Cadence Bancorporation Reports Fourth Quarter and Full Year 2019 Financial Results

HOUSTON--()--Cadence Bancorporation (NYSE: CADE) (“Cadence”) today announced net income for the year ended December 31, 2019 of $202.0 million or $1.56 per diluted common share (“per share”), compared to $166.3 million or $1.97 per share for the year ended December 31, 2018. Net income for the quarter ended December 31, 2019 was $51.4 million or $0.40 per share, compared to $32.3 million or $0.39 per share for the quarter ended December 31, 2018, and $44.0 million or $0.34 per share for the quarter ended September 30, 2019. Returns on average assets and tangible common equity(1) for 2019 were 1.14% and 12.40%, respectively, as compared to 1.45% and 15.93%, respectively, for 2018. Annualized returns on average assets and tangible common equity for the fourth quarter of 2019 were 1.14% and 11.82%, respectively, compared to 1.05% and 11.85%, respectively, for the fourth quarter of 2018 and 0.99% and 10.43%, respectively, for the third quarter of 2019.

“In 2019 we have a number of accomplishments to report. We grew and improved our deposit base, and we effectively managed our expenses and improved our net interest margin. The State Bank merger has gone well and provided us access to attractive markets. We have intentionally moderated our loan growth and have reduced exposure to higher risk components of our portfolio. Elevated credit costs during 2019 have obviously masked these efforts. Looking ahead, we expect to see improved credit results in 2020, and we remain confident our model will generate attractive returns for investors over time,” stated Paul B. Murphy, Jr., Chairman and Chief Executive Officer of Cadence Bancorporation.

Adjusted Performance Metrics (1):

  • Adjusted net income(1), excluding non-routine income and expenses(2), was $223.1 million for the full year of 2019 compared to $174.8 million for 2018. For the fourth quarter of 2019, adjusted net income was $51.9 million, an increase of $10.4 million or 24.9% compared to the fourth quarter of 2018 and an increase of $7.8 million or 17.6% compared to the third quarter of 2019.
  • Adjusted pre-tax pre-provision net earnings(1) for the full year 2019 was $400.3 million, compared to $241.8 million for the full year 2018. Adjusted pre-tax pre-provision net earnings in the fourth quarter of 2019 was $94.9 million, an increase of $31.5 million or 49.7% compared to the fourth quarter of 2018 and a decrease of $5.9 million or 5.9% compared to the third quarter of 2019.
  • Adjusted EPS(1) for the full year 2019 was $1.72 compared to $2.07 for 2018. Adjusted EPS for fourth quarter of 2019 of $0.40 decreased from the prior year quarter of $0.50 and increased from the linked quarter of $0.34.
  • Adjusted annualized returns on average assets(1) and adjusted tangible common equity(1) for the full year 2019 were 1.26% and 13.60%, respectively, compared to 1.52% and 16.74% for the full year 2018, respectively, and for the fourth quarter of 2019 were 1.16% and 11.93%, respectively, compared to 1.35% and 15.19%, respectively, for the fourth quarter of 2018 and 0.99% and 10.47%, respectively, for the third quarter of 2019.

Fourth Quarter 2019 Highlights:

Cadence’s fundamental operating performance during the fourth quarter of 2019 continued to reflect the strengths of the business model, partially offset by the elevated credit costs in the current quarter. Fourth quarter 2019 highlights (compared to the linked quarter) are as follows:

  • Continued to grow core deposits, reaching $14.5 billion, an increase of $270.2 million or 1.9%, including an increase in noninterest bearing deposits of $230.8 million or 6.4%.
  • Aggressively managed funding costs, with total cost of funds at 1.23% and total cost of deposits at 1.14%, representing declines of 18 basis points for each.
  • Neutralized the effect of declining rates on our earning assets through the impact of our hedging and deposit cost management. Net interest margin (“NIM”) was 3.89%, a decline of 5 basis points or 1.3% due to a balance shift from loans to securities, impact of nonaccrual loans and accretion. Net interest spread increased 1 basis point to 3.41%.
  • Continued focus on prudent expense management, with an adjusted efficiency ratio(1) of 50.9%.
  • Strong operating performance produced a solid 1.16% adjusted return on average assets and 11.93% adjusted return on tangible common equity, even with elevated credit costs during the quarter.
  • Ended 2019 with a well-positioned balance sheet reflecting increased liquidity, lower risk weighted assets, a strong capital base and meaningful fundamental earnings power throughout our business lines.

Balance Sheet:

Total assets were $17.8 billion as of December 31, 2019, an increase of $5.1 billion or 39.7% from December 31, 2018, and a decrease of $70.5 million or 0.4% from September 30, 2019. The year-over-year increases throughout this release are impacted by the acquisition of State Bank Financial Corporation (“State Bank”), which added $4.8 billion in total assets on January 1, 2019. Excluding the impact of the assets acquired from State Bank, total assets during 2019 increased $31.8 million or 0.3% from 2018.

Loans at December 31, 2019 totaled $13.0 billion as compared to $10.1 billion at December 31, 2018, an increase of $2.9 billion or 29.1%. Excluding the impact of the loans acquired from State Bank, loans decreased $387.3 million or 3.9% since December 31, 2018. Loans decreased $653.4 million or 4.8% from $13.6 billion at September 30, 2019. The declines in loan balances reflect management’s efforts to reduce portfolio risk and moderate loan growth, combined with higher payoff activity and charge-offs. Additionally, the declines included loans sold or transferred to the period end loans held-for-sale portfolio of $124.0 million for the full year 2019 and $96.0 million for the fourth quarter 2019.

Investment Securities at December 31, 2019 totaled $2.4 billion or 13.3% of total assets as compared to $1.2 billion or 9.3% of total assets at December 31, 2018, an increase of $1.2 billion or 99.5%. Excluding the impact of the securities acquired from State Bank, investment securities increased $513.5 million or 43.2% since December 31, 2018. Investment securities for the fourth quarter of 2019 increased $663.3 million from $1.7 billion, or 9.6% of total assets at September 30, 2019. The increase in investment securities is a result of strong deposit growth combined with lower loan balances.

Funding activities continued to reflect strong performance, with meaningful core deposit growth, improved deposit mix and further decline in period-end brokered deposits.

Total deposits at December 31, 2019 totaled $14.7 billion as compared to $10.7 billion at December 31, 2018, an increase of $4.0 billion or 37.7%. Excluding the impact of deposits assumed from State Bank, core customer deposits (total deposits excluding brokered deposits) increased $779.7 million or 8.1% from December 31, 2018, offset by a decrease of $842.3 million in brokered deposits. The linked quarter change in total deposits included an increase of $270.2 million or 1.9% in core deposits, while brokered deposits declined by $317.1 million. Brokered deposits represented 1.3% of total deposits at December 31, 2019 compared to 9.7% at December 31, 2018 and 3.5% at September 30, 2019.

Total borrowings were $372.2 million at December 31, 2019, down from $471.8 million at December 31, 2018 and up slightly from $371.9 million at September 30, 2019. The year-over-year decline was largely due to lower FHLB borrowings as a result of increased core deposits, as well as a decline of approximately $50 million in long-term debt in the second quarter of 2019.

Shareholders’ equity was $2.5 billion at December 31, 2019, an increase of $1.0 billion or 71.1% from December 31, 2018, and decreased slightly, $15.1 million or 0.6%, from September 30, 2019. Tangible common shareholders’ equity(1) was $1.9 billion at December 31, 2019, an increase of $746.0 million from December 31, 2018 and a decrease of $8.6 million from September 30, 2019. The year-over-year increase resulted primarily from issuance of common stock of $826.1 million related to the merger with State Bank, $202.0 million in 2019 net income, $157.6 million increase in other comprehensive income largely driven by the value of our interest rate collar put in place in the first quarter of 2019, partially offset by $90.1 million in cash dividends, $79.1 million related to common share buybacks, and an increase of $276.5 million in total intangible assets. The linked quarter decrease resulted from net income of $51.4 million offset by dividends on common stock of $22.4 million, a decrease of $35.7 million in other comprehensive income due to decreased fair values of derivatives and securities, a decrease of $6.5 million in intangible assets, and $9.8 million in common share repurchases.

  • Tangible book value per share(1) was $14.65 as of December 31, 2019, an increase of $1.03 from $13.62 as of December 31, 2018 and a decrease of $0.01 from $14.66 as of September 30, 2019.
  • Total outstanding shares at December 31, 2019 were 127.6 million. Cadence repurchased $9.8 million of common stock at an average price per share of $16.21 during the quarter and $79.1 million at an average price of $18.49 during the full year 2019.
  • Total shareholders’ equity to total assets and tangible equity to tangible assets were 13.8% and 10.9%, respectively, at December 31, 2019 compared to 11.3% and 9.1% at December 31, 2018, respectively.

Asset Quality:

Credit quality metrics were elevated during 2019 as certain of our borrowers, predominantly in the Restaurant, Energy, and General C&I categories, experienced increased credit stress compared to our historical experience and long-term expectations.

  • Provision for credit losses for the full year 2019 was $111.0 million or 0.81% annualized of average loans as compared to $12.7 million or 0.14% annualized of average loans for 2018. Provision for the fourth quarter of 2019 was $27.1 million or 0.80% annualized of average loans as compared to $8.4 million or 0.34% annualized of average loans for the fourth quarter of 2018 and $43.8 million or 1.27% annualized of average loans for the third quarter of 2019. The current quarter’s provision was driven primarily by higher charge-offs and specific reserves.
  • Net charge-offs for the full year 2019 were $85.8 million or 0.63% annualized of average loans as compared to $5.9 million or 0.06% annualized for the full year 2018. For the fourth quarter 2019, net charge-offs were $35.3 million or 1.04% annualized of average loans compared to $0.2 million or 0.01% annualized and $31.3 million or 0.91% annualized for the quarters ended December 31, 2018 and September 30, 2019, respectively. The current quarter charge-offs included $15.0 million in five restaurant credits, $7.7 million in three general C&I credits, $7.5 million in three energy credits and $4.3 million in three acquired credits.
  • The allowance for credit losses (“ACL”) was $119.6 million or 0.92% of total loans as of December 31, 2019, as compared to $94.4 million or 0.94% of total loans as of December 31, 2018, and $127.8 million or 0.94% of total loans as of September 30, 2019.
  • The ACL to total nonperforming loans was 100.1% as of December 31, 2019, as compared to 127.1% as of December 31, 2018, and 118.2% as of September 30, 2019.
  • Loans 30-89 days past due were 0.17% of total loans at December 31, 2019, compared to 0.06% at December 31, 2018 and 0.15% at September 30, 2019.
  • Nonperforming loans (“NPL”) as a percent of total loans were 0.92% at December 31, 2019, compared to 0.74% at December 31, 2018 and 0.79% at September 30, 2019. NPL totaled $119.6 million, $74.2 million and $108.1 million as of December 31, 2019, December 31, 2018 and September 30, 2019, respectively.
  • Total criticized loans (see Table 6) at December 31, 2019 were $605.1 million or 4.66% of total loans as compared to $259.9 million or 2.58% at December 31, 2018 and $571.9 million or 4.19% at September 30, 2019. The linked quarter increases included migration of certain general C&I credits.

Total Revenue:

Total operating revenue(1) for 2019 was $782.1 million, up 62.1% from 2018 reflective of the business growth during the period as well as the impact of the State Bank acquisition. Total operating revenue(1) for the fourth quarter of 2019 was $194.8 million, up 56.9% from the same period in 2018 and flat as compared to $194.8 million in the linked quarter.

Net interest income for the full year 2019 was $651.2 million as compared to $387.7 million for 2018, an increase of 68.0%. Net interest income for the fourth quarter of 2019 was $160.9 million, an increase of $57.8 million or 56.0%, from the same period in 2018 and an increase of $0.7 million or 0.5% from the third quarter of 2019.

  • Our fully tax-equivalent NIM (“NIM”) for 2019 increased to 4.00% compared to 3.61% for 2018. Our net interest spread for 2019 increased to 3.48% as compared to 3.17% for 2018.
  • NIM in the fourth quarter of 2019 was 3.89% as compared to 3.55% for the fourth quarter of 2018 and 3.94% for the third quarter of 2019.
  • Net interest spread in the fourth quarter of 2019 increased to 3.41% as compared to 3.05% for the fourth quarter of 2018 and 3.40% for the third quarter of 2019.

The year-over-year increase in NIM reflects the merger with State Bank as well as other positive impacts from changes in our balance sheet mix, derivative activities, funding costs, loan yields and accretion income. The fourth quarter 2019 NIM as compared to the linked quarter was down only 5 basis points as we effectively mitigated the impact of declining rates on our loan portfolio and lower loan balances by aggressively managing funding costs and realizing the positive impact of our hedge positions. Specifically, the NIM change during the quarter included:

(Dollars in thousands)

 

Net Increase (Decrease)

 

 

 

Basis Point Increase (Decrease)

 

Yields and Costs

 

 

 

 

 

 

 

 

 

Earning assets

 

$

(11,574

)

 

 

 

(32

)

Funding

 

 

5,727

 

 

 

 

15

 

Hedging

 

 

4,944

 

 

 

 

12

 

Loan fees

 

 

1,986

 

 

 

 

5

 

Total

 

 

1,083

 

 

 

 

-

 

Balance Mix

 

 

 

 

 

 

 

 

 

Earning assets

 

 

(558

)

 

 

 

(3

)

Funding mix

 

 

526

 

 

 

 

1

 

Total

 

 

(32

)

 

 

 

(2

)

Accretion change

 

 

(38

)

 

 

 

(1

)

Nonaccrual impact

 

 

(302

)

 

 

 

(2

)

Total net change

 

$

711

 

 

 

 

(5

)

The impact of the changes in yields and costs on our balance sheet included the following highlights:

  • Yield on the underlying originated and ANCI loans (excluding accretion) was 5.18% for the fourth quarter of 2019, as compared to 5.21% and 5.29% for the fourth quarter of 2018 and the third quarter of 2019, respectively. Approximately 67% of the total loan portfolio is floating at December 31, 2019. The declines in interest rates drove the declines in yields and impact on margin during the fourth quarter of 2019.
  • The negative impact of declining rates on our loan yields was partially offset by the positive impact of our hedges linked quarter:
    • $4 billion notional LIBOR collar: Hedge income for the collar for the fourth quarter of 2019 was $6.9 million as compared to $2.7 million for the third quarter of 2019. The collar income year-to-date for 2019 was $9.6 million. The collar contract expires February 2024.
    • Rate swaps: Swap income (loss) for the fourth quarter of 2019 was ($0.5) million as compared to ($2.0) million for the fourth quarter of 2018 and ($1.2) million for the third quarter of 2019. Swap income year-to-date for 2019 was ($4.7) million as compared to ($5.2) million for 2018. One swap contract for $300 million expired on December 31, 2019, with the remaining $350 million contract expiring February 27, 2026.
  • Loan fees also served to positively impact total loan yields, impacted by heightened payoffs during the fourth quarter of 2019.
  • Funding costs declined meaningfully this quarter with total cost of funds for the fourth quarter of 2019 of 1.23% compared to 1.51% for the fourth quarter of 2018 and 1.41% in the linked quarter. Total cost of deposits for the fourth quarter of 2019 was 1.14% compared to 1.34% for the fourth quarter of 2018 and 1.32% for the linked quarter.

Other impacts to NIM included:

  • The balance shift of average earning assets during the fourth quarter of 2019 negatively impacted NIM by 3 basis points as average loans declined $295.8 million and average investment securities and other short-term investments increased $541.4 million as compared to the linked quarter due to reinvestment of net liquidity into investment securities. Our funding mix improved during the fourth quarter of 2019, with brokered deposits declining by $317.1 million and core deposits increasing by $270.2 million, positively impacting NIM by 1 basis point.
  • Declines in accretion during the fourth quarter 2019 negatively impacted NIM by 1 basis point. Total accretion for the fourth quarter of 2019 was $18.5 million and included $1.9 million of recovery income. Total accretion for the third quarter of 2019 was $18.5 million and included $0.6 million of recovery income.
  • The impact of increased nonaccrual loans during the quarter was a negative 2 basis points.

Noninterest income for the full year of 2019 was $130.9 million, an increase of $36.3 million or 38.3% from 2018. Noninterest income for the fourth quarter of 2019 was $33.9 million, an increase of $12.9 million or 61.4% from the same period of 2018 and a decrease of $0.7 million or 2.1% over the linked quarter.

  • The year-over-year increase was due to across-the-board business growth and the merger. The linked quarter results included a decline in credit related fees resulting from decreased loan activity, timing on service charges and lower securities gains, offset by increases in investment advisory revenue, trust services revenue and payroll processing revenue.
  • Noninterest income as a percent of total revenue for 2019 was 16.7% as compared to 19.6% for 2018, and was 17.4% for the fourth quarter of 2019 compared to 16.9% and 17.8% for the fourth quarter of 2018 and third quarter of 2019, respectively.

Noninterest expense for the full year of 2019 was $408.8 million, an increase of $150.5 million or 58.3% from 2018. Noninterest expense for fourth quarter of 2019 was $100.5 million, an increase of $27.8 million or 38.3% from the same period in 2018 and an increase of $6.2 million or 6.6% from the third quarter of 2019.

Adjusted noninterest expense(1), which excludes the impact of non-routine items(2), was $379.0 million for the full year of 2019, an increase of $141.5 million or 59.6% from 2018. For the fourth quarter of 2019, adjusted noninterest expense was $98.4 million, up $37.5 million or 61.6% from $60.9 million for the fourth quarter of 2018 and up $5.1 million or 5.5% from $93.3 million for the third quarter of 2019. Non-routine expenses included merger-related and other expenses of $29.7 million and $20.8 million for the full years 2019 and 2018, respectively, and $2.1 million, $11.8 million and $1.0 million for the fourth quarter of 2019, fourth quarter of 2018 and third quarter of 2019, respectively. The year-over-year increase of adjusted noninterest expense was related to the State Bank acquisition. The linked quarter increase resulted from:

  • Increase of $1.7 million in personnel costs related to increased operating compensation and the impact of the reductions in incentive in the third quarter 2019;
  • Increase of $1.6 million in loan-related expenses due to the net credit reflected in the third quarter of 2019;
  • Increase of $0.7 million in FDIC insurance assessment due to incremental credits received in the third quarter for assessments paid prior to reaching $10 billion in total assets;
  • Increase of $0.9 million in consulting and professional fees including IT, legal, accounting and audit services;
  • Increase of $0.7 million in premises and equipment due to timing of routine repairs and maintenance expenses on buildings and equipment; and
  • Increase of $0.4 million in advertising and public relations due to seasonal activity and greater focus in Atlanta.

Our adjusted efficiency ratio(1) for the full year of 2019 was 48.6% as compared to 49.6% for 2018, reflecting efficiencies from the State Bank acquisition combined with continued focus on an efficient operating platform. The adjusted efficiency ratio for the fourth quarter of 2019 of 50.9% declined slightly from both linked and prior year quarter ratios of 48.1% and 49.0%, respectively, due to flat revenue combined with anticipated modest expense increases in the quarter.

(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)

See Table 10 for a detail of non-routine income and expenses.

Taxes:

The effective tax rate for the full year 2019 was 23.0% as compared to 21.3% for the full year 2018. The effective tax rate for the quarter ended December 31, 2019 was 23.4% compared to 22.5% for the quarter ended September 30, 2019 and 24.9% for the quarter ended December 31, 2018.

Supplementary Financial Tables (Unaudited):

Supplementary financial tables (unaudited) are included in this release following the customary disclosure information.

Fourth Quarter 2019 Earnings Conference Call:

Cadence Bancorporation executive management will host a conference call to discuss fourth quarter and year end 2019 results on Thursday, January 23, 2020, 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.

Dial in (toll free):

1-888-317-6003

International dial in:

1-412-317-6061

Canada (toll free):

1-866-284-3684

Participant Elite Entry Number:

7182538

For those unable to participate in the live presentation, a replay will be available through February 6, 2020. To access the replay, please use the following numbers:

US Toll Free:

1-877-344-7529

International Toll:

1-412-317-0088

Canada Toll Free:

1-855-669-9658

Replay Access Code:

10137976

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 $17.8 billion in total assets as of December 31, 2019. Cadence 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 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 1,800 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 impact on our financial condition, results of operations, financial disclosures, and future business strategies related to the upcoming 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.

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 earnings” 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).

Table 1 – Selected Financial Data

 

 

 

As of and for the Three Months Ended

 

 

For the Years Ended

December 31,

 

(In thousands, except share and per share data)

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

December 31,

2018

 

 

2019

 

 

2018

 

Statement of Income Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

207,620

 

 

$

213,149

 

 

$

217,124

 

 

$

222,185

 

 

$

143,857

 

 

$

860,076

 

 

$

512,666

 

Interest expense

 

 

46,709

 

 

 

52,962

 

 

 

56,337

 

 

 

52,896

 

 

 

40,711

 

 

 

208,903

 

 

 

124,925

 

Net interest income

 

 

160,911

 

 

 

160,187

 

 

 

160,787

 

 

 

169,289

 

 

 

103,146

 

 

 

651,173

 

 

 

387,741

 

Provision for credit losses

 

 

27,126

 

 

 

43,764

 

 

 

28,927

 

 

 

11,210

 

 

 

8,422

 

 

 

111,027

 

 

 

12,700

 

Net interest income after provision

 

 

133,785

 

 

 

116,423

 

 

 

131,860

 

 

 

158,079

 

 

 

94,724

 

 

 

540,146

 

 

 

375,041

 

Noninterest income

 

 

33,898

 

 

 

34,642

 

 

 

31,722

 

 

 

30,664

 

 

 

21,007

 

 

 

130,925

 

 

 

94,638

 

Noninterest expense

 

 

100,519

 

 

 

94,283

 

 

 

100,529

 

 

 

113,440

 

 

 

72,697

 

 

 

408,770

 

 

 

258,301

 

Income before income taxes

 

 

67,164

 

 

 

56,782

 

 

 

63,053

 

 

 

75,303

 

 

 

43,034

 

 

 

262,301

 

 

 

211,378

 

Income tax expense

 

 

15,738

 

 

 

12,796

 

 

 

14,707

 

 

 

17,102

 

 

 

10,709

 

 

 

60,343

 

 

 

45,117

 

Net income

 

$

51,426

 

 

$

43,986

 

 

$

48,346

 

 

$

58,201

 

 

$

32,325

 

 

$

201,958

 

 

$

166,261

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

127,953,742

 

 

 

128,457,491

 

 

 

128,791,933

 

 

 

130,485,521

 

 

 

83,375,485

 

 

 

128,913,962

 

 

 

83,562,109

 

Diluted

 

 

128,003,089

 

 

 

128,515,274

 

 

 

129,035,553

 

 

 

130,549,319

 

 

 

83,375,485

 

 

 

129,017,599

 

 

 

84,375,289

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.40

 

 

$

0.34

 

 

$

0.37

 

 

$

0.44

 

 

$

0.39

 

 

$

1.56

 

 

$

1.99

 

Diluted

 

 

0.40

 

 

 

0.34

 

 

 

0.37

 

 

 

0.44

 

 

 

0.39

 

 

 

1.56

 

 

 

1.97

 

Period-End Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

2,368,592

 

 

$

1,705,325

 

 

$

1,684,847

 

 

$

1,754,839

 

 

$

1,187,252

 

 

$

2,368,592

 

 

$

1,187,252

 

Total loans, net of unearned income

 

 

12,983,655

 

 

 

13,637,042

 

 

 

13,627,934

 

 

 

13,624,954

 

 

 

10,053,923

 

 

 

12,983,655

 

 

 

10,053,923

 

Allowance for credit losses

 

 

119,643

 

 

 

127,773

 

 

 

115,345

 

 

 

105,038

 

 

 

94,378

 

 

 

119,643

 

 

 

94,378

 

Total assets

 

 

17,785,421

 

 

 

17,855,946

 

 

 

17,504,005

 

 

 

17,452,911

 

 

 

12,730,285

 

 

 

17,785,421

 

 

 

12,730,285

 

Total deposits

 

 

14,742,794

 

 

 

14,789,712

 

 

 

14,487,821

 

 

 

14,199,223

 

 

 

10,708,689

 

 

 

14,742,794

 

 

 

10,708,689

 

Noninterest-bearing deposits

 

 

3,833,704

 

 

 

3,602,861

 

 

 

3,296,652

 

 

 

3,210,321

 

 

 

2,454,016

 

 

 

3,833,704

 

 

 

2,454,016

 

Interest-bearing deposits

 

 

10,909,090

 

 

 

11,186,851

 

 

 

11,191,169

 

 

 

10,988,902

 

 

 

8,254,673

 

 

 

10,909,090

 

 

 

8,254,673

 

Borrowings and subordinated debentures

 

 

372,173

 

 

 

371,892

 

 

 

376,240

 

 

 

717,278

 

 

 

471,770

 

 

 

372,173

 

 

 

471,770

 

Total shareholders’ equity

 

 

2,460,846

 

 

 

2,475,944

 

 

 

2,426,072

 

 

 

2,302,823

 

 

 

1,438,274

 

 

 

2,460,846

 

 

 

1,438,274

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

2,003,339

 

 

$

1,650,902

 

 

$

1,716,550

 

 

$

1,748,714

 

 

$

1,187,947

 

 

$

1,776,689

 

 

$

1,180,623

 

Total loans, net of unearned income

 

 

13,423,435

 

 

 

13,719,286

 

 

 

13,921,873

 

 

 

13,798,386

 

 

 

9,890,419

 

 

 

13,714,731

 

 

 

9,116,602

 

Allowance for credit losses

 

 

132,975

 

 

 

119,873

 

 

 

106,656

 

 

 

97,065

 

 

 

87,996

 

 

 

114,256

 

 

 

90,813

 

Total assets

 

 

17,843,383

 

 

 

17,621,163

 

 

 

17,653,511

 

 

 

17,634,267

 

 

 

12,249,819

 

 

 

17,689,126

 

 

 

11,498,013

 

Total deposits

 

 

14,749,327

 

 

 

14,539,420

 

 

 

14,645,110

 

 

 

14,579,771

 

 

 

10,038,180

 

 

 

14,628,628

 

 

 

9,421,803

 

Noninterest-bearing deposits

 

 

3,648,874

 

 

 

3,456,807

 

 

 

3,281,383

 

 

 

3,334,399

 

 

 

2,210,793

 

 

 

3,431,300

 

 

 

2,137,953

 

Interest-bearing deposits

 

 

11,100,454

 

 

 

11,082,613

 

 

 

11,363,727

 

 

 

11,245,372

 

 

 

7,827,387

 

 

 

11,197,328

 

 

 

7,283,850

 

Borrowings and subordinated debentures

 

 

374,179

 

 

 

381,257

 

 

 

441,619

 

 

 

554,281

 

 

 

652,813

 

 

 

437,186

 

 

 

565,658

 

Total shareholders’ equity

 

 

2,471,398

 

 

 

2,447,189

 

 

 

2,331,855

 

 

 

2,241,652

 

 

 

1,412,643

 

 

 

2,373,856

 

 

 

1,377,471

 

Table 1 (Continued) – Selected Financial Data

 

 

 

As of and for the Three Months Ended

 

 

For the Year Ended

December 31,

 

(In thousands, except share and per

share data)

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

December 31,

2018

 

 

2019

 

 

2018

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value

 

$

19.29

 

 

$

19.32

 

 

$

18.84

 

 

$

17.88

 

 

$

17.43

 

 

$

19.29

 

 

$

17.43

 

Tangible book value (1)

 

 

14.65

 

 

 

14.66

 

 

 

14.21

 

 

 

13.23

 

 

 

13.62

 

 

 

14.65

 

 

 

13.62

 

Cash dividends declared

 

 

0.175

 

 

 

0.175

 

 

 

0.175

 

 

 

0.175

 

 

 

0.150

 

 

 

0.700

 

 

 

0.550

 

Dividend payout ratio

 

 

43.75

%

 

 

51.47

%

 

 

47.30

%

 

 

39.77

%

 

 

38.46

%

 

 

44.87

%

 

 

27.64

%

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common equity (2)

 

 

8.26

%

 

 

7.13

%

 

 

8.32

%

 

 

10.53

%

 

 

9.08

%

 

 

8.51

%

 

 

12.07

%

Return on average tangible common

equity (1) (2)

 

 

11.82

 

 

 

10.43

 

 

 

12.23

 

 

 

15.54

 

 

 

11.85

 

 

 

12.40

 

 

 

15.93

 

Return on average assets (2)

 

 

1.14

 

 

 

0.99

 

 

 

1.10

 

 

 

1.34

 

 

 

1.05

 

 

 

1.14

 

 

 

1.45

 

Net interest margin (2)

 

 

3.89

 

 

 

3.94

 

 

 

3.97

 

 

 

4.21

 

 

 

3.55

 

 

 

4.00

 

 

 

3.61

 

Efficiency ratio (1)

 

 

51.60

 

 

 

48.39

 

 

 

52.22

 

 

 

56.73

 

 

 

58.55

 

 

 

52.27

 

 

 

53.55

 

Adjusted efficiency ratio (1)

 

 

50.91

 

 

 

48.07

 

 

 

49.97

 

 

 

45.73

 

 

 

48.99

 

 

 

48.64

 

 

 

49.56

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total NPA to total loans, OREO,

and other NPA

 

 

0.96

%

 

 

0.84

%

 

 

0.85

%

 

 

0.63

%

 

 

0.82

%

 

 

0.96

%

 

 

0.82

%

Total nonperforming loans ("NPL") to

total loans

 

 

0.92

 

 

 

0.79

 

 

 

0.80

 

 

 

0.57

 

 

 

0.74

 

 

 

0.92

 

 

 

0.74

 

Total ACL to total loans

 

 

0.92

 

 

 

0.94

 

 

 

0.85

 

 

 

0.77

 

 

 

0.94

 

 

 

0.92

 

 

 

0.94

 

ACL to total NPL

 

 

100.07

 

 

 

118.17

 

 

 

106.08

 

 

 

135.21

 

 

 

127.12

 

 

 

100.07

 

 

 

127.12

 

Net charge-offs to average loans (2)

 

 

1.04

 

 

 

0.91

 

 

 

0.54

 

 

 

0.02

 

 

 

0.01

 

 

 

0.63

 

 

 

0.06

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity to assets

 

 

13.8

%

 

 

13.9

%

 

 

13.9

%

 

 

13.2

%

 

 

11.3

%

 

 

13.8

%

 

 

11.3

%

Tangible common equity to tangible

assets (1)

 

 

10.9

 

 

 

10.9

 

 

 

10.8

 

 

 

10.1

 

 

 

9.1

 

 

 

10.9

 

 

 

9.1

 

Common equity tier 1 (3)

 

 

11.5

 

 

 

11.0

 

 

 

10.9

 

 

 

10.4

 

 

 

9.8

 

 

 

11.5

 

 

 

9.8

 

Tier 1 leverage capital (3)

 

 

10.3

 

 

 

10.3

 

 

 

10.3

 

 

 

10.0

 

 

 

10.1

 

 

 

10.3

 

 

 

10.1

 

Tier 1 risk-based capital (3)

 

 

11.5

 

 

 

11.0

 

 

 

10.9

 

 

 

10.4

 

 

 

10.1

 

 

 

11.5

 

 

 

10.1

 

Total risk-based capital (3)

 

 

13.7

 

 

 

13.1

 

 

 

12.9

 

 

 

11.9

 

 

 

11.8

 

 

 

13.7

 

 

 

11.8

 

(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)

Annualized for the three-month periods.

(3)

Current quarter regulatory capital ratios are estimates.

Table 2 – Average Balances/Yield/Rates

 

 

 

For the Three Months Ended December 31,

 

 

 

 

2019

 

 

 

2018

 

 

 

 

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

 

$

10,160,970

 

 

$

134,450

 

 

 

5.25

 

%

 

$

9,356,318

 

 

$

122,674

 

 

 

5.20

 

%

ANCI portfolio

 

 

3,017,005

 

 

 

46,247

 

 

 

6.08

 

 

 

 

326,463

 

 

 

4,298

 

 

 

5.22

 

 

ACI portfolio

 

 

245,474

 

 

 

9,857

 

 

 

15.93

 

 

 

 

207,638

 

 

 

5,584

 

 

 

10.67

 

 

Total loans

 

 

13,423,449

 

 

 

190,554

 

 

 

5.63

 

 

 

 

9,890,419

 

 

 

132,556

 

 

 

5.32

 

 

Investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,806,932

 

 

 

11,699

 

 

 

2.57

 

 

 

 

980,403

 

 

 

6,909

 

 

 

2.80

 

 

Tax-exempt (2)

 

 

196,407

 

 

 

1,829

 

 

 

3.69

 

 

 

 

207,544

 

 

 

2,202

 

 

 

4.21

 

 

Total investment securities

 

 

2,003,339

 

 

 

13,528

 

 

 

2.68

 

 

 

 

1,187,947

 

 

 

9,111

 

 

 

3.04

 

 

Federal funds sold and short-term investments

 

 

930,910

 

 

 

3,392

 

 

 

1.45

 

 

 

 

437,565

 

 

 

2,092

 

 

 

1.90

 

 

Other investments

 

 

77,348

 

 

 

530

 

 

 

2.72

 

 

 

 

58,388

 

 

 

559

 

 

 

3.80

 

 

Total interest-earning assets

 

 

16,435,046

 

 

 

208,004

 

 

 

5.02

 

 

 

 

11,574,319

 

 

 

144,318

 

 

 

4.95

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

107,180

 

 

 

 

 

 

 

 

 

 

 

 

73,878

 

 

 

 

 

 

 

 

 

 

Premises and equipment

 

 

128,458

 

 

 

 

 

 

 

 

 

 

 

 

63,258

 

 

 

 

 

 

 

 

 

 

Accrued interest and other assets

 

 

1,305,674

 

 

 

 

 

 

 

 

 

 

 

 

626,360

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(132,975

)

 

 

 

 

 

 

 

 

 

 

 

(87,996

)

 

 

 

 

 

 

 

 

 

Total assets

 

$

17,843,383

 

 

 

 

 

 

 

 

 

 

 

$

12,249,819

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

8,195,455

 

 

$

26,946

 

 

 

1.30

 

%

 

$

5,242,091

 

 

$

20,024

 

 

 

1.52

 

%

Savings deposits

 

 

262,638

 

 

 

320

 

 

 

0.48

 

 

 

 

174,156

 

 

 

163

 

 

 

0.37

 

 

Time deposits

 

 

2,642,361

 

 

 

14,983

 

 

 

2.25

 

 

 

 

2,411,140

 

 

 

13,792

 

 

 

2.27

 

 

Total interest-bearing deposits

 

 

11,100,454

 

 

 

42,249

 

 

 

1.51

 

 

 

 

7,827,387

 

 

 

33,979

 

 

 

1.72

 

 

Other borrowings

 

 

152,102

 

 

 

953

 

 

 

2.49

 

 

 

 

517,051

 

 

 

4,266

 

 

 

3.27

 

 

Subordinated debentures

 

 

222,077

 

 

 

3,507

 

 

 

6.27

 

 

 

 

135,762

 

 

 

2,466

 

 

 

7.21

 

 

Total interest-bearing liabilities

 

 

11,474,633

 

 

 

46,709

 

 

 

1.61

 

 

 

 

8,480,200

 

 

 

40,711

 

 

 

1.90

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

3,648,874

 

 

 

 

 

 

 

 

 

 

 

 

2,210,793

 

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

248,478

 

 

 

 

 

 

 

 

 

 

 

 

146,183

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

15,371,985

 

 

 

 

 

 

 

 

 

 

 

 

10,837,176

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,471,398

 

 

 

 

 

 

 

 

 

 

 

 

1,412,643

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

17,843,383

 

 

 

 

 

 

 

 

 

 

 

$

12,249,819

 

 

 

 

 

 

 

 

 

 

Net interest income/net interest spread

 

 

 

 

 

 

161,295

 

 

 

3.41

 

%

 

 

 

 

 

 

103,607

 

 

 

3.05

 

%

Net yield on earning assets/net interest margin

 

 

 

 

 

 

 

 

 

 

3.89

 

%

 

 

 

 

 

 

 

 

 

 

3.55

 

%

Taxable equivalent adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

(384

)

 

 

 

 

 

 

 

 

 

 

 

(461

)

 

 

 

 

 

Net interest income

 

 

 

 

 

$

160,911

 

 

 

 

 

 

 

 

 

 

 

$

103,146

 

 

 

 

 

 

(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%.

Table 2 (Continued) – Average Balances/Yield/Rates

 

 

 

For the Three Months Ended

December 31, 2019

 

 

 

For the Three Months Ended

September 30, 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

 

$

10,160,970

 

 

$

134,450

 

 

 

5.25

 

%

 

$

10,191,066

 

 

$

136,333

 

 

 

5.31

 

%

ANCI portfolio

 

 

3,017,005

 

 

 

46,247

 

 

 

6.08

 

 

 

 

3,269,846

 

 

 

54,084

 

 

 

6.56

 

 

ACI portfolio

 

 

245,474

 

 

 

9,857

 

 

 

15.93

 

 

 

 

258,375

 

 

 

7,553

 

 

 

11.60

 

 

Total loans

 

 

13,423,449

 

 

 

190,554

 

 

 

5.63

 

 

 

 

13,719,286

 

 

 

197,970

 

 

 

5.72

 

 

Investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,806,932

 

 

 

11,699

 

 

 

2.57

 

 

 

 

1,447,448

 

 

 

9,657

 

 

 

2.65

 

 

Tax-exempt (2)

 

 

196,407

 

 

 

1,829

 

 

 

3.69

 

 

 

 

203,454

 

 

 

1,892

 

 

 

3.69

 

 

Total investment securities

 

 

2,003,339

 

 

 

13,528

 

 

 

2.68

 

 

 

 

1,650,902

 

 

 

11,549

 

 

 

2.78

 

 

Federal funds sold and short-term investments

 

 

930,910

 

 

 

3,392

 

 

 

1.45

 

 

 

 

741,955

 

 

 

3,421

 

 

 

1.83

 

 

Other investments

 

 

77,348

 

 

 

530

 

 

 

2.72

 

 

 

 

77,605

 

 

 

606

 

 

 

3.10

 

 

Total interest-earning assets

 

 

16,435,046

 

 

 

208,004

 

 

 

5.02

 

 

 

 

16,189,748

 

 

 

213,546

 

 

 

5.23

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

107,180

 

 

 

 

 

 

 

 

 

 

 

 

123,758

 

 

 

 

 

 

 

 

 

 

Premises and equipment

 

 

128,458

 

 

 

 

 

 

 

 

 

 

 

 

128,286

 

 

 

 

 

 

 

 

 

 

Accrued interest and other assets

 

 

1,305,674

 

 

 

 

 

 

 

 

 

 

 

 

1,299,244

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(132,975

)

 

 

 

 

 

 

 

 

 

 

 

(119,873

)

 

 

 

 

 

 

 

 

 

Total assets

 

$

17,843,383

 

 

 

 

 

 

 

 

 

 

 

$

17,621,163

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

8,195,455

 

 

$

26,946

 

 

 

1.30

 

%

 

$

7,991,804

 

 

$

31,064

 

 

 

1.54

 

%

Savings deposits

 

 

262,638

 

 

 

320

 

 

 

0.48

 

 

 

 

250,003

 

 

 

274

 

 

 

0.43

 

 

Time deposits

 

 

2,642,361

 

 

 

14,983

 

 

 

2.25

 

 

 

 

2,840,806

 

 

 

17,083

 

 

 

2.39

 

 

Total interest-bearing deposits

 

 

11,100,454

 

 

 

42,249

 

 

 

1.51

 

 

 

 

11,082,613

 

 

 

48,421

 

 

 

1.73

 

 

Other borrowings

 

 

152,102

 

 

 

953

 

 

 

2.49

 

 

 

 

160,066

 

 

 

1,005

 

 

 

2.49

 

 

Subordinated debentures

 

 

222,077

 

 

 

3,507

 

 

 

6.27

 

 

 

 

221,191

 

 

 

3,536

 

 

 

6.35

 

 

Total interest-bearing liabilities

 

 

11,474,633

 

 

 

46,709

 

 

 

1.61

 

 

 

 

11,463,870

 

 

 

52,962

 

 

 

1.83

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

3,648,874

 

 

 

 

 

 

 

 

 

 

 

 

3,456,807

 

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

248,478

 

 

 

 

 

 

 

 

 

 

 

 

253,297

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

15,371,985

 

 

 

 

 

 

 

 

 

 

 

 

15,173,974

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

2,471,398

 

 

 

 

 

 

 

 

 

 

 

 

2,447,189

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

17,843,383

 

 

 

 

 

 

 

 

 

 

 

$

17,621,163

 

 

 

 

 

 

 

 

 

 

Net interest income/net interest spread

 

 

 

 

 

 

161,295

 

 

 

3.41

 

%

 

 

 

 

 

 

160,584

 

 

 

3.40

 

%

Net yield on earning assets/net interest margin

 

 

 

 

 

 

 

 

 

 

3.89

 

%

 

 

 

 

 

 

 

 

 

 

3.94

 

%

Taxable equivalent adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

(384

)

 

 

 

 

 

 

 

 

 

 

 

(397

)

 

 

 

 

 

Net interest income

 

 

 

 

 

$

160,911

 

 

 

 

 

 

 

 

 

 

 

$

160,187

 

 

 

 

 

 

(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%.

Table 2 (Continued) – Average Balances/Yield/Rates

 

 

 

For the Years Ended December 31,

 

 

 

 

2019

 

 

 

2018

 

 

 

 

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

 

$

10,053,507

 

 

$

542,543

 

 

 

5.40

 

%

 

$

8,632,284

 

 

$

435,007

 

 

 

5.04

 

%

ANCI portfolio

 

 

3,387,367

 

 

 

219,183

 

 

 

6.47

 

 

 

 

250,522

 

 

 

13,077

 

 

 

5.22

 

 

ACI portfolio

 

 

273,857

 

 

 

34,559

 

 

 

12.62

 

 

 

 

233,796

 

 

 

22,060

 

 

 

9.43

 

 

Total loans

 

 

13,714,731

 

 

 

796,285

 

 

 

5.81

 

 

 

 

9,116,602

 

 

 

470,144

 

 

 

5.16

 

 

Investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,568,599

 

 

 

42,450

 

 

 

2.71

 

 

 

 

888,341

 

 

 

23,793

 

 

 

2.68

 

 

Tax-exempt (2)

 

 

208,090

 

 

 

7,983

 

 

 

3.84

 

 

 

 

292,282

 

 

 

12,077

 

 

 

4.13

 

 

Total investment securities

 

 

1,776,689

 

 

 

50,433

 

 

 

2.84

 

 

 

 

1,180,623

 

 

 

35,870

 

 

 

3.04

 

 

Federal funds sold and short-term investments

 

 

759,026

 

 

 

12,762

 

 

 

1.68

 

 

 

 

465,554

 

 

 

6,930

 

 

 

1.49

 

 

Other investments

 

 

70,127

 

 

 

2,274

 

 

 

3.24

 

 

 

 

54,538

 

 

 

2,259

 

 

 

4.14

 

 

Total interest-earning assets

 

 

16,320,573

 

 

 

861,754

 

 

 

5.28

 

 

 

 

10,817,317

 

 

 

515,203

 

 

 

4.76

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

115,268

 

 

 

 

 

 

 

 

 

 

 

 

79,560

 

 

 

 

 

 

 

 

 

 

Premises and equipment

 

 

128,448

 

 

 

 

 

 

 

 

 

 

 

 

62,841

 

 

 

 

 

 

 

 

 

 

Accrued interest and other assets

 

 

1,239,093

 

 

 

 

 

 

 

 

 

 

 

 

629,108

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(114,256

)

 

 

 

 

 

 

 

 

 

 

 

(90,813

)

 

 

 

 

 

 

 

 

 

Total assets

 

$

17,689,126

 

 

 

 

 

 

 

 

 

 

 

$

11,498,013

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

7,983,237

 

 

$

117,462

 

 

 

1.47

 

%

 

$

4,983,113

 

 

$

57,795

 

 

 

1.16

 

%

Savings deposits

 

 

253,170

 

 

 

1,066

 

 

 

0.42

 

 

 

 

181,194

 

 

 

560

 

 

 

0.31

 

 

Time deposits

 

 

2,960,921

 

 

 

69,550

 

 

 

2.35

 

 

 

 

2,119,543

 

 

 

42,093

 

 

 

1.99

 

 

Total interest-bearing deposits

 

 

11,197,328

 

 

 

188,078

 

 

 

1.68

 

 

 

 

7,283,850

 

 

 

100,448

 

 

 

1.38

 

 

Other borrowings

 

 

256,815

 

 

 

8,704

 

 

 

3.39

 

 

 

 

430,159

 

 

 

14,678

 

 

 

3.41

 

 

Subordinated debentures

 

 

180,371

 

 

 

12,121

 

 

 

6.72

 

 

 

 

135,499

 

 

 

9,799

 

 

 

7.23

 

 

Total interest-bearing liabilities

 

 

11,634,514

 

 

 

208,903

 

 

 

1.80

 

 

 

 

7,849,508

 

 

 

124,925

 

 

 

1.59

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

3,431,300

 

 

 

 

 

 

 

 

 

 

 

 

2,137,953

 

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

249,456

 

 

 

 

 

 

 

 

 

 

 

 

133,081

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

15,315,270

 

 

 

 

 

 

 

 

 

 

 

 

10,120,542

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,373,856

 

 

 

 

 

 

 

 

 

 

 

 

1,377,471

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

17,689,126

 

 

 

 

 

 

 

 

 

 

 

$

11,498,013

 

 

 

 

 

 

 

 

 

 

Net interest income/net interest spread

 

 

 

 

 

 

652,851

 

 

 

3.48

 

%

 

 

 

 

 

 

390,278

 

 

 

3.17

 

%

Net yield on earning assets/net interest margin

 

 

 

 

 

 

 

 

 

 

4.00

 

%

 

 

 

 

 

 

 

 

 

 

3.61

 

%

Taxable equivalent adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

(1,678

)

 

 

 

 

 

 

 

 

 

 

 

(2,537

)

 

 

 

 

 

Net interest income

 

 

 

 

 

$

651,173

 

 

 

 

 

 

 

 

 

 

 

$

387,741

 

 

 

 

 

 

(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%.

Table 3 – Loan Interest Income Detail

 

 

 

For the Three Months Ended

 

 

For the Years Ended

December 31,

 

 

(In thousands)

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

December 31,

2018

 

 

2019

 

 

2018

 

 

Loan Interest Income Detail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated loans

 

$

134,450

 

 

$

136,333

 

 

$

135,946

 

 

$

135,815

 

 

$

122,674

 

 

$

542,543

 

 

$

435,007

 

 

ANCI loans: interest income

 

 

37,637

 

 

 

43,133

 

 

 

49,095

 

 

 

51,109

 

 

 

4,571

 

 

 

180,974

 

 

 

12,813

 

 

ANCI loans: accretion

 

 

8,610

 

 

 

10,951

 

 

 

6,171

 

 

 

12,478

 

 

 

(273

)

 

 

38,209

 

 

 

264

 

 

ACI loans: scheduled accretion

 

 

8,046

 

 

 

6,996

 

 

 

8,989

 

 

 

5,896

 

 

 

4,724

 

 

 

29,927

 

 

 

19,813

 

 

ACI loans: recovery income

 

 

1,811

 

 

 

557

 

 

 

1,810

 

 

 

453

 

 

 

860

 

 

 

4,632

 

 

 

2,247

 

 

Total loan interest income

 

$

190,554

 

 

$

197,970

 

 

$

202,012

 

 

$

205,751

 

 

$

132,556

 

 

$

796,285

 

 

$

470,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Yields

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated loans

 

 

5.25

 

%

 

5.31

 

%

 

5.43

 

%

 

5.61

 

%

 

5.20

 

%

 

5.40

 

%

 

5.04

 

%

ANCI loans without discount accretion

 

 

4.95

 

 

 

5.23

 

 

 

5.49

 

 

 

5.62

 

 

 

5.55

 

 

 

5.34

 

 

 

5.11

 

 

ANCI loans discount accretion

 

 

1.13

 

 

 

1.33

 

 

 

0.69

 

 

 

1.38

 

 

 

(0.33

)

 

 

1.13

 

 

 

0.11

 

 

ACI loans without recovery income

 

 

13.00

 

 

 

10.74

 

 

 

12.40

 

 

 

7.93

 

 

 

9.81

 

 

 

10.93

 

 

 

8.47

 

 

ACI loans recovery income

 

 

2.93

 

 

 

0.86

 

 

 

2.50

 

 

 

0.61

 

 

 

0.86

 

 

 

1.69

 

 

 

0.96

 

 

Total loan yield

 

 

5.63

 

%

 

5.72

 

%

 

5.82

 

%

 

6.05

 

%

 

5.32

 

%

 

5.81

 

%

 

5.16

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Certain reclassifications have been made to the first quarter of 2019 to conform to second quarter presentation.

Table 4 – Allowance for Credit Losses (“ACL”)

 

 

 

For the Three Months Ended

 

 

For the Years Ended

December 31,

 

(In thousands)

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

December 31,

2018

 

 

2019

 

 

2018

 

Balance at beginning of period

 

$

127,773

 

 

$

115,345

 

 

$

105,038

 

 

$

94,378

 

 

$

86,151

 

 

$

94,378

 

 

$

87,576

 

Charge-offs

 

 

(35,432

)

 

 

(31,650

)

 

 

(18,981

)

 

 

(938

)

 

 

(318

)

 

 

(87,001

)

 

 

(8,045

)

Recoveries

 

 

176

 

 

 

314

 

 

 

362

 

 

 

388

 

 

 

123

 

 

 

1,239

 

 

 

2,147

 

Net charge-offs

 

 

(35,256

)

 

 

(31,336

)

 

 

(18,619

)

 

 

(550

)

 

 

(195

)

 

 

(85,762

)

 

 

(5,898

)

Provision for credit losses

 

 

27,126

 

 

 

43,764

 

 

 

28,927

 

 

 

11,210

 

 

 

8,422

 

 

 

111,027

 

 

 

12,700

 

Balance at end of period

 

$

119,643

 

 

$

127,773

 

 

$

115,346

 

 

$

105,038

 

 

$

94,378

 

 

$

119,643

 

 

$

94,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation of Ending ACL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated loans

 

$

108,860

 

 

$

114,441

 

 

$

105,368

 

 

$

96,387

 

 

$

85,402

 

 

$

108,860

 

 

$

85,402

 

Acquired non-credit impaired loans

 

 

1,426

 

 

 

1,650

 

 

 

1,091

 

 

 

1,117

 

 

 

1,052

 

 

 

1,426

 

 

 

1,052

 

Acquired credit impaired loans

 

 

9,357

 

 

 

11,682

 

 

 

8,886

 

 

 

7,534

 

 

 

7,924

 

 

 

9,357

 

 

 

7,924

 

Total ACL

 

$

119,643

 

 

$

127,773

 

 

$

115,345

 

 

$

105,038

 

 

$

94,378

 

 

$

119,643

 

 

$

94,378

 

Table 5 – ACL Activity by Segment

 

 

 

For the Three Months Ended December 31, 2019

 

(In thousands)

 

Commercial

and

Industrial

 

 

Commercial

Real Estate

 

 

Consumer

 

 

Small

Business

 

 

Total

 

As of September 30, 2019

 

$

89,657

 

 

$

17,507

 

 

$

15,244

 

 

$

5,365

 

 

$

127,773

 

Provision for loan losses

 

 

26,058

 

 

 

(337

)

 

 

557

 

 

 

848

 

 

 

27,126

 

Charge-offs

 

 

(31,496

)

 

 

(3,090

)

 

 

(479

)

 

 

(367

)

 

 

(35,432

)

Recoveries

 

 

90

 

 

 

13

 

 

 

70

 

 

 

3

 

 

 

176

 

As of December 31, 2019

 

$

84,309

 

 

$

14,093

 

 

$

15,392

 

 

$

5,849

 

 

$

119,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2019

 

(In thousands)

 

Commercial

and

Industrial

 

 

Commercial

Real Estate

 

 

Consumer

 

 

Small

Business

 

 

Total

 

As of December 31, 2018

 

$

66,316

 

 

$

10,452

 

 

$

13,703

 

 

$

3,907

 

 

$

94,378

 

Provision for loan losses

 

 

96,669

 

 

 

7,556

 

 

 

3,259

 

 

 

3,543

 

 

 

111,027

 

Charge-offs

 

 

(79,590

)

 

 

(3,970

)

 

 

(1,802

)

 

 

(1,639

)

 

 

(87,001

)

Recoveries

 

 

914

 

 

 

55

 

 

 

232

 

 

 

38

 

 

 

1,239

 

As of December 31, 2019

 

$

84,309

 

 

$

14,093

 

 

$

15,392

 

 

$

5,849

 

 

$

119,643

 

Table 6 – Criticized Loans by Segment

 

 

 

As of December 31, 2019

 

(Recorded investment in thousands)

 

Special Mention

 

 

Substandard

 

 

Doubtful

 

 

Total Criticized

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General C&I

 

$

70,058

 

 

$

204,087

 

 

$

8,191

 

 

$

282,336

 

Energy sector

 

 

66,235

 

 

 

26,439

 

 

 

2,754

 

 

 

95,428

 

Restaurant industry

 

 

45,456

 

 

 

58,559

 

 

 

4,697

 

 

 

108,712

 

Healthcare

 

 

22,414

 

 

 

3,984

 

 

 

 

 

 

26,398

 

Total commercial and industrial

 

 

204,163

 

 

 

293,069

 

 

 

15,642

 

 

 

512,874

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income producing

 

 

36,205

 

 

 

7,125

 

 

 

 

 

 

43,330

 

Land and development

 

 

8,997

 

 

 

2,350

 

 

 

 

 

 

11,347

 

Total commercial real estate

 

 

45,202

 

 

 

9,475

 

 

 

 

 

 

54,677

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

152

 

 

 

11,603

 

 

 

 

 

 

11,755

 

Other

 

 

 

 

 

81

 

 

 

 

 

 

81

 

Total consumer

 

 

152

 

 

 

11,684

 

 

 

 

 

 

11,836

 

Small Business Lending

 

 

6,573

 

 

 

19,126

 

 

 

 

 

 

25,699

 

Total

 

$

256,090

 

 

$

333,354

 

 

$

15,642

 

 

$

605,086

 

Table 6 (Continued) – Criticized Loans by Segment

 

 

 

As of September 30, 2019

 

(Recorded investment in thousands)

 

Special Mention

 

 

Substandard

 

 

Doubtful

 

 

Total Criticized

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General C&I

 

$

68,749

 

 

$

168,054

 

 

$

4,045

 

 

$

240,848

 

Energy sector

 

 

59,504

 

 

 

34,645

 

 

 

4,988

 

 

 

99,137

 

Restaurant industry

 

 

58,406

 

 

 

46,707

 

 

 

6,676

 

 

 

111,789

 

Healthcare

 

 

29,154

 

 

 

4,051

 

 

 

 

 

 

33,205

 

Total commercial and industrial

 

 

215,813

 

 

 

253,457

 

 

 

15,709

 

 

 

484,979

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income producing

 

 

29,737

 

 

 

15,881

 

 

 

 

 

 

45,618

 

Land and development

 

 

5,906

 

 

 

2,362

 

 

 

 

 

 

8,268

 

Total commercial real estate

 

 

35,643

 

 

 

18,243

 

 

 

 

 

 

53,886

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

115

 

 

 

10,158

 

 

 

 

 

 

10,273

 

Other

 

 

 

 

 

16

 

 

 

 

 

 

16

 

Total consumer

 

 

115

 

 

 

10,174

 

 

 

 

 

 

10,289

 

Small Business Lending

 

 

5,984

 

 

 

16,753

 

 

 

 

 

 

22,737

 

Total

 

$

257,555

 

 

$

298,627

 

 

$

15,709

 

 

$

571,891

 

Table 7 – Nonperforming Assets

 

 

 

As of December 31, 2019

 

(Recorded investment in thousands)

 

Originated

 

 

ANCI

 

 

ACI

 

 

Total

 

Nonperforming loans ("NPL"):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

102,214

 

 

$

3,391

 

 

$

1,198

 

 

$

106,803

 

Commercial real estate

 

 

 

 

 

1,127

 

 

 

 

 

 

1,127

 

Consumer

 

 

3,307

 

 

 

3,982

 

 

 

 

 

 

7,289

 

Small business

 

 

1,395

 

 

 

2,942

 

 

 

 

 

 

4,337

 

Total NPLs

 

 

106,916

 

 

 

11,442

 

 

 

1,198

 

 

 

119,556

 

Foreclosed OREO and other NPAs

 

 

4,330

 

 

 

72

 

 

 

1,556

 

 

 

5,958

 

Total nonperforming assets ("NPA")

 

$

111,246

 

 

$

11,514

 

 

$

2,754

 

 

$

125,514

 

NPL as a percentage of total loans

 

 

0.82

%

 

 

0.09

%

 

 

0.01

%

 

 

0.92

%

NPA as a percentage of loans plus OREO/other NPA

 

 

0.86

%

 

 

0.09

%

 

 

0.02

%

 

 

0.97

%

NPA as a percentage of total assets

 

 

0.62

%

 

 

0.07

%

 

 

0.02

%

 

 

0.71

%

Total accruing loans 90 days or more past due

 

$

205

 

 

$

741

 

 

$

22,418

 

 

$

23,364

 

Table 7 (Continued) – Nonperforming Assets

 

 

 

As of September 30, 2019

 

(Recorded investment in thousands)

 

Originated

 

 

ANCI

 

 

ACI

 

 

Total

 

Nonperforming loans ("NPLs"):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

86,123

 

 

$

6,520

 

 

$

 

 

$

92,643

 

Commercial real estate

 

 

 

 

 

1,215

 

 

 

5,640

 

 

 

6,855

 

Consumer

 

 

1,969

 

 

 

3,325

 

 

 

 

 

 

5,294

 

Small business

 

 

665

 

 

 

2,669

 

 

 

 

 

 

3,334

 

Total NPLs

 

 

88,757

 

 

 

13,729

 

 

 

5,640

 

 

 

108,126

 

Foreclosed OREO and other NPAs

 

 

5,195

 

 

 

 

 

 

1,536

 

 

 

6,731

 

Total nonperforming assets ("NPAs")

 

$

93,952

 

 

$

13,729

 

 

$

7,176

 

 

$

114,857

 

NPLs as a percentage of total loans

 

 

0.65

%

 

 

0.10

%

 

 

0.04

%

 

 

0.79

%

NPAs as a percentage of loans plus OREO/other NPAs

 

 

0.69

%

 

 

0.10

%

 

 

0.05

%

 

 

0.84

%

NPAs as a percentage of total assets

 

 

0.53

%

 

 

0.08

%

 

 

0.04

%

 

 

0.64

%

Accruing 90 days or more past due

 

$

70

 

 

$

565

 

 

$

23,852

 

 

$

24,487

 

Table 8 – Noninterest Income

 

 

 

For the Three Months Ended

 

 

Years Ended

December 31,

 

(In thousands)

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

December 31,

2018

 

 

2019

 

 

2018

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory revenue

 

$

6,920

 

 

$

6,532

 

 

$

5,797

 

 

$

5,642

 

 

$

5,170

 

 

$

24,890

 

 

$

21,347

 

Trust services revenue

 

 

4,713

 

 

 

4,440

 

 

 

4,578

 

 

 

4,335

 

 

 

4,182

 

 

 

18,066

 

 

 

17,760

 

Service charges on deposit accounts

 

 

5,181

 

 

 

5,462

 

 

 

4,730

 

 

 

5,130

 

 

 

3,856

 

 

 

20,503

 

 

 

15,432

 

Credit-related fees

 

 

5,094

 

 

 

5,960

 

 

 

5,341

 

 

 

4,870

 

 

 

5,191

 

 

 

21,265

 

 

 

16,124

 

Bankcard fees

 

 

1,933

 

 

 

2,061

 

 

 

2,279

 

 

 

2,213

 

 

 

1,073

 

 

 

8,486

 

 

 

5,951

 

Payroll processing revenue

 

 

1,373

 

 

 

1,196

 

 

 

1,161

 

 

 

1,419

 

 

 

-

 

 

 

5,149

 

 

 

-

 

SBA income

 

 

2,153

 

 

 

2,216

 

 

 

1,415

 

 

 

1,449

 

 

 

-

 

 

 

7,232

 

 

 

-

 

Other service fees

 

 

1,701

 

 

 

1,700

 

 

 

1,907

 

 

 

2,104

 

 

 

1,347

 

 

 

7,412

 

 

 

5,345

 

Securities gains (losses), net

 

 

317

 

 

 

775

 

 

 

938

 

 

 

(12

)

 

 

(54

)

 

 

2,018

 

 

 

(1,853

)

Other

 

 

4,513

 

 

 

4,300

 

 

 

3,576

 

 

 

3,514

 

 

 

242

 

 

 

15,904

 

 

 

14,531

 

Total noninterest income

 

$

33,898

 

 

$

34,642

 

 

$

31,722

 

 

$

30,664

 

 

$

21,007

 

 

$

130,925

 

 

$

94,637

 

Table 9 – Noninterest Expenses

 

 

 

For the Three Months Ended

Years Ended

December 31,

 

(In thousands)

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

December 31,

2018

 

 

2019

 

 

2018

 

Noninterest Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

54,840

 

 

$

51,904

 

 

$

53,660

 

 

$

53,471

 

 

$

43,495

 

 

$

213,874

 

 

$

154,905

 

Premises and equipment

 

 

11,618

 

 

 

10,913

 

 

 

11,148

 

 

 

10,958

 

 

 

8,212

 

 

 

44,637

 

 

 

30,478

 

Merger related expenses

 

 

925

 

 

 

1,010

 

 

 

4,562

 

 

 

22,000

 

 

 

2,049

 

 

 

28,497

 

 

 

2,983

 

Intangible asset amortization

 

 

5,876

 

 

 

6,025

 

 

 

5,888

 

 

 

6,073

 

 

 

598

 

 

 

23,862

 

 

 

2,755

 

Data processing

 

 

3,343