Customers Bancorp Reports Results for First Quarter
First Quarter 2024 Highlights
-
Q1 2024 net income available to common shareholders was
$45.9 million , or$1.40 per diluted share; ROAA was 0.94% and ROCE was 12.08%. -
Q1 2024 core earnings* were
$46.5 million , or$1.42 per diluted share; Core ROAA* was 0.95% and Core ROCE* was 12.24%. -
Q1 2024 adjusted core earnings* excluding certain one-time items were
$55.1 million , or$1.68 per diluted share; Adjusted Core ROAA* excluding certain one-time items was 1.11% and Adjusted Core ROCE* excluding certain one-time items was 14.50%. -
CET 1 ratio of 12.5%1 at
March 31, 2024 , compared to 12.2% atDecember 31, 2023 , above the approximately 11.5% target. -
TCE / TA ratio* of 7.3% at
March 31, 2024 , compared to 7.0% atDecember 31, 2023 , on track to achieve 7.5% target within one to two quarters. - Q1 2024 net interest margin, tax equivalent (“NIM”) was 3.10%, compared to Q4 2023 NIM of 3.31%, due to higher cash balances and lower average loans during the quarter.
-
Total deposits increased by
$41.1 million in Q1 2024 from Q4 2023 with a significant positive mix shift. Q1 2024 business unit deposit*2 growth of$1.2 billion funded the repayment of maturing wholesale CDs of$1.2 billion . -
Non-interest bearing deposits increased by
$266.4 million in Q1 2024 from Q4 2023 and represented 26% of total deposits. -
Total estimated insured deposits were 78%3 of total deposits at
March 31, 2024 , with immediately available liquidity covering estimated uninsured deposits3 by approximately 224%. -
Non-performing assets were
$35.8 million , or 0.17% of total assets, atMarch 31, 2024 compared to 0.13% atDecember 31, 2023 . Allowance for credit losses on loans and leases equaled 374% of non-performing loans atMarch 31, 2024 , compared to 499% atDecember 31, 2023 . -
Q1 2024 provision for credit losses on loans and leases was
$16.0 million compared to$13.4 million in Q4 2023 and the coverage of credit loss reserves for loans and leases held for investment was 1.12%. The coverage of credit loss reserves for loans and leases held for investment decreased modestly from 1.13% in Q4 2023 largely driven by lower consumer installment loans held for investment. -
Q1 2024 book value per share and tangible book value per share* both grew by approximately
$1.56 , or 3.3% over Q4 2023, driven by strong quarterly earnings and a decrease in AOCI losses of$4.3 million over the same time period.
______________________________________________ |
||
* |
Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
|
1 |
Regulatory capital ratios as of |
|
2 |
Total deposits excluding wholesale CDs and BMTX student-related deposits. |
|
3 |
Uninsured deposits (estimate) of |
CEO Commentary
“Following an exceptional year in 2023, we are pleased to share continued progress on the execution of our strategic priorities which we believe will grow our franchise value, our margins and net interest income in 2024 and beyond,” said
“Our Q1 2024 GAAP earnings were
______________________________________________ | ||
* |
Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
|
1 |
Regulatory capital ratios as of |
|
2 |
Total deposits excluding wholesale CDs and BMTX student-related deposits. |
|
3 |
Uninsured deposits (estimate) of |
Financial Highlights
(Dollars in thousands, except per share data) |
|
At or Three Months Ended |
|
Increase (Decrease) |
|||||||||||
|
|
|
|
|
|||||||||||
Profitability Metrics: |
|
|
|
|
|
|
|
|
|||||||
Net income available for common shareholders |
|
$ |
45,926 |
|
|
$ |
58,223 |
|
|
$ |
(12,297 |
) |
|
(21.1 |
)% |
Diluted earnings per share |
|
$ |
1.40 |
|
|
$ |
1.79 |
|
|
$ |
(0.39 |
) |
|
(21.8 |
)% |
Core earnings* |
|
$ |
46,532 |
|
|
$ |
61,633 |
|
|
$ |
(15,101 |
) |
|
(24.5 |
)% |
Adjusted core earnings* |
|
$ |
55,137 |
|
|
$ |
61,633 |
|
|
$ |
(6,496 |
) |
|
(10.5 |
)% |
Core earnings per share* |
|
$ |
1.42 |
|
|
$ |
1.90 |
|
|
$ |
(0.48 |
) |
|
(25.3 |
)% |
Adjusted core earnings per share* |
|
$ |
1.68 |
|
|
$ |
1.90 |
|
|
$ |
(0.22 |
) |
|
(11.6 |
)% |
Return on average assets (“ROAA”) |
|
|
0.94 |
% |
|
|
1.16 |
% |
|
|
(0.22 |
) |
|
|
|
Core ROAA* |
|
|
0.95 |
% |
|
|
1.22 |
% |
|
|
(0.27 |
) |
|
|
|
Adjusted core ROAA* |
|
|
1.11 |
% |
|
|
1.22 |
% |
|
|
(0.11 |
) |
|
|
|
Return on average common equity (“ROCE”) |
|
|
12.08 |
% |
|
|
15.93 |
% |
|
|
(3.85 |
) |
|
|
|
Core ROCE* |
|
|
12.24 |
% |
|
|
16.87 |
% |
|
|
(4.63 |
) |
|
|
|
Adjusted core ROCE* |
|
|
14.50 |
% |
|
|
16.87 |
% |
|
|
(2.37 |
) |
|
|
|
Core pre-tax pre-provision net income* |
|
$ |
83,674 |
|
|
$ |
101,884 |
|
|
$ |
(18,210 |
) |
|
(17.9 |
)% |
Adjusted core pre-tax pre-provision net income* |
|
$ |
94,988 |
|
|
$ |
101,884 |
|
|
$ |
(6,896 |
) |
|
(6.8 |
)% |
Net interest margin, tax equivalent |
|
|
3.10 |
% |
|
|
3.31 |
% |
|
|
(0.21 |
) |
|
|
|
Yield on loans (Loan yield) |
|
|
7.05 |
% |
|
|
7.30 |
% |
|
|
(0.25 |
) |
|
|
|
Cost of deposits |
|
|
3.45 |
% |
|
|
3.39 |
% |
|
|
0.06 |
|
|
|
|
Efficiency ratio |
|
|
54.58 |
% |
|
|
49.08 |
% |
|
|
5.50 |
|
|
|
|
Core efficiency ratio* |
|
|
54.24 |
% |
|
|
46.70 |
% |
|
|
7.54 |
|
|
|
|
Adjusted core efficiency ratio* |
|
|
48.02 |
% |
|
|
46.70 |
% |
|
|
1.32 |
|
|
|
|
Non-interest expense to average total assets |
|
|
1.87 |
% |
|
|
1.75 |
% |
|
|
0.12 |
|
|
|
|
Core non-interest expense to average total assets* |
|
|
1.86 |
% |
|
|
1.67 |
% |
|
|
0.19 |
|
|
|
|
Adjusted core non-interest expense to average total assets* |
|
|
1.65 |
% |
|
|
1.67 |
% |
|
|
(0.02 |
) |
|
|
|
Balance Sheet Trends: |
|
|
|
|
|
|
|
|
|||||||
Total assets |
|
$ |
21,347,367 |
|
|
$ |
21,316,265 |
|
|
$ |
31,102 |
|
|
0.1 |
% |
Total cash and investment securities |
|
$ |
7,338,025 |
|
|
$ |
7,355,156 |
|
|
$ |
(17,131 |
) |
|
(0.2 |
)% |
Total loans and leases |
|
$ |
13,256,871 |
|
|
$ |
13,202,084 |
|
|
$ |
54,787 |
|
|
0.4 |
% |
Non-interest bearing demand deposits |
|
$ |
4,688,880 |
|
|
$ |
4,422,494 |
|
|
$ |
266,386 |
|
|
6.0 |
% |
Total deposits |
|
$ |
17,961,383 |
|
|
$ |
17,920,236 |
|
|
$ |
41,147 |
|
|
0.2 |
% |
Capital Metrics: |
|
|
|
|
|
|
|
|
|||||||
Common Equity |
|
$ |
1,553,823 |
|
|
$ |
1,500,600 |
|
|
$ |
53,223 |
|
|
3.5 |
% |
Tangible Common Equity* |
|
$ |
1,550,194 |
|
|
$ |
1,496,971 |
|
|
$ |
53,223 |
|
|
3.6 |
% |
Common Equity to Total Assets |
|
|
7.3 |
% |
|
|
7.0 |
% |
|
|
0.3 |
|
|
|
|
Tangible Common Equity to Tangible Assets* |
|
|
7.3 |
% |
|
|
7.0 |
% |
|
|
0.3 |
|
|
|
|
Book Value per common share |
|
$ |
49.29 |
|
|
$ |
47.73 |
|
|
$ |
1.56 |
|
|
3.3 |
% |
Tangible Book Value per common share* |
|
$ |
49.18 |
|
|
$ |
47.61 |
|
|
$ |
1.57 |
|
|
3.3 |
% |
Common equity Tier 1 capital ratio (1) |
|
|
12.5 |
% |
|
|
12.2 |
% |
|
|
0.3 |
|
|
|
|
Total risk based capital ratio (1) |
|
|
15.6 |
% |
|
|
15.3 |
% |
|
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Regulatory capital ratios as of |
|||||||||||||||
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
Financial Highlights
(Dollars in thousands, except per share data) |
|
At or Three Months Ended |
|
Increase (Decrease) |
|||||||||||
|
|
|
|
|
|||||||||||
Profitability Metrics: |
|
|
|
|
|
|
|
|
|||||||
Net income available for common shareholders |
|
$ |
45,926 |
|
|
$ |
50,265 |
|
|
$ |
(4,339 |
) |
|
(8.6 |
)% |
Diluted earnings per share |
|
$ |
1.40 |
|
|
$ |
1.55 |
|
|
$ |
(0.15 |
) |
|
(9.7 |
)% |
Core earnings* |
|
$ |
46,532 |
|
|
$ |
51,143 |
|
|
$ |
(4,611 |
) |
|
(9.0 |
)% |
Adjusted core earnings* |
|
$ |
55,137 |
|
|
$ |
51,143 |
|
|
$ |
3,994 |
|
|
7.8 |
% |
Core earnings per share* |
|
$ |
1.42 |
|
|
$ |
1.58 |
|
|
$ |
(0.16 |
) |
|
(10.1 |
)% |
Adjusted core earnings per share* |
|
$ |
1.68 |
|
|
$ |
1.58 |
|
|
$ |
0.10 |
|
|
6.3 |
% |
Return on average assets (“ROAA”) |
|
|
0.94 |
% |
|
|
1.03 |
% |
|
|
(0.09 |
) |
|
|
|
Core ROAA* |
|
|
0.95 |
% |
|
|
1.05 |
% |
|
|
(0.10 |
) |
|
|
|
Adjusted core ROAA* |
|
|
1.11 |
% |
|
|
1.05 |
% |
|
|
0.06 |
|
|
|
|
Return on average common equity (“ROCE”) |
|
|
12.08 |
% |
|
|
16.00 |
% |
|
|
(3.92 |
) |
|
|
|
Core ROCE* |
|
|
12.24 |
% |
|
|
16.28 |
% |
|
|
(4.04 |
) |
|
|
|
Adjusted core ROCE* |
|
|
14.50 |
% |
|
|
16.28 |
% |
|
|
(1.78 |
) |
|
|
|
Core pre-tax pre-provision net income* |
|
$ |
83,674 |
|
|
$ |
89,282 |
|
|
$ |
(5,608 |
) |
|
(6.3 |
)% |
Adjusted core pre-tax pre-provision net income* |
|
$ |
94,988 |
|
|
$ |
89,282 |
|
|
$ |
5,706 |
|
|
6.4 |
% |
Net interest margin, tax equivalent |
|
|
3.10 |
% |
|
|
2.96 |
% |
|
|
0.14 |
|
|
|
|
Yield on loans (Loan yield) |
|
|
7.05 |
% |
|
|
6.70 |
% |
|
|
0.35 |
|
|
|
|
Cost of deposits |
|
|
3.45 |
% |
|
|
3.32 |
% |
|
|
0.13 |
|
|
|
|
Efficiency ratio |
|
|
54.58 |
% |
|
|
47.71 |
% |
|
|
6.87 |
|
|
|
|
Core efficiency ratio* |
|
|
54.24 |
% |
|
|
47.09 |
% |
|
|
7.15 |
|
|
|
|
Adjusted core efficiency ratio* |
|
|
48.02 |
% |
|
|
47.09 |
% |
|
|
0.93 |
|
|
|
|
Non-interest expense to average total assets |
|
|
1.87 |
% |
|
|
1.54 |
% |
|
|
0.33 |
|
|
|
|
Core non-interest expense to average total assets* |
|
|
1.86 |
% |
|
|
1.53 |
% |
|
|
0.33 |
|
|
|
|
Adjusted core non-interest expense to average total assets* |
|
|
1.65 |
% |
|
|
1.53 |
% |
|
|
0.12 |
|
|
|
|
Balance Sheet Trends: |
|
|
|
|
|
|
|
|
|||||||
Total assets |
|
$ |
21,347,367 |
|
|
$ |
21,751,614 |
|
|
$ |
(404,247 |
) |
|
(1.9 |
)% |
Total cash and investment securities |
|
$ |
7,338,025 |
|
|
$ |
5,843,948 |
|
|
$ |
1,494,077 |
|
|
25.6 |
% |
Total loans and leases |
|
$ |
13,256,871 |
|
|
$ |
15,063,034 |
|
|
$ |
(1,806,163 |
) |
|
(12.0 |
)% |
Non-interest bearing demand deposits |
|
$ |
4,688,880 |
|
|
$ |
3,487,517 |
|
|
$ |
1,201,363 |
|
|
34.4 |
% |
Total deposits |
|
$ |
17,961,383 |
|
|
$ |
17,723,617 |
|
|
$ |
237,766 |
|
|
1.3 |
% |
Capital Metrics: |
|
|
|
|
|
|
|
|
|||||||
Common Equity |
|
$ |
1,553,823 |
|
|
$ |
1,283,226 |
|
|
$ |
270,597 |
|
|
21.1 |
% |
Tangible Common Equity* |
|
$ |
1,550,194 |
|
|
$ |
1,279,597 |
|
|
$ |
270,597 |
|
|
21.1 |
% |
Common Equity to Total Assets |
|
|
7.3 |
% |
|
|
5.9 |
% |
|
|
1.4 |
|
|
|
|
Tangible Common Equity to Tangible Assets* |
|
|
7.3 |
% |
|
|
5.9 |
% |
|
|
1.4 |
|
|
|
|
Book Value per common share |
|
$ |
49.29 |
|
|
$ |
41.08 |
|
|
$ |
8.21 |
|
|
20.0 |
% |
Tangible Book Value per common share* |
|
$ |
49.18 |
|
|
$ |
40.96 |
|
|
$ |
8.22 |
|
|
20.1 |
% |
Common equity Tier 1 capital ratio (1) |
|
|
12.5 |
% |
|
|
9.6 |
% |
|
|
2.9 |
|
|
|
|
Total risk based capital ratio (1) |
|
|
15.6 |
% |
|
|
12.3 |
% |
|
|
3.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Regulatory capital ratios as of |
|||||||||||||||
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
Key Balance Sheet Trends
Loans and Leases
The following table presents the composition of total loans and leases as of the dates indicated:
(Dollars in thousands) |
|
|
% of Total |
|
|
|
% of Total |
|
|
|
% of Total |
||||||
Loans and Leases Held for Investment |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Specialized lending |
$ |
5,104,405 |
|
39.6 |
% |
|
$ |
5,006,693 |
|
38.9 |
% |
|
$ |
5,519,176 |
|
37.7 |
% |
Other commercial & industrial (1) |
|
1,113,517 |
|
8.6 |
|
|
|
1,162,317 |
|
9.0 |
|
|
|
1,414,419 |
|
9.7 |
|
Mortgage finance |
|
1,071,146 |
|
8.3 |
|
|
|
1,014,742 |
|
7.9 |
|
|
|
1,374,894 |
|
9.4 |
|
Multifamily |
|
2,123,675 |
|
16.5 |
|
|
|
2,138,622 |
|
16.6 |
|
|
|
2,195,211 |
|
15.0 |
|
Commercial real estate owner occupied |
|
806,278 |
|
6.3 |
|
|
|
797,319 |
|
6.2 |
|
|
|
895,314 |
|
6.1 |
|
Commercial real estate non-owner occupied |
|
1,182,084 |
|
9.2 |
|
|
|
1,177,650 |
|
9.2 |
|
|
|
1,245,248 |
|
8.5 |
|
Construction |
|
185,601 |
|
1.3 |
|
|
|
166,393 |
|
1.3 |
|
|
|
188,123 |
|
1.3 |
|
Total commercial loans and leases |
|
11,586,706 |
|
89.8 |
|
|
|
11,463,736 |
|
89.1 |
|
|
|
12,832,385 |
|
87.7 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential |
|
482,537 |
|
3.8 |
|
|
|
484,435 |
|
3.8 |
|
|
|
494,815 |
|
3.4 |
|
Manufactured housing |
|
37,382 |
|
0.3 |
|
|
|
38,670 |
|
0.3 |
|
|
|
43,272 |
|
0.3 |
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Personal |
|
492,892 |
|
3.8 |
|
|
|
555,533 |
|
4.3 |
|
|
|
849,420 |
|
5.8 |
|
Other |
|
299,714 |
|
2.3 |
|
|
|
319,393 |
|
2.5 |
|
|
|
419,085 |
|
2.8 |
|
Total installment loans |
|
792,606 |
|
6.1 |
|
|
|
874,926 |
|
6.8 |
|
|
|
1,268,505 |
|
8.6 |
|
Total consumer loans |
|
1,312,525 |
|
10.2 |
|
|
|
1,398,031 |
|
10.9 |
|
|
|
1,806,592 |
|
12.3 |
|
Total loans and leases held for investment |
$ |
12,899,231 |
|
100.0 |
% |
|
$ |
12,861,767 |
|
100.0 |
% |
|
$ |
14,638,977 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Multifamily |
$ |
— |
|
— |
% |
|
$ |
— |
|
— |
% |
|
$ |
4,051 |
|
1.0 |
% |
Commercial real estate non-owner occupied |
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
16,000 |
|
3.7 |
|
Total commercial loans and leases |
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
20,051 |
|
4.7 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential |
|
870 |
|
0.2 |
|
|
|
1,215 |
|
0.3 |
|
|
|
821 |
|
0.2 |
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Personal |
|
137,755 |
|
38.5 |
|
|
|
151,040 |
|
44.4 |
|
|
|
307,336 |
|
72.5 |
|
Other |
|
219,015 |
|
61.3 |
|
|
|
188,062 |
|
55.3 |
|
|
|
95,849 |
|
22.6 |
|
Total installment loans |
|
356,770 |
|
99.8 |
|
|
|
339,102 |
|
99.7 |
|
|
|
403,185 |
|
95.1 |
|
Total consumer loans |
|
357,640 |
|
100.0 |
|
|
|
340,317 |
|
100.0 |
|
|
|
404,006 |
|
95.3 |
|
Total loans held for sale |
$ |
357,640 |
|
100.0 |
% |
|
$ |
340,317 |
|
100.0 |
% |
|
$ |
424,057 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total loans and leases portfolio |
$ |
13,256,871 |
|
|
|
$ |
13,202,084 |
|
|
|
$ |
15,063,034 |
|
|
|||
(1) Includes PPP loans of |
Loans and Leases Held for Investment
Loans and leases held for investment were
Loans and leases held for investment of
Loans Held for Sale
Loans held for sale increased
Allowance for Credit Losses on Loans and Leases
The following table presents the allowance for credit losses on loans and leases as of the dates and for the periods presented:
|
At or Three Months Ended |
|
Increase (Decrease) |
|
At or Three Months Ended |
|
Increase (Decrease) |
||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for credit losses on loans and leases |
$ |
133,296 |
|
|
$ |
135,311 |
|
|
$ |
(2,015 |
) |
|
$ |
133,296 |
|
|
$ |
130,281 |
|
|
$ |
3,015 |
|
Provision (benefit) for credit losses on loans and leases |
$ |
15,953 |
|
|
$ |
13,420 |
|
|
$ |
2,533 |
|
|
$ |
15,953 |
|
|
$ |
18,008 |
|
|
$ |
(2,055 |
) |
Net charge-offs from loans held for investment |
$ |
17,968 |
|
|
$ |
17,322 |
|
|
$ |
646 |
|
|
$ |
17,968 |
|
|
$ |
18,651 |
|
|
$ |
(683 |
) |
Annualized net charge-offs to average loans and leases |
|
0.55 |
% |
|
|
0.51 |
% |
|
|
|
|
0.55 |
% |
|
|
0.49 |
% |
|
|
||||
Coverage of credit loss reserves for loans and leases held for investment |
|
1.12 |
% |
|
|
1.13 |
% |
|
|
|
|
1.12 |
% |
|
|
0.97 |
% |
|
|
Net charge-offs were relatively stable with
Provision (benefit) for Credit Losses
|
Three Months Ended |
|
Increase (Decrease) |
|
Three Months Ended |
|
Increase (Decrease) |
||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
Provision (benefit) for credit losses on loans and leases |
$ |
15,953 |
|
$ |
13,420 |
|
|
$ |
2,533 |
|
$ |
15,953 |
|
$ |
18,008 |
|
$ |
(2,055 |
) |
Provision (benefit) for credit losses on available for sale debt securities |
|
1,117 |
|
|
103 |
|
|
|
1,014 |
|
|
1,117 |
|
|
1,595 |
|
|
(478 |
) |
Provision for credit losses |
|
17,070 |
|
|
13,523 |
|
|
|
3,547 |
|
|
17,070 |
|
|
19,603 |
|
|
(2,533 |
) |
Provision (benefit) for credit losses on unfunded commitments |
|
430 |
|
|
(136 |
) |
|
|
566 |
|
|
430 |
|
|
280 |
|
|
150 |
|
Total provision for credit losses |
$ |
17,500 |
|
$ |
13,387 |
|
|
$ |
4,113 |
|
$ |
17,500 |
|
$ |
19,883 |
|
$ |
(2,383 |
) |
The provision for credit losses on loans and leases in Q1 2024 was
The provision for credit losses on available for sale investment securities in Q1 2024 was
The provision for credit losses on loans and leases in Q1 2024 was
The provision for credit losses on available for sale investment securities in Q1 2024 was
Asset Quality
The following table presents asset quality metrics as of the dates indicated:
(Dollars in thousands) |
|
|
|
|
Increase (Decrease) |
|
|
|
|
|
Increase (Decrease) |
||||||||||||
Non-performing assets (“NPAs”): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonaccrual / non-performing loans (“NPLs”) |
$ |
35,654 |
|
|
$ |
27,110 |
|
|
$ |
8,544 |
|
|
$ |
35,654 |
|
|
$ |
32,124 |
|
|
$ |
3,530 |
|
Non-performing assets |
$ |
35,753 |
|
|
$ |
27,209 |
|
|
$ |
8,544 |
|
|
$ |
35,753 |
|
|
$ |
32,260 |
|
|
$ |
3,493 |
|
NPLs to total loans and leases |
|
0.27 |
% |
|
|
0.21 |
% |
|
|
|
|
0.27 |
% |
|
|
0.21 |
% |
|
|
||||
Reserves to NPLs |
|
373.86 |
% |
|
|
499.12 |
% |
|
|
|
|
373.86 |
% |
|
|
405.56 |
% |
|
|
||||
NPAs to total assets |
|
0.17 |
% |
|
|
0.13 |
% |
|
|
|
|
0.17 |
% |
|
|
0.15 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and leases (1) risk ratings: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans and leases |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass |
$ |
10,095,611 |
|
|
$ |
9,955,243 |
|
|
$ |
140,368 |
|
|
$ |
10,095,611 |
|
|
$ |
10,928,620 |
|
|
$ |
(833,009 |
) |
Special Mention |
|
194,365 |
|
|
|
196,182 |
|
|
|
(1,817 |
) |
|
|
194,365 |
|
|
|
136,986 |
|
|
|
57,379 |
|
Substandard |
|
282,163 |
|
|
|
339,664 |
|
|
|
(57,501 |
) |
|
|
282,163 |
|
|
|
273,154 |
|
|
|
9,009 |
|
Total commercial loans and leases |
|
10,572,139 |
|
|
|
10,491,089 |
|
|
|
81,050 |
|
|
|
10,572,139 |
|
|
|
11,338,760 |
|
|
|
(766,621 |
) |
Consumer loans |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Performing |
|
1,293,457 |
|
|
|
1,379,603 |
|
|
|
(86,146 |
) |
|
|
1,293,457 |
|
|
|
1,787,123 |
|
|
|
(493,666 |
) |
Non-performing |
|
19,068 |
|
|
|
18,428 |
|
|
|
640 |
|
|
|
19,068 |
|
|
|
19,469 |
|
|
|
(401 |
) |
Total consumer loans |
|
1,312,525 |
|
|
|
1,398,031 |
|
|
|
(85,506 |
) |
|
|
1,312,525 |
|
|
|
1,806,592 |
|
|
|
(494,067 |
) |
Loans and leases receivable (1) |
$ |
11,884,664 |
|
|
$ |
11,889,120 |
|
|
$ |
(4,456 |
) |
|
$ |
11,884,664 |
|
|
$ |
13,145,352 |
|
|
$ |
(1,260,688 |
) |
(1) Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale, loans receivable, mortgage finance, at fair value and eligible PPP loans that are fully guaranteed by the |
Over the last decade, the Bank has developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s commercial and industrial (“C&I”), mortgage finance, corporate and specialized lending lines of business, and multifamily loans for example, are characterized by conservative underwriting standards and low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite an adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, management employs a bottom-up data driven approach to analyze the commercial portfolio.
Total consumer installment loans held for investment at
Non-performing loans at
The investment securities portfolio, including debt securities classified as available for sale (“AFS”) and held to maturity (“HTM”) provides periodic cash flows through regular maturities and amortization, can be used as collateral to secure additional funding, and is an important component of the Bank’s liquidity position.
The following table presents the composition of the investment securities portfolio as of the dates indicated:
(Dollars in thousands) |
|
|
|
|
|
|||
Debt securities, available for sale |
$ |
2,571,139 |
|
$ |
2,376,860 |
|
$ |
2,900,259 |
Equity securities |
|
33,729 |
|
|
28,780 |
|
|
26,710 |
Investment securities, at fair value |
|
2,604,868 |
|
|
2,405,640 |
|
|
2,926,969 |
Debt securities, held to maturity |
|
1,032,037 |
|
|
1,103,170 |
|
|
870,294 |
Total investment securities portfolio |
$ |
3,636,905 |
|
$ |
3,508,810 |
|
$ |
3,797,263 |
Critically important to performance during the recent banking crisis are the characteristics of a bank’s securities portfolio. While there may be virtually no credit risk in some of these portfolios, holding longer term and lower yielding securities is creating challenges for many banks. Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At
At
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
(Dollars in thousands) |
|
|
% of Total |
|
|
|
% of Total |
|
|
|
% of Total |
||||||
Demand, non-interest bearing |
$ |
4,688,880 |
|
26.1 |
% |
|
$ |
4,422,494 |
|
24.7 |
% |
|
$ |
3,487,517 |
|
19.7 |
% |
Demand, interest bearing |
|
5,661,775 |
|
31.5 |
|
|
|
5,580,527 |
|
31.1 |
|
|
|
5,791,302 |
|
32.7 |
|
Total demand deposits |
|
10,350,655 |
|
57.6 |
|
|
|
10,003,021 |
|
55.8 |
|
|
|
9,278,819 |
|
52.4 |
|
Savings |
|
2,080,374 |
|
11.6 |
|
|
|
1,402,941 |
|
7.8 |
|
|
|
924,359 |
|
5.2 |
|
Money market |
|
3,347,843 |
|
18.6 |
|
|
|
3,226,395 |
|
18.0 |
|
|
|
2,019,633 |
|
11.4 |
|
Time deposits |
|
2,182,511 |
|
12.2 |
|
|
|
3,287,879 |
|
18.4 |
|
|
|
5,500,806 |
|
31.0 |
|
Total deposits |
$ |
17,961,383 |
|
100.0 |
% |
|
$ |
17,920,236 |
|
100.0 |
% |
|
$ |
17,723,617 |
|
100.0 |
% |
Total deposits increased
Total deposits increased
______________________________________________ |
||
1 |
Uninsured deposits (estimate) of |
Borrowings
The following table presents the composition of our borrowings as of the dates indicated:
(Dollars in thousands) |
|
|
|
|
|
|||
FHLB advances |
$ |
1,195,088 |
|
$ |
1,203,207 |
|
$ |
2,052,143 |
Senior notes |
|
123,905 |
|
|
123,840 |
|
|
123,645 |
Subordinated debt |
|
182,300 |
|
|
182,230 |
|
|
182,021 |
Total borrowings |
$ |
1,501,293 |
|
$ |
1,509,277 |
|
$ |
2,357,809 |
Total borrowings decreased
Total borrowings decreased
Capital
The following table presents certain capital amounts and ratios as of the dates indicated:
(Dollars in thousands except per share data) |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Common Equity |
$ |
1,553,823 |
|
|
$ |
1,500,600 |
|
|
$ |
1,283,226 |
|
Tangible Common Equity* |
$ |
1,550,194 |
|
|
$ |
1,496,971 |
|
|
$ |
1,279,597 |
|
Common Equity to Total Assets |
|
7.3 |
% |
|
|
7.0 |
% |
|
|
5.9 |
% |
Tangible Common Equity to Tangible Assets* |
|
7.3 |
% |
|
|
7.0 |
% |
|
|
5.9 |
% |
Book Value per common share |
$ |
49.29 |
|
|
$ |
47.73 |
|
|
$ |
41.08 |
|
Tangible Book Value per common share* |
$ |
49.18 |
|
|
$ |
47.61 |
|
|
$ |
40.96 |
|
Common equity Tier 1 (“CET 1”) capital ratio (1) |
|
12.5 |
% |
|
|
12.2 |
% |
|
|
9.6 |
% |
Total risk based capital ratio (1) |
|
15.6 |
% |
|
|
15.3 |
% |
|
|
12.3 |
% |
|
|
|
|
|
|
||||||
(1) Regulatory capital ratios as of |
|||||||||||
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
Customers Bancorp’s common equity increased
Customers Bancorp’s common equity increased
At the
At the
“Even though we remain well capitalized by all regulatory measures, we are committed to maintaining our CET 1 ratio around 11.5% and growing our TCE / TA ratio* to 7.5% in 2024,” stated
Key Profitability Trends
Net Interest Income
Net interest income totaled
“We experienced a modest decline in net interest income in the first quarter due to the selective reduction of higher yielding loans and securities in last quarter. This quarter we also reserved loan growth capacity in anticipation of the onboarding of the new teams. As we deploy excess liquidity, currently on the balance sheet in cash and securities, our net interest income is expected to grow and our net interest margin is expected to expand over the remainder of the year. Our loan pipeline grew meaningfully in the first quarter, which will benefit interest income and margin for the remainder of the year. For the second quarter in a row we reported lower interest expense compared to the prior quarter. The continued replacement of wholesale deposits and the remix of higher cost less strategic business unit deposits*2 is expected to continue to drive interest expense lower going forward. The combination of these efforts will benefit our net interest income throughout 2024 and beyond,” stated
Net interest income totaled
______________________________________________ |
||
2 |
Total deposits excluding wholesale CDs and BMTX student-related deposits. |
Non-Interest Income
The following table presents details of non-interest income for the periods indicated:
|
Three Months Ended |
|
Increase (Decrease) |
|
Three Months Ended |
|
Increase (Decrease) |
|||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial lease income |
$ |
9,683 |
|
|
$ |
9,035 |
|
|
$ |
648 |
|
|
$ |
9,683 |
|
|
$ |
9,326 |
|
$ |
357 |
|
Loan fees |
|
5,280 |
|
|
|
5,926 |
|
|
|
(646 |
) |
|
|
5,280 |
|
|
|
3,990 |
|
|
1,290 |
|
Bank-owned life insurance |
|
3,261 |
|
|
|
2,160 |
|
|
|
1,101 |
|
|
|
3,261 |
|
|
|
2,647 |
|
|
614 |
|
Mortgage finance transactional fees |
|
946 |
|
|
|
927 |
|
|
|
19 |
|
|
|
946 |
|
|
|
1,074 |
|
|
(128 |
) |
Gain (loss) on sale of loans |
|
10 |
|
|
|
(91 |
) |
|
|
101 |
|
|
|
10 |
|
|
|
— |
|
|
10 |
|
Net gain (loss) on sale of investment securities |
|
(30 |
) |
|
|
(145 |
) |
|
|
115 |
|
|
|
(30 |
) |
|
|
— |
|
|
(30 |
) |
Other |
|
2,081 |
|
|
|
860 |
|
|
|
1,221 |
|
|
|
2,081 |
|
|
|
1,084 |
|
|
997 |
|
Total non-interest income |
$ |
21,231 |
|
|
$ |
18,672 |
|
|
$ |
2,559 |
|
|
$ |
21,231 |
|
|
$ |
18,121 |
|
$ |
3,110 |
|
Non-interest income totaled
Non-interest income totaled
Non-Interest Expense
The following table presents details of non-interest expense for the periods indicated:
|
Three Months Ended |
|
Increase (Decrease) |
|
Three Months Ended |
|
Increase (Decrease) |
||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits |
$ |
36,025 |
|
$ |
33,965 |
|
$ |
2,060 |
|
|
$ |
36,025 |
|
$ |
32,345 |
|
$ |
3,680 |
|
Technology, communication and bank operations |
|
21,904 |
|
|
16,887 |
|
|
5,017 |
|
|
|
21,904 |
|
|
16,589 |
|
|
5,315 |
|
Commercial lease depreciation |
|
7,970 |
|
|
7,357 |
|
|
613 |
|
|
|
7,970 |
|
|
7,875 |
|
|
95 |
|
Professional services |
|
6,353 |
|
|
9,820 |
|
|
(3,467 |
) |
|
|
6,353 |
|
|
7,596 |
|
|
(1,243 |
) |
Loan servicing |
|
4,031 |
|
|
3,779 |
|
|
252 |
|
|
|
4,031 |
|
|
4,661 |
|
|
(630 |
) |
Occupancy |
|
2,347 |
|
|
2,320 |
|
|
27 |
|
|
|
2,347 |
|
|
2,760 |
|
|
(413 |
) |
|
|
13,469 |
|
|
13,977 |
|
|
(508 |
) |
|
|
13,469 |
|
|
2,728 |
|
|
10,741 |
|
Advertising and promotion |
|
682 |
|
|
850 |
|
|
(168 |
) |
|
|
682 |
|
|
1,049 |
|
|
(367 |
) |
Other |
|
6,388 |
|
|
4,812 |
|
|
1,576 |
|
|
|
6,388 |
|
|
4,530 |
|
|
1,858 |
|
Total non-interest expense |
$ |
99,169 |
|
$ |
93,767 |
|
$ |
5,402 |
|
|
$ |
99,169 |
|
$ |
80,133 |
|
$ |
19,036 |
|
Non-interest expenses totaled
Non-interest expenses totaled
Taxes
Income tax expense decreased by
Income tax expense increased by
The effective tax rate for Q1 2024 was 24%. Customers expects the full-year 2024 effective tax rate to be approximately 22% to 24%.
Outlook
“Looking forward, our strategy and risk management principles remain unchanged. We are focused on managing risk, strengthening our deposit franchise, further improving our profitability and maintaining our strong capital ratios. Our deposits are expected to grow modestly with continued improvement in the quality of deposits, reducing higher cost business unit deposits*1 with lower cost deposits where we have a holistic and primary relationship. The addition of the new banking teams is expected to accelerate and enhance these efforts which were already well underway. We see attractive opportunities to deploy cash and securities cash flows into franchise-enhancing loan growth and our pipeline is strong. We remain confident in our ability to deliver 10% - 15% loan growth for the full year. The management of non-interest expenses remains a priority for us. Our adjusted core non-interest expense*, which excludes certain one-time items, declined from the core non-interest expense in the prior quarter. We expect the investments made in recruiting the new banking teams will produce significant benefits by increasing our net interest income and net interest margin primarily through lowering our interest expense costs as well as improving the overall quality of our deposit franchise. Operating efficiency has and will continue to be a differentiator of our business model, and we will continue to only make investments that generate long-term positive operating leverage and enable the organization to operate at a mid-40’s efficiency ratio. The onboarding of our new banking teams will elevate our efficiency ratio temporarily, but we are confident in our ability to operate with a mid-40’s efficiency ratio over the medium term. We remain committed to maintaining a CET 1 ratio around 11.5% in 2024, and growing our TCE / TA ratio* to 7.5%. We are highly focused on preserving superior credit quality, managing interest rate risk, maintaining robust liquidity, operating with higher capital ratios and generating positive operating leverage,” concluded
______________________________________________ |
||
* |
Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
|
1 |
Total deposits excluding wholesale CDs and BMTX student-related deposits. |
Webcast |
||
Date: |
|
|
Time: |
|
The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com/investor-relations/ and at the
You may submit questions in advance of the live webcast by emailing our Communications Director,
The webcast will be archived for viewing on the Customers Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.
Institutional Background
-
No. 5 on American Banker 2023 list of top-performing banks with
$10B to$50B in assets - No. 29 out of the 100 largest publicly traded banks in 2024 Forbes Best Banks list
-
No. 52 on Investor’s
Business Daily 100 Best Stocks for 2023
A member of the
“Safe Harbor” Statement
In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to
Q1 2024 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended
|
||||||||||||||||||||
EARNINGS SUMMARY - UNAUDITED |
||||||||||||||||||||
|
||||||||||||||||||||
(Dollars in thousands, except per share data and stock price data) |
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|||||||||||
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP Profitability Metrics: |
||||||||||||||||||||
Net income available to common shareholders
|
$ |
45,926 |
|
|
$ |
58,223 |
|
|
$ |
82,953 |
|
|
$ |
44,007 |
|
|
$ |
50,265 |
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Earnings per share - basic |
$ |
1.46 |
|
|
$ |
1.86 |
|
|
$ |
2.65 |
|
|
$ |
1.41 |
|
|
$ |
1.58 |
|
|
Earnings per share - diluted |
$ |
1.40 |
|
|
$ |
1.79 |
|
|
$ |
2.58 |
|
|
$ |
1.39 |
|
|
$ |
1.55 |
|
|
Book value per common share (1) |
$ |
49.29 |
|
|
$ |
47.73 |
|
|
$ |
45.47 |
|
|
$ |
42.16 |
|
|
$ |
41.08 |
|
|
CUBI stock price (1) |
$ |
53.06 |
|
|
$ |
57.62 |
|
|
$ |
34.45 |
|
|
$ |
30.26 |
|
|
$ |
18.52 |
|
|
CUBI stock price as % of book value (1) |
|
108 |
% |
|
|
121 |
% |
|
|
76 |
% |
|
|
72 |
% |
|
|
45 |
% |
Average shares outstanding - basic |
|
31,473,424 |
|
|
|
31,385,043 |
|
|
|
31,290,581 |
|
|
|
31,254,125 |
|
|
|
31,819,203 |
|
|
Average shares outstanding - diluted |
|
32,854,534 |
|
|
|
32,521,787 |
|
|
|
32,175,084 |
|
|
|
31,591,142 |
|
|
|
32,345,017 |
|
|
Shares outstanding (1) |
|
31,521,931 |
|
|
|
31,440,906 |
|
|
|
31,311,254 |
|
|
|
31,282,318 |
|
|
|
31,239,750 |
|
|
Return on average assets (“ROAA”) |
|
0.94 |
% |
|
|
1.16 |
% |
|
|
1.57 |
% |
|
|
0.88 |
% |
|
|
1.03 |
% |
|
Return on average common equity (“ROCE”) |
|
12.08 |
% |
|
|
15.93 |
% |
|
|
23.97 |
% |
|
|
13.22 |
% |
|
|
16.00 |
% |
|
Net interest margin, tax equivalent |
|
3.10 |
% |
|
|
3.31 |
% |
|
|
3.70 |
% |
|
|
3.15 |
% |
|
|
2.96 |
% |
|
Efficiency ratio |
|
54.58 |
% |
|
|
49.08 |
% |
|
|
41.01 |
% |
|
|
49.25 |
% |
|
|
47.71 |
% |
|
Non-GAAP Profitability Metrics (2): |
|
|
|
|
|
|
|
|
|
|||||||||||
Core earnings |
$ |
46,532 |
|
|
$ |
61,633 |
|
|
$ |
83,294 |
|
|
$ |
52,163 |
|
|
$ |
51,143 |
|
|
Core pre-tax pre-provision net income |
$ |
83,674 |
|
|
$ |
101,884 |
|
|
$ |
128,564 |
|
|
$ |
96,833 |
|
|
$ |
89,282 |
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Core earnings per share - diluted |
$ |
1.42 |
|
|
$ |
1.90 |
|
|
$ |
2.59 |
|
|
$ |
1.65 |
|
|
$ |
1.58 |
|
|
Tangible book value per common share (1) |
$ |
49.18 |
|
|
$ |
47.61 |
|
|
$ |
45.36 |
|
|
$ |
42.04 |
|
|
$ |
40.96 |
|
|
CUBI stock price as % of tangible book value (1) |
|
108 |
% |
|
|
121 |
% |
|
|
76 |
% |
|
|
72 |
% |
|
|
45 |
% |
Core ROAA |
|
0.95 |
% |
|
|
1.22 |
% |
|
|
1.57 |
% |
|
|
1.03 |
% |
|
|
1.05 |
% |
|
Core ROCE |
|
12.24 |
% |
|
|
16.87 |
% |
|
|
24.06 |
% |
|
|
15.67 |
% |
|
|
16.28 |
% |
|
Core pre-tax pre-provision ROAA |
|
1.58 |
% |
|
|
1.90 |
% |
|
|
2.32 |
% |
|
|
1.79 |
% |
|
|
1.72 |
% |
|
Core pre-tax pre-provision ROCE |
|
21.01 |
% |
|
|
26.82 |
% |
|
|
36.04 |
% |
|
|
28.01 |
% |
|
|
27.33 |
% |
|
Core efficiency ratio |
|
54.24 |
% |
|
|
46.70 |
% |
|
|
41.04 |
% |
|
|
47.84 |
% |
|
|
47.09 |
% |
|
Asset Quality: |
|
|
|
|
|
|
|
|
|
|||||||||||
Net charge-offs |
$ |
17,968 |
|
|
$ |
17,322 |
|
|
$ |
17,498 |
|
|
$ |
15,564 |
|
|
$ |
18,651 |
|
|
Annualized net charge-offs to average total loans and leases |
|
0.55 |
% |
|
|
0.51 |
% |
|
|
0.50 |
% |
|
|
0.42 |
% |
|
|
0.49 |
% |
|
Non-performing loans (“NPLs”) to total loans and leases (1) |
|
0.27 |
% |
|
|
0.21 |
% |
|
|
0.22 |
% |
|
|
0.20 |
% |
|
|
0.21 |
% |
|
Reserves to NPLs (1) |
|
373.86 |
% |
|
|
499.12 |
% |
|
|
466.11 |
% |
|
|
494.46 |
% |
|
|
405.56 |
% |
|
Non-performing assets (“NPAs”) to total assets |
|
0.17 |
% |
|
|
0.13 |
% |
|
|
0.14 |
% |
|
|
0.13 |
% |
|
|
0.15 |
% |
|
Customers Bank Capital Ratios (3): |
|
|
|
|
|
|
|
|
|
|||||||||||
Common equity Tier 1 capital to risk-weighted assets |
|
14.0 |
% |
|
|
13.77 |
% |
|
|
12.97 |
% |
|
|
11.96 |
% |
|
|
11.31 |
% |
|
Tier 1 capital to risk-weighted assets |
|
14.0 |
% |
|
|
13.77 |
% |
|
|
12.97 |
% |
|
|
11.96 |
% |
|
|
11.31 |
% |
|
Total capital to risk-weighted assets |
|
15.7 |
% |
|
|
15.28 |
% |
|
|
14.45 |
% |
|
|
13.38 |
% |
|
|
12.64 |
% |
|
Tier 1 capital to average assets (leverage ratio) |
|
8.8 |
% |
|
|
8.71 |
% |
|
|
8.25 |
% |
|
|
8.00 |
% |
|
|
8.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Metric is a spot balance for the last day of each quarter presented. |
||||||||||||||||||||
(2) Customers’ reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document. |
||||||||||||||||||||
(3) Regulatory capital ratios are estimated for Q1 2024 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until |
|
||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED |
||||||||||||||||||
(Dollars in thousands, except per share data) |
||||||||||||||||||
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|||||||||
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|||||||||
Loans and leases |
$ |
217,999 |
|
|
$ |
239,453 |
|
|
$ |
271,107 |
|
|
$ |
241,745 |
|
|
$ |
244,212 |
Investment securities |
|
46,802 |
|
|
|
51,074 |
|
|
|
54,243 |
|
|
|
48,026 |
|
|
|
47,316 |
Interest earning deposits |
|
52,817 |
|
|
|
44,104 |
|
|
|
43,800 |
|
|
|
27,624 |
|
|
|
10,395 |
Loans held for sale |
|
12,048 |
|
|
|
8,707 |
|
|
|
4,664 |
|
|
|
11,149 |
|
|
|
11,701 |
Other |
|
2,111 |
|
|
|
2,577 |
|
|
|
2,526 |
|
|
|
1,616 |
|
|
|
1,321 |
Total interest income |
|
331,777 |
|
|
|
345,915 |
|
|
|
376,340 |
|
|
|
330,160 |
|
|
|
314,945 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|||||||||
Deposits |
|
153,725 |
|
|
|
150,307 |
|
|
|
145,825 |
|
|
|
136,375 |
|
|
|
143,930 |
FHLB advances |
|
13,485 |
|
|
|
18,868 |
|
|
|
26,485 |
|
|
|
24,285 |
|
|
|
10,370 |
FRB advances |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,286 |
Subordinated debt |
|
2,689 |
|
|
|
2,688 |
|
|
|
2,689 |
|
|
|
2,689 |
|
|
|
2,689 |
Other borrowings |
|
1,493 |
|
|
|
1,546 |
|
|
|
1,568 |
|
|
|
1,540 |
|
|
|
1,771 |
Total interest expense |
|
171,392 |
|
|
|
173,409 |
|
|
|
176,567 |
|
|
|
164,889 |
|
|
|
165,046 |
Net interest income |
|
160,385 |
|
|
|
172,506 |
|
|
|
199,773 |
|
|
|
165,271 |
|
|
|
149,899 |
Provision for credit losses |
|
17,070 |
|
|
|
13,523 |
|
|
|
17,856 |
|
|
|
23,629 |
|
|
|
19,603 |
Net interest income after provision for credit losses |
|
143,315 |
|
|
|
158,983 |
|
|
|
181,917 |
|
|
|
141,642 |
|
|
|
130,296 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-interest income: |
|
|
|
|
|
|
|
|
|
|||||||||
Commercial lease income |
|
9,683 |
|
|
|
9,035 |
|
|
|
8,901 |
|
|
|
8,917 |
|
|
|
9,326 |
Loan fees |
|
5,280 |
|
|
|
5,926 |
|
|
|
6,029 |
|
|
|
4,271 |
|
|
|
3,990 |
Bank-owned life insurance |
|
3,261 |
|
|
|
2,160 |
|
|
|
1,973 |
|
|
|
4,997 |
|
|
|
2,647 |
Mortgage finance transactional fees |
|
946 |
|
|
|
927 |
|
|
|
1,018 |
|
|
|
1,376 |
|
|
|
1,074 |
Gain (loss) on sale of loans |
|
10 |
|
|
|
(91 |
) |
|
|
(348 |
) |
|
|
(761 |
) |
|
|
— |
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,037 |
) |
|
|
— |
Net gain (loss) on sale of investment securities |
|
(30 |
) |
|
|
(145 |
) |
|
|
(429 |
) |
|
|
— |
|
|
|
— |
Other |
|
2,081 |
|
|
|
860 |
|
|
|
631 |
|
|
|
2,234 |
|
|
|
1,084 |
Total non-interest income |
|
21,231 |
|
|
|
18,672 |
|
|
|
17,775 |
|
|
|
15,997 |
|
|
|
18,121 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|||||||||
Salaries and employee benefits |
|
36,025 |
|
|
|
33,965 |
|
|
|
33,845 |
|
|
|
33,120 |
|
|
|
32,345 |
Technology, communication and bank operations |
|
21,904 |
|
|
|
16,887 |
|
|
|
15,667 |
|
|
|
16,407 |
|
|
|
16,589 |
Commercial lease depreciation |
|
7,970 |
|
|
|
7,357 |
|
|
|
7,338 |
|
|
|
7,328 |
|
|
|
7,875 |
Professional services |
|
6,353 |
|
|
|
9,820 |
|
|
|
8,569 |
|
|
|
9,192 |
|
|
|
7,596 |
Loan servicing |
|
4,031 |
|
|
|
3,779 |
|
|
|
3,858 |
|
|
|
4,777 |
|
|
|
4,661 |
Occupancy |
|
2,347 |
|
|
|
2,320 |
|
|
|
2,471 |
|
|
|
2,519 |
|
|
|
2,760 |
|
|
13,469 |
|
|
|
13,977 |
|
|
|
8,551 |
|
|
|
9,780 |
|
|
|
2,728 |
Advertising and promotion |
|
682 |
|
|
|
850 |
|
|
|
650 |
|
|
|
546 |
|
|
|
1,049 |
Legal settlement expense |
|
— |
|
|
|
— |
|
|
|
4,096 |
|
|
|
— |
|
|
|
— |
Other |
|
6,388 |
|
|
|
4,812 |
|
|
|
4,421 |
|
|
|
5,628 |
|
|
|
4,530 |
Total non-interest expense |
|
99,169 |
|
|
|
93,767 |
|
|
|
89,466 |
|
|
|
89,297 |
|
|
|
80,133 |
Income before income tax expense |
|
65,377 |
|
|
|
83,888 |
|
|
|
110,226 |
|
|
|
68,342 |
|
|
|
68,284 |
Income tax expense |
|
15,651 |
|
|
|
21,796 |
|
|
|
23,470 |
|
|
|
20,768 |
|
|
|
14,563 |
Net income |
|
49,726 |
|
|
|
62,092 |
|
|
|
86,756 |
|
|
|
47,574 |
|
|
|
53,721 |
Preferred stock dividends |
|
3,800 |
|
|
|
3,869 |
|
|
|
3,803 |
|
|
|
3,567 |
|
|
|
3,456 |
Net income available to common shareholders |
$ |
45,926 |
|
|
$ |
58,223 |
|
|
$ |
82,953 |
|
|
$ |
44,007 |
|
|
$ |
50,265 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic earnings per common share |
$ |
1.46 |
|
|
$ |
1.86 |
|
|
$ |
2.65 |
|
|
$ |
1.41 |
|
|
$ |
1.58 |
Diluted earnings per common share |
|
1.40 |
|
|
|
1.79 |
|
|
|
2.58 |
|
|
|
1.39 |
|
|
|
1.55 |
|
|||||||||||||||||||
CONSOLIDATED BALANCE SHEET - UNAUDITED |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
51,974 |
|
|
$ |
45,210 |
|
|
$ |
68,288 |
|
|
$ |
54,127 |
|
|
$ |
77,251 |
|
Interest earning deposits |
|
3,649,146 |
|
|
|
3,801,136 |
|
|
|
3,351,686 |
|
|
|
3,101,097 |
|
|
|
1,969,434 |
|
Cash and cash equivalents |
|
3,701,120 |
|
|
|
3,846,346 |
|
|
|
3,419,974 |
|
|
|
3,155,224 |
|
|
|
2,046,685 |
|
Investment securities, at fair value |
|
2,604,868 |
|
|
|
2,405,640 |
|
|
|
2,773,207 |
|
|
|
2,824,638 |
|
|
|
2,926,969 |
|
Investment securities held to maturity |
|
1,032,037 |
|
|
|
1,103,170 |
|
|
|
1,178,370 |
|
|
|
1,258,560 |
|
|
|
870,294 |
|
Loans held for sale |
|
357,640 |
|
|
|
340,317 |
|
|
|
150,368 |
|
|
|
78,108 |
|
|
|
424,057 |
|
Loans and leases receivable |
|
11,936,621 |
|
|
|
11,963,855 |
|
|
|
12,600,548 |
|
|
|
12,826,531 |
|
|
|
13,391,610 |
|
Loans receivable, mortgage finance, at fair value |
|
962,610 |
|
|
|
897,912 |
|
|
|
962,566 |
|
|
|
1,006,268 |
|
|
|
1,247,367 |
|
Allowance for credit losses on loans and leases |
|
(133,296 |
) |
|
|
(135,311 |
) |
|
|
(139,213 |
) |
|
|
(139,656 |
) |
|
|
(130,281 |
) |
Total loans and leases receivable, net of allowance for credit losses on loans and leases |
|
12,765,935 |
|
|
|
12,726,456 |
|
|
|
13,423,901 |
|
|
|
13,693,143 |
|
|
|
14,508,696 |
|
FHLB, |
|
100,067 |
|
|
|
109,548 |
|
|
|
126,098 |
|
|
|
126,240 |
|
|
|
124,733 |
|
Accrued interest receivable |
|
120,123 |
|
|
|
114,766 |
|
|
|
123,984 |
|
|
|
119,501 |
|
|
|
123,754 |
|
Bank premises and equipment, net |
|
7,253 |
|
|
|
7,371 |
|
|
|
7,789 |
|
|
|
8,031 |
|
|
|
8,581 |
|
Bank-owned life insurance |
|
293,400 |
|
|
|
292,193 |
|
|
|
291,670 |
|
|
|
290,322 |
|
|
|
339,607 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
Other assets |
|
361,295 |
|
|
|
366,829 |
|
|
|
358,162 |
|
|
|
471,169 |
|
|
|
374,609 |
|
Total assets |
$ |
21,347,367 |
|
|
$ |
21,316,265 |
|
|
$ |
21,857,152 |
|
|
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Demand, non-interest bearing deposits |
$ |
4,688,880 |
|
|
$ |
4,422,494 |
|
|
$ |
4,758,682 |
|
|
$ |
4,490,198 |
|
|
$ |
3,487,517 |
|
Interest bearing deposits |
|
13,272,503 |
|
|
|
13,497,742 |
|
|
|
13,436,682 |
|
|
|
13,460,233 |
|
|
|
14,236,100 |
|
Total deposits |
|
17,961,383 |
|
|
|
17,920,236 |
|
|
|
18,195,364 |
|
|
|
17,950,431 |
|
|
|
17,723,617 |
|
FHLB advances |
|
1,195,088 |
|
|
|
1,203,207 |
|
|
|
1,529,839 |
|
|
|
2,046,142 |
|
|
|
2,052,143 |
|
Other borrowings |
|
123,905 |
|
|
|
123,840 |
|
|
|
123,775 |
|
|
|
123,710 |
|
|
|
123,645 |
|
Subordinated debt |
|
182,300 |
|
|
|
182,230 |
|
|
|
182,161 |
|
|
|
182,091 |
|
|
|
182,021 |
|
Accrued interest payable and other liabilities |
|
193,074 |
|
|
|
248,358 |
|
|
|
264,406 |
|
|
|
269,539 |
|
|
|
249,168 |
|
Total liabilities |
|
19,655,750 |
|
|
|
19,677,871 |
|
|
|
20,295,545 |
|
|
|
20,571,913 |
|
|
|
20,330,594 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
Common stock |
|
35,540 |
|
|
|
35,459 |
|
|
|
35,330 |
|
|
|
35,301 |
|
|
|
35,258 |
|
Additional paid in capital |
|
567,490 |
|
|
|
564,538 |
|
|
|
559,346 |
|
|
|
555,737 |
|
|
|
552,255 |
|
Retained earnings |
|
1,205,508 |
|
|
|
1,159,582 |
|
|
|
1,101,359 |
|
|
|
1,018,406 |
|
|
|
974,399 |
|
Accumulated other comprehensive income (loss), net |
|
(132,305 |
) |
|
|
(136,569 |
) |
|
|
(149,812 |
) |
|
|
(168,176 |
) |
|
|
(156,276 |
) |
|
|
(122,410 |
) |
|
|
(122,410 |
) |
|
|
(122,410 |
) |
|
|
(122,410 |
) |
|
|
(122,410 |
) |
Total shareholders’ equity |
|
1,691,617 |
|
|
|
1,638,394 |
|
|
|
1,561,607 |
|
|
|
1,456,652 |
|
|
|
1,421,020 |
|
Total liabilities and shareholders’ equity |
$ |
21,347,367 |
|
|
$ |
21,316,265 |
|
|
$ |
21,857,152 |
|
|
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
||||||||||||||||||||||||||
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED |
||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
|
Average Balance |
|
Interest Income or Expense |
|
Average Yield or Cost (%) |
|
Average Balance |
|
Interest Income or Expense |
|
Average Yield or Cost (%) |
|
Average Balance |
|
Interest Income or Expense |
|
Average Yield or Cost (%) |
|||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest earning deposits |
$ |
3,865,028 |
|
$ |
52,817 |
|
5.50 |
% |
|
$ |
3,191,677 |
|
$ |
44,104 |
|
5.48 |
% |
|
$ |
914,149 |
|
$ |
10,395 |
|
4.61 |
% |
Investment securities (1) |
|
3,771,097 |
|
|
46,802 |
|
4.99 |
% |
|
|
4,007,418 |
|
|
51,074 |
|
5.10 |
% |
|
|
4,031,247 |
|
|
47,316 |
|
4.69 |
% |
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Specialized lending loans and leases (2) |
|
5,268,345 |
|
|
115,590 |
|
8.82 |
% |
|
|
5,574,149 |
|
|
130,838 |
|
9.31 |
% |
|
|
5,694,168 |
|
|
103,688 |
|
7.38 |
% |
Other commercial & industrial loans (2)(3) |
|
1,654,665 |
|
|
26,714 |
|
6.49 |
% |
|
|
1,666,052 |
|
|
28,053 |
|
6.68 |
% |
|
|
2,594,440 |
|
|
49,121 |
|
7.68 |
% |
Mortgage finance loans |
|
1,033,177 |
|
|
12,830 |
|
4.99 |
% |
|
|
997,353 |
|
|
13,726 |
|
5.46 |
% |
|
|
1,262,139 |
|
|
17,412 |
|
5.59 |
% |
Multifamily loans |
|
2,121,650 |
|
|
21,255 |
|
4.03 |
% |
|
|
2,131,750 |
|
|
22,347 |
|
4.16 |
% |
|
|
2,206,600 |
|
|
20,470 |
|
3.76 |
% |
Non-owner occupied commercial real estate loans |
|
1,348,468 |
|
|
20,179 |
|
6.02 |
% |
|
|
1,392,684 |
|
|
20,686 |
|
5.89 |
% |
|
|
1,449,722 |
|
|
20,199 |
|
5.65 |
% |
Residential mortgages |
|
522,528 |
|
|
5,708 |
|
4.39 |
% |
|
|
526,422 |
|
|
5,942 |
|
4.48 |
% |
|
|
542,909 |
|
|
5,598 |
|
4.18 |
% |
Installment loans |
|
1,179,721 |
|
|
27,771 |
|
9.47 |
% |
|
|
1,198,043 |
|
|
26,568 |
|
8.80 |
% |
|
|
1,727,995 |
|
|
39,425 |
|
9.25 |
% |
Total loans and leases (4) |
|
13,128,554 |
|
|
230,047 |
|
7.05 |
% |
|
|
13,486,453 |
|
|
248,160 |
|
7.30 |
% |
|
|
15,477,973 |
|
|
255,913 |
|
6.70 |
% |
Other interest-earning assets |
|
107,525 |
|
|
2,111 |
|
7.90 |
% |
|
|
116,756 |
|
|
2,577 |
|
8.75 |
% |
|
|
91,308 |
|
|
1,321 |
|
5.87 |
% |
Total interest-earning assets |
|
20,872,204 |
|
|
331,777 |
|
6.39 |
% |
|
|
20,802,304 |
|
|
345,915 |
|
6.61 |
% |
|
|
20,514,677 |
|
|
314,945 |
|
6.21 |
% |
Non-interest-earning assets |
|
463,025 |
|
|
|
|
|
|
449,969 |
|
|
|
|
|
|
538,243 |
|
|
|
|
||||||
Total assets |
$ |
21,335,229 |
|
|
|
|
|
$ |
21,252,273 |
|
|
|
|
|
$ |
21,052,920 |
|
|
|
|
||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest checking accounts |
$ |
5,538,846 |
|
$ |
61,531 |
|
4.47 |
% |
|
$ |
5,656,212 |
|
$ |
62,041 |
|
4.35 |
% |
|
$ |
7,494,379 |
|
$ |
70,485 |
|
3.81 |
% |
Money market deposit accounts |
|
3,233,103 |
|
|
36,811 |
|
4.58 |
% |
|
|
2,802,309 |
|
|
29,990 |
|
4.25 |
% |
|
|
2,470,004 |
|
|
20,783 |
|
3.41 |
% |
Other savings accounts |
|
1,753,118 |
|
|
21,399 |
|
4.91 |
% |
|
|
1,218,118 |
|
|
13,849 |
|
4.51 |
% |
|
|
822,312 |
|
|
6,286 |
|
3.10 |
% |
Certificates of deposit |
|
2,750,788 |
|
|
33,984 |
|
4.97 |
% |
|
|
3,625,311 |
|
|
44,427 |
|
4.86 |
% |
|
|
4,504,333 |
|
|
46,376 |
|
4.18 |
% |
Total interest-bearing deposits (5) |
|
13,275,855 |
|
|
153,725 |
|
4.66 |
% |
|
|
13,301,950 |
|
|
150,307 |
|
4.48 |
% |
|
|
15,291,028 |
|
|
143,930 |
|
3.82 |
% |
Federal funds purchased |
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
— |
% |
|
|
15,333 |
|
|
188 |
|
4.97 |
% |
Borrowings |
|
1,506,707 |
|
|
17,667 |
|
4.72 |
% |
|
|
1,816,047 |
|
|
23,102 |
|
5.05 |
% |
|
|
1,788,116 |
|
|
20,928 |
|
4.75 |
% |
Total interest-bearing liabilities |
|
14,782,562 |
|
|
171,392 |
|
4.66 |
% |
|
|
15,117,997 |
|
|
173,409 |
|
4.55 |
% |
|
|
17,094,477 |
|
|
165,046 |
|
3.91 |
% |
Non-interest-bearing deposits (5) |
|
4,620,986 |
|
|
|
|
|
|
4,270,557 |
|
|
|
|
|
|
2,299,295 |
|
|
|
|
||||||
Total deposits and borrowings |
|
19,403,548 |
|
|
|
3.55 |
% |
|
|
19,388,554 |
|
|
|
3.55 |
% |
|
|
19,393,772 |
|
|
|
3.45 |
% |
|||
Other non-interest-bearing liabilities |
|
264,677 |
|
|
|
|
|
|
276,198 |
|
|
|
|
|
|
247,575 |
|
|
|
|
||||||
Total liabilities |
|
19,668,225 |
|
|
|
|
|
|
19,664,752 |
|
|
|
|
|
|
19,641,347 |
|
|
|
|
||||||
Shareholders’ equity |
|
1,667,004 |
|
|
|
|
|
|
1,587,521 |
|
|
|
|
|
|
1,411,573 |
|
|
|
|
||||||
Total liabilities and shareholders’ equity |
$ |
21,335,229 |
|
|
|
|
|
$ |
21,252,273 |
|
|
|
|
|
$ |
21,052,920 |
|
|
|
|
||||||
Net interest income |
|
|
|
160,385 |
|
|
|
|
|
|
172,506 |
|
|
|
|
|
|
149,899 |
|
|
||||||
Tax-equivalent adjustment |
|
|
|
394 |
|
|
|
|
|
|
398 |
|
|
|
|
|
|
375 |
|
|
||||||
Net interest earnings |
|
|
$ |
160,779 |
|
|
|
|
|
$ |
172,904 |
|
|
|
|
|
$ |
150,274 |
|
|
||||||
Interest spread |
|
|
|
|
2.84 |
% |
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
2.76 |
% |
||||||
Net interest margin |
|
|
|
|
3.09 |
% |
|
|
|
|
|
3.30 |
% |
|
|
|
|
|
2.95 |
% |
||||||
Net interest margin tax equivalent (6) |
|
|
|
|
3.10 |
% |
|
|
|
|
|
3.31 |
% |
|
|
|
|
|
2.96 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. |
||||||||||||||||||||||||||
(2) Includes owner occupied commercial real estate loans. |
||||||||||||||||||||||||||
(3) Includes PPP loans. |
||||||||||||||||||||||||||
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees. |
||||||||||||||||||||||||||
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.45%, 3.39% and 3.32% for the three months ended |
||||||||||||||||||||||||||
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended |
|
||||||||||||||
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED |
||||||||||||||
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|||||
Loans and leases held for investment |
|
|
|
|
|
|
|
|
|
|||||
Commercial: |
|
|
|
|
|
|
|
|
|
|||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|||||
Specialized lending |
$ |
5,104,405 |
|
$ |
5,006,693 |
|
$ |
5,422,161 |
|
$ |
5,534,832 |
|
$ |
5,519,176 |
Other commercial & industrial (1) |
|
1,113,517 |
|
|
1,162,317 |
|
|
1,252,427 |
|
|
1,240,908 |
|
|
1,414,419 |
Mortgage finance |
|
1,071,146 |
|
|
1,014,742 |
|
|
1,042,549 |
|
|
1,108,598 |
|
|
1,374,894 |
Multifamily |
|
2,123,675 |
|
|
2,138,622 |
|
|
2,130,213 |
|
|
2,151,734 |
|
|
2,195,211 |
Commercial real estate owner occupied |
|
806,278 |
|
|
797,319 |
|
|
794,815 |
|
|
842,042 |
|
|
895,314 |
Commercial real estate non-owner occupied |
|
1,182,084 |
|
|
1,177,650 |
|
|
1,178,203 |
|
|
1,211,091 |
|
|
1,245,248 |
Construction |
|
185,601 |
|
|
166,393 |
|
|
252,588 |
|
|
212,214 |
|
|
188,123 |
Total commercial loans and leases |
|
11,586,706 |
|
|
11,463,736 |
|
|
12,072,956 |
|
|
12,301,419 |
|
|
12,832,385 |
Consumer: |
|
|
|
|
|
|
|
|
|
|||||
Residential |
|
482,537 |
|
|
484,435 |
|
|
483,133 |
|
|
487,199 |
|
|
494,815 |
Manufactured housing |
|
37,382 |
|
|
38,670 |
|
|
40,129 |
|
|
41,664 |
|
|
43,272 |
Installment: |
|
|
|
|
|
|
|
|
|
|||||
Personal |
|
492,892 |
|
|
555,533 |
|
|
629,843 |
|
|
752,470 |
|
|
849,420 |
Other |
|
299,714 |
|
|
319,393 |
|
|
337,053 |
|
|
250,047 |
|
|
419,085 |
Total installment loans |
|
792,606 |
|
|
874,926 |
|
|
966,896 |
|
|
1,002,517 |
|
|
1,268,505 |
Total consumer loans |
|
1,312,525 |
|
|
1,398,031 |
|
|
1,490,158 |
|
|
1,531,380 |
|
|
1,806,592 |
Total loans and leases held for investment |
$ |
12,899,231 |
|
$ |
12,861,767 |
|
$ |
13,563,114 |
|
$ |
13,832,799 |
|
$ |
14,638,977 |
|
|
|
|
|
|
|
|
|
|
|||||
Loans held for sale |
|
|
|
|
|
|
|
|
|
|||||
Commercial: |
|
|
|
|
|
|
|
|
|
|||||
Multifamily |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
4,051 |
Commercial real estate non-owner occupied |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
16,000 |
Total commercial loans and leases |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
20,051 |
Consumer: |
|
|
|
|
|
|
|
|
|
|||||
Residential |
|
870 |
|
|
1,215 |
|
|
1,005 |
|
|
1,234 |
|
|
821 |
Installment: |
|
|
|
|
|
|
|
|
|
|||||
Personal |
|
137,755 |
|
|
151,040 |
|
|
124,848 |
|
|
76,874 |
|
|
307,336 |
Other |
|
219,015 |
|
|
188,062 |
|
|
24,515 |
|
|
— |
|
|
95,849 |
Total installment loans |
|
356,770 |
|
|
339,102 |
|
|
149,363 |
|
|
76,874 |
|
|
403,185 |
Total consumer loans |
|
357,640 |
|
|
340,317 |
|
|
150,368 |
|
|
78,108 |
|
|
404,006 |
Total loans held for sale |
$ |
357,640 |
|
$ |
340,317 |
|
$ |
150,368 |
|
$ |
78,108 |
|
$ |
424,057 |
|
|
|
|
|
|
|
|
|
|
|||||
Total loans and leases portfolio |
$ |
13,256,871 |
|
$ |
13,202,084 |
|
$ |
13,713,482 |
|
$ |
13,910,907 |
|
$ |
15,063,034 |
(1) Includes PPP loans. |
|
||||||||||||||
PERIOD END DEPOSIT COMPOSITION - UNAUDITED |
||||||||||||||
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Demand, non-interest bearing |
$ |
4,688,880 |
|
$ |
4,422,494 |
|
$ |
4,758,682 |
|
$ |
4,490,198 |
|
$ |
3,487,517 |
Demand, interest bearing |
|
5,661,775 |
|
|
5,580,527 |
|
|
5,824,410 |
|
|
5,551,037 |
|
|
5,791,302 |
Total demand deposits |
|
10,350,655 |
|
|
10,003,021 |
|
|
10,583,092 |
|
|
10,041,235 |
|
|
9,278,819 |
Savings |
|
2,080,374 |
|
|
1,402,941 |
|
|
1,118,353 |
|
|
1,048,229 |
|
|
924,359 |
Money market |
|
3,347,843 |
|
|
3,226,395 |
|
|
2,499,593 |
|
|
2,004,264 |
|
|
2,019,633 |
Time deposits |
|
2,182,511 |
|
|
3,287,879 |
|
|
3,994,326 |
|
|
4,856,703 |
|
|
5,500,806 |
Total deposits |
$ |
17,961,383 |
|
$ |
17,920,236 |
|
$ |
18,195,364 |
|
$ |
17,950,431 |
|
$ |
17,723,617 |
|
|
||||||||||||||||||||||||||||||||||||||||||||
ASSET QUALITY - UNAUDITED |
|
||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) |
As of |
|
As of |
|
As of |
|
|||||||||||||||||||||||||||||||||||||||
|
Total loans |
|
Non accrual /NPLs |
|
Allowance for credit losses |
|
Total NPLs to total loans |
|
Total reserves to total NPLs |
|
Total loans |
|
Non accrual /NPLs |
|
Allowance for credit losses |
|
Total NPLs to total loans |
|
Total reserves to total NPLs |
|
Total loans |
|
Non accrual /NPLs |
|
Allowance for credit losses |
|
Total NPLs to total loans |
|
Total reserves to total NPLs |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Loan type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial & industrial, including specialized lending (1) |
$ |
6,326,458 |
|
$ |
3,608 |
|
$ |
23,003 |
|
0.06 |
% |
|
637.56 |
% |
|
$ |
6,285,840 |
|
$ |
4,436 |
|
$ |
23,503 |
|
0.07 |
% |
|
529.82 |
% |
|
$ |
7,061,122 |
|
$ |
3,886 |
|
$ |
20,050 |
|
0.06 |
% |
|
515.95 |
% |
|
Multifamily |
|
2,123,675 |
|
|
5,161 |
|
|
18,307 |
|
0.24 |
% |
|
354.72 |
% |
|
|
2,138,622 |
|
|
— |
|
|
16,343 |
|
— |
% |
|
— |
% |
|
|
2,195,211 |
|
|
881 |
|
|
15,084 |
|
0.04 |
% |
|
1712.15 |
% |
|
Commercial real estate owner occupied |
|
806,278 |
|
|
8,920 |
|
|
10,201 |
|
1.11 |
% |
|
114.36 |
% |
|
|
797,319 |
|
|
5,869 |
|
|
9,882 |
|
0.74 |
% |
|
168.38 |
% |
|
|
895,314 |
|
|
3,621 |
|
|
8,472 |
|
0.40 |
% |
|
233.97 |
% |
|
Commercial real estate non-owner occupied |
|
1,182,084 |
|
|
62 |
|
|
18,320 |
|
0.01 |
% |
|
29548.39 |
% |
|
|
1,177,650 |
|
|
— |
|
|
16,859 |
|
— |
% |
|
— |
% |
|
|
1,245,248 |
|
|
— |
|
|
11,032 |
|
— |
% |
|
— |
% |
|
Construction |
|
185,601 |
|
|
— |
|
|
1,866 |
|
— |
% |
|
— |
% |
|
|
166,393 |
|
|
— |
|
|
1,482 |
|
— |
% |
|
— |
% |
|
|
188,123 |
|
|
— |
|
|
2,336 |
|
— |
% |
|
— |
% |
|
Total commercial loans and leases receivable |
|
10,624,096 |
|
|
17,751 |
|
|
71,697 |
|
0.17 |
% |
|
403.90 |
% |
|
|
10,565,824 |
|
|
10,305 |
|
|
68,069 |
|
0.10 |
% |
|
660.54 |
% |
|
|
11,585,018 |
|
|
8,388 |
|
|
56,974 |
|
0.07 |
% |
|
679.23 |
% |
|
Residential |
|
482,537 |
|
|
8,089 |
|
|
6,707 |
|
1.68 |
% |
|
82.92 |
% |
|
|
484,435 |
|
|
6,802 |
|
|
6,586 |
|
1.40 |
% |
|
96.82 |
% |
|
|
494,815 |
|
|
6,473 |
|
|
6,853 |
|
1.31 |
% |
|
105.87 |
% |
|
Manufactured housing |
|
37,382 |
|
|
2,268 |
|
|
4,160 |
|
6.07 |
% |
|
183.42 |
% |
|
|
38,670 |
|
|
2,331 |
|
|
4,239 |
|
6.03 |
% |
|
181.85 |
% |
|
|
43,272 |
|
|
2,568 |
|
|
4,339 |
|
5.93 |
% |
|
168.96 |
% |
|
Installment |
|
792,606 |
|
|
6,958 |
|
|
50,732 |
|
0.88 |
% |
|
729.12 |
% |
|
|
874,926 |
|
|
7,211 |
|
|
56,417 |
|
0.82 |
% |
|
782.37 |
% |
|
|
1,268,505 |
|
|
8,720 |
|
|
62,115 |
|
0.69 |
% |
|
712.33 |
% |
|
Total consumer loans receivable |
|
1,312,525 |
|
|
17,315 |
|
|
61,599 |
|
1.32 |
% |
|
355.76 |
% |
|
|
1,398,031 |
|
|
16,344 |
|
|
67,242 |
|
1.17 |
% |
|
411.42 |
% |
|
|
1,806,592 |
|
|
17,761 |
|
|
73,307 |
|
0.98 |
% |
|
412.74 |
% |
|
Loans and leases receivable |
|
11,936,621 |
|
|
35,066 |
|
|
133,296 |
|
0.29 |
% |
|
380.13 |
% |
|
|
11,963,855 |
|
|
26,649 |
|
|
135,311 |
|
0.22 |
% |
|
507.75 |
% |
|
|
13,391,610 |
|
|
26,149 |
|
|
130,281 |
|
0.20 |
% |
|
498.23 |
% |
|
Loans receivable, mortgage finance, at fair value |
|
962,610 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
897,912 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
1,247,367 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
Loans held for sale |
|
357,640 |
|
|
588 |
|
|
— |
|
0.16 |
% |
|
— |
% |
|
|
340,317 |
|
|
461 |
|
|
— |
|
0.14 |
% |
|
— |
% |
|
|
424,057 |
|
|
5,975 |
|
|
— |
|
1.41 |
% |
|
— |
% |
|
Total portfolio |
$ |
13,256,871 |
|
$ |
35,654 |
|
$ |
133,296 |
|
0.27 |
% |
|
373.86 |
% |
|
$ |
13,202,084 |
|
$ |
27,110 |
|
$ |
135,311 |
|
0.21 |
% |
|
499.12 |
% |
|
$ |
15,063,034 |
|
$ |
32,124 |
|
$ |
130,281 |
|
0.21 |
% |
|
405.56 |
% |
|
(1) Includes PPP loans. |
|
|||||||||||||||||
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED |
|||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
||||||||
|
2024 |
|
2023 |
|
2023 |
|
2023 (1) |
|
2023 |
||||||||
Loan type |
|
|
|
|
|
|
|
|
|
||||||||
Commercial & industrial, including specialized lending |
$ |
3,672 |
|
$ |
5,282 |
|
|
$ |
2,974 |
|
$ |
258 |
|
|
$ |
(71 |
) |
Multifamily |
|
473 |
|
|
127 |
|
|
|
1,999 |
|
|
1,448 |
|
|
|
— |
|
Commercial real estate owner occupied |
|
22 |
|
|
— |
|
|
|
39 |
|
|
(34 |
) |
|
|
— |
|
Commercial real estate non-owner occupied |
|
— |
|
|
(288 |
) |
|
|
— |
|
|
266 |
|
|
|
4,234 |
|
Construction |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(116 |
) |
Residential |
|
18 |
|
|
(1 |
) |
|
|
13 |
|
|
24 |
|
|
|
(2 |
) |
Installment |
|
13,783 |
|
|
12,202 |
|
|
|
12,473 |
|
|
13,602 |
|
|
|
14,606 |
|
Total net charge-offs (recoveries) from loans held for investment |
$ |
17,968 |
|
$ |
17,322 |
|
|
$ |
17,498 |
|
$ |
15,564 |
|
|
$ |
18,651 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Excludes |
|
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED |
We believe that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP.
The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.
Core Earnings and Adjusted Core Earnings - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||||||||||||
(Dollars in thousands, except per share data) |
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
||||||||||||||
GAAP net income to common shareholders |
$ |
45,926 |
$ |
1.40 |
|
$ |
58,223 |
|
$ |
1.79 |
|
$ |
82,953 |
|
$ |
2.58 |
|
$ |
44,007 |
|
$ |
1.39 |
|
$ |
50,265 |
|
$ |
1.55 |
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Severance expense |
|
— |
|
— |
|
|
473 |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
141 |
|
|
0.00 |
|
|
637 |
|
|
0.02 |
Impairments on fixed assets and leases |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
|
0.00 |
|
|
86 |
|
|
0.00 |
Loss on sale of capital call lines of credit |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,914 |
|
|
0.12 |
|
|
— |
|
|
— |
(Gains) losses on investment securities |
|
57 |
|
0.00 |
|
|
(85 |
) |
|
0.00 |
|
|
492 |
|
|
0.02 |
|
|
49 |
|
|
0.00 |
|
|
(49 |
) |
|
0.00 |
Derivative credit valuation adjustment |
|
169 |
|
0.01 |
|
|
267 |
|
|
0.01 |
|
|
(151 |
) |
|
0.00 |
|
|
(101 |
) |
|
0.00 |
|
|
204 |
|
|
0.01 |
Tax on surrender of bank-owned life insurance policies |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,141 |
|
|
0.13 |
|
|
— |
|
|
— |
|
|
380 |
|
0.01 |
|
|
2,755 |
|
|
0.08 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Core earnings |
$ |
46,532 |
$ |
1.42 |
|
$ |
61,633 |
|
$ |
1.90 |
|
$ |
83,294 |
|
$ |
2.59 |
|
$ |
52,163 |
|
$ |
1.65 |
|
$ |
51,143 |
|
$ |
1.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
One-time non-interest expense items recorded during Q1 2024 (after-tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Deposit servicing fees prior to 2024 |
|
5,405 |
|
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
3,200 |
|
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total one-time non-interest expense items |
|
8,605 |
|
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted core earnings (adjusted for one-time non-interest expense items) |
$ |
55,137 |
$ |
1.68 |
|
|
|
|
|
|
|
|
|
|
|
|
Core Return on Average Assets and Adjusted Core Return on Average Assets - |
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
GAAP net income |
$ |
49,726 |
|
|
$ |
62,092 |
|
|
$ |
86,756 |
|
|
$ |
47,574 |
|
|
$ |
53,721 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
||||||||||
Severance expense |
|
— |
|
|
|
473 |
|
|
|
— |
|
|
|
141 |
|
|
|
637 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
|
|
86 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
57 |
|
|
|
(85 |
) |
|
|
492 |
|
|
|
49 |
|
|
|
(49 |
) |
Derivative credit valuation adjustment |
|
169 |
|
|
|
267 |
|
|
|
(151 |
) |
|
|
(101 |
) |
|
|
204 |
|
Tax on surrender of bank-owned life insurance policies |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
|
|
380 |
|
|
|
2,755 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Core net income |
$ |
50,332 |
|
|
$ |
65,502 |
|
|
$ |
87,097 |
|
|
$ |
55,730 |
|
|
$ |
54,599 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
One-time non-interest expense items recorded during Q1 2024 (after-tax): |
|
|
|
|
|
|
|
|
|
||||||||||
Deposit servicing fees prior to 2024 |
|
5,405 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
3,200 |
|
|
|
|
|
|
|
|
|
||||||||
Total one-time non-interest expense items |
|
8,605 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted core net income (adjusted for one-time non-interest expense items) |
$ |
58,937 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average total assets |
$ |
21,335,229 |
|
|
$ |
21,252,273 |
|
|
$ |
21,978,010 |
|
|
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core return on average assets |
|
0.95 |
% |
|
|
1.22 |
% |
|
|
1.57 |
% |
|
|
1.03 |
% |
|
|
1.05 |
% |
Adjusted core return on average assets (adjusted for one-time non-interest expense items) |
|
1.11 |
% |
|
|
|
|
|
|
|
|
Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - |
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
GAAP net income |
$ |
49,726 |
|
|
$ |
62,092 |
|
|
$ |
86,756 |
|
|
$ |
47,574 |
|
|
$ |
53,721 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
||||||||||
Income tax expense |
|
15,651 |
|
|
|
21,796 |
|
|
|
23,470 |
|
|
|
20,768 |
|
|
|
14,563 |
|
Provision (benefit) for credit losses |
|
17,070 |
|
|
|
13,523 |
|
|
|
17,856 |
|
|
|
23,629 |
|
|
|
19,603 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
430 |
|
|
|
(136 |
) |
|
|
48 |
|
|
|
(304 |
) |
|
|
280 |
|
Severance expense |
|
— |
|
|
|
639 |
|
|
|
— |
|
|
|
182 |
|
|
|
809 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
109 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
75 |
|
|
|
(114 |
) |
|
|
626 |
|
|
|
62 |
|
|
|
(62 |
) |
Derivative credit valuation adjustment |
|
222 |
|
|
|
361 |
|
|
|
(192 |
) |
|
|
(130 |
) |
|
|
259 |
|
|
|
500 |
|
|
|
3,723 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Core pre-tax pre-provision net income |
$ |
83,674 |
|
|
$ |
101,884 |
|
|
$ |
128,564 |
|
|
$ |
96,833 |
|
|
$ |
89,282 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
One-time non-interest expense items recorded during Q1 2024: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposit servicing fees prior to 2024 |
|
7,106 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
4,208 |
|
|
|
|
|
|
|
|
|
||||||||
Total one-time non-interest expense items |
|
11,314 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items) |
$ |
94,988 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average total assets |
$ |
21,335,229 |
|
|
$ |
21,252,273 |
|
|
$ |
21,978,010 |
|
|
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core pre-tax pre-provision ROAA |
|
1.58 |
% |
|
|
1.90 |
% |
|
|
2.32 |
% |
|
|
1.79 |
% |
|
|
1.72 |
% |
Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items) |
1.79 |
% |
Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - |
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
GAAP net income to common shareholders |
$ |
45,926 |
|
|
$ |
58,223 |
|
|
$ |
82,953 |
|
|
$ |
44,007 |
|
|
$ |
50,265 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
||||||||||
Severance expense |
|
— |
|
|
|
473 |
|
|
|
— |
|
|
|
141 |
|
|
|
637 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
|
|
86 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
57 |
|
|
|
(85 |
) |
|
|
492 |
|
|
|
49 |
|
|
|
(49 |
) |
Derivative credit valuation adjustment |
|
169 |
|
|
|
267 |
|
|
|
(151 |
) |
|
|
(101 |
) |
|
|
204 |
|
Tax on surrender of bank-owned life insurance policies |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
|
|
380 |
|
|
|
2,755 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Core earnings |
$ |
46,532 |
|
|
$ |
61,633 |
|
|
$ |
83,294 |
|
|
$ |
52,163 |
|
|
$ |
51,143 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
One-time non-interest expense items recorded during Q1 2024 (after-tax): |
|
|
|
|
|
|
|
|
|
||||||||||
Deposit servicing fees prior to 2024 |
|
5,405 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
3,200 |
|
|
|
|
|
|
|
|
|
||||||||
Total one-time non-interest expense items |
|
8,605 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted core earnings (adjusted for one-time non-interest expense items) |
$ |
55,137 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average total common shareholders’ equity |
$ |
1,529,211 |
|
|
$ |
1,449,728 |
|
|
$ |
1,373,244 |
|
|
$ |
1,335,408 |
|
|
$ |
1,273,780 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core return on average common equity |
|
12.24 |
% |
|
|
16.87 |
% |
|
|
24.06 |
% |
|
|
15.67 |
% |
|
|
16.28 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted core return on average common equity (adjusted for one-time non-interest expense items) |
|
14.50 |
% |
|
|
|
|
|
|
|
|
Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE - |
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
GAAP net income to common shareholders |
$ |
45,926 |
|
|
$ |
58,223 |
|
|
$ |
82,953 |
|
|
$ |
44,007 |
|
|
$ |
50,265 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
||||||||||
Income tax expense |
|
15,651 |
|
|
|
21,796 |
|
|
|
23,470 |
|
|
|
20,768 |
|
|
|
14,563 |
|
Provision (benefit) for credit losses |
|
17,070 |
|
|
|
13,523 |
|
|
|
17,856 |
|
|
|
23,629 |
|
|
|
19,603 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
430 |
|
|
|
(136 |
) |
|
|
48 |
|
|
|
(304 |
) |
|
|
280 |
|
Severance expense |
|
— |
|
|
|
639 |
|
|
|
— |
|
|
|
182 |
|
|
|
809 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
109 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
75 |
|
|
|
(114 |
) |
|
|
626 |
|
|
|
62 |
|
|
|
(62 |
) |
Derivative credit valuation adjustment |
|
222 |
|
|
|
361 |
|
|
|
(192 |
) |
|
|
(130 |
) |
|
|
259 |
|
|
|
500 |
|
|
|
3,723 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Core pre-tax pre-provision net income available to common shareholders |
$ |
79,874 |
|
|
$ |
98,015 |
|
|
$ |
124,761 |
|
|
$ |
93,266 |
|
|
$ |
85,826 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
One-time non-interest expense items recorded during Q1 2024: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposit servicing fees prior to 2024 |
|
7,106 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
4,208 |
|
|
|
|
|
|
|
|
|
||||||||
Total one-time non-interest expense items |
|
11,314 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted core pre-tax pre-provision net income available to common shareholders |
$ |
91,188 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average total common shareholders’ equity |
$ |
1,529,211 |
|
|
$ |
1,449,728 |
|
|
$ |
1,373,244 |
|
|
$ |
1,335,408 |
|
|
$ |
1,273,780 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core pre-tax pre-provision ROCE |
|
21.01 |
% |
|
|
26.82 |
% |
|
|
36.04 |
% |
|
|
28.01 |
% |
|
|
27.33 |
% |
Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items) |
23.98 |
% |
Core Efficiency Ratio and Adjusted Core Efficiency Ratio - |
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
GAAP net interest income |
$ |
160,385 |
|
|
$ |
172,506 |
|
|
$ |
199,773 |
|
|
$ |
165,271 |
|
|
$ |
149,899 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP non-interest income |
$ |
21,231 |
|
|
$ |
18,672 |
|
|
$ |
17,775 |
|
|
$ |
15,997 |
|
|
$ |
18,121 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
75 |
|
|
|
(114 |
) |
|
|
626 |
|
|
|
62 |
|
|
|
(62 |
) |
Derivative credit valuation adjustment |
|
222 |
|
|
|
361 |
|
|
|
(192 |
) |
|
|
(130 |
) |
|
|
259 |
|
Core non-interest income |
|
21,528 |
|
|
|
18,919 |
|
|
|
18,209 |
|
|
|
20,966 |
|
|
|
18,318 |
|
Core revenue |
$ |
181,913 |
|
|
$ |
191,425 |
|
|
$ |
217,982 |
|
|
$ |
186,237 |
|
|
$ |
168,217 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP non-interest expense |
$ |
99,169 |
|
|
$ |
93,767 |
|
|
$ |
89,466 |
|
|
$ |
89,297 |
|
|
$ |
80,133 |
|
Severance expense |
|
— |
|
|
|
(639 |
) |
|
|
— |
|
|
|
(182 |
) |
|
|
(809 |
) |
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15 |
) |
|
|
(109 |
) |
|
|
(500 |
) |
|
|
(3,723 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Core non-interest expense |
$ |
98,669 |
|
|
$ |
89,405 |
|
|
$ |
89,466 |
|
|
$ |
89,100 |
|
|
$ |
79,215 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
One-time non-interest expense items recorded during Q1 2024: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposit servicing fees prior to 2024 |
|
(7,106 |
) |
|
|
|
|
|
|
|
|
||||||||
|
|
(4,208 |
) |
|
|
|
|
|
|
|
|
||||||||
Total one-time non-interest expense items |
|
(11,314 |
) |
|
|
|
|
|
|
|
|
||||||||
Adjusted core non-interest expense |
$ |
87,355 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Core efficiency ratio (1) |
|
54.24 |
% |
|
|
46.70 |
% |
|
|
41.04 |
% |
|
|
47.84 |
% |
|
|
47.09 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted core efficiency ratio(adjusted for one-time non-interest expense items) (2) |
|
48.02 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue. |
|||||||||||||||||||
(2) Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue. |
Core Non-Interest Expense to Average Total Assets and Adjusted Core Non-Interest Expense to Average Total Assets- |
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
GAAP non-interest expense |
$ |
99,169 |
|
|
$ |
93,767 |
|
|
$ |
89,466 |
|
|
$ |
89,297 |
|
|
$ |
80,133 |
|
Severance expense |
|
— |
|
|
|
(639 |
) |
|
|
— |
|
|
|
(182 |
) |
|
|
(809 |
) |
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15 |
) |
|
|
(109 |
) |
|
|
(500 |
) |
|
|
(3,723 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Core non-interest expense |
$ |
98,669 |
|
|
$ |
89,405 |
|
|
$ |
89,466 |
|
|
$ |
89,100 |
|
|
$ |
79,215 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
One-time non-interest expense items recorded during Q1 2024: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposit servicing fees prior to 2024 |
|
(7,106 |
) |
|
|
|
|
|
|
|
|
||||||||
|
|
(4,208 |
) |
|
|
|
|
|
|
|
|
||||||||
Total one-time non-interest expense items |
|
(11,314 |
) |
|
|
|
|
|
|
|
|
||||||||
Adjusted core non-interest expense |
$ |
87,355 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average total assets |
$ |
21,335,229 |
|
|
$ |
21,252,273 |
|
|
$ |
21,978,010 |
|
|
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core non-interest expense to average total assets |
|
1.86 |
% |
|
|
1.67 |
% |
|
|
1.62 |
% |
|
|
1.65 |
% |
|
|
1.53 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items) |
|
1.65 |
% |
|
|
|
|
|
|
|
|
Business Unit Deposits (formerly, Core Deposits, Total Deposits, excluding Wholesale CDs and BMTX student deposits) - |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
(Dollars in thousands, except per share data) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|||||
Total deposits |
$ |
17,961,383 |
|
$ |
17,920,236 |
|
$ |
18,195,364 |
|
$ |
17,950,431 |
|
$ |
17,723,617 |
Reconciling items: |
|
|
|
|
|
|
|
|
|
|||||
Wholesale CDs |
|
1,809,573 |
|
|
2,970,615 |
|
|
3,713,933 |
|
|
4,651,054 |
|
|
5,311,083 |
BMTX student deposits |
|
850 |
|
|
1,157 |
|
|
636,951 |
|
|
407,118 |
|
|
506,922 |
Business Unit Deposits (formerly, Core Deposits, Total deposits, excluding wholesale CDs and BMTX student deposits) |
$ |
16,150,960 |
|
$ |
14,948,464 |
|
$ |
13,844,480 |
|
$ |
12,892,259 |
|
$ |
11,905,612 |
Tangible Common Equity to Tangible Assets - |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
GAAP total shareholders’ equity |
$ |
1,691,617 |
|
|
$ |
1,638,394 |
|
|
$ |
1,561,607 |
|
|
$ |
1,456,652 |
|
|
$ |
1,421,020 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
Tangible common equity |
$ |
1,550,194 |
|
|
$ |
1,496,971 |
|
|
$ |
1,420,184 |
|
|
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP total assets |
$ |
21,347,367 |
|
|
$ |
21,316,265 |
|
|
$ |
21,857,152 |
|
|
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
Tangible assets |
$ |
21,343,738 |
|
|
$ |
21,312,636 |
|
|
$ |
21,853,523 |
|
|
$ |
22,024,936 |
|
|
$ |
21,747,985 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity to tangible assets |
|
7.3 |
% |
|
|
7.0 |
% |
|
|
6.5 |
% |
|
|
6.0 |
% |
|
|
5.9 |
% |
Tangible Book Value per Common Share - |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except share and per share data) |
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
GAAP total shareholders’ equity |
$ |
1,691,617 |
|
|
$ |
1,638,394 |
|
|
$ |
1,561,607 |
|
|
$ |
1,456,652 |
|
|
$ |
1,421,020 |
|
Reconciling Items: |
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
Tangible common equity |
$ |
1,550,194 |
|
|
$ |
1,496,971 |
|
|
$ |
1,420,184 |
|
|
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shares outstanding |
|
31,521,931 |
|
|
|
31,440,906 |
|
|
|
31,311,254 |
|
|
|
31,282,318 |
|
|
|
31,239,750 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible book value per common share |
$ |
49.18 |
|
|
$ |
47.61 |
|
|
$ |
45.36 |
|
|
$ |
42.04 |
|
|
$ |
40.96 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424448900/en/
Source: