EXHIBIT 99.1
Cadence Bancorporation reports
FOURTH QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS
HOUSTON (January 25, 2021) – Cadence Bancorporation (NYSE: CADE) (“Cadence”) today announced net income for the quarter ended December 31, 2020 of $200.6 million or $1.57 per share, compared to $51.4 million or $0.40 per share for the quarter ended December 31, 2019, and $49.3 million or $0.39 per share for the quarter ended September 30, 2020. For the full year ended December 31, 2020, Cadence reported a net loss of ($205.5) million or ($1.63) per diluted common share (“per share”), compared to net income of $202.0 million or $1.56 per share for the year ended December 31, 2019. The fourth quarter of 2020 included an acceleration of gain recognition from the interest rate collar we terminated in March 2020 which resulted in $129.5 million ($169.2 million pretax) or $1.02 per share being accelerated into fourth quarter earnings (“accelerated hedge revenue”). This acceleration was triggered by the determination of hedge accounting partial ineffectiveness as announced in our related Form 8-K filed January 7, 2021.
“We are pleased to report strong performance across multiple fronts in the fourth quarter. The provision for loan losses is down meaningfully linked quarter, as are nonperforming and criticized assets. With the exception of hospitality, we saw broad-based improvement in credit migration, as many businesses recover, and our portfolios continue to de-risk. Our deposit franchise improved materially in 2020, and in the fourth quarter it was encouraging to see an increase in net interest margin and yields on originated loans. Our hedging activities protected the bank from the sharp decline in interest rates this year, and the unwinding of the hedge has produced a significant increase in regulatory capital, with our Common Equity Tier 1 capital ratio ending the year at 14.0%. Considering these results, we are pleased to announce proactive capital actions, including an increase of our fourth quarter dividend to $0.15 cents per share, payable in the first quarter 2021. Furthermore, we plan to retire maturing and callable debt and reactivate our share buyback program, which had been put on hold during the shutdown. Cadence operates in some of the most attractive markets in America, with a highly motivated and experienced team focused on serving our customers and driving shareholder value. While there clearly remains uncertainty in the broader environment, we are encouraged by our performance and the opportunities to further leverage our excess capital and liquidity in 2021,” stated Paul B. Murphy, Jr., Chairman and Chief Executive Officer of Cadence Bancorporation.
Adjusted Performance Metrics (1):
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Adjusted net income (1), excluding non-routine income and expenses (2), was $206.7 million for the full year of 2020 compared to $223.1 million for 2019. For the fourth quarter of 2020, adjusted net income was $199.7 million, an increase of $147.8 million or 284% compared to the fourth quarter of 2019 and an increase of $148.3 million or 288% compared to the third quarter of 2020. |
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Adjusted pre-tax pre-provision net revenue (1) for the full year 2020 was $542.5 million, compared to $400.3 million for the full year 2019. Adjusted pre-tax pre-provision net earnings in the fourth quarter of 2020 was $260.0 million, an increase of $165.2 million or 174% compared to the fourth quarter of 2019 and an increase of $165.4 million or 175% compared to the third quarter of 2020. |
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Adjusted EPS (1) for the full year 2020 was $1.64 compared to $1.72 for 2019. Adjusted EPS for fourth quarter of 2020 of $1.57 increased from the prior year quarter of $0.40 and increased from the linked quarter of $0.40. |
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Adjusted annualized returns on average assets (1) and adjusted tangible common equity (1) for the full year 2020 were 1.14% and 11.59%, respectively, compared to 1.26% and 13.60% for the full year 2019, respectively, and for the fourth quarter of 2020 were 4.33% and 41.72%, respectively, compared to 1.16% and 11.93%, respectively, for the fourth quarter of 2019 and 1.12% and 11.52%, respectively, for the third quarter of 2020. |
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Fourth Quarter 2020 Highlights:
Fourth quarter 2020 highlights (compared to the linked quarter where applicable) are as follows:
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The provision for credit losses for the fourth quarter of 2020 was $2.8 million compared to $33.0 million in the linked quarter reflecting improvement in overall credit metrics and lower loan balances. As of December 31, 2020, our allowance for credit losses (“ACL”) increased to 2.89% of total loans, up from 2.86% at September 30, 2020. Excluding Paycheck Protection Program (“PPP”) loans, our ACL ratio to loans was 3.12% at December 31, 2020, up from 3.11% at September 30, 2020. Our ratio of ACL to total nonperforming loans increased to 261% from 204%. |
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Our tax equivalent net interest margin (“NIM”) increased to 3.54%, up 5 basis points from prior quarter. The improvement in NIM was driven by continued management of deposit costs, declining 7 basis points to 0.25%, and fees earned on forgiven PPP loans and other loan payoffs. |
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Common Equity Tier 1 capital ratio increased to 14.0% and total risk weighted capital increased to 16.7%, reflecting material increases from the prior quarter due to the strong quarterly earnings combined with lower risk weighted assets. |
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Non-interest income in the fourth quarter of 2020 included the accelerated hedge revenue of $169.2 million. |
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Annualized returns on average assets and tangible common equity (1) for the fourth quarter of 2020 were 4.35% and 41.90%, respectively, compared to 1.08% and 11.08%, respectively, for the third quarter of 2020, with the increases reflecting the impact of the accelerated hedge revenue combined with lower loan provisions. |
Balance Sheet:
Total assets were $18.7 billion as of December 31, 2020, an increase of $912.3 million or 5.1% from December 31, 2019, and an increase of $308.4 million or 1.7% from September 30, 2020. The linked quarter increase was driven by increases in core deposits, cash and securities, partially offset by net declines in loans.
Cash and Cash Equivalents at December 31, 2020 totaled $2.1 billion as compared to $1.0 billion at December 31, 2019 and to $1.2 billion at September 30, 2020. The $806.8 million increase in the fourth quarter of 2020 resulted from a decrease in loans combined with an increase in deposits.
Investment Securities at December 31, 2020 totaled $3.3 billion as compared to $2.4 billion at December 31, 2019 and $3.1 billion at September 30, 2020. Securities as a percent of earning assets was 18.6%, 14.6%, and 17.4% at December 31, 2020, December 31, 2019, and September 30, 2020, respectively. The increase in securities from both the prior year and linked quarter is a result of increased balance sheet liquidity resulting from growth in deposits and the declines in net loans. Securities acquired during the fourth quarter include primarily agency pass-through mortgage-backed securities along with some municipal securities.
Loans at December 31, 2020 totaled $12.7 billion as compared to $13.0 billion at December 31, 2019, a decrease of $264.5 million or 2.0%. Loans decreased $746.4 million or 5.5% from $13.5 billion at September 30, 2020. The decline in the quarter included paydowns and payoffs of $117 million in PPP loans, $113 million in criticized loans, $180 million in Shared National Credits (SNCs), and $94 million in leveraged loans without moderating factors (note there is some overlap between these categories). On a portfolio basis, Restaurants declined $120 million and Energy declined $80 million, reflecting our targeted risk reduction strategy in those portfolios. Commercial Real Estate (“CRE”) declined $200 million, primarily reflective of credits transitioning to the permanent debt markets. The $321 million decline in General Commercial &Industrial (“C&I”) included $90 million in PPP loans as well as paydowns and payoffs resulting from excess borrower liquidity, borrower migration to non-bank and Main Street Lending fundings, and resolutions of problem credits.
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Goodwill at December 31, 2020 totaled $43.1 million, down from $486.0 million at December 31, 2019 and unchanged from September 30, 2020. As previously reported, the Company recorded a $443.7 million ($412.9 million, after-tax), non-cash goodwill impairment charge in the first quarter of 2020. The remaining goodwill at December 31, 2020 relates to our registered investment advisory subsidiary and trust division.
Total Deposits at December 31, 2020 were $16.1 billion, an increase of $1.3 billion or 8.9% from the December 31, 2019 level and up $266.0 million or 1.7% from the September 30, 2020 level. Non-interest bearing deposits were $5.0 billion or 31.4% of total deposits at December 31, 2020, up from $3.8 billion or 26.0% at December 31, 2019 and essentially unchanged from September 30, 2020. Total cost of deposits declined to 0.25% for the fourth quarter 2020, significantly lower than both the fourth quarter 2019 cost of 1.14% and the third quarter 2020 cost of 0.32%.
Shareholders’ equity was $2.1 billion at December 31, 2020, a decrease of $339.7 million or 13.8% from December 31, 2019, and an increase of $49.6 million or 2.4% from September 30, 2020. The year over year decrease was driven by the goodwill impairment charge in the first quarter of 2020. The linked quarter increase included quarterly net income of $200.6 million, $9.4 million in cash dividends, and a decrease of $144.6 million in other comprehensive income (“OCI”) driven by the reclassification of hedge revenue into current earnings.
Tangible common shareholders’ equity (1) was $2.0 billion at December 31, 2020, an increase of $124.4 million or 6.7% from December 31, 2019 and an increase of $54.8 million or 2.8% from September 30, 2020. The full year increase was driven by tangible earnings during the year. The linked quarter increase resulted from the same factors noted above.
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Total shareholders’ equity to total assets and tangible equity to tangible assets were 11.3% and 10.7%, respectively, at December 31, 2020 compared to 13.8% and 10.9% at December 31, 2019, and 11.3% and 10.6% at September 30, 2020, respectively. |
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Tangible book value per share (1) was $15.83 as of December 31, 2020, an increase of $1.18 or 8.1% from $14.65 as of December 31, 2019 and an increase of $0.43 or 2.8% from $15.40 as of September 30, 2020. |
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Total outstanding shares at December 31, 2020 were 125.97 million. |
Quarter end regulatory capital ratios remained robust and increased significantly during the quarter as follows:
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4Q20 |
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3Q20 |
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4Q19 |
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Common equity Tier 1 capital |
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14.0% |
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12.0% |
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11.5% |
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Tier 1 leverage capital |
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10.9% |
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9.9% |
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10.3% |
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Tier 1 risk-based capital |
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14.0% |
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12.0% |
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11.5% |
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Total risk-based capital |
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16.7% |
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14.7% |
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13.7% |
Credit quality metrics during the fourth quarter of 2020 reflected a number of improvements including declines in nonperforming and criticized loan balances but continued to reflect ongoing COVID-driven stress and economic uncertainty, particularly in the Hospitality sector.
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Net charge-offs for the full year 2020 were $106.1 million or 0.79% of average loans as compared to $85.8 million or 0.63% for the full year 2019. Net charge-offs for the fourth quarter of 2020 were $21.2 million or 0.64% annualized of average loans compared to $35.3 million or 1.04% annualized and $19.9 million or 0.58% annualized for the quarters ended December 31, 2019 and September 30, 2020, respectively. The current quarter net charge-offs included $4.2 million in Restaurant, $9.2 million in Commercial Real Estate (“CRE”), and $7.3 million in General C&I. |
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Provision for credit losses for the full year 2020 was $278.0 million or 2.06% of average loans as compared to $111.0 million or 0.81% of average loans for 2019. Provision for credit losses for the fourth quarter of 2020 was $2.8 million as compared to $27.1 million for the fourth quarter of 2019 and $33.0 million for the third quarter of |
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2020. The current quarter’s provision was impacted by improvements in nonperforming and criticized loans and lower loan balances. The fourth quarter 2020 loan provision was concentrated in the CRE segment provision of $7.4 million (primarily due to the Hospitality portfolio), which was partially offset by reductions of $3.0 million in C&I and $1.4 million in Consumer segments. |
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The ACL was $367.2 million or 2.89% of total loans as of December 31, 2020, as compared to $119.6 million or 0.92% of total loans as of December 31, 2019, and $385.4 million or 2.86% of total loans as of September 30, 2020. Excluding PPP loans, the ACL was 3.12% of total loans at December 31, 2020, increased from 3.11% at September 30, 2020. |
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The material increase in the ACL during 2020 incorporated loan provisions of $278.0 million, net charge-offs of $106.1 million and “day 1” CECL adoption impact of $75.6 million. |
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Total nonperforming loans (“NPL”) as a percent of total loans were 1.08% at December 31, 2020, compared to 0.92% at December 31, 2019 and 1.40% at September 30, 2020. NPL totaled $138.0 million, $119.6 million and $189.1 million as of December 31, 2020, December 31, 2019 and September 30, 2020, respectively. The linked quarter decline of $51.1 million or 27% was due primarily to payoffs and to a lesser extent, net charge-offs. |
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The ACL coverage of NPL increased meaningfully to 266.1% as of December 31, 2020, as compared to 100.1% as of December 31, 2019, and 203.8% as of September 30, 2020. |
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Active COVID related loan payment deferrals totaled $135 million at January 15, 2021, down from $376 million at September 30, 2020. |
Total Revenue:
Total operating revenue (1) for 2020 was $926.3 million, up $144.2 million or 18.4%, and for the fourth quarter of 2020 was $366.5 million, up $171.7 million or 88.1% from the same period in 2019 and up $181.8 million or 98.5% from the linked quarter.
Net interest income for the full year 2020 was $619.0 million as compared to $651.2 million for 2019, a decrease of $32.2 million or 4.9%. The year-over-year decline in earning asset yields of 117 basis points was driven by lower index rates partially offset by our hedges, combined with an increase in lower yielding securities. This decline was partially offset by our cost of funds declining 81 basis points as we achieved record low-deposit costs and record high levels of non-interest bearing deposits during 2020.
Net interest income for the fourth quarter of 2020 was $156.7 million, a decrease of $4.2 million or 2.6% from the same period in 2019 and an increase of $2.7 million or 1.8% from the third quarter of 2020. Compared to the linked quarter, loan interest income excluding accretion increased $0.9 million as loan fees from loan payoffs offset the impact of lower volumes, funding costs decreased by $2.5 million driven by continued reduction of deposit costs, and hedge interest income increased $0.2 million. These improvements were partially offset by a decrease of $0.5 million in loan accretion and a decrease of $0.3 million in investment income due to lower yielding securities.
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We continued to lower our interest rates on deposits with total cost of deposits dropping from 0.32% to 0.25% linked quarter, down 21.9%. Noninterest-bearing deposits as a percent of total deposits remained stable at 31.4% compared to 31.9% in the linked quarter. Total interest-bearing liability costs declined by 8 basis points from 0.59% to 0.51% linked quarter, down 13.6%. Average interest-bearing liabilities declined $244.2 million or 2.2% from the prior quarter to $10.9 billion. |
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Yield on loans excluding accretion and hedge income was 3.89% in the fourth quarter of 2020, up 14 basis points from 3.75% in the third quarter of 2020. Excluding the impact of PPP loans, this yield was 3.98% and 3.87%, for the fourth and third quarters of 2020, respectively. Average loans declined $414.0 million or 3.0% from the prior quarter to $13.2 billion. |
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Accretion on acquired loans totaled $5.9 million for the fourth quarter of 2020 as compared to $6.4 million for the third quarter of 2020. |
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Yield on investment securities declined to 1.87% in the fourth quarter of 2020 compared to 2.06% in the linked quarter, with the lower yield reflecting the impact of securities purchased in the fourth quarter and late in the third quarter. Average investment securities increased $241.4 million or 8.2% from the prior quarter to $3.2 billion. Fed funds sold and short-term investments also increased by $237.0 million or 25.2% from the prior quarter due to excess liquidity during the fourth quarter. |
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Total earning asset yields declined slightly to 3.85% in the fourth quarter of 2020 compared to 3.86% in the linked quarter, with average balances increasing by $64.0 million or 0.4% to $17.7 billion. |
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Our NIM for the full year 2020 decreased to 3.58% compared to 4.00% for 2019. Our net interest spread for 2020 decreased to 3.29% as compared to 3.48% for 2019. Our NIM for the fourth quarter of 2020 was 3.54% as compared to 3.89% for the fourth quarter of 2019 and 3.49% for the third quarter of 2020. |
PPP loans averaged $1.0 billion in the fourth quarter at a yield of 2.82%, and along with cash in deposits associated with these loans, negatively impacted our fourth quarter NIM by 10 basis points as illustrated in the table below. Excluding the impact of the PPP program, the fourth quarter 2020 NIM remained stable at 3.64%, as lower deposit costs more than offset the impact of lower loan balances and lower securities yields. Specifically, the NIM change during the quarter included:
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NIM |
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3Q 2020 Net Interest Income |
$154.5 |
3.49% |
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3Q 2020 Net Interest Income before PPP loans & associated cash |
$148.4 |
3.64% |
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Loans (ex PPP & accretion) |
(0.5) |
(0.04%) |
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Deposits |
2.6 |
0.07% |
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Hedge Income |
0.2 |
0.00% |
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Accretion |
(0.5) |
(0.01%) |
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Securities |
(0.3) |
(0.01%) |
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Cash |
0.2 |
0.00% |
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Borrowings |
(0.2) |
(0.01%) |
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$149.9 |
3.64% |
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PPP Loans & associated cash |
7.4 |
(0.10%) |
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4Q 2020 Net Interest Margin |
$157.3 |
3.54% |
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*Calculated by removing the quarterly average balance of PPP loans and income, as well as the
quarterly average balance of cash associated with unused PPP funds.
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Noninterest income for the full year of 2020 was $307.4 million, an increase of $176.4 million or 135% from 2019. Noninterest income for the fourth quarter of 2020 was $209.7 million, an increase of $175.8 million from the same period of 2019 and an increase of $177.2 million from the linked quarter. Adjusted noninterest income (1) for the fourth quarter of 2020 was $208.4 million, an increase of $176.1 million from the fourth quarter of 2019, and an increase of $175.3 million from the linked quarter.
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The fourth quarter includes the accelerated hedge revenue of $169.2 million reclassified from OCI. The partial accounting ineffectiveness determination resulted from a significant decrease in forecasted LIBOR based loans to support future amortization of the remaining transaction gain on the termination of our interest rate collar. See additional discussion in our Form 8-K filed January 7, 2021. |
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Excluding the accelerated hedge revenue, the linked quarter increase was $6.1 million including increases of $3.6 million in earnings from limited partnerships, $1.3 million in securities gains, $0.7 million in investment advisory revenue, and $0.6 million in credit related fees. |
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Noninterest income as a percent of total revenue for 2020 was 33.2% as compared to 16.7% for 2019, and for the fourth quarter of 2020 was 57.2% as compared to 17.4% for the fourth quarter of 2019 and 17.5% for the linked quarter. Before the impact of the accelerated hedge revenue of $169.2 million, noninterest income as a percent of total revenue for 2020 and the fourth quarter of 2020 were 18.3% and 20.5%, respectively, both increased from the comparable periods. |
Noninterest expense for the full year of 2020 was $826.5 million, an increase of $417.7 million or 102.2% from 2019 due to the goodwill impairment charge of $443.7 million recorded in the first quarter of 2020. Noninterest expense for the fourth quarter of 2020 was $105.3 million, an increase of $4.8 million or 4.8% from the same period in 2019 and an increase of $10.5 million or 11.0% from the linked quarter. Adjusted noninterest expense (1), which excludes the impact of non-routine items (2), was $377.6 million for the full year of 2020, a decrease of $1.4 million or 0.4% from 2019. For the fourth quarter of 2020, adjusted noninterest expense was $105.1 million, up $6.7 million or 6.9% from the fourth quarter of 2019 and up $12.6 million or 13.6% from the third quarter of 2020. The linked quarter increase in noninterest expenses resulted from an increase of $8.1 million in personnel costs driven by an increase of $8.5 million in incentive compensation due to improved corporate performance partially offset by a reduction of $1.0 million in medical insurance expense due to improved claims experience.
Our adjusted efficiency ratio (1) for the full year of 2020 was 41.0% as compared to 48.6% for 2019. The adjusted efficiency ratio for the fourth quarter of 2020 was 28.8%, compared to the linked quarter ratio of 49.4% and the prior year’s fourth quarter ratio of 50.9%. The full year and linked quarter improvements are both a result of the accelerated hedge revenue of $169.2 million. Before the impact of the accelerated hedge revenue, the full year and fourth quarter 2020 efficiency ratios both reflected slight increases at 50.3% and 53.7%, respectively, with the full year increase reflecting lower revenues in 2020 and the linked quarter increase reflecting the higher fourth quarter expenses.
The effective tax rate for the full year 2020 was (15.3%) as compared to 23.0% for the full year 2019. The effective tax rate for the fourth quarter of 2020 was 22.4% compared to 16.1% for the linked quarter and 23.4% for the fourth quarter of 2019. The full year 2020 effective rate was impacted by $313.3 million in non-deductible goodwill impairment.
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(1) |
Considered a non-GAAP financial measure. See Table 10 “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
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Dividend:
On January 21, 2021, the board of directors of Cadence Bancorporation declared a quarterly cash dividend in the amount of $0.15 per share of outstanding common stock, representing an annualized dividend of $0.60 per share. The dividend will be paid on February 12, 2021 to holders of record of Cadence’s Class A common stock on February 5, 2021.
Share Repurchase Authorization:
On January 21, 2021, the board of directors of Cadence Bancorporation authorized a share repurchase program providing for the purchase of shares of the Company’s Class A common stock for an aggregate purchase price of up to $200 million, subject to regulatory approvals. The previously approved share repurchase program authorizing up to $100 million is set to expire in February 2021.
Supplementary Financial Tables (Unaudited):
Supplementary financial tables (unaudited) are included in this release following the customary disclosure information.
Fourth Quarter 2020 Earnings Conference Call:
Cadence Bancorporation executive management will host a conference call to discuss fourth quarter 2020 results on Monday, January 25, 2021, at 7:30 a.m. CT / 8:30 a.m. ET. Slides to be presented by management on the conference call can be viewed by visiting www.cadencebancorporation.com and selecting “Events & Presentations” then “Presentations”.
Conference Call Access:
To access the conference call, please dial one of the following numbers approximately 10-15 minutes prior to the start time to allow time for registration and use the Elite Entry Number provided below.
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Dial in (toll free): |
1-888-317-6003 |
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International dial in: |
1-412-317-6061 |
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Canada (toll free): |
1-866-284-3684 |
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Participant Elite Entry Number: |
3708183 |
For those unable to participate in the live presentation, a replay will be available through February 8, 2021. To access the replay, please use the following numbers:
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US Toll Free: |
1-877-344-7529 |
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International Toll: |
1-412-317-0088 |
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Canada Toll Free: |
1-855-669-9658 |
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Replay Access Code: |
10150788 |
Webcast Access:
The call and corresponding presentation slides will be webcast live on the home page of the Company’s website: www.cadencebancorporation.com.
About Cadence Bancorporation:
Cadence Bancorporation (NYSE: CADE), headquartered in Houston, Texas, is a regional financial holding company with $18.7 billion in total assets as of December 31, 2020. Its wholly owned subsidiary, Cadence Bank, N.A., operates 98 branch locations in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas, and provides corporations, middle-market companies, small businesses and consumers with a full range of innovative banking and financial solutions. Services and products include commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, SBA lending, foreign exchange, wealth management, investment and trust services, financial planning, retirement plan management, payroll and insurance services, consumer banking, consumer
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loans, mortgages, home equity lines and loans, and credit cards. Clients have access to leading-edge online and mobile solutions, interactive teller machines, and more than 55,000 ATMs. The Cadence team of 1,900 associates is committed to exceeding customer expectations and helping their clients succeed financially.
Cautionary Statement Regarding Forward-Looking Information
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our results of operations, financial condition and financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are
inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict.
Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Such factors include, without limitation, the “Risk Factors” referenced in our Registration Statement on Form S-3 filed with the Securities and Exchange Commission (the “SEC”) on May 21, 2018, and our Registration Statement on Form S-4 filed with the SEC on July 20, 2018, other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, and the following factors: business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic market areas; economic, market, operational, liquidity, credit and interest rate risks associated with our business; deteriorating asset quality and higher loan charge-offs; the laws and regulations applicable to our business; our ability to achieve organic loan and deposit growth and the composition of such growth; increased competition in the financial services industry, nationally, regionally or locally; our ability to maintain our historical earnings trends; our ability to raise additional capital to implement our business plan; material weaknesses in our internal
control over financial reporting; systems failures or interruptions involving our information technology and telecommunications systems or third-party servicers; the composition of our management team and our ability to attract and retain key personnel; the fiscal position of the U.S. federal government and the soundness of other financial institutions; the composition of our loan portfolio, including the identity of our borrowers and the concentration of loans in energy-related industries and in our specialized industries; the portion of our loan portfolio that is comprised of participations and shared national credits; the amount of nonperforming and classified assets we hold; the extent of the impact of the COVID-19 pandemic on us and our customers, counterparties, employees, and third-party service providers, and the impacts to our business, financial position, results of operations, and prospects; the impact on our financial
condition, results of operations, financial disclosures, and future business strategies related to the implementation of FASB Accounting Standards Update 2016-13, Financial Instruments – Credit Losses, commonly referred to as CECL. Cadence can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this communication, and Cadence does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.
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EXHIBIT 99.1
About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including “efficiency ratio,” “adjusted efficiency ratio,” “adjusted noninterest expenses,” “adjusted operating revenue,” “tangible common equity ratio,” “tangible book value per share” and “return on average tangible common equity”, “adjusted return on average tangible common equity”, “adjusted return on average assets”, “adjusted diluted earnings per share”, and “pre-tax, pre-provision net revenue” are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis.
We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables (Table 10).
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Contact Information
Cadence Bancorporation
Media contact:
Danielle Kernell
713-871-4051
danielle.kernell@cadencebank.com
Investor relations contact:
Valerie Toalson
713-871-4103 or 800-698-7878
vtoalson@cadencebancorporation.com
9
Table 1 – Selected Financial Data
|
|
|
As of and for the Three Months Ended |
|
|
As of and for the Years Ended December 31, |
|
||||||||||||||||||||||
|
(In thousands, except per share data) |
|
4Q20 |
|
|
3Q20 |
|
|
2Q20 |
|
|
1Q20 |
|
|
4Q19 |
|
|
2020 |
|
|
2019 |
|
|||||||
|
Statement of Operations Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
170,739 |
|
|
$ |
170,497 |
|
|
$ |
177,175 |
|
|
$ |
192,754 |
|
|
$ |
207,620 |
|
|
$ |
711,166 |
|
|
$ |
860,076 |
|
|
Interest expense |
|
|
13,998 |
|
|
|
16,455 |
|
|
|
22,461 |
|
|
|
39,286 |
|
|
|
46,709 |
|
|
|
92,200 |
|
|
|
208,903 |
|
|
Net interest income |
|
|
156,741 |
|
|
|
154,042 |
|
|
|
154,714 |
|
|
|
153,468 |
|
|
|
160,911 |
|
|
|
618,966 |
|
|
|
651,173 |
|
|
Provision for credit losses |
|
|
2,835 |
|
|
|
32,973 |
|
|
|
158,811 |
|
|
|
83,429 |
|
|
|
27,126 |
|
|
|
278,048 |
|
|
|
111,027 |
|
|
Net interest income after provision |
|
|
153,906 |
|
|
|
121,069 |
|
|
|
(4,097 |
) |
|
|
70,039 |
|
|
|
133,785 |
|
|
|
340,918 |
|
|
|
540,146 |
|
|
Noninterest income (1) |
|
|
209,745 |
|
|
|
32,591 |
|
|
|
29,950 |
|
|
|
35,069 |
|
|
|
33,898 |
|
|
|
307,355 |
|
|
|
130,925 |
|
|
Noninterest expense (2) |
|
|
105,331 |
|
|
|
94,859 |
|
|
|
88,620 |
|
|
|
537,653 |
|
|
|
100,519 |
|
|
|
826,464 |
|
|
|
408,770 |
|
|
Income (loss) before income taxes |
|
|
258,320 |
|
|
|
58,801 |
|
|
|
(62,767 |
) |
|
|
(432,545 |
) |
|
|
67,164 |
|
|
|
(178,191 |
) |
|
|
262,301 |
|
|
Income tax expense (benefit) |
|
|
57,737 |
|
|
|
9,486 |
|
|
|
(6,653 |
) |
|
|
(33,234 |
) |
|
|
15,738 |
|
|
|
27,336 |
|
|
|
60,343 |
|
|
Net income (loss) |
|
$ |
200,583 |
|
|
$ |
49,315 |
|
|
$ |
(56,114 |
) |
|
$ |
(399,311 |
) |
|
$ |
51,426 |
|
|
$ |
(205,527 |
) |
|
$ |
201,958 |
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
125,974 |
|
|
|
125,957 |
|
|
|
125,925 |
|
|
|
126,630 |
|
|
|
127,954 |
|
|
|
126,121 |
|
|
|
128,914 |
|
|
Diluted |
|
|
126,409 |
|
|
|
126,095 |
|
|
|
125,925 |
|
|
|
126,630 |
|
|
|
128,003 |
|
|
|
126,121 |
|
|
|
129,018 |
|
|
Earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.58 |
|
|
$ |
0.39 |
|
|
$ |
(0.45 |
) |
|
$ |
(3.15 |
) |
|
$ |
0.40 |
|
|
$ |
(1.63 |
) |
|
$ |
1.56 |
|
|
Diluted |
|
|
1.57 |
|
|
|
0.39 |
|
|
|
(0.45 |
) |
|
|
(3.15 |
) |
|
|
0.40 |
|
|
|
(1.63 |
) |
|
|
1.56 |
|
|
Period-End Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,053,946 |
|
|
$ |
1,247,172 |
|
|
$ |
1,899,369 |
|
|
$ |
609,351 |
|
|
$ |
988,764 |
|
|
$ |
2,053,946 |
|
|
$ |
988,764 |
|
|
Investment securities |
|
|
3,332,168 |
|
|
|
3,088,699 |
|
|
|
2,661,433 |
|
|
|
2,461,644 |
|
|
|
2,368,592 |
|
|
|
3,332,168 |
|
|
|
2,368,592 |
|
|
Total loans, net of unearned income |
|
|
12,719,129 |
|
|
|
13,465,556 |
|
|
|
13,699,097 |
|
|
|
13,392,191 |
|
|
|
12,983,655 |
|
|
|
12,719,129 |
|
|
|
12,983,655 |
|
|
Allowance for credit losses |
|
|
367,160 |
|
|
|
385,412 |
|
|
|
370,901 |
|
|
|
245,246 |
|
|
|
119,643 |
|
|
|
367,160 |
|
|
|
119,643 |
|
|
Total assets |
|
|
18,712,567 |
|
|
|
18,404,195 |
|
|
|
18,857,753 |
|
|
|
17,237,918 |
|
|
|
17,800,229 |
|
|
|
18,712,567 |
|
|
|
17,800,229 |
|
|
Total deposits |
|
|
16,052,245 |
|
|
|
15,786,221 |
|
|
|
16,069,282 |
|
|
|
14,489,505 |
|
|
|
14,742,794 |
|
|
|
16,052,245 |
|
|
|
14,742,794 |
|
|
Noninterest-bearing deposits |
|
|
5,033,748 |
|
|
|
5,033,338 |
|
|
|
5,220,109 |
|
|
|
3,959,721 |
|
|
|
3,833,704 |
|
|
|
5,033,748 |
|
|
|
3,833,704 |
|
|
Interest-bearing deposits |
|
|
11,018,497 |
|
|
|
10,752,883 |
|
|
|
10,849,173 |
|
|
|
10,529,784 |
|
|
|
10,909,090 |
|
|
|
11,018,497 |
|
|
|
10,909,090 |
|
|
Borrowings and subordinated debentures |
|
|
372,669 |
|
|
|
372,446 |
|
|
|
372,222 |
|
|
|
372,440 |
|
|
|
372,173 |
|
|
|
372,669 |
|
|
|
372,173 |
|
|
Total shareholders’ equity |
|
|
2,121,102 |
|
|
|
2,071,472 |
|
|
|
2,045,480 |
|
|
|
2,113,543 |
|
|
|
2,460,846 |
|
|
|
2,121,102 |
|
|
|
2,460,846 |
|
|
Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
3,201,722 |
|
|
$ |
2,960,357 |
|
|
$ |
2,487,467 |
|
|
$ |
2,397,275 |
|
|
$ |
2,003,339 |
|
|
$ |
2,763,450 |
|
|
$ |
1,776,689 |
|
|
Total loans, net of unearned income |
|
|
13,238,440 |
|
|
|
13,652,395 |
|
|
|
13,884,220 |
|
|
|
13,161,371 |
|
|
|
13,423,435 |
|
|
|
13,483,895 |
|
|
|
13,714,731 |
|
|
Allowance for credit losses |
|
|
393,306 |
|
|
|
389,243 |
|
|
|
267,464 |
|
|
|
201,785 |
|
|
|
132,975 |
|
|
|
313,377 |
|
|
|
114,256 |
|
|
Total assets |
|
|
18,354,046 |
|
|
|
18,248,014 |
|
|
|
18,500,600 |
|
|
|
17,694,018 |
|
|
|
17,843,383 |
|
|
|
18,199,726 |
|
|
|
17,689,126 |
|
|
Total deposits |
|
|
15,736,884 |
|
|
|
15,628,314 |
|
|
|
15,774,787 |
|
|
|
14,574,614 |
|
|
|
14,749,327 |
|
|
|
15,430,038 |
|
|
|
14,628,628 |
|
|
Noninterest-bearing deposits |
|
|
5,245,478 |
|
|
|
4,892,079 |
|
|
|
4,587,673 |
|
|
|
3,658,612 |
|
|
|
3,648,874 |
|
|
|
4,598,544 |
|
|
|
3,431,300 |
|
|
Interest-bearing deposits |
|
|
10,491,406 |
|
|
|
10,736,235 |
|
|
|
11,187,115 |
|
|
|
10,916,002 |
|
|
|
11,100,454 |
|
|
|
10,831,494 |
|
|
|
11,197,328 |
|
|
Borrowings and subordinated debentures |
|
|
372,920 |
|
|
|
372,304 |
|
|
|
372,547 |
|
|
|
439,698 |
|
|
|
374,179 |
|
|
|
389,275 |
|
|
|
437,186 |
|
|
Total shareholders’ equity |
|
|
2,072,030 |
|
|
|
2,052,079 |
|
|
|
2,118,796 |
|
|
|
2,446,810 |
|
|
|
2,471,398 |
|
|
|
2,171,826 |
|
|
|
2,373,856 |
|
|
|
(1) |
The quarter ended December 31, 2020, includes hedge revenue of $169.2 million, $129.5 million after tax. |
|
|
(2) |
The quarter ended March 31, 2020, includes the non-cash goodwill impairment charge of $443.7 million, $412.9 million after-tax. |
10
Table 1 (Continued) – Selected Financial Data
|
|
|
As of and for the Three Months Ended |
|
|
As of and for the Years Ended December 31, |
|
||||||||||||||||||||||
|
|
4Q20 (4) |
|
|
3Q20 |
|
|
2Q20 |
|
|
1Q20 |
|
|
4Q19 |
|
|
2020 (4) |
|
|
2019 |
|
||||||||
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value |
|
$ |
16.84 |
|
|
$ |
16.45 |
|
|
$ |
16.24 |
|
|
$ |
16.79 |
|
|
$ |
19.29 |
|
|
$ |
16.84 |
|
|
$ |
19.29 |
|
|
Tangible book value (1) |
|
|
15.83 |
|
|
|
15.40 |
|
|
|
15.15 |
|
|
|
15.65 |
|
|
|
14.65 |
|
|
|
15.83 |
|
|
|
14.65 |
|
|
Cash dividends declared |
|
|
0.075 |
|
|
|
0.050 |
|
|
|
0.050 |
|
|
|
0.175 |
|
|
|
0.175 |
|
|
|
0.350 |
|
|
|
0.700 |
|
|
Dividend payout ratio |
|
|
4.75 |
% |
|
|
12.82 |
% |
|
|
(11.11 |
)% |
|
|
(5.56 |
)% |
|
|
43.75 |
% |
|
|
(21.47 |
)% |
|
|
44.87 |
% |
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity (2) |
|
|
38.51 |
% |
|
|
9.56 |
% |
|
|
(10.65 |
)% |
|
|
(65.64 |
)% |
|
|
8.26 |
% |
|
|
(9.46 |
)% |
|
|
8.51 |
% |
|
Return on average tangible common equity (1) (2) |
|
|
41.90 |
|
|
|
11.08 |
|
|
|
(10.56 |
) |
|
|
3.86 |
|
|
|
11.82 |
|
|
|
11.63 |
|
|
|
12.40 |
|
|
Return on average assets (2) |
|
|
4.35 |
|
|
|
1.08 |
|
|
|
(1.22 |
) |
|
|
(9.08 |
) |
|
|
1.14 |
|
|
|
(1.13 |
) |
|
|
1.14 |
|
|
Net interest margin (2) |
|
|
3.54 |
|
|
|
3.49 |
|
|
|
3.51 |
|
|
|
3.80 |
|
|
|
3.89 |
|
|
|
3.58 |
|
|
|
4.00 |
|
|
Efficiency ratio (1) |
|
|
28.74 |
|
|
|
50.83 |
|
|
|
47.99 |
|
|
|
285.17 |
|
|
|
51.60 |
|
|
|
89.22 |
|
|
|
52.27 |
|
|
Adjusted efficiency ratio (1) |
|
|
28.79 |
|
|
|
49.45 |
|
|
|
47.93 |
|
|
|
49.88 |
|
|
|
50.91 |
|
|
|
41.04 |
|
|
|
48.64 |
|
|
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NPA to total loans, OREO, and other NPA |
|
|
1.24 |
% |
|
|
1.55 |
% |
|
|
1.74 |
% |
|
|
1.31 |
% |
|
|
0.97 |
% |
|
|
1.24 |
% |
|
|
0.97 |
% |
|
Total nonperforming loans ("NPL") to total loans |
|
|
1.08 |
|
|
|
1.40 |
|
|
|
1.64 |
|
|
|
1.19 |
|
|
|
0.92 |
|
|
|
1.08 |
|
|
|
0.92 |
|
|
Total ACL to total loans |
|
|
2.89 |
|
|
|
2.86 |
|
|
|
2.71 |
|
|
|
1.83 |
|
|
|
0.92 |
|
|
|
2.89 |
|
|
|
0.92 |
|
|
ACL to total NPL |
|
|
266.05 |
|
|
|
203.82 |
|
|
|
165.30 |
|
|
|
153.61 |
|
|
|
100.07 |
|
|
|
266.05 |
|
|
|
100.07 |
|
|
Net charge-offs to average loans (2) |
|
|
0.64 |
|
|
|
0.58 |
|
|
|
0.94 |
|
|
|
0.99 |
|
|
|
1.04 |
|
|
|
0.79 |
|
|
|
0.63 |
|
|
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity to assets |
|
|
11.3 |
% |
|
|
11.3 |
% |
|
|
10.8 |
% |
|
|
12.3 |
% |
|
|
13.8 |
% |
|
|
11.3 |
% |
|
|
13.8 |
% |
|
Tangible common equity to tangible assets (1) |
|
|
10.7 |
|
|
|
10.6 |
|
|
|
10.2 |
|
|
|
11.5 |
|
|
|
10.9 |
|
|
|
10.7 |
|
|
|
10.9 |
|
|
Common equity Tier 1 capital (3) |
|
|
14.0 |
|
|
|
12.0 |
|
|
|
11.7 |
|
|
|
11.4 |
|
|
|
11.5 |
|
|
|
14.0 |
|
|
|
11.5 |
|
|
Tier 1 leverage capital (3) |
|
|
10.9 |
|
|
|
9.9 |
|
|
|
9.5 |
|
|
|
10.1 |
|
|
|
10.3 |
|
|
|
10.9 |
|
|
|
10.3 |
|
|
Tier 1 risk-based capital (3) |
|
|
14.0 |
|
|
|
12.0 |
|
|
|
11.7 |
|
|
|
11.4 |
|
|
|
11.5 |
|
|
|
14.0 |
|
|
|
11.5 |
|
|
Total risk-based capital (3) |
|
|
16.7 |
|
|
|
14.7 |
|
|
|
14.3 |
|
|
|
13.8 |
|
|
|
13.7 |
|
|
|
16.7 |
|
|
|
13.7 |
|
|
_____________________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Considered a non-GAAP financial measure. See Table 10 "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
|
|
(2) |
Quarterly periods are annualized. |
|
|
(3) |
Current quarter regulatory capital ratios are estimates. |
|
|
(4) |
Asset Quality Ratios do not include nonperforming loans held for sale of $176 thousand. |
11
Table 2 – Average Balances/Yield/Rates
|
|
|
For the Three Months Ended December 31, |
|
|||||||||||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||||||||||
|
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
||||||
|
(In thousands) |
|
Balance |
|
|
Expense |
|
|
Rate |
|
|
Balance |
|
|
Expense |
|
|
Rate |
|
||||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans |
|
$ |
10,939,304 |
|
|
$ |
125,535 |
|
|
|
4.57 |
% |
|
$ |
10,160,970 |
|
|
$ |
134,450 |
|
|
|
5.25 |
% |
|
ANCI portfolio |
|
|
2,126,553 |
|
|
|
25,943 |
|
|
|
4.85 |
|
|
|
3,017,005 |
|
|
|
46,247 |
|
|
|
6.08 |
|
|
PCD portfolio (3) |
|
|
172,583 |
|
|
|
3,820 |
|
|
|
8.81 |
|
|
|
245,474 |
|
|
|
9,857 |
|
|
|
15.93 |
|
|
Total loans |
|
|
13,238,440 |
|
|
|
155,298 |
|
|
|
4.67 |
|
|
|
13,423,449 |
|
|
|
190,554 |
|
|
|
5.63 |
|
|
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,895,541 |
|
|
|
12,597 |
|
|
|
1.73 |
|
|
|
1,806,932 |
|
|
|
11,699 |
|
|
|
2.57 |
|
|
Tax-exempt (2) |
|
|
306,181 |
|
|
|
2,427 |
|
|
|
3.15 |
|
|
|
196,407 |
|
|
|
1,829 |
|
|
|
3.69 |
|
|
Total investment securities |
|
|
3,201,722 |
|
|
|
15,024 |
|
|
|
1.87 |
|
|
|
2,003,339 |
|
|
|
13,528 |
|
|
|
2.68 |
|
|
Federal funds sold and short-term investments |
|
|
1,178,973 |
|
|
|
548 |
|
|
|
0.18 |
|
|
|
930,910 |
|
|
|
3,392 |
|
|
|
1.45 |
|
|
Other investments |
|
|
76,878 |
|
|
|
380 |
|
|
|
1.97 |
|
|
|
77,348 |
|
|
|
530 |
|
|
|
2.72 |
|
|
Total interest-earning assets |
|
|
17,696,013 |
|
|
|
171,250 |
|
|
|
3.85 |
|
|
|
16,435,046 |
|
|
|
208,004 |
|
|
|
5.02 |
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
216,116 |
|
|
|
|
|
|
|
|
|
|
|
107,180 |
|
|
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
125,955 |
|
|
|
|
|
|
|
|
|
|
|
128,458 |
|
|
|
|
|
|
|
|
|
|
Accrued interest and other assets |
|
|
709,268 |
|
|
|
|
|
|
|
|
|
|
|
1,305,674 |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(393,306 |
) |
|
|
|
|
|
|
|
|
|
|
(132,975 |
) |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
18,354,046 |
|
|
|
|
|
|
|
|
|
|
$ |
17,843,383 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ |
7,881,093 |
|
|
$ |
4,145 |
|
|
|
0.21 |
% |
|
$ |
8,195,455 |
|
|
$ |
26,946 |
|
|
|
1.30 |
% |
|
Savings deposits |
|
|
336,304 |
|
|
|
127 |
|
|
|
0.15 |
|
|
|
262,638 |
|
|
|
320 |
|
|
|
0.48 |
|
|
Time deposits |
|
|
2,274,009 |
|
|
|
5,711 |
|
|
|
1.00 |
|
|
|
2,642,361 |
|
|
|
14,983 |
|
|
|
2.25 |
|
|
Total interest-bearing deposits |
|
|
10,491,406 |
|
|
|
9,983 |
|
|
|
0.38 |
|
|
|
11,100,454 |
|
|
|
42,249 |
|
|
|
1.51 |
|
|
Other borrowings |
|
|
149,981 |
|
|
|
931 |
|
|
|
2.47 |
|
|
|
152,102 |
|
|
|
953 |
|
|
|
2.49 |
|
|
Subordinated debentures |
|
|
222,939 |
|
|
|
3,085 |
|
|
|
5.51 |
|
|
|
222,077 |
|
|
|
3,507 |
|
|
|
6.27 |
|
|
Total interest-bearing liabilities |
|
|
10,864,326 |
|
|
|
13,999 |
|
|
|
0.51 |
|
|
|
11,474,633 |
|
|
|
46,709 |
|
|
|
1.61 |
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
5,245,478 |
|
|
|
|
|
|
|
|
|
|
|
3,648,874 |
|
|
|
|
|
|
|
|
|
|
Accrued interest and other liabilities |
|
|
172,212 |
|
|
|
|
|
|
|
|
|
|
|
248,478 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
16,282,016 |
|
|
|
|
|
|
|
|
|
|
|
15,371,985 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
2,072,030 |
|
|
|
|
|
|
|
|
|
|
|
2,471,398 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
18,354,046 |
|
|
|
|
|
|
|
|
|
|
$ |
17,843,383 |
|
|
|
|
|
|
|
|
|
|
Net interest income/net interest spread |
|
|
|
|
|
|
157,251 |
|
|
|
3.34 |
% |
|
|
|
|
|
|
161,295 |
|
|
|
3.40 |
% |
|
Net yield on earning assets/net interest margin |
|
|
|
|
|
|
|
|
|
|
3.54 |
% |
|
|
|
|
|
|
|
|
|
|
3.89 |
% |
|
Taxable equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
|
|
|
|
(510 |
) |
|
|
|
|
|
|
|
|
|
|
(384 |
) |
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
156,741 |
|
|
|
|
|
|
|
|
|
|
$ |
160,911 |
|
|
|
|
|
|
_____________________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Nonaccrual loans are included in loans, net of unearned income. No adjustment has been made for these loans in the calculation of yields. |
|
|
(2) |
Interest income and yields are presented on a fully taxable equivalent basis using an income tax rate of 21%. |
|
|
(3) |
Prior to the adoption of CECL on January 1, 2020, these loans were referred to as ACI loans, but with the adoption of CECL they are referred to as PCD loans. |
12
Table 2 (Continued) – Average Balances/Yield/Rates
|
|
|
For the Three Months Ended December 31, 2020 |
|
|
For the Three Months Ended September 30, 2020 |
|
||||||||||||||||||
|
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
||||||
|
(In thousands) |
|
Balance |
|
|
Expense |
|
|
Rate |
|
|
Balance |
|
|
Expense |
|
|
Rate |
|
||||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans |
|
$ |
10,939,304 |
|
|
$ |
125,535 |
|
|
|
4.57 |
% |
|
$ |
11,168,913 |
|
|
$ |
123,177 |
|
|
|
4.39 |
% |
|
ANCI portfolio |
|
|
2,126,553 |
|
|
|
25,943 |
|
|
|
4.85 |
|
|
|
2,295,097 |
|
|
|
28,214 |
|
|
|
4.89 |
|
|
PCD portfolio (3) |
|
|
172,583 |
|
|
|
3,820 |
|
|
|
8.81 |
|
|
|
188,385 |
|
|
|
3,460 |
|
|
|
7.31 |
|
|
Total loans |
|
|
13,238,440 |
|
|
|
155,298 |
|
|
|
4.67 |
|
|
|
13,652,395 |
|
|
|
154,851 |
|
|
|
4.51 |
|
|
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,895,541 |
|
|
|
12,597 |
|
|
|
1.73 |
|
|
|
2,694,012 |
|
|
|
13,164 |
|
|
|
1.94 |
|
|
Tax-exempt (2) |
|
|
306,181 |
|
|
|
2,427 |
|
|
|
3.15 |
|
|
|
266,345 |
|
|
|
2,150 |
|
|
|
3.21 |
|
|
Total investment securities |
|
|
3,201,722 |
|
|
|
15,024 |
|
|
|
1.87 |
|
|
|
2,960,357 |
|
|
|
15,314 |
|
|
|
2.06 |
|
|
Federal funds sold and short-term investments |
|
|
1,178,973 |
|
|
|
548 |
|
|
|
0.18 |
|
|
|
942,017 |
|
|
|
432 |
|
|
|
0.18 |
|
|
Other investments |
|
|
76,878 |
|
|
|
380 |
|
|
|
1.97 |
|
|
|
77,262 |
|
|
|
350 |
|
|
|
1.80 |
|
|
Total interest-earning assets |
|
|
17,696,013 |
|
|
|
171,250 |
|
|
|
3.85 |
|
|
|
17,632,031 |
|
|
|
170,947 |
|
|
|
3.86 |
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
216,116 |
|
|
|
|
|
|
|
|
|
|
|
170,241 |
|
|
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
125,955 |
|
|
|
|
|
|
|
|
|
|
|
127,432 |
|
|
|
|
|
|
|
|
|
|
Accrued interest and other assets |
|
|
709,268 |
|
|
|
|
|
|
|
|
|
|
|
707,553 |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(393,306 |
) |
|
|
|
|
|
|
|
|
|
|
(389,243 |
) |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
18,354,046 |
|
|
|
|
|
|
|
|
|
|
$ |
18,248,014 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ |
7,881,093 |
|
|
$ |
4,145 |
|
|
|
0.21 |
% |
|
$ |
8,037,801 |
|
|
$ |
4,681 |
|
|
|
0.23 |
% |
|
Savings deposits |
|
|
336,304 |
|
|
|
127 |
|
|
|
0.15 |
|
|
|
319,004 |
|
|
|
140 |
|
|
|
0.17 |
|
|
Time deposits |
|
|
2,274,009 |
|
|
|
5,711 |
|
|
|
1.00 |
|
|
|
2,379,430 |
|
|
|
7,741 |
|
|
|
1.29 |
|
|
Total interest-bearing deposits |
|
|
10,491,406 |
|
|
|
9,983 |
|
|
|
0.38 |
|
|
|
10,736,235 |
|
|
|
12,562 |
|
|
|
0.47 |
|
|
Other borrowings |
|
|
149,981 |
|
|
|
931 |
|
|
|
2.47 |
|
|
|
149,973 |
|
|
|
931 |
|
|
|
2.47 |
|
|
Subordinated debentures |
|
|
222,939 |
|
|
|
3,085 |
|
|
|
5.51 |
|
|
|
222,331 |
|
|
|
2,961 |
|
|
|
5.30 |
|
|
Total interest-bearing liabilities |
|
|
10,864,326 |
|
|
|
13,999 |
|
|
|
0.51 |
|
|
|
11,108,539 |
|
|
|
16,454 |
|
|
|
0.59 |
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
5,245,478 |
|
|
|
|
|
|
|
|
|
|
|
4,892,079 |
|
|
|
|
|
|
|
|
|
|
Accrued interest and other liabilities |
|
|
172,212 |
|
|
|
|
|
|
|
|
|
|
|
195,317 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
16,282,016 |
|
|
|
|
|
|
|
|
|
|
|
16,195,935 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
2,072,030 |
|
|
|
|
|
|
|
|
|
|
|
2,052,079 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
18,354,046 |
|
|
|
|
|
|
|
|
|
|
$ |
18,248,014 |
|
|
|
|
|
|
|
|
|
|
Net interest income/net interest spread |
|
|
|
|
|
|
157,251 |
|
|
|
3.34 |
% |
|
|
|
|
|
|
154,493 |
|
|
|
3.27 |
% |
|
Net yield on earning assets/net interest margin |
|
|
|
|
|
|
|
|
|
|
3.54 |
% |
|
|
|
|
|
|
|
|
|
|
3.49 |
% |
|
Taxable equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
|
|
|
|
(510 |
) |
|
|
|
|
|
|
|
|
|
|
(451 |
) |
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
156,741 |
|
|
|
|
|
|
|
|
|
|
$ |
154,042 |
|
|
|
|
|
|
_____________________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Nonaccrual loans are included in loans, net of unearned income. No adjustment has been made for these loans in the calculation of yields. |
|
|
(2) |
Interest income and yields are presented on a fully taxable equivalent basis using an income tax rate of 21%. |
|
|
(3) |
Prior to the adoption of CECL on January 1, 2020, these loans were referred to as ACI loans, but with the adoption of CECL they are referred to as PCD loans. |
13
Table 2 (Continued) – Average Balances/Yield/Rates
|
|
|
For the Year Ended December 31, |
|
|||||||||||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||||||||||
|
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
|
Average |
|
|
Income/ |
|
|
Yield/ |
|
||||||
|
(In thousands) |
|
Balance |
|
|
Expense |
|
|
Rate |
|
|
Balance |
|
|
Expense |
|
|
Rate |
|
||||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans |
|
$ |
10,874,853 |
|
|
$ |
504,036 |
|
|
|
4.63 |
% |
|
$ |
10,053,507 |
|
|
$ |
542,543 |
|
|
|
5.40 |
% |
|
ANCI portfolio |
|
|
2,415,141 |
|
|
|
127,774 |
|
|
|
5.29 |
|
|
|
3,387,367 |
|
|
|
219,183 |
|
|
|
6.47 |
|
|
PCD portfolio (3) |
|
|
193,902 |
|
|
|
16,328 |
|
|
|
8.42 |
|
|
|
273,857 |
|
|
|
34,559 |
|
|
|
12.62 |
|
|
Total loans |
|
|
13,483,895 |
|
|
|
648,138 |
|
|
|
4.81 |
|
|
|
13,714,731 |
|
|
|
796,285 |
|
|
|
5.81 |
|
|
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,515,807 |
|
|
|
51,983 |
|
|
|
2.07 |
|
|
|
1,568,599 |
|
|
|
42,450 |
|
|
|
2.71 |
|
|
Tax-exempt (2) |
|
|
247,643 |
|
|
|
8,332 |
|
|
|
3.36 |
|
|
|
208,090 |
|
|
|
7,983 |
|
|
|
3.84 |
|
|
Total investment securities |
|
|
2,763,450 |
|
|
|
60,315 |
|
|
|
2.18 |
|
|
|
1,776,689 |
|
|
|
50,433 |
|
|
|
2.84 |
|
|
Federal funds sold and short-term investments |
|
|
1,023,367 |
|
|
|
3,092 |
|
|
|
0.30 |
|
|
|
759,026 |
|
|
|
12,762 |
|
|
|
1.68 |
|
|
Other investments |
|
|
77,908 |
|
|
|
1,371 |
|
|
|
1.76 |
|
|
|
70,127 |
|
|
|
2,274 |
|
|
|
3.24 |
|
|
Total interest-earning assets |
|
|
17,348,620 |
|
|
|
712,916 |
|
|
|
4.11 |
|
|
|
16,320,573 |
|
|
|
861,754 |
|
|
|
5.28 |
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
203,413 |
|
|
|
|
|
|
|
|
|
|
|
115,268 |
|
|
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
127,151 |
|
|
|
|
|
|
|
|
|
|
|
128,448 |
|
|
|
|
|
|
|
|
|
|
Accrued interest and other assets |
|
|
833,919 |
|
|
|
|
|
|
|
|
|
|
|
1,239,093 |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(313,377 |
) |
|
|
|
|
|
|
|
|
|
|
(114,256 |
) |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
18,199,726 |
|
|
|
|
|
|
|
|
|
|
$ |
17,689,126 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ |
8,101,392 |
|
|
$ |
38,005 |
|
|
|
0.47 |
% |
|
$ |
7,983,237 |
|
|
$ |
117,462 |
|
|
|
1.47 |
% |
|
Savings deposits |
|
|
305,031 |
|
|
|
763 |
|
|
|
0.25 |
|
|
|
253,170 |
|
|
|
1,066 |
|
|
|
0.42 |
|
|
Time deposits |
|
|
2,425,071 |
|
|
|
36,647 |
|
|
|
1.51 |
|
|
|
2,960,921 |
|
|
|
69,550 |
|
|
|
2.35 |
|
|
Total interest-bearing deposits |
|
|
10,831,494 |
|
|
|
75,415 |
|
|
|
0.70 |
|
|
|
11,197,328 |
|
|
|
188,078 |
|
|
|
1.68 |
|
|
Other borrowings |
|
|
166,730 |
|
|
|
3,906 |
|
|
|
2.34 |
|
|
|
256,815 |
|
|
|
8,704 |
|
|
|
3.39 |
|
|
Subordinated debentures |
|
|
222,545 |
|
|
|
12,879 |
|
|
|
5.79 |
|
|
|
180,371 |
|
|
|
12,121 |
|
|
|
6.72 |
|
|
Total interest-bearing liabilities |
|
|
11,220,769 |
|
|
|
92,200 |
|
|
|
0.82 |
|
|
|
11,634,514 |
|
|
|
208,903 |
|
|
|
1.80 |
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
4,598,544 |
|
|
|
|
|
|
|
|
|
|
|
3,431,300 |
|
|
|
|
|
|
|
|
|
|
Accrued interest and other liabilities |
|
|
208,587 |
|
|
|
|
|
|
|
|
|
|
|
249,456 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
16,027,900 |
|
|
|
|
|
|
|
|
|
|
|
15,315,270 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
2,171,826 |
|
|
|
|
|
|
|
|
|
|
|
2,373,856 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
18,199,726 |
|
|
|
|
|
|
|
|
|
|
$ |
17,689,126 |
|
|
|
|
|
|
|
|
|
|
Net interest income/net interest spread |
|
|
|
|
|
|
620,716 |
|
|
|
3.29 |
% |
|
|
|
|
|
|
652,851 |
|
|
|
3.48 |
% |
|
Net yield on earning assets/net interest margin |
|
|
|
|
|
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
|
|
|
|
|
4.00 |
% |
|
Taxable equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
|
|
|
|
(1,750 |
) |
|
|
|
|
|
|
|
|
|
|
(1,678 |
) |
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
618,966 |
|
|
|
|
|
|
|
|
|
|
$ |
651,173 |
|
|
|
|
|
|
_____________________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Nonaccrual loans are included in loans, net of unearned income. No adjustment has been made for these loans in the calculation of yields. |
|
|
(2) |
Interest income and yields are presented on a fully taxable equivalent basis using an income tax rate of 21%. |
|
|
(3) |
Prior to the adoption of CECL on January 1, 2020, these loans were referred to as ACI loans, but with the adoption of CECL they are referred to as PCD loans. |
14
Table 3 – Loan Interest Income Detail
|
|
For the Three Months Ended, |
For the Year Ended, |
|
||||||||||||||||||||||||
|
(In thousands) |
4Q20 |
|
|
3Q20 |
|
|
2Q20 |
|
|
1Q20 |
|
|
4Q19 |
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
|||||||
|
Interest Income Detail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans |
$ |
125,535 |
|
|
$ |
123,177 |
|
|
$ |
125,922 |
|
|
$ |
129,402 |
|
|
$ |
134,450 |
|
|
$ |
504,036 |
|
|
$ |
542,543 |
|
|
ANCI loans: interest income |
|
20,507 |
|
|
|
22,850 |
|
|
|
26,264 |
|
|
|
32,940 |
|
|
|
37,637 |
|
|
|
102,562 |
|
|
|
180,974 |
|
|
ANCI loans: accretion |
|
5,436 |
|
|
|
5,364 |
|
|
|
6,703 |
|
|
|
7,710 |
|
|
|
8,610 |
|
|
|
25,212 |
|
|
|
38,209 |
|
|
PCD loans: interest income (1) |
|
3,355 |
|
|
|
2,421 |
|
|
|
3,111 |
|
|
|
3,039 |
|
|
|
3,839 |
|
|
|
11,926 |
|
|
|
29,927 |
|
|
PCD loans: accretion (1) |
|
465 |
|
|
|
1,039 |
|
|
|
854 |
|
|
|
2,043 |
|
|
|
6,018 |
|
|
|
4,402 |
|
|
|
4,632 |
|
|
Total loan interest income |
$ |
155,298 |
|
|
$ |
154,851 |
|
|
$ |
162,854 |
|
|
$ |
175,134 |
|
|
$ |
190,554 |
|
|
$ |
648,138 |
|
|
$ |
796,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans |
|
4.57 |
% |
|
|
4.39 |
% |
|
|
4.53 |
|
% |
|
5.10 |
|
% |
|
5.25 |
|
% |
|
4.63 |
% |
|
|
5.40 |
% |
|
ANCI loans without discount accretion |
|
3.84 |
|
|
|
3.96 |
|
|
|
4.20 |
|
|
|
4.85 |
|
|
|
4.95 |
|
|
|
4.25 |
|
|
|
5.34 |
|
|
ANCI loans discount accretion |
|
1.01 |
|
|
|
0.93 |
|
|
|
1.08 |
|
|
|
1.14 |
|
|
|
1.13 |
|
|
|
1.04 |
|
|
|
1.13 |
|
|
PCD loans without discount accretion |
|
7.73 |
|
|
|
5.11 |
|
|
|
6.30 |
|
|
|
5.65 |
|
|
|
6.20 |
|
|
|
6.15 |
|
|
|
10.93 |
|
|
PCD loans discount accretion |
|
1.08 |
|
|
|
2.20 |
|
|
|
1.73 |
|
|
|
3.80 |
|
|
|
9.73 |
|
|
|
2.27 |
|
|
|
1.69 |
|
|
Total loan yield |
|
4.67 |
% |
|
|
4.51 |
% |
|
|
4.72 |
|
% |
|
5.35 |
|
% |
|
5.63 |
|
% |
|
4.81 |
% |
|
|
5.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Prior year PCD amounts have been revised to be comparable to the current year presentation. Interest income for PCD loans represents contractual interest. |
15
|
|
Table 4 – Allowance for Credit Losses (“ACL”) (1)
|
|
|
For the Three Months Ended |
|
|
For the Year Ended December 31, |
|
||||||||||||||||||||||
|
(In thousands) |
|
4Q20 |
|
|
3Q20 |
|
|
2Q20 |
|
|
1Q20 |
|
|
4Q19 |
|
|
2020 |
|
|
2019 |
|
|||||||
|
Balance at beginning of period |
|
$ |
385,412 |
|
|
$ |
370,901 |
|
|
$ |
245,246 |
|
|
$ |
119,643 |
|
|
$ |
127,773 |
|
|
$ |
119,643 |
|
|
$ |
94,378 |
|
|
Cumulative effect of the adoption of CECL (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
75,850 |
|
|
|
— |
|
|
|
75,850 |
|
|
|
— |
|
|
Charge-offs |
|
|
(23,956 |
) |
|
|
(21,830 |
) |
|
|
(33,452 |
) |
|
|
(33,098 |
) |
|
|
(35,432 |
) |
|
|
(112,336 |
) |
|
|
(87,001 |
) |
|
Recoveries |
|
|
2,770 |
|
|
|
1,936 |
|
|
|
901 |
|
|
|
613 |
|
|
|
176 |
|
|
|
6,220 |
|
|
|
1,239 |
|
|
Net charge-offs |
|
|
(21,186 |
) |
|
|
(19,894 |
) |
|
|
(32,551 |
) |
|
|
(32,485 |
) |
|
|
(35,256 |
) |
|
|
(106,116 |
) |
|
|
(85,762 |
) |
|
Provision for loan losses |
|
|
2,934 |
|
|
|
34,405 |
|
|
|
158,206 |
|
|
|
82,238 |
|
|
|
27,126 |
|
|
|
277,783 |
|
|
|
111,027 |
|
|
Balance at end of period |
|
$ |
367,160 |
|
|
$ |
385,412 |
|
|
$ |
370,901 |
|
|
$ |
245,246 |
|
|
$ |
119,643 |
|
|
$ |
367,160 |
|
|
$ |
119,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
This table represents the activity in the ACL for funded loans. |
|
|
(2) |
The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (“CECL”), on January 1, 2020 and recorded this cumulative effect adjustment as a result of accounting change. |
Table 5 – ACL Activity by Segment
|
|
|
For the Three Months Ended December 31, 2020 |
|
|||||||||||||||||||||
|
(In thousands) |
|
Commercial and Industrial |
|
|
Commercial Real Estate |
|
|
Consumer |
|
|
Total Allowance for Credit Losses |
|
|
Reserve for Unfunded Commitments (1) |
|
|
Total |
|
||||||
|
As of September 30, 2020 |
|
$ |
202,197 |
|
|
$ |
143,008 |
|
|
$ |
40,207 |
|
|
$ |
385,412 |
|
|
$ |
2,395 |
|
|
$ |
387,807 |
|
|
Provision for credit losses |
|
|
(2,990 |
) |
|
|
7,372 |
|
|
|
(1,448 |
) |
|
|
2,934 |
|
|
|
(99 |
) |
|
|
2,835 |
|
|
Charge-offs |
|
|
(12,870 |
) |
|
|
(10,500 |
) |
|
|
(586 |
) |
|
|
(23,956 |
) |
|
|
— |
|
|
|
(23,956 |
) |
|
Recoveries |
|
|
1,028 |
|
|
|
1,307 |
|
|
|
435 |
|
|
|
2,770 |
|
|
|
— |
|
|
|
2,770 |
|
|
As of December 31, 2020 |
|
$ |
187,365 |
|
|
$ |
141,187 |
|
|
$ |
38,608 |
|
|
$ |
367,160 |
|
|
$ |
2,296 |
|
|
$ |
369,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2020 |
|
|||||||||||||||||||||
|
(In thousands) |
|
Commercial and Industrial |
|
|
Commercial Real Estate |
|
|
Consumer |
|
|
Total Allowance for Credit Losses |
|
|
Reserve for Unfunded Commitments (1) |
|
|
Total |
|
||||||
|
As of December 31, 2019 |
|
$ |
89,796 |
|
|
$ |
15,319 |
|
|
$ |
14,528 |
|
|
$ |
119,643 |
|
|
$ |
1,699 |
|
|
$ |
121,342 |
|
|
Cumulative effect of the adoption of CECL |
|
|
32,951 |
|
|
|
20,599 |
|
|
|
22,300 |
|
|
|
75,850 |
|
|
|
332 |
|
|
|
76,182 |
|
|
As of January 1, 2020 |
|
|
122,747 |
|
|
|
35,918 |
|
|
|
36,828 |
|
|
|
195,493 |
|
|
|
2,031 |
|
|
|
197,524 |
|
|
Provision for credit losses |
|
|
157,580 |
|
|
|
117,792 |
|
|
|
2,411 |
|
|
|
277,783 |
|
|
|
265 |
|
|
|
278,048 |
|
|
Charge-offs |
|
|
(96,277 |
) |
|
|
(14,283 |
) |
|
|
(1,776 |
) |
|
|
(112,336 |
) |
|
|
— |
|
|
|
(112,336 |
) |
|
Recoveries |
|
|
3,315 |
|
|
|
1,760 |
|
|
|
1,145 |
|
|
|
6,220 |
|
|
|
— |
|
|
|
6,220 |
|
|
As of December 31, 2020 |
|
$ |
187,365 |
|
|
$ |
141,187 |
|
|
$ |
38,608 |
|
|
$ |
367,160 |
|
|
$ |
2,296 |
|
|
$ |
369,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The reserve for unfunded commitments is recorded in other liabilities in the consolidated balance sheets. |
16
|
|
Table 6 – Criticized Loans by Segment
|
|
|
As of December 31, 2020 |
|
|||||||||||||
|
(Amortized cost in thousands) |
|
Special Mention |
|
|
Substandard |
|
|
Doubtful |
|
|
Total Criticized |
|
||||
|
Commercial and industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General C&I |
|
$ |
61,910 |
|
|
$ |
90,896 |
|
|
$ |
12,583 |
|
|
$ |
165,389 |
|
|
Energy |
|
|
93,708 |
|
|
|
150,810 |
|
|
|
8,115 |
|
|
|
252,633 |
|
|
Restaurant |
|
|
55,141 |
|
|
|
133,709 |
|
|
|
6,987 |
|
|
|
195,837 |
|
|
Healthcare |
|
|
761 |
|
|
|
29,614 |
|
|
|
— |
|
|
|
30,375 |
|
|
Total commercial and industrial |
|
|
211,520 |
|
|
|
405,029 |
|
|
|
27,685 |
|
|
|
644,234 |
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial, retail, and other |
|
|
35,992 |
|
|
|
26,540 |
|
|
|
— |
|
|
|
62,532 |
|
|
Hospitality (1) |
|
|
54,449 |
|
|
|
83,460 |
|
|
|
— |
|
|
|
137,909 |
|
|
Multifamily |
|
|
90 |
|
|
|
198 |
|
|
|
— |
|
|
|
288 |
|
|
Office |
|
|
4,863 |
|
|
|
7,843 |
|
|
|
— |
|
|
|
12,706 |
|
|
Total commercial real estate |
|
|
95,394 |
|
|
|
118,041 |
|
|
|
— |
|
|
|
213,435 |
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
— |
|
|
|
14,023 |
|
|
|
— |
|
|
|
14,023 |
|
|
Other |
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
|
Total consumer |
|
|
— |
|
|
|
14,027 |
|
|
|
— |
|
|
|
14,027 |
|
|
Total |
|
$ |
306,914 |
|
|
$ |
537,097 |
|
|
$ |
27,685 |
|
|
$ |
871,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2020 |
|
|||||||||||||
|
(Amortized cost in thousands) |
|
Special Mention |
|
|
Substandard |
|
|
Doubtful |
|
|
Total Criticized |
|
||||
|
Commercial and industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General C&I |
|
$ |
71,384 |
|
|
$ |
156,323 |
|
|
$ |
9,270 |
|
|
$ |
236,977 |
|
|
Energy sector |
|
|
146,772 |
|
|
|
165,277 |
|
|
|
7,816 |
|
|
|
319,865 |
|
|
Restaurant industry |
|
|
97,315 |
|
|
|
169,899 |
|
|
|
7,624 |
|
|
|
274,838 |
|
|
Healthcare |
|
|
722 |
|
|
|
58,802 |
|
|
|
— |
|
|
|
59,524 |
|
|
Total commercial and industrial |
|
|
316,193 |
|
|
|
550,301 |
|
|
|
24,710 |
|
|
|
891,204 |
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial, retail, and other |
|
|
29,574 |
|
|
|
11,856 |
|
|
|
— |
|
|
|
41,430 |
|
|
Hospitality (1) |
|
|
64,323 |
|
|
|
46,465 |
|
|
|
— |
|
|
|
110,788 |
|
|
Multifamily |
|
|
91 |
|
|
|
200 |
|
|
|
— |
|
|
|
291 |
|
|
Office |
|
|
346 |
|
|
|
13,250 |
|
|
|
3,029 |
|
|
|
16,625 |
|
|
Total commercial real estate |
|
|
94,334 |
|
|
|
71,771 |
|
|
|
3,029 |
|
|
|
169,134 |
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate |
|
|
— |
|
|
|
22,770 |
|
|
|
— |
|
|
|
22,770 |
|
|
Other |
|
|
— |
|
|
|
358 |
|
|
|
— |
|
|
|
358 |
|
|
Total consumer |
|
|
— |
|
|
|
23,128 |
|
|
|
— |
|
|
|
23,128 |
|
|
Total |
|
$ |
410,527 |
|
|
$ |
645,200 |
|
|
$ |
27,739 |
|
|
$ |
1,083,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Hospitality balances have historically been included in Industrial, retail, and other. |
|
|||||||||||||||
17
Table 7 – Nonperforming Assets
|
|
|
As of |
|
|||||||||||||||||
|
(In thousands) |
|
4Q20 (3) |
|
|
3Q20 |
|
|
2Q20 |
|
|
1Q20 |
|
|
4Q19 |
|
|||||
|
Nonperforming loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
109,000 |
|
|
$ |
145,570 |
|
|
$ |
182,839 |
|
|
$ |
136,712 |
|
|
$ |
106,803 |
|
|
Commercial real estate |
|
|
14,969 |
|
|
|
27,163 |
|
|
|
25,261 |
|
|
|
8,133 |
|
|
|
1,127 |
|
|
Consumer |
|
|
14,033 |
|
|
|
16,364 |
|
|
|
16,284 |
|
|
|
14,808 |
|
|
|
7,289 |
|
|
Small business (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,337 |
|
|
Total nonperforming loans ("NPL") |
|
|
138,002 |
|
|
|
189,097 |
|
|
|
224,384 |
|
|
|
159,653 |
|
|
|
119,556 |
|
|
Foreclosed OREO and other NPA |
|
|
19,788 |
|
|
|
20,344 |
|
|
|
13,949 |
|
|
|
15,679 |
|
|
|
5,958 |
|
|
Total nonperforming assets |
|
$ |
157,790 |
|
|
$ |
209,441 |
|
|
$ |
238,333 |
|
|
$ |
175,332 |
|
|
$ |
125,514 |
|
|
NPL as a percentage of total loans |
|
|
1.08 |
% |
|
|
1.40 |
% |
|
|
1.64 |
% |
|
|
1.19 |
% |
|
|
0.92 |
% |
|
NPA as a percentage of loans plus OREO/other |
|
|
1.24 |
% |
|
|
1.55 |
% |
|
|
1.74 |
% |
|
|
1.31 |
% |
|
|
0.97 |
% |
|
NPA as a percentage of total assets |
|
|
0.84 |
% |
|
|
1.14 |
% |
|
|
1.26 |
% |
|
|
0.99 |
% |
|
|
0.71 |
% |
|
Total accruing loans 90 days or more past due |
|
$ |
13,880 |
|
|
$ |
7,260 |
|
|
$ |
3,123 |
|
|
$ |
1,999 |
|
|
$ |
23,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Amounts are not comparable due to our adoption of CECL on January 1, 2020. Prior to this date, pools of individual ACI loans were excluded because they continued to earn interest income from the accretable yield at the pool level. With the adoption of CECL, the pools were discontinued, and performance is based on contractual terms for individual loans. Additionally, prior to January 1, 2020, we used recorded investment in this table. With the adoption of CECL, we now use amortized cost. |
|
|
(2) |
Upon the adoption of CECL, small business loans are included in commercial and industrial and commercial real estate loans. |
|
|
(3) |
Nonperforming loans do not include nonperforming loans held for sale of $176 thousand. |
18
|
|
Table 8 – Noninterest Income
|
|
|
For the Three Months Ended |
Years Ended December 31, |
|
||||||||||||||||||||||||
|
(In thousands) |
|
4Q20 |
|
|
3Q20 |
|
|
2Q20 |
|
|
1Q20 |
|
|
4Q19 |
|
|
2020 |
|
|
2019 |
|
|||||||
|
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge revenue |
|
$ |
169,248 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
169,248 |
|
|
$ |
— |
|
|
Investment advisory revenue |
|
|
7,457 |
|
|
|
6,797 |
|
|
|
6,505 |
|
|
|
5,605 |
|
|
|
6,920 |
|
|
|
26,364 |
|
|
|
24,890 |
|
|
Trust services revenue |
|
|
4,885 |
|
|
|
4,556 |
|
|
|
4,092 |
|
|
|
4,815 |
|
|
|
4,713 |
|
|
|
18,349 |
|
|
|
18,066 |
|
|
Service charges on deposit accounts |
|
|
6,028 |
|
|
|
5,847 |
|
|
|
4,852 |
|
|
|
6,416 |
|
|
|
5,181 |
|
|
|
23,143 |
|
|
|
20,503 |
|
|
Mortgage banking income |
|
|
3,062 |
|
|
|
3,535 |
|
|
|
2,020 |
|
|
|
1,111 |
|
|
|
841 |
|
|
|
9,727 |
|
|
|
3,174 |
|
|
Credit-related fees |
|
|
4,766 |
|
|
|
4,202 |
|
|
|
4,401 |
|
|
|
5,983 |
|
|
|
5,094 |
|
|
|
19,352 |
|
|
|
21,265 |
|
|
Bankcard fees |
|
|
1,775 |
|
|
|
1,745 |
|
|
|
1,716 |
|
|
|
1,958 |
|
|
|
1,933 |
|
|
|
7,194 |
|
|
|
8,486 |
|
|
Payroll processing revenue |
|
|
1,309 |
|
|
|
1,255 |
|
|
|
1,143 |
|
|
|
1,367 |
|
|
|
1,373 |
|
|
|
5,074 |
|
|
|
5,149 |
|
|
SBA income |
|
|
2,889 |
|
|
|
3,037 |
|
|
|
1,335 |
|
|
|
1,908 |
|
|
|
2,153 |
|
|
|
9,169 |
|
|
|
7,232 |
|
|
Other service fees |
|
|
1,751 |
|
|
|
1,450 |
|
|
|
1,528 |
|
|
|
1,912 |
|
|
|
1,701 |
|
|
|
6,641 |
|
|
|
7,412 |
|
|
Securities gains, net |
|
|
1,353 |
|
|
|
79 |
|
|
|
2,286 |
|
|
|
2,994 |
|
|
|
317 |
|
|
|
6,712 |
|
|
|
2,018 |
|
|
Other |
|
|
5,222 |
|
|
|
88 |
|
|
|
72 |
|
|
|
1,000 |
|
|
|
3,672 |
|
|
|
6,382 |
|
|
|
12,730 |
|
|
Total noninterest income |
|
$ |
209,745 |
|
|
$ |
32,591 |
|
|
$ |
29,950 |
|
|
$ |
35,069 |
|
|
$ |
33,898 |
|
|
$ |
307,355 |
|
|
$ |
130,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9 – Noninterest Expenses
|
|
|
For the Three Months Ended |
Years Ended December 31, |
|
||||||||||||||||||||||||
|
(In thousands) |
|
4Q20 |
|
|
3Q20 |
|
|
2Q20 |
|
|
1Q20 |
|
|
4Q19 |
|
|
2020 |
|
|
2019 |
|
|||||||
|
Noninterest Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
59,833 |
|
|
$ |
51,734 |
|
|
$ |
47,158 |
|
|
$ |
48,807 |
|
|
$ |
54,840 |
|
|
$ |
207,532 |
|
|
$ |
213,874 |
|
|
Premises and equipment |
|
|
11,036 |
|
|
|
10,716 |
|
|
|
10,634 |
|
|
|
10,808 |
|
|
|
11,618 |
|
|
|
43,194 |
|
|
|
44,637 |
|
|
Merger related expenses |
|
|
— |
|
|
|
2,105 |
|
|
|
— |
|
|
|
1,282 |
|
|
|
925 |
|
|
|
3,386 |
|
|
|
28,497 |
|
|
Intangible asset amortization |
|
|
5,164 |
|
|
|
5,299 |
|
|
|
5,472 |
|
|
|
5,592 |
|
|
|
5,876 |
|
|
|
21,528 |
|
|
|
23,862 |
|
|
Data processing |
|
|
3,047 |
|
|
|
3,024 |
|
|
|
3,084 |
|
|
|
3,352 |
|
|
|
3,343 |
|
|
|
12,507 |
|
|
|
13,013 |
|
|
Software amortization |
|
|
4,480 |
|
|
|
4,432 |
|
|
|
4,036 |
|
|
|
3,547 |
|
|
|
3,427 |
|
|
|
16,495 |
|
|
|
13,352 |
|
|
Consulting and professional fees |
|
|
3,450 |
|
|
|
3,320 |
|
|
|
3,009 |
|
|
|
2,707 |
|
|
|
3,552 |
|
|
|
12,485 |
|
|
|
10,301 |
|
|
Loan related expenses |
|
|
1,709 |
|
|
|
953 |
|
|
|
735 |
|
|
|
760 |
|
|
|
654 |
|
|
|
4,157 |
|
|
|
2,383 |
|
|
FDIC insurance |
|
|
3,007 |
|
|
|
2,528 |
|
|
|
3,939 |
|
|
|
2,436 |
|
|
|
1,245 |
|
|
|
11,910 |
|
|
|
5,394 |
|
|
Communications |
|
|
1,175 |
|
|
|
1,119 |
|
|
|
1,002 |
|
|
|
1,156 |
|
|
|
1,236 |
|
|
|
4,453 |
|
|
|
5,116 |
|
|
Advertising and public relations |
|
|
956 |
|
|
|
716 |
|
|
|
920 |
|
|
|
1,464 |
|
|
|
1,764 |
|
|
|
4,057 |
|
|
|
5,017 |
|
|
Legal expenses |
|
|
726 |
|
|
|
681 |
|
|
|
579 |
|
|
|
411 |
|
|
|
306 |
|
|
|
2,398 |
|
|
|
1,608 |
|
|
Other |
|
|
10,748 |
|
|
|
8,232 |
|
|
|
8,052 |
|
|
|
11,636 |
|
|
|
11,732 |
|
|
|
38,667 |
|
|
|
41,716 |
|
|
Noninterest expenses excluding goodwill impairment charge |
|
|
105,331 |
|
|
|
94,859 |
|
|
|
88,620 |
|
|
|
93,958 |
|
|
|
100,519 |
|
|
|
382,769 |
|
|
|
408,770 |
|
|
Goodwill impairment charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
443,695 |
|
|
|
— |
|
|
|
443,695 |
|
|
|
— |
|
|
Total noninterest expenses |
|
$ |
105,331 |
|
|
$ |
94,859 |
|
|
$ |
88,620 |
|
|
$ |
537,653 |
|
|
$ |
100,519 |
|
|
$ |
826,464 |
|
|
$ |
408,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
Table 10 – Reconciliation of Non-GAAP Financial Measures
|
|
As of and for the Three Months Ended |
|
As of and for the Year Ended December 31, |
|
|||||||||||||||||
|
(In thousands, except share and per share data) |
4Q20 |
|
3Q20 |
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
2020 |
|
2019 |
|
|||||||
|
Efficiency ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses (numerator) |
$ |
105,331 |
|
$ |
94,859 |
|
$ |
88,620 |
|
$ |
537,653 |
|
$ |
100,519 |
|
$ |
826,464 |
|
$ |
408,770 |
|
|
Net interest income |
$ |
156,741 |
|
$ |
154,042 |
|
$ |
154,714 |
|
$ |
153,468 |
|
$ |
160,911 |
|
$ |
618,966 |
|
$ |
651,173 |
|
|
Noninterest income |
|
209,745 |
|
|
32,591 |
|
|
29,950 |
|
|
35,069 |
|
|
33,898 |
|
|
307,355 |
|
|
130,925 |
|
|
Operating revenue (denominator) |
$ |
366,486 |
|
$ |
186,633 |
|
$ |
184,664 |
|
$ |
188,537 |
|
$ |
194,809 |
|
$ |
926,321 |
|
$ |
782,098 |
|
|
Efficiency ratio |
|
28.74 |
% |
|
50.83 |
% |
|
47.99 |
% |
|
285.17 |
% |
|
51.60 |
% |
|
89.22 |
% |
|
52.27 |
% |
|
Adjusted efficiency ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses |
$ |
105,331 |
|
$ |
94,859 |
|
$ |
88,620 |
|
$ |
537,653 |
|
$ |
100,519 |
|
$ |
826,464 |
|
$ |
408,770 |
|
|
Less: non-cash goodwill impairment charge |
|
— |
|
|
— |
|
|
— |
|
|
443,695 |
|
|
— |
|
|
443,695 |
|
|
— |
|
|
Less: merger related expenses |
|
— |
|
|
2,105 |
|
|
— |
|
|
1,282 |
|
|
925 |
|
|
3,386 |
|
|
28,497 |
|
|
Less: pension plan termination expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,225 |
|
|
— |
|
|
1,225 |
|
|
Less: expenses related to COVID-19 pandemic |
|
215 |
|
|
235 |
|
|
1,205 |
|
|
122 |
|
|
— |
|
|
1,777 |
|
|
— |
|
|
Adjusted noninterest expenses (numerator) |
$ |
105,116 |
|
$ |
92,519 |
|
$ |
87,415 |
|
$ |
92,554 |
|
$ |
98,369 |
|
$ |
377,606 |
|
$ |
379,048 |
|
|
Net interest income |
$ |
156,741 |
|
$ |
154,042 |
|
$ |
154,714 |
|
$ |
153,468 |
|
$ |
160,911 |
|
$ |
618,966 |
|
$ |
651,173 |
|
|
Noninterest income |
|
209,745 |
|
|
32,591 |
|
|
29,950 |
|
|
35,069 |
|
|
33,898 |
|
|
307,355 |
|
|
130,925 |
|
|
Plus: impairment charge on branch building |
|
— |
|
|
538 |
|
|
— |
|
|
— |
|
|
— |
|
|
538 |
|
|
— |
|
|
Less: gain on sale of acquired loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,263 |
|
|
— |
|
|
2,777 |
|
|
Less: securities gains, net |
|
1,353 |
|
|
79 |
|
|
2,286 |
|
|
2,994 |
|
|
317 |
|
|
6,712 |
|
|
2,018 |
|
|
Adjusted noninterest income |
|
208,392 |
|
|
33,050 |
|
|
27,664 |
|
|
32,075 |
|
|
32,318 |
|
|
301,181 |
|
|
128,130 |
|
|
Adjusted operating revenue (denominator) |
$ |
365,133 |
|
$ |
187,092 |
|
$ |
182,378 |
|
$ |
185,543 |
|
$ |
193,229 |
|
$ |
920,147 |
|
$ |
779,303 |
|
|
Adjusted efficiency ratio |
|
28.79 |
% |
|
49.45 |
% |
|
47.93 |
% |
|
49.88 |
% |
|
50.91 |
% |
|
41.04 |
% |
|
48.64 |
% |
|
Tangible common equity ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
$ |
2,121,102 |
|
$ |
2,071,472 |
|
$ |
2,045,480 |
|
$ |
2,113,543 |
|
$ |
2,460,846 |
|
$ |
2,121,102 |
|
$ |
2,460,846 |
|
|
Less: goodwill and other intangible assets, net |
|
(126,841 |
) |
|
(132,005 |
) |
|
(137,318 |
) |
|
(142,782 |
) |
|
(590,949 |
) |
|
(126,841 |
) |
|
(590,949 |
) |
|
Tangible common shareholders’ equity |
|
1,994,261 |
|
|
1,939,467 |
|
|
1,908,162 |
|
|
1,970,761 |
|
|
1,869,897 |
|
|
1,994,261 |
|
|
1,869,897 |
|
|
Total assets |
|
18,712,567 |
|
|
18,404,195 |
|
|
18,857,753 |
|
|
17,237,918 |
|
|
17,800,229 |
|
|
18,712,567 |
|
|
17,800,229 |
|
|
Less: goodwill and other intangible assets, net |
|
(126,841 |
) |
|
(132,005 |
) |
|
(137,318 |
) |
|
(142,782 |
) |
|
(590,949 |
) |
|
(126,841 |
) |
|
(590,949 |
) |
|
Tangible assets |
$ |
18,585,726 |
|
$ |
18,272,190 |
|
$ |
18,720,435 |
|
$ |
17,095,136 |
|
$ |
17,209,280 |
|
$ |
18,585,726 |
|
$ |
17,209,280 |
|
|
Tangible common equity ratio |
|
10.73 |
% |
|
10.61 |
% |
|
10.19 |
% |
|
11.53 |
% |
|
10.87 |
% |
|
10.73 |
% |
|
10.87 |
% |
|
Tangible book value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
$ |
2,121,102 |
|
$ |
2,071,472 |
|
$ |
2,045,480 |
|
$ |
2,113,543 |
|
$ |
2,460,846 |
|
$ |
2,121,102 |
|
$ |
2,460,846 |
|
|
Less: goodwill and other intangible assets, net |
|
(126,841 |
) |
|
(132,005 |
) |
|
(137,318 |
) |
|
(142,782 |
) |
|
(590,949 |
) |
|
(126,841 |
) |
|
(590,949 |
) |
|
Tangible common shareholders’ equity |
$ |
1,994,261 |
|
$ |
1,939,467 |
|
$ |
1,908,162 |
|
$ |
1,970,761 |
|
$ |
1,869,897 |
|
$ |
1,994,261 |
|
$ |
1,869,897 |
|
|
Common shares outstanding |
|
125,978,561 |
|
|
125,946,793 |
|
|
125,930,741 |
|
|
125,897,827 |
|
|
127,597,569 |
|
|
125,978,561 |
|
|
127,597,569 |
|
|
Tangible book value per share |
$ |
15.83 |
|
$ |
15.40 |
|
$ |
15.15 |
|
$ |
15.65 |
|
$ |
14.65 |
|
$ |
15.83 |
|
$ |
14.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
Table 10 (Continued) – Reconciliation of Non-GAAP Measures
|
|
As of and for the Three Months Ended |
|
As of and for the Year Ended December 31, |
|
|||||||||||||||||
|
(In thousands, except share and per share data) |
4Q20 |
|
3Q20 |
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
2020 |
|
2019 |
|
|||||||
|
Return on average tangible common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common equity |
$ |
2,072,030 |
|
$ |
2,052,079 |
|
$ |
2,118,796 |
|
$ |
2,446,810 |
|
$ |
2,471,398 |
|
$ |
2,171,826 |
|
$ |
2,373,856 |
|
|
Less: average intangible assets |
|
(130,146 |
) |
|
(135,491 |
) |
|
(140,847 |
) |
|
(584,513 |
) |
|
(595,439 |
) |
|
(247,121 |
) |
|
(598,546 |
) |
|
Average tangible common shareholders’ equity |
$ |
1,941,884 |
|
$ |
1,916,588 |
|
$ |
1,977,949 |
|
$ |
1,862,297 |
|
$ |
1,875,959 |
|
$ |
1,924,705 |
|
$ |
1,775,310 |
|
|
Net income (loss) |
$ |
200,583 |
|
$ |
49,315 |
|
$ |
(56,114 |
) |
$ |
(399,311 |
) |
$ |
51,426 |
|
$ |
(205,527 |
) |
$ |
201,958 |
|
|
Plus: non-cash goodwill impairment charge, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
412,918 |
|
|
— |
|
|
412,918 |
|
|
— |
|
|
Plus: intangible asset amortization, net of tax |
|
3,939 |
|
|
4,042 |
|
|
4,174 |
|
|
4,261 |
|
|
4,477 |
|
|
16,416 |
|
|
18,240 |
|
|
Tangible net income (loss) |
$ |
204,522 |
|
$ |
53,357 |
|
$ |
(51,940 |
) |
$ |
17,868 |
|
$ |
55,903 |
|
$ |
223,807 |
|
$ |
220,198 |
|
|
Return on average tangible common equity(1) |
|
41.90 |
% |
|
11.08 |
% |
|
(10.56 |
)% |
|
3.86 |
% |
|
11.82 |
% |
|
11.63 |
% |
|
12.40 |
% |
|
Adjusted return on average tangible common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible common shareholders’ equity |
$ |
1,941,884 |
|
$ |
1,916,588 |
|
$ |
1,977,949 |
|
$ |
1,862,297 |
|
$ |
1,875,959 |
|
$ |
1,924,705 |
|
$ |
1,775,310 |
|
|
Tangible net income (loss) |
$ |
204,522 |
|
$ |
53,357 |
|
$ |
(51,940 |
) |
$ |
17,868 |
|
$ |
55,903 |
|
$ |
223,807 |
|
$ |
220,198 |
|
|
Non-routine items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: merger related expenses |
|
— |
|
|
2,105 |
|
|
— |
|
|
1,282 |
|
|
925 |
|
|
3,386 |
|
|
28,497 |
|
|
Plus: pension plan termination expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,225 |
|
|
— |
|
|
1,225 |
|
|
Plus: expenses related to COVID-19 pandemic |
|
215 |
|
|
235 |
|
|
1,205 |
|
|
122 |
|
|
— |
|
|
1,777 |
|
|
— |
|
|
Plus: impairment loss on branch building |
|
— |
|
|
538 |
|
|
— |
|
|
— |
|
|
— |
|
|
538 |
|
|
— |
|
|
Less: gain on sale of acquired loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,263 |
|
|
— |
|
|
2,777 |
|
|
Less: securities gains, net |
|
1,353 |
|
|
79 |
|
|
2,286 |
|
|
2,994 |
|
|
317 |
|
|
6,712 |
|
|
2,018 |
|
|
Tax Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: income tax effect of tax deductible non-routine items |
|
(270 |
) |
|
664 |
|
|
(256 |
) |
|
(464 |
) |
|
48 |
|
|
(326 |
) |
|
5,756 |
|
|
Total non-routine items, after tax |
|
(868 |
) |
|
2,135 |
|
|
(825 |
) |
|
(1,126 |
) |
|
522 |
|
|
(684 |
) |
|
21,171 |
|
|
Adjusted tangible net income (loss) |
$ |
203,654 |
|
$ |
55,492 |
|
$ |
(52,765 |
) |
$ |
16,742 |
|
$ |
56,425 |
|
$ |
223,122 |
|
$ |
241,369 |
|
|
Adjusted return on average tangible common equity(1) |
|
41.72 |
% |
|
11.52 |
% |
|
(10.73 |
)% |
|
3.62 |
% |
|
11.93 |
% |
|
11.59 |
% |
|
13.60 |
% |
|
Adjusted return on average assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
$ |
18,354,046 |
|
$ |
18,248,014 |
|
$ |
18,500,600 |
|
$ |
17,694,018 |
|
$ |
17,843,383 |
|
$ |
18,199,726 |
|
$ |
17,689,126 |
|
|
Net income (loss) |
$ |
200,583 |
|
$ |
49,315 |
|
$ |
(56,114 |
) |
$ |
(399,311 |
) |
$ |
51,426 |
|
$ |
(205,527 |
) |
$ |
201,958 |
|
|
Return on average assets |
|
4.35 |
% |
|
1.08 |
% |
|
(1.22 |
)% |
|
(9.08 |
)% |
|
1.14 |
% |
|
(1.13 |
)% |
|
1.14 |
% |
|
Net income (loss) |
$ |
200,583 |
|
$ |
49,315 |
|
$ |
(56,114 |
) |
$ |
(399,311 |
) |
$ |
51,426 |
|
$ |
(205,527 |
) |
$ |
201,958 |
|
|
Plus: non-cash goodwill impairment charge, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
412,918 |
|
|
— |
|
|
412,918 |
|
|
— |
|
|
Total non-routine items, after tax |
|
(868 |
) |
|
2,135 |
|
|
(825 |
) |
|
(1,126 |
) |
|
522 |
|
|
(684 |
) |
|
21,171 |
|
|
Adjusted net income (loss) |
$ |
199,715 |
|
$ |
51,450 |
|
$ |
(56,939 |
) |
$ |
12,481 |
|
$ |
51,948 |
|
$ |
206,707 |
|
$ |
223,129 |
|
|
Adjusted return on average assets(1) |
|
4.33 |
% |
|
1.12 |
% |
|
(1.24 |
)% |
|
0.28 |
% |
|
1.16 |
% |
|
1.14 |
% |
|
1.26 |
% |
|
Adjusted diluted earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding |
|
126,408,959 |
|
|
126,094,868 |
|
|
125,924,652 |
|
|
126,630,446 |
|
|
128,003,089 |
|
|
126,120,534 |
|
|
129,017,599 |
|
|
Net income (loss) allocated to common stock |
$ |
198,765 |
|
$ |
48,884 |
|
$ |
(56,114 |
) |
$ |
(399,311 |
) |
$ |
51,248 |
|
$ |
(205,527 |
) |
$ |
201,275 |
|
|
Plus: non-cash goodwill impairment, net of tax |
|
— |
|
|
— |
|
|
— |
|
|
412,918 |
|
|
— |
|
|
412,918 |
|
|
— |
|
|
Total non-routine items, after tax |
|
(868 |
) |
|
2,135 |
|
|
(825 |
) |
|
(1,126 |
) |
|
522 |
|
|
(684 |
) |
|
21,171 |
|
|
Adjusted net income (loss) allocated to common stock |
$ |
197,897 |
|
$ |
51,019 |
|
$ |
(56,939 |
) |
$ |
12,481 |
|
$ |
51,770 |
|
$ |
206,707 |
|
$ |
222,446 |
|
|
Adjusted diluted earnings (loss) per share |
$ |
1.57 |
|
$ |
0.40 |
|
$ |
(0.45 |
) |
$ |
0.10 |
|
$ |
0.40 |
|
$ |
1.64 |
|
$ |
1.72 |
|
|
Adjusted pre-tax, pre-provision net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes |
$ |
258,320 |
|
$ |
58,801 |
|
$ |
(62,767 |
) |
$ |
(432,545 |
) |
$ |
67,164 |
|
$ |
(178,191 |
) |
$ |
262,301 |
|
|
Plus: provision for credit losses |
|
2,835 |
|
|
32,973 |
|
|
158,811 |
|
|
83,429 |
|
|
27,126 |
|
|
278,048 |
|
|
111,027 |
|
|
Plus: non-cash goodwill impairment |
|
— |
|
|
— |
|
|
— |
|
|
443,695 |
|
|
— |
|
|
443,695 |
|
|
— |
|
|
Plus: Total non-routine items before taxes |
|
(1,138 |
) |
|
2,799 |
|
|
(1,081 |
) |
|
(1,590 |
) |
|
570 |
|
|
(1,011 |
) |
|
26,927 |
|
|
Adjusted pre-tax, pre-provision net revenue |
$ |
260,017 |
|
$ |
94,573 |
|
$ |
94,963 |
|
$ |
92,989 |
|
$ |
94,860 |
|
$ |
542,541 |
|
$ |
400,255 |
|
|
|
(1) |
Quarterly periods are annualized. |
21
