Cadence Bancorporation Reports Second Quarter 2020 Financial Results

HOUSTON--()--Cadence Bancorporation (NYSE: CADE) (“Cadence”) today announced a net loss for the quarter ended June 30, 2020 of ($56.1) million or ($0.45) per share, compared to net income of $48.3 million or $0.37 per share for the quarter ended June 30, 2019, and a net loss of ($399.3) million or ($3.15) per share for the quarter ended March 31, 2020. Adjusted net (loss) income(1), excluding non-routine income and expenses(2) (and the goodwill impairment charge for first quarter 2020), was ($56.9) million or ($0.45) per share for the second quarter of 2020, compared to $51.3 million or $0.40 per share for the quarter ended June 30, 2019 and compared to $12.5 million or $0.10 per share for the quarter ended March 31, 2020.

“The challenge and uncertainty of the second quarter in many ways brought out the best in Cadence and I am proud of how our team operated and served our customers through it all. Our pre-provision results continue to showcase a key strength of our operations, highlighted by our increased net interest income and continued expense management. That noted, clearly the credit backdrop is very challenging, as our portfolio has been meaningfully impacted by the COVID-19 pandemic and related economic shutdown. This quarter, we again spent a great deal of time critically reviewing our portfolios to ensure we are fully reflecting the realities of the environment. While the trajectory of the pandemic and its impact on the economy remain uncertain, we are very confident that our risk management and robust capital position will allow Cadence to exit this crisis in a strong position,” stated Paul B. Murphy, Jr., Chairman and Chief Executive Officer of Cadence Bancorporation.

Second Quarter 2020 Highlights:

Second quarter 2020 highlights (compared to the linked quarter where applicable) are as follows:

  • Adjusted pre-tax pre-provision net revenue(1) for the second quarter of 2020 remained consistent at $95.0 million, a decrease of $1.1 million or 1.2% compared to the second quarter of 2019 and an increase of $2.0 million or 2.1% compared to the first quarter of 2020. As a percent of average assets, adjusted pre-tax pre-prevision net revenue was 2.06%, 2.18%, and 2.11% for the second quarter of 2020, second quarter of 2019 and first quarter of 2020, respectively.
  • We originated $1.0 billion of loans under the Paycheck Protection Program (“PPP”) during the second quarter of 2020. These PPP loans are 100% federally guaranteed and were fully funded by core deposits.
  • Total deposits increased $1.6 billion as non-interest bearing deposits increased $1.3 billion to 32% of total deposits. At the same time, we aggressively managed funding costs, with total deposit costs at 0.46%, representing a decline of 50 basis points from prior quarter.
  • Our tax equivalent net interest margin (“NIM”) remained notable at 3.51%, in spite of the impact of lower interest rates, lower yielding PPP loans and securities, and lower accretion income on acquired loans. The gain on our collar transaction and our deposit cost management continue to provide a strong foundation to our NIM.
  • Adjusted expenses (see Table 10) declined by $5.1 million and we realized an adjusted efficiency ratio(1) of 47.9%, down from 49.9%.
  • The provision for credit losses for the second quarter 2020 was $158.8 million compared to $83.4 million in the linked quarter reflecting degradation of economic forecasts, depressed energy markets and COVID-19 driven stress. As of June 30, 2020, our Allowance for Credit Losses (“ACL”) was 2.71% of total loans, up from 1.83% at March 31, 2020. Excluding PPP loans, our ACL was 2.93% at June 30, 2020.
  • Capital remained very strong with our Common Equity Tier 1 capital ratio increasing to 11.7% and total risk weighted capital increasing to 14.3%, providing a robust capital base well-positioned for the current environment.
  • Annualized returns on average assets and tangible common equity for the second quarter of 2020 were (1.22%) and (10.56%), respectively, compared to 1.10% and 12.23%, respectively, for the second quarter of 2019 and (9.08%) and 3.86%, respectively, for the first quarter of 2020.
  • Adjusted annualized returns on average assets(1) and adjusted tangible common equity(1) for the second quarter of 2020 were (1.24%) and (10.73%), respectively, compared to 1.17% and 12.96%, respectively, for the second quarter of 2019 and 0.28% and 3.62%, respectively, for the first quarter of 2020.

Balance Sheet:

Total assets were $18.9 billion as of June 30, 2020, an increase of $1.4 billion or 7.7% from June 30, 2019, and an increase of $1.6 billion or 9.4% from March 31, 2020 driven by the issuance of PPP loans and meaningful growth in deposits impacted by fiscal stimulus during the second quarter.

Cash and Cash Equivalents at June 30, 2020 totaled $1.9 billion as compared to $0.8 billion at June 30, 2019 and compared to $0.6 billion at March 31, 2020. The $1.3 billion increase in the second quarter of 2020 resulted from the increase of $1.6 billion in deposits during this quarter.

Loans at June 30, 2020 totaled $13.7 billion as compared to $13.6 billion at June 30, 2019, an increase of $71.2 million or 0.5%. Loans increased $306.9 million or 2.3% from $13.4 billion at March 31, 2020. The linked quarter increase included the origination of $1.0 billion in PPP loans, offset by approximately $693 million of net loan paydowns and payoffs. The declines were driven by reductions in the C&I segment, including paydowns of defensive draws taken in March, and strategic declines in the restaurant, energy and leveraged loan sectors as we work to reduce select exposures.

Investment Securities at June 30, 2020 totaled $2.7 billion or 14.1% of total assets as compared to $1.7 billion or 9.6% of total assets at June 30, 2019, an increase of $976.6 million or 58.0%. Investment securities for the second quarter of 2020 increased $199.8 million from $2.5 billion, or 14.3% of total assets at March 31, 2020. The increase in securities from both the prior year and linked quarter is a result of substantial growth in deposits and lower loan originations outside of the PPP loans. Securities acquired during the second quarter include primarily investment grade municipal bonds and agency-backed mortgages.

Goodwill at June 30, 2020 totaled $43.1 million, down from $483.2 million at June 30, 2019 and unchanged from March 31, 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 June 30, 2020 relates to our registered investment advisory subsidiary and trust division.

Total Deposits at June 30, 2020 were $16.1 billion, an increase of $1.6 billion or 10.9% from both the June 30, 2019 and March 31, 2020 levels. Second quarter 2020 core deposits increased by 11.3% as a result of customers maintaining additional liquidity in the current environment and broader impacts of fiscal stimulus. Non-interest bearing deposits increased to $5.2 billion at June 30, 2020 or 32.5% of total deposits, up from $3.3 billion or 22.8% at June 30, 2019 and up from $4.0 billion or 27.3% of total deposits at March 31, 2020.

Shareholders’ equity was $2.0 billion at June 30, 2020, a decrease of $380.6 million or 15.7% from June 30, 2019, and a decrease of $68.1 million or 3.2% from March 31, 2020. The linked quarter decrease included the quarterly net loss of $56.1 million, $6.3 million in cash dividends, and a decrease of $7.2 million in other comprehensive income which was largely driven by a decrease in the realized gain on the interest rate collar as amounts were recognized in interest income. The year over year decrease was impacted by the goodwill impairment in the first quarter of 2020.

Tangible common shareholders’ equity(1) was $1.9 billion at June 30, 2020, an increase of $77.7 million or 4.2% from June 30, 2019 and a decrease of $62.6 million or 3.2% from March 31, 2020. The linked quarter decrease resulted from the same factors noted above.

  • Total shareholders’ equity to total assets and tangible equity to tangible assets were 10.8% and 10.2%, respectively, at June 30, 2020 compared to 13.9% and 10.8% at June 30, 2019, and 12.3% and 11.5% at March 31, 2020, respectively.
  • Tangible book value per share(1) was $15.15 as of June 30, 2020, an increase of $0.94 or 6.6% from $14.21 as of June 30, 2019 and a decrease of $0.50 or 3.2% from $15.65 as of March 31, 2020.
  • Total outstanding shares at June 30, 2020 were 125.9 million.

Tangible common equity to tangible assets was 10.2% at June 30, 2020, and quarter end capital ratios remained robust and other than the leverage ratio, increased during the quarter due to lower risk weighted assets.

 

 

6/30/2020

 

3/31/2020

 

6/30/2019

Common equity Tier 1 capital

 

11.7%

 

11.4%

 

10.9%

Tier 1 leverage capital

 

9.5%

 

10.1%

 

10.3%

Tier 1 risk-based capital

 

11.7%

 

11.4%

 

10.9%

Total risk-based capital

 

14.3%

 

13.8%

 

12.9%

Asset Quality:

Credit quality metrics during the second quarter of 2020 reflected worsening economic factors as a result of COVID-19 and depressed energy prices, along with associated increased stress of certain borrowers, predominantly in the Restaurant and Energy categories.

  • Net charge-offs for the second quarter of 2020 were $32.6 million or 0.94% annualized of average loans compared to $18.6 million or 0.54% annualized and $32.5 million or 0.99% annualized for the quarters ended June 30, 2019 and March 31, 2020, respectively. The current quarter charge-offs included $14.2 million in Energy, $13.4 million in General C&I and $4 million in Restaurant sectors.
  • Provision for credit losses for the second quarter of 2020 was $158.8 million as compared to $28.9 million for the second quarter of 2019 and $83.4 million for the first quarter of 2020. The current quarter’s provision was significantly impacted by an economic forecast that was adversely affected by the COVID-19 pandemic and depressed oil prices, as well as associated net credit migration within certain portfolios. Our calculation for the ACL used the baseline scenario provided by a nationally recognized service, as adjusted for qualitative and environmental factors.
  • The ACL was $370.9 million or 2.71% of total loans as of June 30, 2020, as compared to $115.3 million or 0.85% of total loans as of June 30, 2019, and $245.2 million or 1.83% of total loans as of March 31, 2020.
  • Loans 30-89 days past due were 0.19% of total loans at June 30, 2020, compared to 0.16% at June 30, 2019 and 0.19% at March 31, 2020.
  • Accruing loans 90 days or more past due were 0.02% of total loans at June 30, 2020, compared to 0.23% at June 30, 2019 and 0.01% at March 31, 2020.
  • NPL as a percent of total loans were 1.64% at June 30, 2020, compared to 0.80% at June 30, 2019 and 1.19% at March 31, 2020. NPL totaled $224.4 million, $108.8 million and $159.7 million as of June 30, 2019 and March 31, 2020, respectively.
  • The ACL to total nonperforming loans (“NPL”) was 165.3% as of June 30, 2020, as compared to 106.1% as of June 30, 2019, and 153.6% as of March 31, 2020.
  • Total criticized loans (see Table 6) at June 30, 2020 were $1.0 billion or 7.37% of total loans as compared to $408.5 million or 3.00% at June 30, 2019 and $665.7 million or 4.97% at March 31, 2020. The linked quarter increase included net downgrades predominantly in Restaurant and Energy and to a lesser extent CRE credits, partially mitigated by net reductions in general C&I credits.

Total Revenue:

Total operating revenue(1) for the second quarter of 2020 was $184.7 million, down $7.8 million or 4.1% from the same period in 2019 and down $3.9 million or 2.1% from the linked quarter.

Net interest income Net interest income for the second quarter of 2020 was $154.7 million, a decrease of $6.1 million or 3.8% from the same period in 2019 and an increase of $1.2 million or 0.8% from the first quarter of 2020. The linked quarter increase resulted primarily from the ability of our lower deposit costs and hedging income to more than offset the impact of declines in LIBOR on our loan portfolio. Loan interest income, excluding accretion and PPP loans, declined $23.8 million during the quarter, and was more than offset by $16.6 million in lower deposit interest expense and $9.8 million in additional hedge income.

  • We aggressively lowered our interest rates on deposits resulting in a 52% reduction in costs of total deposits to 0.46% for the quarter compared to 0.96% for the linked quarter. Additionally, noninterest-bearing deposits as a percent of total deposits increased significantly to 32.5% from 27.3% in the prior quarter. Total interest-bearing liabilities declined by 61 basis points to 0.78% from 1.39% in the first quarter of 2020.
  • Hedge income and collar gain recognition for the second quarter of 2020 was $17.7 million as compared to $7.9 million for the first quarter of 2020.
  • Accretion on acquired loans totaled $7.6 million for the second quarter of 2020, adding 17 basis points to the NIM as compared to $9.8 million and 23 basis point for the first quarter of 2020.
  • Our NIM for the second quarter of 2020 was 3.51% as compared to 3.97% for the second quarter of 2019 and 3.80% for the first quarter of 2020.

PPP loans averaged $664 million in the second quarter at a yield of 2.38%, and along with cash in deposits associated with these loans, negatively impacted our second quarter NIM by 11 basis points. In addition to the impact of PPP loans, the second quarter 2020 NIM declined 8 basis points due to lower LIBOR and earning asset mix shifts, 6 basis points due to lower accretion, and 4 basis points due to excess liquidity as a result of fiscal stimulus and customer behavior. Specifically, the NIM change during the quarter included:

Quarterly Change

$ MM

NIM

1Q 2020 Net Interest Income

$

153.8

 

3.80

%

Loans (ex PPP & accretion)

 

(23.8

)

-0.70

%

Deposits

 

16.6

 

0.43

%

Hedge Income

 

9.8

 

0.23

%

Accretion

 

(2.2

)

-0.06

%

Securities

 

(1.8

)

-0.05

%

Cash

 

(1.5

)

-0.04

%

Borrowings

 

0.2

 

0.01

%

NIM before PPP loans & cash*

$

151.1

 

3.62

%

PPP Loans & associated cash

 

4.0

 

-0.11

%

2Q 2020 Net Interest Margin

$

155.1

 

3.51

%

*

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.

Noninterest income for the second quarter of 2020 was $30.0 million, a decrease of $1.8 million or 5.6% from the same period of 2019 and a decrease of $5.1 million or 14.6% from the linked quarter. Adjusted noninterest income(1) for the second quarter of 2020 was $27.7 million, a decrease of $3.6 million or 11.5% from the second quarter of 2019, and a decrease of $4.4 million or 13.8% from the linked quarter.

  • The linked quarter results reflected slowed business activity as a result of COVID-19, including decreases in credit related fees, service charges on deposits, and $1.8 million in net writedowns on alternative investments. These impacts were partially offset by increases in investment advisory revenue and mortgage banking income given the robust related markets.
  • Noninterest income as a percent of total revenue for the second quarter of 2020 was 16.2% as compared to 16.5% for the second quarter of 2019 and 18.6% for the linked quarter.

Noninterest expense (excluding goodwill impairment charge for first quarter 2020) for the second quarter of 2020 was $88.6 million, a decrease of $11.9 million or 11.8% from the same period in 2019 and a decrease of $5.3 million or 5.7% from the linked quarter. Adjusted noninterest expense(2), which excludes the impact of non-routine items(2), was $87.4 million, down $8.6 million or 8.9% from the second quarter of 2019 and down $5.1 million or 5.6% from the first quarter of 2020. Cadence has consistently demonstrated the ability to effectively manage expense levels in various economic environments, evidenced with the expense and efficiency declines this quarter. The linked quarter decrease in noninterest expenses (excluding the goodwill impairment charge) resulted from:

  • Decrease of $1.6 million in personnel costs driven by reductions in regular compensation and employment taxes;
  • $1.3 million less in merger related expenses;
  • Decrease of $3.6 million in other expenses including: $0.8 million in special asset expenses; $0.7 million in travel expenses; $0.5 million in ATM and debit card expenses; and $0.5 million in operational losses; and
  • Partially offset by an increase of $1.5 million in FDIC insurance assessment.

Adjusted efficiency ratio(1) for the second quarter of 2020 was 47.9%, improving from the linked quarter ratio of 49.9% with lower expenses and decreased from the prior year’s second quarter ratio of 50.0%.

(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 second quarter of 2020 was 10.6% compared to 7.7% for the linked quarter and 23.3% for the second quarter of 2019.

Dividend:

On July 21, 2020, the board of directors of Cadence Bancorporation approved a quarterly cash dividend in the amount of $0.05 per share of outstanding common stock, representing an annualized dividend of $0.20 per share. The dividend will be paid on August 7, 2020 to holders of record of Cadence’s Class A common stock on July 31, 2020.

Supplementary Financial Tables (Unaudited):

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

Second Quarter 2020 Earnings Conference Call:

Cadence Bancorporation executive management will host a conference call to discuss second quarter 2020 results on Wednesday, July 22, 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:

2169431

For those unable to participate in the live presentation, a replay will be available through August 5, 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:

10145370

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 $18.9 billion in total assets as of June 30, 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 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 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.

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).

Table 1 – Selected Financial Data

 

 

 

As of and for the Three Months Ended

 

(In thousands, except share and per share data)

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

Statement of Operations Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

177,175

 

 

$

192,754

 

 

$

207,620

 

 

$

213,149

 

 

$

217,124

 

Interest expense

 

 

22,461

 

 

 

39,286

 

 

 

46,709

 

 

 

52,962

 

 

 

56,337

 

Net interest income

 

 

154,714

 

 

 

153,468

 

 

 

160,911

 

 

 

160,187

 

 

 

160,787

 

Provision for credit losses

 

 

158,811

 

 

 

83,429

 

 

 

27,126

 

 

 

43,764

 

 

 

28,927

 

Net interest income after provision

 

 

(4,097

)

 

 

70,039

 

 

 

133,785

 

 

 

116,423

 

 

 

131,860

 

Noninterest income

 

 

29,950

 

 

 

35,069

 

 

 

33,898

 

 

 

34,642

 

 

 

31,722

 

Noninterest expense (1)

 

 

88,620

 

 

 

537,653

 

 

 

100,519

 

 

 

94,283

 

 

 

100,529

 

(Loss) income before income taxes

 

 

(62,767

)

 

 

(432,545

)

 

 

67,164

 

 

 

56,782

 

 

 

63,053

 

Income tax (benefit) expense

 

 

(6,653

)

 

 

(33,234

)

 

 

15,738

 

 

 

12,796

 

 

 

14,707

 

Net (loss) income

 

$

(56,114

)

 

$

(399,311

)

 

$

51,426

 

 

$

43,986

 

 

$

48,346

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

125,924,652

 

 

 

126,630,446

 

 

 

127,953,742

 

 

 

128,457,491

 

 

 

128,791,933

 

Diluted

 

 

125,924,652

 

 

 

126,630,446

 

 

 

128,003,089

 

 

 

128,515,274

 

 

 

129,035,553

 

(Loss) earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.45

)

 

$

(3.15

)

 

$

0.40

 

 

$

0.34

 

 

$

0.37

 

Diluted

 

 

(0.45

)

 

 

(3.15

)

 

 

0.40

 

 

 

0.34

 

 

 

0.37

 

Period-End Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,899,369

 

 

$

609,351

 

 

$

988,764

 

 

$

1,061,102

 

 

$

766,259

 

Investment securities

 

 

2,661,433

 

 

 

2,461,644

 

 

 

2,368,592

 

 

 

1,705,325

 

 

 

1,684,847

 

Total loans, net of unearned income

 

 

13,699,097

 

 

 

13,392,191

 

 

 

12,983,655

 

 

 

13,637,042

 

 

 

13,627,934

 

Allowance for credit losses

 

 

370,901

 

 

 

245,246

 

 

 

119,643

 

 

 

127,773

 

 

 

115,345

 

Total assets

 

 

18,857,753

 

 

 

17,237,918

 

 

 

17,800,229

 

 

 

17,855,946

 

 

 

17,504,005

 

Total deposits

 

 

16,069,282

 

 

 

14,489,505

 

 

 

14,742,794

 

 

 

14,789,712

 

 

 

14,487,821

 

Noninterest-bearing deposits

 

 

5,220,109

 

 

 

3,959,721

 

 

 

3,833,704

 

 

 

3,602,861

 

 

 

3,296,652

 

Interest-bearing deposits

 

 

10,849,173

 

 

 

10,529,784

 

 

 

10,909,090

 

 

 

11,186,851

 

 

 

11,191,169

 

Borrowings and subordinated debentures

 

 

372,222

 

 

 

372,440

 

 

 

372,173

 

 

 

371,892

 

 

 

376,240

 

Total shareholders’ equity

 

 

2,045,480

 

 

 

2,113,543

 

 

 

2,460,846

 

 

 

2,475,944

 

 

 

2,426,072

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

2,487,467

 

 

$

2,397,275

 

 

$

2,003,339

 

 

$

1,650,902

 

 

$

1,716,550

 

Total loans, net of unearned income

 

 

13,884,220

 

 

 

13,161,371

 

 

 

13,423,435

 

 

 

13,719,286

 

 

 

13,921,873

 

Allowance for credit losses

 

 

267,464

 

 

 

201,785

 

 

 

132,975

 

 

 

119,873

 

 

 

106,656

 

Total assets

 

 

18,500,600

 

 

 

17,694,018

 

 

 

17,843,383

 

 

 

17,621,163

 

 

 

17,653,511

 

Total deposits

 

 

15,774,787

 

 

 

14,574,614

 

 

 

14,749,327

 

 

 

14,539,420

 

 

 

14,645,110

 

Noninterest-bearing deposits

 

 

4,587,673

 

 

 

3,658,612

 

 

 

3,648,874

 

 

 

3,456,807

 

 

 

3,281,383

 

Interest-bearing deposits

 

 

11,187,115

 

 

 

10,916,002

 

 

 

11,100,454

 

 

 

11,082,613

 

 

 

11,363,727

 

Borrowings and subordinated debentures

 

 

372,547

 

 

 

439,698

 

 

 

374,179

 

 

 

381,257

 

 

 

441,619

 

Total shareholders’ equity

 

 

2,118,796

 

 

 

2,446,810

 

 

 

2,471,398

 

 

 

2,447,189

 

 

 

2,331,855

 

(1)

For the quarter ended March 31, 2020, includes the non-cash goodwill impairment charge of $443.7 million, $412.9 million after-tax.

Table 1 (Continued) – Selected Financial Data

 

 

 

As of and for the Three Months Ended

 

(In thousands, except share and per

share data)

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value

 

$

16.24

 

 

$

16.79

 

 

$

19.29

 

 

$

19.32

 

 

$

18.84

 

Tangible book value (1)

 

 

15.15

 

 

 

15.65

 

 

 

14.65

 

 

 

14.66

 

 

 

14.21

 

Cash dividends declared

 

 

0.050

 

 

 

0.175

 

 

 

0.175

 

 

 

0.175

 

 

 

0.175

 

Dividend payout ratio

 

 

(11.11

)%

 

 

(5.56

)%

 

 

43.75

%

 

 

51.47

%

 

 

47.30

%

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common equity (2)

 

 

(10.65

)%

 

 

(65.64

)%

 

 

8.26

%

 

 

7.13

%

 

 

8.32

%

Return on average tangible common

equity (1) (2)

 

 

(10.56

)

 

 

3.86

 

 

 

11.82

 

 

 

10.43

 

 

 

12.23

 

Return on average assets (2)

 

 

(1.22

)

 

 

(9.08

)

 

 

1.14

 

 

 

0.99

 

 

 

1.10

 

Net interest margin (2)

 

 

3.51

 

 

 

3.80

 

 

 

3.89

 

 

 

3.94

 

 

 

3.97

 

Efficiency ratio (1)

 

 

47.99

 

 

 

285.17

 

 

 

51.60

 

 

 

48.39

 

 

 

52.22

 

Adjusted efficiency ratio (1)

 

 

47.93

 

 

 

49.88

 

 

 

50.91

 

 

 

48.07

 

 

 

49.97

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total NPA to total loans, OREO,

and other NPA

 

 

1.74

%

 

 

1.31

%

 

 

0.97

%

 

 

0.84

%

 

 

0.85

%

Total nonperforming loans ("NPL") to

total loans

 

 

1.64

 

 

 

1.19

 

 

 

0.92

 

 

 

0.79

 

 

 

0.80

 

Total ACL to total loans

 

 

2.71

 

 

 

1.83

 

 

 

0.92

 

 

 

0.94

 

 

 

0.85

 

ACL to total NPL

 

 

165.30

 

 

 

153.61

 

 

 

100.07

 

 

 

118.17

 

 

 

106.08

 

Net charge-offs to average loans (2)

 

 

0.94

 

 

 

0.99

 

 

 

1.04

 

 

 

0.91

 

 

 

0.54

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity to assets

 

 

10.8

%

 

 

12.3

%

 

 

13.8

%

 

 

13.9

%

 

 

13.9

%

Tangible common equity to tangible

assets (1)

 

 

10.2

 

 

 

11.5

 

 

 

10.9

 

 

 

10.9

 

 

 

10.8

 

Common equity Tier 1 capital

 

 

11.7

 

 

 

11.4

 

 

 

11.5

 

 

 

11.0

 

 

 

10.9

 

Tier 1 leverage capital (3)

 

 

9.5

 

 

 

10.1

 

 

 

10.3

 

 

 

10.3

 

 

 

10.3

 

Tier 1 risk-based capital (3)

 

 

11.7

 

 

 

11.4

 

 

 

11.5

 

 

 

11.0

 

 

 

10.9

 

Total risk-based capital (3)

 

 

14.3

 

 

 

13.8

 

 

 

13.7

 

 

 

13.1

 

 

 

12.9

 

(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.

(3)

Current quarter regulatory capital ratios are estimates.

Table 2 – Average Balances/Yield/Rates

 

 

 

For the Three Months Ended June 30,

 

 

 

 

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

 

$

11,173,408

 

 

$

125,922

 

 

 

4.53

 

%

 

$

10,044,825

 

 

$

135,946

 

 

 

5.43

 

%

ANCI portfolio

 

 

2,512,163

 

 

 

32,967

 

 

 

5.28

 

 

 

 

3,586,344

 

 

 

55,266

 

 

 

6.18

 

 

PCD portfolio (3)

 

 

198,649

 

 

 

3,965

 

 

 

8.03

 

 

 

 

290,704

 

 

 

10,799

 

 

 

14.90

 

 

Total loans

 

 

13,884,220

 

 

 

162,854

 

 

 

4.72

 

 

 

 

13,921,873

 

 

 

202,011

 

 

 

5.82

 

 

Investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

2,269,017

 

 

 

12,207

 

 

 

2.16

 

 

 

 

1,500,971

 

 

 

10,298

 

 

 

2.75

 

 

Tax-exempt (2)

 

 

218,450

 

 

 

1,948

 

 

 

3.59

 

 

 

 

215,579

 

 

 

2,061

 

 

 

3.83

 

 

Total investment securities

 

 

2,487,467

 

 

 

14,155

 

 

 

2.29

 

 

 

 

1,716,550

 

 

 

12,359

 

 

 

2.89

 

 

Federal funds sold and short-term investments

 

 

1,342,779

 

 

 

328

 

 

 

0.10

 

 

 

 

597,988

 

 

 

2,667

 

 

 

1.79

 

 

Other investments

 

 

77,337

 

 

 

247

 

 

 

1.28

 

 

 

 

67,124

 

 

 

520

 

 

 

3.11

 

 

Total interest-earning assets

 

 

17,791,803

 

 

 

177,584

 

 

 

4.01

 

 

 

 

16,303,535

 

 

 

217,557

 

 

 

5.35

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

176,716

 

 

 

 

 

 

 

 

 

 

 

 

111,337

 

 

 

 

 

 

 

 

 

 

Premises and equipment

 

 

127,413

 

 

 

 

 

 

 

 

 

 

 

 

128,067

 

 

 

 

 

 

 

 

 

 

Accrued interest and other assets

 

 

672,132

 

 

 

 

 

 

 

 

 

 

 

 

1,217,228

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(267,464

)

 

 

 

 

 

 

 

 

 

 

 

(106,656

)

 

 

 

 

 

 

 

 

 

Total assets

 

$

18,500,600

 

 

 

 

 

 

 

 

 

 

 

$

17,653,511

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

8,368,151

 

 

$

7,511

 

 

 

0.36

 

%

 

$

7,732,568

 

 

$

30,195

 

 

 

1.57

 

%

Savings deposits

 

 

291,874

 

 

 

179

 

 

 

0.25

 

 

 

 

251,270

 

 

 

245

 

 

 

0.39

 

 

Time deposits

 

 

2,527,090

 

 

 

10,451

 

 

 

1.66

 

 

 

 

3,379,889

 

 

 

20,298

 

 

 

2.41

 

 

Total interest-bearing deposits

 

 

11,187,115

 

 

 

18,141

 

 

 

0.65

 

 

 

 

11,363,727

 

 

 

50,738

 

 

 

1.79

 

 

Other borrowings

 

 

149,973

 

 

 

937

 

 

 

2.51

 

 

 

 

300,897

 

 

 

3,051

 

 

 

4.07

 

 

Subordinated debentures

 

 

222,574

 

 

 

3,383

 

 

 

6.11

 

 

 

 

140,722

 

 

 

2,548

 

 

 

7.26

 

 

Total interest-bearing liabilities

 

 

11,559,662

 

 

 

22,461

 

 

 

0.78

 

 

 

 

11,805,346

 

 

 

56,337

 

 

 

1.91

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

4,587,673

 

 

 

 

 

 

 

 

 

 

 

 

3,281,383

 

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

234,469

 

 

 

 

 

 

 

 

 

 

 

 

234,927

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

16,381,804

 

 

 

 

 

 

 

 

 

 

 

 

15,321,656

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

2,118,796

 

 

 

 

 

 

 

 

 

 

 

 

2,331,855

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

18,500,600

 

 

 

 

 

 

 

 

 

 

 

$

17,653,511

 

 

 

 

 

 

 

 

 

 

Net interest income/net interest spread

 

 

 

 

 

 

155,123

 

 

 

3.23

 

%

 

 

 

 

 

 

161,220

 

 

 

3.45

 

%

Net yield on earning assets/net interest margin

 

 

 

 

 

 

 

 

 

 

3.51

 

%

 

 

 

 

 

 

 

 

 

 

3.97

 

%

Taxable equivalent adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

(409

)

 

 

 

 

 

 

 

 

 

 

 

(433

)

 

 

 

 

 

Net interest income

 

 

 

 

 

$

154,714

 

 

 

 

 

 

 

 

 

 

 

$

160,787

 

 

 

 

 

 

_____________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

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

 

 

 

For the Three Months Ended

June 30, 2020

 

 

 

For the Three Months Ended

March 31, 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

 

$

11,173,408

 

 

$

125,922

 

 

 

4.53

 

%

 

$

10,213,846

 

 

$

129,402

 

 

 

5.10

 

%

ANCI portfolio

 

 

2,512,163

 

 

 

32,967

 

 

 

5.28

 

 

 

 

2,731,240

 

 

 

40,650

 

 

 

5.99

 

 

PCD portfolio (3)

 

 

198,649

 

 

 

3,965

 

 

 

8.03

 

 

 

 

216,285

 

 

 

5,082

 

 

 

9.45

 

 

Total loans

 

 

13,884,219

 

 

 

162,854

 

 

 

4.72

 

 

 

 

13,161,371

 

 

 

175,134

 

 

 

5.35

 

 

Investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

2,269,017

 

 

 

12,207

 

 

 

2.16

 

 

 

 

2,198,528

 

 

 

14,015

 

 

 

2.56

 

 

Tax-exempt (2)

 

 

218,450

 

 

 

1,948

 

 

 

3.59

 

 

 

 

198,747

 

 

 

1,807

 

 

 

3.66

 

 

Total investment securities

 

 

2,487,467

 

 

 

14,155

 

 

 

2.29

 

 

 

 

2,397,275

 

 

 

15,822

 

 

 

2.65

 

 

Federal funds sold and short-term investments

 

 

1,342,779

 

 

 

328

 

 

 

0.10

 

 

 

 

628,885

 

 

 

1,783

 

 

 

1.14

 

 

Other investments

 

 

77,337

 

 

 

247

 

 

 

1.28

 

 

 

 

80,173

 

 

 

394

 

 

 

1.98

 

 

Total interest-earning assets

 

 

17,791,802

 

 

 

177,584

 

 

 

4.01

 

 

 

 

16,267,704

 

 

 

193,133

 

 

 

4.77

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

176,716

 

 

 

 

 

 

 

 

 

 

 

 

250,804

 

 

 

 

 

 

 

 

 

 

Premises and equipment

 

 

127,413

 

 

 

 

 

 

 

 

 

 

 

 

127,812

 

 

 

 

 

 

 

 

 

 

Accrued interest and other assets

 

 

672,132

 

 

 

 

 

 

 

 

 

 

 

 

1,249,483

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(267,464

)

 

 

 

 

 

 

 

 

 

 

 

(201,785

)

 

 

 

 

 

 

 

 

 

Total assets

 

$

18,500,599

 

 

 

 

 

 

 

 

 

 

 

$

17,694,018

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

8,368,151

 

 

$

7,511

 

 

 

0.36

 

%

 

$

8,121,641

 

 

$

21,667

 

 

 

1.07

 

%

Savings deposits

 

 

291,874

 

 

 

179

 

 

 

0.25

 

 

 

 

272,444

 

 

 

317

 

 

 

0.47

 

 

Time deposits

 

 

2,527,090

 

 

 

10,451

 

 

 

1.66

 

 

 

 

2,521,917

 

 

 

12,744

 

 

 

2.03

 

 

Total interest-bearing deposits

 

 

11,187,115

 

 

 

18,141

 

 

 

0.65

 

 

 

 

10,916,002

 

 

 

34,728

 

 

 

1.28

 

 

Other borrowings

 

 

149,973

 

 

 

937

 

 

 

2.51

 

 

 

 

217,363

 

 

 

1,108

 

 

 

2.05

 

 

Subordinated debentures

 

 

222,574

 

 

 

3,383

 

 

 

6.11

 

 

 

 

222,335

 

 

 

3,450

 

 

 

6.24

 

 

Total interest-bearing liabilities

 

 

11,559,662

 

 

 

22,461

 

 

 

0.78

 

 

 

 

11,355,700

 

 

 

39,286

 

 

 

1.39

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

4,587,673

 

 

 

 

 

 

 

 

 

 

 

 

3,658,612

 

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

234,469

 

 

 

 

 

 

 

 

 

 

 

 

232,896

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

16,381,804

 

 

 

 

 

 

 

 

 

 

 

 

15,247,208

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

2,118,796

 

 

 

 

 

 

 

 

 

 

 

 

2,446,810

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

18,500,600

 

 

 

 

 

 

 

 

 

 

 

$

17,694,018

 

 

 

 

 

 

 

 

 

 

Net interest income/net interest spread

 

 

 

 

 

 

155,123

 

 

 

3.23

 

%

 

 

 

 

 

 

153,847

 

 

 

3.38

 

%

Net yield on earning assets/net interest margin

 

 

 

 

 

 

 

 

 

 

3.51

 

%

 

 

 

 

 

 

 

 

 

 

3.80

 

%

Taxable equivalent adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

 

 

 

 

 

(409

)

 

 

 

 

 

 

 

 

 

 

 

(379

)

 

 

 

 

 

Net interest income

 

 

 

 

 

$

154,714

 

 

 

 

 

 

 

 

 

 

 

$

153,468

 

 

 

 

 

 

_____________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

Table 3 – Loan Interest Income Detail

 

 

 

Year-To-Date

 

 

For the Three Months Ended

 

(In thousands)

 

June 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

Interest Income Detail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated loans

 

$

255,324

 

 

$

125,922

 

 

$

129,402

 

 

$

134,450

 

 

$

136,333

 

 

$

135,946

 

ANCI loans: interest income

 

 

59,205

 

 

 

26,264

 

 

 

32,940

 

 

 

37,637

 

 

 

43,133

 

 

 

49,095

 

ANCI loans: accretion

 

 

14,413

 

 

 

6,703

 

 

 

7,710

 

 

 

8,610

 

 

 

10,951

 

 

 

6,171

 

PCD loans: interest income (1)

 

 

6,150

 

 

 

3,111

 

 

 

3,039

 

 

 

3,839

 

 

 

3,406

 

 

 

2,781

 

PCD loans: accretion (1)

 

 

2,897

 

 

 

854

 

 

 

2,043

 

 

 

6,018

 

 

 

4,147

 

 

 

8,017

 

Total loan interest income

 

$

337,988

 

 

$

162,854

 

 

$

175,134

 

 

$

190,554

 

 

$

197,970

 

 

$

202,011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yields

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Originated loans

 

 

4.80

 

%

 

4.53

 

%

 

5.10

 

%

 

5.25

 

%

 

5.31

 

%

 

5.43

 

ANCI loans without discount accretion

 

 

4.54

 

 

 

4.20

 

 

 

4.85

 

 

 

4.95

 

 

 

5.23

 

 

 

5.49

 

ANCI loans discount accretion

 

 

1.11

 

 

 

1.08

 

 

 

1.14

 

 

 

1.13

 

 

 

1.33

 

 

 

0.69

 

PCD loans without discount accretion

 

 

5.96

 

 

 

6.30

 

 

 

5.65

 

 

 

6.20

 

 

 

5.23

 

 

 

3.84

 

PCD loans discount accretion

 

 

2.81

 

 

 

1.73

 

 

 

3.80

 

 

 

9.73

 

 

 

6.37

 

 

 

11.06

 

Total loan yield

 

 

5.03

 

%

 

4.72

 

%

 

5.35

 

%

 

5.63

 

%

 

5.72

 

%

 

5.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Prior quarter PCD amounts have been revised to be comparable to the current quarter presentation. Interest income for PCD loans represents contractual interest.

Table 4 – Allowance for Credit Losses (“ACL”) (1)

 

 

 

For the Three Months Ended

 

(In thousands)

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

Balance at beginning of period

 

$

245,246

 

 

$

119,643

 

 

$

127,773

 

 

$

115,345

 

 

$

105,038

 

Cumulative effect of the adoption of CECL (2)

 

 

 

 

 

75,850

 

 

 

 

 

 

 

 

 

 

Charge-offs

 

 

(33,452

)

 

 

(33,098

)

 

 

(35,432

)

 

 

(31,650

)

 

 

(18,981

)

Recoveries

 

 

901

 

 

 

613

 

 

 

176

 

 

 

314

 

 

 

361

 

Net charge-offs

 

 

(32,551

)

 

 

(32,485

)

 

 

(35,256

)

 

 

(31,336

)

 

 

(18,620

)

Provision for loan losses

 

 

158,206

 

 

 

82,238

 

 

 

27,126

 

 

 

43,764

 

 

 

28,927

 

Balance at end of period

 

$

370,901

 

 

$

245,246

 

 

$

119,643

 

 

$

127,773

 

 

$

115,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 June 30, 2020

 

(In thousands)

 

Commercial and Industrial

 

 

Commercial Real Estate

 

 

Consumer

 

 

Total Allowance for Credit Losses

 

 

Reserve for Unfunded Commitments (1)

 

 

Total

 

As of March 31, 2020

 

$

154,585

 

 

$

53,418

 

 

$

37,243

 

 

$

245,246

 

 

$

3,222

 

 

$

248,468

 

Provision for credit losses

 

 

95,325

 

 

 

59,359

 

 

 

3,522

 

 

 

158,206

 

 

 

605

 

 

 

158,811

 

Charge-offs

 

 

(32,816

)

 

 

(327

)

 

 

(309

)

 

 

(33,452

)

 

 

 

 

 

(33,452

)

Recoveries

 

 

702

 

 

 

30

 

 

 

169

 

 

 

901

 

 

 

 

 

 

901

 

As of June 30, 2020

 

$

217,796

 

 

$

112,480

 

 

$

40,625

 

 

$

370,901

 

 

$

3,827

 

 

$

374,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 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

 

 

159,008

 

 

 

77,158

 

 

 

4,278

 

 

 

240,444

 

 

 

1,796

 

 

 

242,240

 

Charge-offs

 

 

(64,803

)

 

 

(806

)

 

 

(941

)

 

 

(66,550

)

 

 

 

 

 

(66,550

)

Recoveries

 

 

844

 

 

 

210

 

 

 

460

 

 

 

1,514

 

 

 

 

 

 

1,514

 

As of June 30, 2020

 

$

217,796

 

 

$

112,480

 

 

$

40,625

 

 

$

370,901

 

 

$

3,827

 

 

$

374,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

The reserve for unfunded commitments is recorded in other liabilities in the consolidated balance sheets

Table 6 – Criticized Loans by Segment

 

 

 

As of June 30, 2020

 

(Amortized cost in thousands)

 

Special Mention

 

 

Substandard

 

 

Doubtful

 

 

Total Criticized

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General C&I

 

$

45,512

 

 

$

146,333

 

 

$

10,237

 

 

$

202,082

 

Energy

 

 

155,735

 

 

 

114,080

 

 

 

10,747

 

 

 

280,562

 

Restaurant

 

 

171,722

 

 

 

158,596

 

 

 

7,596

 

 

 

337,914

 

Healthcare

 

 

18,250

 

 

 

47,398

 

 

 

 

 

 

65,648

 

Total commercial and industrial

 

 

391,219

 

 

 

466,407

 

 

 

28,580

 

 

 

886,206

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial, retail, and other

 

 

60,819

 

 

 

40,351

 

 

 

534

 

 

 

101,704

 

Multifamily

 

 

91

 

 

 

714

 

 

 

 

 

 

805

 

Office

 

 

346

 

 

 

1,005

 

 

 

 

 

 

1,351

 

Total commercial real estate

 

 

61,256

 

 

 

42,070

 

 

 

534

 

 

 

103,860

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

19,172

 

 

 

 

 

 

19,172

 

Other

 

 

 

 

 

39

 

 

 

 

 

 

39

 

Total consumer

 

 

 

 

 

19,211

 

 

 

 

 

 

19,211

 

Total

 

$

452,475

 

 

$

527,688

 

 

$

29,114

 

 

$

1,009,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2020

 

(Recorded investment in thousands)

 

Special Mention

 

 

Substandard

 

 

Doubtful

 

 

Total Criticized

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General C&I

 

$

64,326

 

 

$

208,452

 

 

$

7,130

 

 

$

279,908

 

Energy sector

 

 

111,261

 

 

 

43,326

 

 

 

5,915

 

 

 

160,502

 

Restaurant industry

 

 

43,916

 

 

 

63,608

 

 

 

6,396

 

 

 

113,920

 

Healthcare

 

 

35,604

 

 

 

3,122

 

 

 

 

 

 

38,726

 

Total commercial and industrial

 

 

255,107

 

 

 

318,508

 

 

 

19,441

 

 

 

593,056

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial, retail, and other

 

 

30,158

 

 

 

14,241

 

 

 

 

 

 

44,399

 

Multifamily

 

 

1,219

 

 

 

 

 

 

 

 

 

1,219

 

Office

 

 

327

 

 

 

9,907

 

 

 

 

 

 

10,234

 

Total commercial real estate

 

 

31,704

 

 

 

24,148

 

 

 

 

 

 

55,852

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

16,760

 

 

 

 

 

 

16,760

 

Other

 

 

 

 

 

8

 

 

 

 

 

 

8

 

Total consumer

 

 

 

 

 

16,768

 

 

 

 

 

 

16,768

 

Total

 

$

286,811

 

 

$

359,424

 

 

$

19,441

 

 

$

665,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 7 – Nonperforming Assets

 

 

 

As of

 

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

Nonperforming loans (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

182,839

 

 

$

136,712

 

 

$

106,803

 

 

$

92,643

 

 

$

103,379

 

Commercial real estate

 

 

25,261

 

 

 

8,133

 

 

 

1,127

 

 

 

6,855

 

 

 

 

Consumer

 

 

16,284

 

 

 

14,808

 

 

 

7,289

 

 

 

5,294

 

 

 

2,942

 

Small business (2)

 

 

 

 

 

 

 

 

4,337

 

 

 

3,334

 

 

 

2,434

 

Total nonperforming loans ("NPL")

 

 

224,384

 

 

 

159,653

 

 

 

119,556

 

 

 

108,126

 

 

 

108,755

 

Foreclosed OREO and other NPA

 

 

13,949

 

 

 

15,679

 

 

 

5,958

 

 

 

6,731

 

 

 

7,712

 

Total nonperforming assets

 

$

238,333

 

 

$

175,332

 

 

$

125,514

 

 

$

114,857

 

 

$

116,467

 

NPL as a percentage of total loans

 

 

1.64

%

 

 

1.19

%

 

 

0.92

%

 

 

0.79

%

 

 

0.80

%

NPA as a percentage of loans plus OREO/other

 

 

1.74

%

 

 

1.31

%

 

 

0.97

%

 

 

0.84

%

 

 

0.85

%

NPA as a percentage of total assets

 

 

1.26

%

 

 

0.99

%

 

 

0.71

%

 

 

0.64

%

 

 

0.67

%

Total accruing loans 90 days or more past due

 

$

3,123

 

 

$

1,999

 

 

$

23,364

 

 

$

24,487

 

 

$

31,374

 

(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, the 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.

Table 8 – Noninterest Income

 

 

 

For the Three Months Ended

 

(In thousands)

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

 

 

June 30,

2019

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory revenue

 

$

6,505

 

 

$

5,605

 

 

$

6,920

 

 

$

6,532

 

 

 

 

$

5,797

 

Trust services revenue

 

 

4,092

 

 

 

4,815

 

 

 

4,713

 

 

 

4,440

 

 

 

 

 

4,578

 

Service charges on deposit accounts

 

 

4,852

 

 

 

6,416

 

 

 

5,181

 

 

 

5,462

 

 

 

 

 

4,730

 

Credit-related fees

 

 

4,401

 

 

 

5,983

 

 

 

5,094

 

 

 

5,960

 

 

 

 

 

5,341

 

Bankcard fees

 

 

1,716

 

 

 

1,958

 

 

 

1,933

 

 

 

2,061

 

 

 

 

 

2,279

 

Payroll processing revenue

 

 

1,143

 

 

 

1,367

 

 

 

1,373

 

 

 

1,196

 

 

 

 

 

1,161

 

SBA income

 

 

1,335

 

 

 

1,908

 

 

 

2,153

 

 

 

2,216

 

 

 

 

 

1,415

 

Other service fees

 

 

1,528

 

 

 

1,912

 

 

 

1,701

 

 

 

1,700

 

 

 

 

 

1,907

 

Securities gains, net

 

 

2,286

 

 

 

2,994

 

 

 

317

 

 

 

775

 

 

 

 

 

938

 

Other

 

 

2,092

 

 

 

2,111

 

 

 

4,513

 

 

 

4,300

 

 

 

 

 

3,576

 

Total noninterest income

 

$

29,950

 

 

$

35,069

 

 

$

33,898

 

 

$

34,642

 

 

 

 

$

31,722

 

Table 9 – Noninterest Expenses

 

 

 

For the Three Months Ended

 

(In thousands)

 

June 30,

2020

 

 

March 31,

2020

 

 

September 30,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

Noninterest Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

47,158

 

 

$

48,807

 

 

$

54,840

 

 

$

51,904

 

 

$

53,660

 

Premises and equipment

 

 

10,634

 

 

 

10,808

 

 

 

11,618

 

 

 

10,913

 

 

 

11,148

 

Merger related expenses

 

 

 

 

 

1,282

 

 

 

925

 

 

 

1,010

 

 

 

4,562

 

Intangible asset amortization

 

 

5,472

 

 

 

5,592

 

 

 

5,876

 

 

 

6,025

 

 

 

5,888

 

Data processing

 

 

3,084

 

 

 

3,352

 

 

 

3,343

 

 

 

3,641

 

 

 

3,435

 

Software amortization

 

 

4,036

 

 

 

3,547

 

 

 

3,427

 

 

 

3,406

 

 

 

3,184

 

Consulting and professional fees

 

 

3,009

 

 

 

2,707

 

 

 

3,552

 

 

 

2,621

 

 

 

1,899

 

Loan related expenses

 

 

735

 

 

 

760

 

 

 

654

 

 

 

(921

)

 

 

1,740

 

FDIC insurance

 

 

3,939

 

 

 

2,436

 

 

 

1,245

 

 

 

527

 

 

 

1,870

 

Communications

 

 

1,002

 

 

 

1,156

 

 

 

1,236

 

 

 

1,425

 

 

 

1,457

 

Advertising and public relations

 

 

920

 

 

 

1,464

 

 

 

1,764

 

 

 

1,368

 

 

 

1,104

 

Legal expenses

 

 

579

 

 

 

411

 

 

 

306

 

 

 

500

 

 

 

645

 

Other

 

 

8,052

 

 

 

11,636

 

 

 

11,732

 

 

 

11,864

 

 

 

9,938

 

Noninterest expenses excluding goodwill impairment charge

 

 

88,620

 

 

 

93,958

 

 

 

100,519

 

 

 

94,283

 

 

 

100,529

 

Goodwill impairment charge

 

 

 

 

 

443,695

 

 

 

 

 

 

 

 

 

 

Total noninterest expenses

 

$

88,620

 

 

$

537,653

 

 

$

100,519

 

 

$

94,283

 

 

$

100,529

 

Table 10 – Reconciliation of Non-GAAP Financial Measures

 

 

 

As of and for the Three Months Ended

 

(In thousands, except share and per share data)

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

Efficiency ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses (numerator)

 

$

88,620

 

 

$

537,653

 

 

$

100,519

 

 

$

94,283

 

 

$

100,529

 

Net interest income

 

$

154,714

 

 

$

153,468

 

 

$

160,911

 

 

$

160,187

 

 

$

160,787

 

Noninterest income

 

 

29,950

 

 

 

35,069

 

 

 

33,898

 

 

 

34,642

 

 

 

31,722

 

Operating revenue (denominator)

 

$

184,664

 

 

$

188,537

 

 

$

194,809

 

 

$

194,829

 

 

$

192,509

 

Efficiency ratio

 

 

47.99

%

 

 

285.17

%

 

 

51.60

%

 

 

48.39

%

 

 

52.22

%

Adjusted efficiency ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses

 

$

88,620

 

 

$

537,653

 

 

$

100,519

 

 

$

94,283

 

 

$

100,529

 

Less: non-cash goodwill impairment charge

 

 

 

 

 

443,695

 

 

 

 

 

 

 

 

 

 

Less: merger related expenses

 

 

 

 

 

1,282

 

 

 

925

 

 

 

1,010

 

 

 

4,562

 

Less: pension plan termination expense

 

 

 

 

 

 

 

 

1,225

 

 

 

 

 

 

 

Less: expenses related to COVID-19 pandemic

 

 

1,205

 

 

 

122

 

 

 

 

 

 

 

 

 

 

Less: other non-routine expenses(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted noninterest expenses (numerator)

 

$

87,415

 

 

$

92,554

 

 

$

98,369

 

 

$

93,273

 

 

$

95,967

 

Net interest income

 

$

154,714

 

 

$

153,468

 

 

$

160,911

 

 

$

160,187

 

 

$

160,787

 

Noninterest income

 

 

29,950

 

 

 

35,069

 

 

 

33,898

 

 

 

34,642

 

 

 

31,722

 

Plus: revaluation of receivable from sale of insurance assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,000

 

Less: gain on sale of acquired loans

 

 

 

 

 

 

 

 

1,263

 

 

 

 

 

 

1,514

 

Less: securities gains, net

 

 

2,286

 

 

 

2,994

 

 

 

317

 

 

 

775

 

 

 

938

 

Adjusted noninterest income

 

 

27,664

 

 

 

32,075

 

 

 

32,318

 

 

 

33,867

 

 

 

31,270

 

Adjusted operating revenue (denominator)

 

$

182,378

 

 

$

185,543

 

 

$

193,229

 

 

$

194,054

 

 

$

192,057

 

Adjusted efficiency ratio

 

 

47.93

%

 

 

49.88

%

 

 

50.91

%

 

 

48.07

%

 

 

49.97

%

Tangible common equity ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

$

2,045,480

 

 

$

2,113,543

 

 

$

2,460,846

 

 

$

2,475,944

 

 

$

2,426,072

 

Less: goodwill and other intangible assets, net

 

 

(137,318

)

 

 

(142,782

)

 

 

(590,949

)

 

 

(597,488

)

 

 

(595,605

)

Tangible common shareholders’ equity

 

 

1,908,162

 

 

 

1,970,761

 

 

 

1,869,897

 

 

 

1,878,456

 

 

 

1,830,467

 

Total assets

 

 

18,857,753

 

 

 

17,237,918

 

 

 

17,800,229

 

 

 

17,855,946

 

 

 

17,504,005

 

Less: goodwill and other intangible assets, net

 

 

(137,318

)

 

 

(142,782

)

 

 

(590,949

)

 

 

(597,488

)

 

 

(595,605

)

Tangible assets

 

$

18,720,435

 

 

$

17,095,136

 

 

$

17,209,280

 

 

$

17,258,458

 

 

$

16,908,400

 

Tangible common equity ratio

 

 

10.19

%

 

 

11.53

%

 

 

10.87

%

 

 

10.88

%

 

 

10.83

%

Tangible book value per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

$

2,045,480

 

 

$

2,113,543

 

 

$

2,460,846

 

 

$

2,475,944

 

 

$

2,426,072

 

Less: goodwill and other intangible assets, net

 

 

(137,318

)

 

 

(142,782

)

 

 

(590,949

)

 

 

(597,488

)

 

 

(595,605

)

Tangible common shareholders’ equity

 

$

1,908,162

 

 

$

1,970,761

 

 

$

1,869,897

 

 

$

1,878,456

 

 

$

1,830,467

 

Common shares outstanding

 

 

125,930,741

 

 

 

125,897,827

 

 

 

127,597,569

 

 

 

128,173,765

 

 

 

128,798,549

 

Tangible book value per share

 

$

15.15

 

 

$

15.65

 

 

$

14.65

 

 

$

14.66

 

 

$

14.21

 

Table 10 (Continued) – Reconciliation of Non-GAAP Measures

 

 

 

As of and for the Three Months Ended

 

(In thousands, except share and per share data)

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

Return on average tangible common equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common equity

 

$

2,118,796

 

 

$

2,446,810

 

 

$

2,471,398

 

 

$

2,447,189

 

 

$

2,331,855

 

Less: average intangible assets

 

 

(140,847

)

 

 

(584,513

)

 

 

(595,439

)

 

 

(598,602

)

 

 

(597,772

)

Average tangible common shareholders’ equity

 

$

1,977,949

 

 

$

1,862,297

 

 

$

1,875,959

 

 

$

1,848,587

 

 

$

1,734,083

 

Net (loss) income

 

$

(56,114

)

 

$

(399,311

)

 

$

51,426

 

 

$

43,986

 

 

$

48,346

 

Plus: non-cash goodwill impairment charge, net of tax

 

 

 

 

 

412,918

 

 

 

 

 

 

 

 

 

 

Plus: intangible asset amortization, net of tax

 

 

4,174

 

 

 

4,261

 

 

 

4,477

 

 

 

4,620

 

 

 

4,515

 

Tangible net income

 

$

(51,940

)

 

$

17,868

 

 

$

55,903

 

 

$

48,606

 

 

$

52,861

 

Return on average tangible common equity(1)

 

 

(10.56

)%

 

 

3.86

%

 

 

11.82

%

 

 

10.43

%

 

 

12.23

%

Adjusted return on average tangible common equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common shareholders’ equity

 

$

1,977,949

 

 

$

1,862,297

 

 

$

1,875,959

 

 

$

1,848,587

 

 

$

1,734,083

 

Tangible net income

 

$

(51,940

)

 

$

17,868

 

 

$

55,903

 

 

$

48,606

 

 

$

52,861

 

Non-routine items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: merger related expenses

 

 

 

 

 

1,282

 

 

 

925

 

 

 

1,010

 

 

 

4,562

 

Plus: pension plan termination expense

 

 

 

 

 

 

 

 

1,225

 

 

 

 

 

 

 

Plus: expenses related to COVID-19 pandemic

 

 

1,205

 

 

 

122

 

 

 

 

 

 

 

 

 

 

Plus: revaluation of receivable from sale of insurance assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,000

 

Less: gain on sale of acquired loans

 

 

 

 

 

 

 

 

1,263

 

 

 

 

 

 

1,514

 

Less: securities gains (losses), net

 

 

2,286

 

 

 

2,994

 

 

 

317

 

 

 

775

 

 

 

938

 

Less: income tax effect of tax deductible non-routine items

 

 

(256

)

 

 

(464

)

 

 

48

 

 

 

55

 

 

 

958

 

Total non-routine items, after tax

 

 

(825

)

 

 

(1,126

)

 

 

522

 

 

 

180

 

 

 

3,152

 

Adjusted tangible net income

 

$

(52,765

)

 

$

16,742

 

 

$

56,425

 

 

$

48,786

 

 

$

56,012

 

Adjusted return on average tangible common equity(1)

 

 

(10.73

)%

 

 

3.62

%

 

 

11.93

%

 

 

10.47

%

 

 

12.96

%

Adjusted return on average assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

18,500,600

 

 

$

17,694,018

 

 

$

17,843,383

 

 

$

17,621,163

 

 

$

17,653,511

 

Net (loss) income

 

$

(56,114

)

 

$

(399,311

)

 

$

51,426

 

 

$

43,986

 

 

$

48,346

 

Return on average assets

 

 

(1.22

)%

 

 

(9.08

)%

 

 

1.14

%

 

 

0.99

%

 

 

1.10

%

Net (loss) income

 

$

(56,114

)

 

$

(399,311

)

 

$

51,426

 

 

$

43,986

 

 

$

48,346

 

Plus: non-cash goodwill impairment charge, net of tax

 

 

 

 

 

412,918

 

 

 

 

 

 

 

 

 

 

Total non-routine items, after tax

 

 

(825

)

 

 

(1,126

)

 

 

522

 

 

 

180

 

 

 

3,152

 

Adjusted net income

 

$

(56,939

)

 

$

12,481

 

 

$

51,948

 

 

$

44,166

 

 

$

51,497

 

Adjusted return on average assets(1)

 

 

(1.24

)%

 

 

0.28

%

 

 

1.16

%

 

 

0.99

%

 

 

1.17

%

Adjusted diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

 

125,924,652

 

 

 

126,630,446

 

 

 

128,003,089

 

 

 

128,515,274

 

 

 

129,035,553

 

Net income allocated to common stock

 

$

(56,114

)

 

$

(399,311

)

 

$

51,248

 

 

$

43,849

 

 

$

48,176

 

Plus: non-cash goodwill impairment, net of tax

 

 

 

 

 

412,918

 

 

 

 

 

 

 

 

 

 

Total non-routine items, after tax

 

 

(825

)

 

 

(1,126

)

 

 

522

 

 

 

180

 

 

 

3,152

 

Adjusted net income allocated to common stock

 

$

(56,939

)

 

$

12,481

 

 

$

51,770

 

 

$

44,029

 

 

$

51,328

 

Adjusted diluted earnings per share

 

$

(0.45

)

 

$

0.10

 

 

$

0.40

 

 

$

0.34

 

 

$

0.40

 

Adjusted pre-tax, pre-provision net revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

$

(62,767

)

 

$

(432,545

)

 

$

67,164

 

 

$

56,782

 

 

$

63,053

 

Plus: Provision for credit losses

 

 

158,811

 

 

 

83,429

 

 

 

27,126

 

 

 

43,764

 

 

 

28,927

 

Plus: non-cash goodwill impairment

 

 

 

 

 

443,695

 

 

 

 

 

 

 

 

 

 

Plus: Total non-routine items before taxes

 

 

(1,081

)

 

 

(1,590

)

 

 

570

 

 

 

235

 

 

 

4,110

 

Adjusted pre-tax, pre-provision net revenue

 

$

94,963