Three Months Ended June 30, |
% Change |
Six Months Ended June 30, |
% Change | |||||||||
(Dollars in thousands, except per share data)
| 2022 | 2021 | 2022 | 2021 | ||||||||
Results of operations: | ||||||||||||
Net interest income | $ | 105,950 | $ | 108,046 | (2) | % | $ | 207,401 | $ | 212,646 | (2) | % |
Provision/ (credit) for credit losses | 3,046 | (4,204) | (172) | 4,681 | (38,912) | (112) | ||||||
Non-interest income | 35,245 | 26,259 | 34 | 55,840 | 55,125 | 1 | ||||||
Non-interest expense | 64,991 | 62,975 | 3 | 127,138 | 131,148 | (3) | ||||||
Income before income tax expense | 73,158 | 75,534 | (3) | 131,422 | 175,535 | (25) | ||||||
Net income | 54,800 | 57,263 | (4) | 98,735 | 132,727 | (26) | ||||||
Net income attributable to common shareholders | $ | 54,606 | $ | 56,782 | (4) | $ | 98,259 | $ | 131,606 | (25) | ||
Pre-tax pre-provision net income (1)
| $ | 76,204 | $ | 71,330 | 7 | $ | 136,103 | $ | 136,623 | - | ||
Return on average assets | 1.69 | % | 1.79 | % | 1.56 | % | 2.09 | % | ||||
Return on average common equity | 14.97 | % | 15.07 | % | 13.39 | % | 17.84 | % | ||||
Return on average tangible common equity (1)
| 20.42 | % | 20.44 | % | 18.21 | % | 24.35 | % | ||||
Net interest margin | 3.49 | % | 3.63 | % | 3.49 | % | 3.60 | % | ||||
Efficiency ratio - GAAP basis (2)
| 46.03 | % | 46.89 | % | 48.30 | % | 48.98 | % | ||||
Efficiency ratio - Non-GAAP basis (2)
| 49.79 | % | 45.36 | % | 49.57 | % | 44.01 | % | ||||
Per share data:
| ||||||||||||
Basic net income per common share | $ | 1.21 | $ | 1.20 | 1 | % | $ | 2.18 | $ | 2.79 | (22) | % |
Diluted net income per common share | $ | 1.21 | $ | 1.19 | 2 | $ | 2.17 | $ | 2.77 | (22) | ||
Weighted average diluted common shares | 45,111,693 | 47,523,198 | (5) | 45,223,086 | 47,469,470 | (5) | ||||||
Dividends declared per share | $ | 0.34 | $ | 0.32 | 6 | $ | 0.68 | $ | 0.64 | 6 | ||
Book value per common share | $ | 33.10 | $ | 33.02 | - | $ | 33.10 | $ | 33.02 | - | ||
Tangible book value per common share (1)
| $ | 24.45 | $ | 24.58 | (1) | $ | 24.45 | $ | 24.58 | (1) | ||
Outstanding common shares | 44,629,697 | 47,312,982 | (6) | 44,629,697 | 47,312,982 | (6) | ||||||
Financial condition at period-end:
| ||||||||||||
Investment securities | $ | 1,595,424 | $ | 1,482,123 | 8 | % | $ | 1,595,424 | $ | 1,482,123 | 8 | % |
Loans | 10,786,290 | 10,092,515 | 7 | 10,786,290 | 10,092,515 | 7 | ||||||
Interest-earning assets | 12,542,388 | 12,167,067 | 3 | 12,542,388 | 12,167,067 | 3 | ||||||
Assets | 13,303,009 | 12,925,577 | 3 | 13,303,009 | 12,925,577 | 3 | ||||||
Deposits | 10,969,461 | 10,866,466 | 1 | 10,969,461 | 10,866,466 | 1 | ||||||
Interest-bearing liabilities | 7,570,671 | 7,233,536 | 5 | 7,570,671 | 7,233,536 | 5 | ||||||
Stockholders' equity | 1,477,169 | 1,562,280 | (5) | 1,477,169 | 1,562,280 | (5) | ||||||
Capital ratios: | ||||||||||||
Tier 1 leverage (3)
| 9.53 | % | 9.49 | % | 9.53 | % | 9.49 | % | ||||
Common equity tier 1 capital to risk-weighted assets (3)
| 11.58 | % | 12.49 | % | 11.58 | % | 12.49 | % | ||||
Tier 1 capital to risk-weighted assets (3)
| 11.58 | % | 12.49 | % | 11.58 | % | 12.49 | % | ||||
Total regulatory capital to risk-weighted assets (3)
| 16.07 | % | 15.85 | % | 16.07 | % | 15.85 | % | ||||
Tangible common equity to tangible assets (4)
| 8.45 | % | 9.28 | % | 8.45 | % | 9.28 | % | ||||
Average equity to average assets | 11.30 | % | 11.91 | % | 11.63 | % | 11.73 | % | ||||
Credit quality ratios: | ||||||||||||
Allowance for credit losses to loans | 1.05 | % | 1.23 | % | 1.05 | % | 1.23 | % | ||||
Non-performing loans to total loans | 0.40 | % | 0.93 | % | 0.40 | % | 0.93 | % | ||||
Non-performing assets to total assets | 0.33 | % | 0.74 | % | 0.33 | % | 0.74 | % | ||||
Allowance for credit losses to non-performing loans | 261.44 | % | 131.44 | % | 261.44 | % | 131.44 | % | ||||
Annualized net charge-offs to average loans (5)
| - | % | 0.09 | % | - | % | 0.05 | % |
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||
Core earnings (non-GAAP): | ||||||||
Net income (GAAP) | $ | 54,800 | $ | 57,263 | $ | 98,735 | $ | 132,727 |
Plus/ (less) non-GAAP adjustments (net of tax): | ||||||||
Merger, acquisition and disposal expense | 793 | - | 793 | 34 | ||||
Amortization of intangible assets | 1,090 | 1,236 | 2,211 | 2,500 | ||||
Loss on FHLB redemption | - | - | - | 6,792 | ||||
Gain on disposal of assets | (12,417) | - | (12,417) | - | ||||
Investment securities gains | (28) | (53) | (34) | (96) | ||||
Core earnings (Non-GAAP) | $ | 44,238 | $ | 58,446 | $ | 89,288 | $ | 141,957 |
Core earnings per diluted common share (non-GAAP):
| ||||||||
Weighted average common shares outstanding - diluted (GAAP) | 45,111,693 | 47,523,198 | 45,223,086 | 47,469,470 | ||||
Earnings per diluted common share (GAAP) | $ | 1.21 | $ | 1.19 | $ | 2.17 | $ | 2.77 |
Core earnings per diluted common share (non-GAAP) | $ | 0.98 | $ | 1.23 | $ | 1.97 | $ | 2.99 |
Core return on average assets (non-GAAP): | ||||||||
Average assets (GAAP) | $ | 12,991,692 | $ | 12,798,355 | $ | 12,785,040 | $ | 12,797,068 |
Return on average assets (GAAP)
| 1.69 | % | 1.79 | % | 1.56 | % | 2.09 | % |
Core return on average assets (non-GAAP) | 1.37 | % | 1.83 | % | 1.41 | % | 2.24 | % |
Core return on average tangible common equity (non-GAAP): | ||||||||
Average total stockholders' equity (GAAP) | $ | 1,468,036 | $ | 1,523,875 | $ | 1,487,170 | $ | 1,500,642 |
Average goodwill | (367,986) | (370,223) | (369,098) | (370,223) | ||||
Average other intangible assets, net | (23,801) | (30,224) | (24,580) | (31,056) | ||||
Average tangible common equity (non-GAAP) | $ | 1,076,249 | $ | 1,123,428 | $ | 1,093,492 | $ | 1,099,363 |
Return on average tangible common equity (non-GAAP)
| 20.42 | % | 20.44 | % | 18.21 | % | 24.35 | % |
Core return on average tangible common equity (non-GAAP) | 16.49 | % | 20.87 | % | 16.47 | % | 26.04 | % |
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||
Pre-tax pre-provision net income: | ||||||||
Net income (GAAP) | $ | 54,800 | $ | 57,263 | $ | 98,735 | $ | 132,727 |
Plus/ (less) non-GAAP adjustments: | ||||||||
Income tax expense | 18,358 | 18,271 | 32,687 | 42,808 | ||||
Provision/ (credit) for credit losses | 3,046 | (4,204) | 4,681 | (38,912) | ||||
Pre-tax pre-provision net income (non-GAAP) | $ | 76,204 | $ | 71,330 | $ | 136,103 | $ | 136,623 |
Efficiency ratio (GAAP):
| ||||||||
Non-interest expense | $ | 64,991 | $ | 62,975 | $ | 127,138 | $ | 131,148 |
Net interest income plus non-interest income | $ | 141,195 | $ | 134,305 | $ | 263,241 | $ | 267,771 |
Efficiency ratio (GAAP) | 46.03% | 46.89 | % | 48.30 | % | 48.98 | % | |
Efficiency ratio (Non-GAAP): | ||||||||
Non-interest expense | $ | 64,991 | $ | 62,975 | $ | 127,138 | $ | 131,148 |
Less non-GAAP adjustments: | ||||||||
Amortization of intangible assets | 1,466 | 1,659 | 2,974 | 3,356 | ||||
Loss on FHLB redemption | - | - | - | 9,117 | ||||
Merger, acquisition and disposal expense | 1,067 | - | 1,067 | 45 | ||||
Non-interest expense - as adjusted | $ | 62,458 | $ | 61,316 | $ | 123,097 | $ | 118,630 |
Net interest income plus non-interest income
| $ | 141,195 | $ | 134,305 | $ | 263,241 | $ | 267,771 |
Plus non-GAAP adjustment: | ||||||||
Tax-equivalent income | 992 | 930 | 1,858 | 1,910 | ||||
Less non-GAAP adjustment: | ||||||||
Investment securities gains | 38 | 71 | 46 | 129 | ||||
Gain on disposal of assets | 16,699 | - | 16,699 | - | ||||
Net interest income plus non-interest income - as adjusted | $ | 125,450 | $ | 135,164 | $ | 248,354 | $ | 269,552 |
Efficiency ratio (Non-GAAP)
| 49.79% | 45.36 | % | 49.57 | % | 44.01 | % | |
Tangible common equity ratio: | ||||||||
Total stockholders' equity | $ | 1,477,169 | $ | 1,562,280 | $ | 1,477,169 | $ | 1,562,280 |
Goodwill | (363,436) | (370,223) | (363,436) | (370,223) | ||||
Other intangible assets, net | (22,694) | (29,165) | (22,694) | (29,165) | ||||
Tangible common equity | $ | 1,091,039 | $ | 1,162,892 | $ | 1,091,039 | $ | 1,162,892 |
Total assets
| $ | 13,303,009 | $ | 12,925,577 | $ | 13,303,009 | $ | 12,925,577 |
Goodwill | (363,436) | (370,223) | (363,436) | (370,223) | ||||
Other intangible assets, net | (22,694) | (29,165) | (22,694) | (29,165) | ||||
Tangible assets | $ | 12,916,879 | $ | 12,526,189 | $ | 12,916,879 | $ | 12,526,189 |
Tangible common equity ratio
| 8.45% | 9.28 | % | 8.45 | % | 9.28 | % | |
Outstanding common shares | 44,629,697 | 47,312,982 | 44,629,697 | 47,312,982 | ||||
Tangible book value per common share | $ | 24.45 | $ | 24.58 | $ | 24.45 | $ | 24.58 |
(Dollars in thousands) |
June 30, 2022 |
December 31, 2021 |
June 30, 2021 | |||
Assets
| ||||||
Cash and due from banks | $ | 84,215 | $ | 65,630 | $ | 109,147 |
Federal funds sold | 291 | 312 | 358 | |||
Interest-bearing deposits with banks | 136,773 | 354,078 | 520,989 | |||
Cash and cash equivalents | 221,279 | 420,020 | 630,494 | |||
Residential mortgage loans held for sale (at fair value) | 23,610 | 39,409 | 71,082 | |||
Investments held-to-maturity (fair value of $250,915) | 274,337 | - | - | |||
Investments available-for-sale (at fair value) | 1,268,823 | 1,465,896 | 1,441,026 | |||
Other equity securities | 52,264 | 41,166 | 41,097 | |||
Total loans | 10,786,290 | 9,967,091 | 10,092,515 | |||
Less: allowance for credit losses | (113,670) | (109,145) | (123,961) | |||
Net loans | 10,672,620 | 9,857,946 | 9,968,554 | |||
Premises and equipment, net | 63,243 | 59,685 | 55,592 | |||
Other real estate owned | 739 | 1,034 | 1,234 | |||
Accrued interest receivable | 33,459 | 34,349 | 40,630 | |||
Goodwill | 363,436 | 370,223 | 370,223 | |||
Other intangible assets, net | 22,694 | 25,920 | 29,165 | |||
Other assets | 306,505 | 275,078 | 276,480 | |||
Total assets | $ | 13,303,009 | $ | 12,590,726 | $ | 12,925,577 |
Liabilities
| ||||||
Noninterest-bearing deposits
| $ | 4,129,440 | $ | 3,779,630 | $ | 4,000,636 |
Interest-bearing deposits | 6,840,021 | 6,845,101 | 6,865,830 | |||
Total deposits | 10,969,461 | 10,624,731 | 10,866,466 | |||
Securities sold under retail repurchase agreements and federal funds purchased | 185,744 | 141,086 | 140,708 | |||
Advances from FHLB | 175,000 | - | - | |||
Subordinated debt | 369,906 | 172,712 | 226,998 | |||
Total borrowings | 730,650 | 313,798 | 367,706 | |||
Accrued interest payable and other liabilities | 125,729 | 132,518 | 129,125 | |||
Total liabilities | 11,825,840 | 11,071,047 | 11,363,297 | |||
Stockholders' equity
| ||||||
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 44,629,697, 45,118,930 and 47,312,982 at June 30, 2022, December 31, 2021 and June 30, 2021, respectively
| 44,630 | 45,119 | 47,313 | |||
Additional paid in capital | 730,285 | 751,072 | 850,555 | |||
Retained earnings | 799,707 | 732,027 | 659,578 | |||
Accumulated other comprehensive loss | (97,453) | (8,539) | 4,834 | |||
Total stockholders' equity | 1,477,169 | 1,519,679 | 1,562,280 | |||
Total liabilities and stockholders' equity | $ | 13,303,009 | $ | 12,590,726 | $ | 12,925,577 |
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||
(Dollars in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | ||||
Interest income: | ||||||||
Interest and fees on loans | $ | 106,221 | $ | 107,751 | $ | 205,715 | $ | 215,179 |
Interest on loans held for sale | 145 | 549 | 343 | 1,086 | ||||
Interest on deposits with banks | 358 | 47 | 471 | 93 | ||||
Interest and dividends on investment securities: | ||||||||
Taxable | 4,630 | 4,373 | 8,737 | 8,272 | ||||
Tax-advantaged | 2,554 | 2,103 | 4,678 | 4,454 | ||||
Interest on federal funds sold | 1 | - | 1 | - | ||||
Total interest income | 113,909 | 114,823 | 219,945 | 229,084 | ||||
Interest Expense: | ||||||||
Interest on deposits | 3,795 | 3,851 | 6,088 | 8,681 | ||||
Interest on retail repurchase agreements and federal funds purchased
| 201 | 43 | 255 | 96 | ||||
Interest on advances from FHLB | 17 | 373 | 17 | 2,649 | ||||
Interest on subordinated debt | 3,946 | 2,510 | 6,184 | 5,012 | ||||
Total interest expense | 7,959 | 6,777 | 12,544 | 16,438 | ||||
Net interest income | 105,950 | 108,046 | 207,401 | 212,646 | ||||
Provision/ (credit) for credit losses | 3,046 | (4,204) | 4,681 | (38,912) | ||||
Net interest income after provision/ (credit) for credit losses | 102,904 | 112,250 | 202,720 | 251,558 | ||||
Non-interest income: | ||||||||
Investment securities gains | 38 | 71 | 46 | 129 | ||||
Gain on disposal of assets | 16,699 | - | 16,699 | - | ||||
Service charges on deposit accounts | 2,467 | 1,976 | 4,793 | 3,828 | ||||
Mortgage banking activities | 1,483 | 5,776 | 3,781 | 15,945 | ||||
Wealth management income | 9,098 | 9,121 | 18,435 | 17,851 | ||||
Insurance agency commissions | 812 | 1,247 | 2,927 | 3,400 | ||||
Income from bank owned life insurance | 703 | 705 | 1,498 | 1,385 | ||||
Bank card fees | 1,810 | 1,785 | 3,478 | 3,303 | ||||
Other income | 2,135 | 5,578 | 4,183 | 9,284 | ||||
Total non-interest income | 35,245 | 26,259 | 55,840 | 55,125 | ||||
Non-interest expense: | ||||||||
Salaries and employee benefits | 39,550 | 38,990 | 78,923 | 75,642 | ||||
Occupancy expense of premises | 4,734 | 5,497 | 9,768 | 10,984 | ||||
Equipment expenses | 3,559 | 3,020 | 7,095 | 6,242 | ||||
Marketing | 1,280 | 1,052 | 2,473 | 2,264 | ||||
Outside data services | 2,564 | 2,260 | 4,983 | 4,543 | ||||
FDIC insurance | 1,078 | 1,450 | 2,062 | 2,942 | ||||
Amortization of intangible assets | 1,466 | 1,659 | 2,974 | 3,356 | ||||
Merger, acquisition and disposal expense | 1,067 | - | 1,067 | 45 | ||||
Professional fees and services | 2,372 | 3,165 | 4,389 | 4,896 | ||||
Other expenses | 7,321 | 5,882 | 13,404 | 20,234 | ||||
Total non-interest expense | 64,991 | 62,975 | 127,138 | 131,148 | ||||
Income before income tax expense | 73,158 | 75,534 | 131,422 | 175,535 | ||||
Income tax expense | 18,358 | 18,271 | 32,687 | 42,808 | ||||
Net income | $ | 54,800 | $ | 57,263 | $ | 98,735 | $ | 132,727 |
Net income per share amounts: | ||||||||
Basic net income per common share | $ | 1.21 | $ | 1.20 | $ | 2.18 | $ | 2.79 |
Diluted net income per common share | $ | 1.21 | $ | 1.19 | $ | 2.17 | $ | 2.77 |
Dividends declared per share | $ | 0.34 | $ | 0.32 | $ | 0.68 | $ | 0.64 |
2022 | 2021 | |||||||||||
(Dollars in thousands, except per share data) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||
Profitability for the quarter: | ||||||||||||
Tax-equivalent interest income
| $ | 114,901 | $ | 106,902 | $ | 110,933 | $ | 112,060 | $ | 115,753 | $ | 115,241 |
Interest expense
| 7,959 | 4,585 | 4,803 | 4,525 | 6,777 | 9,661 | ||||||
Tax-equivalent net interest income | 106,942 | 102,317 | 106,130 | 107,535 | 108,976 | 105,580 | ||||||
Tax-equivalent adjustment
| 992 | 866 | 862 | 931 | 930 | 980 | ||||||
Provision/ (credit) for credit losses | 3,046 | 1,635 | 1,585 | (8,229) | (4,204) | (34,708) | ||||||
Non-interest income
| 35,245 | 20,595 | 22,536 | 24,394 | 26,259 | 28,866 | ||||||
Non-interest expense
| 64,991 | 62,147 | 66,141 | 63,181 | 62,975 | 68,173 | ||||||
Income before income tax expense | 73,158 | 58,264 | 60,078 | 76,046 | 75,534 | 100,001 | ||||||
Income tax expense | 18,358 | 14,329 | 14,674 | 19,070 | 18,271 | 24,537 | ||||||
Net income | $ | 54,800 | $ | 43,935 | $ | 45,404 | $ | 56,976 | $ | 57,263 | $ | 75,464 |
GAAP financial performance: | ||||||||||||
Return on average assets | 1.69 | % | 1.42 | % | 1.41 | % | 1.75 | % | 1.79 | % | 2.39 | % |
Return on average common equity | 14.97 | % | 11.83 | % | 11.87 | % | 14.54 | % | 15.07 | % | 20.72 | % |
Return on average tangible common equity | 20.42 | % | 16.04 | % | 16.07 | % | 19.56 | % | 20.44 | % | 28.47 | % |
Net interest margin | 3.49 | % | 3.49 | % | 3.51 | % | 3.52 | % | 3.63 | % | 3.56 | % |
Efficiency ratio - GAAP basis | 46.03 | % | 50.92 | % | 51.75 | % | 48.23 | % | 46.89 | % | 51.08 | % |
Non-GAAP financial performance: | ||||||||||||
Pre-tax pre-provision net income | $ | 76,204 | $ | 59,899 | $ | 61,663 | $ | 67,817 | $ | 71,330 | $ | 65,293 |
Core after-tax earnings | $ | 44,238 | $ | 45,050 | $ | 46,575 | $ | 58,151 | $ | 58,446 | $ | 83,511 |
Core return on average assets | 1.37 | % | 1.45 | % | 1.44 | % | 1.79 | % | 1.83 | % | 2.65 | % |
Core return on average common equity | 12.09 | % | 12.13 | % | 12.17 | % | 14.84 | % | 15.38 | % | 22.93 | % |
Core return on average tangible common equity | 16.49 | % | 16.45 | % | 16.49 | % | 19.96 | % | 20.87 | % | 31.50 | % |
Core earnings per diluted common share | $ | 0.98 | $ | 0.99 | $ | 1.02 | $ | 1.23 | $ | 1.23 | $ | 1.76 |
Efficiency ratio - Non-GAAP basis | 49.79 | % | 49.34 | % | 50.17 | % | 46.67 | % | 45.36 | % | 42.65 | % |
Per share data: | ||||||||||||
Net income attributable to common shareholders | $ | 54,606 | $ | 43,667 | $ | 45,114 | $ | 56,622 | $ | 56,782 | $ | 74,824 |
Basic net income per common share | $ | 1.21 | $ | 0.97 | $ | 0.99 | $ | 1.21 | $ | 1.20 | $ | 1.59 |
Diluted net income per common share | $ | 1.21 | $ | 0.96 | $ | 0.99 | $ | 1.20 | $ | 1.19 | $ | 1.58 |
Weighted average diluted common shares | 45,111,693 | 45,333,292 | 45,655,924 | 47,086,824 | 47,523,198 | 47,415,060 | ||||||
Dividends declared per share | $ | 0.34 | $ | 0.34 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 |
Non-interest income: | ||||||||||||
Securities gains | $ | 38 | $ | 8 | $ | 34 | $ | 49 | $ | 71 | $ | 58 |
Gain on disposal of assets | 16,699 | - | - | - | - | - | ||||||
Service charges on deposit accounts | 2,467 | 2,326 | 2,305 | 2,108 | 1,976 | 1,852 | ||||||
Mortgage banking activities | 1,483 | 2,298 | 3,622 | 4,942 | 5,776 | 10,169 | ||||||
Wealth management income | 9,098 | 9,337 | 9,598 | 9,392 | 9,121 | 8,730 | ||||||
Insurance agency commissions | 812 | 2,115 | 1,332 | 2,285 | 1,247 | 2,153 | ||||||
Income from bank owned life insurance | 703 | 795 | 819 | 818 | 705 | 680 | ||||||
Bank card fees | 1,810 | 1,668 | 1,818 | 1,775 | 1,785 | 1,518 | ||||||
Other income | 2,135 | 2,048 | 3,008 | 3,025 | 5,578 | 3,706 | ||||||
Total non-interest income | $ | 35,245 | $ | 20,595 | $ | 22,536 | $ | 24,394 | $ | 26,259 | $ | 28,866 |
Non-interest expense: | ||||||||||||
Salaries and employee benefits | $ | 39,550 | $ | 39,373 | $ | 41,535 | $ | 38,653 | $ | 38,990 | $ | 36,652 |
Occupancy expense of premises | 4,734 | 5,034 | 5,693 | 5,728 | 5,497 | 5,487 | ||||||
Equipment expenses | 3,559 | 3,536 | 3,427 | 3,214 | 3,020 | 3,222 | ||||||
Marketing | 1,280 | 1,193 | 1,090 | 1,376 | 1,052 | 1,212 | ||||||
Outside data services | 2,564 | 2,419 | 2,123 | 2,317 | 2,260 | 2,283 | ||||||
FDIC insurance | 1,078 | 984 | 991 | 361 | 1,450 | 1,492 | ||||||
Amortization of intangible assets | 1,466 | 1,508 | 1,609 | 1,635 | 1,659 | 1,697 | ||||||
Merger, acquisition and disposal expense | 1,067 | - | - | - | - | 45 | ||||||
Professional fees and services | 2,372 | 2,017 | 2,381 | 3,031 | 3,165 | 1,731 | ||||||
Other expenses | 7,321 | 6,083 | 7,292 | 6,866 | 5,882 | 14,352 | ||||||
Total non-interest expense | $ | 64,991 | $ | 62,147 | $ | 66,141 | $ | 63,181 | $ | 62,975 | $ | 68,173 |
2022 | 2021 | |||||||||||
(Dollars in thousands, except per share data) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||
Balance sheets at quarter end: | ||||||||||||
Commercial investor real estate loans | $ | 4,761,658 | $ | 4,388,275 | $ | 4,141,346 | $ | 3,743,698 | $ | 3,712,374 | $ | 3,652,418 |
Commercial owner-occupied real estate loans | 1,767,326 | 1,692,253 | 1,690,881 | 1,661,092 | 1,687,843 | 1,644,848 | ||||||
Commercial AD&C loans | 1,094,528 | 1,089,331 | 1,088,094 | 1,177,949 | 1,126,960 | 1,051,013 | ||||||
Commercial business loans | 1,353,380 | 1,349,602 | 1,481,834 | 1,594,528 | 1,974,366 | 2,411,109 | ||||||
Residential mortgage loans | 1,147,577 | 1,000,697 | 937,570 | 911,997 | 960,527 | 1,022,546 | ||||||
Residential construction loans | 235,486 | 204,259 | 197,652 | 181,319 | 172,869 | 171,028 | ||||||
Consumer loans | 426,335 | 419,911 | 429,714 | 450,765 | 457,576 | 493,904 | ||||||
Total loans | 10,786,290 | 10,144,328 | 9,967,091 | 9,721,348 | 10,092,515 | 10,446,866 | ||||||
Allowance for credit losses | (113,670) | (110,588) | (109,145) | (107,920) | (123,961) | (130,361) | ||||||
Loans held for sale | 23,610 | 17,537 | 39,409 | 44,678 | 71,082 | 84,930 | ||||||
Investment securities | 1,595,424 | 1,586,441 | 1,507,062 | 1,470,652 | 1,482,123 | 1,472,727 | ||||||
Interest-earning assets | 12,542,388 | 12,205,058 | 11,867,952 | 12,245,374 | 12,167,067 | 12,132,405 | ||||||
Total assets | 13,303,009 | 12,967,416 | 12,590,726 | 13,017,464 | 12,925,577 | 12,873,366 | ||||||
Noninterest-bearing demand deposits | 4,129,440 | 4,039,797 | 3,779,630 | 3,987,411 | 4,000,636 | 3,770,852 | ||||||
Total deposits | 10,969,461 | 10,852,794 | 10,624,731 | 10,987,400 | 10,866,466 | 10,677,752 | ||||||
Customer repurchase agreements | 110,744 | 130,784 | 141,086 | 147,504 | 140,708 | 129,318 | ||||||
Total interest-bearing liabilities | 7,570,671 | 7,313,783 | 7,158,899 | 7,320,132 | 7,233,536 | 7,423,262 | ||||||
Total stockholders' equity | 1,477,169 | 1,488,910 | 1,519,679 | 1,546,060 | 1,562,280 | 1,511,694 | ||||||
Quarterly average balance sheets: | ||||||||||||
Commercial investor real estate loans | $ | 4,512,937 | $ | 4,220,246 | $ | 3,769,529 | $ | 3,678,886 | $ | 3,675,119 | $ | 3,634,174 |
Commercial owner-occupied real estate loans | 1,727,325 | 1,683,557 | 1,669,737 | 1,671,442 | 1,663,543 | 1,638,885 | ||||||
Commercial AD&C loans | 1,096,369 | 1,102,660 | 1,140,059 | 1,161,183 | 1,089,287 | 1,049,597 | ||||||
Commercial business loans | 1,334,350 | 1,372,755 | 1,482,901 | 1,820,598 | 2,225,885 | 2,291,097 | ||||||
Residential mortgage loans | 1,070,836 | 964,056 | 925,093 | 934,365 | 994,899 | 1,066,714 | ||||||
Residential construction loans | 221,031 | 197,366 | 186,129 | 170,511 | 176,135 | 179,925 | ||||||
Consumer loans | 421,022 | 424,859 | 436,030 | 452,289 | 468,686 | 496,578 | ||||||
Total loans | 10,383,870 | 9,965,499 | 9,609,478 | 9,889,274 | 10,293,554 | 10,356,970 | ||||||
Loans held for sale | 12,744 | 17,594 | 29,426 | 50,075 | 66,958 | 82,263 | ||||||
Investment securities | 1,686,181 | 1,617,615 | 1,535,265 | 1,403,496 | 1,482,905 | 1,407,455 | ||||||
Interest-earning assets | 12,283,834 | 11,859,803 | 12,012,576 | 12,121,048 | 12,037,701 | 12,029,424 | ||||||
Total assets | 12,991,692 | 12,576,089 | 12,791,526 | 12,886,460 | 12,798,355 | 12,801,539 | ||||||
Noninterest-bearing demand deposits | 4,001,762 | 3,758,732 | 3,879,572 | 3,869,293 | 3,763,135 | 3,394,110 | ||||||
Total deposits | 10,829,221 | 10,542,029 | 10,809,665 | 10,832,115 | 10,663,346 | 10,343,190 | ||||||
Customer repurchase agreements | 122,728 | 131,487 | 144,988 | 145,483 | 136,286 | 148,195 | ||||||
Total interest-bearing liabilities | 7,377,045 | 7,163,641 | 7,247,756 | 7,315,021 | 7,356,656 | 7,742,987 | ||||||
Total stockholders' equity | 1,468,036 | 1,506,516 | 1,517,793 | 1,554,765 | 1,523,875 | 1,477,150 | ||||||
Financial measures: | ||||||||||||
Average equity to average assets | 11.30 | % | 11.98 | % | 11.87 | % | 12.07 | % | 11.91 | % | 11.54 | % |
Investment securities to earning assets | 12.72 | % | 13.00 | % | 12.70 | % | 12.01 | % | 12.18 | % | 12.14 | % |
Loans to earning assets | 86.00 | % | 83.12 | % | 83.98 | % | 79.39 | % | 82.95 | % | 86.11 | % |
Loans to assets | 81.08 | % | 78.23 | % | 79.16 | % | 74.68 | % | 78.08 | % | 81.15 | % |
Loans to deposits | 98.33 | % | 93.47 | % | 93.81 | % | 88.48 | % | 92.88 | % | 97.84 | % |
Assets under management | $ | 5,171,321 | $ | 5,793,787 | $ | 6,078,204 | $ | 5,733,311 | $ | 5,676,141 | $ | 5,401,158 |
Capital measures: | ||||||||||||
Tier 1 leverage (1)
| 9.53 | % | 9.66 | % | 9.26 | % | 9.33 | % | 9.49 | % | 9.14 | % |
Common equity tier 1 capital to risk-weighted assets (1)
| 11.58 | % | 12.03 | % | 11.91 | % | 12.53 | % | 12.49 | % | 12.11 | % |
Tier 1 capital to risk-weighted assets (1)
| 11.58 | % | 12.03 | % | 11.91 | % | 12.53 | % | 12.49 | % | 12.11 | % |
Total regulatory capital to risk-weighted assets (1)
| 16.07 | % | 16.77 | % | 14.59 | % | 15.30 | % | 15.85 | % | 15.52 | % |
Book value per common share | $ | 33.10 | $ | 32.97 | $ | 33.68 | $ | 33.52 | $ | 33.02 | $ | 32.04 |
Outstanding common shares
| 44,629,697 | 45,162,908 | 45,118,930 | 46,119,074 | 47,312,982 | 47,187,389 |
2022 | 2021 | |||||||||||
(Dollars in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||
Non-performing assets: | ||||||||||||
Loans 90 days past due: | ||||||||||||
Commercial real estate: | ||||||||||||
Commercial investor real estate | $ | - | $ | - | $ | - | $ | 14,830 | $ | - | $ | - |
Commercial owner-occupied real estate | - | - | - | - | - | - | ||||||
Commercial AD&C | - | - | - | 7,344 | - | - | ||||||
Commercial business | - | - | - | - | - | 31 | ||||||
Residential real estate: | ||||||||||||
Residential mortgage | 353 | 296 | 557 | 679 | 680 | 398 | ||||||
Residential construction | - | - | - | - | - | - | ||||||
Consumer | - | - | - | - | - | - | ||||||
Total loans 90 days past due
| 353 | 296 | 557 | 22,853 | 680 | 429 | ||||||
Non-accrual loans: | ||||||||||||
Commercial real estate: | ||||||||||||
Commercial investor real estate | 11,245 | 11,743 | 12,489 | 15,386 | 42,072 | 42,776 | ||||||
Commercial owner-occupied real estate | 7,869 | 8,083 | 9,306 | 9,854 | 8,183 | 8,316 | ||||||
Commercial AD&C | 1,353 | 1,081 | 650 | 1,022 | 14,489 | 14,975 | ||||||
Commercial business | 7,542 | 8,357 | 8,420 | 9,454 | 9,435 | 13,147 | ||||||
Residential real estate: | ||||||||||||
Residential mortgage | 7,305 | 8,148 | 8,441 | 9,511 | 9,440 | 9,593 | ||||||
Residential construction | 1 | 51 | 55 | 62 | 62 | - | ||||||
Consumer | 5,692 | 6,406 | 6,725 | 7,826 | 7,718 | 7,193 | ||||||
Total non-accrual loans | 41,007 | 43,869 | 46,086 | 53,115 | 91,399 | 96,000 | ||||||
Total restructured loans - accruing | 2,119 | 2,161 | 2,167 | 2,199 | 2,228 | 2,271 | ||||||
Total non-performing loans | 43,479 | 46,326 | 48,810 | 78,167 | 94,307 | 98,700 | ||||||
Other assets and other real estate owned (OREO) | 739 | 1,034 | 1,034 | 1,105 | 1,234 | 1,354 | ||||||
Total non-performing assets | $ | 44,218 | $ | 47,360 | $ | 49,844 | $ | 79,272 | $ | 95,541 | $ | 100,054 |
For the Quarter Ended, | ||||||||||||
(Dollars in thousands)
|
June 30, 2022 |
March 31, 2022 |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 | ||||||
Analysis of non-accrual loan activity: | ||||||||||||
Balance at beginning of period | $ | 43,869 | $ | 46,086 | $ | 53,115 | $ | 91,399 | $ | 96,000 | $ | 112,361 |
Non-accrual balances transferred to OREO
| - | - | - | - | (257) | - | ||||||
Non-accrual balances charged-off | (376) | (265) | (754) | (7,171) | (2,166) | (699) | ||||||
Net payments or draws | (3,234) | (2,787) | (5,786) | (36,526) | (3,693) | (16,028) | ||||||
Loans placed on non-accrual | 948 | 1,503 | 511 | 5,699 | 1,515 | 421 | ||||||
Non-accrual loans brought current | (200) | (668) | (1,000) | (286) | - | (55) | ||||||
Balance at end of period | $ | 41,007 | $ | 43,869 | $ | 46,086 | $ | 53,115 | $ | 91,399 | $ | 96,000 |
Analysis of allowance for credit losses:
| ||||||||||||
Balance at beginning of period | $ | 110,588 | $ | 109,145 | $ | 107,920 | $ | 123,961 | $ | 130,361 | $ | 165,367 |
Provision/ (credit) for credit losses | 3,046 | 1,635 | 1,585 | (8,229) | (4,204) | (34,708) | ||||||
Less loans charged-off, net of recoveries: | ||||||||||||
Commercial real estate: | ||||||||||||
Commercial investor real estate | (300) | (19) | (109) | 5,797 | (144) | (27) | ||||||
Commercial owner-occupied real estate | (12) | - | - | 136 | - | - | ||||||
Commercial AD&C | - | - | - | 2,007 | - | - | ||||||
Commercial business | 331 | 111 | 564 | (53) | 2,359 | 634 | ||||||
Residential real estate: | ||||||||||||
Residential mortgage | (9) | 120 | (80) | (49) | (11) | (270) | ||||||
Residential construction | (5) | - | (2) | (2) | (1) | - | ||||||
Consumer | (41) | (20) | (13) | (24) | (7) | (39) | ||||||
Net charge-offs | (36) | 192 | 360 | 7,812 | 2,196 | 298 | ||||||
Balance at the end of period | $ | 113,670 | $ | 110,588 | $ | 109,145 | $ | 107,920 | $ | 123,961 | $ | 130,361 |
Asset quality ratios: | ||||||||||||
Non-performing loans to total loans | 0.40 | % | 0.46 | % | 0.49 | % | 0.80 | % | 0.93 | % | 0.94 | % |
Non-performing assets to total assets | 0.33 | % | 0.37 | % | 0.40 | % | 0.61 | % | 0.74 | % | 0.78 | % |
Allowance for credit losses to loans | 1.05 | % | 1.09 | % | 1.10 | % | 1.11 | % | 1.23 | % | 1.25 | % |
Allowance for credit losses to non-performing loans | 261.44 | % | 238.72 | % | 223.61 | % | 138.06 | % | 131.44 | % | 132.08 | % |
Annualized net charge-offs/ (recoveries) to average loans | - | % | 0.01 | % | 0.01 | % | 0.31 | % | 0.09 | % | 0.01 | % |
Three Months Ended June 30, | ||||||||||||
2022 | 2021 | |||||||||||
(Dollars in thousands and tax-equivalent) |
Average
Balances
|
Interest (1)
|
Annualized
Average
Yield/Rate
|
Average
Balances
|
Interest (1)
|
Annualized
Average
Yield/Rate
| ||||||
Assets | ||||||||||||
Commercial investor real estate loans
| $ | 4,512,937 | $ | 45,148 | 4.01 | % | $ | 3,675,119 | $ | 38,411 | 4.19 | % |
Commercial owner-occupied real estate loans | 1,727,325 | 19,410 | 4.51 | 1,663,543 | 19,360 | 4.67 | ||||||
Commercial AD&C loans | 1,096,369 | 11,727 | 4.29 | 1,089,287 | 10,819 | 3.98 | ||||||
Commercial business loans | 1,334,350 | 15,820 | 4.76 | 2,225,885 | 25,248 | 4.55 | ||||||
Total commercial loans | 8,670,981 | 92,105 | 4.26 | 8,653,834 | 93,838 | 4.35 | ||||||
Residential mortgage loans | 1,070,836 | 8,878 | 3.32 | 994,899 | 8,634 | 3.47 | ||||||
Residential construction loans | 221,031 | 1,710 | 3.10 | 176,135 | 1,562 | 3.56 | ||||||
Consumer loans | 421,022 | 3,992 | 3.80 | 468,686 | 4,183 | 3.58 | ||||||
Total residential and consumer loans | 1,712,889 | 14,580 | 3.41 | 1,639,720 | 14,379 | 3.51 | ||||||
Total loans (2)
| 10,383,870 | 106,685 | 4.12 | 10,293,554 | 108,217 | 4.22 | ||||||
Loans held for sale | 12,744 | 145 | 4.56 | 66,958 | 549 | 3.28 | ||||||
Taxable securities | 1,195,129 | 4,630 | 1.55 | 1,052,229 | 4,373 | 1.66 | ||||||
Tax-advantaged securities | 491,052 | 3,082 | 2.51 | 430,676 | 2,567 | 2.38 | ||||||
Total investment securities (3)
| 1,686,181 | 7,712 | 1.83 | 1,482,905 | 6,940 | 1.87 | ||||||
Interest-bearing deposits with banks | 200,560 | 358 | 0.72 | 193,749 | 47 | 0.10 | ||||||
Federal funds sold | 479 | 1 | 0.81 | 535 | - | 0.10 | ||||||
Total interest-earning assets | 12,283,834 | 114,901 | 3.75 | 12,037,701 | 115,753 | 3.86 | ||||||
Less: allowance for credit losses
| (112,656) | (130,734) | ||||||||||
Cash and due from banks | 84,931 | 97,813 | ||||||||||
Premises and equipment, net | 62,422 | 55,718 | ||||||||||
Other assets | 673,161 | 737,857 | ||||||||||
Total assets | $ | 12,991,692 | $ | 12,798,355 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Interest-bearing demand deposits
| $ | 1,488,034 | $ | 414 | 0.11 | % | $ | 1,400,661 | $ | 226 | 0.06 | % |
Regular savings deposits | 559,906 | 22 | 0.02 | 476,999 | 66 | 0.06 | ||||||
Money market savings deposits | 3,376,742 | 1,497 | 0.18 | 3,364,348 | 1,254 | 0.15 | ||||||
Time deposits | 1,402,777 | 1,862 | 0.53 | 1,658,203 | 2,305 | 0.56 | ||||||
Total interest-bearing deposits | 6,827,459 | 3,795 | 0.22 | 6,900,211 | 3,851 | 0.22 | ||||||
Federal funds purchased | 53,055 | 166 | 1.26 | 19,506 | 3 | 0.06 | ||||||
Repurchase agreements | 122,728 | 35 | 0.11 | 136,286 | 40 | 0.12 | ||||||
Advances from FHLB | 3,809 | 17 | 1.74 | 73,626 | 373 | 2.03 | ||||||
Subordinated debt | 369,994 | 3,946 | 4.27 | 227,027 | 2,510 | 4.42 | ||||||
Total borrowings | 549,586 | 4,164 | 3.04 | 456,445 | 2,926 | 2.57 | ||||||
Total interest-bearing liabilities | 7,377,045 | 7,959 | 0.43 | 7,356,656 | 6,777 | 0.37 | ||||||
Noninterest-bearing demand deposits
| 4,001,762 | 3,763,135 | ||||||||||
Other liabilities | 144,849 | 154,689 | ||||||||||
Stockholders' equity | 1,468,036 | 1,523,875 | ||||||||||
Total liabilities and stockholders' equity | $ | 12,991,692 | $ | 12,798,355 | ||||||||
Tax-equivalent net interest income and spread
| $ | 106,942 | 3.32 | % | $ | 108,976 | 3.49 | % | ||||
Less: tax-equivalent adjustment | 992 | 930 | ||||||||||
Net interest income | $ | 105,950 | $ | 108,046 | ||||||||
Interest income/earning assets
| 3.75 | % | 3.86 | % | ||||||||
Interest expense/earning assets | 0.26 | 0.23 | ||||||||||
Net interest margin | 3.49 | % | 3.63 | % |
Six Months Ended June 30, | ||||||||||||
2022 | 2021 | |||||||||||
(Dollars in thousands and tax-equivalent) |
Average
Balances
|
Interest (1)
|
Annualized
Average
Yield/Rate
|
Average
Balances
|
Interest (1)
|
Annualized
Average
Yield/Rate
| ||||||
Assets | ||||||||||||
Commercial investor real estate loans
| $ | 4,367,400 | $ | 86,782 | 4.01 | % | $ | 3,654,760 | $ | 76,765 | 4.24 | % |
Commercial owner-occupied real estate loans | 1,705,562 | 37,842 | 4.47 | 1,651,282 | 38,040 | 4.65 | ||||||
Commercial AD&C loans | 1,099,498 | 22,320 | 4.09 | 1,069,552 | 21,215 | 4.00 | ||||||
Commercial business loans | 1,353,446 | 32,174 | 4.79 | 2,258,311 | 50,042 | 4.47 | ||||||
Total commercial loans | 8,525,906 | 179,118 | 4.24 | 8,633,905 | 186,062 | 4.35 | ||||||
Residential mortgage loans | 1,017,741 | 16,652 | 3.27 | 1,030,608 | 18,178 | 3.53 | ||||||
Residential construction loans | 209,264 | 3,267 | 3.15 | 178,020 | 3,168 | 3.59 | ||||||
Consumer loans | 422,929 | 7,581 | 3.61 | 482,555 | 8,728 | 3.65 | ||||||
Total residential and consumer loans | 1,649,934 | 27,500 | 3.34 | 1,691,183 | 30,074 | 3.57 | ||||||
Total loans (2)
| 10,175,840 | 206,618 | 4.09 | 10,325,088 | 216,136 | 4.22 | ||||||
Loans held for sale | 15,155 | 343 | 4.53 | 74,568 | 1,086 | 2.91 | ||||||
Taxable securities | 1,180,168 | 8,737 | 1.48 | 984,305 | 8,272 | 1.68 | ||||||
Tax-advantaged securities | 471,919 | 5,633 | 2.39 | 461,084 | 5,407 | 2.35 | ||||||
Total investment securities (3)
| 1,652,087 | 14,370 | 1.74 | 1,445,389 | 13,679 | 1.89 | ||||||
Interest-bearing deposits with banks | 229,257 | 471 | 0.41 | 187,954 | 93 | 0.10 | ||||||
Federal funds sold | 650 | 1 | 0.43 | 588 | - | 0.09 | ||||||
Total interest-earning assets | 12,072,989 | 221,803 | 3.70 | 12,033,587 | 230,994 | 3.87 | ||||||
Less: allowance for credit losses
| (111,302) | (146,892) | ||||||||||
Cash and due from banks | 75,750 | 102,013 | ||||||||||
Premises and equipment, net | 61,733 | 56,042 | ||||||||||
Other assets | 685,870 | 752,318 | ||||||||||
Total assets | $ | 12,785,040 | $ | 12,797,068 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Interest-bearing demand deposits
| $ | 1,494,809 | $ | 572 | 0.08 | % | $ | 1,383,253 | $ | 462 | 0.07 | % |
Regular savings deposits | 553,435 | 41 | 0.01 | 460,738 | 122 | 0.05 | ||||||
Money market savings deposits | 3,401,641 | 2,122 | 0.13 | 3,387,341 | 2,717 | 0.16 | ||||||
Time deposits | 1,355,615 | 3,353 | 0.50 | 1,693,179 | 5,380 | 0.64 | ||||||
Total interest-bearing deposits | 6,805,500 | 6,088 | 0.18 | 6,924,511 | 8,681 | 0.25 | ||||||
Federal funds purchased | 49,271 | 181 | 0.74 | 30,519 | 13 | 0.09 | ||||||
Repurchase agreements | 127,083 | 74 | 0.12 | 142,208 | 83 | 0.12 | ||||||
Advances from FHLB | 1,915 | 17 | 1.74 | 224,467 | 2,649 | 2.38 | ||||||
Subordinated debt | 287,164 | 6,184 | 4.31 | 227,050 | 5,012 | 4.41 | ||||||
Total borrowings | 465,433 | 6,456 | 2.80 | 624,244 | 7,757 | 2.51 | ||||||
Total interest-bearing liabilities | 7,270,933 | 12,544 | 0.35 | 7,548,755 | 16,438 | 0.44 | ||||||
Noninterest-bearing demand deposits
| 3,880,919 | 3,579,642 | ||||||||||
Other liabilities | 146,018 | 168,029 | ||||||||||
Stockholders' equity | 1,487,170 | 1,500,642 | ||||||||||
Total liabilities and stockholders' equity | $ | 12,785,040 | $ | 12,797,068 | ||||||||
Tax-equivalent net interest income and spread
| $ | 209,259 | 3.35 | % | $ | 214,556 | 3.43 | % | ||||
Less: tax-equivalent adjustment | 1,858 | 1,910 | ||||||||||
Net interest income | $ | 207,401 | $ | 212,646 | ||||||||
Interest income/earning assets
| 3.70 | % | 3.87 | % | ||||||||
Interest expense/earning assets | 0.21 | 0.27 | ||||||||||
Net interest margin | 3.49 | % | 3.60 | % |
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Disclaimer
Sandy Spring Bancorp Inc. published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 14:33:14 UTC.