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
$
92,989
$
94,860
$
100,781
$
96,090
(1)
Annualized.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200722005420/en/
Cadence Bancorporation
Media contact: Danielle Kernell 713-871-4051
danielle.kernell@cadencebank.com
Investor relations contact: Valerie Toalson 713-871-4103
or 800-698-7878 vtoalson@cadencebancorporation.com
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