

31,167

8,036,351

Consumer





Residential mortgages

7,542,086

756

117,771

598

1,410

7,662,621

Other consumer

275,105

—

8,591

—

—

283,696

Total consumer

7,817,191

756

126,362

598

1,410

7,946,317

Total loans and leases, net of unearned

$  27,878,014

$         54,662

$       365,853

$         12,578

$         49,378

$  28,360,485

Geographical Loan Information

(Unaudited)


September 30, 2022

(Dollars in thousands)

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:










Commercial and industrial










Non-real estate

$  349,832

$  162,760

$  393,595

$  519,730

$  345,539

$  475,031

$    65,512

$  321,528

$ 3,812,763

$  2,357,091

$ 8,803,381

Owner occupied

349,354

244,482

323,891

279,264

290,926

554,072

91,611

172,550

1,456,766

180,526

3,943,442

Total commercial and industrial

699,186

407,242

717,486

798,994

636,465

1,029,103

157,123

494,078

5,269,529

2,537,617

12,746,823

Commercial real estate










Construction, acquisition and
development

191,703

81,362

210,076

328,010

58,871

204,065

33,441

148,321

1,620,083

368,493

3,244,425

Income producing

428,514

250,807

329,519

654,233

212,723

439,077

193,106

289,768

1,875,365

425,358

5,098,470

Total commercial real estate

620,217

332,169

539,595

982,243

271,594

643,142

226,547

438,089

3,495,448

793,851

8,342,895

Consumer










Residential mortgages

1,120,555

363,247

537,874

354,043

435,941

1,009,632

149,603

605,962

3,126,062

221,459

7,924,378

Other consumer

26,611

10,556

4,940

14,400

9,644

55,147

1,091

9,858

59,159

90,948

282,354

Total consumer

1,147,166

373,803

542,814

368,443

445,585

1,064,779

150,694

615,820

3,185,221

312,407

8,206,732

Total loans and leases, net of
unearned

$  2,466,569

$  1,113,214

$  1,799,895

$  2,149,680

$  1,353,644

$  2,737,024

$  534,364

$  1,547,987

$  11,950,198

$  3,643,875

$  29,296,450












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

$  (33,431)

$    16,492

$  118,322

$    28,751

$    18,538

$    73,430

$  (48,762)

$    26,012

$  419,252

$  317,361

$  935,965

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

(5.31) %

5.97 %

27.92 %

5.38 %

5.51 %

10.94 %

(33.18) %

6.78 %

14.42 %

37.85 %

13.09 %



June 30, 2022

(Dollars in thousands)

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:










Commercial and industrial










Non-real estate

$      399,110

$      156,007

$      411,175

$      530,835

$      325,925

$      430,355

$        90,777

$      321,900

$   3,703,419

$   2,156,978

$   8,526,481

Owner occupied

351,129

244,194

293,162

279,972

292,640

560,825

91,523

173,170

1,402,562

162,159

3,851,336

Total commercial and industrial

750,239

400,201

704,337

810,807

618,565

991,180

182,300

495,070

5,105,981

2,319,137

12,377,817

Commercial real estate










Construction, acquisition and
development

199,673

73,486

209,715

258,645

57,377

180,636

30,569

130,391

1,434,138

407,489

2,982,119

Income producing

411,413

258,831

266,141

682,813

219,774

447,697

224,522

305,954

1,834,915

402,172

5,054,232

Total commercial real estate

611,086

332,317

475,856

941,458

277,151

628,333

255,091

436,345

3,269,053

809,661

8,036,351

Consumer










Residential mortgages

1,109,209

353,935

496,593

355,796

430,005

990,346

144,652

580,814

3,094,629

106,642

7,662,621

Other consumer

29,466

10,269

4,787

12,868

9,385

53,735

1,083

9,746

61,283

91,074

283,696

Total consumer

1,138,675

364,204

501,380

368,664

439,390

1,044,081

145,735

590,560

3,155,912

197,716

7,946,317

Total loans and leases, net of
unearned

$   2,500,000

$   1,096,722

$   1,681,573

$   2,120,929

$   1,335,106

$   2,663,594

$      583,126

$   1,521,975

$ 11,530,946

$   3,326,514

$ 28,360,485

Noninterest Revenue and Expense

(Unaudited)


Quarter Ended

Year-to-date

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

NONINTEREST REVENUE:







Mortgage banking excl. MSR and MSR
hedge market value adjustment

$        4,746

$        6,754

$        7,733

$        7,963

$      11,009

$      19,234

$      39,951

MSR and MSR hedge market value
adjustment

4,333

4,692

14,030

2,617

2,049

23,055

7,522

Credit card, debit card and merchant fees

14,497

16,593

11,321

12,016

10,692

42,410

30,619

Deposit service charges

19,943

19,126

19,898

17,680

11,580

58,968

31,235

Security (losses) gains, net

(139)

1,446

(1,097)

(378)

(195)

211

(17)

Insurance commissions

39,876

39,994

35,727

32,637

35,773

115,596

102,546

Trust income

9,011

9,129

10,061

7,892

4,735

28,201

14,298

Annuity fees

600

753

604

435

50

1,957

151

Brokerage commissions and fees

9,724

10,331

11,072

8,025

2,362

31,128

8,706

Gain on sale of PPP loans

—

—

—

—

—

—

21,572

Bank-owned life insurance

3,537

3,285

3,336

3,098

4,217

10,158

8,082

Other miscellaneous income

18,363

13,131

15,750

11,869

2,148

47,242

9,634

Total noninterest revenue

$    124,491

$    125,234

$    128,435

$    103,854

$      84,420

$    378,160

$    274,299









NONINTEREST EXPENSE:







Salaries and employee benefits

$    191,193

$    182,094

$    187,819

$    149,599

$    112,968

$    561,106

$    322,216

Occupancy, net of rental income

22,743

21,109

20,346

19,477

13,443

64,199

39,444

Equipment

7,867

9,020

7,924

7,408

5,534

24,809

15,065

Deposit insurance assessments

4,499

4,945

3,336

3,278

2,330

12,781

5,423

Pension settlement expense

2,896

—

—

651

2,400

2,896

2,400

Advertising

1,981

2,030

2,716

2,721

988

6,727

2,775

Foreclosed property expense

1,093

(1,104)

440

689

2,189

430

3,859

Telecommunications

1,882

1,984

1,833

1,725

1,600

5,699

4,515

Public relations

2,104

2,387

1,877

2,365

1,166

6,368

2,919

Data processing

17,710

18,089

16,824

15,606

11,297

52,623

32,745

Computer software

10,369

10,992

10,659

9,232

5,502

32,020

15,502

Amortization of intangibles

5,417

3,042

6,780

5,473

2,424

15,240

7,143

Legal

2,054

1,463

1,793

1,282

814

5,310

2,754

Merger expense

19,690

7,274

3,974

44,843

3,442

30,938

15,053

Postage and shipping

2,098

2,022

2,034

1,772

1,414

6,154

4,278

Other miscellaneous expense

26,138

20,541

23,312

23,073

12,378

69,989

33,605

Total noninterest expense

$    319,734

$    285,888

$    291,667

$    289,194

$    179,889

$    897,289

$    509,696









INSURANCE COMMISSIONS:







Property and casualty commissions

$      30,021

$      29,220

$      25,852

$      23,640

$      26,413

$      85,093

$      74,402

Life and health commissions

7,254

7,935

7,143

6,459

6,543

22,332

20,167

Risk management income

654

674

757

699

676

2,085

1,900

Other

1,947

2,165

1,975

1,839

2,141

6,086

6,077

Total insurance commissions

$      39,876

$      39,994

$      35,727

$      32,637

$      35,773

$    115,596

$    102,546

Average Balance and Yields

(Unaudited)


Quarter Ended

September 30, 2022

June 30, 2022

September 30, 2021

(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

$ 28,872,156

$   341,334

4.69 %

$  27,848,097

$   285,345

4.11 %

$ 14,915,728

$   165,207

4.39 %

Accretion income on acquired
loans

8,134

0.11

11,714

0.17

3,175

0.08

Loans held for sale

103,312

2,241

8.61

147,301

2,118

5.77

242,422

2,076

3.40

Investment securities












Taxable

12,833,857

46,701

1.44

13,499,222

46,254

1.37

9,454,514

28,617

1.20

Tax-exempt

418,971

3,225

3.05

441,905

3,255

2.95

85,300

620

2.88

Total investment securities

13,252,828

49,926

1.49

13,941,127

49,509

1.42

9,539,814

29,237

1.22

Other investments

851,185

4,976

2.32

751,972

1,932

1.03

522,638

262

0.20

Total interest-earning assets

43,079,481

406,611

3.74 %

42,688,497

350,618

3.29 %

25,220,602

199,957

3.15 %

Other assets

4,957,118


4,815,084


2,660,050

Allowance for credit losses

441,042


438,752


264,067

Total assets

$ 47,595,557


$  47,064,829


$ 27,616,585













LIABILITIES AND
SHAREHOLDERS' EQUITY










Interest-bearing liabilities:










Interest bearing demand and
money market

$ 18,675,214

$     28,175

0.60 %

$  18,238,571

$     11,717

0.26 %

$ 10,027,346

7,723

0.31 %

Savings deposits

3,720,218

1,597

0.17

3,723,193

590

0.06

3,001,406

672

0.09

Time deposits

3,388,658

4,797

0.56

3,464,101

4,041

0.47

2,554,185

5,861

0.91

Total interest-bearing
deposits

25,784,090

34,569

0.53

25,425,865

16,348

0.26

15,582,937

14,256

0.36

Short-term borrowings

2,263,810

10,765

1.89

1,961,013

3,639

0.74

761,242

204

0.11

Long-term borrowings

464,843

4,871

4.16

465,447

4,802

4.14

311,839

3,507

4.46

Total interest-bearing
liabilities

28,512,743

50,205

0.70 %

27,852,325

24,789

0.36 %

16,656,018

17,967

0.43 %

Noninterest-bearing liabilities:










Demand deposits

13,816,796


13,970,163


7,579,513

Other liabilities

759,363


719,152


322,747

Total liabilities

43,088,902


42,541,640


24,558,278

Shareholders' equity

4,506,655


4,523,189


3,058,307

Total liabilities and
shareholders' equity

$ 47,595,557


$  47,064,829


$ 27,616,585

Net interest income/net interest
spread

356,406

3.05 %

325,829

2.94 %

181,990

2.72 %

Net yield on earning assets/net
interest margin

3.28 %


3.06 %


2.86 %

Taxable equivalent adjustment:










Loans and investment securities

(1,052)


(1,063)


(446)

Net interest revenue

$   355,354


$   324,766


$   181,544

Average Balance and Yields Cont.


Year-To-Date

September 30, 2022

September 30, 2021

(Dollars in thousands)

Average

Balance

Income/
Expense

Yield/

Rate

Average

Balance

Income/
Expense

Yield/

Rate

ASSETS






Interest-earning assets:






Loans and leases, excluding accretion

$   27,948,795

$      891,585

4.27 %

$   15,138,032

$      499,866

4.41 %

Accretion income on acquired loans

37,592

0.18

9,772

0.09

Loans held for sale

142,152

5,766

5.42 %

297,885

6,711

3.01 %

Investment securities






Taxable

13,633,964

138,110

1.35 %

7,978,632

73,792

1.24 %

Tax-exempt

447,538

9,536

2.85

103,098

2,345

3.04

Total investment securities

14,081,502

147,646

1.40

8,081,730

76,137

1.26

Other investments

920,337

7,596

1.10

419,027

501

0.16

Total interest-earning assets

43,092,786

1,090,185

3.38 %

23,936,674

592,987

3.31

Other assets

4,795,001


2,601,498

Allowance for credit losses

441,351


250,776

Total assets

$   47,446,436


$   26,287,396









LIABILITIES AND SHAREHOLDERS'
EQUITY






Interest-bearing liabilities:






Interest bearing demand and money market

$   18,768,943

49,636

0.35 %

$     9,531,362

$        24,766

0.35 %

Savings deposits

3,692,027

2,753

0.10

2,802,524

1,998

0.10

Time deposits

3,524,949

13,602

0.52

2,534,747

19,255

1.02

Total interest-bearing deposits

25,985,919

65,991

0.34

14,868,633

46,019

0.41

Short-term borrowings

1,688,738

14,627

1.16

708,870

613

0.12

Long-term borrowings

465,704

14,484

4.16

307,472

10,276

4.47

Total interest-bearing liabilities

28,140,361

95,102

0.45 %

15,884,975

56,908

0.48 %

Noninterest-bearing liabilities:






Demand deposits

13,864,554


7,148,026

Other liabilities

746,197


311,449

Total liabilities

42,751,112


23,344,450

Shareholders' equity

4,695,324


2,942,946

Total liabilities and shareholders' equity

$   47,446,436


$   26,287,396

Net interest income/net interest spread

995,083

2.93 %

536,079

2.83 %

Net yield on earning assets/net interest margin

3.09 %


2.99 %

Taxable equivalent adjustment:






Loans and investment securities

(3,141)


(1,564)

Net interest revenue

$      991,942


$      534,515

Selected Additional Data

(Unaudited)



Quarter Ended

(Dollars in thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

MORTGAGE SERVICING RIGHTS ("MSR"):




Fair value, beginning of period

$      102,021

$        92,859

$        69,552

$        64,684

$        60,615

Originations of servicing assets

3,890

4,962

5,155

5,709

5,798

Changes in fair value:




Due to payoffs/paydowns

(3,085)

(3,253)

(3,147)

(3,823)

(3,919)

Due to update in valuation assumptions

9,941

7,453

21,299

2,982

2,190

Fair value, end of period

$      112,767

$      102,021

$        92,859

$        69,552

$        64,684






MORTGAGE BANKING REVENUE:




Origination

$          1,916

$          4,042

$          5,118

$          5,970

$          9,284

Servicing

5,915

5,965

5,762

5,816

5,644

Payoffs/Paydowns

(3,085)

(3,253)

(3,147)

(3,823)

(3,919)

Total mortgage banking revenue excluding MSR

4,746

6,754

7,733

7,963

11,009

Market value adjustment on MSR

9,941

7,453

21,299

2,983

2,190

Market value adjustment on MSR Hedge

(5,606)

(2,762)

(7,269)

(365)

(141)

Total mortgage banking revenue

$          9,080

$        11,446

$        21,763

$        10,580

$        13,058






Mortgage loans serviced

$   7,723,605

$   7,685,994

$   7,629,119

$   7,553,917

$   7,455,113

MSR/mortgage loans serviced

1.46 %

1.33 %

1.22 %

0.92 %

0.87 %


Quarter Ended

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

AVAILABLE-FOR-SALE SECURITIES, at fair value




U.S. Treasury securities

$      1,451,461

$      1,466,313

$      1,459,845

$      1,496,465

$                  —

Obligations of U.S. government agencies

1,820,913

2,133,561

2,350,810

2,638,442

2,575,564

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




Residential pass-through:




Guaranteed by GNMA

87,063

95,955

105,900

113,427

52,625

Issued by FNMA and FHLMC

6,427,152

7,014,715

7,604,829

8,129,191

5,773,462

Other residential mortgage-back securities

181,317

201,440

212,216

243,357

—

Commercial mortgage-backed securities

1,880,949

1,899,785

1,951,367

2,061,133

1,518,556

Total MBS

8,576,481

9,211,895

9,874,312

10,547,108

7,344,643

Obligations of states and political subdivisions

444,953

485,400

530,241

565,520

112,152

Other domestic debt securities

98,615

101,313

103,117

63,645

21,013

Foreign debt securities

49,471

52,139

53,281

295,290

—

Total available-for-sale securities

$    12,441,894

$    13,450,621

$    14,371,606

$    15,606,470

$    10,053,372

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 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, adjusted pre-tax pre-provision net revenue to total average assets, adjusted earnings per common share, 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 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

Adjusted net income available to common
shareholders







Net income (loss)

$     123,398

$     126,958

$     114,947

$     (34,657)

$       72,725

$     365,303

$     229,819

Plus: Merger expense

19,690

7,274

3,974

44,843

3,442

30,938

15,053

Incremental merger related expense

6,912

6,060

6,571

4,633

—

19,543

—

Initial provision for acquired loans

—

—

—

132,062

—

—

11,500

Branch closing expense

6

705

128

—

—

839

—

Pension settlement expense

2,896

—

—

651

2,400

2,896

2,400

Less: Security (losses) gains, net

(139)

1,446

(1,097)

(378)

(195)

211

(17)

Tax adjustment

7,016

2,981

2,786

41,453

1,506

12,783

7,228

Adjusted net income

146,025

136,570

123,931

106,457

77,256

406,525

251,561

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

7,116

7,116

Adjusted net income available to common
shareholders

$     143,653

$     134,198

$     121,559

$     104,085

$       74,884

$     399,409

$     244,445


Quarter Ended

Year-to-date

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

Pre-tax pre-provision net revenue







Net income (loss)

$    123,398

$    126,958

$    114,947

$     (34,657)

$      72,725

$    365,303

$    229,819

Plus: Provision (release) for credit losses

—

1,000

—

133,562

(7,000)

1,000

4,500

Income tax expense (benefit)

36,713

36,154

33,643

(13,033)

20,350

106,510

64,799

Pre-tax pre-provision net revenue

$    160,111

$    164,112

$    148,590

$      85,872

$      86,075

$    472,813

$    299,118


Quarter Ended

Year-to-date

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

Adjusted pre-tax pre-provision net revenue







Net income (loss)

$     123,398

$     126,958

$     114,947

$     (34,657)

$       72,725

$     365,303

$     229,819

Plus: Provision (release) for credit losses

—

1,000

—

133,562

(7,000)

1,000

4,500

Merger expense

19,690

7,274

3,974

44,843

3,442

30,938

15,053

Incremental merger related expense

6,912

6,060

6,571

4,633

—

19,543

—

Branch closing expense

6

705

128

—

—

839

—

Pension settlement expense

2,896

—

—

651

2,400

2,896

2,400

Income tax expense (benefit)

36,713

36,154

33,643

(13,033)

20,350

106,510

64,799

Less: Security (losses) gains, net

(139)

1,446

(1,097)

(378)

(195)

211

(17)

Adjusted pre-tax pre-provision net revenue

$     189,754

$     176,705

$     160,360

$     136,377

$       92,112

$     526,818

$     316,588


Quarter Ended

Year-to-date

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

Total adjusted noninterest expense







Total noninterest expense

$     319,734

$     285,888

$     291,667

$     289,194

$     179,889

$     897,289

$     509,696

Less: Merger expense

19,690

7,274

3,974

44,843

3,442

30,938

15,053

Incremental merger related expense

6,912

6,060

6,571

4,633

—

19,543

—

Branch closing expense

6

705

128

—

—

839

—

Pension settlement expense

2,896

—

—

651

2,400

2,896

2,400

Total adjusted noninterest expense

$     290,230

$     271,849

$     280,994

$     239,067

$     174,047

$     843,073

$     492,243


Quarter Ended

Year-to-date

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

Total tangible assets, excluding AOCI







Total assets

$ 47,699,660

$ 47,747,708

$ 47,204,061

$ 47,669,751

$ 28,060,496

$ 47,699,660

$ 28,060,496

Less: Goodwill

1,449,511

1,444,209

1,409,038

1,407,948

958,304

1,449,511

958,304

Other identifiable intangible assets

132,953

138,370

191,642

198,271

52,235

132,953

52,235

Total tangible assets

46,117,196

46,165,129

45,603,381

46,063,532

27,049,957

46,117,196

27,049,957

Less: AOCI

(1,297,812)

(936,345)

(664,000)

(139,369)

(82,627)

(1,297,812)

(82,627)

Total tangible assets, excluding AOCI

$ 47,415,008

$ 47,101,474

$ 46,267,381

$ 46,202,901

$ 27,132,584

$ 47,415,008

$ 27,132,584


Quarter Ended

Year-to-date

(In thousands)

Sep 2022

Jun 2022

Mar 2022

Dec 2021

Sep 2021

Sep 2022

Sep 2021

PERIOD END BALANCES:







Total shareholders' equity, excluding AOCI







Total shareholders' equity

$ 4,166,925

$ 4,437,925

$ 4,643,757

$ 5,247,987

$ 3,023,257

$ 4,166,925

$ 3,023,257

Less: AOCI

(1,297,812)

(936,345)

(664,000)

(139,369)

(82,627)

(1,297,812)

(82,627)

Total shareholders' equity, excluding AOCI

$ 5,464,737

$ 5,374,270

$ 5,307,757

$ 5,387,356

$ 3,105,884

$ 5,464,737

$ 3,105,884









Common shareholders' equity, excluding AOCI







Total shareholders' equity

$ 4,166,925

$ 4,437,925

$ 4,643,757

$ 5,247,987

$ 3,023,257

$ 4,166,925

$ 3,023,257

Less: preferred stock

166,993

166,993

166,993

166,993

166,993

166,993

166,993

Common shareholders' equity

3,999,932

4,270,932

4,476,764

5,080,994

2,856,264

3,999,932

2,856,264

Less: AOCI

(1,297,812)

(936,345)

(664,000)

(139,369)

(82,627)

(1,297,812)

(82,627)

Common shareholders' equity, excluding AOCI

$ 5,297,744

$ 5,207,277

$ 5,140,764

$ 5,220,363

$ 2,938,891

$ 5,297,744

$ 2,938,891









Total tangible common shareholders' equity,
excluding AOCI







Total shareholders' equity

$ 4,166,925

$ 4,437,925

$ 4,643,757

$ 5,247,987

$ 3,023,257

$ 4,166,925

$ 3,023,257

Less: Goodwill

1,449,511

1,444,209

1,409,038

1,407,948

958,304

1,449,511

958,304

Other identifiable intangible assets

132,953

138,370

191,642

198,271

52,235

132,953

52,235

Preferred stock

166,993

166,993

166,993

166,993

166,993

166,993

166,993

Total tangible common shareholders' equity

2,417,468

2,688,353

2,876,084

3,474,775

1,845,725

2,417,468

1,845,725

Less: AOCI

(1,297,812)

(936,345)

(664,000)

(139,369)

(82,627)

(1,297,812)

(82,627)

Total tangible common shareholders' equity,
excluding AOCI

$ 3,715,280

$ 3,624,698

$ 3,540,084

$ 3,614,144

$ 1,928,352

$ 3,715,280

$ 1,928,352









AVERAGE BALANCES:







Total tangible common shareholders' equity







Total shareholders' equity

$ 4,506,655

$ 4,523,189

$ 5,062,231

$ 4,508,594

$ 3,058,307

$ 4,695,324

$ 2,942,946

Less: Goodwill

1,444,331

1,407,452

1,407,973

1,115,502

957,899

1,420,052

907,042

Other identifiable intangible assets

136,149

188,897

195,606

106,559

53,567

173,333

53,664

Preferred stock

166,993

166,993

166,993

166,993

166,993

166,993

166,993

Total tangible common shareholders' equity

$ 2,759,182

$ 2,759,847

$ 3,291,659

$ 3,119,540

$ 1,879,848

$ 2,934,946

$ 1,815,247









Total average assets

$47,595,557

$47,064,829

$47,679,850

$40,990,459

$27,616,585

$47,446,436

$26,287,396

Total shares of common stock outstanding

182,438,780

182,461,786

183,488,844

188,337,658

106,853,316

182,438,780

106,853,316

Average shares outstanding-diluted

183,313,831

183,711,402

187,264,335

164,720,656

108,250,102

184,747,880

105,599,914









Tangible common shareholders' equity to
tangible assets (1)

5.24 %

5.82 %

6.31 %

7.54 %

6.82 %

5.24 %

6.82 %

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

7.84

7.70

7.65

7.82

7.11

7.84

7.11

Return on average tangible common equity (3)

17.40

18.11

13.87

(4.71)

14.85

16.32

16.40

Adjusted return on average tangible common
equity (4)

20.66

19.50

14.98

13.24

15.80

18.19

18.00

Adjusted return on average assets (5)

1.22

1.16

1.05

1.03

1.11

1.15

1.28

Adjusted return on average common
shareholders' equity (6)

13.13

12.36

10.07

9.51

10.28

11.79

11.77

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

1.33

1.40

1.26

0.83

1.24

1.33

1.52

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

1.58

1.51

1.36

1.32

1.32

1.48

1.61

Tangible book value per common share (9)

$       13.25

$       14.73

$       15.67

$       18.45

$       17.27

$       13.25

$       17.27

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

20.36

19.87

19.29

19.19

18.05

20.36

18.05

Adjusted earnings per common share (11)

$        0.78

$        0.73

$        0.65

$        0.63

$        0.69

$        2.16

$        2.31

Adjusted dividend payout ratio (12)

28.21 %

30.14 %

33.85 %

31.75 %

28.99 %

30.56 %

25.11 %

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.

SOURCE Cadence Bank

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