Cadence Bancorporation (NYSE:CADE) (“Cadence”) today reported
first quarter 2017 results.
- Net income for the first quarter of
2017 was $26.1 million compared to $15.3 million in the first
quarter of 2016, representing a 70.2% increase.
- On a per-share basis, net income was
$0.35 per diluted common share for the first quarter of 2017,
compared to $0.20 in the first quarter a year earlier.
- Annualized returns on average assets,
common equity and tangible common equity(1) for the first quarter
of 2017 were 1.10%, 9.71% and 13.96%, respectively, as compared to
0.69%, 5.77% and 8.44%, respectively, for the first quarter of
2016.
- Net interest margin increased 14 basis
points during the first quarter of 2017 to 3.46% from 3.32% for the
first quarter of 2016.
- Total assets were $9.7 billion at March
31, 2017, an increase of $719.5 million or 8.0% as compared to $9.0
billion as of March 31, 2016.
- Loans were $7.6 billion at March 31,
2017, an increase of $677.1 million, up 9.8% as compared to $6.9
billion at March 31, 2016.
“We are very pleased to report our first quarter earnings, our
first as a public company following our initial public offering and
listing on the New York Stock Exchange on April 13, 2017. We
believe Cadence is entering an exciting chapter, and we are pleased
to be introducing new investors to our company. We experienced
solid results with revenues and margin increasing, expenses down
and credit stable. While Federal Reserve data has shown recent
industry declines in C&I loan growth, our loan growth continued
in C&I and throughout our other key business lines. It was a
good quarter,” said Paul Murphy, Cadence’s Chairman and Chief
Executive Officer.
Period End Balance Sheet:
Cadence continued solid growth, completing the first quarter of
2017 with total assets of $9.7 billion, an increase of $719.5
million or 8.0% from March 31, 2016 total assets of $9.0 billion,
and an increase of $190.0 million or 2.0% from December 31, 2016
total assets of $9.5 billion.
Loans excluding held-for-sale at March 31, 2017 were $7.6
billion, an increase of $677.1 million or 9.8%, compared with $6.9
billion at March 31, 2016, reflecting growth in our commercial and
residential loan portfolios. Linked quarter loans increased $128.8
million or 1.7% from $7.4 billion at December 31, 2016, reflecting
seasonal first quarter softness as well as growth in restaurant
franchise and residential loans offset by paydowns in energy.
Cadence’s energy lending portfolio totaled $903.9 million or 11.9%
of total loans at March 31, 2017, as compared to $939.4 million or
12.6% of total loans at December 31, 2016. At March 31, 2017,
midstream made up the largest component of energy loans at 52.0%,
followed by exploration and production at 37.6% and energy services
at 10.5%.
Total deposits at March 31, 2017 were $7.8 billion, an increase
of $473.0 million or 6.4%, compared with $7.4 billion at March 31,
2016, primarily a result of expansion of commercial deposit
relationships and treasury management services. Linked quarter
deposits decreased $175.0 million or 2.2% from $8.0 billion at
December 31, 2016, due primarily to seasonal flows, reflecting an
increase in noninterest bearing deposits offset by declines in
higher cost money market and time deposits.
Results of Operations for the
Quarter:
Net income for the first quarter of 2017 was $26.1 million
compared to $15.3 million in the first quarter of 2016, and $29.0
million for the fourth quarter of 2016. The year-over-year net
income improvement was driven by continued asset and revenue
growth, margin improvement, flat expenses and improved credit
costs. The decline in net income on a linked quarter basis was due
primarily to a provision for credit loss recovery in the fourth
quarter of 2016 versus a provision expense in the first quarter of
2017. Pre-tax, pre-provision net earnings(1) were $44.5 million for
the first quarter of 2017 as compared to $39.5 million in the
fourth quarter of 2016. On a per-share basis, net income was $0.35
per diluted common share for the first quarter of 2017, compared to
$0.20 a year earlier and $0.38 for the linked quarter. The first
quarter of 2017 annualized returns on average assets, common equity
and tangible common equity(1) were 1.10%, 9.71% and 13.96%,
respectively, as compared to 0.69%, 5.77% and 8.44%, respectively,
for the first quarter of 2016, and 1.20%, 10.54% and 15.16% for the
fourth quarter of 2016.
Net interest margin for the first quarter of 2017 was 3.46% as
compared to 3.32% for the first quarter of 2016 and 3.31% for the
fourth quarter of 2016. This increase resulted from deposit costs
lagging earning asset increases from rate increases during the
period. Total cost of deposits for the first quarter of 2017 was 49
basis points versus 45 basis points in the prior year’s quarter,
while yield on earning assets increased to 4.13% for the first
quarter of 2017 versus 3.97% for the first quarter of 2016.
Net interest income for the first quarter of 2017 was $74.8
million as compared to $67.3 million during the same period in
2016, an increase of $7.5 million or 11.1%. This increase was due
to increased yield and volume of our originated loan portfolio.
Driven by the same dynamics, linked quarter net interest income
increased $2.3 million or 3.1% from $72.5 million in the fourth
quarter of 2016.
Noninterest income for the first quarter of 2017 was $24.1
million as compared to $20.1 million during the same period in
2016, an increase of $4.0 million or 19.7%. This increase was due
to increases in trust services revenue, service charges on deposit
accounts and changes in other asset valuations. Linked quarter
noninterest income increased $1.7 million or 7.8% from $22.4
million for the fourth quarter of 2016, driven by increases in
trust services, insurance revenue and changes in other asset
valuations, offset by lower securities gains in the first quarter
of 2017.
Noninterest expense for the first quarter of 2017 was $54.3
million as compared to $54.0 million during the same period in
2016, an increase of $0.3 million or 0.5%. Personnel expenses, the
largest component of noninterest expense, increased to $34.3
million, or 4.4% in the first quarter of 2017 compared to the first
quarter of 2016. Salary expense remained level, however other
personnel expenses increased primarily due to short and long term
incentive costs. These costs were offset by lower intangible asset
amortization and other expenses as a result of targeted expense
management efforts. Linked quarter noninterest expenses declined
$1.1 million or 1.9% from $55.4 million for the fourth quarter of
2016, reflecting broad based expense management offset by increased
personnel costs that typically are higher in the first quarter of
each year due to payroll taxes and annual bonus 401(k) match
expense, combined with the impact of approximately $2.5 million of
incentive and long term compensation accrual reversals in the
fourth quarter of 2016.
The efficiency ratio(1) for the first quarter of 2017 was 55.0%,
an improvement from both the first and fourth quarters of 2016 of
61.8% and 58.4%, respectively, reflecting ongoing focus on
efficiency and historically lower first quarter miscellaneous
expenses.
Asset Quality:
Nonperforming assets totaled $171.0 million at March 31, 2017,
increasing from $166.2 million at December 31, 2016, and down from
$218.2 million at March 31, 2016. The decline as compared to the
prior year is due primarily to resolutions and paydowns of energy
credits. At March 31, 2017, $135.2 million or 79.1% of the
nonperforming assets (NPAs) related to the energy portfolio.
Additionally, of the $118.6 million in energy nonperforming loans
included in total nonperforming assets, over 90% were paying in
accordance with contractual terms as of March 31, 2017.
The allowance for credit losses (ACL) was $88.3 million or 1.2 %
of total loans at March 31, 2017, as compared to $90.8 million or
1.3 % of total loans at March 31, 2016 and $82.3 million or 1.1% of
total loans at December 31, 2016. At March 31, 2017, the allowance
included reserves for the energy portfolio as follows: midstream of
1.2%, exploration and production of 5.7% and energy services of
6.4%. This compares to the December 31, 2016 energy portfolio
reserve ratios of 1.3% for midstream, 3.5% for exploration and
production and 5.9% for energy services.
The provision for credit losses was $5.8 million for the first
quarter of 2017, compared with $10.5 million for the first quarter
of 2016 and a net provision reversal of $5.2 million for the fourth
quarter of 2016.
Net recoveries were $250 thousand for the first quarter of 2017,
compared with net recoveries of $496 thousand for the first quarter
of 2016 and net charge-offs of $3.7 million for the fourth quarter
of 2016.
“As noted earlier, we are pleased with our first quarter
performance. We are proud of our hard-working bankers and our focus
on customer service. We look forward to sharing our performance
with you as we move ahead,” stated Mr. Murphy.
First Quarter 2017 Earnings Conference
Call:
Cadence Bancorporation executive management will host a
conference call to discuss first quarter 2017 results on Monday,
May 8, 2017, at 1:00 p.m. CT / 2:00 p.m. ET.
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: 1388393
For those unable to participate in the live presentation, a
replay will be available through May 22, 2017. 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: 10106518 End Date: May 22, 2017
Webcast Access:
A webcast of the conference call as well as the slides to be
presented by management can be viewed by visiting
www.cadencebank.com, clicking through the following links:
“Investor Relations”, “Events & Presentations” and “Event
Calendar”.
About Cadence Bancorporation
Cadence Bancorporation (NYSE:CADE) is a $9.7 billion in assets
regional bank holding company headquartered in Houston, Texas.
Through its affiliates, Cadence operates 65 locations in Alabama,
Florida, 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, commercial real
estate, foreign exchange, wealth management, investment and trust
services, financial planning, retirement plan management, business
and personal insurance, 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 55,000 ATMs. The Cadence team of
1,200 associates is committed to exceeding customer expectations
and helping their clients succeed financially. Cadence Bank, N.A.,
Cadence Insurance, and Linscomb & Williams are direct or
indirect subsidiaries of Cadence Bancorporation.
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-1 filed with the
Securities and Exchange Commission (SEC), 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; lack of seasoning
in our loan portfolio; 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 identify 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; and the amount of nonperforming and classified
assets we hold. 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 noninterest expenses,”
“adjusted operating revenue,” “tangible common equity ratio,”
“tangible book value per share” and “return on average tangible
common equity” 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 6).
(1) Considered a non-GAAP financial measure. See Table 6
“Reconciliation of Non-GAAP Financial Measures” for a
reconciliation of our non-GAAP measures to the most directly
comparable GAAP financial measure.
Table 1 - Selected Financial Data
As of and for the three months
ended
March 31, December 31, September
30,
June 30,
March 31,
2017 2016 2016 2016
2016
(dollars in thousands, except share
data)
Statement of Operations Data:
Interest income
$ 89,619 $ 87,068 $ 84,654 $ 82,921 $ 80,607 Interest expense
14,861 14,570 14,228
13,672 13,341 Net interest income 74,758 72,498
70,426 69,249 67,266 Provision for credit losses 5,786
(5,222 ) 29,627 14,471 10,472
Net interest income after provision 68,972 77,720 40,799
54,778 56,794 Noninterest income - service fees and revenue 22,489
20,605 20,878 20,048 20,489 - other noninterest income 1,616 1,755
1,913 3,058 (343 ) Noninterest expense 54,321
55,394 54,876 55,868 54,042
Income before income taxes 38,756 44,686 8,714 22,016 22,898 Income
tax expense 12,639 15,701 2,107
7,175 7,557 Net income $ 26,117 $
28,985 $ 6,607 $ 14,841 $ 15,341
Period-End
Balance Sheet Data: Investment securities, available-for-sale $
1,116,280 $ 1,139,347 $ 1,031,319 $ 980,526 $ 1,033,341 Total
loans, net of unearned income 7,561,472 7,432,712 7,207,313
7,162,027 6,884,399 Allowance for credit losses 88,304 82,268
91,169 87,147 90,751 Total assets 9,720,937 9,530,888 9,444,010
9,221,807 9,001,483 Total deposits 7,841,710 8,016,749 7,917,289
7,672,657 7,368,748 Non-interest-bearing deposits 1,871,514
1,840,955 1,642,480 1,668,179 1,565,738 Interest-bearing deposits
5,970,196 6,175,794 6,274,809 6,004,478 5,803,010 Borrowings and
subordinated debentures 682,567 331,712 332,787 334,192 482,622
Total shareholders’ equity 1,105,976 1,080,498 1,111,783 1,116,076
1,086,008
Average Balance Sheet Data: Investment
securities, available-for-sale $ 1,125,174 $ 1,060,821 $ 1,110,836
977,597 $ 854,154 Total loans, net of unearned income 7,551,173
7,375,446 7,225,365 7,180,357 6,962,358 Allowance for credit losses
82,258 95,042 93,132 91,211 81,587 Total assets 9,670,593 9,596,574
9,400,145 9,167,153 8,917,662 Total deposits 8,025,068 8,425,326
7,843,582 7,496,120 7,781,267 Non-interest-bearing deposits
1,857,657 1,784,422 1,697,633 1,655,761 6,166,618 Interest-bearing
deposits 6,167,411 6,640,904 6,145,949 5,840,359 1,614,649
Borrowings and subordinated debentures 474,976 500,045 368,192
512,837 430,074 Total shareholders’ equity 1,090,905 1,094,182
1,118,603 1,092,034 1,069,314
Table 1 (Continued) - Selected
Financial Data
As of and for the three months ended March 31,
December 31, September 30, June 30,
March 31,
2017 2016 2016 2016
2016
(dollars in thousands, except per share data)
Per Share
Data:(3) Earnings Basic $ 0.35 $ 0.39 $ 0.09 $ 0.20 $ 0.20
Diluted 0.35 0.38 0.09 0.20 0.20 Book value per common share 14.75
14.41 14.82 14.88 14.48 Tangible book value (1) 10.33 9.97 10.37
10.40 9.98 Weighted average common shares outstanding Basic
75,000,000 75,000,000 75,000,000 75,000,000 75,000,000 Diluted
75,672,750 75,402,525 75,258,375 75,258,375 75,258,375
Performance Ratios:
Return on average common equity (2) 9.71 % 10.54 % 2.35 % 5.47 %
5.77 % Return on average equity (2) 9.71 10.54 2.35 5.47 5.77
Return on average tangible common equity (1) (2) 13.96 15.16 3.36
7.90 8.44 Return on average assets (2) 1.10 1.20 0.28 0.65 0.69 Net
interest margin (2) 3.46 3.31 3.27 3.32 3.32 Efficiency ratio (1)
54.95 58.40 58.87 60.49 61.82
Asset Quality Ratios:
Total nonperforming assets ('NPAs") to total loans and OREO and
other NPAs 2.25 % 2.22 % 2.52 % 2.72 % 3.15 % Total nonperforming
loans to total loans 1.77 1.73 2.13 2.26 2.64 Total ACL to total
loans 1.17 1.11 1.26 1.22 1.32 ACL to total nonperforming loans
("NPLs") 65.80 63.80 59.34 53.84 49.88 Net charge-offs to average
loans (2) (0.01 ) 0.20 1.41 1.01 (0.03 )
Capital Ratios:
Total shareholders’ equity to assets
11.38 % 11.34 % 11.77 % 12.10 % 12.06 % Tangible common equity to
tangible assets (1) 8.25 8.13 8.54 8.78 8.64 Common equity tier 1
(CET1) (transitional) 8.99 8.84 8.82 8.69 8.60 Tier 1 leverage
capital 9.10 8.89 8.73 8.90 8.90 Tier 1 risk-based capital 9.36
9.19 9.17 9.00 8.93 Total risk-based capital 11.43 11.22 11.38
11.10 11.16 (1) - Considered a non-GAAP financial measure.
See "Non-GAAP Financial Measures" for a reconciliation of our
non-GAAP measures to the most directly comparable GAAP financial
measure. (2) - Annualized. (3) - All outstanding
shares are owned by our parent-holding company Cadence Bancorp LLC
Table 2 - Average Balances/Yield/Rates
Three Months Ended March 31, 2017
2016 Average Income/
Yield/ Average Income/
Yield/ Balance Expense Rate
Balance Expense Rate
(Dollars in thousands)
ASSETS
Interest-earning assets: Loans, net of unearned income(1)
Originated and ANCI loans $ 7,234,671 $ 73,869 4.14 % $ 6,543,758 $
62,892 3.87 % ACI portfolio 316,502 6,941
8.89 418,600 10,869 10.44 Total
loans 7,551,173 80,810 4.34 6,962,358 73,761 4.26 Investment
securities Taxable 722,465 4,301 2.41 698,165 4,385 2.53 Tax-exempt
(2) 402,709 5,252 5.29 155,989
1,977 5.10 Total investment securities
1,125,174 9,553 3.44 854,154 6,362 3.00 Federal funds sold and
short-term investments 264,355 425 0.65 380,189 481 0.51 Other
investmnents 48,047 669 5.65
44,861 695 6.23 Total interest-earning assets
8,988,749 91,457 4.13 8,241,562 81,299 3.97
Noninterest-earning
assets: Cash and due from banks 53,450 49,403 Premises and
equipment 66,298 70,404 Accrued interest and other assets 644,354
637,880 Allowance for credit losses (82,258 ) (81,587
)
Total assets
$ 9,670,593 $ 8,917,662
LIABILITIES AND STOCKHOLDERS'
EQUITY
Interest-bearing liabilities:
Demand deposits $ 4,455,742 $ 5,531 0.50 % $ 4,038,943 $ 4,278 0.43
% Savings deposits 182,247 112 0.25 174,933 97 0.22 Time deposits
1,529,422 4,122 1.09 1,522,668
3,831 1.01 Total interest-bearing deposits
6,167,411 9,765 0.64 5,736,544 8,206 0.58 Other borrowings 340,470
2,802 3.34 296,367 2,849 3.87 Subordinated debentures
134,506 2,294 6.92 133,707
2,286 6.88 Total interest-bearing liabilities
6,642,387 14,861 0.91 6,166,618 13,341 0.87
Noninterest-bearing
liabilities: Demand deposits 1,857,657 1,614,649 Accrued
interest and other liabilities 79,644 67,081
Total liabilities
8,579,688 7,848,348
Stockholders' equity 1,090,905
1,069,314 Total liabilities and stockholders'
equity $ 9,670,593 $ 8,917,662 Net interest
income/net interest spread 76,596 3.22 % 67,958 3.10 % Net yield on
earning assets/net interest margin 3.46
%
3.32 %
Taxable equivalent adjustment: Investment securities
(1,838 ) (692 ) Net interest income $ 74,758 $
67,266 _____________________
(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 a tax rate of 35%.
Table 3
- Allowance for Credit Losses Three Months Ended
March 31,
December 31,
September 30,
June 30,
March 31, 2017
2016
2016
2016
2016 (Dollars in thousands) Balance at beginning
of period $ 82,268 $ 91,169 $ 87,147 $ 90,751 $ 79,783 Net
recoveries (charge-offs) 250 (3,679 ) (25,605 ) (18,075 ) 496
Provision (reversal of) for credit losses 5,786
(5,222 ) 29,627 14,471 10,472
Balance at end of period $ 88,304 $ 82,268 $ 91,169
$ 87,147 $ 90,751
Table 4 - Noninterest Income
Three Months Ended March 31,
December 31,
September 30,
June 30,
March 31, 2017
2016
2016
2016 2016 Noninterest Income (Dollars in
thousands) Investment advisory revenue $ 4,916 $ 4,821 $ 4,733
$ 4,653 $ 4,604 Trust services revenue 5,231 4,109 3,959 3,971
4,070 Service charges on deposit accounts 3,815 3,614 3,555 3,270
3,354 Credit-related fees 2,747 2,875 2,689 2,507 2,674 Insurance
revenue 2,130 1,577 1,863 1,953 2,324 Bankcard fees 1,812 1,813
1,823 1,777 1,729 Mortgage banking revenue 866 1,019 1,459 1,101
1,084 Other service fees earned 972 777 797
816 650
Total service fees and revenue
22,489 20,605 20,878 20,048
20,489 Securities gains, net 81 1,267 1,386 1,019 64
Other 1,535 488 527 2,039 (407 )
Total other noninterest income
1,616 1,755 1,913 3,058 (343 )
Total noninterest income $ 24,105 $ 22,360 $ 22,791 $ 23,106
$ 20,146
Table 5 - Noninterest Expenses
Three Months Ended March 31,
December 31,
September 30,
June 30, March 31, 2017
2016
2016
2016 2016
Noninterest Expenses
Salaries and employee benefits $ 34,267 $ 28,139 $ 31,086 $ 33,033
$ 32,810 Premises and equipment 6,693 7,475 7,130 6,626 6,751
Intangible asset amortization 1,241 1,555 1,607 1,659 1,711 Net
cost of operation of other real estate owned 296 1,117 1,126 107
684 Data processing 1,696 1,767 1,530 1,594 1,389 Special asset
expenses 140 670 477 392 (40 ) Consulting and professional fees
1,139 2,288 2,040 1,092 1,309 Loan related expenses 280 1,236 985
744 437 FDIC insurance 1,493 1,517 1,912 2,292 1,506 Communications
655 741 535 721 658 Advertising and public relations 345 344 303
338 383 Legal expenses 432 662 337 978 744 Branch closure expenses
46 47 52 75 64 Other 5,598 7,836 5,756
6,217 5,636
Total noninterest expenses $
54,321 $ 55,394 $ 54,876 $ 55,868 $ 54,042
Table 6 - Reconciliation of Non-GAAP Financial Measures
As of and for the three months ended March
31, December 31,
September 30,
June 30, March 31, 2017 2016
2016
2016 2016 (In thousands) Efficiency
ratio Noninterest expenses (numerator) $ 54,321 $ 55,394
$ 54,876 $ 55,868 $ 54,042 Net interest
income $ 74,758 $ 72,498 $ 70,426 $ 69,249 $ 67,266 Noninterest
income 24,105 22,360 22,791
23,106 20,146 Operating revenue
(denominator) $ 98,863 $ 94,858 $ 93,217 $
92,355 $ 87,412 Efficiency ratio 54.95
% 58.40 % 58.87 % 60.49 % 61.82 %
Adjusted noninterest expenses and operating revenue
Noninterest expense $ 54,321 $ 55,394 $ 54,876 $ 55,868 $ 54,042
Less: Branch closure expenses 46 47
52 75 64 Adjusted
noninterest expenses $ 54,275 $ 55,347 $ 54,824
$ 55,793 $ 53,978 Net interest income $ 74,758
$ 72,498 $ 70,426 $ 69,249 $ 67,266 Noninterest income 24,105
22,360 22,791 23,106 20,146 Less: Securities gains, net 81
1,267 1,386 1,019
64 Adjusted operating revenue $ 98,782 $
93,591 $ 91,831 $ 91,336 $ 87,348
Tangible common equity ratio Shareholders’ equity $
1,105,976 $ 1,080,498 $ 1,111,783 $ 1,116,076 $ 1,086,008 Less:
Goodwill and other intangible assets, net (331,450 )
(332,691 ) (334,246 ) (335,852 ) (337,512 )
Tangible common shareholders’ equity 774,526
747,807 777,537 780,224
748,496 Total assets 9,720,937 9,530,888 9,444,010 9,221,807
9,001,483 Less: Goodwill and other intangible assets, net
(331,450 ) (332,691 ) (334,246 ) (335,852 )
(337,512 ) Tangible assets $ 9,389,487 $ 9,198,197
$ 9,109,764 $ 8,885,955 $ 8,663,971
Tangible common equity ratio 8.25 % 8.13 %
8.54 % 8.78 % 8.64 %
Tangible book value
per share Shareholders’ equity $ 1,105,976 $ 1,080,498 $
1,111,783 $ 1,116,076 $ 1,086,008 Less: Goodwill and other
intangible assets, net (331,450 ) (332,691 )
(334,246 ) (335,852 ) (337,512 ) Tangible common
shareholders’ equity $ 774,526 $ 747,807 $ 777,537
$ 780,224 $ 748,496 Common shares issued
75,000,000 75,000,000 75,000,000
75,000,000 75,000,000 Tangible
book value per share $ 10.33 $ 9.97 $ 10.37 $
10.40 $ 9.98
Return on average tangible
common equity Average common equity $ 1,090,905 $ 1,094,182 $
1,118,603 $ 1,092,034 $ 1,069,314 Less: Average intangible assets
(332,199 ) (333,640 ) (335,215 )
(336,856 ) (338,542 ) Average tangible common shareholders’
equity $ 758,706 $ 760,542 $ 783,388 $ 755,178
$ 730,772 Net income $ 26,117 $ 28,985
$ 6,607 $ 14,841 $ 15,341 Return on average
tangible common equity 13.96 % 15.16 %
3.36 % 7.90 % 8.44 %
Pre-tax, pre-provision net earnings Income before
taxes $ 38,756 $ 44,686 $ 8,714 $ 22,016 $ 22,898 Plus: Provision
for credit losses 5,786 (5,222 ) 29,627
14,471 10,472 Pre-tax,
pre-provision net earnings $ 44,542 $ 39,464 $ 38,341
$ 36,487 $ 33,370
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version on businesswire.com: http://www.businesswire.com/news/home/20170508005434/en/
Cadence
BancorporationMedia contact:Danielle Kernell,
713-871-4051danielle.kernell@cadencebank.comorInvestor relations
contact:Valerie Toalson, 713-871-4103 or
800-698-7878vtoalson@cadencebancorporation.com
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