10/28/2024 | Press release | Distributed by Public on 10/28/2024 05:36
(dollars in thousands) (unaudited) | 9/30/2024 | 6/30/2024 | 9/30/2023 | |||||||||
Balance | Percentage | Balance | Percentage | Balance | Percentage | |||||||
Commercial real estate ("CRE") loans | $ | 8,630,757 | 63.3 | % | $ | 8,679,515 | 63.6 | % | $ | 8,972,886 | 62.6 | % |
Commercial and industrial ("C&I") loans | 3,901,368 | 28.6 | % | 3,854,284 | 28.3 | % | 4,450,341 | 31.1 | % | |||
Residential mortgage and other loans | 1,085,863 | 7.9 | % | 1,033,203 | 7.6 | % | 882,966 | 6.2 | % | |||
Loans receivable | 13,617,988 | 99.8 | % | 13,567,002 | 99.5 | % | 14,306,193 | 99.9 | % | |||
Loans held for sale | 25,714 | 0.2 | % | 68,316 | 0.5 | % | 19,502 | 0.1 | % | |||
Gross loans | $ | 13,643,702 | 100.0 | % | $ | 13,635,318 | 100.0 | % | $ | 14,325,695 | 100.0 | % |
(dollars in thousands) (unaudited) | 9/30/2024 | 6/30/2024 | 9/30/2023 | |||||||||
Balance | Percentage | Balance | Percentage | Balance | Percentage | |||||||
Noninterest bearing demand deposits | $ | 3,722,985 | 25.3 | % | $ | 3,671,192 | 24.9 | % | $ | 4,249,788 | 27.0 | % |
Money market, interest bearing demand, and savings deposits | 5,013,305 | 34.0 | % | 4,907,860 | 33.4 | % | 4,855,683 | 30.9 | % | |||
Time deposits | 5,993,208 | 40.7 | % | 6,132,419 | 41.7 | % | 6,634,388 | 42.1 | % | |||
Total deposits | $ | 14,729,498 | 100.0 | % | $ | 14,711,471 | 100.0 | % | $ | 15,739,859 | 100.0 | % |
Gross loan-to-deposit ratio | 92.6 | % | 92.7 | % | 91.0 | % |
(dollars in thousands) (unaudited) | 9/30/2024 | 6/30/2024 | 9/30/2023 | |||
Loans on nonaccrual status (1)
|
$ | 103,602 | $ | 67,003 | $ | 39,081 |
Accruing delinquent loans past due 90 days or more
|
226 | 273 | 21,579 | |||
Total nonperforming loans | 103,828 | 67,276 | 60,660 | |||
Other real estate owned | - | - | 1,043 | |||
Total nonperforming assets | $ | 103,828 | $ | 67,276 | $ | 61,703 |
Nonperforming assets/total assets | 0.60 | % | 0.39 | % | 0.31 | % |
For the Three Months Ended | ||||||
(dollars in thousands) (unaudited) | 9/30/2024 | 6/30/2024 | 9/30/2023 | |||
Net charge offs | $ | 5,749 | $ | 4,439 | $ | 30,987 |
Annualized net charge offs/average loans | 0.17 | % | 0.13 | % | 0.85 | % |
(dollars in thousands) (unaudited) | 9/30/2024 | 6/30/2024 | 9/30/2023 | |||
Allowance for credit losses | $ | 153,270 | $ | 156,019 | $ | 158,809 |
Allowance for credit losses/loans receivable | 1.13 | % | 1.15 | % | 1.11 | % |
(unaudited)
|
9/30/2024 | 6/30/2024 | 9/30/2023 | Minimum Guideline for "Well-Capitalized" |
Common Equity Tier 1 Capital Ratio | 13.06% | 12.70% | 11.67% | 6.50% |
Tier 1 Capital Ratio | 13.78% | 13.40% | 12.32% | 8.00% |
Total Capital Ratio | 14.80% | 14.41% | 13.23% | 10.00% |
Leverage Ratio | 11.61% | 11.61% | 9.83% | 5.00% |
(unaudited) | 9/30/2024 | 6/30/2024 | 9/30/2023 |
TCE per share | $14.10 | $13.61 | $13.01 |
TCE ratio | 10.08% | 9.72% | 7.96% |
Julianna Balicka
|
Angie Yang
|
EVP & Chief Financial Officer |
SVP, Director of Investor Relations & Corporate Communications
|
213-235-3235
|
213-251-2219
|
Assets: | 9/30/2024 | 6/30/2024 | % change | 9/30/2023 | % change | |||||
Cash and due from banks | $ | 680,857 | $ | 654,044 | 4.1 | % | $ | 2,500,323 | (72.8) | % |
Investment securities | 2,177,301 | 2,172,859 | 0.2 | % | 2,260,837 | (3.7) | % | |||
Federal Home Loan Bank ("FHLB") stock and other investments | 57,158 | 61,528 | (7.1) | % | 60,433 | (5.4) | % | |||
Gross loans, including loans held for sale | 13,643,702 | 13,635,318 | 0.1 | % | 14,325,695 | (4.8) | % | |||
Allowance for credit losses | (153,270) | (156,019) | (1.8) | % | (158,809) | (3.5) | % | |||
Accrued interest receivable | 51,898 | 57,645 | (10.0) | % | 60,665 | (14.5) | % | |||
Premises and equipment, net | 51,543 | 50,919 | 1.2 | % | 51,764 | (0.4) | % | |||
Goodwill and intangible assets | 467,182 | 467,583 | (0.1) | % | 468,832 | (0.4) | % | |||
Other assets | 377,818 | 431,214 | (12.4) | % | 506,624 | (25.4) | % | |||
Total assets | $ | 17,354,189 | $ | 17,375,091 | (0.1) | % | $ | 20,076,364 | (13.6) | % |
Liabilities: | ||||||||||
Deposits | $ | 14,729,498 | $ | 14,711,471 | 0.1 | % | $ | 15,739,859 | (6.4) | % |
FHLB and Federal Reserve Bank ("FRB") borrowings | 100,000 | 170,000 | (41.2) | % | 1,795,726 | (94.4) | % | |||
Subordinated debentures and convertible notes, net | 109,249 | 108,918 | 0.3 | % | 107,949 | 1.2 | % | |||
Accrued interest payable | 107,017 | 86,779 | 23.3 | % | 166,831 | (35.9) | % | |||
Other liabilities | 138,640 | 186,641 | (25.7) | % | 235,575 | (41.1) | % | |||
Total liabilities | $ | 15,184,404 | $ | 15,263,809 | (0.5) | % | $ | 18,045,940 | (15.9) | % |
Stockholders' Equity: | ||||||||||
Common stock, $0.001 par value | $ | 138 | $ | 138 | - | % | $ | 137 | 0.7 | % |
Additional paid-in capital | 1,442,993 | 1,440,963 | 0.1 | % | 1,436,769 | 0.4 | % | |||
Retained earnings | 1,174,100 | 1,167,978 | 0.5 | % | 1,140,870 | 2.9 | % | |||
Treasury stock, at cost | (264,667) | (264,667) | - | % | (264,667) | - | % | |||
Accumulated other comprehensive loss, net | (182,779) | (233,130) | 21.6 | % | (282,685) | 35.3 | % | |||
Total stockholders' equity | 2,169,785 | 2,111,282 | 2.8 | % | 2,030,424 | 6.9 | % | |||
Total liabilities and stockholders' equity | $ | 17,354,189 | $ | 17,375,091 | (0.1) | % | $ | 20,076,364 | (13.6) | % |
Common stock shares - authorized | 300,000,000 | 300,000,000 | 150,000,000 | |||||||
Common stock shares - outstanding | 120,737,908 | 120,731,342 | 120,026,220 | |||||||
Treasury stock shares | 17,382,835 | 17,382,835 | 17,382,835 |
Three Months Ended | Nine Months Ended | |||||||||||||||
9/30/2024 | 6/30/2024 | % change | 9/30/2023 | % change | 9/30/2024 | 9/30/2023 | % change | |||||||||
Interest and fees on loans | $ | 210,022 | $ | 209,683 | - | % | $ | 229,937 | (9) | % | $ | 633,331 | $ | 671,543 | (6) | % |
Interest on investment securities | 16,741 | 16,829 | (1) | % | 17,006 | (2) | % | 51,619 | 47,665 | 8 | % | |||||
Interest on cash and deposits at other banks | 7,507 | 5,284 | 42 | % | 28,115 | (73) | % | 39,974 | 58,332 | (31) | % | |||||
Interest on other investments and FHLB dividends | 814 | 805 | 1 | % | 735 | 11 | % | 2,435 | 2,114 | 15 | % | |||||
Total interest income | 235,084 | 232,601 | 1 | % | 275,793 | (15) | % | 727,359 | 779,654 | (7) | % | |||||
Interest on deposits | 127,193 | 122,577 | 4 | % | 117,854 | 8 | % | 373,803 | 319,926 | 17 | % | |||||
Interest on borrowings | 3,082 | 4,164 | (26) | % | 22,561 | (86) | % | 27,840 | 59,783 | (53) | % | |||||
Total interest expense | 130,275 | 126,741 | 3 | % | 140,415 | (7) | % | 401,643 | 379,709 | 6 | % | |||||
Net interest income before provision | 104,809 | 105,860 | (1) | % | 135,378 | (23) | % | 325,716 | 399,945 | (19) | % | |||||
Provision for credit losses | 3,280 | 1,400 | 134 | % | 16,862 | (81) | % | 7,280 | 29,192 | (75) | % | |||||
Net interest income after provision | 101,529 | 104,460 | (3) | % | 118,516 | (14) | % | 318,436 | 370,753 | (14) | % | |||||
Service fees on deposit accounts | 2,651 | 2,681 | (1) | % | 2,415 | 10 | % | 7,919 | 6,961 | 14 | % | |||||
Net gains on sales of SBA loans | 2,722 | 1,980 | 37 | % | - | 100 | % | 4,702 | 4,097 | 15 | % | |||||
Net (losses) gains on sales of securities available for sale | (326) | 425 | N/A | - | 100 | % | 99 | - | 100 | % | ||||||
Other income and fees | 6,792 | 5,985 | 13 | % | 5,890 | 15 | % | 18,476 | 25,239 | (27) | % | |||||
Total noninterest income | 11,839 | 11,071 | 7 | % | 8,305 | 43 | % | 31,196 | 36,297 | (14) | % | |||||
Salaries and employee benefits | 44,160 | 44,107 | - | % | 51,033 | (13) | % | 135,844 | 160,507 | (15) | % | |||||
Occupancy | 6,940 | 6,906 | - | % | 7,149 | (3) | % | 20,632 | 21,637 | (5) | % | |||||
Furniture and equipment | 5,341 | 5,475 | (2) | % | 5,625 | (5) | % | 16,156 | 16,076 | - | % | |||||
Data processing and communications | 3,112 | 2,997 | 4 | % | 2,891 | 8 | % | 9,099 | 8,630 | 5 | % | |||||
FDIC assessment | 2,200 | 3,003 | (27) | % | 3,683 | (40) | % | 8,129 | 10,155 | (20) | % | |||||
FDIC special assessment | - | (309) | (100) | % | - | - | % | 691 | - | 100 | % | |||||
Earned interest credit | 6,869 | 6,139 | 12 | % | 6,377 | 8 | % | 18,842 | 15,894 | 19 | % | |||||
Restructuring-related costs | 197 | 576 | (66) | % | 500 | (61) | % | 1,175 | 500 | 135 | % | |||||
Merger-related costs | 1,236 | 1,589 | (22) | % | - | 100 | % | 3,869 | - | 100 | % | |||||
Other noninterest expense | 11,213 | 10,504 | 7 | % | 9,553 | 17 | % | 32,657 | 29,369 | 11 | % | |||||
Total noninterest expense | 81,268 | 80,987 | - | % | 86,811 | (6) | % | 247,094 | 262,768 | (6) | % | |||||
Income before income taxes | 32,100 | 34,544 | (7) | % | 40,010 | (20) | % | 102,538 | 144,282 | (29) | % | |||||
Income tax provision | 7,941 | 9,274 | (14) | % | 9,961 | (20) | % | 27,245 | 37,090 | (27) | % | |||||
Net income | $ | 24,159 | $ | 25,270 | (4) | % | $ | 30,049 | (20) | % | $ | 75,293 | $ | 107,192 | (30) | % |
Earnings per common share - diluted | $ | 0.20 | $ | 0.21 | $ | 0.25 | $ | 0.62 | $ | 0.89 | ||||||
Weighted average shares outstanding - diluted | 121,159,977 | 120,939,429 | 120,374,618 | 121,027,793 | 120,249,952 |
For the Three Months Ended |
For the Nine Months Ended
|
|||||||||
Profitability measures (annualized): | 9/30/2024 | 6/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | |||||
Return on average assets ("ROA") | 0.56 | % | 0.59 | % | 0.60 | % | 0.56 | % | 0.72 | % |
ROA excluding notable items (1)
|
0.58 | % | 0.62 | % | 0.61 | % | 0.59 | % | 0.72 | % |
Return on average equity ("ROE") | 4.52 | % | 4.82 | % | 5.78 | % | 4.73 | % | 6.92 | % |
ROE excluding notable items (1)
|
4.71 | % | 5.07 | % | 5.85 | % | 4.99 | % | 6.94 | % |
Return on average tangible common equity ("ROTCE") (1)
|
5.78 | % | 6.20 | % | 7.47 | % | 6.07 | % | 8.95 | % |
ROTCE excluding notable items (1)
|
6.02 | % | 6.53 | % | 7.55 | % | 6.40 | % | 8.98 | % |
Net interest margin | 2.55 | % | 2.62 | % | 2.83 | % | 2.57 | % | 2.84 | % |
Efficiency ratio (not annualized) | 69.67 | % | 69.26 | % | 60.42 | % | 69.23 | % | 60.23 | % |
Efficiency ratio excluding notable items (not annualized) (1)
|
68.44 | % | 67.67 | % | 60.07 | % | 67.62 | % | 60.12 | % |
(1) ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11.
|
||||||||||
Three Months Ended | ||||||||||||||||||
9/30/2024 | 6/30/2024 | 9/30/2023 | ||||||||||||||||
Interest | Annualized | Interest | Annualized | Interest | Annualized | |||||||||||||
Average | Income/ | Average | Average | Income/ | Average | Average | Income/ | Average | ||||||||||
Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | ||||||||||
INTEREST EARNING ASSETS: | ||||||||||||||||||
Loans, including loans held for sale | $ | 13,574,539 | $ | 210,022 | 6.16 | % | $ | 13,591,936 | $ | 209,683 | 6.20 | % | $ | 14,550,106 | $ | 229,937 | 6.27 | % |
Investment securities | 2,182,847 | 16,741 | 3.05 | % | 2,175,379 | 16,829 | 3.11 | % | 2,275,133 | 17,006 | 2.97 | % | ||||||
Interest earning cash and deposits at other banks | 570,754 | 7,507 | 5.23 | % | 428,062 | 5,284 | 4.96 | % | 2,106,469 | 28,115 | 5.30 | % | ||||||
FHLB stock and other investments | 48,956 | 814 | 6.61 | % | 48,463 | 805 | 6.68 | % | 47,316 | 735 | 6.16 | % | ||||||
Total interest earning assets | $ | 16,377,096 | $ | 235,084 | 5.71 | % | $ | 16,243,840 | $ | 232,601 | 5.76 | % | $ | 18,979,024 | $ | 275,793 | 5.77 | % |
INTEREST BEARING LIABILITIES: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Money market, interest bearing demand and savings | $ | 4,963,727 | $ | 50,707 | 4.06 | % | $ | 4,948,708 | $ | 48,708 | 3.96 | % | $ | 4,533,430 | $ | 38,814 | 3.40 | % |
Time deposits | 6,053,924 | 76,486 | 5.03 | % | 5,921,201 | 73,869 | 5.02 | % | 6,862,038 | 79,040 | 4.57 | % | ||||||
Total interest bearing deposits | 11,017,651 | 127,193 | 4.59 | % | 10,869,909 | 122,577 | 4.54 | % | 11,395,468 | 117,854 | 4.10 | % | ||||||
FHLB and FRB borrowings | 120,326 | 329 | 1.09 | % | 219,402 | 1,430 | 2.62 | % | 1,809,322 | 19,821 | 4.35 | % | ||||||
Subordinated debentures and convertible notes | 105,152 | 2,753 | 10.24 | % | 104,822 | 2,734 | 10.32 | % | 103,873 | 2,740 | 10.32 | % | ||||||
Total interest bearing liabilities | $ | 11,243,129 | $ | 130,275 | 4.61 | % | $ | 11,194,133 | $ | 126,741 | 4.55 | % | $ | 13,308,663 | $ | 140,415 | 4.19 | % |
Noninterest bearing demand deposits | 3,704,088 | 3,666,416 | 4,312,117 | |||||||||||||||
Total funding liabilities/cost of funds | $ | 14,947,217 | 3.47 | % | $ | 14,860,549 | 3.43 | % | $ | 17,620,780 | 3.16 | % | ||||||
Net interest income/net interest spread | $ | 104,809 | 1.10 | % | $ | 105,860 | 1.21 | % | $ | 135,378 | 1.58 | % | ||||||
Net interest margin | 2.55 | % | 2.62 | % | 2.83 | % | ||||||||||||
Cost of deposits: | ||||||||||||||||||
Noninterest bearing demand deposits | $ | 3,704,088 | $ | - | - | % | $ | 3,666,416 | $ | - | - | % | $ | 4,312,117 | $ | - | - | % |
Interest bearing deposits | 11,017,651 | 127,193 | 4.59 | % | 10,869,909 | 122,577 | 4.54 | % | 11,395,468 | 117,854 | 4.10 | % | ||||||
Total deposits | $ | 14,721,739 | $ | 127,193 | 3.44 | % | $ | 14,536,325 | $ | 122,577 | 3.39 | % | $ | 15,707,585 | $ | 117,854 | 2.98 | % |
Nine Months Ended | ||||||||||||
9/30/2024 | 9/30/2023 | |||||||||||
Interest | Annualized | Interest | Annualized | |||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||
Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | |||||||
INTEREST EARNING ASSETS: | ||||||||||||
Loans, including loans held for sale | $ | 13,637,335 | $ | 633,331 | 6.20 | % | $ | 14,961,058 | $ | 671,543 | 6.00 | % |
Investment securities | 2,224,972 | 51,619 | 3.10 | % | 2,255,839 | 47,665 | 2.83 | % | ||||
Interest earning cash and deposits at other banks | 1,004,606 | 39,974 | 5.32 | % | 1,531,561 | 58,332 | 5.09 | % | ||||
FHLB stock and other investments | 48,520 | 2,435 | 6.70 | % | 47,135 | 2,114 | 6.00 | % | ||||
Total interest earning assets | $ | 16,915,433 | $ | 727,359 | 5.74 | % | $ | 18,795,593 | $ | 779,654 | 5.55 | % |
INTEREST BEARING LIABILITIES: | ||||||||||||
Deposits: | ||||||||||||
Money market, interest bearing demand and savings | $ | 4,994,958 | $ | 149,560 | 4.00 | % | $ | 4,871,624 | $ | 116,090 | 3.19 | % |
Time deposits | 5,987,121 | 224,243 | 5.00 | % | 6,436,645 | 203,836 | 4.23 | % | ||||
Total interest bearing deposits | 10,982,079 | 373,803 | 4.55 | % | 11,308,269 | 319,926 | 3.78 | % | ||||
FHLB and FRB borrowings | 672,332 | 19,612 | 3.90 | % | 1,558,493 | 50,141 | 4.30 | % | ||||
Subordinated debentures and convertible notes | 104,824 | 8,228 | 10.31 | % | 207,050 | 9,642 | 6.14 | % | ||||
Total interest bearing liabilities | $ | 11,759,235 | $ | 401,643 | 4.56 | % | $ | 13,073,812 | $ | 379,709 | 3.88 | % |
Noninterest bearing demand deposits | 3,724,716 | 4,445,740 | ||||||||||
Total funding liabilities/cost of funds | $ | 15,483,951 | 3.46 | % | $ | 17,519,552 | 2.90 | % | ||||
Net interest income/net interest spread | $ | 325,716 | 1.18 | % | $ | 399,945 | 1.67 | % | ||||
Net interest margin | 2.57 | % | 2.84 | % | ||||||||
Cost of deposits: | ||||||||||||
Noninterest bearing demand deposits | $ | 3,724,716 | $ | - | - | % | $ | 4,445,740 | $ | - | - | % |
Interest bearing deposits | 10,982,079 | 373,803 | 4.55 | % | 11,308,269 | 319,926 | 3.78 | % | ||||
Total deposits | $ | 14,706,795 | $ | 373,803 | 3.40 | % | $ | 15,754,009 | $ | 319,926 | 2.72 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||
AVERAGE BALANCES: | 9/30/2024 | 6/30/2024 | % change | 9/30/2023 | % change | 9/30/2024 | 9/30/2023 | % change | ||||||||
Gross loans, including loans held for sale | $ | 13,574,539 | $ | 13,591,936 | - | % | $ | 14,550,106 | (7) | % | $ | 13,637,335 | $ | 14,961,058 | (9) | % |
Investment securities | 2,182,847 | 2,175,379 | - | % | 2,275,133 | (4) | % | 2,224,972 | 2,255,839 | (1) | % | |||||
Interest earning cash and deposits at other banks | 570,754 | 428,062 | 33 | % | 2,106,469 | (73) | % | 1,004,606 | 1,531,561 | (34) | % | |||||
Interest earning assets | 16,377,096 | 16,243,840 | 1 | % | 18,979,024 | (14) | % | 16,915,433 | 18,795,593 | (10) | % | |||||
Goodwill and intangible assets | 467,419 | 467,822 | - | % | 469,079 | - | % | 467,822 | 469,525 | - | % | |||||
Total assets | 17,369,169 | 17,256,638 | 1 | % | 20,059,304 | (13) | % | 17,920,176 | 19,875,322 | (10) | % | |||||
Noninterest bearing demand deposits | 3,704,088 | 3,666,416 | 1 | % | 4,312,117 | (14) | % | 3,724,716 | 4,445,740 | (16) | % | |||||
Interest bearing deposits | 11,017,651 | 10,869,909 | 1 | % | 11,395,468 | (3) | % | 10,982,079 | 11,308,269 | (3) | % | |||||
Total deposits | 14,721,739 | 14,536,325 | 1 | % | 15,707,585 | (6) | % | 14,706,795 | 15,754,009 | (7) | % | |||||
Interest bearing liabilities | 11,243,129 | 11,194,133 | - | % | 13,308,663 | (16) | % | 11,759,235 | 13,073,812 | (10) | % | |||||
Stockholders' equity | 2,139,861 | 2,097,108 | 2 | % | 2,079,092 | 3 | % | 2,121,169 | 2,066,157 | 3 | % | |||||
LOAN PORTFOLIO COMPOSITION: | 9/30/2024 | 6/30/2024 | % change | 9/30/2023 | % change | |||||||||||
Commercial real estate ("CRE") loans | $ | 8,630,757 | $ | 8,679,515 | (1) | % | $ | 8,972,886 | (4) | % | ||||||
Commercial and industrial ("C&I") loans | 3,901,368 | 3,854,284 | 1 | % | 4,450,341 | (12) | % | |||||||||
Residential mortgage and other loans | 1,085,863 | 1,033,203 | 5 | % | 882,966 | 23 | % | |||||||||
Loans receivable | 13,617,988 | 13,567,002 | - | % | 14,306,193 | (5) | % | |||||||||
Loans held for sale | 25,714 | 68,316 | (62) | % | 19,502 | 32 | % | |||||||||
Gross loans | 13,643,702 | 13,635,318 | - | % | 14,325,695 | (5) | % | |||||||||
CRE LOANS BY PROPERTY TYPE: | 9/30/2024 | 6/30/2024 | % change | 9/30/2023 | % change | |||||||||||
Multi-tenant retail | $ | 1,640,769 | $ | 1,659,083 | (1) | % | $ | 1,745,430 | (6) | % | ||||||
Industrial warehouses | 1,244,891 | 1,249,255 | - | % | 1,254,643 | (1) | % | |||||||||
Multifamily | 1,204,734 | 1,199,215 | - | % | 1,234,934 | (2) | % | |||||||||
Gas stations and car washes | 1,021,537 | 1,007,680 | 1 | % | 1,037,621 | (2) | % | |||||||||
Mixed-use facilities | 826,045 | 844,993 | (2) | % | 813,571 | 2 | % | |||||||||
Hotels/motels | 800,707 | 795,253 | 1 | % | 826,732 | (3) | % | |||||||||
Single-tenant retail | 663,178 | 655,540 | 1 | % | 671,921 | (1) | % | |||||||||
Office | 396,131 | 403,861 | (2) | % | 454,695 | (13) | % | |||||||||
All other | 832,765 | 864,635 | (4) | % | 933,339 | (11) | % | |||||||||
Total CRE loans | $ | 8,630,757 | $ | 8,679,515 | (1) | % | $ | 8,972,886 | (4) | % | ||||||
DEPOSIT COMPOSITION: | 9/30/2024 | 6/30/2024 | % change | 9/30/2023 | % change | |||||||||||
Noninterest bearing demand deposits | $ | 3,722,985 | $ | 3,671,192 | 1 | % | $ | 4,249,788 | (12) | % | ||||||
Money market, interest bearing demand, and savings | 5,013,305 | 4,907,860 | 2 | % | 4,855,683 | 3 | % | |||||||||
Time deposits | 5,993,208 | 6,132,419 | (2) | % | 6,634,388 | (10) | % | |||||||||
Total deposits | $ | 14,729,498 | $ | 14,711,471 | - | % | $ | 15,739,859 | (6) | % |
CAPITAL & CAPITAL RATIOS: | 9/30/2024 | 6/30/2024 | 9/30/2023 | |||||||||||
Total stockholders' equity | $ | 2,169,785 | $ | 2,111,282 | $ | 2,030,424 | ||||||||
Total capital | $ | 2,143,477 | $ | 2,137,513 | $ | 2,105,754 | ||||||||
Common equity tier 1 ratio | 13.06 | % | 12.70 | % | 11.67 | % | ||||||||
Tier 1 capital ratio | 13.78 | % | 13.40 | % | 12.32 | % | ||||||||
Total capital ratio | 14.80 | % | 14.41 | % | 13.23 | % | ||||||||
Leverage ratio | 11.61 | % | 11.61 | % | 9.83 | % | ||||||||
Total risk weighted assets | $ | 14,478,900 | $ | 14,828,905 | $ | 15,912,792 | ||||||||
Book value per common share | $ | 17.97 | $ | 17.49 | $ | 16.92 | ||||||||
Tangible common equity ("TCE") per share (1)
|
$ | 14.10 | $ | 13.61 | $ | 13.01 | ||||||||
TCE ratio(1)
|
10.08 | % | 9.72 | % | 7.96 | % | ||||||||
(1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
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ALLOWANCE FOR CREDIT LOSSES CHANGES: | Three Months Ended | Nine Months Ended | ||||||||||||
9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||
Balance at beginning of period | $ | 156,019 | $ | 158,758 | $ | 158,694 | $ | 158,809 | $ | 172,996 | $ | 158,694 | $ | 162,359 |
ASU 2022-02 day 1 adoption impact | - | - | - | - | - | - | (407) | |||||||
Provision for credit losses on loans | 3,000 | 1,700 | 3,600 | 1,700 | 16,800 | 8,300 | 27,400 | |||||||
Recoveries | 534 | 2,099 | 1,184 | 306 | 2,938 | 3,817 | 4,856 | |||||||
Charge offs | (6,283) | (6,538) | (4,720) | (2,121) | (33,925) | (17,541) | (35,399) | |||||||
Balance at end of period | $ | 153,270 | $ | 156,019 | $ | 158,758 | $ | 158,694 | $ | 158,809 | $ | 153,270 | $ | 158,809 |
9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | ||||||||||
Allowance for unfunded loan commitments | $ | 2,823 | $ | 2,543 | $ | 2,843 | $ | 3,843 | $ | 3,143 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||
9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||
Provision for credit losses on loans | $ | 3,000 | $ | 1,700 | $ | 3,600 | $ | 1,700 | $ | 16,800 | $ | 8,300 | $ | 27,400 |
Provision (credit) for unfunded loan commitments | 280 | (300) | (1,000) | 700 | 62 | (1,020) | 1,792 | |||||||
Provision for credit losses | $ | 3,280 | $ | 1,400 | $ | 2,600 | $ | 2,400 | $ | 16,862 | $ | 7,280 | $ | 29,192 |
Three Months Ended | Nine Months Ended | |||||||||||||
NET LOAN CHARGE OFFS (RECOVERIES): | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 9/30/2024 | 9/30/2023 | |||||||
CRE loans | $ | 372 | $ | 514 | $ | (497) | $ | 1,560 | $ | (2,227) | $ | 389 | $ | (1,898) |
C&I loans | 5,287 | 3,900 | 4,072 | 138 | 33,145 | 13,259 | 32,250 | |||||||
Residential mortgage and other loans | 90 | 25 | (39) | 117 | 69 | 76 | 191 | |||||||
Net loan charge offs | $ | 5,749 | $ | 4,439 | $ | 3,536 | $ | 1,815 | $ | 30,987 | $ | 13,724 | $ | 30,543 |
Net charge offs/average loans (annualized) | 0.17 | % | 0.13 | % | 0.10 | % | 0.05 | % | 0.85 | % | 0.13 | % | 0.27 | % |
NONPERFORMING ASSETS: | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||
Loans on nonaccrual status (1)
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$ | 103,602 | $ | 67,003 | $ | 59,526 | $ | 45,204 | $ | 39,081 |
Accruing delinquent loans past due 90 days or more | 226 | 273 | 47,290 | 261 | 21,579 | |||||
Total nonperforming loans | 103,828 | 67,276 | 106,816 | 45,465 | 60,660 | |||||
Other real estate owned ("OREO") | - | - | - | 63 | 1,043 | |||||
Total nonperforming assets | $ | 103,828 | $ | 67,276 | $ | 106,816 | $ | 45,528 | $ | 61,703 |
Nonperforming assets/total assets | 0.60 | % | 0.39 | % | 0.59 | % | 0.24 | % | 0.31 | % |
Nonperforming loans/loans receivable | 0.76 | % | 0.50 | % | 0.78 | % | 0.33 | % | 0.42 | % |
Nonaccrual loans/loans receivable | 0.76 | % | 0.49 | % | 0.43 | % | 0.33 | % | 0.27 | % |
Allowance for credit losses/loans receivable | 1.13 | % | 1.15 | % | 1.16 | % | 1.15 | % | 1.11 | % |
Allowance for credit losses/nonperforming loans | 147.62 | % | 231.91 | % | 148.63 | % | 349.05 | % | 261.80 | % |
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $13.1 million, $11.2 million, $10.9 million, $11.4 million, and $12.1 million, at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
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NONACCRUAL LOANS BY TYPE: | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||
CRE loans | $ | 72,228 | $ | 27,292 | $ | 37,836 | $ | 33,932 | $ | 26,687 |
C&I loans | 24,963 | 33,456 | 15,070 | 5,013 | 4,234 | |||||
Residential mortgage and other loans | 6,411 | 6,255 | 6,620 | 6,259 | 8,160 | |||||
Total nonaccrual loans | $ | 103,602 | $ | 67,003 | $ | 59,526 | $ | 45,204 | $ | 39,081 |
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||
30 - 59 days past due | $ | 10,746 | $ | 9,073 | $ | 2,273 | $ | 2,833 | $ | 2,906 |
60 - 89 days past due | 1,539 | 552 | 313 | 1,289 | 506 | |||||
Total accruing delinquent loans 30-89 days past due | $ | 12,285 | $ | 9,625 | $ | 2,586 | $ | 4,122 | $ | 3,412 |
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||
CRE loans | $ | 816 | $ | 5,586 | $ | 1,639 | $ | 2,160 | $ | 611 |
C&I loans | 9,037 | 2,530 | 551 | 1,643 | 1,168 | |||||
Residential mortgage and other loans | 2,432 | 1,509 | 396 | 319 | 1,633 | |||||
Total accruing delinquent loans 30-89 days past due | $ | 12,285 | $ | 9,625 | $ | 2,586 | $ | 4,122 | $ | 3,412 |
CRITICIZED LOANS: | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||
Special mention loans | $ | 184,443 | $ | 204,167 | $ | 215,183 | $ | 178,992 | $ | 186,600 |
Substandard loans | 314,880 | 243,635 | 206,350 | 143,449 | 174,161 | |||||
Doubtful/loss | 6,403 | - | - | - | - | |||||
Total criticized loans | $ | 505,726 | $ | 447,802 | $ | 421,533 | $ | 322,441 | $ | 360,761 |
Reconciliation of GAAP financial measures to non-GAAP financial measures | ||||||||||
Management reviews select non-GAAP financial measures in evaluating the Company's and the Bank's financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below.
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TANGIBLE COMMON EQUITY ("TCE") | 9/30/2024 | 6/30/2024 | 9/30/2023 | |||||||
Total stockholders' equity | $ | 2,169,785 | $ | 2,111,282 | $ | 2,030,424 | ||||
Less: Goodwill and core deposit intangible assets, net | (467,182) | (467,583) | (468,832) | |||||||
TCE | $ | 1,702,603 | $ | 1,643,699 | $ | 1,561,592 | ||||
Total assets | $ | 17,354,189 | $ | 17,375,091 | $ | 20,076,364 | ||||
Less: Goodwill and core deposit intangible assets, net | (467,182) | (467,583) | (468,832) | |||||||
Tangible assets | $ | 16,887,007 | $ | 16,907,508 | $ | 19,607,532 | ||||
TCE ratio | 10.08 | % | 9.72 | % | 7.96 | % | ||||
Common shares outstanding | 120,737,908 | 120,731,342 | 120,026,220 | |||||||
TCE per share | $ | 14.10 | $ | 13.61 | $ | 13.01 | ||||
Three Months Ended | Nine Months Ended | |||||||||
RETURN ON AVERAGE TANGIBLE COMMON EQUITY | 9/30/2024 | 6/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | |||||
Average stockholders' equity | $ | 2,139,861 | $ | 2,097,108 | $ | 2,079,092 | $ | 2,121,169 | $ | 2,066,157 |
Less: Average goodwill and core deposit intangible assets, net | (467,419) | (467,822) | (469,079) | (467,822) | (469,525) | |||||
Average TCE | $ | 1,672,442 | $ | 1,629,286 | $ | 1,610,013 | $ | 1,653,347 | $ | 1,596,632 |
Net income | $ | 24,159 | $ | 25,270 | $ | 30,049 | $ | 75,293 | $ | 107,192 |
ROTCE (annualized) | 5.78 | % | 6.20 | % | 7.47 | % | 6.07 | % | 8.95 | % |
Three Months Ended | Nine Months Ended | |||||||||
PROFITABILITY RATIOS EXCLUDING NOTABLE ITEMS | 9/30/2024 | 6/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | |||||
Net income | $ | 24,159 | $ | 25,270 | $ | 30,049 | $ | 75,293 | $ | 107,192 |
Notable items: | ||||||||||
FDIC special assessment expense | - | (309) | - | 691 | - | |||||
Restructuring-related costs | 197 | 576 | 500 | 1,175 | 500 | |||||
Merger-related costs | 1,236 | 1,589 | - | 3,869 | - | |||||
Total notable items | 1,433 | 1,856 | 500 | 5,735 | 500 | |||||
Less: tax provision | 421 | 547 | 147 | 1,687 | 147 | |||||
Total notable items, net of tax provision | $ | 1,012 | $ | 1,309 | $ | 353 | $ | 4,048 | $ | 353 |
Net income excluding notable items | $ | 25,171 | $ | 26,579 | $ | 30,402 | $ | 79,341 | $ | 107,545 |
Diluted common shares | 121,159,977 | 120,939,429 | 120,374,618 | 121,027,793 | 120,249,952 | |||||
EPS excluding notable items | $ | 0.21 | $ | 0.22 | $ | 0.25 | $ | 0.66 | $ | 0.89 |
Average Assets | $ | 17,369,169 | $ | 17,256,638 | $ | 20,059,304 | $ | 17,920,176 | $ | 19,875,322 |
ROA excluding notable items | 0.58 | % | 0.62 | % | 0.61 | % | 0.59 | % | 0.72 | % |
Average Equity | $ | 2,139,861 | $ | 2,097,108 | $ | 2,079,092 | $ | 2,121,169 | $ | 2,066,157 |
ROE excluding notable items | 4.71 | % | 5.07 | % | 5.85 | % | 4.99 | % | 6.94 | % |
Average TCE | $ | 1,672,442 | $ | 1,629,286 | $ | 1,610,013 | $ | 1,653,347 | $ | 1,596,632 |
ROTCE excluding notable items | 6.02 | % | 6.53 | % | 7.55 | % | 6.40 | % | 8.98 | % |
Three Months Ended | Nine Months Ended | |||||||||
EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS | 9/30/2024 | 6/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | |||||
Noninterest expense | $ | 81,268 | $ | 80,987 | $ | 86,811 | $ | 247,094 | $ | 262,768 |
Less: notable items: | ||||||||||
FDIC special assessment expense | - | 309 | - | (691) | - | |||||
Restructuring-related costs | (197) | (576) | (500) | (1,175) | (500) | |||||
Merger-related costs | (1,236) | (1,589) | - | (3,869) | - | |||||
Noninterest expense excluding notable items | $ | 79,835 | $ | 79,131 | $ | 86,311 | $ | 241,359 | $ | 262,268 |
Revenue | $ | 116,648 | $ | 116,931 | $ | 143,683 | $ | 356,912 | $ | 436,242 |
Efficiency ratio excluding notable items | 68.44 | % | 67.67 | % | 60.07 | % | 67.62 | % | 60.12 | % |