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Cadence Bank

Cadence Bank Announces First Quarter 2025 Financial Results

HOUSTON and TUPELO, Miss., April 21, 2025 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended March 31, 2025.

Highlights for the first quarter of 2025 included:

  • Reported quarterly net income available to common shareholders of $130.9 million, or $0.70 per diluted common share, and adjusted net income available to common shareholders(1) of $131.4 million, or $0.71 per diluted common share.
  • Improved return on average assets to 1.15%, up 18 basis points from the first quarter of 2024 and up 3 basis points from the fourth quarter of 2024.
  • Achieved quarterly adjusted pre-tax pre-provision net revenue (PPNR)(1) of $189.9 million, an increase of $5.9 million compared to the fourth quarter of 2024 and an increase of $15.7 million, or 9.0%, from the first quarter of 2024.
  • Generated net organic loan growth of $309.9 million for the first quarter of 2025, or 3.7% on an annualized basis; core customer deposit balances, which exclude brokered and public fund deposits, remained stable and were flat linked quarter.
  • Improved net interest margin to 3.46%, up 8 basis points compared to the fourth quarter of 2024.
  • Adjusted noninterest expense(1) declined $8.1 million, or 3.0%, linked quarter driving improvement in the adjusted efficiency ratio(1) to 57.6% for the quarter.
  • Maintained strong regulatory capital with Common Equity Tier 1 Capital of 12.4% and Total Capital of 14.1%.
  • Received all required regulatory and shareholder approvals to complete proposed merger with FCB Financial Corp., the bank holding company for First Chatham Bank in Savannah, Georgia. The transaction is expected to close May 1, 2025, subject to customary closing conditions.

"Our first quarter results reflect a number of key accomplishments related to our financial performance and strategic growth efforts," remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. "We reported strong earnings driven by improved operating leverage and further expanded our net interest margin. Despite the recent economic volatility, we also captured nice organic loan growth while maintaining stable credit quality. Importantly, we received all necessary regulatory approvals related to our pending merger with First Chatham Bank in a very short timeframe, allowing us to quickly close and begin expanding our Company's presence in Savannah and other surrounding markets in Georgia."

Earnings Summary

For the first quarter of 2025, the Company reported net income available to common shareholders of $130.9 million, or $0.70 per diluted common share, compared to $114.6 million, or $0.62 per diluted common share, for the first quarter of 2024 and $130.3 million, or $0.70 per diluted common share, for the fourth quarter of 2024. Adjusted net income available to common shareholders(1) was $131.4 million, or $0.71 per diluted common share, for the first quarter of 2025, compared with $114.4 million, or $0.62 per diluted common share, for the first quarter of 2024 and $130.0 million, or $0.70 per diluted common share, for the fourth quarter of 2024.

Return on average assets was 1.15% for the first quarter of 2025, improved from both 0.97% for the first quarter of 2024 and 1.12% for the fourth quarter of 2024.  Additionally, the Company reported adjusted PPNR(1) of $189.9 million, or 1.63% of average assets on an annualized basis, for the first quarter of 2025, which represents an increase of $5.9 million or 3.2% compared to the fourth quarter of 2024, and an increase of $15.7 million or 9.0% compared to the same quarter of 2024.

Net Interest Revenue

Net interest revenue was $363.2 million for the first quarter of 2025, compared to $353.9 million for the first quarter of 2024 and $364.5 million for the fourth quarter of 2024. The net interest margin (fully taxable equivalent) improved to 3.46% for the first quarter of 2025, compared with 3.22% for the first quarter of 2024 and 3.38% for the fourth quarter of 2024.

Net interest revenue declined $1.4 million compared to the fourth quarter of 2024 due to fewer number of days in the first quarter of 2025 and a slightly smaller average balance sheet. Purchase accounting accretion revenue was $2.6 million for the first quarter of 2025 compared with $2.4 million for the fourth quarter of 2024. Average earning assets declined slightly to $42.6 billion, as growth in average loans of $482.5 million was offset by lower linked quarter average cash and securities balances as the Company paid off the Bank Term Funding Program balances and called a subordinated-debt issuance in the fourth quarter of 2024.

Yield on net loans, loans held for sale and leases, excluding accretion, was 6.30% for the first quarter of 2025, down 10 basis points from 6.40% for the fourth quarter of 2024, reflecting the full quarter's impact of the December rate cut as well as new origination loan mix. Investment securities yielded 3.00% in the first quarter of 2025, down slightly from 3.04% for the fourth quarter of 2024.  The yield on total interest earning assets was 5.71% for the first quarter of 2025 compared with 5.76% for the fourth quarter of 2024.

The average cost of total deposits of 2.35% for the first quarter of 2025 declined by 9 basis points from 2.44% for the fourth quarter of 2024. The decline in the cost of deposits was driven by the full quarter's impact of the December rate cut on interest bearing deposits and repricing time deposits, combined with a stable funding mix. Total cost of interest-bearing liabilities declined 20 basis points to 2.97% for the first quarter of 2025 compared to 3.17% for the fourth quarter of 2024, benefiting from declining deposit costs as well as the payoff of the Bank Term Funding Program and the subordinated debt call in the fourth quarter of 2024.

Balance Sheet Activity

Loans and leases, net of unearned income, increased to $34.1 billion at March 31, 2025 compared to $33.7 billion at December 31, 2024.  Net loan growth of $309.9 million, or 3.7% annualized, for the first quarter of 2025 was driven primarily by growth in our mortgage, community banking, and private banking segments, while corporate banking was relatively flat quarter over quarter.

Total deposits were $40.3 billion as of March 31, 2025, declining $0.2 billion from $40.5 billion at the end of the fourth quarter of 2024. This decline was driven primarily by a decline in brokered deposits, partially offset by a nominal seasonal increase in public fund deposits. The March 31, 2025 loan to deposit ratio was 84.4%. Noninterest bearing deposits remained stable at 21.2% of total deposits at the end of the first quarter of 2025 compared to December 31, 2024. Borrowed funds increased $0.8 billion during the first quarter of 2025 compared to December 31, 2024, supporting the purchase of additional investment securities. The borrowed funds increase was in FHLB borrowings with maturities generally ranging between six months and two years.

Total investment securities increased $0.6 billion from December 31, 2024 to $7.9 billion at March 31, 2025, representing 16.6% of total assets. Cash, due from balances and deposits at the Federal Reserve of $1.6 billion at March 31, 2025 was relatively flat compared to $1.7 billion at December 31, 2024.

Credit Results, Provision for Credit Losses and Allowance for Credit Losses

Credit metrics for the first quarter of 2025 reflected continued overall stability in credit quality. Net charge-offs for the first quarter of 2025 were $23.0 million, or 0.27% of average net loans and leases on an annualized basis, compared with net charge-offs of $19.5 million, or 0.24% of average net loans and leases on an annualized basis, for the first quarter of 2024 and net charge-offs of $14.1 million, or 0.17% of average net loans and leases on an annualized basis, for the fourth quarter of 2024. The linked quarter increase was driven primarily by one C&I credit that was previously identified and reserved for in a prior quarter. The provision for credit losses for the first quarter of 2025 was $20.0 million, compared with $22.0 million for the first quarter of 2024 and $15.0 million for the fourth quarter of 2024. The allowance for credit losses of $457.8 million at March 31, 2025 was 1.34% of total loans and leases compared to 1.37% of total loans and leases at December 31, 2024 and 1.44% of total loans and leases at March 31, 2024.

Total nonperforming assets as a percent of total assets were 0.51% at March 31, 2025 compared to 0.51% at March 31, 2024 and 0.58% at December 31, 2024. Total nonperforming loans and leases as a percent of loans and leases, net were 0.69% at March 31, 2025 compared to 0.73% at March 31, 2024 and 0.78% at December 31, 2024.  Other real estate owned and other repossessed assets was $8.5 million at March 31, 2025 compared to the March 31, 2024 balance of $5.3 million and the December 31, 2024 balance of $5.8 million. Criticized loans represented 2.39% of loans at March 31, 2025 compared to 2.64% at March 31, 2024 and 2.35% at December 31, 2024, while classified loans were 1.95% at March 31, 2025 compared to 2.19% at March 31, 2024 and 2.02% at December 31, 2024. 

Noninterest Revenue

Noninterest revenue was $85.4 million for the first quarter of 2025 compared with $83.8 million for the first quarter of 2024 and $86.2 million for the fourth quarter of 2024.  Adjusted noninterest revenue(1) had no significant adjustments for the quarters presented.

Noninterest revenue declined slightly compared to the fourth quarter of 2024, with improvements in mortgage banking revenue offset by a decline in other noninterest revenue as well as service charge and card revenues that were impacted by day count. Wealth management revenue was $23.3 million for the first quarter of 2025, down slightly from $24.0 million for the fourth quarter of 2024 due to market conditions. Credit card, debit card and merchant fee revenue was $12.0 million for the first quarter of 2025, compared with $12.7 million for the fourth quarter of 2024 and reflective of typical softer first quarter card activity.  Deposit service charge revenue was $17.7 million for the first quarter of 2025, compared to $18.7 million for the fourth quarter of 2024, partially impacted by fewer number of days.

Mortgage banking revenue totaled $6.6 million for the first quarter of 2025, compared to $6.4 million for the first quarter of 2024 and $3.6 million for the fourth quarter of 2024. The $3.1 million improvement during the linked quarter was primarily due to seasonally higher mortgage production and servicing revenue.

Other noninterest revenue was $25.8 million for the first quarter of 2025, down from $27.3 million for the fourth quarter of 2024, with the $1.5 million decline impacted by lower credit related fees and other miscellaneous revenues.

Noninterest Expense

Noninterest expense for the first quarter of 2025 was $259.3 million, compared with $263.2 million for the first quarter of 2024 and $266.2 million for the fourth quarter of 2024. Adjusted noninterest expense(1) for the first quarter of 2025 was $258.6 million, compared with $263.5 million for the first quarter of 2024 and $266.7 million for the fourth quarter of 2024. Adjusted noninterest expense for the first quarter of 2025 excludes an insignificant amount of merger expense and incremental merger related expense. The adjusted efficiency ratio(1) was 57.6% for the first quarter of 2025, compared to 60.1% for the first quarter of 2024 and 59.1% for the fourth quarter of 2024.

The $8.1 million, or 3.0%, linked quarter decline in adjusted noninterest expense(1) was driven primarily by declines in data processing and software expense as well as other noninterest expense, partially offset by small increase in various other expense categories. Data processing and software expense declined $6.1 million in the first quarter of 2025 compared to the fourth quarter of 2024, primarily as a result of the fourth quarter expenses associated with technology investments including enhancements to the Company's treasury management platform. Other noninterest expense decreased $3.0 million in the first quarter of 2025 compared to the fourth quarter of 2024 driven by declines in various items including advertising/public relations and legal expense.

Capital Management

Total shareholders' equity was $5.7 billion at March 31, 2025, up from $5.2 billion at March 31, 2024 and $5.6 billion at December 31, 2024.  Estimated regulatory capital ratios at March 31, 2025 included Common Equity Tier 1 capital of 12.4%, Tier 1 capital of 12.9%, Total risk-based capital of 14.1%, and Tier 1 leverage capital of 10.6%. During the first quarter of 2025, the Company did not repurchase any shares of Company common stock.  Outstanding common shares were 184.0 million as of March 31, 2025.

Summary

Rollins concluded, "Our team remains excited about the opportunity to build on our accomplishments and momentum. Our relentless focus on customer service, quality growth and enhanced operating efficiency has resulted in continued improvement in our profitability and financial performance. We look forward to building on this success throughout 2025 and beyond as we focus on our company's vision of helping people, companies and communities prosper."

Key Transactions

On January 22, 2025, the Company announced the signing of a definitive merger agreement with FCB Financial Corp., the bank holding company for First Chatham Bank, (collectively referred to as "First Chatham"), pursuant to which First Chatham will be merged with and into the Company. First Chatham is a Savannah, Georgia-based community bank operating eight branches across the Greater Savannah Area.  As of December 31, 2024, First Chatham reported total assets of $589 million, total loans of $326 million, and total deposits of $507 million.  Under the terms of the definitive merger agreement, the Company will issue approximately 2,300,000 shares of common stock plus $23.1 million in cash for all outstanding shares of First Chatham. The Company has received all required regulatory and shareholder approvals related to the transaction. Subject to the satisfaction of all closing conditions, the merger is expected to close May 1, 2025, although the Company can provide no assurance that the merger will close on this date or at all.

Conference Call and Webcast

The Company will conduct a conference call to discuss its first quarter 2025 financial results on April 22, 2025, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing http://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.

About Cadence Bank

Cadence Bank (NYSE: CADE) is a $50 billion regional financial services company committed to helping people, companies and communities prosper. With more than 350 locations spanning the South and Texas, Cadence offers comprehensive banking, investment, trust and mortgage products and services to meet the needs of individuals, businesses and corporations. Accolades include being recognized as one of the nation's best employers by Forbes and U.S. News & World Report and a 2025 America's Best Banks by Forbes. Cadence maintains dual headquarters in Houston, Texas and Tupelo, Mississippi, and has dutifully served customers for nearly 150 years. Learn more at www.cadencebank.com. Cadence Bank, Member FDIC. Equal Housing Lender.

(1) Considered a non-GAAP financial measure. A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears in Table 14 "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 20 of this news release.

Forward-Looking Statements

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

Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, trade, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; uncertainties surrounding the impact of the U.S.'s proposed tariffs, including potential negative impact to our loan portfolio and profitability, potential for increases in problem loans, potential re-evaluation of credit marks and interest rates, and lower equity valuation and potential slowdown in capital markets; uncertain duration of trade conflicts; magnitude of the impact that the proposed tariffs may have on our customers' businesses; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies, including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements (including those related to stock repurchases); the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers. The Company also faces risks from natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from U.S.'s proposed tariffs and international trade conflicts, Russia's military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.

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

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with its primary federal regulator, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors," and in the Company's Current Reports on Form 8-K.

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

Table 1

Selected Financial Data



Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

Earnings Summary:






Interest revenue

$       599,257

$       620,321

$       647,713

$       642,210

$       637,113

Interest expense

236,105

255,790

286,255

285,892

283,205

Net interest revenue

363,152

364,531

361,458

356,318

353,908

Provision for credit losses

20,000

15,000

12,000

22,000

22,000

Net interest revenue, after provision for credit losses

343,152

349,531

349,458

334,318

331,908

Noninterest revenue

85,387

86,165

85,901

100,658

83,786

Noninterest expense

259,349

266,186

259,438

256,697

263,207

Income before income taxes

169,190

169,510

175,921

178,279

152,487

Income tax expense

35,968

36,795

39,482

40,807

35,509

Net income

133,222

132,715

136,439

137,472

116,978

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Net income available to common shareholders

$       130,850

$       130,343

$       134,067

$       135,100

$       114,606







Balance Sheet - Period End Balances





Total assets

$  47,743,294

$  47,019,190

$  49,204,933

$  47,984,078

$  48,313,863

Total earning assets

43,172,997

42,386,627

44,834,897

43,525,688

43,968,692

Available for sale securities

7,912,159

7,293,988

7,841,685

7,921,422

8,306,589

Loans and leases, net of unearned income

34,051,610

33,741,755

33,303,972

33,312,773

32,882,616

Allowance for credit losses (ACL)

457,791

460,793

460,859

470,022

472,575

Net book value of acquired loans

4,365,789

4,783,206

5,521,000

5,543,419

6,011,007

Unamortized net discount on acquired loans

13,060

15,611

17,988

20,874

23,715

Total deposits

40,335,728

40,496,201

38,844,360

37,858,659

38,120,226

Total deposits and repurchase agreements

40,355,399

40,519,817

38,861,324

37,913,693

38,214,616

Other short-term borrowings

235,000

—

3,500,000

3,500,000

3,500,000

Subordinated and long-term borrowings

560,690

10,706

225,823

269,353

430,123

Total shareholders' equity

5,718,541

5,569,683

5,572,863

5,287,758

5,189,932

Total shareholders' equity, excluding AOCI (1)

6,339,744

6,264,178

6,163,205

6,070,220

5,981,265

Common shareholders' equity

5,551,548

5,402,690

5,405,870

5,120,765

5,022,939

Common shareholders' equity, excluding AOCI (1)

$    6,172,751

$    6,097,185

$    5,996,212

$    5,903,227

$    5,814,272







Balance Sheet - Average Balances





Total assets

$  47,135,431

$  47,263,538

$  47,803,977

$  48,192,719

$  48,642,540

Total earning assets

42,637,002

42,920,125

43,540,045

43,851,822

44,226,077

Available for sale securities

7,302,172

7,636,683

7,915,636

8,033,552

8,269,708

Loans and leases, net of unearned income

33,944,416

33,461,931

33,279,819

32,945,526

32,737,574

Total deposits

40,353,292

39,743,224

37,634,453

38,100,087

38,421,272

Total deposits and repurchase agreements

40,376,248

39,761,277

37,666,828

38,165,908

38,630,620

Other short-term borrowings

108,389

905,815

3,512,218

3,500,000

3,500,000

Subordinated and long-term borrowings

129,030

123,442

265,790

404,231

434,579

Total shareholders' equity

5,651,592

5,589,361

5,420,826

5,207,254

5,194,048

Common shareholders' equity

$    5,484,599

$    5,422,368

$    5,253,833

$    5,040,261

$    5,027,055







Nonperforming Assets:






Nonperforming loans and leases (NPL) (2) (3)

235,952

264,692

272,954

216,746

241,007

Other real estate owned and other assets

8,452

5,754

5,354

4,793

5,280

Nonperforming assets (NPA)

$       244,404

$       270,446

$       278,308

$       221,539

$       246,287



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 - 23.

(2)

At March 31, 2025, $84.3 million of NPL is covered by government guarantees from the SBA, FHA, VA or USDA. Refer to Table 7 on page 13 for related information.

(3)

At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million.

 

Table 2

Selected Financial Ratios



Quarter Ended


Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

Financial Ratios and Other Data:






Return on average assets (2)

1.15 %

1.12 %

1.14 %

1.15 %

0.97 %

Adjusted return on average assets  (1)(2)

1.15

1.11

1.15

1.09

0.97

Return on average common shareholders' equity (2)

9.68

9.56

10.15

10.78

9.17

Adjusted return on average common shareholders' equity (1)(2)

9.72

9.53

10.27

10.21

9.15

Return on average tangible common equity (1)(2)

13.15

13.06

14.04

15.18

12.94

Adjusted return on average tangible common equity (1)(2)

13.20

13.02

14.21

14.37

12.92

Pre-tax pre-provision net revenue to total average assets (1)(2)

1.63

1.55

1.56

1.67

1.44

Adjusted pre-tax pre-provision net revenue to total average assets (1)(2)

1.63

1.55

1.58

1.59

1.44

Net interest margin-fully taxable equivalent

3.46

3.38

3.31

3.27

3.22

Net interest rate spread-fully taxable equivalent

2.74

2.59

2.45

2.45

2.40

Efficiency ratio fully tax equivalent (1)

57.74

58.98

57.90

56.09

60.05

Adjusted efficiency ratio fully tax equivalent (1)

57.58

59.09

57.73

56.73

60.12

Loan/deposit ratio

84.42 %

83.32 %

85.74 %

87.99 %

86.26 %

Full time equivalent employees

5,356

5,335

5,327

5,290

5,322







Credit Quality Ratios:






Net charge-offs to average loans and leases (2)

0.27 %

0.17 %

0.26 %

0.28 %

0.24 %

Provision for credit losses to average loans and leases (2)

0.24

0.18

0.14

0.27

0.27

ACL to loans and leases, net

1.34

1.37

1.38

1.41

1.44

ACL to NPL

194.02

174.09

168.84

216.85

196.08

NPL to loans and leases, net

0.69

0.78

0.82

0.65

0.73

NPA to total assets

0.51

0.58

0.57

0.46

0.51







Equity Ratios:






Total shareholders' equity to total assets

11.98 %

11.85 %

11.33 %

11.02 %

10.74 %

Total common shareholders' equity to total assets

11.63

11.49

10.99

10.67

10.40

Tangible common shareholders' equity to tangible assets (1)

8.87

8.67

8.28

7.87

7.60

Tangible common shareholders' equity, excluding AOCI, to tangible
assets, excluding AOCI (1)

10.07

10.04

9.40

9.40

9.13







Capital Adequacy (3):






Common Equity Tier 1 capital

12.4 %

12.4 %

12.3 %

11.9 %

11.7 %

Tier 1 capital

12.9

12.8

12.7

12.3

12.2

Total capital

14.1

14.0

14.5

14.2

14.5

Tier 1 leverage capital

10.6

10.4

10.1

9.7

9.5



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 - 23.

(2)

Annualized.

(3)

Current quarter regulatory capital ratios are estimated.

 

Table 3

Selected Financial Information



Quarter Ended


Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

Common Share Data:






Diluted earnings per share

$          0.70

$          0.70

$          0.72

$          0.73

$          0.62

Adjusted earnings per share (1)

0.71

0.70

0.73

0.69

0.62

Cash dividends per share

0.275

0.250

0.250

0.250

0.250

Book value per share

30.16

29.44

29.65

28.07

27.50

Tangible book value per share (1)

22.30

21.54

21.68

20.08

19.48

Market value per share (last)

30.36

34.45

31.85

28.28

29.00

Market value per share (high)

36.53

40.20

34.13

29.95

30.03

Market value per share (low)

28.90

30.21

27.46

26.16

24.99

Market value per share (average)

33.13

35.17

30.96

28.14

27.80

Dividend payout ratio

39.29 %

35.71 %

34.72 %

34.25 %

40.48 %

Adjusted dividend payout ratio (1)

38.73 %

35.71 %

34.25 %

36.23 %

40.32 %

Total shares outstanding

184,046,420

183,527,575

182,315,142

182,430,427

182,681,325

Average shares outstanding - diluted

186,121,979

186,038,243

185,496,110

185,260,963

185,574,130







Yield/Rate:






(Taxable equivalent basis)






Loans, loans held for sale, and leases

6.33 %

6.42 %

6.64 %

6.59 %

6.50 %

Loans, loans held for sale, and leases excluding net accretion
on acquired loans and leases

6.30

6.40

6.61

6.56

6.46

Available for sale securities:






Taxable

2.99

3.03

3.03

3.18

3.11

Tax-exempt

4.04

3.93

3.97

4.12

4.25

Other investments

4.42

4.77

5.37

5.45

5.48

Total interest earning assets and revenue

5.71

5.76

5.92

5.90

5.80

Deposits

2.35

2.44

2.55

2.53

2.45

Interest bearing demand and money market

2.69

2.87

3.13

3.13

3.11

Savings

0.57

0.57

0.57

0.57

0.57

Time

4.10

4.28

4.50

4.53

4.42

Total interest bearing deposits

2.96

3.12

3.30

3.28

3.21

Fed funds purchased, securities sold under agreement to
repurchase and other

4.45

4.58

5.10

4.47

4.86

Short-term FHLB borrowings

4.43

—

—

—

—

Short-term BTFP borrowings

—

4.77

4.77

4.77

4.84

Total interest bearing deposits and short-term borrowings

2.96

3.16

3.46

3.44

3.39

Subordinated and long-term borrowings

4.05

4.14

4.30

4.41

4.35

Total interest bearing liabilities

2.97

3.17

3.47

3.45

3.40

Interest bearing liabilities to interest earning assets

75.70 %

74.82 %

75.40 %

75.97 %

75.73 %

Net interest income tax equivalent adjustment (in thousands)

$           630

$           648

$           694

$           644

$           636



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 - 23.

 

Table 4

Consolidated Balance Sheets

(Unaudited)



As of

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

ASSETS






Cash and due from banks

$         578,513

$         624,884

$         504,827

$         516,715

$         427,543

Interest bearing deposits with other banks and Federal funds sold

988,787

1,106,692

3,483,299

2,093,820

2,609,931

Available for sale securities, at fair value

7,912,159

7,293,988

7,841,685

7,921,422

8,306,589

Loans and leases, net of unearned income

34,051,610

33,741,755

33,303,972

33,312,773

32,882,616

Allowance for credit losses

457,791

460,793

460,859

470,022

472,575

Net loans and leases

33,593,819

33,280,962

32,843,113

32,842,751

32,410,041

Loans held for sale, at fair value

220,441

244,192

205,941

197,673

169,556

Premises and equipment, net

780,963

783,456

797,556

808,705

822,666

Goodwill

1,366,923

1,366,923

1,366,923

1,366,923

1,367,785

Other intangible assets, net

79,522

83,190

87,094

91,027

96,126

Bank-owned life insurance

654,964

651,838

652,057

648,970

645,167

Other assets

1,567,203

1,583,065

1,422,438

1,496,072

1,458,459

Total Assets

$    47,743,294

$    47,019,190

$    49,204,933

$    47,984,078

$    48,313,863

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      8,558,412

$      8,591,805

$      9,242,693

$      8,586,265

$      8,820,468

       Interest bearing

19,221,356

19,345,114

18,125,553

18,514,015

18,945,982

 Savings

2,626,901

2,588,406

2,560,803

2,613,950

2,694,777

 Time deposits

9,929,059

9,970,876

8,915,311

8,144,429

7,658,999

Total deposits

40,335,728

40,496,201

38,844,360

37,858,659

38,120,226

Securities sold under agreement to repurchase

19,671

23,616

16,964

55,034

94,390

Other short-term borrowings

235,000

—

3,500,000

3,500,000

3,500,000

Subordinated and long-term borrowings

560,690

10,706

225,823

269,353

430,123

Other liabilities

873,664

918,984

1,044,923

1,013,274

979,192

Total Liabilities

42,024,753

41,449,507

43,632,070

42,696,320

43,123,931

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

460,116

458,819

455,788

456,076

456,703

Capital surplus

2,736,799

2,742,913

2,729,440

2,724,656

2,724,587

Accumulated other comprehensive loss

(621,203)

(694,495)

(590,342)

(782,462)

(791,333)

Retained earnings

2,975,836

2,895,453

2,810,984

2,722,495

2,632,982

Total Shareholders' Equity

5,718,541

5,569,683

5,572,863

5,287,758

5,189,932

Total Liabilities & Shareholders' Equity

$    47,743,294

$    47,019,190

$    49,204,933

$    47,984,078

$    48,313,863

 

Table 5

Consolidated Quarterly Average Balance Sheets

(Unaudited)

 


(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

ASSETS






Cash and due from banks

$         560,581

$         490,161

$         435,569

$         456,938

$         557,009

Interest bearing deposits with other banks and Federal funds sold

1,275,153

1,698,300

2,210,277

2,758,385

3,146,439

Available for sale securities, at fair value

7,302,172

7,636,683

7,915,636

8,033,552

8,269,708

Loans and leases, net of unearned income

33,944,416

33,461,931

33,279,819

32,945,526

32,737,574

Allowance for credit losses

465,332

465,971

469,919

475,181

473,849

Net loans and leases

33,479,084

32,995,960

32,809,900

32,470,345

32,263,725

Loans held for sale, at fair value

115,261

123,211

134,313

114,359

72,356

Premises and equipment, net

785,194

796,394

807,353

815,920

808,473

Goodwill

1,366,923

1,366,923

1,366,923

1,367,358

1,367,785

Other intangible assets, net

81,527

85,323

89,262

93,743

98,350

Bank-owned life insurance

652,689

651,166

650,307

646,124

643,189

Other assets

1,516,847

1,419,417

1,384,437

1,435,995

1,415,506

Total Assets

$    47,135,431

$    47,263,538

$    47,803,977

$    48,192,719

$    48,642,540

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      8,339,414

$      8,676,765

$      8,616,534

$      8,757,029

$      9,072,619

       Interest bearing

19,428,376

18,845,689

18,043,686

18,770,093

19,303,845

 Savings

2,607,366

2,573,961

2,584,761

2,652,019

2,696,452

 Time deposits

9,978,136

9,646,809

8,389,472

7,920,946

7,348,356

Total deposits

40,353,292

39,743,224

37,634,453

38,100,087

38,421,272

Securities sold under agreement to repurchase

22,956

18,053

32,375

65,821

209,348

Other short-term borrowings

108,389

905,815

3,512,218

3,500,000

3,500,000

Subordinated and long-term borrowings

129,030

123,442

265,790

404,231

434,579

Other liabilities

870,172

883,643

938,315

915,326

883,293

Total Liabilities

41,483,839

41,674,177

42,383,151

42,985,465

43,448,492

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

458,830

457,798

455,954

456,618

456,437

Capital surplus

2,744,442

2,735,323

2,725,581

2,724,838

2,733,902

Accumulated other comprehensive loss

(663,883)

(634,307)

(703,619)

(838,710)

(777,940)

Retained earnings

2,945,210

2,863,554

2,775,917

2,697,515

2,614,656

Total Shareholders' Equity

5,651,592

5,589,361

5,420,826

5,207,254

5,194,048

Total Liabilities & Shareholders' Equity

$    47,135,431

$    47,263,538

$    47,803,977

$    48,192,719

$    48,642,540

 

Table 6

Consolidated Statements of Income

(Unaudited)



Quarter Ended

(Dollars in thousands, except per share data)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

INTEREST REVENUE:






Loans and leases

$       530,050

$       540,147

$       555,862

$       539,685

$       528,940

Available for sale securities:






Taxable

53,232

57,476

59,732

62,852

63,405

Tax-exempt

629

635

638

638

687

Loans held for sale

1,449

1,694

1,630

1,652

1,184

Short-term investments

13,897

20,369

29,851

37,383

42,897

Total interest revenue

599,257

620,321

647,713

642,210

637,113

INTEREST EXPENSE:






Interest bearing demand deposits and money market accounts

128,831

135,965

142,179

146,279

149,403

Savings

3,644

3,684

3,695

3,743

3,801

Time deposits

100,900

103,785

94,944

89,173

80,670

Federal funds purchased and securities sold under agreement to repurchase

1,124

293

561

724

2,523

Short-term borrowings

317

10,779

42,003

41,544

42,109

Subordinated and long-term borrowings

1,289

1,284

2,873

4,429

4,699

Total interest expense

236,105

255,790

286,255

285,892

283,205

Net interest revenue

363,152

364,531

361,458

356,318

353,908

Provision for credit losses

20,000

15,000

12,000

22,000

22,000

Net interest revenue, after provision for credit losses

343,152

349,531

349,458

334,318

331,908







NONINTEREST REVENUE:






Wealth management

23,279

23,973

24,110

24,006

22,833

Deposit service charges

17,736

18,694

18,814

17,652

18,338

Credit card, debit card and merchant fees

11,989

12,664

12,649

12,770

12,162

Mortgage banking

6,638

3,554

1,133

6,173

6,443

Security losses

(9)

(3)

(2,947)

(4)

(9)

Other noninterest income

25,754

27,283

32,142

40,061

24,019

Total noninterest revenue

85,387

86,165

85,901

100,658

83,786







NONINTEREST EXPENSE:






Salaries and employee benefits

152,972

152,381

152,237

148,038

156,650

Occupancy and equipment

28,477

27,275

28,894

29,367

28,640

Data processing and software

27,132

33,226

29,164

29,467

30,028

Deposit insurance assessments

8,643

8,284

7,481

15,741

8,414

Amortization of intangibles

3,668

3,904

3,933

3,999

4,066

Merger expense

315

—

—

—

—

Other noninterest expense

38,142

41,116

37,729

30,085

35,409

Total noninterest expense

259,349

266,186

259,438

256,697

263,207

Income before income taxes

169,190

169,510

175,921

178,279

152,487

Income tax expense

35,968

36,795

39,482

40,807

35,509

Net income

133,222

132,715

136,439

137,472

116,978

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Net income available to common shareholders

$       130,850

$       130,343

$       134,067

$       135,100

$       114,606

Diluted earnings per common share

$             0.70

$             0.70

$             0.72

$             0.73

$             0.62

 

Table 7

Selected Loan and Lease Portfolio Data

(Unaudited)



Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

LOAN AND LEASE PORTFOLIO:






Commercial and industrial






Non-real estate

$     8,688,653

$     8,670,529

$     8,692,639

$     9,136,929

$     9,121,457

Owner occupied

4,667,477

4,665,015

4,557,723

4,475,647

4,442,357

Total commercial and industrial

13,356,130

13,335,544

13,250,362

13,612,576

13,563,814

Commercial real estate






Construction, acquisition and development

3,723,408

3,909,184

3,931,821

3,892,527

3,864,351

Income producing

6,268,456

6,015,773

5,978,695

5,851,340

5,783,943

Total commercial real estate

9,991,864

9,924,957

9,910,516

9,743,867

9,648,294

Consumer






Residential mortgages

10,498,320

10,267,883

9,933,222

9,740,713

9,447,675

Other consumer

205,296

213,371

209,872

215,617

222,833

Total consumer

10,703,616

10,481,254

10,143,094

9,956,330

9,670,508

Total loans and leases, net of unearned income

$   34,051,610

$   33,741,755

$   33,303,972

$   33,312,773

$   32,882,616







NONPERFORMING ASSETS






Nonperforming Loans and Leases






Commercial and industrial






Non-real estate

$        118,078

$        145,115

$        148,267

$        121,171

$        149,683

Owner occupied

18,988

16,904

15,127

13,700

5,962

Total commercial and industrial

137,066

162,019

163,394

134,871

155,645

Commercial real estate






Construction, acquisition and development

8,768

8,600

2,034

4,923

3,787

Income producing

8,021

18,542

25,112

15,002

19,428

Total commercial real estate

16,789

27,142

27,146

19,925

23,215

Consumer






Residential mortgages

81,803

75,287

82,191

61,677

61,886

Other consumer

294

244

223

273

261

Total consumer

82,097

75,531

82,414

61,950

62,147

Total nonperforming loans and leases (1)

$        235,952

$        264,692

$        272,954

$        216,746

$        241,007







Other real estate owned and repossessed assets

8,452

5,754

5,354

4,793

5,280

Total nonperforming assets

$        244,404

$        270,446

$        278,308

$        221,539

$        246,287







Government guaranteed portion of nonaccrual loans and
leases covered by the SBA, FHA, VA or USDA

$          84,339

$          89,906

$          81,632

$          71,418

$          59,897







Loans and leases 90+ days past due, still accruing

$            8,832

$          13,126

$          11,757

$            6,150

$          30,048



(1)

At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million.

 

Table 8

Allowance for Credit Losses

(Unaudited)



Quarter Ended

(Dollars in thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

ALLOWANCE FOR CREDIT LOSSES:






Balance, beginning of period

$      460,793

$      460,859

$      470,022

$      472,575

$      468,034

Charge-offs:






Commercial and industrial

(21,284)

(15,116)

(21,620)

(23,340)

(16,997)

Commercial real estate

(1,382)

(167)

(222)

(649)

(2,244)

Consumer

(3,062)

(2,679)

(2,681)

(2,294)

(2,395)

Total loans charged-off

(25,728)

(17,962)

(24,523)

(26,283)

(21,636)

Recoveries:






Commercial and industrial

1,822

2,613

1,647

2,943

1,312

Commercial real estate

83

549

65

101

150

Consumer

821

734

648

686

715

Total recoveries

2,726

3,896

2,360

3,730

2,177

Net charge-offs

(23,002)

(14,066)

(22,163)

(22,553)

(19,459)

Provision for credit losses related to loans and leases

20,000

14,000

13,000

20,000

24,000

Balance, end of period

$      457,791

$      460,793

$      460,859

$      470,022

$      472,575







Average loans and leases, net of unearned income, for period

$ 33,944,416

$ 33,461,931

$ 33,279,819

$ 32,945,526

$ 32,737,574

Ratio: Net charge-offs to average loans and leases (2)

0.27 %

0.17 %

0.26 %

0.28 %

0.24 %







RESERVE FOR UNFUNDED COMMITMENTS (1)






Balance, beginning of period

$          8,551

$          7,551

$          8,551

$          6,551

$          8,551

 Provision (reversal) for credit losses for unfunded commitments

—

1,000

(1,000)

2,000

(2,000)

Balance, end of period

$          8,551

$          8,551

$          7,551

$          8,551

$          6,551



(1)

The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets.

(2)

Annualized. 

 

Table 9

Loan and Lease Portfolio by Grades

(Unaudited)



March 31, 2025

(In thousands)

Pass

Special
Mention

Substandard

Doubtful

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:








Commercial and industrial








Non-real estate

$   8,234,513

$   108,903

$     317,012

$      8,556

$      16,227

$         3,442

$  8,688,653

Owner occupied

4,617,617

—

38,174

—

10,592

1,094

4,667,477

Total commercial and industrial

12,852,130

108,903

355,186

8,556

26,819

4,536

13,356,130

Commercial real estate








Construction, acquisition and development

3,710,504

—

7,031

—

5,873

—

3,723,408

Income producing

6,078,353

39,412

144,159

—

6,532

—

6,268,456

Total commercial real estate

9,788,857

39,412

151,190

—

12,405

—

9,991,864

Consumer








Residential mortgages

10,392,396

—

99,305

—

5,208

1,411

10,498,320

Other consumer

204,701

—

595

—

—

—

205,296

Total consumer

10,597,097

—

99,900

—

5,208

1,411

10,703,616

Total loans and leases, net of unearned income

$ 33,238,084

$   148,315

$     606,276

$      8,556

$      44,432

$         5,947

$  34,051,610



December 31, 2024

(In thousands)

Pass

Special
Mention

Substandard

Doubtful

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:








Commercial and industrial








Non-real estate

$ 8,208,176

$   106,996

$     311,096

$      8,743

$      31,996

$         3,522

$  8,670,529

Owner occupied

4,610,775

815

41,363

—

10,968

1,094

4,665,015

Total commercial and industrial

12,818,951

107,811

352,459

8,743

42,964

4,616

13,335,544

Commercial real estate








Construction, acquisition and development

3,896,856

—

12,262

—

66

—

3,909,184

Income producing

5,850,702

5,094

144,084

—

15,893

—

6,015,773

Total commercial real estate

9,747,558

5,094

156,346

—

15,959

—

9,924,957

Consumer








Residential mortgages

10,167,830

891

89,597

—

8,154

1,411

10,267,883

Other consumer

212,865

—

506

—

—

—

213,371

Total consumer

10,380,695

891

90,103

—

8,154

1,411

10,481,254

Total loans and leases, net of unearned income

$  32,947,204

$   113,796

$     598,908

$      8,743

$      67,077

$         6,027

$  33,741,755

 

Table 10

Geographical Loan and Lease Information

(Unaudited)



March 31, 2025

(Dollars in thousands)

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:












Commercial and industrial












Non-real estate

$  424,598

$  157,460

$  576,477

$  464,611

$  375,154

$  534,964

$    65,370

$     338,916

$   3,467,605

$  2,283,498

$   8,688,653

Owner occupied

338,752

244,335

306,890

429,592

294,980

590,076

99,197

159,241

1,766,119

438,295

4,667,477

Total commercial and industrial

763,350

401,795

883,367

894,203

670,134

1,125,040

164,567

498,157

5,233,724

2,721,793

13,356,130

Commercial real estate












Construction, acquisition and development

220,664

79,437

371,396

443,876

48,561

166,644

36,117

184,595

1,714,761

457,357

3,723,408

Income producing

434,990

258,337

544,896

783,768

226,924

423,200

215,550

315,125

2,323,475

742,191

6,268,456

Total commercial real estate

655,654

337,774

916,292

1,227,644

275,485

589,844

251,667

499,720

4,038,236

1,199,548

9,991,864

Consumer












Residential mortgages

1,309,478

430,005

719,379

455,027

484,751

1,221,895

226,051

821,297

4,571,649

258,788

10,498,320

Other consumer

25,579

17,844

4,776

7,982

10,486

83,368

1,246

15,557

33,872

4,586

205,296

Total consumer

1,335,057

447,849

724,155

463,009

495,237

1,305,263

227,297

836,854

4,605,521

263,374

10,703,616

Total loans and leases, net of unearned income

$2,754,061

$  1,187,418

$  2,523,814

$  2,584,856

$  1,440,856

$  3,020,147

$  643,531

$  1,834,731

$  13,877,481

$  4,184,715

$34,051,610













Loan growth (decline), excluding loans acquired
during the quarter ($)

$      7,495

$    (4,034)

$    53,042

$  124,182

$    17,883

$  (35,469)

$      9,399

$  (36,957)

$  262,192

$  (87,878)

$  309,855

Loan growth (decline), excluding loans acquired
during the quarter (%) (annualized)

1.11 %

(1.37) %

8.71 %

20.47 %

5.10 %

(4.71) %

6.01 %

(8.01) %

7.81 %

(8.34) %

3.72 %














December 31, 2024

(Dollars in thousands)

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:












Commercial and industrial












Non-real estate

$      413,359

$      169,534

$      532,224

$      446,812

$      371,543

$      536,651

$        64,846

$      399,346

$   3,478,755

$   2,257,459

$   8,670,529

Owner occupied

337,580

253,538

308,545

400,342

298,787

624,950

107,443

159,058

1,708,113

466,659

4,665,015

Total commercial and industrial

750,939

423,072

840,769

847,154

670,330

1,161,601

172,289

558,404

5,186,868

2,724,118

13,335,544

Commercial real estate












Construction, acquisition and development

230,810

65,358

438,173

543,249

36,194

169,336

45,690

180,566

1,656,715

543,093

3,909,184

Income producing

437,146

259,767

477,493

613,337

226,849

424,078

204,119

319,560

2,298,344

755,080

6,015,773

Total commercial real estate

667,956

325,125

915,666

1,156,586

263,043

593,414

249,809

500,126

3,955,059

1,298,173

9,924,957

Consumer












Residential mortgages

1,300,485

425,602

709,335

449,117

478,947

1,214,542

210,712

796,490

4,436,803

245,850

10,267,883

Other consumer

27,186

17,653

5,002

7,817

10,653

86,059

1,322

16,668

36,559

4,452

213,371

Total consumer

1,327,671

443,255

714,337

456,934

489,600

1,300,601

212,034

813,158

4,473,362

250,302

10,481,254

Total loans and leases, net of unearned income

$   2,746,566

$   1,191,452

$   2,470,772

$   2,460,674

$   1,422,973

$   3,055,616

$      634,132

$   1,871,688

$ 13,615,289

$   4,272,593

$ 33,741,755

 

Table 11

Noninterest Revenue and Expense

(Unaudited)



Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

NONINTEREST REVENUE:






Trust and asset management income

$         11,823

$         12,485

$         12,055

$         12,645

$         11,322

Investment advisory fees

8,454

8,502

8,641

8,180

8,336

Brokerage and annuity fees

3,002

2,986

3,414

3,181

3,175

Deposit service charges

17,736

18,694

18,814

17,652

18,338

Credit card, debit card and merchant fees

11,989

12,664

12,649

12,770

12,162

Mortgage banking excl. MSR and MSR hedge market
value adjustment

9,743

6,293

8,171

9,875

9,116

MSR and MSR hedge market value adjustment

(3,105)

(2,739)

(7,038)

(3,702)

(2,673)

Security losses, net

(9)

(3)

(2,947)

(4)

(9)

Bank-owned life insurance

5,202

5,046

4,353

4,370

3,946

Other miscellaneous income

20,552

22,237

27,789

35,691

20,073

Total noninterest revenue

$         85,387

$         86,165

$         85,901

$       100,658

$         83,786







NONINTEREST EXPENSE:






Salaries and employee benefits

$       152,972

$       152,381

$       152,237

$       148,038

$       156,650

Occupancy and equipment

28,477

27,275

28,894

29,367

28,640

Data processing and software

27,132

33,226

29,164

29,467

30,028

Deposit insurance assessments

8,643

8,284

7,481

15,741

8,414

Amortization of intangibles

3,668

3,904

3,933

3,999

4,066

Merger expense

315

—

—

—

—

Advertising and public relations

4,157

5,870

5,481

6,537

4,224

Foreclosed property expense

864

621

486

515

268

Telecommunications

1,512

1,359

1,513

1,441

1,545

Travel and entertainment

2,436

2,618

2,612

2,549

2,236

Professional, consulting and outsourcing

4,733

4,540

4,115

3,534

3,935

Legal

3,559

4,176

3,664

758

3,682

Postage and shipping

1,773

1,624

1,677

1,622

2,205

Other miscellaneous expense

19,108

20,308

18,181

13,129

17,314

Total noninterest expense

$       259,349

$       266,186

$       259,438

$       256,697

$       263,207

 

Table 12

Average Balance and Yields

(Unaudited)



Quarter Ended


March 31, 2025


December 31, 2024


March 31, 2024

(Dollars in thousands)

Average

Balance

Income/
Expense

Yield/

Rate


Average

Balance

Income/
Expense

Yield/

Rate


Average

Balance

Income/
Expense

Yield/

Rate

ASSETS












Interest-earning assets:












Loans and leases, excluding accretion

$ 33,944,416

$   527,951

6.31 %


$  33,461,931

$   538,204

6.40 %


$ 32,737,574

$   525,878

6.46 %

Accretion income on acquired loans


2,562

0.03



2,422

0.03



3,515

0.04

Loans held for sale

115,261

1,449

5.10


123,211

1,694

5.47


72,356

1,184

6.58

Investment securities












Taxable

7,222,326

53,232

2.99


7,555,265

57,476

3.03


8,187,342

63,405

3.11

Tax-exempt

79,846

796

4.04


81,418

804

3.93


82,366

870

4.25

Total investment securities

7,302,172

54,028

3.00


7,636,683

58,280

3.04


8,269,708

64,275

3.13

Other investments

1,275,153

13,897

4.42


1,698,300

20,369

4.77


3,146,439

42,897

5.48

Total interest-earning assets

42,637,002

599,887

5.71 %


42,920,125

620,969

5.76 %


44,226,077

637,749

5.80 %

Other assets

4,963,761




4,809,384




4,890,312



Allowance for credit losses

465,332




465,971




473,849



Total assets

$ 47,135,431




$  47,263,538




$ 48,642,540















LIABILITIES AND SHAREHOLDERS' EQUITY












Interest-bearing liabilities:












Interest bearing demand and money market

$ 19,428,376

$   128,831

2.69 %


$  18,845,689

$   135,965

2.87 %


$ 19,303,845

$   149,403

3.11 %

Savings deposits

2,607,366

3,644

0.57


2,573,961

3,684

0.57


2,696,452

3,801

0.57

Time deposits

9,978,136

100,900

4.10


9,646,809

103,785

4.28


7,348,356

80,670

4.42

Total interest-bearing deposits

32,013,878

233,375

2.96


31,066,459

243,434

3.12


29,348,653

233,874

3.21

Fed funds purchased, securities sold under
agreement to repurchase and other

103,067

1,132

4.45


26,042

300

4.58


209,348

2,528

4.86

Short-term FHLB borrowings

28,278

309

4.43


—

—

—


—

—

—

  Short-term BTFP borrowings

—

—

—


897,826

10,772

4.77


3,500,000

42,104

4.84

Subordinated and long-term borrowings

129,030

1,289

4.05


123,442

1,284

4.14


434,579

4,699

4.35

Total interest-bearing liabilities

32,274,253

236,105

2.97 %


32,113,769

255,790

3.17 %


33,492,580

283,205

3.40 %

Noninterest-bearing liabilities:












Demand deposits

8,339,414




8,676,765




9,072,619



Other liabilities

870,172




883,643




883,293



Total liabilities

41,483,839




41,674,177




43,448,492



Shareholders' equity

5,651,592




5,589,361




5,194,048



Total liabilities and shareholders' equity

$ 47,135,431




$  47,263,538




$ 48,642,540



Net interest income/net interest spread


363,782

2.74 %



365,179

2.59 %



354,544

2.40 %

Net yield on earning assets/net interest margin



3.46 %




3.38 %




3.22 %

Taxable equivalent adjustment:












Loans and investment securities


(630)




(648)




(636)


Net interest revenue


$   363,152




$   364,531




$   353,908


 

Table 13

Selected Additional Data

(Unaudited)



Quarter Ended

(Dollars in thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

MORTGAGE SERVICING RIGHTS ("MSR"):






Fair value, beginning of period

$      114,594

$    104,891

$     113,595

$     111,685

$    106,824

Originations of servicing assets

2,796

4,227

3,361

3,687

2,736

Changes in fair value:






Due to changes in valuation inputs or assumptions(1)

(4,447)

9,193

(8,232)

927

4,781

Other changes in fair value(2)

(1,974)

(3,717)

(3,833)

(2,704)

(2,656)

Fair value, end of period

$      110,969

$    114,594

$     104,891

$     113,595

$    111,685







MORTGAGE BANKING REVENUE:






Origination

$          3,402

$           332

$         2,145

$         3,976

$        3,165

Servicing

6,341

5,961

6,026

5,899

5,951

Total mortgage banking revenue excluding MSR

9,743

6,293

8,171

9,875

9,116

Due to changes in valuation inputs or assumptions(1)

(4,447)

9,193

(8,232)

927

4,781

Other changes in fair value(2)

(1,974)

(3,717)

(3,833)

(2,704)

(2,656)

Market value adjustment on MSR Hedge

3,316

(8,215)

5,027

(1,925)

(4,798)

Total mortgage banking revenue

$          6,638

$        3,554

$         1,133

$         6,173

$        6,443







Mortgage loans serviced

$   8,111,379

$ 8,043,306

$  7,927,028

$  7,824,895

$ 7,764,936

MSR/mortgage loans serviced

1.37 %

1.42 %

1.32 %

1.45 %

1.44 %







(1)  Primarily reflects changes in prepayment speeds and discount rate assumptions which are updated based on market interest rates.

(2)  Primarily reflects changes due to realized cash flows.



Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

AVAILABLE FOR SALE SECURITIES, at fair value






U.S. Treasury securities

$                  —

$                  —

$                  —

$                  —

$         239,402

Obligations of U.S. government agencies

274,285

281,231

300,730

305,200

318,233

Mortgage-backed securities issued or guaranteed by U.S. agencies ("MBS"):






Residential pass-through:






Guaranteed by GNMA

66,149

66,581

71,001

69,788

72,034

Issued by FNMA and FHLMC

4,024,678

3,965,556

4,163,760

4,125,416

4,254,227

Other residential mortgage-back securities

1,564,928

934,721

1,135,004

1,233,868

1,210,617

Commercial mortgage-backed securities

1,486,525

1,549,641

1,664,288

1,673,823

1,694,967

Total MBS

7,142,280

6,516,499

7,034,053

7,102,895

7,231,845

Obligations of states and political subdivisions

129,822

132,069

137,996

133,155

134,643

Other domestic debt securities

48,422

47,402

51,599

64,288

67,421

Foreign debt securities

317,350

316,787

317,307

315,884

315,045

Total available for sale securities

$      7,912,159

$      7,293,988

$      7,841,685

$      7,921,422

$      8,306,589

 

Table 14

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Unaudited)


Management evaluates the Company's capital position and adjusted performance by utilizing certain financial measures not calculated in accordance with GAAP, including adjusted net income, adjusted net income available to common shareholders, pre-tax pre-provision net revenue, adjusted pre-tax pre-provision net revenue, total adjusted noninterest revenue, total adjusted noninterest expense, tangible common shareholders' equity to tangible assets, total shareholders' equity (excluding AOCI), common shareholders' equity (excluding AOCI), tangible common shareholders' equity to tangible assets (excluding AOCI), return on average tangible common equity, adjusted return on average tangible common equity, adjusted return on average assets, adjusted return on average common shareholders' equity, adjusted return on average common shareholders' equity, pre-tax pre-provision net revenue to total average assets, adjusted pre-tax pre-provision net revenue to total average assets, adjusted earnings per common share, tangible book value per common share, tangible book value per common share, excluding AOCI, efficiency ratio (tax equivalent), adjusted efficiency ratio (tax equivalent), dividend payout ratio, and adjusted dividend payout ratio. The Company has included these non-GAAP financial measures in this release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures: (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and adjusted performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names.

 

Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

Adjusted Net Income Available to Common Shareholders






Net income

$       133,222

$       132,715

$       136,439

$       137,472

$       116,978

Plus: Merger expense

315

—

—

—

—

Incremental merger related expense

55

—

—

—

—

Gain on extinguishment of debt

—

—

—

(1,098)

(576)

Restructuring and other nonroutine expenses

351

(505)

(920)

6,675

251

Less:   Security losses, net

(9)

(3)

(2,947)

(4)

(9)

Gain on sale of businesses

—

—

—

14,980

—

Tax adjustment

172

(118)

476

(2,209)

(74)

Adjusted net income

133,780

132,331

137,990

130,282

116,736

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Adjusted net income available to common shareholders

$       131,408

$       129,959

$       135,618

$       127,910

$       114,364

 

Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

Pre-Tax Pre-Provision Net Revenue






Net income

$        133,222

$       132,715

$       136,439

$       137,472

$       116,978

Plus:   Provision for credit losses

20,000

15,000

12,000

22,000

22,000

Income tax expense

35,968

36,795

39,482

40,807

35,509

Pre-tax pre-provision net revenue

$        189,190

$       184,510

$       187,921

$       200,279

$       174,487

 

Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

Adjusted Pre-Tax Pre-Provision Net Revenue






Net income

$       133,222

$       132,715

$       136,439

$       137,472

$       116,978

Plus:   Provision for credit losses

20,000

15,000

12,000

22,000

22,000

Merger expense

315

—

—

—

—

Incremental merger related expense

55

—

—

—

—

Gain on extinguishment of debt

—

—

—

(1,098)

(576)

Restructuring and other nonroutine expenses

351

(505)

(920)

6,675

251

Income tax expense

35,968

36,795

39,482

40,807

35,509

Less:   Security losses, net

(9)

(3)

(2,947)

(4)

(9)

Gain on sale of businesses

—

—

—

14,980

—

Adjusted pre-tax pre-provision net revenue

$       189,920

$       184,008

$       189,948

$       190,880

$       174,171

 

Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

Total Adjusted Revenue






Net interest revenue

$       363,152

$       364,531

$       361,458

$       356,318

$       353,908

Total Adjusted Noninterest Revenue






Total noninterest revenue

$         85,387

$         86,165

$         85,901

$       100,658

$         83,786

Less:   Security losses, net

(9)

(3)

(2,947)

(4)

(9)

Gain on sale of businesses

—

—

—

14,980

—

Total adjusted noninterest revenue

$         85,396

$         86,168

$         88,848

$         85,682

$         83,795

Total adjusted revenue

$       448,548

$       450,699

$       450,306

$       442,000

$       437,703

 

Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

Total Adjusted Noninterest Expense






Total noninterest expense

$       259,349

$       266,186

$       259,438

$       256,697

$       263,207

Less:   Merger expense

315

—

—

—

—

Incremental merger related expense

55

—

—

—

—

Gain on extinguishment of debt

—

—

—

(1,098)

(576)

Restructuring and other nonroutine expenses

351

(505)

(920)

6,675

251

Total adjusted noninterest expense

$       258,628

$       266,691

$       260,358

$       251,120

$       263,532

 

Quarter Ended

(In thousands)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

Total Tangible Assets, Excluding AOCI






Total assets

$  47,743,294

$  47,019,190

$  49,204,933

$  47,984,078

$  48,313,863

Less:  Goodwill

1,366,923

1,366,923

1,366,923

1,366,923

1,367,785

Other intangible assets, net

79,522

83,190

87,094

91,027

96,126

Total tangible assets

46,296,849

45,569,077

47,750,916

46,526,128

46,849,952

Less: AOCI

(621,203)

(694,495)

(590,342)

(782,462)

(791,333)

Total tangible assets, excluding AOCI

$  46,918,052

$  46,263,572

$  48,341,258

$  47,308,590

$  47,641,285

 

Quarter Ended

(Dollars in thousands, except per share data)

Mar 2025

Dec 2024

Sep 2024

Jun 2024

Mar 2024

PERIOD END BALANCES:






Total Shareholders' Equity, Excluding AOCI






Total shareholders' equity

$5,718,541

$5,569,683

$5,572,863

$5,287,758

$5,189,932

Less: AOCI

(621,203)

(694,495)

(590,342)

(782,462)

(791,333)

Total shareholders' equity, excluding AOCI

$6,339,744

$6,264,178

$6,163,205

$6,070,220

$5,981,265







Common Shareholders' Equity, Excluding AOCI






Total shareholders' equity

$5,718,541

$5,569,683

$5,572,863

$5,287,758

$5,189,932

Less: preferred stock

166,993

166,993

166,993

166,993

166,993

Common shareholders' equity

5,551,548

5,402,690

5,405,870

5,120,765

5,022,939

Less: AOCI

(621,203)

(694,495)

(590,342)

(782,462)

(791,333)

Common shareholders' equity, excluding AOCI

$6,172,751

$6,097,185

$5,996,212

$5,903,227

$5,814,272







Total Tangible Common Shareholders' Equity, Excluding AOCI






Total shareholders' equity

$5,718,541

$5,569,683

$5,572,863

$5,287,758

$5,189,932

Less:  Goodwill

1,366,923

1,366,923

1,366,923

1,366,923

1,367,785

Other intangible assets, net

79,522

83,190

87,094

91,027

96,126

Preferred stock

166,993

166,993

166,993

166,993

166,993

Total tangible common shareholders' equity

4,105,103

3,952,577

3,951,853

3,662,815

3,559,028

Less: AOCI

(621,203)

(694,495)

(590,342)

(782,462)

(791,333)

Total tangible common shareholders' equity, excluding AOCI

$4,726,306

$4,647,072

$4,542,195

$4,445,277

$4,350,361







AVERAGE BALANCES:






Total Tangible Common Shareholders' Equity






Total shareholders' equity

$5,651,592

$5,589,361

$5,420,826

$5,207,254

$5,194,048

Less:   Goodwill

1,366,923

1,366,923

1,366,923

1,367,358

1,367,785

Other intangible assets, net

81,527

85,323

89,262

93,743

98,350

Preferred stock

166,993

166,993

166,993

166,993

166,993

Total tangible common shareholders' equity

$4,036,149

$3,970,122

$3,797,648

$3,579,160

$3,560,920







Total average assets

$47,135,431

$47,263,538

$47,803,977

$48,192,719

$48,642,540

Total shares of common stock outstanding

184,046,420

183,527,575

182,315,142

182,430,427

182,681,325

Average shares outstanding-diluted

186,121,979

186,038,243

185,496,110

185,260,963

185,574,130







Tangible common shareholders' equity to tangible assets (1)

8.87 %

8.67 %

8.28 %

7.87 %

7.60 %

Tangible common shareholders' equity, excluding AOCI, to
tangible assets, excluding AOCI (2)

10.07

10.04

9.40

9.40

9.13

Return on average tangible common equity (3)

13.15

13.06

14.04

15.18

12.94

Adjusted return on average tangible common equity (4)

13.20

13.02

14.21

14.37

12.92

Adjusted return on average assets (5)

1.15

1.11

1.15

1.09

0.97

Adjusted return on average common shareholders' equity (6)

9.72

9.53

10.27

10.21

9.15

Pre-tax pre-provision net revenue to total average assets (7)

1.63

1.55

1.56

1.67

1.44

Adjusted pre-tax pre-provision net revenue to total average assets (8)

1.63

1.55

1.58

1.59

1.44

Tangible book value per common share (9)

$        22.30

$        21.54

$        21.68

$        20.08

$        19.48

Tangible book value per common share, excluding AOCI (10)

25.68

25.32

24.91

24.37

23.81

Adjusted earnings per common share (11)

$          0.71

$          0.70

$          0.73

$          0.69

$          0.62

Adjusted dividend payout ratio (12)

38.73 %

35.71 %

34.25 %

36.23 %

40.32 %

 

Definitions of Non-GAAP Measures:

(1)

Tangible common shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less preferred stock, goodwill and other intangible assets, net, divided by the difference of total assets less goodwill and other intangible assets, net.

(2)

Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI, is defined by the Company as total shareholders' equity less preferred stock, goodwill, other intangible assets, net and accumulated other comprehensive loss, divided by the difference of total assets less goodwill, accumulated other comprehensive loss, and other intangible assets, net.

(3)

Return on average tangible common equity is defined by the Company as annualized net income available to common shareholders divided by average tangible common shareholders equity.

(4)

Adjusted return on average tangible common equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average tangible common shareholders' equity.

(5)

Adjusted return on average assets is defined by the Company as annualized net adjusted income divided by total average assets.

(6)

Adjusted return on average common shareholders' equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average common shareholders' equity.

(7)

Pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue divided by total average assets.

(8)

Adjusted pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized adjusted pre-tax pre-provision net revenue divided by total average assets adjusted for items included in the definition and calculation of adjusted income.

(9)

Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding.

(10)

Tangible book value per common share, excluding AOCI is defined by the Company as tangible common shareholders' equity less accumulated other comprehensive loss divided by total shares of common stock outstanding.

(11)

Adjusted earnings per common share is defined by the Company as net adjusted income available to common shareholders divided by average common shares outstanding-diluted.

(12)

Adjusted dividend payout ratio is defined by the Company as common share dividends divided by net adjusted income available to common shareholders.

 

Efficiency Ratio-Fully Taxable Equivalent and Adjusted Efficiency Ratio-Fully Taxable Equivalent Definitions

The efficiency ratio and the adjusted efficiency ratio are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment. The adjusted efficiency ratio excludes income and expense items otherwise disclosed as non-routine from total noninterest expense.

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SOURCE Cadence Bank