Company Announcements

Cadence Bank Announces Second Quarter 2022 Financial Results

TUPELO, Miss. and HOUSTON , July 25, 2022 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended June 30, 2022.

Highlights for the second quarter of 2022 included (as compared to the linked quarter unless noted otherwise):

  • Achieved meaningful growth in quarterly net income available to common shareholders of $124.6 million, or $0.68 per diluted common share, and adjusted net income available to common shareholders of $134.2 million, or $0.73 per diluted common share, representing quarterly increases in earnings per diluted share of 13.3% and 12.3% respectively.
  • Reported $176.7 million in adjusted pre-tax pre-provision net revenue (PPNR), up 10.2% and improving to 1.51% of average assets on an annualized basis.
  • Continued improvement in other profitability metrics, including an adjusted return on average tangible common equity of 19.50% for the second quarter.
  • Generated net organic loan growth of $1.2 billion for the quarter, or 17.3% on an annualized basis. Year-to-date, loans have grown $1.5 billion, or 11.0% annualized. Total deposits declined $378.9 million during the quarter, but have increased $371.4 million year-to-date, or 1.9% on an annualized year-to-date basis.
  • Net interest margin improved notably to 3.06%, up 14 basis points (and up 20 basis points excluding the impact of purchase accounting accretion), driven primarily by increasing new and floating loan yields, balance sheet mix changes resulting from net loan growth and minimal increases in deposit costs.
  • Additional improvement in credit quality metrics included net recoveries of $1.4 million and an 11.4% decline in total non-performing assets; recorded a quarterly provision for credit losses of $1 million.
  • Operating efficiency continued to improve, which is reflected in a decline in the adjusted efficiency ratio to 60.5% for the second quarter compared to 63.5% for the first quarter of 2022.

"The Company's financial results for the second quarter reflect key fundamental successes across virtually all aspects of our business, highlighted by adjusted earnings of $0.73 per diluted common share," remarked Dan Rollins, Chairman and Chief Executive Officer of the Company.  "Our bankers' efforts and the strength of our footprint resulted in quarterly net loan growth across nearly all of our markets and business lines.  As expected, given the increasing rate environment, we reported considerable improvement in our net interest margin as well as meaningful growth in our net interest income.  Credit quality continues to remain exceptionally strong as evidenced by our fifth consecutive quarter of net recoveries and additional declines in total non-performing assets."      

Rollins continued, "Our results for the quarter also reflect a decline in adjusted expense which, combined with revenue growth, resulted in the adjusted efficiency ratio declining by 300 basis points to 60.5% for the quarter.  Finally, from a capital management perspective, we repurchased 1.0 million shares of Company common stock during the quarter while continuing to maintain strong regulatory capital metrics."

Earnings Summary

Year-over-year comparisons were impacted by the merger with Cadence Bank, N.A. in the fourth quarter of 2021. See "RECENT MERGER TRANSACTIONS" in this release for more information.

The Company reported net income available to common shareholders of $124.6 million, or $0.68 per diluted common share, for the second quarter of 2022, compared with net income available to common shareholders of $73.2 million, or $0.69 per diluted common share, for the second quarter of 2021 and net income available to common shareholders of $112.6 million, or $0.60 per diluted common share, for the first quarter of 2022. Adjusted net income available to common shareholders was $134.2 million, or $0.73 per diluted common share, for the second quarter of 2022, compared with $89.2 million, or $0.84 per diluted common share, for the second quarter of 2021 and $121.6 million, or $0.65 per diluted common share, for the first quarter of 2022. 

The Company reported adjusted PPNR of $176.7 million, or 1.51% of average assets on an annualized basis, for the second quarter of 2022 compared to $118.0 million, or 1.77% of average assets on an annualized basis, for the second quarter of 2021 and $160.4 million, or 1.36% of average assets on an annualized basis, for the first quarter of 2022.

The meaningful growth in adjusted net income and PPNR during the quarter was due to a 4.2% increase in net interest revenue reflecting a higher interest rate environment, loan growth and a 2.0% decrease in non-interest expense, partially offset by a 2.5% lower noninterest revenue due to movement in net MSR valuation.

Net Interest Revenue

Net interest revenue was $324.8 million for the second quarter of 2022, compared to $180.2 million for the second quarter of 2021 and $311.8 million for the first quarter of 2022, an increase of $12.9 million or 4.2% from linked quarter. The fully taxable equivalent (FTE) net interest margin was 3.06% for the second quarter of 2022, compared with 2.99% for the second quarter of 2021 and 2.92% for the first quarter of 2022.

Net interest revenue for the second quarter of 2022 included $11.7 million in accretion revenue related to acquired loans and leases, adding approximately 11 basis points to the net interest margin.  Accretion declined $6.0 million from $17.7 million for the first quarter of 2022, which added approximately 17 basis points to the first quarter 2022 net interest margin. Excluding the impact of accretion, the linked quarter net interest margin increased by 20 basis points.

The increase in net interest revenue in the second quarter of 2022 compared to the linked quarter reflected meaningful improvement in loan and securities yields as well as continued deployment of cash and cash flow from maturing securities into loan growth.  The balance sheet remains asset sensitive, with approximately 24% of loans floating (repricing within 30 days) and another 44% of loans variable as of June 30, 2022.

Yields on net loans, loans held for sale, and leases excluding accretion, were 4.12% for the second quarter of 2022, up 16 basis points from 3.96% for the first quarter of 2022, while yields on total interest earning assets were 3.29% for the second quarter of 2022, up 19 basis points from 3.10% for the first quarter of 2022. The average cost of deposits remained well managed, increasing only 2 basis points to 0.17% for the second quarter of 2022, compared with 0.15% for the first quarter of 2022. 

Balance Sheet Activity

Loans and leases, net of unearned income, continued to reflect solid growth, increasing $1.2 billion during the second quarter, or 17.3% annualized, and $1.5 billion year-to-date, or 11.0% annualized, to $28.4 billion.  Total deposits declined $378.9 million during the second quarter to $40.8 billion, but have grown $371.4 million year-to-date, or 1.9% annualized.  Loan growth for the quarter was spread across multiple geographies and portfolios including commercial and industrial, commercial real estate, community banking and residential mortgage. The decline in deposits during the quarter was due to public fund and municipal balances that increased during the first quarter and declined in the second quarter, with the segment flat on total deposits since year-end 2021.  The second quarter of 2022 ended with a loan to deposit ratio of 70.6% and securities to total assets of 28.2%, reflecting improved mix shift while maintaining continued strong balance sheet liquidity.  Noninterest bearing deposits represented 34.9% of total deposits at the end of the second quarter of 2022, relatively stable compared to 35.6% at March 31, 2022.

Provision for Credit Losses and Allowance for Credit Losses

Credit quality metrics for the second quarter of 2022 continue to improve as reflected by the fifth consecutive quarter of net recoveries as well as successive declines in total non-performing assets.  

Total non-performing assets declined $16.8 million, or 11.4%, in the second quarter from $147.7 million at March 31, 2022 to $130.8 million at June 30, 2022.  Total non-performing loans and leases were $116.4 million at June 30, 2022, or 0.41% of total net loans and leases, representing a decline of $2.8 million or 2.4%, from the March 31, 2022 balance of $119.3 million, or 0.44% of total net loans and leases. Other real estate owned and other repossessed assets also declined to $14.4 million at June 30, 2022, a decrease of $14.0 million or 49.3% from the March 31, 2022 balance of $28.4 million.

Net recoveries for the second quarter of 2022 were $1.4 million, or 0.02% of net loans and leases on an annualized basis, compared with net recoveries of $1.8 million for the second quarter of 2021 and net recoveries of $0.4 million for the first quarter of 2022. The provision for credit losses in the second quarter of 2022 was $1 million, compared with a provision for credit losses of $11.5 million for the second quarter of 2021 and no recorded provision for the first quarter of 2022.  The $11.5 million provision for the second quarter of 2021 was primarily associated with day one accounting provision requirements for loans acquired during the quarter.  The allowance for credit losses was $440.1 million, or 1.55% of net loans and leases at June 30, 2022, compared with $438.7 million, or 1.61% of net loans and leases at March 31, 2022.

Noninterest Revenue

Noninterest revenue was $125.2 million for the second quarter of 2022, compared with $101.9 million for the second quarter of 2021 and $128.4 million for the first quarter of 2022. The linked quarter decline was driven primarily by a lower mortgage servicing rights valuation adjustment, partially offset by strong credit card, debit card, and merchant fees as well as insurance commission revenue. 

While mortgage revenue has been impacted due to the rising rate environment, our broader footprint has supported continued growth in mortgage origination volume.  Second quarter of 2022 mortgage origination was $913.0 million, up from both $906.4 million for the second quarter of 2021 and $803.9 million for the first quarter of 2022.  Mortgage production and servicing revenue totaled $6.7 million for the second quarter of 2022, compared with $11.0 million for the second quarter of 2021 and $7.7 million for the first quarter of 2022.  The mortgage servicing rights valuation adjustment was $4.7 million for the second quarter of 2022, compared with a negative $1.9 million for the second quarter of 2021 and $14.0 million for the first quarter of 2022 with the variances due to increased interest rates and a higher proportion of the asset being hedged during the second quarter of 2022.  

Insurance commission revenue again reflected strong performance at $40.0 million for the second quarter of 2022, compared with $36.1 million for the second quarter of 2021 and $35.7 million for the first quarter of 2022. The insurance pricing market has remained firm and the Company continues to experience high customer retention rates.  The Company completed the acquisition of Wall 2 Wall Benefit Services, a Houston, TX based firm specializing in insurance and employee benefit services, during the second quarter of 2022.    

Credit card, debit card and merchant fee revenue was $16.6 million for the second quarter of 2022, compared with $11.3 million for the first quarter of 2022 reflecting an annual incentive payment from our card vendor as well as an annual true-up of revenue based on improved contractual revenue share in 2022. Other noninterest revenue was $16.4 million for the second quarter of 2022, compared with $19.1 million for the first quarter of 2022 due in part to a purchase accounting adjustment associated with the day one fair value of unfunded commitments acquired in the legacy Cadence transaction.  

Noninterest Expense

Noninterest expense for the second quarter of 2022 was $285.9 million, compared with $174.0 million for the second quarter of 2021 and $291.7 million for the first quarter of 2022.  Adjusted noninterest expense for the second quarter of 2022 was $271.8 million, compared with $164.0 million for the second quarter of 2021 and $281.0 million for the first quarter of 2022.  The adjusted efficiency ratio was 60.5% for the second quarter of 2022, which represents improvement compared to the 63.5% for the first quarter of 2022.  The decline in adjusted noninterest expense compared to the linked quarter included a reduction in compensation related items including payroll taxes, 401(k) match, and health insurance expense as well as intangible amortization expense as we finalized acquired intangible asset valuations.

Adjusted noninterest expense for the second quarter of 2022 excludes $13.3 million in total merger related expenses, which includes merger expense shown as a separate line item on the income statement as well as incremental merger related expenses that are included in the respective expense categories.  Merger expenses represent costs to complete the merger with no future benefit, while incremental merger related expenses represent costs to complete the merger for which the entity receives a future benefit.  Merger expense was $7.3 million for the second quarter of 2022, compared with $10.0 million for the second quarter of 2021 and $4.0 million for the first quarter of 2022.  Merger expense for the second quarter of 2022 was comprised primarily of conversion related expenses as well as compensation related items. Incremental merger related expenses for the second quarter of 2022 totaled $6.1 million compared to $6.6 million in the prior quarter and included primarily employee retention and marketing related expenses.

Capital Management

Total shareholders' equity was $4.44 billion at June 30, 2022 compared with $3.07 billion at June 30, 2021 and $4.64 billion at March 31, 2022.  The decline in the linked quarter is primarily due to a decline in Accumulated Other Comprehensive Income (Loss) ("AOCI") resulting from an increase in unrealized losses in the available-for-sale securities portfolio, driven by increases in longer-term interest rates in the quarter. 

Estimated regulatory capital ratios remain solid at June 30, 2022 including Common Equity Tier 1 capital of 10.39%, Tier 1 capital of 10.86%, Total risk-based capital of 13.05%, and Tier 1 leverage capital of 8.35%. 

During the second quarter of 2022, the Company repurchased 1.0 million shares of its common stock pursuant to its share repurchase program.  The company has 3.9 million shares remaining on its current share repurchase authorization which will expire December 30, 2022. Outstanding company shares were 182.5 million shares as of June 30, 2022, a reduction of 5.9 million shares since December 31, 2021.

Summary

Rollins concluded, "Our financial results continue to contribute to the energy and optimism around our Company, and we are reaching milestones daily toward fully integrating our two legacy companies.  Last week, we publicly revealed several additional aspects of our branding for the new Cadence Bank, which complement our new logo released earlier this year. The branding speaks to serving our customers with capabilities and opportunities resulting from two great companies coming together.  We look forward to the full rebranding of our Company during the fourth quarter upon completion of our core systems conversion. We have a lot to be excited about at Cadence Bank, with this quarter's financial performance certainly being a significant part of that."

RECENT MERGER TRANSACTION

Cadence Bancorporation (NYSE: CADE)

On October 29, 2021, the Company completed the merger with Cadence Bancorporation, the parent company of Cadence Bank N.A., (collectively referred to as legacy Cadence), pursuant to which legacy Cadence was merged with and into the Company (the Cadence Merger).  Legacy Cadence operated 99 full-service banking offices in the southeast.  As of October 29, 2021, legacy Cadence reported total assets of $18.8 billion, total loans of $11.6 billion and total deposits of $16.3 billion.  Under the terms of the definitive merger agreement, each legacy Cadence shareholder received 0.70 shares of the Company's common stock in exchange for each share of Cadence common stock they held.  In addition, legacy Cadence paid a one-time special dividend of $1.25 per share on October 28, 2021.  In connection with the closing of the Cadence merger, the Company changed its name from "BancorpSouth Bank" to "Cadence Bank" and also changed its NYSE ticker symbol from "BXS" to "CADE".  For more information regarding the Cadence Merger, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation (FDIC) on October 29, 2021 and the 2021 Annual Report Form 10-K filed with the FDIC.  Due to the Company's evaluation of post-merger activity and the extensive information gathering and management review processes required to properly record acquired assets and liabilities, the Company considers its valuations of legacy Cadence's assets and liabilities to be provisional estimates as management continues to identify and assess information regarding the nature of these assets and liabilities for the associated valuation assumptions and methodologies used.

Non-GAAP Measures and Ratios

This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP).  A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions"  beginning on page 23 of this news release.

Conference Call and Webcast

The Company will conduct a conference call to discuss its second quarter 2022 financial results on July 26, 2022, at 10:00 a.m. (Central Time).  This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing http://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.

About Cadence Bank

Cadence Bank (NYSE: CADE) is a leading regional banking franchise with approximately $50 billion in assets and more than 400 branch locations across the South, Midwest and Texas. Cadence provides consumers, businesses and corporations with a full range of innovative banking and financial solutions. Services and products include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, equipment financing, correspondent banking, SBA lending, foreign exchange, wealth management, investment and trust services, financial planning, retirement plan management, and personal and business insurance. Cadence is committed to a culture of respect, diversity and inclusion in both its workplace and communities. Cadence Bank, Member FDIC. Equal Housing Lender.

Forward-Looking Statements

Certain statements made in this news release constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the "bespeaks caution" doctrine. These statements are often, but not exclusively, made through the use of words or phrases like "assume," "believe," "budget," "contemplate," "continue," "could," "foresee," "indicate," "may," "might," "outlook," "prospect," "potential," "roadmap," "should," "target," "will," "would," the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures. Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.

Risks, uncertainties and other factors the Company may face include, without limitation: potential delays or other problems in implementing and executing the Company's growth, expansion and acquisition strategies, including delays in obtaining regulatory or other necessary approvals or the failure to realize any anticipated benefits or synergies from any acquisitions or growth strategies; general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, and investments; the risks of changes in interest rates and their effects on the level and composition of deposits, loan demand, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the ability to pay dividends or coupons on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating Rate Subordinated Notes due November 20, 2029; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; changes in legal, financial, accounting, and/or regulatory requirements; the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers. The Company also faces risks from the adverse effects of the ongoing global COVID-19 pandemic, including the effect of actions taken to mitigate its impact on individuals or the economy broadly; natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from Russia's military action in Ukraine and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.

Risks specifically related to the Cadence Merger include, but are not limited to: the possibility that the anticipated benefits of the merger 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 the combined company does business; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies within the expected timeframes, or at all, and to successfully integrate Cadence's operations and those of the Company or because such integration may be more difficult, time consuming, or costly than expected, including as a result of unexpected factors or events; the risk that revenues following the Cadence Merger may be lower than expected; the ability of the Company and Cadence to meet expectations regarding the timing, completion and accounting and tax treatments of the Cadence Merger; and the risk of potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Cadence Merger. There are also risks of adverse outcomes for any legal proceedings that may be instituted against the Company or Cadence in respect of the Cadence Merger; the risk that any announcements relating to the Cadence Merger could have adverse effects on the market price of the capital stock of the combined company; and risks arising from the dilution caused by the Company's issuance of additional shares of its capital stock in connection with the Cadence Merger and other factors as detailed from time to time in the Company's press and news releases, periodic and current reports, and other filings the Company files with the FDIC.

The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the combined company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors" and in the Company's Current Reports on Form 8-K.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.

 

Cadence Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)




Quarter Ended


Year to Date



Jun-22

Mar-22

Dec-21

Sep-21

Jun-21


Jun-22

Jun-21

Earnings Summary:










Interest revenue


$        349,555

$        331,930

$        290,626

$        199,511

$        199,129


$        681,485

$        391,912

Interest expense


24,789

20,108

19,414

17,967

18,947


44,897

38,941

Net interest revenue


324,766

311,822

271,212

181,544

180,182


636,588

352,971

Provision (release) for credit losses


1,000

-

133,562

(7,000)

11,500


1,000

11,500

Net interest revenue, after provision










   for credit losses


323,766

311,822

137,650

188,544

168,682


635,588

341,471

Noninterest revenue


125,234

128,435

103,854

84,420

101,943


253,669

189,879

Noninterest expense


285,888

291,667

289,194

179,889

173,984


577,555

329,807

Income (loss) before income taxes


163,112

148,590

(47,690)

93,075

96,641


311,702

201,543

Income tax expense (benefit)


36,154

33,643

(13,033)

20,350

21,102


69,797

44,449

Net income (loss)


$        126,958

$        114,947

$        (34,657)

$          72,725

$          75,539


$        241,905

$        157,094

Less: Preferred dividends


2,372

2,372

2,372

2,372

2,372


4,744

4,744

Net income (loss) available to common shareholders


$        124,586

$        112,575

$        (37,029)

$          70,353

$          73,167


$        237,161

$        152,350











Balance Sheet - Period End Balances










Total assets


$   47,747,708

$   47,204,061

$   47,669,751

$   28,060,496

$   27,612,365


$   47,747,708

$   27,612,365

Total earning assets


43,093,975

42,744,225

43,503,089

25,572,354

25,129,873


43,093,975

25,129,873

Total securities


13,450,621

14,371,606

15,606,470

10,053,372

9,084,111


13,450,621

9,084,111

Loans and leases, net of unearned income


28,360,485

27,189,666

26,882,988

14,991,245

15,004,039


28,360,485

15,004,039

Allowance for credit losses (ACL)


440,112

438,738

446,415

260,276

265,720


440,112

265,720

Net book value of acquired loans (included in










loans and leases above)


9,721,672

11,020,251

11,968,278

1,426,266

1,646,031


9,721,672

1,646,031

Paycheck protection program (PPP) loans 










(included in loans and leases above)


18,769

27,013

50,008

32,771

167,144


18,769

167,144

Unamortized net discount on acquired loans


65,350

72,620

77,711

9,863

13,037


65,350

13,037

Total deposits


40,189,083

40,568,055

39,817,673

23,538,711

22,838,486


40,189,083

22,838,486

Total deposits and securities sold under 










agreement to repurchase


40,838,260

41,271,615

40,504,861

24,243,834

23,521,621


40,838,260

23,521,621

Federal funds purchased and short term










FHLB advances


1,200,000

-

595,000

-

-


1,200,000

-

Long-term debt


2,380

2,514

3,742

4,082

4,189


2,380

4,189

Subordinated debt


462,693

463,181

478,669

307,776

307,601


462,693

307,601

Total shareholders' equity


4,437,925

4,643,757

5,247,987

3,023,257

3,069,574


4,437,925

3,069,574

Common shareholders' equity


4,270,932

4,476,764

5,080,994

2,856,264

2,902,581


4,270,932

2,902,581











Balance Sheet - Average Balances










Total assets


$   47,064,829

$   47,679,850

$   40,990,459

$   27,616,585

$   26,666,296


$   47,370,639

$   25,611,786

Total earning assets


42,688,497

43,515,166

37,210,403

25,220,602

24,211,759


43,099,548

23,274,984

Total securities


13,941,127

15,070,524

12,954,547

9,539,814

8,067,109


14,502,705

7,340,604

Loans and leases, net of unearned income


27,848,097

27,106,733

22,745,093

14,915,728

15,470,539


27,479,463

15,251,027

PPP loans (included in loans and leases above)


21,430

36,621

48,206

73,783

973,036


28,984

1,017,483

Total deposits


39,396,028

40,565,103

34,759,687

23,162,450

22,385,883


39,977,335

21,434,268

Total deposits and securities sold under 










agreement to repurchase


40,062,095

41,259,136

35,479,807

23,914,986

23,092,969


40,657,308

22,113,811

Federal funds purchased and short term










FHLB advances


1,294,946

131,556

7,554

8,706

3,901


716,464

2,707

Long-term debt


2,461

3,361

3,844

4,168

4,714


2,909

4,547

Subordinated debt


462,986

463,481

432,267

307,671

304,056


463,232

300,706

Total shareholders' equity


4,523,189

5,062,231

4,508,594

3,058,307

2,954,834


4,791,221

2,884,309

Common shareholders' equity


4,356,196

4,895,238

4,341,601

2,891,314

2,787,841


4,624,228

2,717,316











Nonperforming Assets:










Nonaccrual loans and leases


$          89,368

$          91,031

$        122,104

$          59,622

$          61,664


$          89,368

$          61,664

Loans and leases 90+ days past due, 










still accruing


19,682

20,957

24,784

17,012

15,386


19,682

15,386

Restructured loans and leases, still accruing


7,385

7,292

6,903

7,165

7,368


7,385

7,368

Non-performing loans (NPLs)


116,435

119,280

153,791

83,799

84,418


116,435

84,418

Other real estate owned and other repossessed










assets


14,399

28,401

33,021

16,515

17,333


14,399

17,333

Non-performing assets (NPAs)


$        130,834

$        147,681

$        186,812

$        100,314

$        101,751


$        130,834

$        101,751











 

Cadence Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)




Quarter Ended


Year to Date



Jun-22

Mar-22

Dec-21

Sep-21

Jun-21


Jun-22

Jun-21

Financial Ratios and Other Data:










Return on average assets


1.08 %

0.98 %

(0.34 %)

1.04 %

1.14 %


1.03 %

1.24 %

Adjusted return on average assets*


1.16

1.05

1.03

1.11

1.38


1.11

1.34

Return on average common shareholders' equity


11.47

9.33

(3.38)

9.65

10.53


10.34

11.31

Adjusted return on average common shareholders' equity*


12.36

10.07

9.51

10.28

12.83


11.15

12.58

Return on average tangible common equity*


18.11

13.87

(4.71)

14.85

16.08


15.81

17.24

Adjusted return on average tangible common equity*


19.50

14.98

13.24

15.80

19.61


17.05

19.18

Pre-tax pre-provision net revenue to total average assets*


1.40

1.26

0.83

1.24

1.63


1.33

1.69

Adjusted pre-tax pre-provision net revenue to total 










average assets*


1.51

1.36

1.32

1.32

1.77


1.43

1.78

Net interest margin-fully taxable equivalent


3.06

2.92

2.90

2.86

2.99


2.99

3.07

Net interest rate spread-fully taxable equivalent


2.94

2.81

2.78

2.72

2.83


2.87

2.90

Efficiency ratio-fully taxable equivalent*


63.38

66.10

76.94

67.52

61.55


64.72

60.63

Adjusted efficiency ratio-fully taxable equivalent*


60.46

63.52

63.54

65.28

58.04


61.98

58.51

Loan/deposit ratio


70.57 %

67.02 %

67.52 %

63.69 %

65.70 %


70.57 %

65.70 %

Employee FTE


6,659

6,568

6,595

4,770

4,835


6,659

4,835











Credit Quality Ratios:










Net (recoveries) charge-offs to average loans and leases (1)


(0.02 %)

(0.01 %)

(0.08 %)

(0.05 %)

(0.05 %)


(0.01 %)

0.02 %

Provision for credit losses to average loans and leases (1)


0.01

0.00

2.33

(0.19)

0.30


0.01

0.15

ACL to net loans and leases


1.55

1.61

1.66

1.74

1.77


1.55

1.77

ACL to non-performing loans and leases


377.99

367.82

290.27

310.60

314.77


377.99

314.77

Non-performing loans and leases to net loans and leases


0.41

0.44

0.57

0.56

0.56


0.41

0.56

Non-performing assets to total assets


0.27

0.31

0.39

0.36

0.37


0.27

0.37





















Equity Ratios:










Total shareholders' equity to total assets


9.29 %

9.84 %

11.01 %

10.77 %

11.12 %


9.29 %

11.12 %

Total common shareholders' equity to total assets


8.94

9.48

10.66

10.18

10.51


8.94

10.51

Tangible common shareholders' equity to tangible assets*


5.82

6.31

7.54

6.82

7.11


5.82

7.11

Tangible common shareholders' equity to tangible assets,










excluding AOCI*


7.70

7.65

7.82

7.11

7.23


7.70

7.23











Capital Adequacy:










Common  Equity Tier 1 capital (2)


10.39 %

10.57 %

11.11 %

10.73 %

10.89 %


10.39 %

10.89 %

Tier 1 capital (2)


10.86

11.05

11.61

11.63

11.80


10.86

11.80

Total capital (2)


13.05

13.27

13.86

14.27

14.50


13.05

14.50

Tier 1 leverage capital (2)


8.35

8.24

9.90

8.13

8.25


8.35

8.25





















*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 23 - 26.





(1) Annualized










(2) Current quarter regulatory capital ratios are estimated.




















 

Cadence Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)




Quarter Ended


Year to Date



Jun-22

Mar-22

Dec-21

Sep-21

Jun-21


Jun-22

Jun-21

Common Share Data:










Diluted earnings (loss) per share


$             0.68

$             0.60

$           (0.22)

$             0.65

$             0.69


$             1.28

$                1.46

Adjusted earnings per share*


0.73

0.65

0.63

0.69

0.84


1.38

1.59

Cash dividends per share


0.22

0.22

0.20

0.20

0.19


0.44

0.38

Book value per share


23.41

24.40

26.98

26.73

26.72


23.41

26.72

Tangible book value per share*


14.73

15.67

18.45

17.27

17.41


14.73

17.41

Market value per share (last)


23.48

29.26

29.79

29.78

28.33


23.48

28.33

Market value per share (high)


29.75

34.24

32.12

30.55

33.18


34.24

35.59

Market value per share (low)


22.82

27.95

27.25

24.87

27.59


22.82

26.95

Market value per share (avg)


25.74

31.20

30.20

27.89

30.33


28.47

30.58

Dividend payout ratio


32.44 %

36.60 %

NM

30.71 %

27.43 %


34.41 %

25.97 %

Adjusted dividend payout ratio*


30.14 %

33.85 %

31.75 %

28.99 %

22.62 %


31.88 %

23.90 %

Total shares outstanding


182,461,786

183,488,844

188,337,658

106,853,316

108,614,595


182,461,786

108,614,595

Average shares outstanding - diluted


183,711,402

187,264,335

164,720,656

108,250,102

105,838,056


185,476,720

104,274,819





















Yield/Rate:










(Taxable equivalent basis)










Loans, loans held for sale, and leases


4.29 %

4.23 %

4.34 %

4.46 %

4.43 %


4.25 %

4.48 %

Loans, loans held for sale, and leases excluding net










accretion on acquired loans and leases


4.12

3.96

4.06

4.38

4.35


4.04

4.39

Available-for-sale securities:










  Taxable


1.37

1.26

1.17

1.20

1.21


1.31

1.26

  Tax-exempt


2.95

2.57

2.54

2.88

2.77


2.75

3.10

Short-term, FHLB and other equity investments


1.03

0.24

0.25

0.20

0.16


0.55

0.13

  Total interest earning assets and revenue


3.29

3.10

3.11

3.15

3.31


3.20

3.40

Deposits


0.17

0.15

0.17

0.24

0.27


0.16

0.30

  Demand - interest bearing


0.26

0.20

0.21

0.31

0.34


0.23

0.37

  Savings


0.06

0.06

0.14

0.09

0.09


0.06

0.10

  Time


0.47

0.52

0.58

0.91

1.00


0.49

1.07

  Total interest bearing deposits


0.26

0.23

0.26

0.36

0.41


0.24

0.44

Short-term borrowings


0.74

0.11

0.11

0.10

0.12


0.56

0.12

Total interest bearing deposits and short-term 










borrowings


0.29

0.22

0.25

0.35

0.40


0.26

0.43

Long-term debt


4.14

4.19

3.95

4.47

4.47


4.16

4.47

  Total interest bearing liabilities and expense


0.36

0.29

0.32

0.43

0.47


0.32

0.51

Interest bearing liabilities to interest earning assets


65.25 %

64.46 %

64.18 %

66.04 %

66.24 %


64.86 %

66.54 %

Net interest income tax equivalent adjustment


$           1,063

$           1,027

$              824

$              446

$              550


$           2,090

$              1,118











*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 23 - 26.





NM = Not meaningful




















 

Cadence Bank

Consolidated Balance Sheets

(Unaudited)










Jun-22

Mar-22

Dec-21

Sep-21

Jun-21



(Dollars in thousands)

Assets







Cash and due from banks


$      770,293

$      781,310

$      656,132

$      301,246

$      331,873

Interest bearing deposits with other banks







and Federal funds sold


1,069,410

880,742

638,547

150,778

629,390

Available-for-sale securities, at fair value


13,450,621

14,371,606

15,606,470

10,053,372

9,084,111

Loans and leases, net of unearned income


28,360,485

27,189,666

26,882,988

14,991,245

15,004,039

             Allowance for credit losses


440,112

438,738

446,415

260,276

265,720

Net loans and leases


27,920,373

26,750,928

26,436,573

14,730,969

14,738,319

Loans held for sale


213,458

302,211

340,175

342,871

403,046

Premises and equipment, net


782,728

781,209

786,426

533,999

533,276

Goodwill


1,444,209

1,409,038

1,407,948

958,304

957,474

Other identifiable intangibles


138,370

191,642

198,271

52,235

54,659

Bank owned life insurance


601,601

599,346

597,953

359,740

355,660

Other assets


1,356,645

1,136,029

1,001,256

576,982

524,557

Total Assets


$ 47,747,708

$ 47,204,061

$ 47,669,751

$ 28,060,496

$ 27,612,365

Liabilities







Deposits:







  Demand:  Noninterest bearing


$ 14,012,529

$ 14,458,563

$ 13,634,505

$   7,700,216

$   7,619,308

                  Interest bearing


19,032,983

18,854,543

18,727,588

10,285,371

9,671,662

  Savings


3,735,925

3,713,629

3,556,079

3,054,756

2,939,958

  Time deposits


3,407,646

3,541,320

3,899,501

2,498,368

2,607,558

Total deposits


40,189,083

40,568,055

39,817,673

23,538,711

22,838,486

Securities sold under agreement to repurchase


649,177

703,560

687,188

705,123

683,135

Federal funds purchased







   and short-term FHLB advances


1,200,000

-

595,000

-

-

Subordinated debt


462,693

463,181

478,669

307,776

307,601

Long-term debt


2,380

2,514

3,742

4,082

4,189

Other liabilities


806,450

822,994

839,492

481,547

709,380

Total Liabilities


43,309,783

42,560,304

42,421,764

25,037,239

24,542,791

Shareholders' Equity







Preferred stock


166,993

166,993

166,993

166,993

166,993

Common stock


456,154

458,722

470,844

267,133

271,536

Capital surplus


2,686,031

2,701,371

2,841,998

688,637

730,294

Accumulated other comprehensive loss


(936,345)

(664,000)

(139,369)

(82,627)

(34,575)

Retained earnings


2,065,092

1,980,671

1,907,521

1,983,121

1,935,326

Total Shareholders' Equity


4,437,925

4,643,757

5,247,987

3,023,257

3,069,574

Total Liabilities & Shareholders' Equity


$ 47,747,708

$ 47,204,061

$ 47,669,751

$ 28,060,496

$ 27,612,365








 

Cadence Bank

Consolidated Average Balance Sheets

(Unaudited)










Jun-22

Mar-22

Dec-21

Sep-21

Jun-21



(Dollars in thousands)

Assets







Cash and due from banks


$      640,672

$      656,630

$      792,315

$      288,199

$      365,647

Interest bearing deposits with other banks







and Federal funds sold


751,972

1,161,262

1,253,722

495,982

302,845

Available-for-sale securities, at fair value


13,941,127

15,070,524

12,954,547

9,539,814

8,067,109

Loans and leases, net of unearned income


27,848,097

27,106,733

22,745,093

14,915,728

15,470,539

             Allowance for credit losses


438,752

444,294

404,578

264,067

245,095

Net loans and leases


27,409,345

26,662,439

22,340,515

14,651,661

15,225,444

Loans held for sale


147,301

176,647

220,766

242,422

361,999

Premises and equipment, net


784,247

785,005

690,031

534,071

526,960

Goodwill


1,407,452

1,407,973

1,115,502

957,899

910,448

Other identifiable intangibles


188,897

195,606

106,559

53,567

52,564

Bank owned life insurance


599,912

598,822

517,511

357,429

348,378

Other assets


1,193,904

964,942

998,991

495,541

504,902

Total Assets


$ 47,064,829

$ 47,679,850

$ 40,990,459

$ 27,616,585

$ 26,666,296

Liabilities







Deposits:







  Demand:  Noninterest bearing


$ 13,970,163

$ 13,806,591

$ 12,047,637

$   7,579,513

$   7,367,832

                  Interest bearing


18,238,571

19,401,019

15,811,268

10,027,346

9,598,550

  Savings


3,723,193

3,631,699

3,374,243

3,001,406

2,851,113

  Time deposits


3,464,101

3,725,794

3,526,539

2,554,185

2,568,388

Total deposits


39,396,028

40,565,103

34,759,687

23,162,450

22,385,883

Securities sold under agreement to repurchase


666,067

694,033

720,120

752,536

707,086

Federal funds purchased







   and short-term FHLB advances


1,294,946

131,556

7,554

8,706

3,901

Subordinated debt


462,986

463,481

432,267

307,671

304,056

Long-term debt


2,461

3,361

3,844

4,168

4,714

Other liabilities


719,152

760,085

558,393

322,747

305,822

Total Liabilities


42,541,640

42,617,619

36,481,865

24,558,278

23,711,462

Shareholders' Equity







Preferred stock


166,993

166,993

166,993

166,993

166,993

Common stock


457,713

465,458

404,522

270,098

266,676

Capital surplus


2,694,546

2,779,746

2,139,357

717,022

674,949

Accumulated other comprehensive loss


(821,034)

(283,417)

(103,554)

(35,408)

(30,614)

Retained earnings


2,024,971

1,933,451

1,901,276

1,939,602

1,876,830

Total Shareholders' Equity


4,523,189

5,062,231

4,508,594

3,058,307

2,954,834

Total Liabilities & Shareholders' Equity


$ 47,064,829

$ 47,679,850

$ 40,990,459

$ 27,616,585

$ 26,666,296








 

Cadence Bank

Consolidated Statements of Income (Loss)

(Dollars in thousands, except per share data)

(Unaudited)


















Quarter Ended


Year to Date



Jun-22


Mar-22


Dec-21


Sep-21


Jun-21


Jun-22


Jun-21

INTEREST REVENUE:















Loans and leases


$    296,680


$    282,266


$    249,614


$    168,066


$    171,305


$    578,946


$    340,500

Available-for-sale securities:















    Taxable


46,254


45,155


37,258


28,617


23,983


91,409


45,175

    Tax-exempt


2,571


2,414


1,608


490


676


4,985


1,363

Loans held for sale


2,118


1,407


1,324


2,076


3,040


3,525


4,635

Other


1,932


688


822


262


125


2,620


239

        Total interest revenue


349,555


331,930


290,626


199,511


199,129


681,485


391,912
















INTEREST EXPENSE:















Interest bearing demand and money















   market accounts


11,717


9,742


8,485


7,723


8,247


21,459


17,043

Savings


590


568


1,203


672


626


1,158


1,326

Time


4,041


4,764


5,139


5,861


6,428


8,805


13,394

Federal funds purchased and securities sold















   under agreement to repurchase


906


216


200


204


206


1,122


409

Short-term and long-term debt


2,733


54


37


42


44


2,787


89

Subordinated debt


4,801


4,764


4,350


3,463


3,387


9,565


6,656

Other


1


-


-


2


9


1


24

        Total interest expense


24,789


20,108


19,414


17,967


18,947


44,897


38,941
















        Net interest revenue


324,766


311,822


271,212


181,544


180,182


636,588


352,971

  Provision (release) for credit losses


1,000


-


133,562


(7,000)


11,500


1,000


11,500

        Net interest revenue, after provision for















          credit losses


323,766


311,822


137,650


188,544


168,682


635,588


341,471
















NONINTEREST REVENUE:















Mortgage banking


11,446


21,763


10,580


13,058


9,105


33,209


34,415

Credit card, debit card and merchant fees


16,593


11,321


12,016


10,692


10,874


27,914


19,927

Deposit service charges


19,126


19,898


17,680


11,580


10,069


39,024


19,655

Security gains (losses), net


1,446


(1,097)


(378)


(195)


96


349


178

Insurance commissions


39,994


35,727


32,637


35,773


36,106


75,721


66,773

Wealth management


20,213


21,737


16,352


7,147


7,543


41,950


16,008

Gain on sale of PPP loans


-


-


-


-


21,572


-


21,572

Other


16,416


19,086


14,967


6,365


6,578


35,502


11,351

        Total noninterest revenue


125,234


128,435


103,854


84,420


101,943


253,669


189,879
















NONINTEREST EXPENSE:















Salaries and employee benefits


182,094


187,819


149,599


112,968


108,188


369,913


209,248

Occupancy and equipment


30,129


28,270


26,885


18,977


18,154


58,399


35,532

Data processing and software


29,081


27,483


24,838


16,799


15,911


56,564


31,448

Merger expense


7,274


3,974


44,843


3,442


9,962


11,248


11,611

Deposit insurance assessments


4,945


3,336


3,278


2,330


1,638


8,281


3,093

Pension settlement expense


-


-


651


2,400


-


-


-

Other


32,365


40,785


39,100


22,973


20,131


73,150


38,875

        Total noninterest expense


285,888


291,667


289,194


179,889


173,984


577,555


329,807

        Income (loss) before income taxes


163,112


148,590


(47,690)


93,075


96,641


311,702


201,543

Income tax expense (benefit)


36,154


33,643


(13,033)


20,350


21,102


69,797


44,449

        Net income (loss)


$    126,958


$    114,947


$     (34,657)


$      72,725


$      75,539


$    241,905


$    157,094

Less: Preferred dividends


2,372


2,372


2,372


2,372


2,372


4,744


4,744

        Net income (loss) available to common 















shareholders


$    124,586


$    112,575


$     (37,029)


$      70,353


$      73,167


$    237,161


$    152,350
















Net income (loss)  per common share: Diluted


$          0.68


$          0.60


$         (0.22)


$          0.65


$          0.69


$          1.28


$          1.46
















 

Cadence Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)














Quarter Ended



Jun-22


Mar-22


Dec-21


Sep-21


Jun-21

LOAN AND LEASE PORTFOLIO:











Commercial and industrial











Non-real estate


$    8,526,481


$  8,017,958


$  7,847,473


$  2,210,287


$  2,271,370

Owner occupied


3,851,336


3,703,914


3,567,746


2,611,777


2,623,500

      Total commercial and industrial


12,377,817


11,721,872


11,415,219


4,822,064


4,894,870

Commercial real estate











Construction, acquisition and development


2,982,119


3,028,514


2,924,343


1,797,559


1,926,421

Income producing


5,054,232


4,795,486


4,924,369


3,443,967


3,323,883

      Total commercial real estate


8,036,351


7,824,000


7,848,712


5,241,526


5,250,304

Consumer











Residential mortgages


7,662,621


7,355,995


7,311,306


4,698,328


4,617,155

Other consumer


283,696


287,799


307,751


229,327


241,710

      Total consumer


7,946,317


7,643,794


7,619,057


4,927,655


4,858,865

Total loans and leases, net of unearned


$  28,360,485


$ 27,189,666


$ 26,882,988


$ 14,991,245


$ 15,004,039












NON-PERFORMING ASSETS











NON-PERFORMING LOANS AND LEASES:











  Nonaccrual Loans and Leases











Commercial and industrial











Non-real estate


$        34,233


$       33,086


$       33,690


$       13,170


$       10,941

Owner occupied


9,567


11,787


22,058


13,738


13,156

         Total commercial and industrial


43,800


44,873


55,748


26,908


24,097

    Commercial real estate











Construction, acquisition and development


2,125


1,618


5,568


3,292


2,582

Income producing


8,750


9,688


16,086


8,403


13,483

         Total commercial real estate


10,875


11,306


21,654


11,695


16,065

    Consumer











Residential mortgages


34,172


34,278


44,180


20,821


21,218

Other consumer


521


574


522


198


284

         Total consumer


34,693


34,852


44,702


21,019


21,502

Total nonaccrual loans and leases


$        89,368


$       91,031


$     122,104


$       59,622


$       61,664












Loans and Leases 90+ Days Past Due, Still 











Accruing:


19,682


20,957


24,784


17,012


15,386

Restructured Loans and Leases, Still Accruing


7,385


7,292


6,903


7,165


7,368

Total non-performing loans and leases


$      116,435


$     119,280


$     153,791


$       83,799


$       84,418












OTHER REAL ESTATE OWNED AND











OTHER REPOSSESSED ASSETS


14,399


28,401


33,021


16,515


17,333












Total Non-performing Assets


$      130,834


$     147,681


$     186,812


$     100,314


$     101,751












Additions to Nonaccrual Loans and Leases 











During the Quarter (excluding acquisitions)


$        21,312


$       16,374


$       22,158


$       19,858


$       16,005












 

Cadence Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)














Quarter Ended



Jun-22


Mar-22


Dec-21


Sep-21


Jun-21

ALLOWANCE FOR CREDIT LOSSES:











Balance, beginning of period


$    438,738


$    446,415


$    260,276


$    265,720


$    241,117












Loans and leases charged-off:











Commercial and industrial


(2,170)


(2,682)


(2,712)


(1,488)


(1,882)

Commercial real estate


(275)


(313)


(586)


(131)


(623)

Consumer


(1,941)


(1,792)


(2,342)


(1,694)


(1,357)

     Total loans charged-off


(4,386)


(4,787)


(5,640)


(3,313)


(3,862)












Recoveries:











Commercial and industrial


3,217


3,178


7,835


3,787


3,061

Commercial real estate


1,076


437


1,047


646


1,291

Consumer


1,467


1,612


1,521


936


1,310

     Total recoveries


5,760


5,227


10,403


5,369


5,662












Net recoveries (charge-offs)


1,374


440


4,763


2,056


1,800












Initial allowance on loans purchased with











credit deterioration


-


(8,117)


62,321


-


12,803

Provision:











Loans and leases acquired during the quarter


-


-


119,055


-


11,500

   Provision (release) for credit losses related to loans 











and leases


-


-


-


(7,500)


(1,500)

     Total provision for loans and leases


-


-


119,055


(7,500)


10,000












Balance, end of period


$    440,112


$    438,738


$    446,415


$    260,276


$    265,720












Average loans and leases, net of unearned, for period


$ 27,848,097


$ 27,106,733


$ 22,745,093


$ 14,915,728


$ 15,470,539












Ratio: Net (recoveries) charge-offs to average loans 











and leases (annualized)


(0.02 %)


(0.01 %)


(0.08 %)


(0.05 %)


(0.05 %)












RESERVE FOR UNFUNDED COMMITMENTS**











Balance, beginning of period


$      23,551


$      23,551


$        9,044


$        8,544


$        7,044

Provision for unfunded commitments for loans 











acquired during the quarter


-


-


13,007


-


-

Provision for credit losses for unfunded commitments


1,000


-


1,500


500


1,500

Balance, end of period


$      24,551


$      23,551


$      23,551


$        9,044


$        8,544












**The Reserve for Unfunded Commitments is classified in other liabilities on the balance sheet.
















 

Cadence Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)












June 30, 2022








Purchased









Credit





Special




Deteriorated




Pass

Mention

Substandard

Doubtful

Impaired

(Loss)

Total

LOAN PORTFOLIO BY 









INTERNALLY ASSIGNED GRADE:









Commercial and industrial









Non-real estate


$   8,360,393

$ 48,665

$     98,031

$        -

$    6,661

$     12,731

$   8,526,481

Owner occupied


3,805,811

1,735

36,098

-

3,622

4,070

3,851,336

     Total commercial and industrial


12,166,204

50,400

134,129

-

10,283

16,801

12,377,817

Commercial real estate









Construction, acquisition and 









development


2,963,169

423

12,475

-

993

5,059

2,982,119

Income producing


4,931,450

3,083

92,887

-

704

26,108

5,054,232

     Total commercial real estate


7,894,619

3,506

105,362

-

1,697

31,167

8,036,351

Consumer









Residential mortgages 


7,542,086

756

117,771

-

598

1,410

7,662,621

Other consumer


275,105

-

8,591

-

-

-

283,696

     Total consumer


7,817,191

756

126,362

-

598

1,410

7,946,317

     Total loans and leases, net of unearned


$ 27,878,014

$ 54,662

$   365,853

$        -

$  12,578

$     49,378

$ 28,360,485












March 31, 2022








Purchased









Credit





Special




Deteriorated




Pass

Mention

Substandard

Doubtful

Impaired

(Loss)

Total

LOAN PORTFOLIO BY 









INTERNALLY ASSIGNED GRADE:









Commercial and industrial









Non-real estate


$   7,854,480

$ 39,116

$     98,308

$        -

$    4,771

$     21,283

$   8,017,958

Owner occupied


3,647,785

3,304

43,866

-

4,064

4,895

3,703,914

     Total commercial and industrial


11,502,265

42,420

142,174

-

8,835

26,178

11,721,872

Commercial real estate









Construction, acquisition and 









development


2,995,751

245

27,980

-

-

4,538

3,028,514

Income producing


4,642,592

11,416

114,805

-

703

25,970

4,795,486

     Total commercial real estate


7,638,343

11,661

142,785

-

703

30,508

7,824,000

Consumer









Residential mortgages 


7,237,022

703

116,098

-

598

1,574

7,355,995

Other consumer


281,580

-

6,219

-

-

-

287,799

     Total consumer


7,518,602

703

122,317

-

598

1,574

7,643,794

     Total loans


$ 26,659,210

$ 54,784

$   407,276

$        -

$  10,136

$     58,260

$ 27,189,666










 

Cadence Bank

Geographical Information

(Dollars in thousands)

(Unaudited)
















June 30, 2022



Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:













Commercial and industrial













Non-real estate


$    399,110

$   156,007

$    411,175

$    530,835

$    325,925

$    430,355

$  90,777

$    321,900

$   3,703,419

$ 2,156,978

$   8,526,481

Owner occupied


351,129

244,194

293,162

279,972

292,640

560,825

91,523

173,170

1,402,562

162,159

3,851,336

     Total commercial and industrial


750,239

400,201

704,337

810,807

618,565

991,180

182,300

495,070

5,105,981

2,319,137

12,377,817

Commercial real estate













Construction, acquisition and 













development


199,673

73,486

209,715

258,645

57,377

180,636

30,569

130,391

1,434,138

407,489

2,982,119

Income producing


411,413

258,831

266,141

682,813

219,774

447,697

224,522

305,954

1,834,915

402,172

5,054,232

     Total commercial real estate


611,086

332,317

475,856

941,458

277,151

628,333

255,091

436,345

3,269,053

809,661

8,036,351

Consumer













Residential mortgages 


1,109,209

353,935

496,593

355,796

430,005

990,346

144,652

580,814

3,094,629

106,642

7,662,621

Other consumer


29,466

10,269

4,787

12,868

9,385

53,735

1,083

9,746

61,283

91,074

283,696

     Total consumer


1,138,675

364,204

501,380

368,664

439,390

1,044,081

145,735

590,560

3,155,912

197,716

7,946,317

     Total loans and leases, net of unearned


$ 2,500,000

$ 1,096,722

$ 1,681,573

$ 2,120,929

$ 1,335,106

$ 2,663,594

$ 583,126

$ 1,521,975

$ 11,530,946

$ 3,326,514

$ 28,360,485














Loan growth, excluding loans acquired













   during the quarter ($)


$     39,667

$     39,162

$    115,299

$    (15,814)

$     10,049

$     19,427

$  39,670

$     37,043

$     522,192

$    364,124

$   1,170,819














Loan growth, excluding loans acquired













   during the quarter (%) (annualized)


6.47 %

14.85 %

29.53 %

(2.97 %)

3.04 %

2.95 %

29.28 %

10.01 %

19.03 %

49.30 %

17.27 %
















March 31, 2022



Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:













Commercial and industrial













Non-real estate


$    410,993

$   139,935

$    369,738

$    504,198

$    336,376

$    424,165

$  78,363

$    321,527

$   3,533,629

$ 1,899,034

$   8,017,958

Owner occupied


322,879

234,336

257,621

290,903

290,846

565,650

81,014

169,208

1,335,659

155,798

3,703,914

     Total commercial and industrial


733,872

374,271

627,359

795,101

627,222

989,815

159,377

490,735

4,869,288

2,054,832

11,721,872

Commercial real estate













Construction, acquisition and 













development


191,368

73,123

241,378

349,205

48,003

191,517

59,027

116,101

1,424,661

334,131

3,028,514

Income producing


419,156

247,322

228,781

643,513

227,590

443,432

184,407

298,215

1,744,360

358,710

4,795,486

     Total commercial real estate


610,524

320,445

470,159

992,718

275,593

634,949

243,434

414,316

3,169,021

692,841

7,824,000

Consumer













Residential mortgages 


1,086,175

352,510

463,477

334,850

412,687

965,583

139,725

569,567

2,905,118

126,303

7,355,995

Other consumer


29,762

10,334

5,281

14,073

9,556

53,821

919

10,312

65,328

88,413

287,799

     Total consumer


1,115,937

362,844

468,758

348,923

422,243

1,019,404

140,644

579,879

2,970,446

214,716

7,643,794

     Total loans and leases, net of unearned


$ 2,460,333

$ 1,057,560

$ 1,566,276

$ 2,136,742

$ 1,325,058

$ 2,644,168

$ 543,455

$ 1,484,930

$ 11,008,755

$ 2,962,389

$ 27,189,666














 

Cadence Bank

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)


















Quarter Ended


Year to Date



Jun-22


Mar-22


Dec-21


Sep-21


Jun-21


Jun-22


Jun-21

NONINTEREST REVENUE:















Mortgage banking excl. market value adjustments 













on MSR and MSR Hedge


$    6,754


$    7,733


$    7,963


$  11,009


$  11,013


$  14,487


$  28,942

Market value adjustments on MSR and MSR Hedge


4,692


14,030


2,617


2,049


(1,908)


18,722


5,473

Credit card, debit card and merchant fees


16,593


11,321


12,016


10,692


10,874


27,914


19,927

Deposit service charges


19,126


19,898


17,680


11,580


10,069


39,024


19,655

Securities gains (losses), net


1,446


(1,097)


(378)


(195)


96


349


178

Insurance commissions


39,994


35,727


32,637


35,773


36,106


75,721


66,773

Trust income


9,129


10,061


7,892


4,735


4,434


19,190


9,563

Annuity fees


753


604


435


50


50


1,357


101

Brokerage commissions and fees


10,331


11,072


8,025


2,362


3,059


21,403


6,344

Gain on sale of PPP loans


-


-


-


-


21,572


-


21,572

Bank-owned life insurance


3,285


3,336


3,098


4,217


1,845


6,621


3,865

Other miscellaneous income


13,131


15,750


11,869


2,148


4,733


28,881


7,486

     Total noninterest revenue


$ 125,234


$ 128,435


$ 103,854


$  84,420


$ 101,943


$ 253,669


$ 189,879
















NONINTEREST EXPENSE:















Salaries and employee benefits


$ 182,094


$ 187,819


$ 149,599


$ 112,968


$ 108,188


$ 369,913


$ 209,248

Occupancy, net of rental income


21,109


20,346


19,477


13,443


13,187


41,455


26,001

Equipment


9,020


7,924


7,408


5,534


4,967


16,944


9,531

Deposit insurance assessments


4,945


3,336


3,278


2,330


1,638


8,281


3,093

Pension settlement expense


-


-


651


2,400


-


-


-

Advertising


2,030


2,716


2,721


988


783


4,746


1,787

Foreclosed property expense


(1,104)


440


689


2,189


649


(664)


1,670

Telecommunications


1,984


1,833


1,725


1,600


1,517


3,817


2,915

Public relations


2,387


1,877


2,365


1,166


1,012


4,264


1,753

Data processing


18,089


16,824


15,606


11,297


11,024


34,913


21,448

Computer software


10,992


10,659


9,232


5,502


4,887


21,651


10,000

Amortization of intangibles


3,042


6,780


5,473


2,424


2,401


9,822


4,719

Legal


1,463


1,793


1,282


814


774


3,256


1,940

Merger expense


7,274


3,974


44,843


3,442


9,962


11,248


11,611

Postage and shipping


2,022


2,034


1,772


1,414


1,317


4,056


2,864

Other miscellaneous expense


20,541


23,312


23,073


12,378


11,678


43,853


21,227

     Total noninterest expense


$ 285,888


$ 291,667


$ 289,194


$ 179,889


$ 173,984


$ 577,555


$ 329,807
















INSURANCE COMMISSIONS:















Property and casualty commissions


$  29,220


$  25,852


$  23,640


$  26,413


$  26,040


$  55,072


$  47,989

Life and health commissions


7,935


7,143


6,459


6,543


7,130


15,078


13,624

Risk management income


674


757


699


676


611


1,431


1,224

Other


2,165


1,975


1,839


2,141


2,325


4,140


3,936

     Total insurance commissions


$  39,994


$  35,727


$  32,637


$  35,773


$  36,106


$  75,721


$  66,773
















 

Cadence Bank

Average Balances and Yields    

(Dollars in thousands)

(Unaudited)
























For the Three Months Ended




June 30, 2022


March 31, 2022


June 30, 2021




Average


Income/


Yield/


Average


Income/


Yield/


Average


Income/


Yield/

(Dollars in thousands)



Balance


Expense


Rate


Balance


Expense


Rate


Balance


Expense


Rate





















ASSETS




















Interest-earning assets:




















Loans and leases, excluding accretion



$    27,848,097


$285,345


4.11 %


$27,106,733


$264,910


3.96 %


$15,470,539


$168,863


4.38 %

Accretion income on acquired loans





11,714


0.17




17,741


0.27




2,812


0.07

Loans held for sale



147,301


2,118


5.77


176,647


1,407


3.23


361,999


3,040


3.37

Investment securities 




















Taxable



13,499,222


46,254


1.37


14,588,090


45,155


1.26


7,943,065


23,983


1.21

Tax-exempt



441,905


3,255


2.95


482,434


3,056


2.57


124,044


856


2.77

Total investment securities



13,941,127


49,509


1.42


15,070,524


48,211


1.30


8,067,109


24,839


1.24

Other investments



751,972


1,932


1.03


1,161,262


688


0.24


312,112


125


0.16

Total interest-earning assets



42,688,497


350,618


3.29


43,515,166


332,957


3.10


24,211,759


199,679


3.31

Other assets



4,815,084






4,608,978






2,699,632





Allowance for credit losses



(438,752)






(444,294)






(245,095)





Total assets



$    47,064,829






$47,679,850






$26,666,296

























LIABILITIES AND SHAREHOLDERS' EQUITY




















Interest-bearing liabilities:




















Demand deposits



$    18,238,571


$  11,717


0.26 %


$19,401,019


$    9,742


0.20 %


$  9,598,550


$    8,247


0.34 %

Savings deposits



3,723,193


590


0.06


3,631,699


568


0.06


2,851,113


626


0.09

Time deposits



3,464,101


4,041


0.47


3,725,794


4,764


0.52


2,568,388


6,428


1.00

Total interest-bearing deposits



25,425,865


16,348


0.26


26,758,512


15,074


0.23


15,018,051


15,301


0.41

Short-term borrowings



1,961,013


3,639


0.74


825,589


216


0.11


710,987


206


0.12

Long-term borrowings



465,447


4,802


4.14


466,842


4,818


4.19


308,770


3,440


</