WaFd Continues Tracking to Plan Post-Acquisition; Announces Quarterly Earnings Per Share of $0.75
President and CEO
"Our margin for the quarter was 2.56% which we expect to be the nadir for this cycle (assuming no further interest rate increases) as we believe the benefits of both loan sales to be accretive to the margin going forward.
"Contrary to many headlines that are predicting credit challenges for banks, our asset quality is holding up very well. Loan delinquencies decreased from 0.36% at
"Tangible book value per share is a key metric for our management team and we took some dilution in completing the Luther Burbank acquisition in the March quarter. For the June quarter, tangible book value per share grew at a 8.2% annualized rate to
"We continue to invest in improvements to our technology to better serve our clients. Over the next few months, we will launch two new apps, a new mobile banking app and a new online account opening app, both built by our affiliate
As a result of the acquisition on
Customer deposits totaled
Borrowings totaled
The Company had loan originations of
Credit quality continues to be monitored closely in light of the shifting economic and monetary environment. As of
|
Non-Performing Assets |
|
Delinquencies |
||||
|
(In thousands) |
||||||
Balance at |
$ |
57,924 |
|
|
$ |
63,315 |
|
Decrease in balance |
|
(2,536 |
) |
|
|
(5,258 |
) |
Balance at |
|
55,388 |
|
|
|
58,057 |
|
Acquisition-related additions |
|
13,487 |
|
|
|
23,258 |
|
Decrease in balance |
|
(514 |
) |
|
|
(5,267 |
) |
Balance at |
|
68,361 |
|
|
|
76,048 |
|
Increase (decrease) in balance |
|
426 |
|
|
|
(29,328 |
) |
Balance at |
$ |
68,787 |
|
|
$ |
46,720 |
|
The allowance for credit losses including the reserve for unfunded commitments ("ACL") totaled
The Company paid quarterly dividends on Series A preferred stock on
Net interest income was
Total non-interest income was
Total non-interest expense was
The Company recorded a provision for credit losses of
The Company’s efficiency ratio in the third fiscal quarter of 2024 was 55.7% (as adjusted, see Non-GAAP Financial Measures below), compared to 58.5% as adjusted in the prior quarter and 51.9% for the same period one year ago.
Income tax expense totaled
WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) |
|||||||
|
|
|
|
||||
|
(In thousands, except share and ratio data) |
||||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
2,492,504 |
|
|
$ |
980,649 |
|
Available-for-sale securities, at fair value |
|
2,428,769 |
|
|
|
1,995,097 |
|
Held-to-maturity securities, at amortized cost |
|
447,638 |
|
|
|
423,586 |
|
Loans receivable, net of allowance for loan losses of |
|
20,873,919 |
|
|
|
17,476,550 |
|
Loans held for sale |
|
468,527 |
|
|
|
— |
|
Interest receivable |
|
103,410 |
|
|
|
87,003 |
|
Premises and equipment, net |
|
244,529 |
|
|
|
237,011 |
|
Real estate owned |
|
4,209 |
|
|
|
4,149 |
|
FHLB stock |
|
107,282 |
|
|
|
126,820 |
|
Bank owned life insurance |
|
265,819 |
|
|
|
242,919 |
|
Intangible assets, including goodwill of |
|
452,255 |
|
|
|
310,619 |
|
Federal and state income tax assets, net |
|
129,044 |
|
|
|
8,479 |
|
Other assets |
|
562,895 |
|
|
|
581,793 |
|
|
$ |
28,580,800 |
|
|
$ |
22,474,675 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Liabilities |
|
|
|
||||
Transaction deposits |
$ |
11,929,005 |
|
|
$ |
10,765,313 |
|
Time deposits |
|
9,255,760 |
|
|
|
5,305,016 |
|
Total customer deposits |
|
21,184,765 |
|
|
|
16,070,329 |
|
Borrowings |
|
3,934,514 |
|
|
|
3,650,000 |
|
Junior subordinated deferrable debentures |
|
50,485 |
|
|
|
— |
|
Senior debt |
|
|
|
||||
|
|
94,361 |
|
|
|
— |
|
Advance payments by borrowers for taxes and insurance |
|
38,898 |
|
|
|
52,550 |
|
Accrued expenses and other liabilities |
|
319,438 |
|
|
|
275,370 |
|
|
|
25,622,461 |
|
|
|
20,048,249 |
|
Shareholders’ equity |
|
|
|
||||
Preferred stock, |
|
300,000 |
|
|
|
300,000 |
|
Common stock, |
|
153,940 |
|
|
|
136,467 |
|
Additional paid-in capital |
|
2,146,149 |
|
|
|
1,687,634 |
|
Accumulated other comprehensive income (loss), net of taxes |
|
54,916 |
|
|
|
46,921 |
|
|
|
(1,638,943 |
) |
|
|
(1,612,345 |
) |
Retained earnings |
|
1,942,277 |
|
|
|
1,867,749 |
|
|
|
2,958,339 |
|
|
|
2,426,426 |
|
|
$ |
28,580,800 |
|
|
$ |
22,474,675 |
|
CONSOLIDATED FINANCIAL HIGHLIGHTS |
|
|
|
||||
Common shareholders' equity per share |
$ |
32.76 |
|
|
$ |
32.85 |
|
Tangible common shareholders' equity per share1 |
|
27.18 |
|
|
|
28.05 |
|
Shareholders' equity to total assets |
|
10.35 |
% |
|
|
10.80 |
% |
Tangible shareholders' equity to tangible assets1 |
|
8.91 |
% |
|
|
9.55 |
% |
Tangible shareholders' equity + allowance for credit losses to tangible assets1 |
|
9.63 |
% |
|
|
10.35 |
% |
WEIGHTED AVERAGE RATES AS OF PERIOD END |
|
|
|
||||
Loans and mortgage-backed securities |
|
5.18 |
% |
|
|
5.08 |
% |
Combined loans, mortgage-backed securities and investments |
|
5.17 |
|
|
|
5.07 |
|
Customer accounts |
|
2.91 |
|
|
|
2.12 |
|
Combined cost of borrowings, junior debentures, senior debt |
|
4.10 |
|
|
|
3.98 |
|
Combined cost of customer accounts and borrowings |
|
3.10 |
|
|
|
2.46 |
|
Net interest spread |
|
2.07 |
|
|
|
2.61 |
|
1Metric is a non-GAAP Financial Measure. See page 12 for additional information on our use of Non-GAAP Financial Measures. |
WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) |
|||||||||||||||||||
As of |
|||||||||||||||||||
SUMMARY FINANCIAL DATA |
2 024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
|
(In thousands, except share and ratio data) |
||||||||||||||||||
Cash |
$ |
2,492,504 |
|
|
$ |
1,505,771 |
|
|
$ |
1,144,774 |
|
|
$ |
980,649 |
|
|
$ |
1,139,643 |
|
Loans receivable, net |
|
20,873,919 |
|
|
|
20,795,259 |
|
|
|
17,584,622 |
|
|
|
17,476,550 |
|
|
|
17,384,188 |
|
Allowance for credit losses ("ACL") |
|
225,324 |
|
|
|
225,077 |
|
|
|
201,820 |
|
|
|
201,707 |
|
|
|
204,569 |
|
Loans held for sale |
|
468,527 |
|
|
|
2,993,658 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Available-for-sale securities, at fair value |
|
2,428,768 |
|
|
|
2,438,114 |
|
|
|
2,018,445 |
|
|
|
1,995,097 |
|
|
|
2,036,233 |
|
Held-to-maturity securities, at amortized cost |
|
447,638 |
|
|
|
457,882 |
|
|
|
415,079 |
|
|
|
423,586 |
|
|
|
434,172 |
|
Total assets |
|
28,580,800 |
|
|
|
30,140,288 |
|
|
|
22,640,122 |
|
|
|
22,474,675 |
|
|
|
22,552,588 |
|
Transaction deposits |
|
11,929,005 |
|
|
|
12,338,862 |
|
|
|
10,658,064 |
|
|
|
10,765,313 |
|
|
|
11,256,575 |
|
Time deposits |
|
9,255,760 |
|
|
|
9,000,911 |
|
|
|
5,380,723 |
|
|
|
5,305,016 |
|
|
|
4,863,849 |
|
Borrowings, senior debt and junior subordinated debentures |
|
4,079,360 |
|
|
|
5,489,501 |
|
|
|
3,875,000 |
|
|
|
3,650,000 |
|
|
|
3,750,000 |
|
Total shareholders' equity |
|
2,958,339 |
|
|
|
2,921,906 |
|
|
|
2,452,004 |
|
|
|
2,426,426 |
|
|
|
2,394,066 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
||||||||||
Common shareholders' equity per share |
$ |
32.76 |
|
|
$ |
32.21 |
|
|
$ |
33.49 |
|
|
$ |
32.85 |
|
|
$ |
32.36 |
|
Tangible common shareholders' equity per share2 |
$ |
27.18 |
|
|
$ |
26.64 |
|
|
$ |
28.65 |
|
|
$ |
28.05 |
|
|
$ |
27.58 |
|
Shareholders' equity to total assets |
|
10.35 |
% |
|
|
9.69 |
% |
|
|
10.83 |
% |
|
|
10.80 |
% |
|
|
10.62 |
% |
Tangible shareholders' equity to tangible assets2 |
|
8.91 |
% |
|
|
8.31 |
% |
|
|
9.59 |
% |
|
|
9.55 |
% |
|
|
9.37 |
% |
Tangible shareholders' equity + ACL to tangible assets2 |
|
9.63 |
% |
|
|
8.99 |
% |
|
|
10.39 |
% |
|
|
10.35 |
% |
|
|
10.17 |
% |
Common shares outstanding |
|
81,157,173 |
|
|
|
81,405,391 |
|
|
|
64,254,700 |
|
|
|
64,736,916 |
|
|
|
64,721,190 |
|
Preferred shares outstanding |
|
300,000 |
|
|
|
300,000 |
|
|
|
300,000 |
|
|
|
300,000 |
|
|
|
300,000 |
|
Loans to customer deposits 1 |
|
98.53 |
% |
|
|
97.45 |
% |
|
|
109.64 |
% |
|
|
108.75 |
% |
|
|
107.84 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
CREDIT QUALITY1 |
|
|
|
|
|
|
|
|
|
||||||||||
ACL to gross loans |
|
1.00 |
% |
|
|
1.00 |
% |
|
|
1.04 |
% |
|
|
1.03 |
% |
|
|
1.03 |
% |
ACL to non-accrual loans |
|
367.77 |
% |
|
|
370.16 |
% |
|
|
445.93 |
% |
|
|
400.04 |
% |
|
|
370.09 |
% |
Non-accrual loans to net loans |
|
0.29 |
% |
|
|
0.29 |
% |
|
|
0.26 |
% |
|
|
0.29 |
% |
|
|
0.32 |
% |
Non-accrual loans |
$ |
61,268 |
|
|
$ |
60,806 |
|
|
$ |
45,258 |
|
|
$ |
50,422 |
|
|
$ |
55,276 |
|
Non-performing assets to total assets |
|
0.24 |
% |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.26 |
% |
|
|
0.30 |
% |
Non-performing assets |
$ |
68,787 |
|
|
$ |
68,361 |
|
|
$ |
55,388 |
|
|
$ |
57,924 |
|
|
$ |
67,000 |
|
Criticized loans to net loans |
|
3.01 |
% |
|
|
2.59 |
% |
|
|
2.27 |
% |
|
|
2.33 |
% |
|
|
2.42 |
% |
Criticized loans |
$ |
628,699 |
|
|
$ |
537,802 |
|
|
$ |
399,895 |
|
|
$ |
407,086 |
|
|
$ |
421,507 |
|
Substandard loans to net loans |
|
1.84 |
% |
|
|
1.48 |
% |
|
|
1.74 |
% |
|
|
1.75 |
% |
|
|
1.71 |
% |
Substandard loans |
$ |
384,843 |
|
|
$ |
307,412 |
|
|
$ |
305,606 |
|
|
$ |
305,179 |
|
|
$ |
296,541 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1Metrics include only loans held for investment. Loans held for sale are not included. |
|||||||||||||||||||
2Metric is a non-GAAP Measure. See page 12 for additional information on our use of Non-GAAP Financial Measures. |
WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(In thousands, except share and ratio data) |
||||||||||||||
INTEREST INCOME |
|
|
|
|
|
|
|
||||||||
Loans receivable |
$ |
337,118 |
|
|
$ |
232,167 |
|
|
$ |
857,251 |
|
|
$ |
659,070 |
|
Mortgage-backed securities |
|
17,523 |
|
|
|
10,454 |
|
|
|
41,694 |
|
|
|
31,489 |
|
Investment securities and cash equivalents |
|
37,300 |
|
|
|
29,859 |
|
|
|
98,668 |
|
|
|
70,686 |
|
|
|
391,941 |
|
|
|
272,480 |
|
|
|
997,613 |
|
|
|
761,245 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
||||||||
Customer accounts |
|
154,359 |
|
|
|
70,062 |
|
|
|
367,194 |
|
|
|
153,831 |
|
Borrowings, senior debt and junior subordinated debentures |
|
60,396 |
|
|
|
33,718 |
|
|
|
142,399 |
|
|
|
80,877 |
|
|
|
214,755 |
|
|
|
103,780 |
|
|
|
509,593 |
|
|
|
234,708 |
|
Net interest income |
|
177,186 |
|
|
|
168,700 |
|
|
|
488,020 |
|
|
|
526,537 |
|
Provision for credit losses |
|
1,500 |
|
|
|
9,000 |
|
|
|
17,500 |
|
|
|
15,000 |
|
Net interest income after provision (release) |
|
175,686 |
|
|
|
159,700 |
|
|
|
470,520 |
|
|
|
511,537 |
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
||||||||
Gain (loss) on sale of investment securities |
|
80 |
|
|
|
— |
|
|
|
251 |
|
|
|
— |
|
Gain (loss) on termination of hedging derivatives |
|
54 |
|
|
|
(926 |
) |
|
|
169 |
|
|
|
(900 |
) |
Loan fee income |
|
594 |
|
|
|
1,000 |
|
|
|
1,988 |
|
|
|
3,154 |
|
Deposit fee income |
|
6,960 |
|
|
|
6,660 |
|
|
|
20,460 |
|
|
|
19,201 |
|
Other income |
|
9,567 |
|
|
|
7,037 |
|
|
|
21,946 |
|
|
|
16,412 |
|
|
|
17,255 |
|
|
|
13,771 |
|
|
|
44,814 |
|
|
|
37,867 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
57,169 |
|
|
|
50,456 |
|
|
|
180,165 |
|
|
|
150,970 |
|
Occupancy |
|
10,904 |
|
|
|
10,444 |
|
|
|
31,193 |
|
|
|
31,464 |
|
|
|
7,600 |
|
|
|
5,350 |
|
|
|
22,070 |
|
|
|
13,025 |
|
Product delivery |
|
6,090 |
|
|
|
5,217 |
|
|
|
17,680 |
|
|
|
15,154 |
|
Information technology |
|
13,428 |
|
|
|
11,661 |
|
|
|
39,177 |
|
|
|
36,775 |
|
Other expense |
|
14,888 |
|
|
|
11,571 |
|
|
|
50,046 |
|
|
|
36,470 |
|
|
|
110,079 |
|
|
|
94,699 |
|
|
|
340,331 |
|
|
|
283,858 |
|
Gain (loss) on real estate owned, net |
|
(124 |
) |
|
|
722 |
|
|
|
387 |
|
|
|
411 |
|
Income before income taxes |
|
82,738 |
|
|
|
79,494 |
|
|
|
175,390 |
|
|
|
265,957 |
|
Income tax provision |
|
18,178 |
|
|
|
17,719 |
|
|
|
36,489 |
|
|
|
58,739 |
|
Net income |
|
64,560 |
|
|
|
61,775 |
|
|
|
138,901 |
|
|
|
207,218 |
|
Dividends on preferred stock |
|
3,656 |
|
|
|
3,656 |
|
|
|
10,969 |
|
|
|
10,969 |
|
Net income available to common shareholders |
$ |
60,904 |
|
|
$ |
58,119 |
|
|
$ |
127,932 |
|
|
$ |
196,249 |
|
PER SHARE DATA |
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
$ |
0.75 |
|
|
$ |
0.89 |
|
|
$ |
1.78 |
|
|
$ |
3.00 |
|
Diluted earnings per common share |
|
0.75 |
|
|
|
0.89 |
|
|
|
1.78 |
|
|
|
3.00 |
|
Cash dividends per common share |
|
0.26 |
|
|
|
0.25 |
|
|
|
0.77 |
|
|
|
0.74 |
|
Basic weighted average shares outstanding |
|
81,374,811 |
|
|
|
65,194,880 |
|
|
|
71,905,924 |
|
|
|
65,348,709 |
|
Diluted weighted average shares outstanding |
|
81,393,708 |
|
|
|
65,212,846 |
|
|
|
71,930,215 |
|
|
|
65,442,910 |
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
||||||||
Return on average assets |
|
0.87 |
% |
|
|
1.12 |
% |
|
|
0.72 |
% |
|
|
1.28 |
% |
Return on average common equity |
|
9.20 |
|
|
|
11.09 |
|
|
|
7.18 |
|
|
|
12.72 |
|
Net interest margin |
|
2.56 |
|
|
|
3.27 |
|
|
|
2.72 |
|
|
|
3.49 |
|
Efficiency ratio |
|
56.61 |
|
|
|
51.90 |
|
|
|
63.87 |
|
|
|
50.29 |
|
WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||||||
Three Months Ended |
|||||||||||||||||||
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
|
(In thousands, except share and ratio data) |
||||||||||||||||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable |
$ |
337,118 |
|
|
$ |
274,341 |
|
|
$ |
245,792 |
|
|
$ |
240,998 |
|
|
$ |
232,167 |
|
Mortgage-backed securities |
|
17,523 |
|
|
|
12,905 |
|
|
|
11,266 |
|
|
|
11,695 |
|
|
|
10,454 |
|
Investment securities and cash equivalents |
|
37,300 |
|
|
|
31,580 |
|
|
|
29,788 |
|
|
|
29,017 |
|
|
|
29,859 |
|
|
|
391,941 |
|
|
|
318,826 |
|
|
|
286,846 |
|
|
|
281,710 |
|
|
|
272,480 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
||||||||||
Customer accounts |
|
154,359 |
|
|
|
116,164 |
|
|
|
96,671 |
|
|
|
83,402 |
|
|
|
70,062 |
|
Borrowings, senior debt and jr. subordinated debentures |
|
60,396 |
|
|
|
44,065 |
|
|
|
37,938 |
|
|
|
34,611 |
|
|
|
33,718 |
|
|
|
214,755 |
|
|
|
160,229 |
|
|
|
134,609 |
|
|
|
118,013 |
|
|
|
103,780 |
|
Net interest income |
|
177,186 |
|
|
|
158,597 |
|
|
|
152,237 |
|
|
|
163,697 |
|
|
|
168,700 |
|
Provision for credit losses |
|
1,500 |
|
|
|
16,000 |
|
|
|
— |
|
|
|
26,500 |
|
|
|
9,000 |
|
Net interest income after provision (release) |
|
175,686 |
|
|
|
142,597 |
|
|
|
152,237 |
|
|
|
137,197 |
|
|
|
159,700 |
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
||||||||||
Gain (loss) on sale of investment securities |
|
80 |
|
|
|
90 |
|
|
|
81 |
|
|
|
33 |
|
|
|
— |
|
Gain (loss) on termination of hedging derivatives |
|
54 |
|
|
|
6 |
|
|
|
109 |
|
|
|
33 |
|
|
|
(926 |
) |
Loan fee income |
|
594 |
|
|
|
550 |
|
|
|
844 |
|
|
|
731 |
|
|
|
1,000 |
|
Deposit fee income |
|
6,960 |
|
|
|
6,698 |
|
|
|
6,802 |
|
|
|
6,849 |
|
|
|
6,660 |
|
Other income |
|
9,567 |
|
|
|
6,048 |
|
|
|
6,331 |
|
|
|
6,688 |
|
|
|
7,037 |
|
|
|
17,255 |
|
|
|
13,392 |
|
|
|
14,167 |
|
|
|
14,334 |
|
|
|
13,771 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits |
|
57,169 |
|
|
|
73,155 |
|
|
|
49,841 |
|
|
|
45,564 |
|
|
|
50,456 |
|
Occupancy |
|
10,904 |
|
|
|
10,918 |
|
|
|
9,371 |
|
|
|
10,115 |
|
|
|
10,444 |
|
|
|
7,600 |
|
|
|
7,900 |
|
|
|
6,570 |
|
|
|
7,000 |
|
|
|
5,350 |
|
Product delivery |
|
6,090 |
|
|
|
5,581 |
|
|
|
6,009 |
|
|
|
5,819 |
|
|
|
5,217 |
|
Information technology |
|
13,428 |
|
|
|
12,883 |
|
|
|
12,866 |
|
|
|
12,672 |
|
|
|
11,661 |
|
Other expense |
|
14,888 |
|
|
|
23,275 |
|
|
|
11,883 |
|
|
|
11,007 |
|
|
|
11,571 |
|
|
|
110,079 |
|
|
|
133,712 |
|
|
|
96,540 |
|
|
|
92,177 |
|
|
|
94,699 |
|
Gain (loss) on real estate owned, net |
|
(124 |
) |
|
|
(1,315 |
) |
|
|
1,826 |
|
|
|
(235 |
) |
|
|
722 |
|
Income before income taxes |
|
82,738 |
|
|
|
20,962 |
|
|
|
71,690 |
|
|
|
59,119 |
|
|
|
79,494 |
|
Income tax provision |
|
18,178 |
|
|
|
5,074 |
|
|
|
13,237 |
|
|
|
8,911 |
|
|
|
17,719 |
|
Net income |
|
64,560 |
|
|
|
15,888 |
|
|
|
58,453 |
|
|
|
50,208 |
|
|
|
61,775 |
|
Dividends on preferred stock |
|
3,656 |
|
|
|
3,656 |
|
|
|
3,656 |
|
|
|
3,656 |
|
|
|
3,656 |
|
Net income available to common shareholders |
$ |
60,904 |
|
|
$ |
12,232 |
|
|
$ |
54,797 |
|
|
$ |
46,552 |
|
|
$ |
58,119 |
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share |
$ |
0.75 |
|
|
$ |
0.17 |
|
|
$ |
0.85 |
|
|
$ |
0.72 |
|
|
$ |
0.89 |
|
Diluted earnings per common share |
|
0.75 |
|
|
|
0.17 |
|
|
|
0.85 |
|
|
|
0.72 |
|
|
|
0.89 |
|
Cash dividends per common share |
|
0.26 |
|
|
|
0.26 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
Basic weighted average shares outstanding |
|
81,374,811 |
|
|
|
70,129,072 |
|
|
|
64,297,499 |
|
|
|
64,729,006 |
|
|
|
65,194,880 |
|
Diluted weighted average shares outstanding |
|
81,393,708 |
|
|
|
70,164,558 |
|
|
|
64,312,110 |
|
|
|
64,736,864 |
|
|
|
65,212,846 |
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets |
|
0.87 |
% |
|
|
0.26 |
% |
|
|
1.04 |
% |
|
|
0.90 |
% |
|
|
1.12 |
% |
Return on average common equity |
|
9.20 |
|
|
|
2.09 |
|
|
|
10.21 |
|
|
|
8.73 |
|
|
|
11.09 |
|
Net interest margin |
|
2.56 |
|
|
|
2.73 |
|
|
|
2.91 |
|
|
|
3.13 |
|
|
|
3.27 |
|
Efficiency ratio |
|
56.61 |
|
|
|
77.74 |
|
|
|
58.02 |
|
|
|
51.78 |
|
|
|
51.90 |
|
Non-GAAP Financial Measures and Management Projections
The Company has presented certain non-GAAP measures within this document to remove the effect of certain income and expenses to provide investors with information useful in understanding our financial performance. The Company considers these items to be non-operating in nature as they are items that Management does not consider indicative of the Company's on-going financial performance. We believe that the tables presented reflect our on-going performance in the periods presented and, accordingly, are useful to consider in addition to our GAAP financial results. These measures should not be considered a substitution for GAAP basis disclosures.
Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way they are calculated herein. Because of this, our non-GAAP financial measures may not be comparable to similar measures used by others. We caution investors not to place undue reliance on such measures. See the following unaudited tables for reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.
Tangible Measures |
2 024 |
|
2 024 |
|
2023 |
||||||
|
(Unaudited - In thousands, except for ratio data) |
||||||||||
Shareholders equity - GAAP |
$ |
2,958,339 |
|
|
$ |
2,921,906 |
|
|
$ |
2,426,426 |
|
Less intangible assets - GAAP |
|
452,255 |
|
|
|
453,539 |
|
|
|
310,619 |
|
Tangible shareholders' equity |
$ |
2,506,084 |
|
|
$ |
2,468,367 |
|
|
$ |
2,115,807 |
|
Less preferred stock - GAAP |
|
300,000 |
|
|
|
300,000 |
|
|
|
300,000 |
|
Tangible common shareholders' equity |
$ |
2,206,084 |
|
|
$ |
2,168,367 |
|
|
$ |
1,815,807 |
|
|
|
|
|
|
|
||||||
Total assets - GAAP |
$ |
28,580,800 |
|
|
$ |
30,140,288 |
|
|
$ |
22,474,675 |
|
Less intangible assets - GAAP |
|
452,255 |
|
|
|
453,539 |
|
|
|
310,619 |
|
Tangible assets |
$ |
28,128,545 |
|
|
$ |
29,686,749 |
|
|
$ |
22,164,056 |
|
|
|
|
|
|
|
||||||
Tangible Metrics |
|
|
|
|
|
||||||
Common shares outstanding - GAAP |
|
81,157,173 |
|
|
|
81,405,391 |
|
|
|
64,736,916 |
|
Tangible common equity per share |
$ |
27.18 |
|
|
$ |
26.64 |
|
|
$ |
28.05 |
|
Tangible equity to tangible assets |
|
8.91 |
% |
|
|
8.31 |
% |
|
|
9.55 |
% |
Allowance for credit losses |
$ |
203,824 |
|
|
$ |
201,577 |
|
|
$ |
177,207 |
|
Tangible shareholders' equity + allowance for credit losses to tangible assets |
|
9.63 |
% |
|
|
8.99 |
% |
|
|
10.35 |
% |
Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items |
Three Months
Ended 2024 |
|
Three Months
Ended 2024 |
|
Three Months
E
nded 2023 |
||||||
|
(Unaudited - In thousands, except for ratio data) |
||||||||||
Non-interest income adjustments |
|
|
|
|
|
||||||
Distribution received on LBC equity method investment |
$ |
(299 |
) |
|
$ |
(287 |
) |
|
$ |
— |
|
(Gain)Loss on |
|
(748 |
) |
|
|
2,195 |
|
|
|
693 |
|
Total non-interest income adjustments |
$ |
(1,047 |
) |
|
$ |
1,908 |
|
|
$ |
693 |
|
|
|
|
|
|
|
||||||
Non-interest expense adjustments |
|
|
|
|
|
||||||
Acquisition-related expenses |
$ |
2,285 |
|
|
$ |
25,120 |
|
|
$ |
516 |
|
Select non-operating expenses: |
|
|
|
|
|
||||||
FDIC Special Assessment |
|
— |
|
|
|
1,800 |
|
|
|
500 |
|
Legal and Compliance Accruals |
|
— |
|
|
|
3,000 |
|
|
|
— |
|
Charitable Donation |
|
— |
|
|
|
2,000 |
|
|
|
— |
|
|
|
— |
|
|
|
6,800 |
|
|
|
500 |
|
Total non-interest expense adjustments |
$ |
2,285 |
|
|
$ |
31,920 |
|
|
$ |
1,016 |
|
|
|
|
|
|
|
||||||
Net Income - GAAP |
$ |
64,560 |
|
|
$ |
15,888 |
|
|
$ |
58,453 |
|
Preliminary ACL provision on LBC loans |
|
— |
|
|
|
16,000 |
|
|
|
— |
|
Non-interest income adjustments |
|
(1,047 |
) |
|
|
1,908 |
|
|
|
693 |
|
Non-interest expense adjustments |
|
2,285 |
|
|
|
31,920 |
|
|
|
1,016 |
|
REO adjustments |
|
124 |
|
|
|
1,315 |
|
|
|
(1,826 |
) |
Income tax adjustment |
|
(299 |
) |
|
|
(12,274 |
) |
|
|
22 |
|
Net Income - non-GAAP |
$ |
65,623 |
|
|
$ |
54,757 |
|
|
$ |
58,358 |
|
|
|
|
|
|
|
||||||
Dividend on preferred stock |
$ |
3,656 |
|
|
$ |
3,656 |
|
|
$ |
3,656 |
|
|
|
|
|
|
|
||||||
Net Income available to common shareholders - non-GAAP |
$ |
61,967 |
|
|
$ |
51,101 |
|
|
$ |
54,702 |
|
|
|
|
|
|
|
||||||
Basic weighted average number of shares outstanding - GAAP |
|
81,374,811 |
|
|
|
70,129,072 |
|
|
|
64,297,499 |
|
Diluted weighted average number of shares outstanding - GAAP |
|
81,393,708 |
|
|
|
70,164,558 |
|
|
|
64,312,110 |
|
|
|
|
|
|
|
||||||
Basic EPS - non-GAAP |
|
0.76 |
|
|
|
0.73 |
|
|
|
0.84 |
|
Diluted EPS - non-GAAP |
|
0.76 |
|
|
|
0.73 |
|
|
|
0.84 |
|
Adjusted Efficiency Ratio |
Three Months
Ended 2024 |
|
Three Months
Ended 2024 |
|
Three Months
E
nded 2023 |
||||||
|
(Unaudited - In thousands, except for ratio data) |
||||||||||
Efficiency ratio - GAAP |
|
56.6 |
% |
|
|
77.7 |
% |
|
|
58.0 |
% |
|
|
|
|
|
|
||||||
Non-interest expense - GAAP |
$ |
110,079 |
|
|
$ |
133,712 |
|
|
$ |
96,540 |
|
Deduct acquisition-related expenses |
|
2,285 |
|
|
|
25,120 |
|
|
|
516 |
|
Deduct select non-operating expenses |
|
— |
|
|
|
6,800 |
|
|
|
500 |
|
Non-interest Expenses - non-GAAP |
$ |
107,794 |
|
|
$ |
101,792 |
|
|
$ |
95,524 |
|
|
|
|
|
|
|
||||||
Non-interest income - GAAP |
$ |
17,255 |
|
|
$ |
13,392 |
|
|
$ |
14,167 |
|
Total non-interest income adjustments |
|
(1,047 |
) |
|
|
1,908 |
|
|
|
693 |
|
Non-interest income - non-GAAP |
$ |
16,208 |
|
|
$ |
15,300 |
|
|
$ |
14,860 |
|
|
|
|
|
|
|
||||||
Net Interest Income - GAAP |
$ |
177,186 |
|
|
$ |
158,597 |
|
|
$ |
152,237 |
|
Non-interest income - non-GAAP |
|
16,208 |
|
|
|
15,300 |
|
|
|
14,860 |
|
Total Income - non-GAAP |
$ |
193,394 |
|
|
$ |
173,897 |
|
|
$ |
167,097 |
|
|
|
|
|
|
|
||||||
Adjusted Efficiency Ratio |
|
55.7 |
% |
|
|
58.5 |
% |
|
|
57.2 |
% |
Adjusted ROA and ROE |
Three Months
Ended 2024 |
|
Three Months
Ended 2024 |
|
Three Months
E
nded 2023 |
||||||
|
(Unaudited - In thousands, except for ratio data) |
||||||||||
Net Income - GAAP |
$ |
64,560 |
|
|
$ |
15,888 |
|
|
$ |
58,453 |
|
Net income available to common shareholders - GAAP |
$ |
60,904 |
|
|
$ |
12,232 |
|
|
$ |
54,797 |
|
|
|
|
|
|
|
||||||
Average Assets |
|
29,703,337 |
|
|
|
24,907,376 |
|
|
|
22,381,459 |
|
Return on Assets |
|
0.87 |
% |
|
|
0.26 |
% |
|
|
1.04 |
% |
|
|
|
|
|
|
||||||
Average Common Equity |
|
2,647,056 |
|
|
|
2,338,483 |
|
|
|
2,147,580 |
|
Return on common equity |
|
9.20 |
% |
|
|
2.09 |
% |
|
|
10.21 |
% |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Net Income - non-GAAP |
$ |
65,623 |
|
|
$ |
54,757 |
|
|
$ |
58,358 |
|
Net income available to common shareholders - non-GAAP |
$ |
61,967 |
|
|
$ |
51,101 |
|
|
$ |
54,702 |
|
|
|
|
|
|
|
||||||
Average Assets |
|
29,703,337 |
|
|
|
24,907,376 |
|
|
|
22,381,459 |
|
Adjusted Return on Assets |
|
0.88 |
% |
|
|
0.88 |
% |
|
|
1.04 |
% |
|
|
|
|
|
|
||||||
Average Common Equity |
|
2,647,056 |
|
|
|
2,338,483 |
|
|
|
2,147,580 |
|
Adjusted Return on common equity |
|
9.36 |
% |
|
|
8.74 |
% |
|
|
10.19 |
% |
Important Cautionary Statements
The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
This press release contains statements about the Company’s future that are not statements of historical or current fact. These statements are “forward-looking statements” for purposes of applicable securities laws and are based on current information and/or management's good faith belief as to future events. Words such as “expects,” “anticipates,” “believes,” “estimates,” “intends,” “forecasts,” “may,” “potential,” “projects,” and other similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could” are intended to help identify such forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements related to the potential sale of approximately
By their nature, forward-looking statements involve inherent risk and uncertainties including the following risks and uncertainties, and those risks and uncertainties more fully discussed under “Risk Factors” in the Company’s
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