Exhibit 99.1
CADENCE BANCORPORATION
Unaudited Consolidated Financial Data
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 | |||||||||||||||||||||
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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 | |||||||||||||||||||
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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 | |||||||||||||||||||||
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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 | |||||||||||||||||||||
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Net income | $ | 14,691 | $ | 32,577 | $ | 28,968 | $ | 26,117 | $ | 28,985 | $ | 102,353 | $ | 65,774 | ||||||||||||||
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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 |
1
CADENCE BANCORPORATION
Unaudited Consolidated Financial Data
Selected Financial Data (Continued)
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 | 12.10 | 11.64 | 10.33 | 9.97 | 12.33 | 9.97 | |||||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||||
Basic | 83,625,000 | 83,625,000 | 81,918,956 | 75,000,000 | 75,000,000 | 81,072,945 | 75,000,000 | |||||||||||||||||||||
Diluted | 84,717,005 | 83,955,685 | 81,951,795 | 75,672,750 | 75,402,525 | 81,605,015 | 75,294,600 | |||||||||||||||||||||
Performance Ratios: | ||||||||||||||||||||||||||||
Return on average common equity (2) | 4.32 | % | 9.78 | % | 9.29 | % | 9.71 | % | 10.54 | % | 8.16 | % | 6.01 | % | ||||||||||||||
Return on average tangible common equity (1) (2) | 5.71 | 13.04 | 12.63 | 13.96 | 15.16 | 11.08 | 8.68 | |||||||||||||||||||||
Return on average assets (2) | 0.55 | 1.29 | 1.19 | 1.10 | 1.20 | 1.02 | 0.71 | |||||||||||||||||||||
Net interest margin (2) | 3.59 | 3.52 | 3.71 | 3.46 | 3.31 | 3.57 | 3.30 | |||||||||||||||||||||
Efficiency ratio (1) | 58.44 | 52.20 | 53.27 | 54.95 | 58.40 | 54.77 | 59.86 | |||||||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||
Total nonperforming assets (“NPAs”) to total loans and OREO and other NPAs | 0.85 | % | 1.51 | % | 1.82 | % | 2.25 | % | 2.22 | % | 0.85 | % | 2.22 | % | ||||||||||||||
Total nonperforming loans to total loans | 0.58 | 0.96 | 1.36 | 1.77 | 1.73 | 0.58 | 1.73 | |||||||||||||||||||||
Total ACL to total loans | 1.06 | 1.18 | 1.21 | 1.17 | 1.11 | 1.06 | 1.11 | |||||||||||||||||||||
ACL to total nonperforming loans (“NPLs”) | 183.62 | 122.66 | 88.81 | 65.80 | 63.83 | 183.62 | 63.80 | |||||||||||||||||||||
Net charge-offs to average loans (2) | 0.13 | 0.01 | 0.09 | (0.01 | ) | 0.20 | 0.06 | 0.65 | ||||||||||||||||||||
Capital Ratios: | ||||||||||||||||||||||||||||
Total shareholders’ equity to assets | 12.41 | % | 12.77 | % | 13.29 | % | 11.38 | % | 11.34 | % | 12.41 | % | 11.34 | % | ||||||||||||||
Tangible common equity to tangible assets (1) | 9.71 | 9.95 | 10.27 | 8.25 | 8.13 | 9.71 | 8.13 | |||||||||||||||||||||
Common equity tier 1 (CET1) (transitional) | 10.57 | 10.79 | 10.92 | 8.99 | 8.84 | 10.57 | 8.84 | |||||||||||||||||||||
Tier 1 leverage capital | 10.68 | 11.12 | 11.00 | 9.10 | 8.89 | 10.68 | 8.89 | |||||||||||||||||||||
Tier 1 risk-based capital | 10.94 | 11.17 | 11.31 | 9.36 | 9.19 | 10.94 | 9.19 | |||||||||||||||||||||
Total risk-based capital | 12.81 | 13.18 | 13.41 | 11.43 | 11.22 | 12.81 | 11.22 |
(1) | Considered anon-GAAP financial measure. See Table 7 “Reconciliation ofNon-GAAP Financial Measures” for a reconciliation of ournon-GAAP measures to the most directly comparable GAAP financial measure. |
(2) | Annualized. |
(3) | As of the completion of a secondary offering on November 13, 2017, 64,075,000 of our outstanding shares are owned by our parent-holding company Cadence Bancorp LLC. Cadence Bancorp LLC owned 75,000,000 of our outstanding shares before the secondary offering. |
2
CADENCE BANCORPORATION
Unaudited Consolidated Financial Data
Average Balances/Yield/Rates
For the Three Months Ended December 31, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
(In thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans, net of unearned income(1) | ||||||||||||||||||||||||
Originated and ANCI loans | $ | 7,961,692 | $ | 89,762 | 4.47 | % | $ | 7,037,980 | $ | 71,237 | 4.03 | % | ||||||||||||
ACI portfolio | 264,602 | 8,145 | 12.21 | 337,466 | 7,813 | 9.21 | ||||||||||||||||||
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Total loans | 8,226,294 | 97,907 | 4.72 | 7,375,446 | 79,050 | 4.26 | ||||||||||||||||||
Investment securities | ||||||||||||||||||||||||
Taxable | 817,971 | 5,000 | 2.43 | 676,148 | 3,418 | 2.01 | ||||||||||||||||||
Tax-exempt (2) | 410,359 | 5,047 | 4.88 | 384,673 | 4,814 | 4.98 | ||||||||||||||||||
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Total investment securities | 1,228,330 | 10,047 | 3.25 | 1,060,821 | 8,232 | 3.09 | ||||||||||||||||||
Federal funds sold and short-term investments | 409,317 | 1,151 | 1.12 | 436,665 | 783 | 0.71 | ||||||||||||||||||
Other investments | 51,318 | 1,030 | 7.96 | 48,643 | 688 | 5.63 | ||||||||||||||||||
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Total interest-earning assets | 9,915,259 | 110,135 | 4.41 | 8,921,575 | 88,753 | 3.96 | ||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 66,849 | 44,851 | ||||||||||||||||||||||
Premises and equipment | 64,730 | 67,608 | ||||||||||||||||||||||
Accrued interest and other assets | 634,375 | 657,582 | ||||||||||||||||||||||
Allowance for credit losses | (94,968 | ) | (95,042 | ) | ||||||||||||||||||||
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Total assets | $ | 10,586,245 | $ | 9,596,574 | ||||||||||||||||||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 4,424,371 | $ | 7,844 | 0.70 | % | $ | 4,404,779 | $ | 4,973 | 0.45 | % | ||||||||||||
Savings deposits | 177,413 | 112 | 0.25 | 179,094 | 111 | 0.25 | ||||||||||||||||||
Time deposits | 1,862,931 | 7,129 | 1.52 | 1,556,986 | 4,325 | 1.11 | ||||||||||||||||||
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Total interest-bearing deposits | 6,464,715 | 15,085 | 0.93 | 6,140,859 | 9,409 | 0.61 | ||||||||||||||||||
Other borrowings | 367,373 | 3,021 | 3.26 | 365,728 | 2,854 | 3.10 | ||||||||||||||||||
Subordinated debentures | 135,055 | 2,353 | 6.91 | 134,317 | 2,307 | 6.83 | ||||||||||||||||||
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Total interest-bearing liabilities | 6,967,143 | 20,459 | 1.17 | 6,640,904 | 14,570 | 0.87 | ||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 2,170,758 | 1,784,422 | ||||||||||||||||||||||
Accrued interest and other liabilities | 99,477 | 77,066 | ||||||||||||||||||||||
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Total liabilities | 9,237,378 | 8,502,392 | ||||||||||||||||||||||
Stockholders’ equity | 1,348,867 | 1,094,182 | ||||||||||||||||||||||
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Total liabilities and stockholders’ equity | $ | 10,586,245 | $ | 9,596,574 | ||||||||||||||||||||
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Net interest income/net interest spread | 89,676 | 3.24 | % | 74,183 | 3.09 | % | ||||||||||||||||||
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Net yield on earning assets/net interest margin | 3.59 | % | 3.31 | % | ||||||||||||||||||||
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Taxable equivalent adjustment: | ||||||||||||||||||||||||
Investment securities | (1,765 | ) | (1,685 | ) | ||||||||||||||||||||
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Net interest income | $ | 87,911 | $ | 72,498 | ||||||||||||||||||||
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(1) | Nonaccrual loans are included in loans, net of unearned income. No adjustment has been made for these loans in the calculation of yields. |
(2) | Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 35%. |
3
CADENCE BANCORPORATION
Unaudited Consolidated Financial Data
For the Three Months Ended December 31, 2017 | For the Three Months Ended September 30, 2017 | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
(In thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans, net of unearned income(1) | ||||||||||||||||||||||||
Originated and ANCI loans | $ | 7,961,692 | $ | 89,762 | 4.47 | % | $ | 7,587,556 | $ | 84,321 | 4.41 | % | ||||||||||||
ACI portfolio | 264,602 | 8,145 | 12.21 | 280,238 | 5,840 | 8.27 | ||||||||||||||||||
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Total loans | 8,226,294 | 97,907 | 4.72 | 7,867,794 | 90,161 | 4.55 | ||||||||||||||||||
Investment securities | ||||||||||||||||||||||||
Taxable | 817,971 | 5,000 | 2.43 | 760,269 | 4,610 | 2.41 | ||||||||||||||||||
Tax-exempt (2) | 410,359 | 5,047 | 4.88 | 408,913 | 5,046 | 4.90 | ||||||||||||||||||
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Total investment securities | 1,228,330 | 10,047 | 3.25 | 1,169,182 | 9,656 | 3.28 | ||||||||||||||||||
Federal funds sold and short-term investments | 409,317 | 1,151 | 1.12 | 267,684 | 1,072 | 1.59 | ||||||||||||||||||
Other investments | 51,318 | 1,030 | 7.96 | 49,661 | 380 | 3.04 | ||||||||||||||||||
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Total interest-earning assets | 9,915,259 | 110,135 | 4.41 | 9,354,321 | 101,269 | 4.30 | ||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 66,849 | 60,760 | ||||||||||||||||||||||
Premises and equipment | 64,730 | 65,308 | ||||||||||||||||||||||
Accrued interest and other assets | 634,375 | 639,188 | ||||||||||||||||||||||
Allowance for credit losses | (94,968 | ) | (94,706 | ) | ||||||||||||||||||||
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Total assets | $ | 10,586,245 | $ | 10,024,871 | ||||||||||||||||||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 4,424,371 | $ | 7,844 | 0.70 | % | $ | 4,329,086 | $ | 7,300 | 0.67 | % | ||||||||||||
Savings deposits | 177,413 | 112 | 0.25 | 180,099 | 113 | 0.25 | ||||||||||||||||||
Time deposits | 1,862,931 | 7,129 | 1.52 | 1,648,000 | 5,665 | 1.36 | ||||||||||||||||||
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Total interest-bearing deposits | 6,464,715 | 15,085 | 0.93 | 6,157,185 | 13,078 | 0.84 | ||||||||||||||||||
Other borrowings | 367,373 | 3,021 | 3.26 | 349,925 | 2,926 | 3.32 | ||||||||||||||||||
Subordinated debentures | 135,055 | 2,353 | 6.91 | 134,873 | 2,336 | 6.87 | ||||||||||||||||||
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Total interest-bearing liabilities | 6,967,143 | 20,459 | 1.17 | 6,641,983 | 18,340 | 1.10 | ||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 2,170,758 | 1,982,784 | ||||||||||||||||||||||
Accrued interest and other liabilities | 99,477 | 79,220 | ||||||||||||||||||||||
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Total liabilities | 9,237,378 | 8,703,987 | ||||||||||||||||||||||
Stockholders’ equity | 1,348,867 | 1,320,884 | ||||||||||||||||||||||
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Total liabilities and stockholders’ equity | $ | 10,586,245 | $ | 10,024,871 | ||||||||||||||||||||
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Net interest income/net interest spread | 89,676 | 3.24 | % | 82,929 | 3.20 | % | ||||||||||||||||||
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Net yield on earning assets/net interest margin | 3.59 | % | 3.52 | % | ||||||||||||||||||||
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Taxable equivalent adjustment: | ||||||||||||||||||||||||
Investment securities | (1,765 | ) | (1,766 | ) | ||||||||||||||||||||
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Net interest income | $ | 87,911 | $ | 81,163 | ||||||||||||||||||||
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(1) | Nonaccrual loans are included in loans, net of unearned income. No adjustment has been made for these loans in the calculation of yields. |
(2) | Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 35%. |
4
CADENCE BANCORPORATION
Unaudited Consolidated Financial Data
For the Year Ended December 31, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
(In thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans, net of unearned income(1) | ||||||||||||||||||||||||
Originated and ANCI loans | $ | 7,535,099 | $ | 327,857 | 4.35 | % | $ | 6,811,616 | $ | 268,984 | 3.95 | % | ||||||||||||
ACI portfolio | 290,664 | 31,451 | 10.82 | 375,019 | 36,569 | 9.75 | ||||||||||||||||||
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Total loans | 7,825,763 | 359,308 | 4.59 | 7,186,635 | 305,553 | 4.25 | ||||||||||||||||||
Investment securities | ||||||||||||||||||||||||
Taxable | 747,590 | 18,089 | 2.42 | 725,100 | 15,838 | 2.18 | ||||||||||||||||||
Tax-exempt (2) | 408,229 | 20,554 | 5.03 | 276,217 | 13,464 | 4.87 | ||||||||||||||||||
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Total investment securities | 1,155,819 | 38,643 | 3.34 | 1,001,317 | 29,302 | 2.93 | ||||||||||||||||||
Federal funds sold and short-term investments | 313,683 | 3,336 | 1.06 | 368,669 | 2,419 | 0.66 | ||||||||||||||||||
Other investments | 49,781 | 2,774 | 5.57 | 46,364 | 2,688 | 5.80 | ||||||||||||||||||
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Total interest-earning assets | 9,345,046 | 404,061 | 4.32 | 8,602,985 | 339,962 | 3.95 | ||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 60,108 | 47,569 | ||||||||||||||||||||||
Premises and equipment | 65,428 | 69,290 | ||||||||||||||||||||||
Accrued interest and other assets | 640,075 | 642,049 | ||||||||||||||||||||||
Allowance for credit losses | (90,621 | ) | (90,264 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 10,020,036 | $ | 9,271,629 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | $ | 4,360,252 | $ | 27,030 | 0.62 | % | $ | 4,122,667 | $ | 17,832 | 0.43 | % | ||||||||||||
Savings deposits | 181,500 | 456 | 0.25 | 178,397 | 423 | 0.24 | ||||||||||||||||||
Time deposits | 1,679,959 | 22,213 | 1.32 | 1,665,833 | 17,191 | 1.03 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total interest-bearing deposits | 6,221,711 | 49,699 | 0.80 | 5,966,897 | 35,446 | 0.59 | ||||||||||||||||||
Other borrowings | 358,413 | 11,644 | 3.25 | 318,668 | 11,215 | 3.52 | ||||||||||||||||||
Subordinated debentures | 134,783 | 9,308 | 6.91 | 134,017 | 9,150 | 6.83 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total interest-bearing liabilities | 6,714,907 | 70,651 | 1.05 | 6,419,582 | 55,811 | 0.87 | ||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 1,965,070 | 1,688,405 | ||||||||||||||||||||||
Accrued interest and other liabilities | 86,198 | 70,038 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities | 8,766,175 | 8,178,025 | ||||||||||||||||||||||
Stockholders’ equity | 1,253,861 | 1,093,604 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 10,020,036 | $ | 9,271,629 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest income/net interest spread | 333,410 | 3.27 | % | 284,151 | 3.08 | % | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net yield on earning assets/net interest margin | 3.57 | % | 3.30 | % | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Taxable equivalent adjustment: | ||||||||||||||||||||||||
Investment securities | (7,194 | ) | (4,712 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest income | $ | 326,216 | $ | 279,439 | ||||||||||||||||||||
|
|
|
|
(1) | Nonaccrual loans are included in loans, net of unearned income. No adjustment has been made for these loans in the calculation of yields. |
(2) | Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 35%. |
5
CADENCE BANCORPORATION
Unaudited Consolidated Financial Data
Loan Interest Income Detail
For the Three Months Ended, | For the Years Ended December 31, | |||||||||||||||||||||||||||
(In thousands) | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | 2017 | 2016 | |||||||||||||||||||||
Loan Interest Income Detail | ||||||||||||||||||||||||||||
Interest income on loans, excluding ACI loans | $ | 89,762 | $ | 84,321 | $ | 79,904 | $ | 73,869 | $ | 71,237 | $ | 327,857 | $ | 268,984 | ||||||||||||||
Scheduled accretion for the period | 5,348 | 5,550 | 6,075 | 6,331 | 6,845 | 23,303 | 30,870 | |||||||||||||||||||||
Recovery income for the period | 2,797 | 290 | 4,450 | 610 | 968 | 8,148 | 5,699 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Accretion on acquired credit impaired (ACI) loans | 8,145 | 5,840 | 10,525 | 6,941 | 7,813 | 31,451 | 36,569 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Loan interest income | $ | 97,907 | $ | 90,161 | $ | 90,429 | $ | 80,810 | $ | 79,050 | $ | 359,308 | $ | 305,553 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Loan yield, excluding ACI loans | 4.47 | % | 4.41 | % | 4.36 | % | 4.14 | % | 4.03 | % | 4.35 | % | 3.95 | % | ||||||||||||||
ACI loan yield | 12.21 | 8.27 | 14.02 | 8.89 | 9.21 | 10.82 | 9.75 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total loan yield | 4.72 | % | 4.55 | % | 4.74 | % | 4.34 | % | 4.26 | % | 4.59 | % | 4.25 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses
For the Three Months Ended | For the Years Ended December 31, | |||||||||||||||||||||||||||
(In thousands) | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | 2017 | 2016 | |||||||||||||||||||||
Balance at beginning of period | $ | 94,765 | $ | 93,215 | $ | 88,304 | $ | 82,268 | $ | 91,169 | $ | 82,268 | $ | 79,783 | ||||||||||||||
Charge-offs | (2,860 | ) | (581 | ) | (2,879 | ) | (551 | ) | (3,922 | ) | (6,871 | ) | (49,302 | ) | ||||||||||||||
Recoveries | 146 | 408 | 1,089 | 801 | 243 | 2,444 | 2,439 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net (charge-offs) recoveries | (2,714 | ) | (173 | ) | (1,790 | ) | 250 | (3,679 | ) | (4,427 | ) | (46,863 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Provision for (reversal of) credit losses | (4,475 | ) | 1,723 | 6,701 | 5,786 | (5,222 | ) | 9,735 | 49,348 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Balance at end of period | $ | 87,576 | $ | 94,765 | $ | 93,215 | $ | 88,304 | $ | 82,268 | $ | 87,576 | $ | 82,268 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
CADENCE BANCORPORATION
Unaudited Consolidated Financial Data
Noninterest Income
For the Three Months Ended | For the Years Ended December 31, | |||||||||||||||||||||||||||
(In thousands) | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | 2017 | 2016 | |||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||||
Investment advisory revenue | $ | 5,257 | $ | 5,283 | $ | 5,061 | $ | 4,916 | $ | 4,821 | $ | 20,517 | $ | 18,811 | ||||||||||||||
Trust services revenue | 4,836 | 4,613 | 4,584 | 5,231 | 4,109 | 19,264 | 16,109 | |||||||||||||||||||||
Service charges on deposit accounts | 3,753 | 3,920 | 3,784 | 3,815 | 3,614 | 15,272 | 13,793 | |||||||||||||||||||||
Credit-related fees | 3,372 | 3,306 | 2,741 | 2,747 | 2,875 | 12,166 | 10,729 | |||||||||||||||||||||
Insurance revenue | 1,470 | 1,950 | 1,828 | 2,130 | 1,577 | 7,378 | 7,717 | |||||||||||||||||||||
Bankcard fees | 1,833 | 1,803 | 1,862 | 1,812 | 1,813 | 7,310 | 7,270 | |||||||||||||||||||||
Mortgage banking revenue | 687 | 965 | 1,213 | 866 | 1,019 | 3,731 | 4,663 | |||||||||||||||||||||
Other service fees earned | 1,197 | 1,174 | 1,071 | 972 | 777 | 4,414 | 2,884 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total service fees and revenue | 22,405 | 23,014 | 22,144 | 22,489 | 20,605 | 90,052 | 81,976 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Securities gains (losses), net | 16 | 1 | (244 | ) | 81 | 1,267 | (146 | ) | 3,736 | |||||||||||||||||||
Other | 3,235 | 4,109 | 1,089 | 1,535 | 488 | 9,968 | 2,691 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total other noninterest income | 3,251 | 4,110 | 845 | 1,616 | 1,755 | 9,822 | 6,427 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total noninterest income (GAAP) | 25,656 | 27,124 | 22,989 | 24,105 | 22,360 | 99,874 | 88,403 | |||||||||||||||||||||
Less: Securities gains (losses) | 16 | 1 | (244 | ) | 81 | 1,267 | (146 | ) | 3,736 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted noninterest operating revenue(Non-GAAP measure) | $ | 25,640 | $ | 27,123 | $ | 23,233 | $ | 24,024 | $ | 21,093 | $ | 100,020 | $ | 84,667 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
For the Three Months Ended | For the Years Ended December 31, | |||||||||||||||||||||||||||
(In thousands) | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | 2017 | 2016 | |||||||||||||||||||||
Noninterest Expenses | ||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 35,162 | $ | 35,007 | $ | 34,682 | $ | 34,267 | $ | 28,139 | $ | 139,118 | $ | 125,068 | ||||||||||||||
Premises and equipment | 7,629 | 7,419 | 7,180 | 6,693 | 7,475 | 28,921 | 27,982 | |||||||||||||||||||||
Intangible asset amortization | 1,085 | 1,136 | 1,190 | 1,241 | 1,555 | 4,652 | 6,532 | |||||||||||||||||||||
Net cost of operation of other real estate owned | 1,075 | 453 | 427 | 296 | 1,117 | 2,251 | 3,033 | |||||||||||||||||||||
Data processing | 2,504 | 1,688 | 1,702 | 1,696 | 1,767 | 7,590 | 6,280 | |||||||||||||||||||||
Special asset expenses | 331 | 215 | 469 | 140 | 670 | 1,156 | 1,788 | |||||||||||||||||||||
Consulting and professional fees | 4,380 | 2,069 | 1,502 | 1,139 | 2,288 | 9,090 | 6,728 | |||||||||||||||||||||
Loan related expenses | 810 | 532 | 757 | 280 | 1,236 | 2,379 | 3,114 | |||||||||||||||||||||
FDIC insurance | 939 | 889 | 954 | 1,493 | 1,517 | 4,275 | 7,228 | |||||||||||||||||||||
Communications | 857 | 650 | 675 | 655 | 741 | 2,837 | 2,656 | |||||||||||||||||||||
Advertising and public relations | 683 | 521 | 499 | 345 | 344 | 2,048 | 1,369 | |||||||||||||||||||||
Legal expenses | 2,626 | 612 | 508 | 432 | 662 | 4,178 | 2,721 | |||||||||||||||||||||
Branch closure expenses | 55 | 50 | 47 | 46 | 47 | 198 | 238 | |||||||||||||||||||||
Other | 8,235 | 5,289 | 5,542 | 5,598 | 7,836 | 24,663 | 25,443 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total noninterest expenses | $ | 66,371 | $ | 56,530 | $ | 56,134 | $ | 54,321 | $ | 55,394 | $ | 233,356 | $ | 220,180 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
CADENCE BANCORPORATION
Unaudited Consolidated Financial Data
Reconciliation ofNon-GAAP Financial Measures
As of and for the Three Months Ended | As of and for the Years Ended December 31, | |||||||||||||||||||||||||||
(In thousands) | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | 2017 | 2016 | |||||||||||||||||||||
Efficiency ratio | ||||||||||||||||||||||||||||
Noninterest expenses (numerator) | $ | 66,371 | $ | 56,530 | $ | 56,134 | $ | 54,321 | $ | 55,394 | $ | 233,356 | $ | 220,180 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net interest income | $ | 87,911 | $ | 81,163 | $ | 82,384 | $ | 74,758 | $ | 72,498 | $ | 326,216 | $ | 279,439 | ||||||||||||||
Noninterest income | 25,656 | 27,124 | 22,989 | 24,105 | 22,360 | 99,874 | 88,403 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Operating revenue (denominator) | $ | 113,567 | $ | 108,287 | $ | 105,373 | $ | 98,863 | $ | 94,858 | $ | 426,090 | $ | 367,842 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Efficiency ratio | 58.44 | % | 52.20 | % | 53.27 | % | 54.95 | % | 58.40 | % | 54.77 | % | 59.86 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted noninterest expenses and operating revenue | ||||||||||||||||||||||||||||
Noninterest expense | $ | 66,371 | $ | 56,530 | $ | 56,134 | $ | 54,321 | $ | 55,394 | $ | 233,356 | $ | 220,180 | ||||||||||||||
Less: Branch closure expenses | 55 | 50 | 47 | 46 | 47 | 198 | 238 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted noninterest expenses | $ | 66,316 | $ | 56,480 | $ | 56,087 | $ | 54,275 | $ | 55,347 | $ | 233,158 | $ | 219,942 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net interest income | $ | 87,911 | $ | 81,163 | $ | 82,384 | $ | 74,758 | $ | 72,498 | $ | 326,216 | $ | 279,439 | ||||||||||||||
Noninterest income | 25,656 | 27,124 | 22,989 | 24,105 | 22,360 | 99,874 | 88,403 | |||||||||||||||||||||
Less: Securities gains (losses), net | 16 | 1 | (244 | ) | 81 | 1,267 | (146 | ) | 3,736 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Adjusted operating revenue | $ | 113,551 | $ | 108,286 | $ | 105,617 | $ | 98,782 | $ | 93,591 | $ | 426,236 | $ | 364,106 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Tangible common equity ratio | ||||||||||||||||||||||||||||
Shareholders’ equity | $ | 1,359,056 | $ | 1,340,848 | $ | 1,304,054 | $ | 1,105,976 | $ | 1,080,498 | $ | 1,359,056 | $ | 1,080,498 | ||||||||||||||
Less: Goodwill and other intangible assets, net | (328,040 | ) | (329,124 | ) | (330,261 | ) | (331,450 | ) | (332,691 | ) | (328,040 | ) | (332,691 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Tangible common shareholders’ equity | 1,031,016 | 1,011,724 | 973,793 | 774,526 | 747,807 | 1,031,016 | 747,807 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total assets | 10,948,926 | 10,502,261 | 9,811,557 | 9,720,937 | 9,530,888 | 10,948,926 | 9,530,888 | |||||||||||||||||||||
Less: Goodwill and other intangible assets, net | (328,040 | ) | (329,124 | ) | (330,261 | ) | (331,450 | ) | (332,691 | ) | (328,040 | ) | (332,691 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Tangible assets | $ | 10,620,886 | $ | 10,173,137 | $ | 9,481,296 | $ | 9,389,487 | $ | 9,198,197 | $ | 10,620,886 | $ | 9,198,197 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Tangible common equity ratio | 9.71 | % | 9.95 | % | 10.27 | % | 8.25 | % | 8.13 | % | 9.71 | % | 8.13 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Tangible book value per share | ||||||||||||||||||||||||||||
Shareholders’ equity | $ | 1,359,056 | $ | 1,340,848 | $ | 1,304,054 | $ | 1,105,976 | $ | 1,080,498 | $ | 1,359,056 | $ | 1,080,498 | ||||||||||||||
Less: Goodwill and other intangible assets, net | (328,040 | ) | (329,124 | ) | (330,261 | ) | (331,450 | ) | (332,691 | ) | (328,040 | ) | (332,691 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Tangible common shareholders’ equity | $ | 1,031,016 | $ | 1,011,724 | $ | 973,793 | $ | 774,526 | $ | 747,807 | $ | 1,031,016 | $ | 747,807 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Common shares issued | 83,625,000 | 83,625,000 | 83,625,000 | 75,000,000 | 75,000,000 | 83,625,000 | 75,000,000 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Tangible book value per share | $ | 12.33 | $ | 12.10 | $ | 11.64 | $ | 10.33 | $ | 9.97 | $ | 12.33 | $ | 9.97 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Return on average tangible common equity | ||||||||||||||||||||||||||||
Average common equity | $ | 1,348,867 | $ | 1,320,884 | $ | 1,251,217 | $ | 1,090,905 | $ | 1,094,182 | $ | 1,253,861 | $ | 1,093,604 | ||||||||||||||
Less: Average intangible assets | (328,697 | ) | (329,816 | ) | (330,977 | ) | (332,199 | ) | (333,640 | ) | (330,411 | ) | (336,054 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Average tangible common shareholders’ equity | $ | 1,020,170 | $ | 991,068 | $ | 920,240 | $ | 758,706 | $ | 760,542 | $ | 923,450 | $ | 757,550 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net income | $ | 14,691 | $ | 32,577 | $ | 28,968 | $ | 26,117 | $ | 28,985 | $ | 102,353 | $ | 65,774 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Return on average tangible common equity(1) | 5.71 | % | 13.04 | % | 12.63 | % | 13.96 | % | 15.16 | % | 11.08 | % | 8.68 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Pre-tax,pre-provision net earnings | ||||||||||||||||||||||||||||
Income before taxes | $ | 51,671 | $ | 50,034 | $ | 42,538 | $ | 38,756 | $ | 44,686 | $ | 182,999 | $ | 98,314 | ||||||||||||||
Plus: Provision for credit losses | (4,475 | ) | 1,723 | 6,701 | 5,786 | (5,222 | ) | 9,735 | 49,348 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Pre-tax,pre-provision net earnings | $ | 47,196 | $ | 51,757 | $ | 49,239 | $ | 44,542 | $ | 39,464 | $ | 192,734 | $ | 147,662 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
CADENCE BANCORPORATION
Unaudited Consolidated Financial Data
Reconciliation ofNon-GAAP Financial Measures (continued)
As of and for the Three Months Ended | As of and for the Year Ended | |||||||
(In thousands) | December 31, 2017 | December 31, 2017 | ||||||
Reconciliation ofNon-GAAP Financial Measures Related toOne-Time Tax Charge | ||||||||
Net income excludingone-time tax charge | ||||||||
Net income | $ | 14,691 | $ | 102,353 | ||||
Add:One-time tax charge | 19,022 | 19,022 | ||||||
|
|
|
| |||||
Net income excludingone-time tax charge | $ | 33,713 | $ | 121,375 | ||||
|
|
|
| |||||
Earnings per share | ||||||||
Earnings per diluted common share | $ | 0.17 | $ | 1.25 | ||||
One-time tax charge per share | 0.22 | 0.23 | ||||||
|
|
|
| |||||
Earnings per diluted common share excludingone-time tax charge | $ | 0.39 | $ | 1.48 | ||||
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|
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Return on Average Assets | ||||||||
Net income excludingone-time tax charge | $ | 33,713 | $ | 121,375 | ||||
Average assets | 10,586,245 | 10,020,036 | ||||||
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Return on average assets excludingone-time tax charge(1) | 1.26 | % | 1.21 | % | ||||
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Return on Average Common Equity | ||||||||
Net income excludingone-time tax charge | $ | 33,713 | $ | 121,375 | ||||
Average common equity | 1,348,867 | 1,253,861 | ||||||
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Return on average common equity excludingone-time tax charge(1) | 9.92 | % | 9.68 | % | ||||
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Return on Average Tangible Common Equity | ||||||||
Net income excludingone-time tax charge | $ | 33,713 | $ | 121,375 | ||||
Average tangible common shareholders’ equity | 1,020,170 | 923,450 | ||||||
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Return on average tangible common shareholders’ equity excludingone-time tax charge(1) | 13.11 | % | 13.14 | % | ||||
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Effective Tax Rate | ||||||||
Income before taxes | $ | 51,671 | $ | 182,999 | ||||
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Income tax expense | 36,980 | 80,646 | ||||||
Less:one-time tax charge | 19,022 | 19,022 | ||||||
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Income tax expense excludingone-time tax charge | 17,958 | 61,624 | ||||||
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Effective tax rate excludingone-time tax charge | 34.8 | % | 33.7 | % | ||||
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(1) | Annualized for the three month periods. |
9