01/26/2022 | Press release | Distributed by Public on 01/26/2022 05:50
FOURTH QUARTER RESULTS
|
|||||||||||||
Q4 2021
|
Q4 2020
|
Q4 2021
|
Q4 2020
|
Q4 2021
|
Q4 2020
|
Q4 2021
|
Q4 2020
|
Q4 2021
|
Q4 2020
|
||||
Net income (in millions) |
Net income per share |
Net interest margin |
Return on average assets |
Return on average equity |
|||||||||
$123.3
|
$138.1
|
$12.09
|
$13.59
|
2.58%
|
3.02%
|
0.84%
|
1.11%
|
10.96%
|
14.02%
|
||||
YEAR-TO-DATE ("YTD") RESULTS
|
|||||||||||||
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
||||
Net income (in millions)
|
Net income per share |
Net interest margin |
Return on average assets |
Return on average equity |
|||||||||
$547.5
|
$491.7
|
$53.88
|
$47.50
|
2.66%
|
3.17%
|
1.00%
|
1.07%
|
12.84%
|
12.96%
|
FOURTH QUARTER HIGHLIGHTS
|
Net income
|
Net income was $123.3 million for the fourth quarter of 2021, a decrease of $14.8 million or 10.7%, compared to the same quarter in 2020. Net income per common share was $12.09 for the fourth quarter of 2021, compared to $13.59 per share for the same quarter in 2020.
|
|
|
||
Return on
average assets
and equity
|
Return on average assets for the fourth quarter of 2021 was 0.84%, down from 1.11% for the comparable quarter in 2020. Return on average equity for the fourth quarter of 2021 was 10.96%, down from 14.02% for the comparable quarter in 2020.
|
|
|
||
Net interest
income and
net interest
margin |
Net interest income was $357.4 million for the fourth quarter of 2021, a decrease of $1.3 million or 0.4%, compared to the same quarter in 2020 but was up $10.5 million or 3.0% compared to the third quarter of 2021. The taxable-equivalent net interest margin ("NIM") was 2.58% for the fourth quarter of 2021, down 44 basis points from 3.02% for the comparable quarter in 2020 and down 3 basis points from 2.61% in the third quarter of 2021.
|
|
|
||
Provision for
credit losses
|
The provision for credit losses was a net benefit of $5.1 million during the fourth quarter of 2021, compared to a $5.4 million expense during the same quarter in 2020. The allowance for credit losses ("ACL") was $178.5 million at December 31, 2021, compared to $224.3 million at December 31, 2020, representing 0.55% and 0.68% of loans, respectively.
|
|
Operating
performance
|
Noninterest income was $114.3 million for the fourth quarter of 2021, a decrease of $12.5 million or 9.9%, compared to the same quarter in 2020. Noninterest expense was $323.2 million for the fourth quarter of 2021, an increase of $17.8 million or 5.8%, compared to the same quarter in 2020.
|
|
Loans and
credit quality
|
Total loans were $32.4 billion, a decrease of $420.5 million or 1.3%, since December 31, 2020. Excluding loans originated under the Small Business Administration Paycheck Protection Program ("SBA-PPP"), total loans increased $1.5 billion, or by 4.9%, since December 31, 2020. Total loans decreased $144.7 million, or by 1.8% on an annualized basis, compared to September 30, 2021. Excluding SBA-PPP loans, total loans increased $448.4 million, or by 5.7% annualized in the fourth quarter of 2021. The net charge-off ratio was -0.01% for the fourth quarter of 2021 compared to 0.06% for the same quarter in 2020.
|
|
Deposits
|
Total deposits grew to $51.4 billion, an increase of $8.0 billion or 18.4%, since December 31, 2020, driven by organic growth. Deposits increased $1.3 billion, or by 10.6% on an annualized basis, compared to September 30, 2021.
|
|
Capital
|
BancShares remained well-capitalized with a total risk-based capital ratio of 14.35%, a Tier 1 risk-based capital ratio of 12.47%, a Common Equity Tier 1 ratio of 11.50% and a Tier 1 leverage ratio of 7.59%.
|
(Dollars in thousands, unaudited)
|
December 31, 2021
|
December 31, 2020
|
||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
337,814
|
$
|
362,048
|
||||
Overnight investments
|
9,114,660
|
4,347,336
|
||||||
Investment in marketable equity securities (cost of $72,894 at December 31, 2021 and $84,837 at December 31, 2020)
|
97,528
|
91,680
|
||||||
Investment securities available for sale (cost of $9,215,219 at December 31, 2021 and $6,911,965 at December 31, 2020)
|
9,203,427
|
7,014,243
|
||||||
Investment securities held to maturity (fair value of $3,759,650 at December 31, 2021 and $2,838,499 at December 31, 2020)
|
3,809,453
|
2,816,982
|
||||||
Loans held for sale
|
98,741
|
124,837
|
||||||
Loans and leases
|
32,371,522
|
32,791,975
|
||||||
Allowance for credit losses
|
(178,493
|
)
|
(224,314
|
)
|
||||
Net loans and leases
|
32,193,029
|
32,567,661
|
||||||
Premises and equipment
|
1,233,418
|
1,251,283
|
||||||
Other real estate owned
|
39,328
|
50,890
|
||||||
Income earned not collected
|
134,237
|
145,694
|
||||||
Goodwill
|
346,064
|
350,298
|
||||||
Other intangible assets
|
43,085
|
50,775
|
||||||
Other assets
|
1,657,356
|
783,953
|
||||||
Total assets
|
$
|
58,308,140
|
$
|
49,957,680
|
||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
21,404,808
|
$
|
18,014,029
|
||||
Interest-bearing
|
30,001,286
|
25,417,580
|
||||||
Total deposits
|
51,406,094
|
43,431,609
|
||||||
Securities sold under customer repurchase agreements
|
589,101
|
641,487
|
||||||
Federal Home Loan Bank borrowings
|
644,659
|
655,175
|
||||||
Subordinated debt
|
477,564
|
504,518
|
||||||
Other borrowings
|
72,155
|
88,470
|
||||||
FDIC shared-loss payable
|
-
|
15,601
|
||||||
Other liabilities
|
381,326
|
391,552
|
||||||
Total liabilities
|
53,570,899
|
45,728,412
|
||||||
Shareholders' equity
|
||||||||
Common stock:
|
||||||||
Class A - $1 par value (16,000,000 shares authorized; 8,811,220 shares issued and outstanding at December 31, 2021 and December 31, 2020)
|
8,811
|
8,811
|
||||||
Class B - $1 par value (2,000,000 shares authorized; 1,005,185 shares issued and outstanding at December 31, 2021 and December 31, 2020)
|
1,005
|
1,005
|
||||||
Preferred stock - $0.01 par value (10,000,000 shares authorized; 345,000 shares issued and outstanding at December 31, 2021 and December 31, 2020; $1,000 per share liquidity preference)
|
339,937
|
339,937
|
||||||
Retained earnings
|
4,377,712
|
3,867,252
|
||||||
Accumulated other comprehensive income
|
9,776
|
12,263
|
||||||
Total shareholders' equity
|
4,737,241
|
4,229,268
|
||||||
Total liabilities and shareholders' equity
|
$
|
58,308,140
|
$
|
49,957,680
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||
(Dollars in thousands, except per share data, unaudited)
|
December 31,
2021
|
September 30,
2021
|
December 31,
2020
|
December 31,
2021
|
December 31,
2020
|
|||||||||||||||
Interest income
|
||||||||||||||||||||
Loans and leases
|
$
|
328,288
|
$
|
319,214
|
$
|
344,691
|
$
|
1,294,813
|
$
|
1,332,720
|
||||||||||
Investment securities interest and dividend income
|
39,670
|
39,246
|
31,166
|
145,200
|
144,459
|
|||||||||||||||
Overnight investments
|
4,049
|
3,395
|
1,019
|
10,997
|
6,847
|
|||||||||||||||
Total interest income
|
372,007
|
361,855
|
376,876
|
1,451,010
|
1,484,026
|
|||||||||||||||
Interest expense
|
||||||||||||||||||||
Deposits
|
7,832
|
8,073
|
11,057
|
33,240
|
66,635
|
|||||||||||||||
Securities sold under customer repurchase agreements
|
260
|
358
|
374
|
1,312
|
1,610
|
|||||||||||||||
Federal Home Loan Bank borrowings
|
2,110
|
2,114
|
2,151
|
8,410
|
9,763
|
|||||||||||||||
Subordinated debt
|
4,166
|
4,174
|
4,291
|
16,709
|
16,074
|
|||||||||||||||
Other borrowings
|
237
|
249
|
287
|
1,005
|
1,775
|
|||||||||||||||
Total interest expense
|
14,605
|
14,968
|
18,160
|
60,676
|
95,857
|
|||||||||||||||
Net interest income
|
357,402
|
346,887
|
358,716
|
1,390,334
|
1,388,169
|
|||||||||||||||
Provision (credit) for credit losses
|
(5,138
|
)
|
(1,120
|
)
|
5,403
|
(36,835
|
)
|
58,352
|
||||||||||||
Net interest income after provision for credit losses
|
362,540
|
348,007
|
353,313
|
1,427,169
|
1,329,817
|
|||||||||||||||
Noninterest income
|
||||||||||||||||||||
Wealth management services
|
32,902
|
31,935
|
27,624
|
128,788
|
102,776
|
|||||||||||||||
Service charges on deposit accounts
|
26,479
|
24,858
|
22,886
|
94,756
|
87,662
|
|||||||||||||||
Cardholder services, net
|
21,374
|
22,879
|
18,788
|
86,684
|
74,291
|
|||||||||||||||
Other service charges and fees
|
9,270
|
9,205
|
8,082
|
35,923
|
30,911
|
|||||||||||||||
Merchant services, net
|
7,282
|
8,409
|
6,108
|
33,140
|
24,122
|
|||||||||||||||
Mortgage income
|
5,482
|
6,106
|
11,451
|
30,508
|
39,592
|
|||||||||||||||
Insurance commissions
|
3,854
|
4,000
|
4,091
|
15,556
|
14,544
|
|||||||||||||||
ATM income
|
1,468
|
1,481
|
1,404
|
6,002
|
5,758
|
|||||||||||||||
Marketable equity securities gains, net
|
3,066
|
8,082
|
18,934
|
34,081
|
29,395
|
|||||||||||||||
Realized gains on investment securities available for sale, net
|
-
|
3,350
|
5,281
|
33,119
|
60,253
|
|||||||||||||||
Other
|
3,082
|
2,639
|
2,116
|
9,445
|
7,446
|
|||||||||||||||
Total noninterest income
|
114,259
|
122,944
|
126,765
|
508,002
|
476,750
|
|||||||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and wages
|
160,774
|
160,947
|
150,835
|
623,194
|
590,020
|
|||||||||||||||
Employee benefits
|
32,490
|
32,146
|
31,581
|
135,659
|
132,244
|
|||||||||||||||
Occupancy expense
|
29,897
|
29,101
|
32,143
|
117,180
|
117,169
|
|||||||||||||||
Equipment expense
|
30,237
|
30,229
|
29,481
|
119,171
|
115,535
|
|||||||||||||||
Processing fees paid to third parties
|
16,041
|
15,602
|
12,306
|
59,743
|
44,791
|
|||||||||||||||
FDIC insurance expense
|
3,871
|
3,661
|
3,337
|
14,132
|
12,701
|
|||||||||||||||
Collection and foreclosure-related expenses
|
2,235
|
836
|
3,487
|
5,442
|
13,658
|
|||||||||||||||
Merger-related expenses
|
9,862
|
7,013
|
5,342
|
29,463
|
17,450
|
|||||||||||||||
Other
|
37,781
|
33,283
|
36,861
|
129,526
|
145,117
|
|||||||||||||||
Total noninterest expense
|
323,188
|
312,818
|
305,373
|
1,233,510
|
1,188,685
|
|||||||||||||||
Income before income taxes
|
153,611
|
158,133
|
174,705
|
701,661
|
617,882
|
|||||||||||||||
Income taxes
|
30,329
|
34,060
|
36,621
|
154,202
|
126,159
|
|||||||||||||||
Net income
|
$
|
123,282
|
$
|
124,073
|
$
|
138,084
|
$
|
547,459
|
$
|
491,723
|
||||||||||
Preferred stock dividends
|
4,636
|
4,636
|
4,636
|
18,544
|
14,062
|
|||||||||||||||
Net income available to common shareholders
|
$
|
118,646
|
$
|
119,437
|
$
|
133,448
|
$
|
528,915
|
$
|
477,661
|
||||||||||
Weighted average common shares outstanding
|
9,816,405
|
9,816,405
|
9,816,405
|
9,816,405
|
10,056,654
|
|||||||||||||||
Earnings per common share
|
$
|
12.09
|
$
|
12.17
|
$
|
13.59
|
$
|
53.88
|
$
|
47.50
|
||||||||||
Dividends declared per common share
|
0.47
|
0.47
|
0.47
|
1.88
|
1.67
|
Three months ended
|
||||||||||||
December 31, 2021
|
September 30, 2021
|
December 31, 2020
|
||||||||||
SELECTED RATIOS (1)
|
||||||||||||
Book value per share at period-end
|
$
|
447.95
|
$
|
432.07
|
$
|
396.21
|
||||||
Annualized return on average assets
|
0.84
|
%
|
0.88
|
%
|
1.11
|
%
|
||||||
Annualized return on average equity
|
10.96
|
11.29
|
14.02
|
|||||||||
Total risk-based capital ratio
|
14.35
|
14.30
|
13.81
|
|||||||||
Tier 1 risk-based capital ratio
|
12.47
|
12.32
|
11.63
|
|||||||||
Common equity Tier 1 ratio
|
11.50
|
11.34
|
10.61
|
|||||||||
Tier 1 leverage capital ratio
|
7.59
|
7.68
|
7.86
|
Three months ended
|
||||||||||||
(Dollars in thousands, unaudited)
|
December 31, 2021
|
|
September 30, 2021
|
December 31, 2020
|
||||||||
ALLOWANCE FOR CREDIT LOSSES (1)
|
|
|||||||||||
ACL at beginning of period
|
$
|
183,194
|
|
$
|
189,094
|
$
|
223,936
|
|||||
Provision for credit losses
|
(5,138
|
)
|
(1,120
|
)
|
5,403
|
|||||||
Net charge-offs of loans and leases:
|
||||||||||||
Charge-offs
|
(8,258
|
)
|
(11,074
|
)
|
(9,848
|
)
|
||||||
Recoveries
|
8,695
|
|
6,293
|
4,823
|
||||||||
Net charge-offs of loans and leases
|
437
|
|
(4,781
|
)
|
(5,025
|
)
|
||||||
ACL at end of period
|
$
|
178,493
|
|
$
|
183,193
|
$
|
224,314
|
|||||
ACL at end of period allocated to:
|
|
|||||||||||
PCD
|
$
|
14,802
|
|
$
|
18,438
|
$
|
23,987
|
|||||
Non-PCD
|
163,691
|
|
164,756
|
200,327
|
||||||||
ACL at end of period
|
$
|
178,493
|
|
$
|
183,194
|
$
|
224,314
|
|||||
Reserve for unfunded commitments
|
$
|
11,815
|
|
$
|
11,472
|
$
|
12,814
|
|||||
SELECTED LOAN DATA
|
|
|||||||||||
Average loans and leases:
|
|
|||||||||||
PCD
|
$
|
356,997
|
|
$
|
384,673
|
$
|
479,302
|
|||||
Non-PCD
|
32,030,717
|
|
32,222,960
|
32,374,204
|
||||||||
Loans and leases at period-end:
|
|
|||||||||||
PCD
|
337,624
|
|
373,255
|
462,882
|
||||||||
Non-PCD
|
32,033,898
|
|
32,142,934
|
32,329,093
|
||||||||
RISK ELEMENTS
|
|
|||||||||||
Nonaccrual loans and leases
|
$
|
120,306
|
|
$
|
163,775
|
$
|
191,483
|
|||||
Other real estate owned
|
39,328
|
|
40,649
|
50,890
|
||||||||
Total nonperforming assets
|
$
|
159,634
|
$
|
204,424
|
$
|
242,373
|
||||||
Accruing loans and leases 90 days or more past due
|
$
|
6,925
|
$
|
5,614
|
$
|
5,862
|
||||||
RATIOS
|
||||||||||||
Net charge-offs (annualized) to average loans and leases
|
(0.01
|
)%
|
0.06
|
%
|
0.06
|
%
|
||||||
ACL to total loans and leases(2):
|
|
|||||||||||
PCD
|
4.38
|
|
4.94
|
5.18
|
||||||||
Non-PCD
|
0.51
|
0.51
|
0.62
|
|||||||||
Total
|
0.55
|
0.56
|
0.68
|
|||||||||
Ratio of total nonperforming assets to total loans, leases and other real estate owned
|
0.49
|
0.63
|
0.74
|
Three months ended
|
||||||||||||||||||||||||||||||||||||
December 31, 2021
|
September 30, 2021
|
December 31, 2020
|
||||||||||||||||||||||||||||||||||
(Dollars in thousands, unaudited)
|
Average
Balance
|
Interest
|
Yield/
Rate (2)
|
Average
Balance
|
Interest
|
Yield/
Rate (2)
|
Average
Balance
|
Interest
|
Yield/
Rate (2)
|
|||||||||||||||||||||||||||
INTEREST-EARNING ASSETS
|
||||||||||||||||||||||||||||||||||||
Loans and leases (1)
|
$
|
32,488,033
|
$
|
328,781
|
3.98
|
%
|
$
|
32,707,591
|
$
|
319,738
|
3.85
|
%
|
$
|
32,964,390
|
$
|
345,300
|
4.12
|
%
|
||||||||||||||||||
Investment securities:
|
||||||||||||||||||||||||||||||||||||
U.S. Treasury
|
560,737
|
1,401
|
0.99
|
-
|
-
|
-
|
526,072
|
250
|
0.19
|
|||||||||||||||||||||||||||
Government agency
|
832,821
|
1,381
|
0.66
|
824,499
|
2,076
|
1.01
|
695,757
|
1,574
|
0.90
|
|||||||||||||||||||||||||||
Mortgage-backed securities
|
9,300,971
|
28,597
|
1.23
|
9,164,180
|
29,056
|
1.27
|
7,981,834
|
21,130
|
1.06
|
|||||||||||||||||||||||||||
Corporate bonds
|
620,341
|
7,782
|
5.02
|
597,386
|
7,610
|
5.10
|
591,780
|
7,657
|
5.18
|
|||||||||||||||||||||||||||
Other investments
|
109,233
|
563
|
2.04
|
121,454
|
544
|
1.78
|
93,681
|
600
|
2.55
|
|||||||||||||||||||||||||||
Total investment securities
|
11,424,103
|
39,724
|
1.39
|
10,707,519
|
39,286
|
1.47
|
9,889,124
|
31,211
|
1.26
|
|||||||||||||||||||||||||||
Overnight investments
|
10,689,674
|
4,050
|
0.15
|
8,956,055
|
3,395
|
0.15
|
4,069,309
|
1,019
|
0.10
|
|||||||||||||||||||||||||||
Total interest-earning assets
|
$
|
54,601,810
|
$
|
372,555
|
2.69
|
$
|
52,371,165
|
$
|
362,419
|
2.73
|
$
|
46,922,823
|
$
|
377,530
|
3.17
|
|||||||||||||||||||||
Cash and due from banks
|
336,715
|
364,593
|
325,890
|
|||||||||||||||||||||||||||||||||
Premises and equipment
|
1,239,037
|
1,239,111
|
1,262,831
|
|||||||||||||||||||||||||||||||||
Allowance for credit losses
|
(183,810
|
)
|
(189,885
|
)
|
(225,339
|
)
|
||||||||||||||||||||||||||||||
Other real estate owned
|
41,673
|
40,786
|
50,949
|
|||||||||||||||||||||||||||||||||
Other assets
|
2,080,518
|
2,096,588
|
1,220,649
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
58,115,943
|
$
|
55,922,358
|
$
|
49,557,803
|
||||||||||||||||||||||||||||||
INTEREST-BEARING LIABILITIES
|
||||||||||||||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||||||||||||||
Checking with interest
|
$
|
11,993,935
|
$
|
1,382
|
0.05
|
%
|
$
|
11,323,503
|
$
|
1,350
|
0.05
|
%
|
$
|
9,688,744
|
$
|
1,533
|
0.06
|
%
|
||||||||||||||||||
Savings
|
4,140,161
|
324
|
0.03
|
3,979,389
|
342
|
0.03
|
3,230,625
|
306
|
0.04
|
|||||||||||||||||||||||||||
Money market accounts
|
10,357,923
|
2,223
|
0.09
|
9,866,327
|
2,357
|
0.09
|
8,529,816
|
3,242
|
0.15
|
|||||||||||||||||||||||||||
Time deposits
|
2,517,265
|
3,903
|
0.62
|
2,599,006
|
4,024
|
0.61
|
3,017,044
|
5,976
|
0.79
|
|||||||||||||||||||||||||||
Total interest-bearing deposits
|
29,009,284
|
7,832
|
0.11
|
27,768,225
|
8,073
|
0.12
|
24,466,229
|
11,057
|
0.18
|
|||||||||||||||||||||||||||
Securities sold under customer repurchase agreements
|
650,123
|
260
|
0.16
|
672,114
|
358
|
0.21
|
684,311
|
374
|
0.22
|
|||||||||||||||||||||||||||
Other short-term borrowings
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Long-term borrowings
|
1,217,099
|
6,513
|
2.12
|
1,222,452
|
6,537
|
2.12
|
1,250,682
|
6,729
|
2.13
|
|||||||||||||||||||||||||||
Total interest-bearing liabilities
|
30,876,506
|
$
|
14,605
|
0.19
|
29,662,791
|
$
|
14,968
|
0.20
|
26,401,222
|
$
|
18,160
|
0.27
|
||||||||||||||||||||||||
Demand deposits
|
22,229,233
|
21,338,862
|
18,657,083
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
377,286
|
384,113
|
373,403
|
|||||||||||||||||||||||||||||||||
Shareholders' equity
|
4,632,918
|
4,536,592
|
4,126,095
|
|||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
58,115,943
|
$
|
55,922,358
|
$
|
49,557,803
|
||||||||||||||||||||||||||||||
Interest rate spread
|
2.50
|
%
|
2.53
|
%
|
2.90
|
%
|
||||||||||||||||||||||||||||||
Net interest income and net yield on interest-earning assets
|
$
|
357,950
|
2.58
|
%
|
$
|
347,451
|
2.61
|
%
|
$
|
359,370
|
3.02
|
%
|