Cadence Bancorporation Reports Fourth Quarter 2017 Results and Initiates a Quarterly Dividend
HOUSTON, TEXAS (January 24, 2018) – Cadence Bancorporation (NYSE:CADE) (“Cadence”) today announced net income for the quarter ended December 31, 2017 of $14.7 million, or $0.17 per diluted common share (“per share”), compared to $32.6 million, or $0.39 per share, in the third quarter of 2017, and $29.0 million, or $0.38 per share, in the fourth quarter of 2016. The fourth quarter of 2017 includes a one-time charge of $19.0 million, or $0.22 per share, recorded in income tax expense (the “one-time tax charge”) related to the enactment of the Tax Cuts and Jobs Act in December 2017 (“Tax Reform”) requiring a re-measurement of our deferred tax assets arising from a lower corporate tax rate.
Highlights:
· Fourth quarter of 2017 net income was $14.7 million. Excluding the one-time tax charge, after-tax
earnings for the fourth quarter of 2017 were $33.7(1) million,
representing an increase of $1.1 million, or 3.4%, as compared to the third
quarter of 2017, and an increase of $4.7 million, or 16.2%, compared to fourth
quarter of 2016.
o On a per-share basis, net income was $0.17 per share for the fourth
quarter of 2017. Excluding the one-time
tax charge, after-tax earnings per share for the fourth quarter of 2017 was
$0.39(1), the same as the third quarter of 2017 and up $0.01 from
the fourth quarter of 2016. The
year-over-year per share comparison was impacted by the issuance of 8.625
million shares in our initial public offering in April 2017.
o Annualized returns on average assets, common equity and tangible
common equity(1) for the fourth quarter of 2017 were 0.55%, 4.32%
and 5.71%, respectively. Annualized
returns on average assets, common equity and tangible common equity(1)
excluding the one-time tax charge for the fourth quarter of 2017 were 1.26%,
9.92% and 13.11%, respectively, as compared to 1.29%, 9.78% and 13.04%,
respectively, for the third quarter of 2017.
· Net income for the year ended December 31, 2017 was $102.4 million,
compared to the prior year net income of $65.8 million. Excluding the one-time tax charge, after-tax
earnings for the year ended December 31, 2017 were $121.4(1)
million, an increase of $55.6 million, or 84.5%, compared to the year ended December
31, 2016.
o Net income was $1.25 per share for the year ended December 31,
2017, compared to $0.87 per share in the prior year. Excluding the one-time tax charge, after-tax
earnings per share for the year ended December 31, 2017 was $1.48(1)
per share, an increase of $0.61 per share or 71% as compared to the year ended
December 31, 2016.
o Returns on average assets, common equity and tangible common equity(1)
for the year ended December 31, 2017 were 1.02%, 8.16% and 11.08%,
respectively. Returns on average assets,
common equity and tangible common equity(1) excluding the one-time
tax charge were 1.21%, 9.68% and 13.14%, respectively, as compared to 0.71%,
6.01% and 8.68%, respectively, for the prior year.
· Total revenue for
the fourth quarter of 2017 was $113.6 million, up 4.9% from the linked quarter
and up 19.7% from the same period in 2016.
On a full year basis, 2017 revenues of $426.1 million represented an
increase of $58.2 million, or 15.8%, as compared to the prior year.
(1) Considered a non-GAAP
financial measure. See Table 7
“Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our
non-GAAP measures to the most directly comparable GAAP financial measure.
·
Total assets were $10.9 billion as of December 31, 2017, an increase
of $1.4 billion, or 14.9%, as compared to $9.5 billion as of December 31, 2016.
·
Loans were $8.3 billion as of December 31, 2017, an increase of
$820.7 million, or 11.0%, as compared to $7.4 billion at December 31, 2016.
·
Core deposits (total deposits excluding brokered) were $8.2 billion
as of December 31, 2017 grew $1.2 billion, or 17.8%, from December 31,
2016.
“We are pleased with our core operating performance for the quarter, as our business growth continued to reflect the strong momentum we experienced throughout 2017,” said Paul B. Murphy, Jr., Cadence’s Chairman and Chief Executive Officer. “Revenue growth for the quarter was solid, driven by strong loan and core deposit growth, and stable margins. I am very pleased with our credit results during 2017, and particularly during the fourth quarter as we continued the trend of reduced nonperforming assets. Lower nonperforming assets (“NPAs”), low charge-offs and a stabilized energy environment all supported a net recovery of loan provision for the quarter. 2017 was a big year for Cadence as we became a public company, crossed the $10 billion asset threshold and achieved record financial performance. As a next step, we are very pleased to announce the initiation of a quarterly cash dividend in the amount of $0.125 per share to our common shareholders, representing an annualized dividend of $0.50 per share. I am proud of our employees who work hard for our customers every day, and we believe those efforts show through in our results and in returns for our shareholders.”
Period End Balance Sheet:
Cadence continued its strong growth during the quarter with total assets reaching $10.9 billion as of December 31, 2017, an increase of $446.7 million, or 4.3%, from September 30, 2017, and an increase of $1.4 billion, or 14.9%, from December 31, 2016.
Loans at December 31, 2017 were $8.3 billion, an increase of $224.5 million, or 2.8%, from September 30, 2017, and an increase of $820.7 million, or 11.0%, from December 31, 2016.
- Increases in loans reflect organic growth primarily in our specialized, general C&I and residential portfolios.
- Energy lending remained a consistent portion of total loans, with
balances totaling $935.4 million, or 11.3%, of total loans at December 31,
2017, and continued to reflect improved credit results.
Total deposits at December 31, 2017 were $9.0 billion, an increase of $510.4
million, or 6.0%, from September 30, 2017, and an increase of $994.8 million,
or 12.4%, from December 31, 2016.
- Deposit increases reflect growth in core deposits, with a key focus
on expansion of commercial deposit relationships and treasury management
services. The core deposit growth
supported a $245.1 million reduction in brokered deposits during the year.
- As of December 31, 2017, brokered deposits totaled $0.8 billion, or
8.8% of total deposits, down from 9.7% and 13.0% of total deposits at September
30, 2017 and December 31, 2016, respectively.
- Noninterest bearing deposits as a percent of total deposits
increased to 24.9%, up from 24.4% at September 30, 2017 and 23.0% at December
31, 2016.
Shareholders’ equity was $1.4 billion at December 31, 2017, an increase of $18.2
million from September 30, 2017, and an increase of $278.6 million from
December 31, 2016.
- The increase in shareholders’ equity includes $155.7 million in net
proceeds from our April 2017 initial public offering that was added to tangible
common equity during
the second quarter of 2017. This
offering resulted in increasing average diluted shares to 84.7 million for the
fourth quarter of 2017, as compared to 75.4 million and 84.0 million in the
fourth quarter of 2016 and third quarter of 2017, respectively.
- In November 2017, Cadence completed a secondary offering whereby
its controlling stockholder, Cadence Bancorp, LLC, sold 10,925,000 Cadence
Bancorporation shares, reducing its ownership in Cadence to 76.6%. All proceeds from this transaction were
received by Cadence Bancorp, LLC and did not impact Cadence Bancorporation’s
equity or outstanding shares.
Asset Quality:
Credit quality metrics reflected meaningful improvement during the fourth quarter
of 2017 due to continued improvements of energy credits combined with general
credit stability in the remaining loan portfolio.
- NPAs totaled $70.7 million, or 0.9%, of total
loans, OREO and other NPAs as of December 31, 2017, down from $121.8 million,
or 1.5%, as of September 30, 2017, and down from $166.2 million, or 2.2%, as of
December 31, 2016.
- The decline in NPAs are due primarily to
continued improvements of energy credits, with energy portfolio NPAs totaling
$58.7 million at December 31, 2017 down from $98.2 million at September 30,
2017.
- Of the $42.8 million in energy
nonperforming loans included in total NPAs as of December 31, 2017, over 75%
were paying in accordance with contractual terms.
The allowance for
credit losses (“ACL”) was $87.6 million, or 1.06% of total loans, as of
December 31, 2017, as compared to $94.8 million, or 1.18% of total loans, as of
September 30, 2017 and $82.3 million, or 1.11% of total loans, as of December 31,
2016.
-
Net-charge offs as a
percent of average loans for the full year amounted to 0.06% in 2017, and an
improvement from 0.65% in 2016.
Net-charge offs were $2.7 million and $4.4 million for the quarter and
year ended December 31, 2017, respectively, as compared to $3.7 million and
$46.9 million for the quarter and year ended December 31, 2016, respectively,
and $173 thousand for the three months ended September 30, 2017.
- The decline in the
ACL during the fourth quarter of 2017 compared to the prior quarter resulted
primarily from the reduction in non-performing loans and related valuation
reserves (largely from the energy portfolio), improved environmental factors in
the energy sector, and the reversal of approximately $2.0 million in consumer
mortgage reserves recorded in the third quarter of 2017 associated with
Hurricanes Harvey and Irma.
- At December 31, 2017, the ACL included reserves for the energy portfolio of 1.8%, down from 2.5% as of September 30, 2017 and 2.6% as of December 31, 2016.
- Loan provisions
(reversals) for the fourth quarter of 2017 were $(4.5) million as compared to
$(5.2) million in the prior year quarter and $1.7 million in the third quarter
of 2017.
Total Revenue:
Total revenue for the fourth quarter of 2017 was $113.6 million, up
4.9% from the linked quarter and up 19.7% from the same period in 2016. On a full year basis, 2017 revenues of $426
million increased $58.2 million or 15.8%.
The revenue increases were primarily a result of both strong loan growth
during the period and meaningful increases in net interest margins.
Net interest income for the fourth quarter of 2017 was $87.9 million an increase of $6.7
million, or 8.3%, from the third quarter of 2017 and an increase of $15.4 million,
or 21.3%, from the same period 2016.
- Our fully
tax-equivalent net interest margin (“NIM”) for the fourth quarter of 2017 was
3.59% as compared to 3.52% for the third quarter of 2017 and 3.31% for the
fourth quarter of 2016. The
year-over-year increase in NIM is primarily a result of our asset sensitive
balance sheet and earning asset yields increasing more significantly than our
funding costs in the recent rising rate environment. The linked quarter increase in NIM was due to
timing of recovery accretion on acquired-impaired loans.
- Earning asset yields
for the fourth quarter of 2017 were 4.41%, up 11 basis points from 4.30% in the
third quarter of 2017, and up 45 basis points from 3.96% in the fourth quarter
of 2016, driven by increases in loan yields.
o Approximately 70% of
our loan portfolio is floating rate and has benefited from the short-term rate
increases during the periods.
o Yield on loans,
excluding acquired-impaired loans, was 4.47%, 4.41% and 4.03% for the fourth
quarter of 2017, third quarter of 2017 and fourth quarter of 2016,
respectively.
o Total accretion for
acquired-impaired loans was $8.1 million in the fourth quarter of 2017, up $2.3
million from the third quarter of 2017 and up $0.3 million from the fourth
quarter of 2016.
o Total loan yields
increased to 4.72% for the fourth quarter of 2017 versus 4.55% for the third
quarter of 2017 and 4.26% for the fourth quarter of 2016.
- Total cost of
deposits for the fourth quarter of 2017 was 69 basis points versus 64 basis
points in the linked quarter and 47 basis points in the fourth quarter of
2016.
- Total cost of funds
for the fourth quarter of 2017 was 89 basis points versus 84 basis points in
the linked quarter and 69 basis points in the fourth quarter of 2016.
o Increases in funding costs reflect the increases in short term rates, partially offset by improvements in the funding mix, including declines in interest sensitive brokered deposits and increases in noninterest bearing deposits.
Noninterest income for the fourth quarter of 2017 was $25.7 million, a decrease of
$1.5 million, or 5.4%, from the third quarter of 2017, and an increase of $3.3
million, or 14.7%, from the same period of 2016.
- Total service fees
and revenue for the fourth quarter of 2017 was $22.4 million, a decrease of
$0.6 million from the third quarter of 2017, and an increase of $1.8 million
from the same period of 2016. The
changes were driven primarily by:
o Assets Under
Management increasing to $5.6 billion as of December 31, 2017, an increase of
$51.4 million from September 30, 2017 and $266.2 million from December 31,
2016.
o Insurance revenue
declines of $0.5 million linked quarter due to the sale of the assets of a
specialty insurance unit in the third quarter of 2017.
o Mortgage banking
revenue declines of $0.3 million from the third quarter
of 2017 due to both seasonality and more mortgages being held on the
balance sheet versus sold.
- Total other
noninterest income for the fourth quarter of 2017 was $3.3 million, a decrease
of $0.9 million from the third quarter of 2017, and an increase of $1.5 million
from the same period of 2016.
-
Significant
non-routine items included in other noninterest income during comparable
periods include:
o Securities gains
(losses) - $16 thousand gains in the fourth quarter of 2017 and $1.3 million
gains in the fourth quarter of 2016;
o Gain (loss) on sale
of commercial loans - $1.6 million gain in the fourth quarter of 2017 and
($0.5) million loss in the fourth quarter of 2016, both related to credit
resolutions;
o Gain on sale of
assets of a specialty insurance unit - $1.1 million in the third quarter of
2017;
o Earnings from Limited Partnerships primarily due to changes in equity valuation – $0.7 million in the fourth quarter of 2017, $1.5 million in the third quarter of 2017 and a loss of ($0.2) million in the fourth quarter of 2016.
Noninterest
Expenses:
Noninterest expense
for the fourth quarter of 2017 was $66.4 million, an increase of $9.8 million
from $56.5 million for the third quarter of 2017, and an increase of $11.0 million
from $55.4 million during the same period in 2016. Increases in the fourth quarter of 2017
included non-routine expenses related to legacy bank pre-acquisition legal
costs, secondary offering costs, consulting, and other notable expenses
detailed below:
- Salaries and
employee benefits expense included an increase in incentives of $0.7 million
from the third quarter of 2017 and an increase of $5.0 million from the fourth
quarter of 2016 driven by improved operating performance of the bank and
company valuation.
- Other real estate
(“ORE”) costs for the fourth quarter of 2017 included $0.6 million in ORE
writedowns and another $0.4 million in ORE losses on sales, as we reduced our
ORE by $11.2 million during the quarter to $7.6 million at December 31, 2017.
- Data processing
expense for the fourth quarter of 2017 included $0.5 million in costs
associated with a trust system upgrade and conversion.
- Consulting and
professional fees in the fourth quarter of 2017 included $1.2 million in
expenses specific to the November 2017 secondary offering, and $0.8 million in
non-routine tax consulting costs.
- Legal expense for
the fourth quarter of 2017 included $2.0 million in legal costs associated with
certain pre-acquisition related litigation and contingencies related to a
legacy acquired bank.
- Other expenses for
the fourth quarter of 2017 included $0.8 million in unfunded commitments
provision driven by loan growth, $0.6 million related to technology licensing
updates, as well as other seasonal variances in expenses.
Noninterest expense
for the year ended December 31, 2017 was $233.4 million as compared to $220.2
million during the same period of 2016, an increase of $13.2 million, or
6.0%.
The efficiency ratio(1) for the fourth
quarter of 2017 was 58.44%, as compared to the fourth quarter of 2016 and third
quarter of 2017 ratios of 58.40% and 52.20%, respectively. The efficiency ratio for the year ended
December 31, 2017 was 54.77%, compared to 59.86% in the prior year, reflecting
ongoing focus on managing expense and expanding revenue. Total 2017 revenues increased $58.2 million
or 15.8% over 2016, while total 2017 expenses increased $13.2 million or 6.0%
over 2016.
Taxes:
The effective tax rate for the quarter ended December 31, 2017 was
71.6% as compared to 34.9% in the third quarter of 2017 and 35.1% in the fourth
quarter of 2016. Excluding the effects
of Tax Reform, our effective tax rate for the quarter and year ended December
31, 2017 was 34.8%(1) and 33.7%(1), respectively. Considering the effects of Tax Reform, we
estimate our effective tax rate will range between 21% to 22% in 2018.
(1) Considered a non-GAAP financial measure. See Table 7 “Reconciliation of Non-GAAP
Financial Measures” for a reconciliation of our non-GAAP measures to the most
directly comparable GAAP financial measure.
Quarterly Dividend:
On January 24, 2018,
the Board of Directors of Cadence declared a quarterly cash dividend in the
amount of $0.125 per share of common stock, representing an annualized dividend
of $0.50 per share. The dividend will be
paid on March 20, 2018 to holders of record of the Class A common stock on
March 1, 2018.
Supplementary Financial Tables (Unaudited):
Supplementary
Financial Tables (Unaudited) are included in this release following the
customary disclosure information.
Fourth Quarter 2017 Earnings Conference Call:
Cadence
Bancorporation executive management will host a conference call to discuss
fourth quarter 2017 results on Thursday, January 25, 2018, at 10:00 a.m. CT /
11:00 a.m. ET. Slides to be presented by
management on the conference call can be viewed by visiting www.cadencebancorporation.com and selecting “Events & Presentations” then “Event Calendar”.
Conference Call Access:
To access the
conference call, please dial one of the following numbers approximately 10-15
minutes prior to the start time to allow time for registration, and use the
Elite Entry Number provided below.
|
Dial in (toll free): |
1-888-317-6003 |
|
International dial in: |
1-412-317-6061 |
|
Canada (toll free): |
1-866-284-3684 |
|
Participant Elite Entry Number: |
0853440 |
For those unable to
participate in the live presentation, a replay will be available through
February 8, 2018. To access the replay,
please use the following numbers:
|
US Toll Free: |
1-877-344-7529 |
|
International Toll: |
1-412-317-0088 |
|
Canada Toll Free: |
1-855-669-9658 |
|
Replay Access Code: |
10115434 |
|
End Date: |
February 8, 2018 |
Webcast Access:
A webcast of the
conference call as well as the slides to be presented by management can be
viewed by visiting www.cadencebancorporation.com and selecting “Events & Presentations” then “Event Calendar”.
About Cadence Bancorporation
Cadence
Bancorporation (NYSE:CADE) is an $11 billion in assets regional bank holding
company headquartered in Houston, Texas. Through its affiliates, Cadence
operates 65 locations in Alabama, Florida, Texas, Mississippi and Tennessee,
and provides corporations, middle-market companies, small businesses and
consumers with a full range of innovative banking and financial solutions.
Services and products include commercial and business banking, treasury
management, specialized lending, commercial real estate, foreign exchange, wealth
management, investment and trust services, financial planning, retirement plan
management, business and personal insurance, consumer banking, consumer loans,
mortgages, home equity lines and loans, and credit cards. Clients have access
to leading-edge online and mobile solutions, interactive teller machines, and
56,000 ATMs. The Cadence team of 1,200 associates is committed to exceeding
customer expectations and helping their clients succeed financially. Cadence
Bank, N.A., Cadence Insurance, and Linscomb & Williams are direct or
indirect subsidiaries of Cadence Bancorporation.
Cautionary Statement Regarding Forward-Looking Information
This communication
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
reflect our current views with respect to, among other things, future events
and our results of operations, financial condition and financial performance.
These statements are often, but not always, made through the use of words or
phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,”
“will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,”
“estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the
negative version of those words or other comparable words of a future or
forward-looking nature. These forward-looking statements are not historical
facts, and are based on current expectations, estimates and projections about
our industry, management’s beliefs and certain assumptions made by management,
many of which, by their nature, are inherently uncertain and beyond our
control. Accordingly, we caution you that any such forward-looking statements
are not guarantees of future performance and are subject to risks, assumptions
and uncertainties that are difficult to predict. Although we believe that the
expectations reflected in these forward-looking statements are reasonable as of
the date made, actual results may prove to be materially different from the
results expressed or implied by the forward-looking statements. Such factors include, without limitation, the
“Risk Factors” referenced in our Registration Statement on Form S-1 filed with
the Securities and Exchange Commission (SEC), other risks and uncertainties listed
from time to time in our reports and documents filed with the SEC, including
our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, and the
following factors: business and economic conditions generally and in the
financial services industry, nationally and within our current and future
geographic market areas; economic, market, operational, liquidity, credit and
interest rate risks associated with our business; lack of seasoning in our loan
portfolio; deteriorating asset quality and higher loan charge-offs; the laws
and regulations applicable to our business; our ability to achieve organic loan
and deposit growth and the composition of such growth; increased competition in
the financial services industry, nationally, regionally or locally; our ability
to maintain our historical earnings trends; our ability to raise additional
capital to implement our business plan; material weaknesses in our internal
control over financial reporting; systems failures or interruptions involving
our information technology and telecommunications systems or third-party
servicers; the composition of our management team and our ability to attract
and retain key personnel; the fiscal position of the U.S. federal government
and the soundness of other financial institutions; the composition of our loan
portfolio, including the identify of our borrowers and the concentration of
loans in energy-related industries and in our specialized industries; the
portion of our loan portfolio that is comprised of participations and shared
national credits; and the amount of nonperforming and classified assets we
hold. Cadence can give no assurance that any goal or plan or expectation set
forth in forward-looking statements can be achieved and readers are cautioned
not to place undue reliance on such statements. The forward-looking statements
are made as of the date of this communication, and Cadence does not intend, and
assumes no obligation, to update any forward-looking statement to reflect
events or circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events or circumstances, except as
required by applicable law.
About Non-GAAP Financial Measures
Certain of the
financial measures and ratios we present, including “efficiency ratio,”
“adjusted noninterest expenses,” “adjusted operating revenue,” “tangible common
equity ratio,” “tangible book value per share” and “return on average tangible
common equity” and “pre-tax, pre-provision net earnings,” are supplemental
measures that are not required by, or are not presented in accordance with,
U.S. generally accepted accounting principles (GAAP). We refer to these
financial measures and ratios as “non-GAAP financial measures.” We consider the
use of select non-GAAP financial measures and ratios to be useful for financial
and operational decision making and useful in evaluating period-to-period
comparisons. We believe that these non-GAAP financial measures provide
meaningful supplemental information regarding our performance by excluding certain
expenditures or assets that we believe are not indicative of our primary
business operating results or by presenting certain metrics on a fully taxable
equivalent basis. We believe that management and investors benefit from
referring to these non-GAAP financial measures in assessing our performance and
when planning, forecasting, analyzing and comparing past, present and future
periods.
These non-GAAP
financial measures should not be considered a substitute for financial
information presented in accordance with GAAP and you should not rely on
non-GAAP financial measures alone as measures of our performance. The non-GAAP
financial measures we present may differ from non-GAAP financial measures used
by our peers or other companies. We compensate for these limitations by
providing the equivalent GAAP measures whenever we present the non-GAAP
financial measures and by including a reconciliation of the impact of the
components adjusted for in the non-GAAP financial measure so that both measures
and the individual components may be considered when analyzing our
performance. A reconciliation of
non-GAAP financial measures to the comparable GAAP financial measures is
included at the end of the financial statement tables (Table 7).
###
Contact Information
Media contact:
Danielle Kernell
713-871-4051
Investor relations
contact:
Valerie Toalson
713-871-4103 or
800-698-7878
Table 1 - Selected
Financial Data
|
|
|
As of and for the Three
Months Ended |
|
|
For the Year Ended
December 31, |
|
||||||||||||||||||||||
|
(In thousands, except per share data) |
|
December 31, 2017 |
|
|
September 30, 2017 |
|
|
June 30, 2017 |
|
|
March 31, 2017 |
|
|
December 31, 2016 |
|
|
2017 |
|
|
2016 |
|
|||||||
|
Statement of Operations Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
108,370 |
|
|
$ |
99,503 |
|
|
$ |
99,375 |
|
|
$ |
89,619 |
|
|
$ |
87,068 |
|
|
$ |
396,867 |
|
|
$ |
335,250 |
|
|
Interest expense |
|
|
20,459 |
|
|
|
18,340 |
|
|
|
16,991 |
|
|
|
14,861 |
|
|
|
14,570 |
|
|
|
70,651 |
|
|
|
55,811 |
|
|
Net interest income |
|
|
87,911 |
|
|
|
81,163 |
|
|
|
82,384 |
|
|
|
74,758 |
|
|
|
72,498 |
|
|
|
326,216 |
|
|
|
279,439 |
|
|
Provision for credit losses |
|
|
(4,475 |
) |
|
|
1,723 |
|
|
|
6,701 |
|
|
|
5,786 |
|
|
|
(5,222 |
) |
|
|
9,735 |
|
|
|
49,348 |
|
|
Net interest income after provision |
|
|
92,386 |
|
|
|
79,440 |
|
|
|
75,683 |
|
|
|
68,972 |
|
|
|
77,720 |
|
|
|
316,481 |
|
|
|
230,091 |
|
|
Noninterest income - service fees and revenue |
|
|
22,405 |
|
|
|
23,014 |
|
|
|
22,144 |
|
|
|
22,489 |
|
|
|
20,605 |
|
|
|
90,052 |
|
|
|
81,976 |
|
|
- other noninterest
income |
|
|
3,251 |
|
|
|
4,110 |
|
|
|
845 |
|
|
|
1,616 |
|
|
|
1,755 |
|
|
|
9,822 |
|
|
|
6,427 |
|
|
Noninterest expense |
|
|
66,371 |
|
|
|
56,530 |
|
|
|
56,134 |
|
|
|
54,321 |
|
|
|
55,394 |
|
|
|
233,356 |
|
|
|
220,180 |
|
|
Income before income taxes |
|
|
51,671 |
|
|
|
50,034 |
|
|
|
42,538 |
|
|
|
38,756 |
|
|
|
44,686 |
|
|
|
182,999 |
|
|
|
98,314 |
|
|
Income tax expense |
|
|
36,980 |
|
|
|
17,457 |
|
|
|
13,570 |
|
|
|
12,639 |
|
|
|
15,701 |
|
|
|
80,646 |
|
|
|
32,540 |
|
|
Net income |
|
$ |
14,691 |
|
|
$ |
32,577 |
|
|
$ |
28,968 |
|
|
$ |
26,117 |
|
|
$ |
28,985 |
|
|
$ |
102,353 |
|
|
$ |
65,774 |
|
|
Period-End Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities,
available-for-sale |
|
$ |
1,262,948 |
|
|
$ |
1,198,032 |
|
|
$ |
1,079,935 |
|
|
$ |
1,116,280 |
|
|
$ |
1,139,347 |
|
|
$ |
1,262,948 |
|
|
$ |
1,139,347 |
|
|
Total loans, net of unearned
income |
|
|
8,253,427 |
|
|
|
8,028,938 |
|
|
|
7,716,621 |
|
|
|
7,561,472 |
|
|
|
7,432,711 |
|
|
|
8,253,427 |
|
|
|
7,432,711 |
|
|
Allowance for credit losses |
|
|
87,576 |
|
|
|
94,765 |
|
|
|
93,215 |
|
|
|
88,304 |
|
|
|
82,268 |
|
|
|
87,576 |
|
|
|
82,268 |
|
|
Total assets |
|
|
10,948,926 |
|
|
|
10,502,261 |
|
|
|
9,811,557 |
|
|
|
9,720,937 |
|
|
|
9,530,888 |
|
|
|
10,948,926 |
|
|
|
9,530,888 |
|
|
Total deposits |
|
|
9,011,515 |
|
|
|
8,501,102 |
|
|
|
7,930,383 |
|
|
|
7,841,710 |
|
|
|
8,016,749 |
|
|
|
9,011,515 |
|
|
|
8,016,749 |
|
|
Noninterest-bearing deposits |
|
|
2,242,765 |
|
|
|
2,071,594 |
|
|
|
1,857,809 |
|
|
|
1,871,514 |
|
|
|
1,840,955 |
|
|
|
2,242,765 |
|
|
|
1,840,955 |
|
|
Interest-bearing deposits |
|
|
6,768,750 |
|
|
|
6,429,508 |
|
|
|
6,072,574 |
|
|
|
5,970,196 |
|
|
|
6,175,794 |
|
|
|
6,768,750 |
|
|
|
6,175,794 |
|
|
Borrowings and subordinated
debentures |
|
|
470,814 |
|
|
|
572,683 |
|
|
|
499,266 |
|
|
|
682,568 |
|
|
|
331,712 |
|
|
|
470,814 |
|
|
|
331,712 |
|
|
Total shareholders’ equity |
|
|
1,359,056 |
|
|
|
1,340,848 |
|
|
|
1,304,054 |
|
|
|
1,105,976 |
|
|
|
1,080,498 |
|
|
|
1,359,056 |
|
|
|
1,080,498 |
|
|
Average Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities,
available-for-sale |
|
$ |
1,228,330 |
|
|
$ |
1,169,182 |
|
|
$ |
1,099,307 |
|
|
$ |
1,125,174 |
|
|
$ |
1,060,821 |
|
|
$ |
1,155,819 |
|
|
$ |
1,001,317 |
|
|
Total loans, net of unearned
income |
|
|
8,226,294 |
|
|
|
7,867,794 |
|
|
|
7,650,048 |
|
|
|
7,551,173 |
|
|
|
7,375,446 |
|
|
|
7,825,763 |
|
|
|
7,186,635 |
|
|
Allowance for credit losses |
|
|
94,968 |
|
|
|
94,706 |
|
|
|
90,366 |
|
|
|
82,258 |
|
|
|
95,042 |
|
|
|
90,621 |
|
|
|
90,264 |
|
|
Total assets |
|
|
10,586,245 |
|
|
|
10,024,871 |
|
|
|
9,786,355 |
|
|
|
9,670,593 |
|
|
|
9,596,574 |
|
|
|
10,020,036 |
|
|
|
9,271,629 |
|
|
Total deposits |
|
|
8,635,473 |
|
|
|
8,139,969 |
|
|
|
7,940,421 |
|
|
|
8,025,068 |
|
|
|
7,925,281 |
|
|
|
8,186,781 |
|
|
|
7,655,302 |
|
|
Noninterest-bearing deposits |
|
|
2,170,758 |
|
|
|
1,982,784 |
|
|
|
1,845,447 |
|
|
|
1,857,657 |
|
|
|
1,784,422 |
|
|
|
1,965,070 |
|
|
|
1,688,405 |
|
|
Interest-bearing deposits |
|
|
6,464,715 |
|
|
|
6,157,185 |
|
|
|
6,094,974 |
|
|
|
6,167,411 |
|
|
|
6,140,859 |
|
|
|
6,221,711 |
|
|
|
5,966,897 |
|
|
Borrowings and subordinated debentures |
|
|
502,428 |
|
|
|
484,798 |
|
|
|
510,373 |
|
|
|
474,976 |
|
|
|
500,045 |
|
|
|
493,196 |
|
|
|
452,685 |
|
|
Total shareholders’ equity |
|
|
1,348,867 |
|
|
|
1,320,884 |
|
|
|
1,251,217 |
|
|
|
1,090,905 |
|
|
|
1,094,182 |
|
|
|
1,253,861 |
|
|
|
1,093,604 |
|
Table
1 (Continued) - Selected Financial Data
|
|
|
As of and for the Three
Months Ended |
|
|
For the Year Ended December 31, |
|
||||||||||||||||||||||
|
(In thousands, except per share data) |
|
December 31, 2017 |
|
|
September 30, 2017 |
|
|
June 30, 2017 |
|
|
March 31, 2017 |
|
|
December 31, 2016 |
|
|
2017 |
|
|
2016 |
|
|||||||
|
Per Share Data:(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.18 |
|
|
$ |
0.39 |
|
|
$ |
0.35 |
|
|
$ |
0.35 |
|
|
$ |
0.39 |
|
|
$ |
1.26 |
|
|
$ |
0.88 |
|
|
Diluted |
|
|
0.17 |
|
|
|
0.39 |
|
|
|
0.35 |
|
|
|
0.35 |
|
|
|
0.38 |
|
|
|
1.25 |
|
|
|
0.87 |
|
|
Book value per common share |
|
|
16.25 |
|
|
|
16.03 |
|
|
|
15.59 |
|
|
|
14.75 |
|
|
|
14.41 |
|
|
|
16.25 |
|
|
|
14.41 |
|
|
Tangible book value (1) |
|
|
12.33 |
|||||||||||||||||||||||||