Cadence Bancorporation (NYSE: CADE) (“Cadence”) today announced
net income for the quarter ended September 30, 2021, of $84.0
million or $0.67 per share, compared to net income of $101.3
million or $0.80 per share for the quarter ended June 30, 2021, and
to net income of $49.3 million or $0.39 per share for the quarter
ended September 30, 2020. Adjusted net income(1), excluding
non-routine income and expenses(2), was $83.4 million or $0.67 per
share for the quarter ended September 30, 2021, compared to $106.1
million or $0.84 per share for the quarter ended June 30, 2021, and
compared to $51.4 million or $0.40 per share for the quarter ended
September 30, 2020.
“As we look forward to the closing of our merger with
BancorpSouth scheduled for the end of this week, I would like to
take a moment to express my gratitude to every one of our bankers
who have helped build our great institution over the past 11
years,” commented Chairman and Chief Executive Officer Paul B.
Murphy, Jr. “We started with an all-star board and the goal of
deploying $1 billion of opportunistic capital to strengthen the
banking system in the years following the Great Financial Crisis.
We have since grown to a premier $20 billion commercial bank
serving Texas and the Southeast. I would like to thank our
customers and the communities we serve for their trust and support.
This merger takes us to the next chapter in the Cadence Bank story,
and we pledge to continue to work hard for you and earn your
loyalty.
“Our financial results for the third quarter provide an
advantageous foundation for the new combined Cadence, highlighted
by strong capital ratios, Common Equity Tier 1 ratio of 14.5%, and
Total Capital of 16.6%, and continued improvement in credit, as
demonstrated by a 29% linked quarter decline in criticized loans,
net recoveries of $0.4 million, a ($28.4) million provision
release, and an allowance for credit losses at 1.91% of total loans
or 218.6% to total nonperforming loans. The adjusted pre-tax
pre-provision net revenue remained solid at $79.4 million or 1.66%
of average assets, as did our profitability ratios with adjusted
annualized returns on average assets and adjusted tangible common
equity of 1.75% and 16.56%, respectively.
“I am proud of Cadence’s historical achievements. Our team is
excited about combining our franchise with BancorpSouth to create a
top-tier regional bank with approximately $48 billion in pro forma
assets. This strategic combination expands our reach and offerings,
which will have a positive impact for our customers and communities
while driving long-term shareholder value. As I noted previously,
the scale of our combined bank, our collective talent, our
complementary cultures, and our strategic footprint in some of the
fastest-growing markets in the country have us extremely excited
about the future. We look forward to delivering significant value
to our shareholders, driven by meaningful synergies and our shared
banking philosophy of putting the client first.”
Third Quarter 2021
Highlights:
Third quarter 2021 highlights are as follows:
- Adjusted pre-tax pre-provision net revenue(1) (“PPNR”) remained
solid at $79.4 million or 1.66% of average assets.
- The allowance for credit losses (“ACL”) reflected a ($28.4)
million provision release in the third quarter of 2021. The ACL
remained meaningful at 1.91% of total loans. Our ratio of ACL to
total nonperforming loans was 218.6%.
- Net charge-offs (recoveries) were ($0.4) million or (0.01%)
annualized of average loans.
- We continued to deleverage the balance sheet, paying off $100
million in FHLB advances in the quarter in addition to the $90
million of debt paid off in the first half of this year.
- Our capital ratios remained robust, with the Common Equity Tier
1 ratio at 14.5% and total risk weighted capital at 16.6%.
- Our adjusted efficiency ratio(1) was 56.5%.
- Annualized returns on average assets and tangible common equity
were 1.76% and 16.66%, respectively.
- Adjusted annualized returns on average assets(1) and adjusted
tangible common equity(1) were 1.75% and 16.56%, respectively.
Balance Sheet:
Total assets were $19.8 billion as of September 30, 2021, an
increase of $1.1 billion or 5.7% from June 30, 2021, and an
increase of $1.3 billion or 7.3% from September 30, 2020. The
linked quarter increase was largely driven by an increase in
deposits and a corresponding increase in cash and cash equivalents,
partially offset by small decreases in investment securities and
total loans.
Cash and Cash Equivalents at September 30, 2021, totaled
$3.4 billion as compared to $2.1 billion at June 30, 2021 and $1.2
billion at September 30, 2020. The $1.3 billion increase in the
third quarter of 2021 was driven by an increase of $1.2 billion in
deposits.
Loans at September 30, 2021 totaled $11.5 billion as
compared to $11.6 billion at June 30, 2021, a decrease of $136.3
million or 1.2%. Loans decreased $2.0 billion or 14.6% from $13.5
billion at September 30, 2020. Non-PPP loans increased $76 million
linked quarter before adjusting for $43 million of loans related to
planned branch divestitures moved to held-for-sale. The increase in
non-PPP loans was driven by increases in General C&I loans.
Investment Securities at September 30, 2021 totaled $4.0
billion as compared to $4.3 billion at June 30, 2021 and $3.1
billion at September 30, 2020. Securities as a percent of earning
assets was 21.2%, 23.9% and 17.4% at September 30, 2021, June 30,
2021 and September 30, 2020, respectively. The decrease in
securities from the linked quarter resulted primarily from sales of
approximately $505 million during the quarter as part of balance
sheet positioning in preparation for the upcoming merger with
BancorpSouth Bank.
Total Deposits at September 30, 2021 were $17.1 billion,
an increase of $1.2 billion or 7.2% from June 30, 2021 and up $1.4
billion or 8.6% from September 30, 2020. Non-interest bearing
deposits increased to $6.3 billion or 36.9% of total deposits at
September 30, 2021, up from $5.7 billion or 35.5% of total deposits
at June 30, 2021 and $5.0 billion or 31.9% at September 30, 2020.
Total cost of deposits declined to 0.12% for the third quarter of
2021, down from both the second quarter 2021 cost of 0.15% and the
third quarter 2020 cost of 0.32%.
Total Borrowings at September 30, 2021 were $182.8
million, a decrease of $99.8 million from $282.7 million at June
30, 2021 and a decrease of $189.6 million from $372.4 million at
September 30, 2020. The third quarter decrease was due to
prepayment of $100.0 million in FHLB advances in September
2021.
Shareholders’ equity was $2.2 billion at September 30,
2021, essentially unchanged from June 30, 2021 and up $110.6
million or 5.3% from September 30, 2020. The linked quarter
activity included quarterly net income of $84.0 million, a decrease
of $39.1 million in other comprehensive income driven by a decline
in unrealized gains on investment securities available-for-sale,
purchases of $50.0 million in treasury stock, and $19.0 million in
cash dividends.
Tangible common shareholders’ equity(1) was $2.1 billion at
September 30, 2021, essentially unchanged from June 30, 2021 and up
$130.3 million or 6.7% from September 30, 2020. The linked quarter
increase resulted from the same factors noted above.
- Total shareholders’ equity to total assets and tangible equity
to tangible assets were 11.0% and 10.5%, respectively, at September
30, 2021, compared to 11.8% and 11.2%, respectively, at June 30,
2021, and 11.3% and 10.6%, respectively, at September 30,
2020.
- Tangible book value per share(1) was $16.91 as of September 30,
2021, an increase of $0.19 or 1.1% from $16.72 as of June 30, 2021,
and an increase of $1.51 or 9.8% from $15.40 as of September 30,
2020.
- Total shares outstanding at September 30, 2021 were 122.4
million, down from 124.8 million due to share repurchase activity
during the quarter.
Quarter end regulatory capital ratios remained robust during the
quarter as follows:
9/30/2021
6/30/2021
9/30/2020
Common equity Tier 1 capital
14.5%
14.7%
12.0%
Tier 1 leverage capital
11.3%
11.4%
9.9%
Tier 1 risk-based capital
14.5%
14.7%
12.0%
Total risk-based capital
16.6%
17.0%
14.7%
Asset Quality:
Credit quality metrics during the third quarter of 2021
reflected notable improvements including net recoveries and
declines in nonperforming and criticized loan balances.
- Net charge-offs (recoveries) for the third quarter of 2021 were
($0.4) million or (0.01%) annualized of average loans compared to
$8.7 million or 0.29% annualized and $19.9 million or 0.58%
annualized for the quarters ended June 30, 2021 and September 30,
2020, respectively. The current quarter net recoveries included
charge-offs of $3.0 million in Energy, $1.1 million in CRE, and
$0.7 million in general C&I as well as recoveries of $2.7
million in general C&I and $2.3 million in CRE.
- Provision for credit losses was a release of ($28.4) million
for the third quarter of 2021 as compared to a release of ($51.9)
million for the second quarter of 2021 and a provision expense of
$33.0 million for the third quarter of 2020. The current quarter’s
release was driven by improved economic conditions and forecasts,
as well as continued improvements in overall credit including
significant reductions in nonperforming and criticized loans. The
third quarter 2021 provision release included $20.9 million release
in the CRE segment and $7.0 million release in the C&I
segment.
- The ACL was $219.6 million or 1.91% of total loans as of
September 30, 2021, as compared to $247.7 million or 2.13% of total
loans as of June 30, 2021 and $385.4 million or 2.86% of total
loans as of September 30, 2020. Excluding PPP loans, the ACL was
1.92% of total loans at September 30, 2021, down from 2.17% at June
30, 2021.
- Total nonperforming loans (“NPL”) totaled $100.4 million,
$122.5 million, and $189.1 million as of September 30, 2021, June
30, 2021, and September 30, 2020, respectively. As a percent of
total loans, NPL were 0.87% at September 30, 2021, compared to
1.05% at June 30, 2021 and 1.40% at September 30, 2020.
- The ACL to NPL was 218.6% as of September 30, 2021, as compared
to 202.2% as of June 30, 2021 and 203.8% as of September 30,
2020.
- Total criticized loans at September 30, 2021 were $475.9
million or 4.1% of total loans, down from $667.9 million or 5.7% at
June 30, 2021 and $1.1 billion or 8.1% at September 30, 2020. The
linked quarter decrease included declines of $65.2 million or 67.3%
in Restaurant, $57.1 million or 35.9% in Energy, and $55.9 million
or 30.7% in CRE which included $26.2 million or 28.3% in
Hospitality-CRE.
- Loans 30-89 days past due were 0.20% of total loans at
September 30, 2021, compared to 0.36% at June 30, 2021 and 0.15% at
September 30, 2020.
Total Revenue:
Total operating revenue(1) for the third quarter of 2021 was
$198.2 million, up $13.2 million or 7.1% from the second quarter of
2021 and up $11.6 million or 6.2% from the third quarter of 2020.
Total adjusted operating revenue for the third quarter of 2021 was
$182.5 million, down $2.5 million or 1.4% from the second quarter
of 2021 and down $4.6 million or 2.5% from the third quarter of
2020.
Net interest income for the third quarter of 2021 was
$136.1 million, a decrease of $2.4 million or 1.7% from the second
quarter of 2021 and a decrease of $17.9 million or 11.6% from the
third quarter of 2020.
- Compared to the linked quarter, the net interest income
declines were driven by declines in hedge income and PPP loan
income of $4.1 million and $2.7 million, respectively. These
declines were partially offset by net securities purchases
increasing average earning assets, $1.3 million in number of days
and $1.8 million in decreased interest expense resulting from lower
funding costs.
- Compared to the prior year, the net interest income decline
included $11.6 million in lower hedge income, $5.0 million in lower
PPP loan income, $0.6 million in lower accretion, and $9.3 million
in lower interest income due to a mix shift from higher yielding
loans to lower yielding investment securities as well as declining
yields, partially offset by $8.8 million in lower funding costs due
to a 55% reduction in cost of funds, supported by improved mix and
debt payoffs.
Our net interest margin (“NIM”) for the third quarter of 2021
was 2.99% as compared to 3.10% for the linked quarter and 3.49% for
the third quarter of 2020. The linked quarter NIM decline was due
to lower PPP loan income and lower hedge income contributing 8
basis points and 6 basis points of the decline, respectively, with
earning asset yield declines materially offset by increases in
earning assets and lower funding costs.
- Our total funding costs continued to decline in the quarter,
down $1.8 million to 0.18% compared to 0.23% in the prior quarter.
Total deposit costs declined by three basis points to 0.12% for the
current quarter compared to 0.15% for the linked quarter, and total
interest-bearing liability costs declined by eight basis points to
0.28% from 0.36% in the linked quarter. Average interest-bearing
liabilities increased by $156.9 million or 1.5% from the prior
quarter to $10.8 billion, and average noninterest-bearing deposits
remained stable at $5.7 billion.
- Yield on loans excluding accretion and hedge income was 3.80%
in the current quarter, down three basis points from 3.83% in the
linked quarter. Excluding the impact of PPP loans, this yield was
3.81% in the current quarter, down from 3.86% for the linked
quarter. Average loans excluding PPP loans declined slightly by
$10.7 million or 0.1% from the prior quarter to $11.5 billion.
- PPP loans averaged $131.7 million in the current quarter with a
yield of 3.38%, down from $619.3 million in the linked
quarter.
- Hedge income including collar gain recognition for the third
quarter of 2021 was $8.1 million as compared to $10.8 million for
the prior quarter.
- Accretion on acquired loans totaled $5.8 million for the third
quarter of 2021 as compared to $4.5 million for the prior
quarter.
- Yield on investment securities declined to 1.60% in the current
quarter compared to 1.62% in linked quarter, with the lower yield
reflecting the impact of securities purchased and sold in the
current and prior quarters. Average investment securities increased
by $365.3 million or 9.1% from the prior quarter to $4.4
billion.
- Total earning asset yields declined to 3.16% in the current
quarter compared to 3.31% in the linked quarter, with average
balances increasing slightly to $18.1 billion.
Noninterest income for the third quarter of 2021 was
$62.1 million, an increase of $15.6 million or 33.6% from the
linked quarter, and an increase of $29.5 million or 90.6% from the
same period of 2020. Adjusted noninterest income(1) for the third
quarter of 2021 was $46.4 million, a decrease of $0.1 million or
0.2% from the linked quarter, and an increase of $13.3 million or
40.0% from the third quarter of 2020. Adjusted noninterest income
excludes net gains on securities and branch building sales.
- The linked quarter increase was driven by increases of $15.7
million in securities gains and $3.6 million in earnings from
alternative investments. These items were partially offset by
decreases of $1.3 million and $2.0 million in credit related fees
and SBA income, respectively. The increase in securities gains was
related to the sale of approximately $505 million in securities
related to balance sheet positioning in contemplation for our
upcoming merger with BancorpSouth Bank.
- The increase from the prior year was driven by increases of
$15.7 million in securities gain, $9.2 million in earnings from
alternative investments, $2.0 million in service charges on
deposits and $1.2 million in investment advisory fees. These
increases were partially mitigated by a decrease of $2.1 million in
mortgage banking income.
- Adjusted noninterest income as a percent of adjusted total
revenue for the third quarter of 2021 increased to 25.4% as
compared to 25.1% for the linked quarter and 17.7% for the third
quarter of 2020.
Noninterest expense for the third quarter of 2021 was
$117.2 million, compared to $106.1 million for the linked quarter
and compared to $94.9 million for the same period of 2020. Adjusted
noninterest expense(1), which excludes the impact of non-routine
items(2), was $103.1 million, up $3.3 million or 3.3% from the
linked quarter and up $10.6 million or 11.4% from the third quarter
of 2020.
- Non-routine items in the third quarter of 2021 included $9.9
million in expenses related to regulatory settlements announced
during the quarter and $4.2 million in merger related
expenses.
- The linked quarter increase in noninterest expenses resulted
primarily from the non-routine regulatory settlement expense and a
$2.2 million increase in compensation expense driven by increased
incentive accruals, partially offset by a $2.1 million decline in
non-routine merger related expenses.
- The increase from the prior year was attributable to increased
incentive accruals of $7.5 million related to improved company
performance and $9.9 million expenses related to regulatory
settlements.
Adjusted efficiency ratio(1) for the third quarter of
2021 was 56.5%, compared to the linked quarter ratio of 53.9% and
the prior year’s third quarter ratio of 49.4%.
Taxes:
The effective tax rate for the third quarter of 2021 was 23.3%
compared to 22.6% for the linked quarter and 16.1% for the third
quarter of 2020.
Merger with BancorpSouth
Bank
BancorpSouth Bank recently received all required regulatory
approvals to complete the pending merger with Cadence
Bancorporation. Subject to the satisfaction of all closing
conditions, the merger is expected to close effective October 29,
2021.
Supplementary Financial Tables
(Unaudited):
Supplementary financial tables (unaudited) are included in this
release following the customary disclosure information.
_______________
(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.
About Cadence
Bancorporation:
Cadence Bancorporation (NYSE: CADE), headquartered in Houston,
Texas, is a regional financial holding company with $19.8 billion
in total assets as of September 30, 2021. Its wholly owned
subsidiary, Cadence Bank, N.A., operates 99 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
approximately 1,800 associates is committed to exceeding customer
expectations and helping their clients succeed financially.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this communication may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended with respect to
BancorpSouth Bank’s and Cadence Bancorporation’s and Cadence Bank’s
(together, “Cadence”) beliefs, plans, goals, expectations, and
estimates. Forward-looking statements are not a representation of
historical information but instead pertain to future operations,
strategies, financial results or other developments. These
forward-looking statements may be identified by their reference to
a future period or periods or by the use of forward-looking
terminology such as “anticipate,” “believe,” “could,” “continue,”
“seek,” “intend,” “estimate,” “expect,” “foresee,” “hope,”
“intend,” “may,” “might,” “plan,” “should,” “predict,” “project,”
“goal,” “outlook,” “potential,” “will,” “will result,” “will likely
result,” or “would” or future or conditional verb tenses and
variations or negatives of such terms. These forward-looking
statements include, without limitation, those relating to the
terms, timing and closing of the proposed transaction.
Cadence cautions readers not to place undue reliance on the
forward-looking statements contained in this communication, in that
actual results could differ materially from those indicated in such
forward-looking statements as a result of a variety of factors,
many of which are beyond the control of BancorpSouth Bank and
Cadence. The factors that could cause actual results to differ
materially include the following: the occurrence of any event,
change or other circumstances that could give rise to the right of
one or both of the parties to terminate the definitive merger
agreement between BancorpSouth Bank and Cadence; the outcome of any
legal proceedings that have been or may be instituted against
BancorpSouth Bank or Cadence; the possibility that the proposed
transaction will not close when expected or at all because required
regulatory, shareholder or other approvals are not received or
other conditions to the closing are not satisfied on a timely basis
or at all, or are obtained subject to conditions that are not
anticipated; the ability of BancorpSouth Bank and Cadence to meet
expectations regarding the timing, completion and accounting and
tax treatments of the proposed transaction; the risk that any
announcements relating to the proposed transaction could have
adverse effects on the market price of the common stock of either
or both parties to the proposed transaction; the possibility that
the anticipated benefits of the proposed transaction will not be
realized when expected or at all, including as a result of the
impact of, or problems arising from, the integration of the two
companies or as a result of the strength of the economy and
competitive factors in the areas where BancorpSouth Bank and
Cadence do business; certain restrictions during the pendency of
the proposed transaction that may impact the parties’ ability to
pursue certain business opportunities or strategic transactions;
the possibility that the transaction may be more expensive to
complete than anticipated, including as a result of unexpected
factors or events; diversion of management’s attention from ongoing
business operations and opportunities; the possibility that the
parties may be unable to achieve expected synergies and operating
efficiencies in the merger within the expected timeframes or at all
and to successfully integrate Cadence’s operations and those of
BancorpSouth Bank; such integration may be more difficult, time
consuming or costly than expected; revenues following the proposed
transaction may be lower than expected; potential adverse reactions
or changes to business or employee relationships, including those
resulting from the announcement or completion of the proposed
transaction; BancorpSouth Bank and Cadence’s success in executing
their respective business plans and strategies and managing the
risks involved in the foregoing; the dilution caused by
BancorpSouth Bank’s issuance of additional shares of its capital
stock in connection with the proposed transaction; business and
economic conditions generally and in the financial services
industry, nationally and within Cadence’s current and future
geographic market areas; economic, market, operational, liquidity,
credit and interest rate risks associated with Cadence’s business;
deteriorating asset quality and higher loan charge-offs; the laws
and regulations applicable to Cadence’s business; Cadence’s 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; Cadence’s ability to
maintain its historical earnings trends; Cadence’s ability to raise
additional capital to implement its business plan; material
weaknesses in Cadence’s internal control over financial reporting;
systems failures or interruptions involving Cadence’s information
technology and telecommunications systems or third-party servicers;
the composition of Cadence’s management team and its 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 Cadence’s loan portfolio,
including the identity of Cadence’s borrowers and the concentration
of loans in energy-related industries and in its specialized
industries; the portion of Cadence’s loan portfolio that is
comprised of participations and shared national credits; the amount
of nonperforming and classified assets Cadence holds; the extent of
the impact of the COVID-19 pandemic on Cadence and its customers,
counterparties, employees and third-party service providers, and
the impacts to Cadence’s business, financial position, results of
operations, and prospects; and other factors that may affect future
results of BancorpSouth Bank and Cadence; and the other factors
discussed in “Risk Factors” in BancorpSouth Bank’s Annual Report on
Form 10-K for the year ended December 31, 2020, BancorpSouth Bank’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2021
and BancorpSouth Bank’s other filings with the Federal Deposit
Insurance Corporation (the “FDIC”), which are available at
https://www.fdic.gov/ and in the
“Investor Relations” section of BancorpSouth Bank’s website,
https://www.bancorpsouth.com/, under
the heading “Public Filings,” and in Cadence’s Annual Report on
Form 10-K for the year ended December 31, 2020, Cadence’s Quarterly
Report on Form 10-Q for the quarter ended June 30, 2021 and in
Cadence’s other filings with the U.S. Securities and Exchange
Commission (the “SEC”), which are available at http://www.sec.gov and in the “Investor Relations”
section of Cadence’s website, https://cadencebancorporation.com/, under the
heading “SEC Filings.” BancorpSouth Bank and Cadence assume no
obligation to update the information in this communication, except
as otherwise required by law.
About Non-GAAP Financial Measures
Certain of the financial measures and ratios Cadence presents,
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). Cadence refers to
these financial measures and ratios as “non-GAAP financial
measures.” Cadence considers 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. Cadence believes that these non-GAAP financial
measures provide meaningful supplemental information regarding its
performance by excluding certain expenditures or assets that
Cadence believes are not indicative of its primary business
operating results or by presenting certain metrics on a fully
taxable equivalent basis.
Cadence believes that management and investors benefit from
referring to these non-GAAP financial measures in assessing its
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 Cadence’s performance.
The non-GAAP financial measures Cadence presents may differ from
non-GAAP financial measures used by its peers or other companies.
Cadence compensates for these limitations by providing the
equivalent GAAP measures whenever it presents 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 Cadence’s 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)
3Q 2021
2Q 2021
1Q 2021
4Q 2020
3Q 2020
Income Statement Data
Interest income
$
143,784
$
148,029
$
154,701
$
170,739
$
170,497
Interest expense
7,658
9,488
11,953
13,998
16,455
Net interest income
136,126
138,541
142,748
156,741
154,042
Provision (release) for credit losses
(28,407
)
(51,876
)
(48,262
)
2,835
32,973
Net interest income after provision
(release)
164,533
190,417
191,010
153,906
121,069
Noninterest income (1)
62,112
46,474
43,696
209,745
32,591
Noninterest expense
117,187
106,066
97,822
105,331
94,859
Income before income taxes
109,458
130,825
136,884
258,320
58,801
Income tax expense
25,472
29,516
30,459
57,737
9,486
Net income
$
83,986
$
101,309
$
106,425
$
200,583
$
49,315
Weighted average common shares
outstanding
Basic
123,840,090
124,732,617
125,079,250
125,973,736
125,956,714
Diluted
124,598,096
125,548,794
125,621,508
126,408,959
126,094,868
Earnings per share
Basic
$
0.67
$
0.81
$
0.85
$
1.58
$
0.39
Diluted
0.67
0.80
0.84
1.57
0.39
Period-End Balance Sheet Data
Cash and cash equivalents
$
3,426,831
$
2,100,099
$
1,888,518
$
2,053,946
$
1,247,172
Investment securities
4,003,138
4,277,448
3,918,666
3,332,168
3,088,699
Total loans, net of unearned income
11,498,228
11,634,502
12,365,334
12,719,129
13,465,556
Allowance for credit losses
219,607
247,732
308,037
367,160
385,412
Total assets
19,754,467
18,692,623
18,800,350
18,712,567
18,404,195
Total deposits
17,138,087
15,983,808
16,129,199
16,052,245
15,786,221
Noninterest-bearing deposits
6,322,646
5,670,234
5,556,217
5,033,748
5,033,338
Interest-bearing deposits
10,815,441
10,313,574
10,572,982
11,018,497
10,752,883
Borrowings and subordinated debentures
182,838
282,688
332,984
372,669
372,446
Total shareholders’ equity
2,182,088
2,202,738
2,092,536
2,121,102
2,071,472
Average Balance Sheet Data
Cash and cash equivalents
$
2,243,526
$
1,973,893
$
2,195,037
$
1,395,089
$
1,112,258
Investment securities
4,383,864
4,018,601
3,446,172
3,201,722
2,960,357
Total loans, net of unearned income
11,644,822
12,143,148
12,651,585
13,238,440
13,652,395
Allowance for credit losses
248,464
308,076
370,736
393,306
389,243
Total assets
18,963,484
18,697,625
18,837,133
18,354,046
18,248,014
Total deposits
16,273,861
16,051,226
16,200,631
15,736,884
15,628,314
Noninterest-bearing deposits
5,722,202
5,726,273
5,356,120
5,245,478
4,892,079
Interest-bearing deposits
10,551,659
10,324,953
10,844,511
10,491,406
10,736,235
Borrowings and subordinated debentures
260,136
329,976
363,046
372,920
372,304
Total shareholders’ equity
2,199,977
2,114,127
2,085,712
2,072,030
2,052,079
(1)
The 4Q 2020 includes hedge revenue of
$169.2 million, $129.5 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)
3Q 2021
2Q 2021
1Q 2021
4Q 2020
3Q 2020
Per Share Data:
Book value
$
17.83
$
17.66
$
16.78
$
16.84
$
16.45
Tangible book value (1)
16.91
16.72
15.80
15.83
15.40
Cash dividends declared
0.150
0.150
0.150
0.075
0.050
Dividend payout ratio
22.39
%
18.52
%
17.65
%
4.75
%
12.82
%
Performance Ratios:
Return on average common equity (2)
15.15
%
19.22
%
20.69
%
38.51
%
9.56
%
Return on average tangible common equity
(1) (2)
16.66
21.12
22.80
41.90
11.08
Return on average assets (2)
1.76
2.17
2.29
4.35
1.08
Net interest margin (2)
2.99
3.10
3.22
3.54
3.49
Efficiency ratio (1)
59.11
57.33
52.47
28.74
50.83
Adjusted efficiency ratio (1)
56.48
53.94
53.11
28.79
49.45
Asset Quality Ratios:
Total NPA to total loans, OREO, and other
NPA
1.00
%
1.20
%
1.15
%
1.24
%
1.55
%
Total nonperforming loans ("NPL") to total
loans
0.87
1.05
1.00
1.08
1.40
Total ACL to total loans
1.91
2.13
2.49
2.89
2.86
ACL to total NPL
218.63
202.20
249.70
266.05
203.82
Net charge-offs to average loans (2)
(0.01
)
0.29
0.39
0.64
0.58
Capital Ratios:
Total shareholders’ equity to assets
11.0
%
11.8
%
11.1
%
11.3
%
11.3
%
Tangible common equity to tangible assets
(1)
10.5
11.2
10.6
10.7
10.6
Common equity Tier 1 capital (3)
14.5
14.7
14.2
14.0
12.0
Tier 1 leverage capital (3)
11.3
11.4
10.9
10.9
9.9
Tier 1 risk-based capital (3)
14.5
14.7
14.2
14.0
12.0
Total risk-based capital (3)
16.6
17.0
16.7
16.7
14.7
(1)
Considered a non-GAAP financial measure.
See Table 10 "Reconciliation of Non-GAAP Financial Measures" for a
reconciliation of our non-GAAP measures to the most directly
comparable GAAP financial measure.
(2)
Annualized.
(3)
Current quarter regulatory capital ratios
are estimates.
Table 2 – Average
Balances/Yield/Rates
For the Three Months Ended
September 30,
2021
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
$
9,933,466
$
102,246
4.08
%
$
11,168,913
$
123,177
4.39
%
ANCI portfolio
1,575,138
19,626
4.94
2,295,097
28,214
4.89
PCD portfolio
136,218
3,665
10.67
188,385
3,460
7.31
Total loans
11,644,822
125,537
4.28
13,652,395
154,851
4.51
Investment securities
Taxable
4,040,187
15,047
1.48
2,694,012
13,164
1.94
Tax-exempt (2)
343,677
2,669
3.08
266,345
2,150
3.21
Total investment securities
4,383,864
17,716
1.60
2,960,357
15,314
2.06
Federal funds sold and short-term
investments
2,012,073
824
0.16
942,017
432
0.18
Other investments
69,090
267
1.53
77,262
350
1.80
Total interest-earning assets
18,109,849
144,344
3.16
17,632,031
170,947
3.86
Noninterest-earning assets:
Cash and due from banks
231,453
170,241
Premises and equipment
128,213
127,432
Accrued interest and other assets
742,433
707,553
Allowance for credit losses
(248,464
)
(389,243
)
Total assets
$
18,963,484
$
18,248,014
LIABILITIES AND SHAREHOLDERS'
EQUITY
Interest-bearing liabilities:
Demand deposits
$
8,302,457
$
2,598
0.12
%
$
8,037,801
$
4,682
0.23
%
Savings deposits
402,023
61
0.06
319,004
140
0.17
Time deposits
1,847,179
2,313
0.50
2,379,430
7,741
1.29
Total interest-bearing deposits
10,551,659
4,972
0.19
10,736,235
12,563
0.47
Other borrowings
77,174
176
0.90
149,973
931
2.47
Subordinated debentures
182,962
2,510
5.44
222,331
2,961
5.30
Total interest-bearing liabilities
10,811,795
7,658
0.28
11,108,539
16,455
0.59
Noninterest-bearing
liabilities:
Demand deposits
5,722,202
4,892,079
Accrued interest and other liabilities
229,510
195,317
Total liabilities
16,763,507
16,195,935
Shareholders' equity
2,199,977
2,052,079
Total liabilities and shareholders'
equity
$
18,963,484
$
18,248,014
Net interest income/net interest
spread
136,686
2.88
%
154,492
3.27
%
Net yield on earning assets/net interest
margin
2.99
%
3.49
%
Taxable equivalent adjustment:
Investment securities
(560
)
(451
)
Net interest income
$
136,126
$
154,041
(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 federal income tax rate
of 21%.
Table 2 (Continued) – Average
Balances/Yield/Rates
For the Three Months
Ended
September 30, 2021
June 30, 2021
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
$
9,933,466
$
102,246
4.08
%
$
10,256,387
$
107,760
4.21
%
ANCI portfolio
1,575,138
19,626
4.94
1,737,494
20,660
4.77
PCD portfolio
136,218
3,665
10.67
149,267
2,858
7.68
Total loans
11,644,822
125,537
4.28
12,143,148
131,278
4.34
Investment securities
Taxable
4,040,187
15,047
1.48
3,681,937
13,551
1.48
Tax-exempt (2)
343,677
2,669
3.08
336,664
2,644
3.15
Total investment securities
4,383,864
17,716
1.60
4,018,601
16,195
1.62
Federal funds sold and short-term
investments
2,012,073
824
0.16
1,755,586
681
0.16
Other investments
69,090
267
1.53
69,873
431
2.47
Total interest-earning assets
18,109,849
144,344
3.16
17,987,208
148,585
3.31
Noninterest-earning assets:
Cash and due from banks
231,453
218,307
Premises and equipment
128,213
124,893
Accrued interest and other assets
742,433
675,293
Allowance for credit losses
(248,464
)
(308,076
)
Total assets
$
18,963,484
$
18,697,625
LIABILITIES AND SHAREHOLDERS'
EQUITY
Interest-bearing liabilities:
Demand deposits
$
8,302,457
$
2,598
0.12
%
$
7,933,078
$
2,952
0.15
%
Savings deposits
402,023
61
0.06
400,955
83
0.08
Time deposits
1,847,179
2,313
0.50
1,990,920
3,008
0.61
Total interest-bearing deposits
10,551,659
4,972
0.19
10,324,953
6,043
0.23
Other borrowings
77,174
176
0.90
146,701
924
2.53
Subordinated debentures
182,962
2,510
5.44
183,275
2,521
5.52
Total interest-bearing liabilities
10,811,795
7,658
0.28
10,654,929
9,488
0.36
Noninterest-bearing
liabilities:
Demand deposits
5,722,202
5,726,273
Accrued interest and other liabilities
229,510
202,296
Total liabilities
16,763,507
16,583,498
Shareholders' equity
2,199,977
2,114,127
Total liabilities and shareholders'
equity
$
18,963,484
$
18,697,625
Net interest income/net interest
spread
136,686
2.88
%
139,097
2.96
%
Net yield on earning assets/net interest
margin
2.99
%
3.10
%
Taxable equivalent adjustment:
Investment securities
(560
)
(556
)
Net interest income
$
136,126
$
138,541
_______________
(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 federal income tax rate
of 21%.
Table 3 – Loan Interest Income
Detail
YTD
For the Quarters,
(In thousands)
September 30, 2021
3Q 2021
2Q 2021
1Q 2021
4Q 2020
3Q 2020
Interest Income Detail
Originated loans
$
323,741
$
102,246
$
107,760
$
113,735
$
125,535
$
123,177
ANCI loans: interest income
49,522
15,020
16,670
17,832
20,507
22,850
ANCI loans: accretion
13,475
4,606
3,990
4,879
5,436
5,364
PCD loans: interest income
7,278
2,472
2,372
2,433
3,355
2,421
PCD loans: accretion
2,624
1,193
486
945
465
1,039
Total loan interest income
$
396,639
$
125,537
$
131,278
$
139,824
$
155,298
$
154,851
Yields
Originated loans
4.22
%
4.08
%
4.21
%
4.35
%
4.57
%
4.39
%
ANCI loans without discount accretion
3.83
3.78
3.85
3.85
3.84
3.96
ANCI loans discount accretion
1.04
1.16
0.92
1.05
1.01
0.93
PCD loans without discount accretion
6.55
7.20
6.37
6.15
7.73
5.11
PCD loans discount accretion
2.36
3.47
1.31
2.39
1.08
2.20
Total loan yield
4.37
%
4.28
%
4.34
%
4.48
%
4.67
%
4.51
%
Table 4 – Allowance for Credit
Losses (“ACL”) (1)
For the Three Months
Ended
(In thousands)
3Q 2021
2Q 2021
1Q 2021
4Q 2020
3Q 2020
Balance at beginning of period
$
247,732
$
308,037
$
367,160
$
385,412
$
370,901
Charge-offs
(5,319
)
(11,265
)
(14,671
)
(23,956
)
(21,830
)
Recoveries
5,746
2,541
2,563
2,770
1,936
Net (charge-offs) recoveries
427
(8,724
)
(12,108
)
(21,186
)
(19,894
)
Provision (release) for loan losses
(28,552
)
(51,581
)
(47,015
)
2,934
34,405
Balance at end of period
$
219,607
$
247,732
$
308,037
$
367,160
$
385,412
(1)
This table represents the activity in the
ACL for funded loans.
Table 5 – ACL Activity by
Segment
For the Three Months Ended
September 30, 2021
(In thousands)
Commercial and
Industrial
Commercial Real Estate
Consumer
Total Allowance for Credit
Losses
Reserve for Unfunded
Commitments (1)
Total
As of June 30, 2021
$
131,309
$
85,915
$
30,508
$
247,732
$
754
$
248,486
Provision (release) for credit losses
(7,025
)
(20,933
)
(594
)
(28,552
)
145
(28,407
)
Charge-offs
(3,899
)
(1,107
)
(313
)
(5,319
)
—
(5,319
)
Recoveries
3,323
2,262
161
5,746
—
5,746
As of September 30, 2021
$
123,708
$
66,137
$
29,762
$
219,607
$
899
$
220,506
For the Nine Months Ended
September 30, 2021
(In thousands)
Commercial and
Industrial
Commercial Real Estate
Consumer
Total Allowance for Credit
Losses
Reserve for Unfunded
Commitments (1)
Total
As of December 31, 2020
$
187,365
$
141,187
$
38,608
$
367,160
$
2,296
$
369,456
Provision (release) for credit losses
(42,220
)
(76,298
)
(8,630
)
(127,148
)
(1,397
)
(128,545
)
Charge-offs
(28,241
)
(2,325
)
(688
)
(31,254
)
—
(31,254
)
Recoveries
6,804
3,573
472
10,849
—
10,849
As of September 30, 2021
$
123,708
$
66,137
$
29,762
$
219,607
$
899
$
220,506
(1)
The reserve for unfunded commitments is
recorded in other liabilities in the consolidated balance
sheets.
Table 6 – Criticized Loans by
Segment
As of September 30, 2021
(1)
(Amortized cost in thousands)
Special Mention
Substandard
Doubtful
Total Criticized
Commercial and industrial
General C&I
$
80,086
$
101,587
$
9,004
$
190,677
Energy
33,095
61,848
7,060
102,003
Restaurant
8,087
21,692
1,949
31,728
Healthcare
6,868
2,493
—
9,361
Total commercial and industrial
128,136
187,620
18,013
333,769
Commercial real estate
Industrial, retail, and other
12,981
36,189
—
49,170
Hospitality
16,014
50,400
—
66,414
Multifamily
89
—
—
89
Office
10,689
—
—
10,689
Total commercial real estate
39,773
86,589
—
126,362
Consumer
Residential
—
15,667
—
15,667
Other
—
60
—
60
Total consumer
—
15,727
—
15,727
Total
$
167,909
$
289,936
$
18,013
$
475,858
(1) Criticized loans do not include loans
held for sale of less than $0.1 million.
As of June 30, 2021
(1)
(Amortized cost in thousands)
Special Mention
Substandard
Doubtful
Total Criticized
Commercial and industrial
General C&I
$
88,877
$
98,360
$
10,849
$
198,086
Energy
53,829
98,157
7,141
159,127
Restaurant
33,374
59,578
4,000
96,952
Healthcare
1,782
14,862
—
16,644
Total commercial and industrial
177,862
270,957
21,990
470,809
Commercial real estate
Industrial, retail, and other
18,460
39,211
—
57,671
Hospitality
24,267
68,324
—
92,591
Multifamily
10,409
1,411
—
11,820
Office
11,034
9,142
—
20,176
Total commercial real estate
64,170
118,088
—
182,258
Consumer
Residential
—
14,803
—
14,803
Other
—
21
—
21
Total consumer
—
14,824
—
14,824
Total
$
242,032
$
403,869
$
21,990
$
667,891
(1) Criticized loans do not include loans
held for sale of $0.2 million.
Table 7 – Nonperforming Assets
As of
(In thousands)
3Q 2021
2Q 2021
1Q 2021
4Q 2020
3Q 2020
Nonperforming loans (1)
Commercial and industrial
$
79,046
$
92,257
$
94,153
$
109,410
$
145,991
Commercial real estate
6,425
14,557
14,846
14,559
26,742
Consumer
14,976
15,703
14,364
14,033
16,364
Total nonperforming loans ("NPL")
100,447
122,517
123,363
138,002
189,097
Foreclosed OREO and other NPA
20,399
17,613
19,125
19,788
20,344
Total nonperforming assets
$
120,846
$
140,130
$
142,488
$
157,790
$
209,441
NPL as a percentage of total loans
0.87
%
1.05
%
1.00
%
1.08
%
1.40
%
NPA as a percentage of loans plus
OREO/other
1.05
%
1.20
%
1.15
%
1.24
%
1.55
%
NPA as a percentage of total assets
0.61
%
0.75
%
0.76
%
0.84
%
1.14
%
Total accruing loans 90 days or more past
due
$
3,906
$
988
$
1,399
$
13,880
$
7,260
(1)
Nonperforming loans do not include
nonperforming loans held for sale of $3.4 million and $0.2 million
at March 31, 2021 and December 31, 2020, respectively.
Table 8 – Noninterest
Income
For the Three Months
Ended
(In thousands)
3Q 2021
2Q 2021
1Q 2021
4Q 2020
3Q 2020
Noninterest Income
Hedge revenue
$
—
$
—
$
—
$
169,248
$
—
Investment advisory revenue
8,007
8,222
7,609
7,457
6,797
Trust services revenue
5,317
4,888
5,509
4,885
4,556
Service charges on deposit accounts
7,815
7,228
6,404
6,028
5,847
Mortgage banking income
1,387
1,587
2,115
3,062
3,535
Credit-related fees
4,134
5,477
3,849
4,766
4,202
Bankcard fees
1,695
1,919
1,753
1,775
1,745
Payroll processing revenue
1,377
1,258
1,490
1,309
1,255
SBA income
3,813
5,810
3,967
2,889
3,037
Other service fees
1,841
1,963
2,209
1,751
1,450
Securities gains, net
15,757
11
2,259
1,353
79
Other
10,969
8,111
6,532
5,222
88
Total noninterest income
$
62,112
$
46,474
$
43,696
$
209,745
$
32,591
Table 9 – Noninterest
Expenses
For the Three Months
Ended
(In thousands)
3Q 2021
2Q 2021
1Q 2021
4Q 2020
3Q 2020
Noninterest Expenses
Salaries and employee benefits
$
60,818
$
58,619
$
57,070
$
59,833
$
51,734
Premises and equipment
11,054
10,709
10,374
11,036
10,716
Merger related expenses
4,169
6,267
—
—
2,105
Intangible asset amortization
4,686
4,836
4,986
5,164
5,299
Data processing
3,162
3,179
3,259
3,047
3,024
Software amortization
4,931
4,950
4,507
4,480
4,432
Consulting and professional fees
3,361
3,736
3,233
3,450
3,320
Loan related expenses
674
754
796
631
953
FDIC insurance
1,537
1,656
1,465
3,007
2,528
Communications
1,092
1,281
1,243
1,175
1,119
Advertising and public relations
1,082
1,487
927
956
716
Legal expenses
703
594
925
726
681
Other(1)
19,918
7,998
9,037
11,826
8,232
Total noninterest expenses
$
117,187
$
106,066
$
97,822
$
105,331
$
94,859
(1)
3Q 2021 includes regulatory settlement of
$9.9 million.
Table 10 – Reconciliation of
Non-GAAP Financial Measures
As of and for the Three Months
Ended
(In thousands, except share and per
share data)
3Q 2021
2Q 2021
1Q 2021
4Q 2020
3Q 2020
Efficiency ratio
Noninterest expenses (numerator)
$
117,187
$
106,066
$
97,822
$
105,331
$
94,859
Net interest income
$
136,126
$
138,541
$
142,748
$
156,741
$
154,042
Noninterest income
62,112
46,474
43,696
209,745
32,591
Operating revenue (denominator)
$
198,238
$
185,015
$
186,444
$
366,486
$
186,633
Efficiency ratio
59.11
%
57.33
%
52.47
%
28.74
%
50.83
%
Adjusted efficiency ratio
Noninterest expenses
$
117,187
$
106,066
$
97,822
$
105,331
$
94,859
Less: merger related expenses
4,169
6,267
—
—
2,105
Less: regulatory settlement expenses
9,945
—
—
—
—
Less: expenses related to COVID-19
pandemic
—
—
—
215
235
Adjusted noninterest expenses
(numerator)
$
103,073
$
99,799
$
97,822
$
105,116
$
92,519
Net interest income
$
136,126
$
138,541
$
142,748
$
156,741
$
154,042
Noninterest income
62,112
46,474
43,696
209,745
32,591
Plus: impairment charge on branch
building
—
—
—
—
538
Less: securities gains, net
15,757
11
2,259
1,353
79
Adjusted noninterest income
46,355
46,463
41,437
208,392
33,050
Adjusted operating revenue
(denominator)
$
182,481
$
185,004
$
184,185
$
365,133
$
187,092
Adjusted efficiency ratio
56.48
%
53.94
%
53.11
%
28.79
%
49.45
%
Tangible common equity ratio
Shareholders’ equity
$
2,182,088
$
2,202,738
$
2,092,536
$
2,121,102
$
2,071,472
Less: goodwill and other intangible
assets, net
(112,334
)
(117,020
)
(121,856
)
(126,841
)
(132,005
)
Tangible common shareholders’ equity
2,069,754
2,085,718
1,970,680
1,994,261
1,939,467
Total assets
19,754,467
18,692,623
18,800,350
18,712,567
18,404,195
Less: goodwill and other intangible
assets, net
(112,334
)
(117,020
)
(121,856
)
(126,841
)
(132,005
)
Tangible assets
$
19,642,133
$
18,575,603
$
18,678,494
$
18,585,726
$
18,272,190
Tangible common equity ratio
10.54
%
11.23
%
10.55
%
10.73
%
10.61
%
Tangible book value per share
Shareholders’ equity
$
2,182,088
$
2,202,738
$
2,092,536
$
2,121,102
$
2,071,472
Less: goodwill and other intangible
assets, net
(112,334
)
(117,020
)
(121,856
)
(126,841
)
(132,005
)
Tangible common shareholders’ equity
$
2,069,754
$
2,085,718
$
1,970,680
$
1,994,261
$
1,939,467
Common shares outstanding
122,395,359
124,752,738
124,698,518
125,978,561
125,946,793
Tangible book value per share
$
16.91
$
16.72
$
15.80
$
15.83
$
15.40
Table 10 (Continued) –
Reconciliation of Non-GAAP Measures
As of and for the Three Months
Ended
(In thousands, except share and per
share data)
3Q 2021
2Q 2021
1Q 2021
4Q 2020
3Q 2020
Return on average tangible common
equity
Average common equity
$
2,199,977
$
2,114,127
$
2,085,712
$
2,072,030
$
2,052,079
Less: average intangible assets
(115,213
)
(120,125
)
(125,042
)
(130,146
)
(135,491
)
Average tangible common shareholders’
equity
$
2,084,764
$
1,994,002
$
1,960,670
$
1,941,884
$
1,916,588
Net income
$
83,986
$
101,309
$
106,425
$
200,583
$
49,315
Plus: intangible asset amortization, net
of tax
3,582
3,694
3,809
3,939
4,042
Tangible net income
$
87,568
$
105,003
$
110,234
$
204,522
$
53,357
Return on average tangible common
equity(1)
16.66
%
21.12
%
22.80
%
41.90
%
11.08
%
Adjusted return on average tangible
common equity
Average tangible common shareholders’
equity
$
2,084,764
$
1,994,002
$
1,960,670
$
1,941,884
$
1,916,588
Tangible net income
$
87,568
$
105,003
$
110,234
$
204,522
$
53,357
Non-routine items:
Plus: merger related expenses
4,169
6,267
—
—
2,105
Plus: regulatory settlement expenses
9,945
—
—
—
—
Plus: expenses related to COVID-19
pandemic
—
—
—
215
235
Plus: impairment loss on branch
building
—
—
—
—
538
Less: securities gains, net
15,757
11
2,259
1,353
79
Less: income tax effect of tax deductible
non-routine items
(1,094
)
1,477
(533
)
(270
)
664
Total non-routine items, after tax
(549
)
4,779
(1,726
)
(868
)
2,135
Adjusted tangible net income
$
87,019
$
109,782
$
108,508
$
203,654
$
55,492
Adjusted return on average tangible common
equity(1)
16.56
%
22.08
%
22.44
%
41.72
%
11.52
%
Adjusted return on average
assets
Average assets
$
18,963,484
$
18,697,625
$
18,837,133
$
18,354,046
$
18,248,014
Net income
$
83,986
$
101,309
$
106,425
$
200,583
$
49,315
Return on average assets
1.76
%
2.17
%
2.29
%
4.35
%
1.08
%
Net income
$
83,986
$
101,309
$
106,425
$
200,583
$
49,315
Total non-routine items, after tax
(549
)
4,779
(1,726
)
(868
)
2,135
Adjusted net income
$
83,437
$
106,088
$
104,699
$
199,715
$
51,450
Adjusted return on average assets(1)
1.75
%
2.28
%
2.25
%
4.33
%
1.12
%
Adjusted diluted earnings per
share
Diluted weighted average common shares
outstanding
124,598,096
125,548,794
125,621,508
126,408,959
126,094,868
Net income allocated to common stock
$
83,429
$
100,575
$
105,829
$
198,765
$
48,884
Total non-routine items, after tax
(549
)
4,779
(1,726
)
(868
)
2,135
Adjusted net income allocated to common
stock
$
82,880
$
105,354
$
104,103
$
197,897
$
51,019
Adjusted diluted earnings per share
$
0.67
$
0.84
$
0.83
$
1.57
$
0.40
Adjusted pre-tax, pre-provision net
revenue
Income before taxes
$
109,458
$
130,825
$
136,884
$
258,320
$
58,801
Plus: provision (reversal) for credit
losses
(28,407
)
(51,876
)
(48,262
)
2,835
32,973
Plus: total non-routine items before
taxes
(1,643
)
6,256
(2,259
)
(1,138
)
2,799
Adjusted pre-tax, pre-provision net
revenue
$
79,408
$
85,205
$
86,363
$
260,017
$
94,573
(1) Annualized.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211025005804/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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