10/20/2021 | Press release | Distributed by Public on 10/20/2021 14:11
($ in thousands except per share amounts) | GAAP / As Reported |
Non-GAAP / As Adjusted1
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September 30, 2020 | September 30, 2021 | Change % / bps | September 30, 2020 | September 30, 2021 | Change % / bps | |||||||
Total assets | $ | 30,617,722 | $ | 30,028,425 | (1.9) | % | $ | 30,617,722 | $ | 30,028,425 | (1.9) | % |
Total portfolio loans, gross | 22,281,940 | 21,276,549 | (4.5) | 22,281,940 | 21,276,549 | (4.5) | ||||||
Total deposits | 24,255,333 | 23,936,023 | (1.3) | 24,255,333 | 23,936,023 | (1.3) | ||||||
PPNR1, 2
|
126,687 | 121,416 | (4.2) | 123,286 | 120,734 | (2.1) | ||||||
Net income available to common | 82,438 | 93,715 | 13.7 | 87,682 | 99,589 | 13.6 | ||||||
Diluted EPS available to common | 0.43 | 0.49 | 14.0 | 0.45 | 0.52 | 15.6 | ||||||
Net interest margin | 3.19 | % | 3.30 | % | 11 | 3.24 | % | 3.35 | % | 11 | ||
Tangible book value per common share1
|
$ | 13.57 | $ | 15.03 | 10.8 | $ | 13.57 | $ | 15.03 | 10.8 |
($ in thousands except per share amounts) | GAAP / As Reported |
Non-GAAP / As Adjusted1
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June 30, 2021 | September 30, 2021 | Change % / bps | June 30, 2021 | September 30, 2021 | Change % / bps | |||||
PPNR1, 2
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$ | 128,112 | $ | 121,416 | (5.2) | $ | 124,647 | $ | 120,734 | (3.1) |
Net income available to common | 96,380 | 93,715 | (2.8) | 100,444 | 99,589 | (0.9) | ||||
Diluted EPS available to common | 0.50 | 0.49 | (2.0) | 0.52 | 0.52 | - | ||||
Net interest margin | 3.38 | % | 3.30 | % | (8) | 3.42 | % | 3.35 | % | (7) |
Operating efficiency ratio3
|
48.5 | 50.7 | 220 | 44.1 | 45.4 | 130 | ||||
Allowance for credit losses ("ACL") - loans | $ | 314,873 | $ | 309,915 | (1.6) | $ | 314,873 | $ | 309,915 | (1.6) |
ACL to portfolio loans | 1.52 | % | 1.46 | % | (6) | 1.52 | % | 1.46 | % | (6) |
ACL to NPLs | 181.7 | 150.8 | (31) | 181.7 | 150.8 | (31) | ||||
Tangible book value per common share1
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$ | 14.62 | $ | 15.03 | 2.8 | $ | 14.62 | $ | 15.03 | 2.8 |
1. Non-GAAP / as adjusted measures are defined in the non-GAAP tables beginning on page 19.
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2. PPNR represents pretax pre-provision net revenue. PPNR and PPNR excluding accretion income are non-GAAP measures and are measured as net interest income plus non-interest income less operating expenses before tax.
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3. Operating efficiency ratio is a non-GAAP measure. See page 24 for an explanation of the operating efficiency ratio.
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Non-GAAP financial measures include the terms "adjusted" or "excluding". See the reconciliation of the Company's non-GAAP financial measures beginning on page 19.
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($ in thousands) | For the three months ended | Change % / bps | ||||||||
September 30, 2020 | June 30, 2021 | September 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Interest and dividend income | $ | 244,658 | $ | 230,310 | $ | 225,089 | (8.0) | % | (2.3) | % |
Interest expense | 26,834 | 11,783 | 11,252 | (58.1) | (4.5) | |||||
Net interest income | $ | 217,824 | $ | 218,527 | $ | 213,837 | (1.8) | (2.1) | ||
Accretion income on acquired loans | $ | 9,172 | $ | 7,812 | $ | 6,197 | (32.4) | % | (20.7) | % |
Yield on loans | 3.82 | % | 3.88 | % | 3.79 | % | (3) | (9) | ||
Tax equivalent yield on investment securities4
|
3.09 | 2.84 | 2.77 | (32) | (7) | |||||
Tax equivalent yield on interest earning assets4
|
3.63 | 3.61 | 3.52 | (11) | (9) | |||||
Cost of total deposits | 0.31 | 0.11 | 0.11 | (20) | - | |||||
Cost of interest bearing deposits | 0.40 | 0.15 | 0.14 | (26) | (1) | |||||
Cost of borrowings | 1.95 | 3.87 | 3.87 | 192 | - | |||||
Cost of interest bearing liabilities | 0.53 | 0.26 | 0.25 | (28) | (1) | |||||
Total cost of funding liabilities5
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0.42 | 0.20 | 0.19 | (23) | (1) | |||||
Tax equivalent net interest margin6
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3.24 | 3.42 | 3.35 | 11 | (7) | |||||
Average loans, including loans held for sale
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$ | 22,159,535 | $ | 20,843,661 | $ | 20,629,138 | (6.9) | % | (1.0) | % |
Average commercial loans
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20,090,445 | 19,245,641 | 19,093,778 | (5.0) | (0.8) | |||||
Average investment securities
|
4,392,864 | 4,322,126 | 4,320,243 | (1.7) | - | |||||
Average cash balances
|
424,249 | 651,271 | 604,396 | 42.5 | (7.2) | |||||
Average total interest earning assets
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27,163,337 | 25,968,935 | 25,705,007 | (5.4) | (1.0) | |||||
Average deposits and mortgage escrow
|
23,665,916 | 23,516,675 | 23,151,444 | (2.2) | (1.6) |
($ in thousands) | For the three months ended | Change % | ||||||||
September 30, 2020 | June 30, 2021 | September 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Deposit fees and service charges | $ | 5,960 | $ | 7,096 | $ | 7,007 | 17.6 | % | (1.3) | % |
Accounts receivable management / factoring commissions and other related fees | 5,393 | 5,491 | 5,937 | 10.1 | % | 8.1 | % | |||
Bank owned life insurance ("BOLI") | 5,363 | 4,981 | 5,009 | (6.6) | % | 0.6 | % | |||
Loan commissions and fees | 7,290 | 8,762 | 8,620 | 18.2 | % | (1.6) | % | |||
Investment management fees | 1,735 | 2,018 | 1,819 | 4.8 | % | (9.9) | % | |||
Net gain on sale of securities | 642 | - | 1,656 | 157.9 | % | NM | ||||
Net (loss) gain on security calls | - | (80) | 85 | NM | NM | |||||
Other | 1,842 | 1,946 | 2,414 | 31.1 | % | 24.0 | % | |||
Total non-interest income | 28,225 | 30,214 | 32,547 | 15.3 | % | 7.7 | % | |||
Net gain on sale of securities | 642 | - | 1,656 | 157.9 | % | NM | ||||
Adjusted non-interest income | $ | 27,583 | $ | 30,214 | $ | 30,891 | 12.0 | % | 2.2 | % |
($ in thousands) | For the three months ended | Change % / bps | ||||||||
September 30, 2020 | June 30, 2021 | September 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Compensation and benefits | $ | 55,960 | $ | 56,953 | $ | 57,178 | 2.2 | % | 0.4 | % |
Stock-based compensation plans | 5,869 | 6,781 | 6,648 | 13.3 | (2.0) | |||||
Occupancy and office operations | 14,722 | 13,875 | 13,967 | (5.1) | 0.7 | |||||
Information technology
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8,422 | 9,741 | 10,214 | 21.3 | 4.9 | |||||
Professional fees | 6,343 | 7,561 | 7,251 | 14.3 | (4.1) | |||||
Amortization of intangible assets
|
4,200 | 3,776 | 3,776 | (10.1) | - | |||||
FDIC insurance and regulatory assessments
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3,332 | 2,344 | 2,844 | (14.6) | 21.3 | |||||
Other real estate owned ("OREO"), net
|
151 | (72) | 1 | NM | NM | |||||
Merger-related expenses | - | 2,481 | 4,581 | NM | 84.6 | |||||
Impairment related to financial centers and real estate consolidation strategy | - | 475 | 118 | NM | (75.2) | |||||
Loss on extinguishment of borrowings
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6,241 | 1,243 | - | (100.0) | (100.0) | |||||
Other expenses
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14,122 | 15,471 | 18,390 | 30.2 | 18.9 | |||||
Total non-interest expense
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$ | 119,362 | $ | 120,629 | $ | 124,968 | 4.7 | 3.6 | ||
Full time equivalent employees ("FTEs") at period end
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1,466 | 1,491 | 1,460 | (0.4) | (2.1) | |||||
Financial centers at period end | 78 | 72 | 72 | (7.7) | - | |||||
Operating efficiency ratio, as reported7
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48.5 | % | 48.5 | % | 50.7 | % | 220 | 220 | ||
Operating efficiency ratio, as adjusted7
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43.1 | 44.1 | 45.4 | 230 | 130 | |||||
7. See a reconciliation of non-GAAP financial measures beginning on page 19.
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($ in thousands) | As of | Change % / bps | ||||||||
September 30, 2020 | June 30, 2021 | September 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Total assets | $ | 30,617,722 | $ | 29,143,918 | $ | 30,028,425 | (1.9) | % | 3.0 | % |
Total portfolio loans, gross | 22,281,940 | 20,724,097 | 21,276,549 | (4.5) | 2.7 | |||||
Commercial & industrial ("C&I") loans
|
9,331,717 | 8,335,044 | 8,794,329 | (5.8) | 5.5 | |||||
Commercial real estate loans (including multi-family)
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10,377,282 | 10,143,157 | 10,238,337 | (1.3) | 0.9 | |||||
Acquisition, development and construction ("ADC") loans
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633,166 | 690,224 | 694,443 | 9.7 | 0.6 | |||||
Total commercial loans | 20,342,165 | 19,168,425 | 19,727,109 | (3.0) | 2.9 | |||||
Residential mortgage loans | 1,739,563 | 1,389,294 | 1,395,248 | (19.8) | 0.4 | |||||
Loan portfolio composition: | ||||||||||
Commercial & industrial ("C&I") loans
|
41.8 | % | 40.2 | % | 41.3 | % | (50) | 110 | ||
Commercial real estate loans (including multi-family)
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46.6 | 49.0 | 48.1 | 150 | (90) | |||||
Acquisition, development and construction ("ADC") loans
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2.9 | 3.3 | 3.3 | 40 | - | |||||
Residential and consumer | 8.7 | 7.5 | 7.3 | (140) | (20) | |||||
BOLI | $ | 625,236 | $ | 635,411 | $ | 640,294 | 2.4 | 0.8 | ||
Core deposits9
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22,563,276 | 22,603,302 | 23,392,701 | 3.7 | 3.5 | |||||
Total deposits | 24,255,333 | 23,146,711 | 23,936,023 | (1.3) | 3.4 | |||||
Municipal deposits (included in core deposits) | 2,397,072 | 1,844,719 | 2,443,905 | 2.0 | 32.5 | |||||
Investment securities, net | 4,201,350 | 4,366,470 | 4,283,969 | 2.0 | (1.9) | |||||
Investment securities, net to earning assets
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15.6 | % | 17.2 | % | 16.5 | % | 90 | (70) | ||
Total borrowings | $ | 993,535 | $ | 518,021 | $ | 523,406 | (47.3) | 1.0 | ||
Loans to deposits | 91.9 | % | 89.5 | % | 88.9 | % | (300) | (60) | ||
Core deposits9 to total deposits
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93.0 | 97.7 | 97.7 | 470 | - |
($ in thousands) | For the three months ended | Change % / bps | ||||||||
September 30, 2020 | June 30, 2021 | September 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Provision for credit losses - loans | $ | 31,000 | $ | 6,000 | $ | - | (100.0) | % | (100.0) | % |
Net charge-offs | 70,546 | 14,313 | 4,958 | (93.0) | (65.4) | |||||
ACL - loans | 325,943 | 314,873 | 309,915 | (4.9) | (1.6) | |||||
Loans 30 to 89 days past due, accruing | 68,979 | 39,476 | 68,719 | (0.4) | 74.1 | |||||
Non-performing loans
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180,851 | 173,319 | 205,453 | 13.6 | 18.5 | |||||
Annualized net charge-offs to average loans
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1.27 | % | 0.28 | % | 0.10 | % | (117) | (18) | ||
Special mention loans | $ | 204,267 | $ | 388,535 | $ | 351,692 | 72.2 | (9.5) | ||
Substandard loans | 375,427 | 611,805 | 621,901 | 65.7 | 1.7 | |||||
Total criticized and classified loans | 579,694 | 1,004,940 | 977,946 | 68.7 | (2.7) | |||||
ACL - loans to total loans
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1.46 | % | 1.52 | % | 1.46 | % | - | (6) | ||
ACL - loans to non-performing loans
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180.2 | 181.7 | 150.8 | (2,940) | (3,090) |
($ in thousands, except share and per share data)
|
As of | Change % / bps | ||||||||
September 30, 2020 | June 30, 2021 | September 30, 2021 | Y-o-Y | Linked Qtr | ||||||
Total stockholders' equity | $ | 4,557,785 | $ | 4,722,856 | $ | 4,797,629 | 5.3 | % | 1.6 | % |
Preferred stock
|
136,917 | 136,224 | 135,986 | (0.7) | (0.2) | |||||
Goodwill and other intangible assets
|
1,781,246 | 1,769,494 | 1,765,718 | (0.9) | (0.2) | |||||
Tangible common stockholders' equity 10
|
$ | 2,639,622 | $ | 2,817,138 | $ | 2,895,925 | 9.7 | 2.8 | ||
Common shares outstanding | 194,458,841 | 192,715,433 | 192,681,503 | (0.9) | - | |||||
Book value per common share | $ | 22.73 | $ | 23.80 | $ | 24.19 | 6.4 | 1.6 | ||
Tangible book value per common share 10
|
13.57 | 14.62 | 15.03 | 10.8 | 2.8 | |||||
Tangible common equity as a % of tangible assets 10
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9.15 | % | 10.29 | % | 10.25 | % | 110 | (4) | ||
Est. Tier 1 leverage ratio - Company | 9.93 | 10.91 | 11.35 | 142 | 44 | |||||
Est. Tier 1 leverage ratio - Company fully implemented | 9.59 | 10.55 | 10.99 | 140 | 44 | |||||
Est. Tier 1 leverage ratio - Bank
|
10.48 | 12.10 | 12.60 | 212 | 50 | |||||
Est. Tier 1 leverage ratio - Bank fully implemented | 10.13 | 11.74 | 12.25 | 212 | 51 | |||||
10 See a reconciliation of non-GAAP financial measures beginning on page 19.
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September 30, 2020 | December 31, 2020 | September 30, 2021 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | 437,558 | $ | 305,002 | $ | 929,320 |
Investment securities, net | 4,201,350 | 4,039,456 | 4,283,969 | |||
Loans held for sale | 36,826 | 11,749 | - | |||
Portfolio loans: | ||||||
Commercial and industrial ("C&I") | 9,331,717 | 9,160,268 | 8,794,329 | |||
Commercial real estate (including multi-family) | 10,377,282 | 10,238,650 | 10,238,337 | |||
Acquisition, development and construction ("ADC") loans | 633,166 | 642,943 | 694,443 | |||
Residential mortgage | 1,739,563 | 1,616,641 | 1,395,248 | |||
Consumer | 200,212 | 189,907 | 154,192 | |||
Total portfolio loans, gross | 22,281,940 | 21,848,409 | 21,276,549 | |||
ACL - loans | (325,943) | (326,100) | (309,915) | |||
Total portfolio loans, net | 21,955,997 | 21,522,309 | 20,966,634 | |||
FHLB and Federal Reserve Bank Stock, at cost
|
167,293 | 166,190 | 151,004 | |||
Accrued interest receivable | 102,379 | 97,505 | 99,450 | |||
Premises and equipment, net | 217,481 | 202,555 | 202,519 | |||
Goodwill | 1,683,482 | 1,683,482 | 1,683,482 | |||
Other intangibles | 97,764 | 93,564 | 82,236 | |||
BOLI | 625,236 | 629,576 | 640,294 | |||
Other real estate owned | 6,919 | 5,347 | 816 | |||
Other assets | 1,085,437 | 1,063,403 | 988,701 | |||
Total assets | $ | 30,617,722 | $ | 29,820,138 | $ | 30,028,425 |
Liabilities: | ||||||
Deposits | $ | 24,255,333 | $ | 23,119,522 | $ | 23,936,023 |
FHLB borrowings | 397,000 | 382,000 | - | |||
Federal Funds Purchased | - | 277,000 | - | |||
Paycheck Protection Program Lending Facility | 117,497 | - | - | |||
Other borrowings | 35,223 | 27,101 | 31,023 | |||
Subordinated notes - Company | 270,445 | 491,910 | 492,383 | |||
Subordinated notes - Bank | 173,370 | 143,703 | - | |||
Mortgage escrow funds | 84,031 | 59,686 | 79,221 | |||
Other liabilities | 727,038 | 728,702 | 692,146 | |||
Total liabilities | 26,059,937 | 25,229,624 | 25,230,796 | |||
Stockholders' equity: | ||||||
Preferred stock | 136,917 | 136,689 | 135,986 | |||
Common stock | 2,299 | 2,299 | 2,299 | |||
Additional paid-in capital | 3,761,216 | 3,761,993 | 3,760,279 | |||
Treasury stock | (660,312) | (686,911) | (697,433) | |||
Retained earnings | 1,229,799 | 1,291,628 | 1,539,354 | |||
Accumulated other comprehensive income | 87,866 | 84,816 | 57,144 | |||
Total stockholders' equity | 4,557,785 | 4,590,514 | 4,797,629 | |||
Total liabilities and stockholders' equity | $ | 30,617,722 | $ | 29,820,138 | $ | 30,028,425 |
Shares of common stock outstanding at period end | 194,458,841 | 192,923,371 | 192,681,503 | |||
Book value per common share | $ | 22.73 | $ | 23.09 | $ | 24.19 |
Tangible book value per common share1
|
13.57 | 13.87 | 15.03 | |||
1 See reconciliation of non-GAAP financial measures beginning on page 19.
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For the Quarter Ended | For the Nine Months Ended | |||||||||
September 30, 2020 | June 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | ||||||
Interest and dividend income: | ||||||||||
Loans and loan fees | $ | 213,009 | $ | 201,685 | $ | 197,157 | $ | 668,352 | $ | 604,697 |
Securities taxable | 18,623 | 15,749 | 15,433 | 58,107 | 46,534 | |||||
Securities non-taxable | 12,257 | 11,718 | 11,607 | 38,085 | 35,063 | |||||
Other earning assets | 769 | 1,158 | 892 | 6,867 | 2,952 | |||||
Total interest and dividend income | 244,658 | 230,310 | 225,089 | 771,411 | 689,246 | |||||
Interest expense: | ||||||||||
Deposits | 18,251 | 6,698 | 6,161 | 92,142 | 21,727 | |||||
Borrowings | 8,583 | 5,085 | 5,091 | 36,374 | 17,241 | |||||
Total interest expense | 26,834 | 11,783 | 11,252 | 128,516 | 38,968 | |||||
Net interest income | 217,824 | 218,527 | 213,837 | 642,895 | 650,278 | |||||
Provision for credit losses - loans | 31,000 | 6,000 | - | 224,183 | 16,000 | |||||
Provision for credit losses - held to maturity securities | (1,000) | (750) | - | 703 | (750) | |||||
Net interest income after provision for credit losses | 187,824 | 213,277 | 213,837 | 418,009 | 635,028 | |||||
Non-interest income: | ||||||||||
Deposit fees and service charges | 5,960 | 7,096 | 7,007 | 17,928 | 20,666 | |||||
Accounts receivable management / factoring commissions and other related fees | 5,393 | 5,491 | 5,937 | 15,349 | 16,854 | |||||
BOLI | 5,363 | 4,981 | 5,009 | 15,331 | 14,945 | |||||
Loan commissions and fees | 7,290 | 8,762 | 8,620 | 26,317 | 27,859 | |||||
Investment management fees | 1,735 | 2,018 | 1,819 | 4,960 | 5,689 | |||||
Net gain on sale of securities | 642 | - | 1,656 | 9,539 | 2,361 | |||||
Net (loss) gain on security calls | - | (80) | 85 | 4,880 | 19 | |||||
Other | 1,842 | 1,946 | 2,414 | 7,337 | 6,724 | |||||
Total non-interest income | 28,225 | 30,214 | 32,547 | 101,641 | 95,117 | |||||
Non-interest expense: | ||||||||||
Compensation and benefits | 55,960 | 56,953 | 57,178 | 165,504 | 172,218 | |||||
Stock-based compensation plans | 5,869 | 6,781 | 6,648 | 17,788 | 20,046 | |||||
Occupancy and office operations | 14,722 | 13,875 | 13,967 | 44,616 | 42,357 | |||||
Information technology | 8,422 | 9,741 | 10,214 | 23,752 | 29,201 | |||||
Professional fees | 6,343 | 7,561 | 7,251 | 17,550 | 21,889 | |||||
Amortization of intangible assets | 4,200 | 3,776 | 3,776 | 12,600 | 11,328 | |||||
FDIC insurance and regulatory assessments | 3,332 | 2,344 | 2,844 | 10,176 | 8,418 | |||||
Other real estate owned, net | 151 | (72) | 1 | 1,436 | (139) | |||||
Merger-related expenses | - | 2,481 | 4,581 | - | 7,062 | |||||
Impairment related to financial centers and real estate consolidation strategy | - | 475 | 118 | - | 1,226 | |||||
Loss on extinguishment of borrowings | 6,241 | 1,243 | - | 16,713 | 1,243 | |||||
Other | 14,122 | 15,471 | 18,390 | 48,821 | 48,913 | |||||
Total non-interest expense | 119,362 | 120,629 | 124,968 | 358,956 | 363,762 | |||||
Income before income tax expense | 96,687 | 122,862 | 121,416 | 160,694 | 366,383 | |||||
Income tax expense | 12,280 | 24,523 | 25,745 | 11,348 | 73,223 | |||||
Net income | 84,407 | 98,339 | 95,671 | 149,346 | 293,160 | |||||
Preferred stock dividend | 1,969 | 1,959 | 1,956 | 5,917 | 5,878 | |||||
Net income available to common stockholders | $ | 82,438 | $ | 96,380 | $ | 93,715 | $ | 143,429 | $ | 287,282 |
Weighted average common shares: | ||||||||||
Basic | 193,494,929 | 191,436,885 | 191,508,071 | 194,436,137 | 191,606,643 | |||||
Diluted | 193,715,943 | 192,292,989 | 192,340,487 | 194,677,020 | 192,417,008 | |||||
Earnings per common share: | ||||||||||
Basic earnings per share | $ | 0.43 | $ | 0.50 | $ | 0.49 | $ | 0.74 | $ | 1.50 |
Diluted earnings per share | 0.43 | 0.50 | 0.49 | 0.74 | 1.49 | |||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.21 | 0.21 |
As of and for the Quarter Ended | ||||||||||
End of Period | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | |||||
Total assets | $ | 30,617,722 | $ | 29,820,138 | $ | 29,914,282 | $ | 29,143,918 | $ | 30,028,425 |
Tangible assets 1
|
28,836,476 | 28,043,092 | 28,141,012 | 27,374,424 | 28,262,707 | |||||
Securities available for sale | 2,419,458 | 2,298,618 | 2,524,671 | 2,671,000 | 2,614,822 | |||||
Securities held to maturity, net | 1,781,892 | 1,740,838 | 1,716,786 | 1,695,470 | 1,669,147 | |||||
Loans held for sale2
|
36,826 | 11,749 | 36,237 | 19,088 | - | |||||
Portfolio loans | 22,281,940 | 21,848,409 | 21,151,973 | 20,724,097 | 21,276,549 | |||||
Goodwill | 1,683,482 | 1,683,482 | 1,683,482 | 1,683,482 | 1,683,482 | |||||
Other intangibles | 97,764 | 93,564 | 89,788 | 86,012 | 82,236 | |||||
Deposits | 24,255,333 | 23,119,522 | 23,841,718 | 23,146,711 | 23,936,023 | |||||
Municipal deposits (included above) | 2,397,072 | 1,648,945 | 2,047,349 | 1,844,719 | 2,443,905 | |||||
Borrowings | 993,535 | 1,321,714 | 667,499 | 518,021 | 523,406 | |||||
Stockholders' equity | 4,557,785 | 4,590,514 | 4,620,164 | 4,722,856 | 4,797,629 | |||||
Tangible common equity 1
|
2,639,622 | 2,676,779 | 2,710,436 | 2,817,138 | 2,895,925 | |||||
Quarterly Average Balances | ||||||||||
Total assets | 30,652,856 | 30,024,165 | 29,582,605 | 29,390,977 | 29,147,332 | |||||
Tangible assets 1
|
28,868,840 | 28,244,364 | 27,806,859 | 27,619,006 | 27,379,123 | |||||
Loans, gross: | ||||||||||
Commercial real estate (includes multi-family) | 10,320,930 | 10,191,707 | 10,283,292 | 10,331,355 | 10,121,953 | |||||
ADC | 636,061 | 685,368 | 624,259 | 645,094 | 711,020 | |||||
C&I: | ||||||||||
Traditional C&I (includes PPP loans) | 3,339,872 | 3,155,851 | 2,917,721 | 2,918,285 | 3,041,352 | |||||
Asset-based lending3
|
864,075 | 876,377 | 751,861 | 713,428 | 686,904 | |||||
Payroll finance3
|
143,579 | 162,762 | 146,839 | 151,333 | 158,335 | |||||
Warehouse lending3
|
1,550,425 | 1,637,507 | 1,546,947 | 1,203,374 | 1,105,046 | |||||
Factored receivables3
|
163,388 | 214,021 | 224,845 | 215,590 | 216,964 | |||||
Equipment financing3
|
1,590,855 | 1,535,582 | 1,474,993 | 1,412,812 | 1,313,667 | |||||
Public sector finance3
|
1,481,260 | 1,532,899 | 1,583,066 | 1,654,370 | 1,738,537 | |||||
Total C&I | 9,133,454 | 9,114,999 | 8,646,272 | 8,269,192 | 8,260,805 | |||||
Residential mortgage | 1,862,390 | 1,691,567 | 1,558,266 | 1,427,055 | 1,374,398 | |||||
Consumer | 206,700 | 195,870 | 182,461 | 170,965 | 160,962 | |||||
Loans, total4
|
22,159,535 | 21,879,511 | 21,294,550 | 20,843,661 | 20,629,138 | |||||
Securities (taxable) | 2,363,059 | 2,191,333 | 2,103,768 | 2,378,213 | 2,393,325 | |||||
Securities (non-taxable) | 2,029,805 | 1,964,451 | 1,951,210 | 1,943,913 | 1,926,918 | |||||
Other interest earning assets | 610,938 | 487,696 | 800,204 | 803,148 | 755,626 | |||||
Total interest earning assets | 27,163,337 | 26,522,991 | 26,149,732 | 25,968,935 | 25,705,007 | |||||
Deposits: | ||||||||||
Non-interest bearing demand | 5,385,939 | 5,530,334 | 5,521,538 | 5,747,679 | 6,001,982 | |||||
Interest bearing demand | 4,688,343 | 4,870,544 | 4,981,415 | 4,964,386 | 4,686,129 | |||||
Savings (including mortgage escrow funds) | 2,727,475 | 2,712,041 | 2,717,622 | 2,777,651 | 2,721,327 | |||||
Money market | 8,304,834 | 8,577,920 | 8,382,533 | 8,508,735 | 8,369,994 | |||||
Certificates of deposit | 2,559,325 | 2,158,348 | 1,943,820 | 1,518,224 | 1,372,012 | |||||
Total deposits and mortgage escrow | 23,665,916 | 23,849,187 | 23,546,928 | 23,516,675 | 23,151,444 | |||||
Borrowings | 1,747,941 | 852,057 | 721,642 | 527,272 | 522,332 | |||||
Stockholders' equity | 4,530,334 | 4,591,770 | 4,616,660 | 4,670,718 | 4,768,712 | |||||
Tangible common stockholders' equity 1
|
2,609,179 | 2,675,055 | 2,704,227 | 2,762,292 | 2,864,282 | |||||
1 See a reconciliation of non-GAAP financial measures beginning on page 19.
|
||||||||||
2 Loans held for sale mainly includes commercial syndication loans.
|
||||||||||
3 Asset-based lending, payroll finance, warehouse lending, factored receivables, equipment financing and public sector finance comprise our commercial finance loan portfolio.
|
||||||||||
4 Includes loans held for sale, but excludes allowance for credit losses.
|
As of and for the Quarter Ended | ||||||||||
Per Common Share Data | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | |||||
Basic earnings per share | $ | 0.43 | $ | 0.39 | $ | 0.51 | $ | 0.50 | $ | 0.49 |
Diluted earnings per share | 0.43 | 0.38 | 0.50 | 0.50 | 0.49 | |||||
Adjusted diluted earnings per share, non-GAAP 1
|
0.45 | 0.49 | 0.51 | 0.52 | 0.52 | |||||
Dividends declared per common share | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | |||||
Book value per common share | 22.73 | 23.09 | 23.28 | 23.80 | 24.19 | |||||
Tangible book value per common share1
|
13.57 | 13.87 | 14.08 | 14.62 | 15.03 | |||||
Shares of common stock o/s | 194,458,841 | 192,923,371 | 192,567,901 | 192,715,433 | 192,681,503 | |||||
Basic weighted average common shares o/s
|
193,494,929 | 193,036,678 | 191,890,512 | 191,436,885 | 191,508,071 | |||||
Diluted weighted average common shares o/s
|
193,715,943 | 193,530,930 | 192,621,907 | 192,292,989 | 192,340,487 | |||||
Performance Ratios (annualized) | ||||||||||
Return on average assets | 1.07 | % | 0.99 | % | 1.33 | % | 1.32 | % | 1.28 | % |
Return on average equity | 7.24 | 6.45 | 8.54 | 8.28 | 7.80 | |||||
Return on average tangible assets | 1.14 | 1.05 | 1.42 | 1.40 | 1.36 | |||||
Return on average tangible common equity | 12.57 | 11.07 | 14.58 | 13.99 | 12.98 | |||||
Return on average tangible assets, adjusted 1
|
1.21 | 1.33 | 1.42 | 1.46 | 1.44 | |||||
Return on avg. tangible common equity, adjusted 1
|
13.37 | 14.03 | 14.64 | 14.58 | 13.79 | |||||
Operating efficiency ratio, as adjusted 1
|
43.1 | 43.0 | 44.3 | 44.1 | 45.4 | |||||
Analysis of Net Interest Income | ||||||||||
Accretion income on acquired loans | $ | 9,172 | $ | 8,560 | $ | 8,272 | $ | 7,812 | $ | 6,197 |
Yield on loans | 3.82 | % | 3.90 | % | 3.92 | % | 3.88 | % | 3.79 | % |
Yield on investment securities - tax equivalent 2
|
3.09 | 2.94 | 3.02 | 2.84 | 2.77 | |||||
Yield on interest earning assets - tax equivalent 2
|
3.63 | 3.69 | 3.68 | 3.61 | 3.52 | |||||
Cost of interest bearing deposits | 0.40 | 0.29 | 0.20 | 0.15 | 0.14 | |||||
Cost of total deposits | 0.31 | 0.22 | 0.15 | 0.11 | 0.11 | |||||
Cost of borrowings | 1.95 | 3.35 | 3.97 | 3.87 | 3.87 | |||||
Cost of interest bearing liabilities | 0.53 | 0.43 | 0.34 | 0.26 | 0.25 | |||||
Net interest rate spread - tax equivalent basis 2
|
3.10 | 3.26 | 3.34 | 3.35 | 3.27 | |||||
Net interest margin - GAAP basis | 3.19 | 3.33 | 3.38 | 3.38 | 3.30 | |||||
Net interest margin - tax equivalent basis 2
|
3.24 | 3.38 | 3.43 | 3.42 | 3.35 | |||||
Capital | ||||||||||
Tier 1 leverage ratio - Company 3
|
9.93 | % | 10.14 | % | 10.50 | % | 10.91 | % | 11.35 | % |
Tier 1 leverage ratio - Bank only 3
|
10.48 | 11.33 | 11.76 | 12.10 | 12.60 | |||||
Tier 1 risk-based capital ratio - Bank only 3
|
12.39 | 13.38 | 14.04 | 14.44 | 14.52 | |||||
Total risk-based capital ratio - Bank only 3
|
13.86 | 14.73 | 15.42 | 15.22 | 15.26 | |||||
Tangible common equity - Company 1
|
9.15 | 9.55 | 9.63 | 10.29 | 10.25 | |||||
Condensed Five Quarter Income Statement | ||||||||||
Interest and dividend income | $ | 244,658 | $ | 242,610 | $ | 233,847 | $ | 230,310 | $ | 225,089 |
Interest expense | 26,834 | 20,584 | 15,933 | 11,783 | 11,252 | |||||
Net interest income | 217,824 | 222,026 | 217,914 | 218,527 | 213,837 | |||||
Provision for credit losses | 30,000 | 27,500 | 10,000 | 5,250 | - | |||||
Net interest income after provision for credit losses | 187,824 | 194,526 | 207,914 | 213,277 | 213,837 | |||||
Non-interest income | 28,225 | 33,921 | 32,356 | 30,214 | 32,547 | |||||
Non-interest expense | 119,362 | 133,473 | 118,165 | 120,629 | 124,968 | |||||
Income before income tax expense | 96,687 | 94,974 | 122,105 | 122,862 | 121,416 | |||||
Income tax expense | 12,280 | 18,551 | 22,955 | 24,523 | 25,745 | |||||
Net income | $ | 84,407 | $ | 76,423 | $ | 99,150 | $ | 98,339 | $ | 95,671 |
1 See a reconciliation of non-GAAP financial measures beginning on page 19.
|
||||||||||
2 Tax equivalent basis represents interest income earned on tax exempt securities divided by the applicable federal tax rate of 21%.
|
||||||||||
3 Regulatory capital amounts and ratios are preliminary estimates pending filing of the Company's and Bank's regulatory reports.
|
As of and for the Quarter Ended | ||||||||||
Allowance for Credit Losses Roll Forward | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | |||||
Balance, beginning of period | $ | 365,489 | $ | 325,943 | $ | 326,100 | $ | 323,186 | $ | 314,873 |
Provision for credit losses - loans | 31,000 | 27,500 | 10,000 | 6,000 | - | |||||
Loan charge-offs1:
|
||||||||||
Traditional C&I | (1,089) | (17,757) | (1,027) | (1,148) | (1,044) | |||||
Asset-based lending | (1,297) | - | - | - | (7) | |||||
Payroll finance | - | (730) | - | (86) | (8) | |||||
Factored receivables | (6,893) | (2,099) | (4) | (761) | - | |||||
Equipment financing | (42,128) | (3,445) | (2,408) | (3,004) | (968) | |||||
Commercial real estate | (3,650) | (3,266) | (2,933) | (7,375) | (1,036) | |||||
Multi-family | - | (430) | (3,230) | (4,982) | (418) | |||||
ADC | - | (307) | (5,000) | - | (2,500) | |||||
Residential mortgage | (17,353) | (23) | (267) | (237) | (13) | |||||
Consumer | (97) | (62) | (391) | (231) | (110) | |||||
Total charge-offs | (72,507) | (28,119) | (15,260) | (17,824) | (6,104) | |||||
Recoveries of loans previously charged-off1:
|
||||||||||
Traditional C&I | 677 | 194 | 468 | 588 | 169 | |||||
Asset-based lending | - | - | - | 1,998 | - | |||||
Payroll finance | 262 | 38 | 2 | 4 | 3 | |||||
Factored receivables | 185 | 122 | 406 | 52 | 108 | |||||
Equipment financing | 816 | 217 | 854 | 719 | 525 | |||||
Commercial real estate | - | 174 | 487 | 97 | 265 | |||||
Multi-family | - | - | - | 15 | - | |||||
Acquisition development & construction | - | - | - | - | - | |||||
Residential mortgage | - | 1 | 37 | - | 1 | |||||
Consumer | 21 | 30 | 92 | 38 | 75 | |||||
Total recoveries | 1,961 | 776 | 2,346 | 3,511 | 1,146 | |||||
Net loan charge-offs | (70,546) | (27,343) | (12,914) | (14,313) | (4,958) | |||||
Balance, end of period | $ | 325,943 | $ | 326,100 | $ | 323,186 | $ | 314,873 | $ | 309,915 |
Asset Quality Data and Ratios | ||||||||||
Non-performing loans ("NPLs") non-accrual | $ | 180,795 | $ | 166,889 | $ | 168,555 | $ | 173,319 | $ | 202,082 |
NPLs still accruing | 56 | 170 | 2 | - | 3,371 | |||||
Total NPLs | 180,851 | 167,059 | 168,557 | 173,319 | 205,453 | |||||
Other real estate owned | 6,919 | 5,346 | 5,227 | 816 | 816 | |||||
Non-performing assets ("NPAs") | $ | 187,770 | $ | 172,405 | $ | 173,784 | $ | 174,135 | $ | 206,269 |
Loans 30 to 89 days past due
|
$ | 68,979 | $ | 72,912 | $ | 42,165 | $ | 39,476 | $ | 68,719 |
Net charge-offs as a % of average loans (annualized) | 1.27 | % | 0.50 | % | 0.25 | % | 0.28 | % | 0.10 | % |
NPLs as a % of total loans | 0.81 | 0.76 | 0.80 | 0.84 | 0.97 | |||||
NPAs as a % of total assets | 0.61 | 0.58 | 0.58 | 0.60 | 0.69 | |||||
ACL as a % of NPLs | 180.2 | 195.2 | 191.7 | 181.7 | 150.8 | |||||
ACL as a % of total loans | 1.46 | 1.49 | 1.53 | 1.52 | 1.46 | |||||
Special mention loans | $ | 204,267 | $ | 461,458 | $ | 494,452 | $ | 388,535 | $ | 351,692 |
Substandard loans | 375,427 | 528,760 | 590,109 | 611,805 | 621,901 | |||||
Doubtful loans | - | 304 | 295 | 4,600 | 4,353 | |||||
1 There were no charge-offs or recoveries on warehouse lending or public sector finance loans during the periods presented. There were no asset-based lending recoveries during the periods presented.
|
At or for the three months ended September 30, 2021 | CECL ACL | |||||||||||||
Total loans | Crit/Class | 30-89 Days Delinquent | NPLs | NCOs | ACL $ | % of Portfolio | ||||||||
Traditional C&I | $ | 3,342,356 | $ | 146,650 | $ | 1,127 | $ | 44,818 | $ | (875) | $ | 61,483 | 1.84 | % |
Asset Based Lending | 673,679 | 37,543 | - | 3,790 | (7) | 10,051 | 1.49 | |||||||
Payroll Finance | 166,999 | - | - | - | (5) | 1,691 | 1.01 | |||||||
Mortgage Warehouse | 1,301,639 | - | - | - | - | 1,150 | 0.09 | |||||||
Factored Receivables | 228,834 | - | - | - | 108 | 3,145 | 1.37 | |||||||
Equipment Finance | 1,254,846 | 55,164 | 41,046 | 21,478 | (443) | 25,474 | 2.03 | |||||||
Public Sector Finance | 1,825,976 | - | - | - | - | 5,534 | 0.30 | |||||||
Commercial Real Estate | 5,941,508 | 479,002 | 11,016 | 87,014 | (771) | 147,604 | 2.48 | |||||||
Multi-family | 4,296,829 | 171,820 | 10,072 | 327 | (418) | 29,379 | 0.68 | |||||||
ADC | 694,443 | 61,768 | - | 22,500 | (2,500) | 10,380 | 1.49 | |||||||
Total commercial loans | 19,727,109 | 951,947 | 63,261 | 179,927 | (4,911) | 295,891 | 1.50 | |||||||
Residential | 1,395,248 | 17,358 | 4,015 | 16,976 | (12) | 10,874 | 0.78 | |||||||
Consumer | 154,192 | 8,641 | 1,443 | 8,550 | (35) | 3,150 | 2.04 | |||||||
Total portfolio loans | $ | 21,276,549 | $ | 977,946 | $ | 68,719 | $ | 205,453 | $ | (4,958) | $ | 309,915 | 1.46 |
At or for the three months ended June 30, 2021 | CECL ACL | |||||||||||||
Total loans | Crit/Class | 30-89 Days Delinquent | NPLs | NCOs | ACL $ | % of Portfolio | ||||||||
Traditional C&I | $ | 2,917,848 | $ | 164,745 | $ | 6,095 | $ | 41,593 | $ | (560) | $ | 47,494 | 1.63 | % |
Asset Based Lending | 707,207 | 72,682 | - | 7,535 | 1,998 | 10,474 | 1.48 | |||||||
Payroll Finance | 158,424 | 652 | - | 652 | (82) | 1,567 | 0.99 | |||||||
Mortgage Warehouse | 1,229,588 | - | - | - | - | 1,087 | 0.09 | |||||||
Factored Receivables | 217,399 | - | - | - | (709) | 3,025 | 1.39 | |||||||
Equipment Finance | 1,381,308 | 66,790 | 890 | 23,452 | (2,285) | 27,987 | 2.03 | |||||||
Public Sector Finance | 1,723,270 | - | - | - | - | 6,168 | 0.36 | |||||||
Commercial Real Estate | 5,861,542 | 492,802 | 12,344 | 48,074 | (7,278) | 155,589 | 2.65 | |||||||
Multi-family | 4,281,615 | 153,181 | 12,853 | 327 | (4,967) | 32,054 | 0.75 | |||||||
ADC | 690,224 | 27,023 | - | 25,000 | - | 11,371 | 1.65 | |||||||
Total commercial loans | 19,168,425 | 977,875 | 32,182 | 146,633 | (13,883) | 296,816 | 1.55 | |||||||
Residential | 1,389,294 | 17,416 | 6,138 | 17,132 | (237) | 14,032 | 1.01 | |||||||
Consumer | 166,378 | 9,649 | 1,156 | 9,554 | (193) | 4,025 | 2.42 | |||||||
Total portfolio loans | $ | 20,724,097 | $ | 1,004,940 | $ | 39,476 | $ | 173,319 | $ | (14,313) | $ | 314,873 | 1.52 |
For the Quarter Ended | ||||||||||||
June 30, 2021 | September 30, 2021 | |||||||||||
Average balance |
Interest | Yield/Rate |
Average balance |
Interest | Yield/Rate | |||||||
(Dollars in thousands) | ||||||||||||
Interest earning assets: | ||||||||||||
Traditional C&I and commercial finance loans | $ | 8,269,192 | $ | 76,983 | 3.73 | % | $ | 8,260,805 | $ | 76,340 | 3.67 | % |
Commercial real estate (includes multi-family) | 10,331,355 | 103,225 | 4.01 | 10,121,953 | 100,038 | 3.92 | ||||||
ADC | 645,094 | 6,650 | 4.13 | 711,020 | 7,798 | 4.35 | ||||||
Commercial loans | 19,245,641 | 186,858 | 3.89 | 19,093,778 | 184,176 | 3.83 | ||||||
Consumer loans | 170,965 | 1,712 | 4.02 | 160,962 | 1,752 | 4.32 | ||||||
Residential mortgage loans | 1,427,055 | 13,115 | 3.68 | 1,374,398 | 11,229 | 3.27 | ||||||
Total gross loans 1
|
20,843,661 | 201,685 | 3.88 | 20,629,138 | 197,157 | 3.79 | ||||||
Securities taxable | 2,378,213 | 15,749 | 2.66 | 2,393,325 | 15,433 | 2.56 | ||||||
Securities non-taxable | 1,943,913 | 14,833 | 3.05 | 1,926,918 | 14,692 | 3.05 | ||||||
Interest earning deposits | 651,271 | 164 | 0.10 | 604,396 | 216 | 0.14 | ||||||
FHLB and Federal Reserve Bank Stock | 151,877 | 994 | 2.63 | 151,230 | 676 | 1.77 | ||||||
Total securities and other earning assets | 5,125,274 | 31,740 | 2.48 | 5,075,869 | 31,017 | 2.42 | ||||||
Total interest earning assets | 25,968,935 | 233,425 | 3.61 | 25,705,007 | 228,174 | 3.52 | ||||||
Non-interest earning assets | 3,422,042 | 3,442,325 | ||||||||||
Total assets | $ | 29,390,977 | $ | 29,147,332 | ||||||||
Interest bearing liabilities: | ||||||||||||
Demand and savings 2 deposits
|
$ | 7,742,037 | $ | 2,145 | 0.11 | % | $ | 7,407,456 | $ | 1,794 | 0.10 | % |
Money market deposits | 8,508,735 | 3,140 | 0.15 | 8,369,994 | 3,222 | 0.15 | ||||||
Certificates of deposit | 1,518,224 | 1,413 | 0.37 | 1,372,012 | 1,145 | 0.33 | ||||||
Total interest bearing deposits | 17,768,996 | 6,698 | 0.15 | 17,149,462 | 6,161 | 0.14 | ||||||
Other borrowings | 35,156 | 9 | 0.10 | 30,057 | 7 | 0.09 | ||||||
Subordinated notes - Company | 492,116 | 5,076 | 4.13 | 492,275 | 5,084 | 4.13 | ||||||
Total borrowings | 527,272 | 5,085 | 3.87 | 522,332 | 5,091 | 3.87 | ||||||
Total interest bearing liabilities | 18,296,268 | 11,783 | 0.26 | 17,671,794 | 11,252 | 0.25 | ||||||
Non-interest bearing deposits | 5,747,679 | 6,001,982 | ||||||||||
Other non-interest bearing liabilities | 676,312 | 704,844 | ||||||||||
Total liabilities | 24,720,259 | 24,378,620 | ||||||||||
Stockholders' equity | 4,670,718 | 4,768,712 | ||||||||||
Total liabilities and stockholders' equity | $ | 29,390,977 | $ | 29,147,332 | ||||||||
Net interest rate spread 3
|
3.35 | % | 3.27 | % | ||||||||
Net interest earning assets 4
|
$ | 7,672,667 | $ | 8,033,213 | ||||||||
Net interest margin - tax equivalent | 221,642 | 3.42 | % | 216,922 | 3.35 | % | ||||||
Less tax equivalent adjustment | (3,115) | (3,085) | ||||||||||
Net interest income | 218,527 | 213,837 | ||||||||||
Accretion income on acquired loans | 7,812 | 6,197 | ||||||||||
Tax equivalent net interest margin excluding accretion income on acquired loans
|
$ | 213,830 | 3.30 | % | $ | 210,725 | 3.25 | % | ||||
Ratio of interest earning assets to interest bearing liabilities
|
141.9 | % | 145.5 | % | ||||||||
For the Quarter Ended | ||||||||||||
September 30, 2020 | September 30, 2021 | |||||||||||
Average balance |
Interest | Yield/Rate |
Average balance |
Interest | Yield/Rate | |||||||
(Dollars in thousands) | ||||||||||||
Interest earning assets: | ||||||||||||
Traditional C&I and commercial finance loans | $ | 9,133,454 | $ | 83,415 | 3.63 | % | $ | 8,260,805 | $ | 76,340 | 3.67 | % |
Commercial real estate (includes multi-family) | 10,320,930 | 104,463 | 4.03 | 10,121,953 | 100,038 | 3.92 | ||||||
ADC | 636,061 | 6,117 | 3.83 | 711,020 | 7,798 | 4.35 | ||||||
Commercial loans | 20,090,445 | 193,995 | 3.84 | 19,093,778 | 184,176 | 3.83 | ||||||
Consumer loans | 206,700 | 2,025 | 3.90 | 160,962 | 1,752 | 4.32 | ||||||
Residential mortgage loans | 1,862,390 | 16,989 | 3.65 | 1,374,398 | 11,229 | 3.27 | ||||||
Total gross loans 1
|
22,159,535 | 213,009 | 3.82 | 20,629,138 | 197,157 | 3.79 | ||||||
Securities taxable | 2,363,059 | 18,623 | 3.14 | 2,393,325 | 15,433 | 2.56 | ||||||
Securities non-taxable | 2,029,805 | 15,515 | 3.06 | 1,926,918 | 14,692 | 3.05 | ||||||
Interest earning deposits | 424,249 | 154 | 0.14 | 604,396 | 216 | 0.14 | ||||||
FHLB and Federal Reserve Bank stock | 186,689 | 615 | 1.31 | 151,230 | 676 | 1.77 | ||||||
Total securities and other earning assets | 5,003,802 | 34,907 | 2.78 | 5,075,869 | 31,017 | 2.42 | ||||||
Total interest earning assets | 27,163,337 | 247,916 | 3.63 | 25,705,007 | 228,174 | 3.52 | ||||||
Non-interest earning assets | 3,489,519 | 3,442,325 | ||||||||||
Total assets | $ | 30,652,856 | $ | 29,147,332 | ||||||||
Interest bearing liabilities: | ||||||||||||
Demand and savings 2 deposits
|
$ | 7,415,818 | $ | 4,116 | 0.22 | % | $ | 7,407,456 | $ | 1,794 | 0.10 | % |
Money market deposits | 8,304,834 | 8,078 | 0.39 | 8,369,994 | 3,222 | 0.15 | ||||||
Certificates of deposit | 2,559,325 | 6,057 | 0.94 | 1,372,012 | 1,145 | 0.33 | ||||||
Total interest bearing deposits | 18,279,977 | 18,251 | 0.40 | 17,149,462 | 6,161 | 0.14 | ||||||
Other borrowings | 1,303,849 | 3,378 | 1.03 | 30,057 | 7 | 0.09 | ||||||
Subordinated notes - Bank | 173,328 | 2,360 | 5.45 | - | - | - | ||||||
Subordinated notes - Company | 270,764 | 2,845 | 4.20 | 492,275 | 5,084 | 4.13 | ||||||
Total borrowings | 1,747,941 | 8,583 | 1.95 | 522,332 | 5,091 | 3.87 | ||||||
Total interest bearing liabilities | 20,027,918 | 26,834 | 0.53 | 17,671,794 | 11,252 | 0.25 | ||||||
Non-interest bearing deposits | 5,385,939 | 6,001,982 | ||||||||||
Other non-interest bearing liabilities | 708,665 | 704,844 | ||||||||||
Total liabilities | 26,122,522 | 24,378,620 | ||||||||||
Stockholders' equity | 4,530,334 | 4,768,712 | ||||||||||
Total liabilities and stockholders' equity | $ | 30,652,856 | $ | 29,147,332 | ||||||||
Net interest rate spread 3
|
3.10 | % | 3.27 | % | ||||||||
Net interest earning assets 4
|
$ | 7,135,419 | $ | 8,033,213 | ||||||||
Net interest margin - tax equivalent | 221,082 | 3.24 | % | 216,922 | 3.35 | % | ||||||
Less tax equivalent adjustment | (3,258) | (3,085) | ||||||||||
Net interest income | 217,824 | 213,837 | ||||||||||
Accretion income on acquired loans | 9,172 | 6,197 | ||||||||||
Tax equivalent net interest margin excluding accretion income on acquired loans
|
$ | 211,910 | 3.10 | % | $ | 210,725 | 3.25 | % | ||||
Ratio of interest earning assets to interest bearing liabilities
|
135.6 | % | 145.5 | % | ||||||||
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 24.
|
||||||||||
As of and for the Quarter Ended | ||||||||||
September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | ||||||
The following table shows the reconciliation of pretax pre-provision net revenue to adjusted pretax pre-provision net revenue1:
|
||||||||||
Net interest income | $ | 217,824 | $ | 222,026 | $ | 217,914 | $ | 218,527 | $ | 213,837 |
Non-interest income | 28,225 | 33,921 | 32,356 | 30,214 | 32,547 | |||||
Total net revenue | 246,049 | 255,947 | 250,270 | 248,741 | 246,384 | |||||
Non-interest expense | 119,362 | 133,473 | 118,165 | 120,629 | 124,968 | |||||
PPNR | 126,687 | 122,474 | 132,105 | 128,112 | 121,416 | |||||
Adjustments: | ||||||||||
Accretion income | (9,172) | (8,560) | (8,272) | (7,812) | (6,197) | |||||
Net (gain) loss on sale of securities | (642) | 111 | (719) | - | (1,656) | |||||
Litigation accrual | - | - | - | - | 2,000 | |||||
Loss on sale of mortgage servicing rights | - | - | - | - | 324 | |||||
Loss on extinguishment of debt | 6,241 | 2,749 | - | 1,243 | - | |||||
Impairment related to financial centers and real estate consolidation strategy | - | 13,311 | 633 | 475 | 118 | |||||
Merger related expense | - | - | - | 2,481 | 4,581 | |||||
Amortization of non-compete agreements and acquired customer list intangible assets | 172 | 172 | 148 | 148 | 148 | |||||
Adjusted PPNR | $ | 123,286 | $ | 130,257 | $ | 123,895 | $ | 124,647 | $ | 120,734 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 24.
|
||||||||||
As of and for the Quarter Ended | ||||||||||
September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | ||||||
The following table shows the reconciliation of stockholders' equity to tangible common equity and the tangible common equity ratio2:
|
||||||||||
Total assets | $ | 30,617,722 | $ | 29,820,138 | $ | 29,914,282 | $ | 29,143,918 | $ | 30,028,425 |
Goodwill and other intangibles | (1,781,246) | (1,777,046) | (1,773,270) | (1,769,494) | (1,765,718) | |||||
Tangible assets | 28,836,476 | 28,043,092 | 28,141,012 | 27,374,424 | 28,262,707 | |||||
Stockholders' equity | 4,557,785 | 4,590,514 | 4,620,164 | 4,722,856 | 4,797,629 | |||||
Preferred stock | (136,917) | (136,689) | (136,458) | (136,224) | (135,986) | |||||
Goodwill and other intangibles | (1,781,246) | (1,777,046) | (1,773,270) | (1,769,494) | (1,765,718) | |||||
Tangible common stockholders' equity | 2,639,622 | 2,676,779 | 2,710,436 | 2,817,138 | 2,895,925 | |||||
Common stock outstanding at period end | 194,458,841 | 192,923,371 | 192,567,901 | 192,715,433 | 192,681,503 | |||||
Common stockholders' equity as a % of total assets
|
14.44 | % | 14.94 | % | 14.99 | % | 15.74 | % | 15.52 | % |
Book value per common share | $ | 22.73 | $ | 23.09 | $ | 23.28 | $ | 23.80 | $ | 24.19 |
Tangible common equity as a % of tangible assets
|
9.15 | % | 9.55 | % | 9.63 | % | 10.29 | % | 10.25 | % |
Tangible book value per common share | $ | 13.57 | $ | 13.87 | $ | 14.08 | $ | 14.62 | $ | 15.03 |
The following table shows the reconciliation of reported return on average tangible common equity and adjusted return on average tangible common equity3:
|
||||||||||
Average stockholders' equity | $ | 4,530,334 | $ | 4,591,770 | $ | 4,616,660 | $ | 4,670,718 | $ | 4,768,712 |
Average preferred stock
|
(137,139) | (136,914) | (136,687) | (136,455) | (136,221) | |||||
Average goodwill and other intangibles
|
(1,784,016) | (1,779,801) | (1,775,746) | (1,771,971) | (1,768,209) | |||||
Average tangible common stockholders' equity
|
2,609,179 | 2,675,055 | 2,704,227 | 2,762,292 | 2,864,282 | |||||
Net income available to common | 82,438 | 74,457 | 97,187 | 96,380 | 93,715 | |||||
Net income, if annualized | 327,960 | 296,209 | 394,147 | 386,579 | 371,804 | |||||
Reported return on avg tangible common equity
|
12.57 | % | 11.07 | % | 14.58 | % | 13.99 | % | 12.98 | % |
Adjusted net income (see reconciliation on page 21)
|
$ | 87,682 | $ | 94,323 | $ | 97,603 | $ | 100,444 | $ | 99,589 |
Annualized adjusted net income | 348,822 | 375,242 | 395,834 | 402,880 | 395,109 | |||||
Adjusted return on average tangible common equity
|
13.37 | % | 14.03 | % | 14.64 | % | 14.58 | % | 13.79 | % |
The following table shows the reconciliation of reported return on average tangible assets and adjusted return on average tangible assets4:
|
||||||||||
Average assets | $ | 30,652,856 | $ | 30,024,165 | $ | 29,582,605 | $ | 29,390,977 | $ | 29,147,332 |
Average goodwill and other intangibles | (1,784,016) | (1,779,801) | (1,775,746) | (1,771,971) | (1,768,209) | |||||
Average tangible assets | 28,868,840 | 28,244,364 | 27,806,859 | 27,619,006 | 27,379,123 | |||||
Net income available to common | 82,438 | 74,457 | 97,187 | 96,380 | 93,715 | |||||
Net income, if annualized | 327,960 | 296,209 | 394,147 | 386,579 | 371,804 | |||||
Reported return on average tangible assets | 1.14 | % | 1.05 | % | 1.42 | % | 1.40 | % | 1.36 | % |
Adjusted net income (see reconciliation on page 21)
|
$ | 87,682 | $ | 94,323 | $ | 97,603 | $ | 100,444 | $ | 99,589 |
Annualized adjusted net income | 348,822 | 375,242 | 395,834 | 402,880 | 395,109 | |||||
Adjusted return on average tangible assets | 1.21 | % | 1.33 | % | 1.42 | % | 1.46 | % | 1.44 | % |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 24.
|
||||||||||
As of and for the Quarter Ended | ||||||||||
September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | ||||||
The following table shows the reconciliation of the reported operating efficiency ratio and adjusted operating efficiency ratio5:
|
||||||||||
Net interest income | $ | 217,824 | $ | 222,026 | $ | 217,914 | $ | 218,527 | $ | 213,837 |
Non-interest income | 28,225 | 33,921 | 32,356 | 30,214 | 32,547 | |||||
Total revenue | 246,049 | 255,947 | 250,270 | 248,741 | 246,384 | |||||
Tax equivalent adjustment on securities
|
3,258 | 3,146 | 3,120 | 3,115 | 3,085 | |||||
Net (gain) loss on sale of securities | (642) | 111 | (719) | - | (1,656) | |||||
Depreciation of operating leases | (3,130) | (3,130) | (3,124) | (2,917) | (2,846) | |||||
Adjusted total revenue | 245,535 | 256,074 | 249,547 | 248,939 | 244,967 | |||||
Non-interest expense | 119,362 | 133,473 | 118,165 | 120,629 | 124,968 | |||||
Merger related expense | - | - | - | (2,481) | (4,581) | |||||
Loss on sale of mortgage servicing rights | - | - | - | - | (324) | |||||
Accrual for legal settlements | - | - | - | - | (2,000) | |||||
Impairment related to financial centers and real estate consolidation strategy
|
- | (13,311) | (633) | (475) | (118) | |||||
Loss on extinguishment of borrowings | (6,241) | (2,749) | - | (1,243) | - | |||||
Depreciation of operating leases | (3,130) | (3,130) | (3,124) | (2,917) | (2,846) | |||||
Amortization of intangible assets | (4,200) | (4,200) | (3,776) | (3,776) | (3,776) | |||||
Adjusted non-interest expense | 105,791 | 110,083 | 110,632 | 109,737 | 111,323 | |||||
Reported operating efficiency ratio | 48.5 | % | 52.1 | % | 47.2 | % | 48.5 | % | 50.7 | % |
Adjusted operating efficiency ratio | 43.1 | 43.0 | 44.3 | 44.1 | 45.4 | |||||
The following table shows the reconciliation of reported net income (GAAP) and earnings per share to adjusted net income available to common stockholders (non-GAAP) and adjusted diluted earnings per share (non-GAAP)6:
|
||||||||||
Income before income tax expense | $ | 96,687 | $ | 94,974 | $ | 122,105 | $ | 122,862 | $ | 121,416 |
Income tax expense | 12,280 | 18,551 | 22,955 | 24,523 | 25,745 | |||||
Net income (GAAP) | 84,407 | 76,423 | 99,150 | 98,339 | 95,671 | |||||
Adjustments: | ||||||||||
Net (gain) loss on sale of securities | (642) | 111 | (719) | - | (1,656) | |||||
Loss on extinguishment of debt | 6,241 | 2,749 | - | 1,243 | - | |||||
Accrual for legal settlements | - | - | - | - | 2,000 | |||||
Loss on sale of mortgage servicing rights | - | - | - | - | 324 | |||||
Impairment related to financial centers and real estate consolidation strategy. | - | 13,311 | 633 | 475 | 118 | |||||
Merger related expenses | - | - | - | 2,481 | 4,581 | |||||
Amortization of non-compete agreements and acquired customer list intangible assets
|
172 | 172 | 148 | 148 | 148 | |||||
Total pre-tax adjustments | 5,771 | 16,343 | 62 | 4,347 | 5,515 | |||||
Adjusted pre-tax income | 102,458 | 111,317 | 122,167 | 127,209 | 126,931 | |||||
Adjusted income tax expense | 12,807 | 15,028 | 22,601 | 24,806 | 25,386 | |||||
Adjusted net income (non-GAAP) | 89,651 | 96,289 | 99,566 | 102,403 | 101,545 | |||||
Preferred stock dividend
|
1,969 | 1,966 | 1,963 | 1,959 | 1,956 | |||||
Adjusted net income available to common stockholders (non-GAAP) | $ | 87,682 | $ | 94,323 | $ | 97,603 | $ | 100,444 | $ | 99,589 |
Weighted average diluted shares
|
193,715,943 | 193,530,930 | 192,621,907 | 192,292,989 | 192,340,487 | |||||
Reported diluted EPS (GAAP) | $ | 0.43 | $ | 0.38 | $ | 0.50 | $ | 0.50 | $ | 0.49 |
Adjusted diluted EPS (non-GAAP)
|
0.45 | 0.49 | 0.51 | 0.52 | 0.52 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 24.
|
||||
For the Nine Months Ended September 30, | ||||
2020 | 2021 | |||
The following table shows the reconciliation of reported net income (GAAP) and earnings per share to adjusted net income available to common stockholders (non-GAAP) and adjusted diluted earnings per share (non-GAAP)6:
|
||||
Income before income tax expense | $ | 160,694 | $ | 366,383 |
Income tax expense | 11,348 | 73,223 | ||
Net income (GAAP) | 149,346 | 293,160 | ||
Adjustments: | ||||
Net (gain) on sale of securities | (9,539) | (2,361) | ||
Loss on extinguishment of borrowings | 16,713 | 1,243 | ||
Accrual for legal settlements | - | 2,000 | ||
Loss on sale of mortgage servicing rights | - | 324 | ||
Impairment related to financial centers and real estate consolidation strategy | - | 1,226 | ||
Merger-related expense | - | 7,062 | ||
Amortization of non-compete agreements and acquired customer list intangible assets | 515 | 443 | ||
Total pre-tax adjustments | 7,689 | 9,937 | ||
Adjusted pre-tax income | 168,383 | 376,320 | ||
Adjusted income tax expense | 21,048 | 75,264 | ||
Adjusted net income (non-GAAP) | $ | 147,335 | $ | 301,056 |
Preferred stock dividend | 5,917 | 5,878 | ||
Adjusted net income available to common stockholders (non-GAAP) | $ | 141,418 | $ | 295,178 |
Weighted average diluted shares | 194,677,020 | 192,417,008 | ||
Diluted EPS as reported (GAAP) | $ | 0.74 | $ | 1.49 |
Adjusted diluted EPS (non-GAAP) | 0.73 | 1.53 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 24.
|
||||
For the Nine Months Ended September 30, | ||||
2020 | 2021 | |||
The following table shows the reconciliation of reported return on average tangible common equity and adjusted return on average tangible common equity3:
|
||||
Average stockholders' equity | $ | 4,500,534 | $ | 4,685,920 |
Average preferred stock | (137,359) | (136,453) | ||
Average goodwill and other intangibles | (1,788,190) | (1,771,948) | ||
Average tangible common stockholders' equity | 2,574,985 | 2,777,519 | ||
Net income available to common stockholders | $ | 143,429 | $ | 287,282 |
Net income available to common stockholders, if annualized | 191,588 | 384,095 | ||
Reported return on average tangible common equity | 7.44 | % | 13.83 | % |
Adjusted net income available to common stockholders (see reconciliation on page 22)
|
$ | 141,418 | $ | 295,178 |
Adjusted net income available to common stockholders, if annualized | 188,902 | 394,652 | ||
Adjusted return on average tangible common equity | 7.34 | % | 14.21 | % |
The following table shows the reconciliation of reported return on avg tangible assets and adjusted return on avg tangible assets4:
|
||||
Average assets | $ | 30,623,508 | $ | 29,372,043 |
Average goodwill and other intangibles | (1,788,190) | (1,771,948) | ||
Average tangible assets | 28,835,318 | 27,600,095 | ||
Net income available to common stockholders | 143,429 | 287,282 | ||
Net income available to common stockholders, if annualized | 191,588 | 384,095 | ||
Reported return on average tangible assets | 0.66 | % | 1.39 | % |
Adjusted net income available to common stockholders (see reconciliation on page 22)
|
$ | 141,418 | $ | 295,178 |
Adjusted net income available to common stockholders, if annualized | 188,902 | 394,652 | ||
Adjusted return on average tangible assets | 0.66 | % | 1.43 | % |
The following table shows the reconciliation of the reported operating efficiency ratio and adjusted operating efficiency ratio5:
|
||||
Net interest income | $ | 642,895 | $ | 650,278 |
Non-interest income | 101,641 | 95,117 | ||
Total revenues | 744,536 | 745,395 | ||
Tax equivalent adjustment on securities | 10,124 | 9,321 | ||
Net (gain) on sale of securities | (9,539) | (2,361) | ||
Depreciation of operating leases | (9,758) | (8,888) | ||
Adjusted total net revenue | 735,363 | 743,467 | ||
Non-interest expense | 358,956 | 363,762 | ||
Merger-related expense | - | (7,062) | ||
Accrual for legal settlements | - | (2,000) | ||
Loss on sale of mortgage servicing rights | - | (324) | ||
Impairment related to financial centers and real estate consolidation strategy | - | (1,226) | ||
Loss on extinguishment of borrowings | (16,713) | (1,243) | ||
Depreciation of operating leases | (9,758) | (8,888) | ||
Amortization of intangible assets | (12,600) | (11,328) | ||
Adjusted non-interest expense | $ | 319,885 | $ | 331,691 |
Reported operating efficiency ratio | 48.2 | % | 48.8 | % |
Adjusted operating efficiency ratio | 43.5 | % | 44.6 | % |