Enterprise Financial Reports Second Quarter 2024 Results
Second Quarter Results
-
Net income of
$45.4 million , or$1.19 per diluted common share, compared to$1.05 in the linked quarter and$1.29 in the prior year quarter - Net interest margin of 4.19%, quarterly increase of 6 basis points
-
Net interest income of
$140.5 million , quarterly increase of$2.8 million -
Total loans of
$11.0 billion , quarterly decrease of$28.5 million -
Total deposits of
$12.3 billion , quarterly increase of$28.7 million - Return on Average Assets (“ROAA”) of 1.25%, compared to 1.12% and 1.44% in the linked and prior year quarters, respectively
- Return on Average Tangible Common Equity (“ROATCE”)1 of 13.77%, compared to 12.31% and 16.53% in the linked and prior year quarters, respectively
- Tangible common equity to tangible assets1 of 9.18%, an increase of 17 basis points and 53 basis points from the linked and prior year quarters, respectively
-
Tangible book value per share1 of
$35.02 , annualized increase of 10% -
Repurchased 225,135 shares and increased quarterly dividend
$0.01 to$0.27 per common share for the third quarter 2024
Highlights
-
Earnings - Net income in the second quarter 2024 was
$45.4 million , an increase of$5.0 million and a decrease of$3.7 million compared to the linked and prior year quarters, respectively. Earnings per share (“EPS”) was$1.19 per diluted common share for the second quarter 2024, compared to$1.05 and$1.29 per diluted common share for the linked and prior year quarters, respectively. Adjusted diluted earnings per share1 was$1.21 for the second quarter 2024, compared to$1.07 for the linked quarter.
-
Pre-provision net revenue (“PPNR”)1 - PPNR of
$63.3 million in the second quarter 2024 increased$5.9 million and decreased$5.7 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to higher noninterest income, primarily tax credit income, and higher net interest income that benefited from higher average loan balances and expanding yields on earning assets. These increases were partially offset by an increase in deposit interest expense. The decrease compared to the prior year quarter was primarily due to the higher interest rate environment that increased deposit interest expense and the cost of variable deposit services costs, which are influenced by current market rates.
-
Net interest income and net interest margin (“NIM”) - Net interest income of
$140.5 million for the second quarter 2024 increased$2.8 million and decreased$0.2 million from the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income for the second quarter 2024 increased due to an expanded net interest spread and higher average loan and interest-earning asset balances. NIM was 4.19% for the second quarter 2024, compared to 4.13% and 4.49% for the linked and prior year quarters, respectively. The total cost of deposits of 2.16% for the second quarter 2024 increased 3 basis points and 70 basis points from the linked and prior year quarters, respectively.
-
Noninterest income - Noninterest income of
$15.5 million for the second quarter 2024 increased$3.3 million and$1.2 million from the linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily due to an increase in tax credit income on higher activity that was partially offset by an increase in market interest rates that decreased the fair value of certain tax credits.
-
Noninterest expense - Noninterest expense of
$94.0 million for the second quarter 2024 increased$0.5 million and$8.1 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily driven by higher variable deposit servicing costs and expenses related to the core system conversion, partially offset by a decrease in employee compensation and theFDIC special assessment. The increase from the prior year quarter was primarily due to variable deposit servicing costs and employee compensation.
-
Loans - Loans totaled
$11.0 billion atJune 30, 2024 , a decrease of$28.5 million from the linked quarter and an increase of$487.4 million from the prior year quarter. Average loans totaled$11.0 billion for the quarter endedJune 30, 2024 , compared to$10.9 billion and$10.3 billion for the linked and prior year quarters, respectively.
-
Asset quality - The allowance for credit losses to total loans was 1.27% at
June 30, 2024 , compared to 1.23% atMarch 31, 2024 and 1.34% atJune 30, 2023 . The ratio of nonperforming assets to total assets was 0.33% atJune 30, 2024 , compared to 0.30% and 0.12% atMarch 31, 2024 andJune 30, 2023 , respectively. The provision for credit losses recorded in the second quarter 2024 was$4.8 million , compared to$5.8 million and$6.3 million for the linked and prior year quarters, respectively.
-
Deposits - Total deposits increased
$28.7 million fromMarch 31, 2024 to$12.3 billion atJune 30, 2024 , despite a decrease of$164.1 million in brokered certificates of deposit. Excluding brokered certificates of deposits, deposits increased$192.8 million . Average deposits were$12.3 billion ,$12.2 billion and$11.4 billion for the current, linked and prior year quarters, respectively. AtJune 30, 2024 , noninterest-bearing deposit accounts totaled$3.9 billion , or 32.0% of total deposits, and the loan to deposit ratio was 89.6%.
-
Liquidity - The total available on- and off-balance-sheet liquidity was approximately
$5.6 billion atJune 30, 2024 . On-balance-sheet liquidity consisted of cash of$392.8 million and$1.2 billion in unpledged investment securities atJune 30, 2024 . Off-balance-sheet liquidity consisted of$1.2 billion available through theFederal Home Loan Bank ,$2.6 billion available through theFederal Reserve and$140.0 million through correspondent bank lines. The Company also has an unused$25.0 million revolving line of credit and maintains a shelf registration allowing for the issuance of various forms of equity and debt securities.
-
Capital - Total shareholders’ equity was
$1.8 billion and the tangible common equity to tangible assets ratio2 was 9.18% atJune 30, 2024 , compared to 9.01% atMarch 31, 2024 .Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.4% and a total risk-based capital ratio of 13.5% atJune 30, 2024 . The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.7% and 14.6%, respectively, atJune 30, 2024 .
The Company’s board of directors approved a quarterly dividend of$0.27 per common share, payable onSeptember 30, 2024 to shareholders of record as ofSeptember 16, 2024 . The board of directors also declared a cash dividend of$12.50 per share of Series A Preferred Stock (or$0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including)June 15, 2024 to (but excluding)September 15, 2024 . The dividend will be payable onSeptember 15, 2024 and will be paid onSeptember 16, 2024 to holders of record of Series A Preferred Stock as ofAugust 30, 2024 .
Net Interest Income and NIM
Average Balance Sheets
The following table presents, for the periods indicated, certain information related to the average interest-earning assets and interest-bearing liabilities, as well as the corresponding average interest rates earned and paid, all on a tax-equivalent basis.
|
Quarter ended |
|||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
($ in thousands) |
Average Balance |
|
Interest Income/ Expense |
|
Average Yield/ Rate |
|
Average Balance |
|
Interest Income/ Expense |
|
Average Yield/ Rate |
|
Average Balance |
|
Interest Income/ Expense |
|
Average Yield/ Rate |
|||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans1, 2 |
$ |
10,962,488 |
|
$ |
189,346 |
|
6.95 |
% |
|
$ |
10,927,932 |
|
$ |
186,703 |
|
6.87 |
% |
|
$ |
10,284,873 |
|
$ |
170,314 |
|
6.64 |
% |
Securities2 |
|
2,396,519 |
|
|
19,956 |
|
3.35 |
|
|
|
2,400,571 |
|
|
19,491 |
|
3.27 |
|
|
|
2,297,995 |
|
|
17,550 |
|
3.06 |
|
Interest-earning deposits |
|
325,452 |
|
|
4,389 |
|
5.42 |
|
|
|
268,068 |
|
|
3,569 |
|
5.35 |
|
|
|
173,785 |
|
|
2,095 |
|
4.84 |
|
Total interest-earning assets |
|
13,684,459 |
|
|
213,691 |
|
6.28 |
|
|
|
13,596,571 |
|
|
209,763 |
|
6.20 |
|
|
|
12,756,653 |
|
|
189,959 |
|
5.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-earning assets |
|
961,922 |
|
|
|
|
|
|
959,548 |
|
|
|
|
|
|
915,332 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ |
14,646,381 |
|
|
|
|
|
$ |
14,556,119 |
|
|
|
|
|
$ |
13,671,985 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing demand accounts |
$ |
2,950,827 |
|
$ |
18,801 |
|
2.56 |
% |
|
$ |
2,924,276 |
|
$ |
18,612 |
|
2.56 |
% |
|
$ |
2,509,805 |
|
$ |
10,120 |
|
1.62 |
% |
Money market accounts |
|
3,434,712 |
|
|
31,926 |
|
3.74 |
|
|
|
3,401,802 |
|
|
31,357 |
|
3.71 |
|
|
|
2,920,079 |
|
|
20,499 |
|
2.82 |
|
Savings accounts |
|
573,115 |
|
|
335 |
|
0.24 |
|
|
|
587,113 |
|
|
303 |
|
0.21 |
|
|
|
686,973 |
|
|
227 |
|
0.13 |
|
Certificates of deposit |
|
1,412,263 |
|
|
15,312 |
|
4.36 |
|
|
|
1,341,990 |
|
|
14,201 |
|
4.26 |
|
|
|
1,219,500 |
|
|
10,526 |
|
3.46 |
|
Total interest-bearing deposits |
|
8,370,917 |
|
|
66,374 |
|
3.19 |
|
|
|
8,255,181 |
|
|
64,473 |
|
3.14 |
|
|
|
7,336,357 |
|
|
41,372 |
|
2.26 |
|
Subordinated debentures and notes |
|
156,188 |
|
|
2,684 |
|
6.91 |
|
|
|
156,046 |
|
|
2,484 |
|
6.40 |
|
|
|
155,632 |
|
|
2,431 |
|
6.27 |
|
FHLB advances |
|
40,308 |
|
|
561 |
|
5.60 |
|
|
|
73,791 |
|
|
1,029 |
|
5.61 |
|
|
|
98,912 |
|
|
1,279 |
|
5.19 |
|
Securities sold under agreements to repurchase |
|
158,969 |
|
|
1,401 |
|
3.54 |
|
|
|
204,898 |
|
|
1,804 |
|
3.54 |
|
|
|
162,606 |
|
|
704 |
|
1.74 |
|
Other borrowings |
|
36,203 |
|
|
95 |
|
1.06 |
|
|
|
42,736 |
|
|
205 |
|
1.93 |
|
|
|
133,770 |
|
|
1,419 |
|
4.25 |
|
Total interest-bearing liabilities |
|
8,762,585 |
|
|
71,115 |
|
3.26 |
|
|
|
8,732,652 |
|
|
69,995 |
|
3.22 |
|
|
|
7,887,277 |
|
|
47,205 |
|
2.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand deposits |
|
3,973,336 |
|
|
|
|
|
|
3,925,522 |
|
|
|
|
|
|
4,051,456 |
|
|
|
|
||||||
Other liabilities |
|
162,220 |
|
|
|
|
|
|
159,247 |
|
|
|
|
|
|
111,915 |
|
|
|
|
||||||
Total liabilities |
|
12,898,141 |
|
|
|
|
|
|
12,817,421 |
|
|
|
|
|
|
12,050,648 |
|
|
|
|
||||||
Shareholders' equity |
|
1,748,240 |
|
|
|
|
|
|
1,738,698 |
|
|
|
|
|
|
1,621,337 |
|
|
|
|
||||||
Total liabilities and shareholders' equity |
$ |
14,646,381 |
|
|
|
|
|
$ |
14,556,119 |
|
|
|
|
|
$ |
13,671,985 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total net interest income |
|
|
$ |
142,576 |
|
|
|
|
|
$ |
139,768 |
|
|
|
|
|
$ |
142,754 |
|
|
||||||
Net interest margin |
|
|
|
|
4.19 |
% |
|
|
|
|
|
4.13 |
% |
|
|
|
|
|
4.49 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1 Average balances include nonaccrual loans. Interest income includes loan fees of |
||||||||||||||||||||||||||
2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were |
Net interest income of
Interest income increased
Interest expense increased
NIM, on a tax equivalent basis, was 4.19% in the second quarter 2024, an increase of 6 basis points from the linked quarter and a decrease of 30 basis points from the prior year quarter. For the month of
Investments
|
At |
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
($ in thousands) |
Carrying Value |
|
Net Unrealized Loss |
|
Carrying Value |
|
Net Unrealized Loss |
|
Carrying Value |
|
Net Unrealized Loss |
|||||||||
Available-for-sale (AFS) |
$ |
1,615,930 |
|
$ |
(172,734 |
) |
|
$ |
1,611,883 |
|
$ |
(165,586 |
) |
|
$ |
1,550,375 |
|
$ |
(179,857 |
) |
Held-to-maturity (HTM) |
|
772,648 |
|
|
(69,442 |
) |
|
|
758,017 |
|
|
(63,593 |
) |
|
|
723,959 |
|
|
(71,673 |
) |
Total |
$ |
2,388,578 |
|
$ |
(242,176 |
) |
|
$ |
2,369,900 |
|
$ |
(229,179 |
) |
|
$ |
2,274,334 |
|
$ |
(251,530 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities totaled
Loans
The following table presents total loans for the most recent five quarters:
|
At |
||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
C&I |
$ |
2,107,097 |
|
|
$ |
2,263,817 |
|
|
$ |
2,186,203 |
|
|
$ |
2,020,303 |
|
|
$ |
2,029,370 |
|
CRE investor owned |
|
2,308,926 |
|
|
|
2,280,990 |
|
|
|
2,291,660 |
|
|
|
2,260,220 |
|
|
|
2,290,701 |
|
CRE owner occupied |
|
1,313,742 |
|
|
|
1,279,929 |
|
|
|
1,262,264 |
|
|
|
1,255,885 |
|
|
|
1,208,675 |
|
SBA loans* |
|
1,269,145 |
|
|
|
1,274,780 |
|
|
|
1,281,632 |
|
|
|
1,309,497 |
|
|
|
1,327,667 |
|
Sponsor finance* |
|
865,883 |
|
|
|
865,180 |
|
|
|
872,264 |
|
|
|
888,000 |
|
|
|
879,491 |
|
Life insurance premium financing* |
|
996,154 |
|
|
|
1,003,597 |
|
|
|
956,162 |
|
|
|
928,486 |
|
|
|
912,274 |
|
Tax credits* |
|
738,249 |
|
|
|
718,383 |
|
|
|
734,594 |
|
|
|
683,580 |
|
|
|
609,137 |
|
Residential real estate |
|
339,889 |
|
|
|
354,615 |
|
|
|
359,957 |
|
|
|
364,618 |
|
|
|
354,588 |
|
Construction and land development |
|
791,780 |
|
|
|
726,742 |
|
|
|
670,567 |
|
|
|
639,555 |
|
|
|
599,375 |
|
Other |
|
269,142 |
|
|
|
260,459 |
|
|
|
268,815 |
|
|
|
266,676 |
|
|
|
301,345 |
|
Total loans |
$ |
11,000,007 |
|
|
$ |
11,028,492 |
|
|
$ |
10,884,118 |
|
|
$ |
10,616,820 |
|
|
$ |
10,512,623 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Quarterly loan yield |
|
6.95 |
% |
|
|
6.87 |
% |
|
|
6.87 |
% |
|
|
6.80 |
% |
|
|
6.64 |
% |
Variable interest rate loans to total loans |
|
61 |
% |
|
|
61 |
% |
|
|
61 |
% |
|
|
61 |
% |
|
|
62 |
% |
|
|||||||||||||||||||
*Specialty loan category |
Loans totaled
Asset Quality
The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:
|
At |
||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans* |
$ |
39,384 |
|
|
$ |
35,642 |
|
|
$ |
43,728 |
|
|
$ |
48,932 |
|
|
$ |
16,112 |
|
Other |
|
8,746 |
|
|
|
8,466 |
|
|
|
5,736 |
|
|
|
6,933 |
|
|
|
— |
|
Nonperforming assets* |
$ |
48,130 |
|
|
$ |
44,108 |
|
|
$ |
49,464 |
|
|
$ |
55,865 |
|
|
$ |
16,112 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans to total loans |
|
0.36 |
% |
|
|
0.32 |
% |
|
|
0.40 |
% |
|
|
0.46 |
% |
|
|
0.15 |
% |
Nonperforming assets to total assets |
|
0.33 |
% |
|
|
0.30 |
% |
|
|
0.34 |
% |
|
|
0.40 |
% |
|
|
0.12 |
% |
Allowance for credit losses to total loans |
|
1.27 |
% |
|
|
1.23 |
% |
|
|
1.24 |
% |
|
|
1.34 |
% |
|
|
1.34 |
% |
Quarterly net charge-offs |
$ |
605 |
|
|
$ |
5,864 |
|
|
$ |
28,479 |
|
|
$ |
6,856 |
|
|
$ |
2,973 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
*Guaranteed balances excluded |
$ |
12,933 |
|
|
$ |
9,630 |
|
|
$ |
10,682 |
|
|
$ |
5,974 |
|
|
$ |
6,666 |
|
Nonperforming assets increased
The provision for credit losses totaled
Deposits
The following table presents deposits broken out by type for the most recent five quarters:
|
At |
||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing demand accounts |
$ |
3,928,308 |
|
|
$ |
3,805,334 |
|
|
$ |
3,958,743 |
|
|
$ |
3,852,486 |
|
|
$ |
3,880,561 |
|
Interest-bearing demand accounts |
|
2,951,899 |
|
|
|
2,956,282 |
|
|
|
2,950,259 |
|
|
|
2,749,598 |
|
|
|
2,629,339 |
|
Money market and savings accounts |
|
4,039,626 |
|
|
|
4,006,702 |
|
|
|
3,994,455 |
|
|
|
3,837,145 |
|
|
|
3,577,856 |
|
Brokered certificates of deposit |
|
494,870 |
|
|
|
659,005 |
|
|
|
482,759 |
|
|
|
695,551 |
|
|
|
893,808 |
|
Other certificates of deposit |
|
867,680 |
|
|
|
826,378 |
|
|
|
790,155 |
|
|
|
775,127 |
|
|
|
638,296 |
|
Total deposit portfolio |
$ |
12,282,383 |
|
|
$ |
12,253,701 |
|
|
$ |
12,176,371 |
|
|
$ |
11,909,907 |
|
|
$ |
11,619,860 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits to total deposits |
|
32.0 |
% |
|
|
31.1 |
% |
|
|
32.5 |
% |
|
|
32.3 |
% |
|
|
33.4 |
% |
Quarterly cost of deposits |
|
2.16 |
% |
|
|
2.13 |
% |
|
|
2.03 |
% |
|
|
1.84 |
% |
|
|
1.46 |
% |
Total deposits at
Total estimated insured deposits4, which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled
Noninterest Income
The following table presents a comparative summary of the major components of noninterest income for the periods indicated:
|
Linked quarter comparison |
|
Prior year comparison |
||||||||||||||||||||
|
Quarter ended |
|
Quarter ended |
||||||||||||||||||||
($ in thousands) |
|
|
|
|
Increase (decrease) |
|
|
|
Increase (decrease) |
||||||||||||||
Deposit service charges |
$ |
4,542 |
|
$ |
4,423 |
|
|
$ |
119 |
|
|
3 |
% |
|
$ |
3,910 |
|
$ |
632 |
|
|
16 |
% |
Wealth management revenue |
|
2,590 |
|
|
2,544 |
|
|
|
46 |
|
|
2 |
% |
|
|
2,472 |
|
|
118 |
|
|
5 |
% |
Card services revenue |
|
2,497 |
|
|
2,412 |
|
|
|
85 |
|
|
4 |
% |
|
|
2,464 |
|
|
33 |
|
|
1 |
% |
Tax credit income (loss) |
|
1,874 |
|
|
(2,190 |
) |
|
|
4,064 |
|
|
186 |
% |
|
|
368 |
|
|
1,506 |
|
|
409 |
% |
Other income |
|
3,991 |
|
|
4,969 |
|
|
|
(978 |
) |
|
(20 |
)% |
|
|
5,076 |
|
|
(1,085 |
) |
|
(21 |
)% |
Total noninterest income |
$ |
15,494 |
|
$ |
12,158 |
|
|
$ |
3,336 |
|
|
27 |
% |
|
$ |
14,290 |
|
$ |
1,204 |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income was
The following table presents a comparative summary of the major components of other income for the periods indicated:
|
Linked quarter comparison |
|
Prior year comparison |
|||||||||||||||||||
|
Quarter ended |
|
Quarter ended |
|||||||||||||||||||
($ in thousands) |
|
|
|
|
Increase (decrease) |
|
|
|
Increase (decrease) |
|||||||||||||
Gain on SBA loan sales |
$ |
— |
|
$ |
1,415 |
|
$ |
(1,415 |
) |
|
(100 |
)% |
|
$ |
— |
|
$ |
— |
|
|
— |
% |
BOLI |
|
855 |
|
|
864 |
|
|
(9 |
) |
|
(1 |
)% |
|
|
797 |
|
|
58 |
|
|
7 |
% |
Community development investments |
|
381 |
|
|
585 |
|
|
(204 |
) |
|
(35 |
)% |
|
|
2,077 |
|
|
(1,696 |
) |
|
(82 |
)% |
Private equity fund distributions |
|
411 |
|
|
162 |
|
|
249 |
|
|
154 |
% |
|
|
371 |
|
|
40 |
|
|
11 |
% |
Servicing fees |
|
594 |
|
|
287 |
|
|
307 |
|
|
107 |
% |
|
|
407 |
|
|
187 |
|
|
46 |
% |
Swap fees |
|
217 |
|
|
45 |
|
|
172 |
|
|
382 |
% |
|
|
173 |
|
|
44 |
|
|
25 |
% |
Miscellaneous income |
|
1,533 |
|
|
1,611 |
|
|
(78 |
) |
|
(5 |
)% |
|
|
1,251 |
|
|
282 |
|
|
23 |
% |
Total other income |
$ |
3,991 |
|
$ |
4,969 |
|
$ |
(978 |
) |
|
(20 |
)% |
|
$ |
5,076 |
|
$ |
(1,085 |
) |
|
(21 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The decrease in other income from the linked quarter was primarily driven by gains on the sale of SBA loans that were recognized in the linked quarter, while the decrease from the prior year quarter was due to lower community development income. Community development income and private equity fund distributions are not consistent sources of income and fluctuate based on distributions from the underlying funds.
Noninterest Expense
The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:
|
Linked quarter comparison |
|
Prior year comparison |
|||||||||||||||||||
|
Quarter ended |
|
Quarter ended |
|||||||||||||||||||
($ in thousands) |
|
|
|
|
Increase (decrease) |
|
|
|
Increase (decrease) |
|||||||||||||
Employee compensation and benefits |
$ |
44,524 |
|
$ |
45,262 |
|
$ |
(738 |
) |
|
(2 |
)% |
|
$ |
41,641 |
|
$ |
2,883 |
|
|
7 |
% |
Deposit costs |
|
21,706 |
|
|
20,277 |
|
|
1,429 |
|
|
7 |
% |
|
|
16,980 |
|
|
4,726 |
|
|
28 |
% |
Occupancy |
|
4,197 |
|
|
4,326 |
|
|
(129 |
) |
|
(3 |
)% |
|
|
3,954 |
|
|
243 |
|
|
6 |
% |
|
|
— |
|
|
625 |
|
|
(625 |
) |
|
(100 |
)% |
|
|
— |
|
|
— |
|
|
— |
% |
Core conversion expense |
|
1,250 |
|
|
350 |
|
|
900 |
|
|
257 |
% |
|
|
— |
|
|
1,250 |
|
|
100 |
% |
Other expense |
|
22,340 |
|
|
22,661 |
|
|
(321 |
) |
|
(1 |
)% |
|
|
23,381 |
|
|
(1,041 |
) |
|
(4 |
)% |
Total noninterest expense |
$ |
94,017 |
|
$ |
93,501 |
|
$ |
516 |
|
|
1 |
% |
|
$ |
85,956 |
|
$ |
8,061 |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits decreased
The increase in noninterest expense of
For the second quarter 2024, the core efficiency ratio5 was 58.1%, compared to 60.2% for the linked quarter and 54.0% for the prior year quarter.
Income Taxes
The effective tax rate was 20.5%, compared to 20.2% and 21.6% in the linked and prior year quarters, respectively. The decrease in the effective tax rate from the prior year quarter was driven by tax credit opportunities the Company has deployed as part of its tax planning strategy.
Capital
The following table presents total equity and various capital ratios for the most recent five quarters:
|
At |
||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity |
$ |
1,755,273 |
|
|
$ |
1,731,725 |
|
|
$ |
1,716,068 |
|
|
$ |
1,611,880 |
|
|
$ |
1,618,233 |
|
Total risk-based capital to risk-weighted assets |
|
14.6 |
% |
|
|
14.3 |
% |
|
|
14.2 |
% |
|
|
14.1 |
% |
|
|
14.1 |
% |
Tier 1 capital to risk weighted assets |
|
13.0 |
% |
|
|
12.8 |
% |
|
|
12.7 |
% |
|
|
12.6 |
% |
|
|
12.5 |
% |
Common equity tier 1 capital to risk-weighted assets |
|
11.7 |
% |
|
|
11.4 |
% |
|
|
11.3 |
% |
|
|
11.2 |
% |
|
|
11.1 |
% |
Leverage ratio |
|
11.1 |
% |
|
|
11.0 |
% |
|
|
11.0 |
% |
|
|
10.9 |
% |
|
|
11.0 |
% |
Tangible common equity to tangible assets |
|
9.18 |
% |
|
|
9.01 |
% |
|
|
8.96 |
% |
|
|
8.51 |
% |
|
|
8.65 |
% |
*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.
Total equity was
The Company’s regulatory capital ratios continue to exceed the “well-capitalized” regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.
________________________________ |
1 ROATCE, tangible common equity to tangible assets, tangible book value per share, adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables. |
2 Tangible common equity to tangible assets ratio is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables. |
3 The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables. |
4 Estimated insured deposits is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables. |
5 Core efficiency ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables. |
Use of Non-GAAP Financial Measures
The Company’s accounting and reporting policies conform to generally accepted accounting principles in
The Company considers its tangible common equity, PPNR, ROATCE, core efficiency ratio, the tangible common equity ratio, tangible book value per common share, estimated insured deposits and adjusted diluted earnings per share, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as the
The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.
Conference Call and Webcast Information
The Company will host a conference call and webcast at
About
Enterprise Financial Services Corp’s common stock is traded on the
Forward-looking Statements
Readers should note that, in addition to the historical information contained herein, this press release contains “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, shareholder value creation and the impact of acquisitions.
Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma”, “pipeline” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, as well as credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including
For any forward-looking statements made in this press release or in any documents, EFSC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, EFSC disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) |
|||||||||||||||||||||||||||
|
Quarter ended |
|
Six months ended |
||||||||||||||||||||||||
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
EARNINGS SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest income |
$ |
140,529 |
|
|
$ |
137,728 |
|
|
$ |
140,732 |
|
|
$ |
141,639 |
|
|
$ |
140,692 |
|
|
$ |
278,257 |
|
|
$ |
280,221 |
|
Provision for credit losses |
|
4,819 |
|
|
|
5,756 |
|
|
|
18,053 |
|
|
|
8,030 |
|
|
|
6,339 |
|
|
|
10,575 |
|
|
|
10,522 |
|
Noninterest income |
|
15,494 |
|
|
|
12,158 |
|
|
|
25,452 |
|
|
|
12,085 |
|
|
|
14,290 |
|
|
|
27,652 |
|
|
|
31,188 |
|
Noninterest expense |
|
94,017 |
|
|
|
93,501 |
|
|
|
92,603 |
|
|
|
88,644 |
|
|
|
85,956 |
|
|
|
187,518 |
|
|
|
166,939 |
|
Income before income tax expense |
|
57,187 |
|
|
|
50,629 |
|
|
|
55,528 |
|
|
|
57,050 |
|
|
|
62,687 |
|
|
|
107,816 |
|
|
|
133,948 |
|
Income tax expense |
|
11,741 |
|
|
|
10,228 |
|
|
|
10,999 |
|
|
|
12,385 |
|
|
|
13,560 |
|
|
|
21,969 |
|
|
|
29,083 |
|
Net income |
|
45,446 |
|
|
|
40,401 |
|
|
|
44,529 |
|
|
|
44,665 |
|
|
|
49,127 |
|
|
|
85,847 |
|
|
|
104,865 |
|
Preferred stock dividends |
|
937 |
|
|
|
938 |
|
|
|
937 |
|
|
|
938 |
|
|
|
937 |
|
|
|
1,875 |
|
|
|
1,875 |
|
Net income available to common shareholders |
$ |
44,509 |
|
|
$ |
39,463 |
|
|
$ |
43,592 |
|
|
$ |
43,727 |
|
|
$ |
48,190 |
|
|
$ |
83,972 |
|
|
$ |
102,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted earnings per common share |
$ |
1.19 |
|
|
$ |
1.05 |
|
|
$ |
1.16 |
|
|
$ |
1.17 |
|
|
$ |
1.29 |
|
|
$ |
2.24 |
|
|
$ |
2.75 |
|
Adjusted diluted earnings per common share1 |
$ |
1.21 |
|
|
$ |
1.07 |
|
|
$ |
1.21 |
|
|
$ |
1.17 |
|
|
$ |
1.29 |
|
|
$ |
2.28 |
|
|
$ |
2.75 |
|
Return on average assets |
|
1.25 |
% |
|
|
1.12 |
% |
|
|
1.23 |
% |
|
|
1.26 |
% |
|
|
1.44 |
% |
|
|
1.18 |
% |
|
|
1.58 |
% |
Adjusted return on average assets1 |
|
1.27 |
% |
|
|
1.14 |
% |
|
|
1.28 |
% |
|
|
1.26 |
% |
|
|
1.44 |
% |
|
|
1.21 |
% |
|
|
1.58 |
% |
Return on average common equity1 |
|
10.68 |
% |
|
|
9.52 |
% |
|
|
10.94 |
% |
|
|
11.00 |
% |
|
|
12.48 |
% |
|
|
10.10 |
% |
|
|
13.64 |
% |
Adjusted return on average common equity1 |
|
10.90 |
% |
|
|
9.70 |
% |
|
|
11.40 |
% |
|
|
11.00 |
% |
|
|
12.48 |
% |
|
|
10.30 |
% |
|
|
13.64 |
% |
ROATCE1 |
|
13.77 |
% |
|
|
12.31 |
% |
|
|
14.38 |
% |
|
|
14.49 |
% |
|
|
16.53 |
% |
|
|
13.04 |
% |
|
|
18.18 |
% |
Adjusted ROATCE1 |
|
14.06 |
% |
|
|
12.53 |
% |
|
|
14.98 |
% |
|
|
14.49 |
% |
|
|
16.53 |
% |
|
|
13.30 |
% |
|
|
18.18 |
% |
Net interest margin (tax equivalent) |
|
4.19 |
% |
|
|
4.13 |
% |
|
|
4.23 |
% |
|
|
4.33 |
% |
|
|
4.49 |
% |
|
|
4.16 |
% |
|
|
4.60 |
% |
Efficiency ratio |
|
60.26 |
% |
|
|
62.38 |
% |
|
|
55.72 |
% |
|
|
57.66 |
% |
|
|
55.46 |
% |
|
|
61.30 |
% |
|
|
53.61 |
% |
Core efficiency ratio1 |
|
58.09 |
% |
|
|
60.21 |
% |
|
|
53.06 |
% |
|
|
56.18 |
% |
|
|
54.04 |
% |
|
|
59.13 |
% |
|
|
52.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Assets |
$ |
14,615,666 |
|
|
$ |
14,613,338 |
|
|
$ |
14,518,590 |
|
|
$ |
14,025,042 |
|
|
$ |
13,871,154 |
|
|
|
|
|
||||
Average assets |
$ |
14,646,381 |
|
|
$ |
14,556,119 |
|
|
$ |
14,332,804 |
|
|
$ |
14,068,860 |
|
|
$ |
13,671,985 |
|
|
$ |
14,601,250 |
|
|
$ |
13,403,084 |
|
Period end common shares outstanding |
|
37,344 |
|
|
|
37,515 |
|
|
|
37,416 |
|
|
|
37,385 |
|
|
|
37,359 |
|
|
|
|
|
||||
Dividends per common share |
$ |
0.26 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.51 |
|
|
$ |
0.50 |
|
Tangible book value per common share1 |
$ |
35.02 |
|
|
$ |
34.21 |
|
|
$ |
33.85 |
|
|
$ |
31.06 |
|
|
$ |
31.23 |
|
|
|
|
|
||||
Tangible common equity to tangible assets1 |
|
9.18 |
% |
|
|
9.01 |
% |
|
|
8.96 |
% |
|
|
8.51 |
% |
|
|
8.65 |
% |
|
|
|
|
||||
Total risk-based capital to risk-weighted assets2 |
|
14.6 |
% |
|
|
14.3 |
% |
|
|
14.2 |
% |
|
|
14.1 |
% |
|
|
14.1 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
1Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP. |
|||||||||||||||||||||||||||
2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review. |
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) |
|||||||||||||||||||||||
|
Quarter ended |
|
Six months ended |
||||||||||||||||||||
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME STATEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income |
$ |
211,644 |
|
$ |
207,723 |
|
|
$ |
207,083 |
|
$ |
200,906 |
|
|
$ |
187,897 |
|
$ |
419,367 |
|
|
$ |
356,930 |
Interest expense |
|
71,115 |
|
|
69,995 |
|
|
|
66,351 |
|
|
59,267 |
|
|
|
47,205 |
|
|
141,110 |
|
|
|
76,709 |
Net interest income |
|
140,529 |
|
|
137,728 |
|
|
|
140,732 |
|
|
141,639 |
|
|
|
140,692 |
|
|
278,257 |
|
|
|
280,221 |
Provision for credit losses |
|
4,819 |
|
|
5,756 |
|
|
|
18,053 |
|
|
8,030 |
|
|
|
6,339 |
|
|
10,575 |
|
|
|
10,522 |
Net interest income after provision for credit losses |
|
135,710 |
|
|
131,972 |
|
|
|
122,679 |
|
|
133,609 |
|
|
|
134,353 |
|
|
267,682 |
|
|
|
269,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit service charges |
|
4,542 |
|
|
4,423 |
|
|
|
4,334 |
|
|
4,187 |
|
|
|
3,910 |
|
|
8,965 |
|
|
|
8,038 |
Wealth management revenue |
|
2,590 |
|
|
2,544 |
|
|
|
2,428 |
|
|
2,614 |
|
|
|
2,472 |
|
|
5,134 |
|
|
|
4,988 |
Card services revenue |
|
2,497 |
|
|
2,412 |
|
|
|
2,666 |
|
|
2,560 |
|
|
|
2,464 |
|
|
4,909 |
|
|
|
4,802 |
Tax credit income (loss) |
|
1,874 |
|
|
(2,190 |
) |
|
|
9,688 |
|
|
(2,673 |
) |
|
|
368 |
|
|
(316 |
) |
|
|
2,181 |
Other income |
|
3,991 |
|
|
4,969 |
|
|
|
6,336 |
|
|
5,397 |
|
|
|
5,076 |
|
|
8,960 |
|
|
|
11,179 |
Total noninterest income |
|
15,494 |
|
|
12,158 |
|
|
|
25,452 |
|
|
12,085 |
|
|
|
14,290 |
|
|
27,652 |
|
|
|
31,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee compensation and benefits |
|
44,524 |
|
|
45,262 |
|
|
|
39,651 |
|
|
40,771 |
|
|
|
41,641 |
|
|
89,786 |
|
|
|
84,144 |
Deposit costs |
|
21,706 |
|
|
20,277 |
|
|
|
21,606 |
|
|
20,987 |
|
|
|
16,980 |
|
|
41,983 |
|
|
|
29,700 |
Occupancy |
|
4,197 |
|
|
4,326 |
|
|
|
4,313 |
|
|
4,198 |
|
|
|
3,954 |
|
|
8,523 |
|
|
|
8,015 |
|
|
— |
|
|
625 |
|
|
|
2,412 |
|
|
— |
|
|
|
— |
|
|
625 |
|
|
|
— |
Core conversion expense |
|
1,250 |
|
|
350 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
1,600 |
|
|
|
— |
Other expense |
|
22,340 |
|
|
22,661 |
|
|
|
24,621 |
|
|
22,688 |
|
|
|
23,381 |
|
|
45,001 |
|
|
|
45,080 |
Total noninterest expense |
|
94,017 |
|
|
93,501 |
|
|
|
92,603 |
|
|
88,644 |
|
|
|
85,956 |
|
|
187,518 |
|
|
|
166,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income tax expense |
|
57,187 |
|
|
50,629 |
|
|
|
55,528 |
|
|
57,050 |
|
|
|
62,687 |
|
|
107,816 |
|
|
|
133,948 |
Income tax expense |
|
11,741 |
|
|
10,228 |
|
|
|
10,999 |
|
|
12,385 |
|
|
|
13,560 |
|
|
21,969 |
|
|
|
29,083 |
Net income |
$ |
45,446 |
|
$ |
40,401 |
|
|
$ |
44,529 |
|
$ |
44,665 |
|
|
$ |
49,127 |
|
$ |
85,847 |
|
|
$ |
104,865 |
Preferred stock dividends |
|
937 |
|
|
938 |
|
|
|
937 |
|
|
938 |
|
|
|
937 |
|
|
1,875 |
|
|
|
1,875 |
Net income available to common shareholders |
$ |
44,509 |
|
$ |
39,463 |
|
|
$ |
43,592 |
|
$ |
43,727 |
|
|
$ |
48,190 |
|
$ |
83,972 |
|
|
$ |
102,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share |
$ |
1.19 |
|
$ |
1.05 |
|
|
$ |
1.16 |
|
$ |
1.17 |
|
|
$ |
1.29 |
|
$ |
2.24 |
|
|
$ |
2.76 |
Diluted earnings per common share |
$ |
1.19 |
|
$ |
1.05 |
|
|
$ |
1.16 |
|
$ |
1.17 |
|
|
$ |
1.29 |
|
$ |
2.24 |
|
|
$ |
2.75 |
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) |
|||||||||||||||||||
|
At |
||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
BALANCE SHEET |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
176,698 |
|
|
$ |
157,697 |
|
|
$ |
193,275 |
|
|
$ |
190,806 |
|
|
$ |
202,702 |
|
Interest-earning deposits |
|
219,342 |
|
|
|
215,951 |
|
|
|
243,610 |
|
|
|
184,245 |
|
|
|
125,328 |
|
Debt and equity investments |
|
2,460,549 |
|
|
|
2,443,977 |
|
|
|
2,434,902 |
|
|
|
2,279,578 |
|
|
|
2,340,821 |
|
Loans held for sale |
|
606 |
|
|
|
610 |
|
|
|
359 |
|
|
|
212 |
|
|
|
551 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans |
|
11,000,007 |
|
|
|
11,028,492 |
|
|
|
10,884,118 |
|
|
|
10,616,820 |
|
|
|
10,512,623 |
|
Allowance for credit losses |
|
(139,464 |
) |
|
|
(135,498 |
) |
|
|
(134,771 |
) |
|
|
(142,133 |
) |
|
|
(141,319 |
) |
Total loans, net |
|
10,860,543 |
|
|
|
10,892,994 |
|
|
|
10,749,347 |
|
|
|
10,474,687 |
|
|
|
10,371,304 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed assets, net |
|
44,831 |
|
|
|
44,382 |
|
|
|
42,681 |
|
|
|
41,268 |
|
|
|
41,988 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
Intangible assets, net |
|
10,327 |
|
|
|
11,271 |
|
|
|
12,318 |
|
|
|
13,425 |
|
|
|
14,544 |
|
Other assets |
|
477,606 |
|
|
|
481,292 |
|
|
|
476,934 |
|
|
|
475,657 |
|
|
|
408,752 |
|
Total assets |
$ |
14,615,666 |
|
|
$ |
14,613,338 |
|
|
$ |
14,518,590 |
|
|
$ |
14,025,042 |
|
|
$ |
13,871,154 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits |
$ |
3,928,308 |
|
|
$ |
3,805,334 |
|
|
$ |
3,958,743 |
|
|
$ |
3,852,486 |
|
|
$ |
3,880,561 |
|
Interest-bearing deposits |
|
8,354,075 |
|
|
|
8,448,367 |
|
|
|
8,217,628 |
|
|
|
8,057,421 |
|
|
|
7,739,299 |
|
Total deposits |
|
12,282,383 |
|
|
|
12,253,701 |
|
|
|
12,176,371 |
|
|
|
11,909,907 |
|
|
|
11,619,860 |
|
Subordinated debentures and notes |
|
156,265 |
|
|
|
156,124 |
|
|
|
155,984 |
|
|
|
155,844 |
|
|
|
155,706 |
|
FHLB advances |
|
78,000 |
|
|
|
125,000 |
|
|
|
— |
|
|
|
— |
|
|
|
150,000 |
|
Other borrowings |
|
178,269 |
|
|
|
195,246 |
|
|
|
297,829 |
|
|
|
182,372 |
|
|
|
199,390 |
|
Other liabilities |
|
165,476 |
|
|
|
151,542 |
|
|
|
172,338 |
|
|
|
165,039 |
|
|
|
127,965 |
|
Total liabilities |
|
12,860,393 |
|
|
|
12,881,613 |
|
|
|
12,802,522 |
|
|
|
12,413,162 |
|
|
|
12,252,921 |
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
Common stock |
|
373 |
|
|
|
375 |
|
|
|
374 |
|
|
|
374 |
|
|
|
374 |
|
Additional paid-in capital |
|
994,116 |
|
|
|
995,969 |
|
|
|
995,208 |
|
|
|
992,044 |
|
|
|
988,355 |
|
Retained earnings |
|
810,935 |
|
|
|
778,784 |
|
|
|
749,513 |
|
|
|
715,303 |
|
|
|
680,981 |
|
Accumulated other comprehensive loss |
|
(122,139 |
) |
|
|
(115,391 |
) |
|
|
(101,015 |
) |
|
|
(167,829 |
) |
|
|
(123,465 |
) |
Total shareholders’ equity |
|
1,755,273 |
|
|
|
1,731,725 |
|
|
|
1,716,068 |
|
|
|
1,611,880 |
|
|
|
1,618,233 |
|
Total liabilities and shareholders’ equity |
$ |
14,615,666 |
|
|
$ |
14,613,338 |
|
|
$ |
14,518,590 |
|
|
$ |
14,025,042 |
|
|
$ |
13,871,154 |
|
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) |
|||||||||||||||||
|
Six months ended |
||||||||||||||||
|
|
|
|
||||||||||||||
($ in thousands) |
Average Balance |
|
Interest Income/ Expense |
|
Average Yield/ Rate |
|
Average Balance |
|
Interest Income/ Expense |
|
Average Yield/ Rate |
||||||
AVERAGE BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans1, 2 |
$ |
10,945,211 |
|
$ |
376,049 |
|
6.91 |
% |
|
$ |
10,041,312 |
|
$ |
323,076 |
|
6.49 |
% |
Securities2 |
|
2,398,545 |
|
|
39,447 |
|
3.31 |
|
|
|
2,293,249 |
|
|
34,667 |
|
3.05 |
|
Interest-earning deposits |
|
296,759 |
|
|
7,958 |
|
5.39 |
|
|
|
140,206 |
|
|
3,290 |
|
4.73 |
|
Total interest-earning assets |
|
13,640,515 |
|
|
423,454 |
|
6.24 |
|
|
|
12,474,767 |
|
|
361,033 |
|
5.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest-earning assets |
|
960,735 |
|
|
|
|
|
|
928,317 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total assets |
$ |
14,601,250 |
|
|
|
|
|
$ |
13,403,084 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand accounts |
$ |
2,937,551 |
|
$ |
37,413 |
|
2.56 |
% |
|
$ |
2,356,708 |
|
$ |
16,027 |
|
1.37 |
% |
Money market accounts |
|
3,418,257 |
|
|
63,283 |
|
3.72 |
|
|
|
2,873,715 |
|
|
35,970 |
|
2.52 |
|
Savings accounts |
|
580,115 |
|
|
637 |
|
0.22 |
|
|
|
709,490 |
|
|
457 |
|
0.13 |
|
Certificates of deposit |
|
1,377,126 |
|
|
29,514 |
|
4.31 |
|
|
|
946,527 |
|
|
13,579 |
|
2.89 |
|
Total interest-bearing deposits |
|
8,313,049 |
|
|
130,847 |
|
3.17 |
|
|
|
6,886,440 |
|
|
66,033 |
|
1.93 |
|
Subordinated debentures and notes |
|
156,117 |
|
|
5,168 |
|
6.66 |
|
|
|
155,565 |
|
|
4,840 |
|
6.27 |
|
FHLB advances |
|
57,049 |
|
|
1,590 |
|
5.60 |
|
|
|
104,887 |
|
|
2,611 |
|
5.02 |
|
Securities sold under agreements to repurchase |
|
181,933 |
|
|
3,205 |
|
3.54 |
|
|
|
188,958 |
|
|
1,453 |
|
1.55 |
|
Other borrowings |
|
39,470 |
|
|
300 |
|
1.53 |
|
|
|
94,048 |
|
|
1,772 |
|
3.80 |
|
Total interest-bearing liabilities |
|
8,747,618 |
|
|
141,110 |
|
3.24 |
|
|
|
7,429,898 |
|
|
76,709 |
|
2.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand deposits |
|
3,949,429 |
|
|
|
|
|
|
4,265,521 |
|
|
|
|
||||
Other liabilities |
|
160,734 |
|
|
|
|
|
|
112,625 |
|
|
|
|
||||
Total liabilities |
|
12,857,781 |
|
|
|
|
|
|
11,808,044 |
|
|
|
|
||||
Shareholders' equity |
|
1,743,469 |
|
|
|
|
|
|
1,595,040 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
14,601,250 |
|
|
|
|
|
$ |
13,403,084 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total net interest income |
|
|
$ |
282,344 |
|
|
|
|
|
$ |
284,324 |
|
|
||||
Net interest margin |
|
|
|
|
4.16 |
% |
|
|
|
|
|
4.60 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1 Average balances include nonaccrual loans. Interest income includes loan fees of |
|||||||||||||||||
2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) |
|||||||||||||||||||
|
At or for the quarter ended |
||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
LOAN PORTFOLIO |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial |
$ |
4,619,448 |
|
|
$ |
4,766,310 |
|
|
$ |
4,672,559 |
|
|
$ |
4,448,535 |
|
|
$ |
4,360,862 |
|
Commercial real estate |
|
4,856,751 |
|
|
|
4,804,803 |
|
|
|
4,803,571 |
|
|
|
4,794,355 |
|
|
|
4,802,293 |
|
Construction real estate |
|
893,672 |
|
|
|
820,416 |
|
|
|
760,425 |
|
|
|
723,796 |
|
|
|
671,573 |
|
Residential real estate |
|
351,934 |
|
|
|
367,218 |
|
|
|
372,188 |
|
|
|
376,120 |
|
|
|
368,867 |
|
Other |
|
278,202 |
|
|
|
269,745 |
|
|
|
275,375 |
|
|
|
274,014 |
|
|
|
309,028 |
|
Total loans |
$ |
11,000,007 |
|
|
$ |
11,028,492 |
|
|
$ |
10,884,118 |
|
|
$ |
10,616,820 |
|
|
$ |
10,512,623 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
DEPOSIT PORTFOLIO |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing demand accounts |
$ |
3,928,308 |
|
|
$ |
3,805,334 |
|
|
$ |
3,958,743 |
|
|
$ |
3,852,486 |
|
|
$ |
3,880,561 |
|
Interest-bearing demand accounts |
|
2,951,899 |
|
|
|
2,956,282 |
|
|
|
2,950,259 |
|
|
|
2,749,598 |
|
|
|
2,629,339 |
|
Money market and savings accounts |
|
4,039,626 |
|
|
|
4,006,702 |
|
|
|
3,994,455 |
|
|
|
3,837,145 |
|
|
|
3,577,856 |
|
Brokered certificates of deposit |
|
494,870 |
|
|
|
659,005 |
|
|
|
482,759 |
|
|
|
695,551 |
|
|
|
893,808 |
|
Other certificates of deposit |
|
867,680 |
|
|
|
826,378 |
|
|
|
790,155 |
|
|
|
775,127 |
|
|
|
638,296 |
|
Total deposits |
$ |
12,282,383 |
|
|
$ |
12,253,701 |
|
|
$ |
12,176,371 |
|
|
$ |
11,909,907 |
|
|
$ |
11,619,860 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
||||||||||
Loans |
$ |
10,962,488 |
|
|
$ |
10,927,932 |
|
|
$ |
10,685,961 |
|
|
$ |
10,521,966 |
|
|
$ |
10,284,873 |
|
Securities |
|
2,396,519 |
|
|
|
2,400,571 |
|
|
|
2,276,915 |
|
|
|
2,302,850 |
|
|
|
2,297,995 |
|
Interest-earning assets |
|
13,684,459 |
|
|
|
13,596,571 |
|
|
|
13,383,638 |
|
|
|
13,160,587 |
|
|
|
12,756,653 |
|
Assets |
|
14,646,381 |
|
|
|
14,556,119 |
|
|
|
14,332,804 |
|
|
|
14,068,860 |
|
|
|
13,671,985 |
|
Deposits |
|
12,344,253 |
|
|
|
12,180,703 |
|
|
|
12,163,346 |
|
|
|
11,922,534 |
|
|
|
11,387,813 |
|
Shareholders’ equity |
|
1,748,240 |
|
|
|
1,738,698 |
|
|
|
1,652,882 |
|
|
|
1,648,605 |
|
|
|
1,621,337 |
|
Tangible common equity1 |
|
1,300,305 |
|
|
|
1,289,776 |
|
|
|
1,202,872 |
|
|
|
1,197,486 |
|
|
|
1,169,091 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
YIELDS (tax equivalent) |
|
|
|
|
|
|
|
|
|
||||||||||
Loans |
|
6.95 |
% |
|
|
6.87 |
% |
|
|
6.87 |
% |
|
|
6.80 |
% |
|
|
6.64 |
% |
Securities |
|
3.35 |
|
|
|
3.27 |
|
|
|
3.20 |
|
|
|
3.11 |
|
|
|
3.06 |
|
Interest-earning assets |
|
6.28 |
|
|
|
6.20 |
|
|
|
6.20 |
|
|
|
6.12 |
|
|
|
5.97 |
|
Interest-bearing deposits |
|
3.19 |
|
|
|
3.14 |
|
|
|
3.03 |
|
|
|
2.77 |
|
|
|
2.26 |
|
Deposits |
|
2.16 |
|
|
|
2.13 |
|
|
|
2.03 |
|
|
|
1.84 |
|
|
|
1.46 |
|
Subordinated debentures and notes |
|
6.91 |
|
|
|
6.40 |
|
|
|
6.30 |
|
|
|
6.28 |
|
|
|
6.27 |
|
FHLB advances and other borrowed funds |
|
3.52 |
|
|
|
3.80 |
|
|
|
3.06 |
|
|
|
2.76 |
|
|
|
3.45 |
|
Interest-bearing liabilities |
|
3.26 |
|
|
|
3.22 |
|
|
|
3.09 |
|
|
|
2.84 |
|
|
|
2.40 |
|
Net interest margin |
|
4.19 |
|
|
|
4.13 |
|
|
|
4.23 |
|
|
|
4.33 |
|
|
|
4.49 |
|
1Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP. |
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) |
|||||||||||||||||||
|
Quarter ended |
||||||||||||||||||
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
||||||||||
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs |
$ |
605 |
|
|
$ |
5,864 |
|
|
$ |
28,479 |
|
|
$ |
6,856 |
|
|
$ |
2,973 |
|
Nonperforming loans |
|
39,384 |
|
|
|
35,642 |
|
|
|
43,728 |
|
|
|
48,932 |
|
|
|
16,112 |
|
Classified assets |
|
169,822 |
|
|
|
185,150 |
|
|
|
185,389 |
|
|
|
184,393 |
|
|
|
108,065 |
|
Nonperforming loans to total loans |
|
0.36 |
% |
|
|
0.32 |
% |
|
|
0.40 |
% |
|
|
0.46 |
% |
|
|
0.15 |
% |
Nonperforming assets to total assets |
|
0.33 |
% |
|
|
0.30 |
% |
|
|
0.34 |
% |
|
|
0.40 |
% |
|
|
0.12 |
% |
Allowance for credit losses to total loans |
|
1.27 |
% |
|
|
1.23 |
% |
|
|
1.24 |
% |
|
|
1.34 |
% |
|
|
1.34 |
% |
Allowance for credit losses to total loans, excluding guaranteed loans |
|
1.38 |
% |
|
|
1.34 |
% |
|
|
1.35 |
% |
|
|
1.47 |
% |
|
|
1.48 |
% |
Allowance for credit losses to nonperforming loans |
|
354.1 |
% |
|
|
380.2 |
% |
|
|
308.2 |
% |
|
|
290.5 |
% |
|
|
877.1 |
% |
Net charge-offs to average loans -annualized |
|
0.02 |
% |
|
|
0.22 |
% |
|
|
1.06 |
% |
|
|
0.26 |
% |
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
WEALTH MANAGEMENT |
|
|
|
|
|
|
|
|
|
||||||||||
Trust assets under management |
$ |
2,367,409 |
|
|
$ |
2,352,902 |
|
|
$ |
2,235,073 |
|
|
$ |
2,129,408 |
|
|
$ |
1,992,563 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SHARE DATA |
|
|
|
|
|
|
|
|
|
||||||||||
Book value per common share |
$ |
45.08 |
|
|
$ |
44.24 |
|
|
$ |
43.94 |
|
|
$ |
41.19 |
|
|
$ |
41.39 |
|
Tangible book value per common share1 |
$ |
35.02 |
|
|
$ |
34.21 |
|
|
$ |
33.85 |
|
|
$ |
31.06 |
|
|
$ |
31.23 |
|
Market value per share |
$ |
40.91 |
|
|
$ |
40.56 |
|
|
$ |
44.65 |
|
|
$ |
37.50 |
|
|
$ |
39.10 |
|
Period end common shares outstanding |
|
37,344 |
|
|
|
37,515 |
|
|
|
37,416 |
|
|
|
37,385 |
|
|
|
37,359 |
|
Average basic common shares |
|
37,485 |
|
|
|
37,490 |
|
|
|
37,421 |
|
|
|
37,405 |
|
|
|
37,347 |
|
Average diluted common shares |
|
37,540 |
|
|
|
37,597 |
|
|
|
37,554 |
|
|
|
37,520 |
|
|
|
37,495 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CAPITAL |
|
|
|
|
|
|
|
|
|
||||||||||
Total risk-based capital to risk-weighted assets2 |
|
14.6 |
% |
|
|
14.3 |
% |
|
|
14.2 |
% |
|
|
14.1 |
% |
|
|
14.1 |
% |
Tier 1 capital to risk-weighted assets2 |
|
13.0 |
% |
|
|
12.8 |
% |
|
|
12.7 |
% |
|
|
12.6 |
% |
|
|
12.5 |
% |
Common equity tier 1 capital to risk-weighted assets2 |
|
11.7 |
% |
|
|
11.4 |
% |
|
|
11.3 |
% |
|
|
11.2 |
% |
|
|
11.1 |
% |
Tangible common equity to tangible assets1 |
|
9.18 |
% |
|
|
9.01 |
% |
|
|
8.96 |
% |
|
|
8.51 |
% |
|
|
8.65 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
1Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP. |
|||||||||||||||||||
2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||||||||
|
Quarter ended |
|
Six months ended |
||||||||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
CORE EFFICIENCY RATIO |
|
|
|
|
|||||||||||||||||||||||
Net interest income (GAAP) |
$ |
140,529 |
|
|
$ |
137,728 |
|
|
$ |
140,732 |
|
|
$ |
141,639 |
|
|
$ |
140,692 |
|
|
$ |
278,257 |
|
|
$ |
280,221 |
|
Tax-equivalent adjustment |
|
2,047 |
|
|
|
2,040 |
|
|
|
1,915 |
|
|
|
2,061 |
|
|
|
2,062 |
|
|
|
4,087 |
|
|
|
4,103 |
|
Noninterest income (GAAP) |
|
15,494 |
|
|
|
12,158 |
|
|
|
25,452 |
|
|
|
12,085 |
|
|
|
14,290 |
|
|
|
27,652 |
|
|
|
31,188 |
|
Less gain on sale of investment securities |
|
— |
|
|
|
— |
|
|
|
220 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
381 |
|
Less gain (loss) on sale of other real estate owned |
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
97 |
|
|
|
(2 |
) |
|
|
187 |
|
Core revenue (non-GAAP) |
|
158,070 |
|
|
|
151,928 |
|
|
|
167,879 |
|
|
|
155,785 |
|
|
|
156,947 |
|
|
|
309,998 |
|
|
|
314,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Noninterest expense (GAAP) |
|
94,017 |
|
|
|
93,501 |
|
|
|
92,603 |
|
|
|
88,644 |
|
|
|
85,956 |
|
|
|
187,518 |
|
|
|
166,939 |
|
Less |
|
— |
|
|
|
625 |
|
|
|
2,412 |
|
|
|
— |
|
|
|
— |
|
|
|
625 |
|
|
|
— |
|
Less core conversion expense |
|
1,250 |
|
|
|
350 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,600 |
|
|
|
— |
|
Less amortization on intangibles |
|
944 |
|
|
|
1,047 |
|
|
|
1,108 |
|
|
|
1,118 |
|
|
|
1,136 |
|
|
|
1,991 |
|
|
|
2,375 |
|
Core noninterest expense (non-GAAP) |
|
91,823 |
|
|
|
91,479 |
|
|
|
89,083 |
|
|
|
87,526 |
|
|
|
84,820 |
|
|
|
183,302 |
|
|
|
164,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core efficiency ratio (non-GAAP) |
|
58.09 |
% |
|
|
60.21 |
% |
|
|
53.06 |
% |
|
|
56.18 |
% |
|
|
54.04 |
% |
|
|
59.13 |
% |
|
|
52.25 |
% |
|
Quarter ended |
||||||||||||||||||
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
||||||||||
TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO |
|||||||||||||||||||
Shareholders’ equity (GAAP) |
$ |
1,755,273 |
|
|
$ |
1,731,725 |
|
|
$ |
1,716,068 |
|
|
$ |
1,611,880 |
|
|
$ |
1,618,233 |
|
Less preferred stock |
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
Less goodwill |
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
Less intangible assets |
|
10,327 |
|
|
|
11,271 |
|
|
|
12,318 |
|
|
|
13,425 |
|
|
|
14,544 |
|
Tangible common equity (non-GAAP) |
$ |
1,307,794 |
|
|
$ |
1,283,302 |
|
|
$ |
1,266,598 |
|
|
$ |
1,161,303 |
|
|
$ |
1,166,537 |
|
Less net unrealized losses on HTM securities, after tax |
|
52,220 |
|
|
|
47,822 |
|
|
|
41,038 |
|
|
|
81,367 |
|
|
|
53,611 |
|
Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP) |
$ |
1,255,574 |
|
|
$ |
1,235,480 |
|
|
$ |
1,225,560 |
|
|
$ |
1,079,936 |
|
|
$ |
1,112,926 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shares outstanding |
|
37,344 |
|
|
|
37,515 |
|
|
|
37,416 |
|
|
|
37,385 |
|
|
|
37,359 |
|
Tangible book value per share (non-GAAP) |
$ |
35.02 |
|
|
$ |
34.21 |
|
|
$ |
33.85 |
|
|
$ |
31.06 |
|
|
$ |
31.23 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets (GAAP) |
$ |
14,615,666 |
|
|
$ |
14,613,338 |
|
|
$ |
14,518,590 |
|
|
$ |
14,025,042 |
|
|
$ |
13,871,154 |
|
Less goodwill |
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
Less intangible assets |
|
10,327 |
|
|
|
11,271 |
|
|
|
12,318 |
|
|
|
13,425 |
|
|
|
14,544 |
|
Tangible assets (non-GAAP) |
$ |
14,240,175 |
|
|
$ |
14,236,903 |
|
|
$ |
14,141,108 |
|
|
$ |
13,646,453 |
|
|
$ |
13,491,446 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity to tangible assets (non-GAAP) |
|
9.18 |
% |
|
|
9.01 |
% |
|
|
8.96 |
% |
|
|
8.51 |
% |
|
|
8.65 |
% |
Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP) |
|
8.82 |
% |
|
|
8.68 |
% |
|
|
8.67 |
% |
|
|
7.91 |
% |
|
|
8.25 |
% |
|
Quarter Ended |
|
Six months ended |
||||||||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE) |
|
|
|
|
|||||||||||||||||||||||
Average shareholder’s equity (GAAP) |
$ |
1,748,240 |
|
|
$ |
1,738,698 |
|
|
$ |
1,652,882 |
|
|
$ |
1,648,605 |
|
|
$ |
1,621,337 |
|
|
$ |
1,743,469 |
|
|
$ |
1,595,040 |
|
Less average preferred stock |
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
|
|
71,988 |
|
Less average goodwill |
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
|
|
365,164 |
|
Less average intangible assets |
|
10,783 |
|
|
|
11,770 |
|
|
|
12,858 |
|
|
|
13,967 |
|
|
|
15,094 |
|
|
|
11,277 |
|
|
|
15,667 |
|
Average tangible common equity (non-GAAP) |
$ |
1,300,305 |
|
|
$ |
1,289,776 |
|
|
$ |
1,202,872 |
|
|
$ |
1,197,486 |
|
|
$ |
1,169,091 |
|
|
$ |
1,295,040 |
|
|
$ |
1,142,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income available to common shareholders (GAAP) |
$ |
44,509 |
|
|
$ |
39,463 |
|
|
$ |
43,592 |
|
|
$ |
43,727 |
|
|
$ |
48,190 |
|
|
$ |
83,972 |
|
|
$ |
102,990 |
|
|
|
— |
|
|
|
470 |
|
|
|
1,814 |
|
|
|
— |
|
|
|
— |
|
|
|
470 |
|
|
|
— |
|
Core conversion expense (after tax) |
|
940 |
|
|
|
263 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,203 |
|
|
|
— |
|
Net income available to common shareholders adjusted (non-GAAP) |
$ |
45,449 |
|
|
$ |
40,196 |
|
|
$ |
45,406 |
|
|
$ |
43,727 |
|
|
$ |
48,190 |
|
|
$ |
85,645 |
|
|
$ |
102,990 |
|
Return on average common equity (non-GAAP) |
|
10.68 |
% |
|
|
9.52 |
% |
|
|
10.94 |
% |
|
|
11.00 |
% |
|
|
12.48 |
% |
|
|
10.10 |
% |
|
|
13.64 |
% |
Adjusted return on average common equity (non-GAAP) |
|
10.90 |
% |
|
|
9.70 |
% |
|
|
11.40 |
% |
|
|
11.00 |
% |
|
|
12.48 |
% |
|
|
10.30 |
% |
|
|
13.64 |
% |
ROATCE (non-GAAP) |
|
13.77 |
% |
|
|
12.31 |
% |
|
|
14.38 |
% |
|
|
14.49 |
% |
|
|
16.53 |
% |
|
|
13.04 |
% |
|
|
18.18 |
% |
Adjusted ROATCE (non-GAAP) |
|
14.06 |
% |
|
|
12.53 |
% |
|
|
14.98 |
% |
|
|
14.49 |
% |
|
|
16.53 |
% |
|
|
13.30 |
% |
|
|
18.18 |
% |
|
Quarter ended |
||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
||||||
CALCULATION OF PRE-PROVISION NET REVENUE (PPNR) |
|||||||||||||||
Net interest income |
$ |
140,529 |
|
$ |
137,728 |
|
|
$ |
140,732 |
|
$ |
141,639 |
|
$ |
140,692 |
Noninterest income |
|
15,494 |
|
|
12,158 |
|
|
|
25,452 |
|
|
12,085 |
|
|
14,290 |
|
|
— |
|
|
625 |
|
|
|
2,412 |
|
|
— |
|
|
— |
Core conversion expense |
|
1,250 |
|
|
350 |
|
|
|
— |
|
|
— |
|
|
— |
Less gain on sale of investment securities |
|
— |
|
|
— |
|
|
|
220 |
|
|
— |
|
|
— |
Less gain (loss) on sale of other real estate owned |
|
— |
|
|
(2 |
) |
|
|
— |
|
|
— |
|
|
97 |
Less noninterest expense |
|
94,017 |
|
|
93,501 |
|
|
|
92,603 |
|
|
88,644 |
|
|
85,956 |
PPNR (non-GAAP) |
$ |
63,256 |
|
$ |
57,362 |
|
|
$ |
75,773 |
|
$ |
65,080 |
|
$ |
68,929 |
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
||||||
($ in thousands) |
|
|
|
||||
CALCULATION OF ESTIMATED INSURED DEPOSITS |
|
|
|
||||
Estimated uninsured deposits per Call Report |
$ |
4,020,979 |
|
|
$ |
4,062,505 |
|
Collateralized/affiliate deposits |
|
(454,084 |
) |
|
|
(515,439 |
) |
Accrued interest on deposits |
|
(5,632 |
) |
|
|
(5,542 |
) |
Adjusted uninsured/uncollateralized deposits |
|
3,561,263 |
|
|
|
3,541,524 |
|
Estimated insured/collateralized deposits |
|
8,721,120 |
|
|
|
8,712,177 |
|
Total deposits |
$ |
12,282,383 |
|
|
$ |
12,253,701 |
|
|
Quarter ended |
|
Six months ended |
||||||||||||||||||||||||
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
RETURN ON AVERAGE ASSETS AND DILUTED EARNINGS PER SHARE |
|
|
|
|
|||||||||||||||||||||||
Net income (GAAP) |
$ |
45,446 |
|
|
$ |
40,401 |
|
|
$ |
44,529 |
|
|
$ |
44,665 |
|
|
$ |
49,127 |
|
|
$ |
85,847 |
|
|
$ |
104,865 |
|
|
|
— |
|
|
|
470 |
|
|
|
1,814 |
|
|
|
— |
|
|
|
— |
|
|
|
470 |
|
|
|
— |
|
Core conversion expense (after tax) |
|
940 |
|
|
|
263 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,203 |
|
|
|
— |
|
Net income adjusted (non-GAAP) |
$ |
46,386 |
|
|
$ |
41,134 |
|
|
$ |
46,343 |
|
|
$ |
44,665 |
|
|
$ |
49,127 |
|
|
$ |
87,520 |
|
|
$ |
104,865 |
|
Less preferred stock dividends |
|
937 |
|
|
|
938 |
|
|
|
937 |
|
|
|
938 |
|
|
|
937 |
|
|
|
1,875 |
|
|
|
1,875 |
|
Net income available to common shareholders adjusted (non-GAAP) |
$ |
45,449 |
|
|
$ |
40,196 |
|
|
$ |
45,406 |
|
|
$ |
43,727 |
|
|
$ |
48,190 |
|
|
$ |
85,645 |
|
|
$ |
102,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average assets |
$ |
14,646,381 |
|
|
$ |
14,556,119 |
|
|
$ |
14,332,804 |
|
|
$ |
14,068,860 |
|
|
$ |
13,671,985 |
|
|
$ |
14,601,250 |
|
|
$ |
13,403,084 |
|
Return on average assets (GAAP) |
|
1.25 |
% |
|
|
1.12 |
% |
|
|
1.23 |
% |
|
|
1.26 |
% |
|
|
1.44 |
% |
|
|
1.18 |
% |
|
|
1.58 |
% |
Adjusted return on average assets (non-GAAP) |
|
1.27 |
% |
|
|
1.14 |
% |
|
|
1.28 |
% |
|
|
1.26 |
% |
|
|
1.44 |
% |
|
|
1.21 |
% |
|
|
1.58 |
% |
Average diluted common shares |
|
37,540 |
|
|
|
37,597 |
|
|
|
37,554 |
|
|
|
37,520 |
|
|
|
37,495 |
|
|
|
37,564 |
|
|
|
37,511 |
|
Adjusted diluted earnings per share (non-GAAP) |
$ |
1.21 |
|
|
$ |
1.07 |
|
|
$ |
1.21 |
|
|
$ |
1.17 |
|
|
$ |
1.29 |
|
|
$ |
2.28 |
|
|
$ |
2.75 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240722273829/en/
Investor Relations:
Media:
Source: