07/17/2024 | Press release | Distributed by Public on 07/17/2024 14:55
% or (1)
basis point (bp) change from
1st Quarter
2024
|
% or basis point (bp) change from 2nd Quarter 2023 |
|||||||||
Three Months Ended | ||||||||||
(Dollars in thousands, except per share data) | Jun 30, 2024 | Mar 31, 2024 | Jun 30, 2023 | |||||||
Net income | $ | 152,388 | $ | 187,294 | $ | 154,750 | (19) | % | (2) | % |
Pre-tax income, excluding provision for credit losses (non-GAAP) (2)
|
251,404 | 271,629 | 239,944 | (7) | 5 | |||||
Net income per common share - Diluted | 2.32 | 2.89 | 2.38 | (20) | (3) | |||||
Cash dividends declared per common share | 0.45 | 0.45 | 0.40 | - | 13 | |||||
Net revenue (3)
|
591,757 | 604,774 | 560,567 | (2) | 6 | |||||
Net interest income | 470,610 | 464,194 | 447,537 | 1 | 5 | |||||
Net interest margin | 3.50 | % | 3.57 | % | 3.64 | % | (7) | bps | (14) | bps |
Net interest margin - fully taxable-equivalent (non-GAAP) (2)
|
3.52 | 3.59 | 3.66 | (7) | (14) | |||||
Net overhead ratio (4)
|
1.53 | 1.39 | 1.58 | 14 | (5) | |||||
Return on average assets | 1.07 | 1.35 | 1.18 | (28) | (11) | |||||
Return on average common equity | 11.61 | 14.42 | 12.79 | (281) | (118) | |||||
Return on average tangible common equity (non-GAAP) (2)
|
13.49 | 16.75 | 15.12 | (326) | (163) | |||||
At end of period | ||||||||||
Total assets | $ | 59,781,516 | $ | 57,576,933 | $ | 54,286,176 | 15 | % | 10 | % |
Total loans (5)
|
44,675,531 | 43,230,706 | 41,023,408 | 13 | 9 | |||||
Total deposits | 48,049,026 | 46,448,858 | 44,038,707 | 14 | 9 | |||||
Total shareholders' equity | 5,536,628 | 5,436,400 | 5,041,912 | 7 | 10 |
Three Months Ended | Six Months Ended | |||||||||||||
(Dollars in thousands, except per share data) | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2023 | |||||||
Selected Financial Condition Data (at end of period): | ||||||||||||||
Total assets | $ | 59,781,516 | $ | 57,576,933 | $ | 56,259,934 | $ | 55,555,246 | $ | 54,286,176 | ||||
Total loans (1)
|
44,675,531 | 43,230,706 | 42,131,831 | 41,446,032 | 41,023,408 | |||||||||
Total deposits | 48,049,026 | 46,448,858 | 45,397,170 | 44,992,686 | 44,038,707 | |||||||||
Total shareholders' equity | 5,536,628 | 5,436,400 | 5,399,526 | 5,015,613 | 5,041,912 | |||||||||
Selected Statements of Income Data: | ||||||||||||||
Net interest income | $ | 470,610 | $ | 464,194 | $ | 469,974 | $ | 462,358 | $ | 447,537 | $ | 934,804 | $ | 905,532 |
Net revenue (2)
|
591,757 | 604,774 | 570,803 | 574,836 | 560,567 | 1,196,531 | 1,126,331 | |||||||
Net income | 152,388 | 187,294 | 123,480 | 164,198 | 154,750 | 339,682 | 334,948 | |||||||
Pre-tax income, excluding provision for credit losses (non-GAAP) (3)
|
251,404 | 271,629 | 208,151 | 244,781 | 239,944 | 523,033 | 506,539 | |||||||
Net income per common share - Basic | 2.35 | 2.93 | 1.90 | 2.57 | 2.41 | 5.28 | 5.26 | |||||||
Net income per common share - Diluted | 2.32 | 2.89 | 1.87 | 2.53 | 2.38 | 5.21 | 5.18 | |||||||
Cash dividends declared per common share | 0.45 | 0.45 | 0.40 | 0.40 | 0.40 | 0.90 | 0.80 | |||||||
Selected Financial Ratios and Other Data: | ||||||||||||||
Performance Ratios: | ||||||||||||||
Net interest margin | 3.50 | % | 3.57 | % | 3.62 | % | 3.60 | % | 3.64 | % | 3.53 | % | 3.72 | % |
Net interest margin - fully taxable-equivalent (non-GAAP) (3)
|
3.52 | 3.59 | 3.64 | 3.62 | 3.66 | 3.56 | 3.74 | |||||||
Non-interest income to average assets | 0.85 | 1.02 | 0.73 | 0.82 | 0.86 | 0.93 | 0.85 | |||||||
Non-interest expense to average assets | 2.38 | 2.41 | 2.62 | 2.41 | 2.44 | 2.40 | 2.39 | |||||||
Net overhead ratio (4)
|
1.53 | 1.39 | 1.89 | 1.59 | 1.58 | 1.46 | 1.54 | |||||||
Return on average assets | 1.07 | 1.35 | 0.89 | 1.20 | 1.18 | 1.21 | 1.29 | |||||||
Return on average common equity | 11.61 | 14.42 | 9.93 | 13.35 | 12.79 | 13.01 | 14.20 | |||||||
Return on average tangible common equity (non-GAAP) (3)
|
13.49 | 16.75 | 11.73 | 15.73 | 15.12 | 15.12 | 16.79 | |||||||
Average total assets | $ | 57,493,184 | $ | 55,602,695 | $ | 55,017,075 | $ | 54,381,981 | $ | 52,601,953 | $ | 56,547,939 | $ | 52,340,090 |
Average total shareholders' equity | 5,450,173 | 5,440,457 | 5,066,196 | 5,083,883 | 5,044,718 | 5,445,315 | 4,970,407 | |||||||
Average loans to average deposits ratio | 95.1 | % | 94.5 | % | 92.9 | % | 92.4 | % | 94.3 | % | 94.8 | % | 93.7 | % |
Period-end loans to deposits ratio | 93.0 | 93.1 | 92.8 | 92.1 | 93.2 | |||||||||
Common Share Data at end of period: | ||||||||||||||
Market price per common share | $ | 98.56 | $ | 104.39 | $ | 92.75 | $ | 75.50 | $ | 72.62 | ||||
Book value per common share | 82.97 | 81.38 | 81.43 | 75.19 | 75.65 | |||||||||
Tangible book value per common share (non-GAAP) (3)
|
72.01 | 70.40 | 70.33 | 64.07 | 64.50 | |||||||||
Common shares outstanding | 61,760,139 | 61,736,715 | 61,243,626 | 61,222,058 | 61,197,676 | |||||||||
Other Data at end of period: | ||||||||||||||
Common equity to assets ratio | 8.6 | % | 8.7 | % | 8.9 | % | 8.3 | % | 8.5 | % | ||||
Tangible common equity ratio (non-GAAP) (3)
|
7.5 | 7.6 | 7.7 | 7.1 | 7.4 | |||||||||
Tier 1 leverage ratio (5)
|
9.3 | 9.4 | 9.3 | 9.2 | 9.3 | |||||||||
Risk-based capital ratios: | ||||||||||||||
Tier 1 capital ratio (5)
|
10.2 | 10.3 | 10.3 | 10.2 | 10.1 | |||||||||
Common equity tier 1 capital ratio (5)
|
9.5 | 9.5 | 9.4 | 9.3 | 9.3 | |||||||||
Total capital ratio (5)
|
12.0 | 12.2 | 12.1 | 12.0 | 12.0 | |||||||||
Allowance for credit losses (6)
|
$ | 437,560 | $ | 427,504 | $ | 427,612 | $ | 399,531 | $ | 387,786 | ||||
Allowance for loan and unfunded lending-related commitment losses to total loans | 0.98 | % | 0.99 | % | 1.01 | % | 0.96 | % | 0.94 | % | ||||
Number of: | ||||||||||||||
Bank subsidiaries | 15 | 15 | 15 | 15 | 15 | |||||||||
Banking offices | 177 | 176 | 174 | 174 | 175 |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||
(In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||
Assets | ||||||||||
Cash and due from banks | $ | 415,462 | $ | 379,825 | $ | 423,404 | $ | 418,088 | $ | 513,858 |
Federal funds sold and securities purchased under resale agreements | 62 | 61 | 60 | 60 | 59 | |||||
Interest-bearing deposits with banks | 2,824,314 | 2,131,077 | 2,084,323 | 2,448,570 | 2,163,708 | |||||
Available-for-sale securities, at fair value | 4,329,957 | 4,387,598 | 3,502,915 | 3,611,835 | 3,492,481 | |||||
Held-to-maturity securities, at amortized cost | 3,755,924 | 3,810,015 | 3,856,916 | 3,909,150 | 3,564,473 | |||||
Trading account securities | 4,134 | 2,184 | 4,707 | 1,663 | 3,027 | |||||
Equity securities with readily determinable fair value | 112,173 | 119,777 | 139,268 | 134,310 | 116,275 | |||||
Federal Home Loan Bank and Federal Reserve Bank stock | 256,495 | 224,657 | 205,003 | 204,040 | 195,117 | |||||
Brokerage customer receivables | 13,682 | 13,382 | 10,592 | 14,042 | 15,722 | |||||
Mortgage loans held-for-sale, at fair value | 411,851 | 339,884 | 292,722 | 304,808 | 338,728 | |||||
Loans, net of unearned income | 44,675,531 | 43,230,706 | 42,131,831 | 41,446,032 | 41,023,408 | |||||
Allowance for loan losses | (363,719) | (348,612) | (344,235) | (315,039) | (302,499) | |||||
Net loans | 44,311,812 | 42,882,094 | 41,787,596 | 41,130,993 | 40,720,909 | |||||
Premises, software and equipment, net | 722,295 | 744,769 | 748,966 | 747,501 | 749,393 | |||||
Lease investments, net | 275,459 | 283,557 | 281,280 | 275,152 | 274,351 | |||||
Accrued interest receivable and other assets | 1,671,334 | 1,580,142 | 1,551,899 | 1,674,681 | 1,455,748 | |||||
Trade date securities receivable | - | - | 690,722 | - | - | |||||
Goodwill | 655,955 | 656,181 | 656,672 | 656,109 | 656,674 | |||||
Other acquisition-related intangible assets | 20,607 | 21,730 | 22,889 | 24,244 | 25,653 | |||||
Total assets | $ | 59,781,516 | $ | 57,576,933 | $ | 56,259,934 | $ | 55,555,246 | $ | 54,286,176 |
Liabilities and Shareholders' Equity | ||||||||||
Deposits: | ||||||||||
Non-interest-bearing | $ | 10,031,440 | $ | 9,908,183 | $ | 10,420,401 | $ | 10,347,006 | $ | 10,604,915 |
Interest-bearing | 38,017,586 | 36,540,675 | 34,976,769 | 34,645,680 | 33,433,792 | |||||
Total deposits | 48,049,026 | 46,448,858 | 45,397,170 | 44,992,686 | 44,038,707 | |||||
Federal Home Loan Bank advances | 3,176,309 | 2,676,751 | 2,326,071 | 2,326,071 | 2,026,071 | |||||
Other borrowings | 606,579 | 575,408 | 645,813 | 643,999 | 665,219 | |||||
Subordinated notes | 298,113 | 437,965 | 437,866 | 437,731 | 437,628 | |||||
Junior subordinated debentures | 253,566 | 253,566 | 253,566 | 253,566 | 253,566 | |||||
Accrued interest payable and other liabilities | 1,861,295 | 1,747,985 | 1,799,922 | 1,885,580 | 1,823,073 | |||||
Total liabilities | 54,244,888 | 52,140,533 | 50,860,408 | 50,539,633 | 49,244,264 | |||||
Shareholders' Equity: | ||||||||||
Preferred stock | 412,500 | 412,500 | 412,500 | 412,500 | 412,500 | |||||
Common stock | 61,825 | 61,798 | 61,269 | 61,244 | 61,219 | |||||
Surplus | 1,964,645 | 1,954,532 | 1,943,806 | 1,933,226 | 1,923,623 | |||||
Treasury stock | (5,760) | (5,757) | (2,217) | (1,966) | (1,966) | |||||
Retained earnings | 3,615,616 | 3,498,475 | 3,345,399 | 3,253,332 | 3,120,626 | |||||
Accumulated other comprehensive loss | (512,198) | (485,148) | (361,231) | (642,723) | (474,090) | |||||
Total shareholders' equity | 5,536,628 | 5,436,400 | 5,399,526 | 5,015,613 | 5,041,912 | |||||
Total liabilities and shareholders' equity | $ | 59,781,516 | $ | 57,576,933 | $ | 56,259,934 | $ | 55,555,246 | $ | 54,286,176 |
Three Months Ended | Six Months Ended | |||||||||||||
(Dollars in thousands, except per share data) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Jun 30, 2024 | Jun 30, 2023 | |||||||
Interest income | ||||||||||||||
Interest and fees on loans | $ | 749,812 | $ | 710,341 | $ | 694,943 | $ | 666,260 | $ | 621,057 | $ | 1,460,153 | $ | 1,179,749 |
Mortgage loans held-for-sale | 5,434 | 4,146 | 4,318 | 4,767 | 4,178 | 9,580 | 7,706 | |||||||
Interest-bearing deposits with banks | 19,731 | 16,658 | 21,762 | 26,866 | 16,882 | 36,389 | 30,350 | |||||||
Federal funds sold and securities purchased under resale agreements | 17 | 19 | 578 | 1,157 | 1 | 36 | 71 | |||||||
Investment securities | 69,779 | 69,678 | 68,237 | 59,164 | 51,243 | 139,457 | 111,186 | |||||||
Trading account securities | 13 | 18 | 15 | 6 | 6 | 31 | 20 | |||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 4,974 | 4,478 | 3,792 | 3,896 | 3,544 | 9,452 | 7,224 | |||||||
Brokerage customer receivables | 219 | 175 | 203 | 284 | 265 | 394 | 560 | |||||||
Total interest income | 849,979 | 805,513 | 793,848 | 762,400 | 697,176 | 1,655,492 | 1,336,866 | |||||||
Interest expense | ||||||||||||||
Interest on deposits | 335,703 | 299,532 | 285,390 | 262,783 | 213,495 | 635,235 | 358,297 | |||||||
Interest on Federal Home Loan Bank advances | 24,797 | 22,048 | 18,316 | 17,436 | 17,399 | 46,845 | 36,534 | |||||||
Interest on other borrowings | 8,700 | 9,248 | 9,557 | 9,384 | 8,485 | 17,948 | 16,339 | |||||||
Interest on subordinated notes | 5,185 | 5,487 | 5,522 | 5,491 | 5,523 | 10,672 | 11,011 | |||||||
Interest on junior subordinated debentures | 4,984 | 5,004 | 5,089 | 4,948 | 4,737 | 9,988 | 9,153 | |||||||
Total interest expense | 379,369 | 341,319 | 323,874 | 300,042 | 249,639 | 720,688 | 431,334 | |||||||
Net interest income | 470,610 | 464,194 | 469,974 | 462,358 | 447,537 | 934,804 | 905,532 | |||||||
Provision for credit losses | 40,061 | 21,673 | 42,908 | 19,923 | 28,514 | 61,734 | 51,559 | |||||||
Net interest income after provision for credit losses | 430,549 | 442,521 | 427,066 | 442,435 | 419,023 | 873,070 | 853,973 | |||||||
Non-interest income | ||||||||||||||
Wealth management | 35,413 | 34,815 | 33,275 | 33,529 | 33,858 | 70,228 | 63,803 | |||||||
Mortgage banking | 29,124 | 27,663 | 7,433 | 27,395 | 29,981 | 56,787 | 48,245 | |||||||
Service charges on deposit accounts | 15,546 | 14,811 | 14,522 | 14,217 | 13,608 | 30,357 | 26,511 | |||||||
(Losses) gains on investment securities, net | (4,282) | 1,326 | 2,484 | (2,357) | 0 | (2,956) | 1,398 | |||||||
Fees from covered call options | 2,056 | 4,847 | 4,679 | 4,215 | 2,578 | 6,903 | 12,969 | |||||||
Trading gains (losses), net | 70 | 677 | (505) | 728 | 106 | 747 | 919 | |||||||
Operating lease income, net | 13,938 | 14,110 | 14,162 | 13,863 | 12,227 | 28,048 | 25,273 | |||||||
Other | 29,282 | 42,331 | 24,779 | 20,888 | 20,672 | 71,613 | 41,681 | |||||||
Total non-interest income | 121,147 | 140,580 | 100,829 | 112,478 | 113,030 | 261,727 | 220,799 | |||||||
Non-interest expense | ||||||||||||||
Salaries and employee benefits | 198,541 | 195,173 | 193,971 | 192,338 | 184,923 | 393,714 | 361,704 | |||||||
Software and equipment | 29,231 | 27,731 | 27,779 | 25,951 | 26,205 | 56,962 | 50,902 | |||||||
Operating lease equipment | 10,834 | 10,683 | 10,694 | 12,020 | 9,816 | 21,517 | 19,649 | |||||||
Occupancy, net | 19,585 | 19,086 | 18,102 | 21,304 | 19,176 | 38,671 | 37,662 | |||||||
Data processing | 9,503 | 9,292 | 8,892 | 10,773 | 9,726 | 18,795 | 19,135 | |||||||
Advertising and marketing | 17,436 | 13,040 | 17,166 | 18,169 | 17,794 | 30,476 | 29,740 | |||||||
Professional fees | 9,967 | 9,553 | 8,768 | 8,887 | 8,940 | 19,520 | 17,103 | |||||||
Amortization of other acquisition-related intangible assets | 1,122 | 1,158 | 1,356 | 1,408 | 1,499 | 2,280 | 2,734 | |||||||
FDIC insurance | 10,429 | 14,537 | 43,677 | 9,748 | 9,008 | 24,966 | 17,677 | |||||||
OREO expenses, net | (259) | 392 | (1,559) | 120 | 118 | 133 | (89) | |||||||
Other | 33,964 | 32,500 | 33,806 | 29,337 | 33,418 | 66,464 | 63,575 | |||||||
Total non-interest expense | 340,353 | 333,145 | 362,652 | 330,055 | 320,623 | 673,498 | 619,792 | |||||||
Income before taxes | 211,343 | 249,956 | 165,243 | 224,858 | 211,430 | 461,299 | 454,980 | |||||||
Income tax expense | 58,955 | 62,662 | 41,763 | 60,660 | 56,680 | 121,617 | 120,032 | |||||||
Net income | $ | 152,388 | $ | 187,294 | $ | 123,480 | $ | 164,198 | $ | 154,750 | $ | 339,682 | $ | 334,948 |
Preferred stock dividends | 6,991 | 6,991 | 6,991 | 6,991 | 6,991 | 13,982 | 13,982 | |||||||
Net income applicable to common shares | $ | 145,397 | $ | 180,303 | $ | 116,489 | $ | 157,207 | $ | 147,759 | $ | 325,700 | $ | 320,966 |
Net income per common share - Basic | $ | 2.35 | $ | 2.93 | $ | 1.90 | $ | 2.57 | $ | 2.41 | $ | 5.28 | $ | 5.26 |
Net income per common share - Diluted | $ | 2.32 | $ | 2.89 | $ | 1.87 | $ | 2.53 | $ | 2.38 | $ | 5.21 | $ | 5.18 |
Cash dividends declared per common share | $ | 0.45 | $ | 0.45 | $ | 0.40 | $ | 0.40 | $ | 0.40 | $ | 0.90 | $ | 0.80 |
Weighted average common shares outstanding | 61,839 | 61,481 | 61,236 | 61,213 | 61,192 | 61,660 | 61,072 | |||||||
Dilutive potential common shares | 926 | 928 | 1,166 | 964 | 902 | 901 | 933 | |||||||
Average common shares and dilutive common shares | 62,765 | 62,409 | 62,402 | 62,177 | 62,094 | 62,561 | 62,005 |
% Growth From | ||||||||||||||
(Dollars in thousands) | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Dec 31, 2023 (1)
|
Jun 30, 2023 | |||||||
Balance: | ||||||||||||||
Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies | $ | 281,103 | $ | 193,064 | $ | 155,529 | $ | 190,511 | $ | 235,570 | NM | 19 | % | |
Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies | 130,748 | 146,820 | 137,193 | 114,297 | 103,158 | (9) | 27 | |||||||
Total mortgage loans held-for-sale | $ | 411,851 | $ | 339,884 | $ | 292,722 | $ | 304,808 | $ | 338,728 | 82 | % | 22 | % |
Core loans: | ||||||||||||||
Commercial | ||||||||||||||
Commercial and industrial | $ | 6,226,336 | $ | 6,105,968 | $ | 5,804,629 | $ | 5,894,732 | $ | 5,737,633 | 15 | % | 9 | % |
Asset-based lending | 1,465,867 | 1,355,255 | 1,433,250 | 1,396,591 | 1,465,848 | 5 | 0 | |||||||
Municipal | 747,357 | 721,526 | 677,143 | 676,915 | 653,117 | 21 | 14 | |||||||
Leases | 2,439,128 | 2,344,295 | 2,208,368 | 2,109,628 | 1,925,767 | 21 | 27 | |||||||
PPP loans | 9,954 | 11,036 | 11,533 | 13,744 | 15,337 | (20) | (35) | |||||||
Commercial real estate | ||||||||||||||
Residential construction | 55,019 | 57,558 | 58,642 | 51,550 | 51,689 | (12) | 6 | |||||||
Commercial construction | 1,866,701 | 1,748,607 | 1,729,937 | 1,547,322 | 1,409,751 | 16 | 32 | |||||||
Land | 338,831 | 344,149 | 295,462 | 294,901 | 298,996 | 30 | 13 | |||||||
Office | 1,585,312 | 1,566,748 | 1,455,417 | 1,422,748 | 1,404,422 | 18 | 13 | |||||||
Industrial | 2,307,455 | 2,190,200 | 2,135,876 | 2,057,957 | 2,002,740 | 16 | 15 | |||||||
Retail | 1,365,753 | 1,366,415 | 1,337,517 | 1,341,451 | 1,304,083 | 4 | 5 | |||||||
Multi-family | 2,988,940 | 2,922,432 | 2,815,911 | 2,710,829 | 2,696,478 | 12 | 11 | |||||||
Mixed use and other | 1,439,186 | 1,437,328 | 1,515,402 | 1,519,422 | 1,440,652 | (10) | (0) | |||||||
Home equity | 356,313 | 340,349 | 343,976 | 343,258 | 336,974 | 7 | 6 | |||||||
Residential real estate | ||||||||||||||
Residential real estate loans for investment | 2,933,157 | 2,746,916 | 2,619,083 | 2,538,630 | 2,455,392 | 24 | 19 | |||||||
Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies | 88,503 | 90,911 | 92,780 | 97,911 | 117,024 | (9) | (24) | |||||||
Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies | 45,675 | 52,439 | 57,803 | 71,062 | 70,824 | (42) | (36) | |||||||
Total core loans | $ | 26,259,487 | $ | 25,402,132 | $ | 24,592,729 | $ | 24,088,651 | $ | 23,386,727 | 14 | % | 12 | % |
Niche loans: | ||||||||||||||
Commercial | ||||||||||||||
Franchise | $ | 1,150,460 | $ | 1,122,302 | $ | 1,092,532 | $ | 1,074,162 | $ | 1,091,164 | 5 | % | 5 | % |
Mortgage warehouse lines of credit | 593,519 | 403,245 | 230,211 | 245,450 | 381,043 | 95 | 56 | |||||||
Community Advantage - homeowners association | 491,722 | 475,832 | 452,734 | 424,054 | 405,042 | 7 | 21 | |||||||
Insurance agency lending | 1,030,119 | 964,022 | 921,653 | 890,197 | 925,520 | 14 | 11 | |||||||
Premium Finance receivables | ||||||||||||||
U.S. property & casualty insurance | 6,142,654 | 6,113,993 | 5,983,103 | 5,815,346 | 5,900,228 | 1 | 4 | |||||||
Canada property & casualty insurance | 958,099 | 826,026 | 920,426 | 907,401 | 862,470 | 32 | 11 | |||||||
Life insurance | 7,962,115 | 7,872,033 | 7,877,943 | 7,931,808 | 8,039,273 | 2 | (1) | |||||||
Consumer and other | 87,356 | 51,121 | 60,500 | 68,963 | 31,941 | 143 | 173 | |||||||
Total niche loans | $ | 18,416,044 | $ | 17,828,574 | $ | 17,539,102 | $ | 17,357,381 | $ | 17,636,681 | 7 | % | 4 | % |
Total loans, net of unearned income | $ | 44,675,531 | $ | 43,230,706 | $ | 42,131,831 | $ | 41,446,032 | $ | 41,023,408 | 7 | % | 9 | % |
% Growth From | ||||||||||||||
(Dollars in thousands) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Mar 31,
2024 (1) |
Jun 30, 2023 | |||||||
Balance: | ||||||||||||||
Non-interest-bearing | $ | 10,031,440 | $ | 9,908,183 | $ | 10,420,401 | $ | 10,347,006 | $ | 10,604,915 | 5 | % | (5) | % |
NOW and interest-bearing demand deposits | 5,053,909 | 5,720,947 | 5,797,649 | 6,006,114 | 5,814,836 | (47) | (13) | |||||||
Wealth management deposits (2)
|
1,490,711 | 1,347,817 | 1,614,499 | 1,788,099 | 1,417,984 | 43 | 5 | |||||||
Money market | 16,320,017 | 15,617,717 | 15,149,215 | 14,478,504 | 14,523,124 | 18 | 12 | |||||||
Savings | 5,882,179 | 5,959,774 | 5,790,334 | 5,584,294 | 5,321,578 | (5) | 11 | |||||||
Time certificates of deposit | 9,270,770 | 7,894,420 | 6,625,072 | 6,788,669 | 6,356,270 | 70 | 46 | |||||||
Total deposits | $ | 48,049,026 | $ | 46,448,858 | $ | 45,397,170 | $ | 44,992,686 | $ | 44,038,707 | 14 | % | 9 | % |
Mix: | ||||||||||||||
Non-interest-bearing | 21 | % | 21 | % | 23 | % | 23 | % | 24 | % | ||||
NOW and interest-bearing demand deposits | 11 | 12 | 13 | 13 | 13 | |||||||||
Wealth management deposits (2)
|
3 | 3 | 4 | 4 | 3 | |||||||||
Money market | 34 | 34 | 33 | 32 | 33 | |||||||||
Savings | 12 | 13 | 13 | 13 | 12 | |||||||||
Time certificates of deposit | 19 | 17 | 14 | 15 | 15 | |||||||||
Total deposits | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
(Dollars in thousands) |
Total Time Certificates of Deposit |
Weighted-Average Rate of Maturing Time Certificates of Deposit |
||
1-3 months | $ | 2,680,761 | 4.75 | % |
4-6 months | 2,863,328 | 4.74 | ||
7-9 months | 2,309,917 | 4.36 | ||
10-12 months | 1,073,537 | 4.25 | ||
13-18 months | 215,181 | 3.50 | ||
19-24 months | 67,172 | 2.52 | ||
24+ months | 60,874 | 1.90 | ||
Total | $ | 9,270,770 | 4.53 | % |
Average Balance for three months ended, | ||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||
(In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)
|
$ | 1,485,481 | $ | 1,254,332 | $ | 1,682,176 | $ | 2,053,568 | $ | 1,454,057 |
Investment securities (2)
|
8,203,764 | 8,349,796 | 7,971,068 | 7,706,285 | 7,252,582 | |||||
FHLB and FRB stock | 253,614 | 230,648 | 204,593 | 201,252 | 223,813 | |||||
Liquidity management assets (3)
|
9,942,859 | 9,834,776 | 9,857,837 | 9,961,105 | 8,930,452 | |||||
Other earning assets (3)(4)
|
15,257 | 15,081 | 14,821 | 17,879 | 17,401 | |||||
Mortgage loans held-for-sale | 347,236 | 290,275 | 279,569 | 319,099 | 307,683 | |||||
Loans, net of unearned income (3)(5)
|
43,819,354 | 42,129,893 | 41,361,952 | 40,707,042 | 40,106,393 | |||||
Total earning assets (3)
|
54,124,706 | 52,270,025 | 51,514,179 | 51,005,125 | 49,361,929 | |||||
Allowance for loan and investment security losses | (360,504) | (361,734) | (329,441) | (319,491) | (302,627) | |||||
Cash and due from banks | 434,916 | 450,267 | 443,989 | 459,819 | 481,510 | |||||
Other assets | 3,294,066 | 3,244,137 | 3,388,348 | 3,236,528 | 3,061,141 | |||||
Total assets
|
$ | 57,493,184 | $ | 55,602,695 | $ | 55,017,075 | $ | 54,381,981 | $ | 52,601,953 |
NOW and interest-bearing demand deposits | $ | 4,985,306 | $ | 5,680,265 | $ | 5,868,976 | $ | 5,815,155 | $ | 5,540,597 |
Wealth management deposits | 1,531,865 | 1,510,203 | 1,704,099 | 1,512,765 | 1,545,626 | |||||
Money market accounts | 15,272,126 | 14,474,492 | 14,212,320 | 14,155,446 | 13,735,924 | |||||
Savings accounts | 5,878,844 | 5,792,118 | 5,676,155 | 5,472,535 | 5,206,609 | |||||
Time deposits | 8,546,172 | 7,148,456 | 6,645,980 | 6,495,906 | 5,603,024 | |||||
Interest-bearing deposits | 36,214,313 | 34,605,534 | 34,107,530 | 33,451,807 | 31,631,780 | |||||
Federal Home Loan Bank advances | 3,096,920 | 2,728,849 | 2,326,073 | 2,241,292 | 2,227,106 | |||||
Other borrowings | 587,262 | 627,711 | 633,673 | 657,454 | 625,757 | |||||
Subordinated notes | 410,331 | 437,893 | 437,785 | 437,658 | 437,545 | |||||
Junior subordinated debentures | 253,566 | 253,566 | 253,566 | 253,566 | 253,566 | |||||
Total interest-bearing liabilities
|
40,562,392 | 38,653,553 | 37,758,627 | 37,041,777 | 35,175,754 | |||||
Non-interest-bearing deposits | 9,879,134 | 9,972,646 | 10,406,585 | 10,612,009 | 10,908,022 | |||||
Other liabilities | 1,601,485 | 1,536,039 | 1,785,667 | 1,644,312 | 1,473,459 | |||||
Equity | 5,450,173 | 5,440,457 | 5,066,196 | 5,083,883 | 5,044,718 | |||||
Total liabilities and shareholders' equity
|
$ | 57,493,184 | $ | 55,602,695 | $ | 55,017,075 | $ | 54,381,981 | $ | 52,601,953 |
Net free funds/contribution (6)
|
$ | 13,562,314 | $ | 13,616,472 | $ | 13,755,552 | $ | 13,963,348 | $ | 14,186,175 |
Net Interest Income for three months ended, | ||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||
(In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||
Interest income: | ||||||||||
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents | $ | 19,748 | $ | 16,677 | $ | 22,340 | $ | 28,022 | $ | 16,882 |
Investment securities | 70,346 | 70,228 | 68,812 | 59,737 | 51,795 | |||||
FHLB and FRB stock | 4,974 | 4,478 | 3,792 | 3,896 | 3,544 | |||||
Liquidity management assets (1)
|
95,068 | 91,383 | 94,944 | 91,655 | 72,221 | |||||
Other earning assets (1)
|
235 | 198 | 222 | 291 | 272 | |||||
Mortgage loans held-for-sale | 5,434 | 4,146 | 4,318 | 4,767 | 4,178 | |||||
Loans, net of unearned income (1)
|
752,117 | 712,587 | 697,093 | 668,183 | 622,939 | |||||
Total interest income | $ | 852,854 | $ | 808,314 | $ | 796,577 | $ | 764,896 | $ | 699,610 |
Interest expense: | ||||||||||
NOW and interest-bearing demand deposits | $ | 32,719 | $ | 34,896 | $ | 38,124 | $ | 36,001 | $ | 29,178 |
Wealth management deposits | 10,294 | 10,461 | 12,076 | 9,350 | 9,097 | |||||
Money market accounts | 155,100 | 137,984 | 130,252 | 124,742 | 106,630 | |||||
Savings accounts | 41,063 | 39,071 | 36,463 | 31,784 | 25,603 | |||||
Time deposits | 96,527 | 77,120 | 68,475 | 60,906 | 42,987 | |||||
Interest-bearing deposits | 335,703 | 299,532 | 285,390 | 262,783 | 213,495 | |||||
Federal Home Loan Bank advances | 24,797 | 22,048 | 18,316 | 17,436 | 17,399 | |||||
Other borrowings | 8,700 | 9,248 | 9,557 | 9,384 | 8,485 | |||||
Subordinated notes | 5,185 | 5,487 | 5,522 | 5,491 | 5,523 | |||||
Junior subordinated debentures | 4,984 | 5,004 | 5,089 | 4,948 | 4,737 | |||||
Total interest expense | $ | 379,369 | $ | 341,319 | $ | 323,874 | $ | 300,042 | $ | 249,639 |
Less: Fully taxable-equivalent adjustment | (2,875) | (2,801) | (2,729) | (2,496) | (2,434) | |||||
Net interest income(GAAP) (2)
|
470,610 | 464,194 | 469,974 | 462,358 | 447,537 | |||||
Fully taxable-equivalent adjustment | 2,875 | 2,801 | 2,729 | 2,496 | 2,434 | |||||
Net interest income, fully taxable-equivalent (non-GAAP) (2)
|
$ | 473,485 | $ | 466,995 | $ | 472,703 | $ | 464,854 | $ | 449,971 |
Net Interest Margin for three months ended, | ||||||||||
Jun 30, 2024 | Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
||||||
Yield earned on: | ||||||||||
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents | 5.35 | % | 5.35 | % | 5.27 | % | 5.41 | % | 4.66 | % |
Investment securities | 3.45 | 3.38 | 3.42 | 3.08 | 2.86 | |||||
FHLB and FRB stock | 7.89 | 7.81 | 7.35 | 7.68 | 6.35 | |||||
Liquidity management assets | 3.85 | 3.74 | 3.82 | 3.65 | 3.24 | |||||
Other earning assets | 6.23 | 5.25 | 5.92 | 6.47 | 6.27 | |||||
Mortgage loans held-for-sale | 6.29 | 5.74 | 6.13 | 5.93 | 5.45 | |||||
Loans, net of unearned income | 6.90 | 6.80 | 6.69 | 6.51 | 6.23 | |||||
Total earning assets | 6.34 | % | 6.22 | % | 6.13 | % | 5.95 | % | 5.68 | % |
Rate paid on: | ||||||||||
NOW and interest-bearing demand deposits | 2.64 | % | 2.47 | % | 2.58 | % | 2.46 | % | 2.11 | % |
Wealth management deposits | 2.70 | 2.79 | 2.81 | 2.45 | 2.36 | |||||
Money market accounts | 4.08 | 3.83 | 3.64 | 3.50 | 3.11 | |||||
Savings accounts | 2.81 | 2.71 | 2.55 | 2.30 | 1.97 | |||||
Time deposits | 4.54 | 4.34 | 4.09 | 3.72 | 3.08 | |||||
Interest-bearing deposits | 3.73 | 3.48 | 3.32 | 3.12 | 2.71 | |||||
Federal Home Loan Bank advances | 3.22 | 3.25 | 3.12 | 3.09 | 3.13 | |||||
Other borrowings | 5.96 | 5.92 | 5.98 | 5.66 | 5.44 | |||||
Subordinated notes | 5.08 | 5.04 | 5.00 | 4.98 | 5.06 | |||||
Junior subordinated debentures | 7.91 | 7.94 | 7.96 | 7.74 | 7.49 | |||||
Total interest-bearing liabilities | 3.76 | % | 3.55 | % | 3.40 | % | 3.21 | % | 2.85 | % |
Interest rate spread (1)(2)
|
2.58 | % | 2.67 | % | 2.73 | % | 2.74 | % | 2.83 | % |
Less: Fully taxable-equivalent adjustment | (0.02) | (0.02) | (0.02) | (0.02) | (0.02) | |||||
Net free funds/contribution (3)
|
0.94 | 0.92 | 0.91 | 0.88 | 0.83 | |||||
Net interest margin (GAAP) (2)
|
3.50 | % | 3.57 | % | 3.62 | % | 3.60 | % | 3.64 | % |
Fully taxable-equivalent adjustment | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | |||||
Net interest margin, fully taxable-equivalent (non-GAAP) (2)
|
3.52 | % | 3.59 | % | 3.64 | % | 3.62 | % | 3.66 | % |
Average Balance
for six months ended,
|
Interest
for six months ended,
|
Yield/Rate
for six months ended,
|
||||||||||
(Dollars in thousands) | Jun 30, 2024 |
Jun 30, 2023 |
Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2023 | ||||||
Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)
|
$ | 1,369,906 | $ | 1,345,506 | $ | 36,425 | $ | 30,421 | 5.35 | % | 4.56 | % |
Investment securities (2)
|
8,276,780 | 7,602,707 | 140,574 | 112,288 | 3.42 | 2.98 | ||||||
FHLB and FRB stock | 242,131 | 228,687 | 9,452 | 7,224 | 7.85 | 6.37 | ||||||
Liquidity management assets (3)(4)
|
$ | 9,888,817 | $ | 9,176,900 | $ | 186,451 | $ | 149,933 | 3.79 | % | 3.29 | % |
Other earning assets (3)(4)(5)
|
15,169 | 17,920 | 433 | 585 | 5.74 | 6.58 | ||||||
Mortgage loans held-for-sale | 318,756 | 289,426 | 9,580 | 7,706 | 6.04 | 5.37 | ||||||
Loans, net of unearned income (3)(4)(6)
|
42,974,623 | 39,602,672 | 1,464,704 | 1,183,503 | 6.85 | 6.03 | ||||||
Total earning assets (4)
|
$ | 53,197,365 | $ | 49,086,918 | $ | 1,661,168 | $ | 1,341,727 | 6.28 | % | 5.51 | % |
Allowance for loan and investment security losses | (361,119) | (292,721) | ||||||||||
Cash and due from banks | 442,591 | 484,964 | ||||||||||
Other assets | 3,269,102 | 3,060,929 | ||||||||||
Total assets
|
$ | 56,547,939 | $ | 52,340,090 | ||||||||
NOW and interest-bearing demand deposits | $ | 5,332,786 | $ | 5,406,911 | $ | 67,615 | $ | 47,949 | 2.55 | % | 1.79 | % |
Wealth management deposits | 1,521,034 | 1,854,637 | 20,755 | 21,355 | 2.74 | 2.32 | ||||||
Money market accounts | 14,873,309 | 13,138,018 | 293,084 | 174,907 | 3.96 | 2.68 | ||||||
Savings accounts | 5,835,481 | 5,019,505 | 80,134 | 41,419 | 2.76 | 1.66 | ||||||
Time deposits | 7,847,314 | 5,323,882 | 173,647 | 72,667 | 4.45 | 2.75 | ||||||
Interest-bearing deposits | $ | 35,409,924 | $ | 30,742,953 | $ | 635,235 | $ | 358,297 | 3.61 | % | 2.35 | % |
Federal Home Loan Bank advances | 2,912,884 | 2,350,309 | 46,845 | 36,534 | 3.23 | 3.13 | ||||||
Other borrowings | 607,487 | 614,410 | 17,948 | 16,338 | 5.94 | 5.36 | ||||||
Subordinated notes | 424,112 | 437,484 | 10,672 | 11,011 | 5.06 | 5.08 | ||||||
Junior subordinated debentures | 253,566 | 253,566 | 9,988 | 9,154 | 7.92 | 7.28 | ||||||
Total interest-bearing liabilities
|
$ | 39,607,973 | $ | 34,398,722 | $ | 720,688 | $ | 431,334 | 3.66 | % | 2.53 | % |
Non-interest-bearing deposits | 9,925,890 | 11,536,336 | ||||||||||
Other liabilities | 1,568,761 | 1,434,625 | ||||||||||
Equity | 5,445,315 | 4,970,407 | ||||||||||
Total liabilities and shareholders' equity
|
$ | 56,547,939 | $ | 52,340,090 | ||||||||
Interest rate spread (4)(7)
|
2.62 | % | 2.98 | % | ||||||||
Less: Fully taxable-equivalent adjustment | (5,676) | (4,861) | (0.03) | (0.02) | ||||||||
Net free funds/contribution (8)
|
$ | 13,589,392 | $ | 14,688,196 | 0.94 | 0.76 | ||||||
Net interest income/margin(GAAP) (4)
|
$ | 934,804 | $ | 905,532 | 3.53 | % | 3.72 | % | ||||
Fully taxable-equivalent adjustment | 5,676 | 4,861 | 0.03 | 0.02 | ||||||||
Net interest income/margin, fully taxable-equivalent (non-GAAP) (4)
|
$ | 940,480 | $ | 910,393 | 3.56 | % | 3.74 | % |
Static Shock Scenario | +200 Basis Points | +100 Basis Points | -100 Basis Points | -200 Basis Points | ||||
Jun 30, 2024 | 1.5 | % | 1.0 | % | 0.6 | % | (0.0) | % |
Mar 31, 2024 | 1.9 | 1.4 | 1.5 | 1.6 | ||||
Dec 31, 2023 | 2.6 | 1.8 | 0.4 | (0.7) | ||||
Sep 30, 2023 | 3.3 | 1.9 | (2.0) | (5.2) | ||||
Jun 30, 2023 | 5.7 | 2.9 | (2.9) | (7.9) |
Ramp Scenario | +200 Basis Points | +100 Basis Points | -100 Basis Points | -200 Basis Points | ||||
Jun 30, 2024 | 1.2 | % | 1.0 | % | 0.9 | % | 1.0 | % |
Mar 31, 2024 | 0.8 | 0.6 | 1.3 | 2.0 | ||||
Dec 31, 2023 | 1.6 | 1.2 | (0.3) | (1.5) | ||||
Sep 30, 2023 | 1.7 | 1.2 | (0.5) | (2.4) | ||||
Jun 30, 2023 | 2.9 | 1.8 | (0.9) | (3.4) |
Loans repricing or contractual maturity period | ||||||||||
As of June 30, 2024 |
One year or less |
From one to five years |
From five to fifteen years | After fifteen years | Total | |||||
(In thousands) | ||||||||||
Commercial | ||||||||||
Fixed rate | $ | 477,277 | $ | 3,103,539 | $ | 1,833,528 | $ | 42,066 | $ | 5,456,410 |
Variable rate | 8,696,826 | 1,226 | - | - | 8,698,052 | |||||
Total commercial | $ | 9,174,103 | $ | 3,104,765 | $ | 1,833,528 | $ | 42,066 | $ | 14,154,462 |
Commercial real estate | ||||||||||
Fixed rate | $ | 528,051 | $ | 2,517,267 | $ | 352,478 | $ | 55,075 | $ | 3,452,871 |
Variable rate | 8,480,512 | 13,745 | 69 | - | 8,494,326 | |||||
Total commercial real estate | $ | 9,008,563 | $ | 2,531,012 | $ | 352,547 | $ | 55,075 | $ | 11,947,197 |
Home equity | ||||||||||
Fixed rate | $ | 9,862 | $ | 3,413 | $ | - | $ | 24 | $ | 13,299 |
Variable rate | 343,014 | - | - | - | 343,014 | |||||
Total home equity | $ | 352,876 | $ | 3,413 | $ | - | $ | 24 | $ | 356,313 |
Residential real estate | ||||||||||
Fixed rate | $ | 20,300 | $ | 3,124 | $ | 29,630 | $ | 1,036,012 | $ | 1,089,066 |
Variable rate | 77,249 | 385,872 | 1,515,148 | - | 1,978,269 | |||||
Total residential real estate | $ | 97,549 | $ | 388,996 | $ | 1,544,778 | $ | 1,036,012 | $ | 3,067,335 |
Premium finance receivables - property & casualty | ||||||||||
Fixed rate | $ | 7,015,748 | $ | 85,005 | $ | - | $ | - | $ | 7,100,753 |
Variable rate | - | - | - | - | - | |||||
Total premium finance receivables - property & casualty | $ | 7,015,748 | $ | 85,005 | $ | - | $ | - | $ | 7,100,753 |
Premium finance receivables - life insurance | ||||||||||
Fixed rate | $ | 71,207 | $ | 543,433 | $ | 4,000 | $ | 6,991 | $ | 625,631 |
Variable rate | 7,336,484 | - | - | - | 7,336,484 | |||||
Total premium finance receivables - life insurance | $ | 7,407,691 | $ | 543,433 | $ | 4,000 | $ | 6,991 | $ | 7,962,115 |
Consumer and other | ||||||||||
Fixed rate | $ | 33,887 | $ | 5,452 | $ | 9 | $ | 455 | $ | 39,803 |
Variable rate | 47,553 | - | - | - | 47,553 | |||||
Total consumer and other | $ | 81,440 | $ | 5,452 | $ | 9 | $ | 455 | $ | 87,356 |
Total per category | ||||||||||
Fixed rate | $ | 8,156,332 | $ | 6,261,233 | $ | 2,219,645 | $ | 1,140,623 | $ | 17,777,833 |
Variable rate | 24,981,638 | 400,843 | 1,515,217 | - | 26,897,698 | |||||
Total loans, net of unearned income | $ | 33,137,970 | $ | 6,662,076 | $ | 3,734,862 | $ | 1,140,623 | $ | 44,675,531 |
Variable Rate Loan Pricing by Index: | ||||||||||
SOFR tenors | $ | 15,744,528 | ||||||||
One- year CMT | 6,176,495 | |||||||||
Prime | 3,474,480 | |||||||||
Fed Funds | 997,252 | |||||||||
Ameribor tenors | 241,682 | |||||||||
Other U.S. Treasury tenors | 124,349 | |||||||||
Other | 138,912 | |||||||||
Total variable rate | $ | 26,897,698 |
Basis Point (bp) Change in | ||||||
1-month SOFR |
One- year CMT | Prime | ||||
Second Quarter 2024 | 1 | bps | 6 | bps | 0 | bps |
First Quarter 2024 | (2) | 24 | 0 | |||
Fourth Quarter 2023 | 3 | (67) | 0 | |||
Third Quarter 2023 | 18 | 6 | 25 | |||
Second Quarter 2023 | 34 | 76 | 25 |
Three Months Ended | Six Months Ended | |||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||
(Dollars in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||
Allowance for credit losses at beginning of period | $ | 427,504 | $ | 427,612 | $ | 399,531 | $ | 387,786 | $ | 376,261 | $ | 427,612 | $ | 357,936 |
Cumulative effect adjustment from the adoption of ASU 2022-02 | - | - | - | - | - | - | 741 | |||||||
Provision for credit losses | 40,061 | 21,673 | 42,908 | 19,923 | 28,514 | 61,734 | 51,559 | |||||||
Other adjustments | (19) | (31) | 62 | (60) | 41 | (50) | 45 | |||||||
Charge-offs: | ||||||||||||||
Commercial | 9,584 | 11,215 | 5,114 | 2,427 | 5,629 | 20,799 | 8,172 | |||||||
Commercial real estate | 15,526 | 5,469 | 5,386 | 1,713 | 8,124 | 20,995 | 8,129 | |||||||
Home equity | - | 74 | - | 227 | - | 74 | - | |||||||
Residential real estate | 23 | 38 | 114 | 78 | - | 61 | - | |||||||
Premium finance receivables - property & casualty | 9,486 | 6,938 | 6,706 | 5,830 | 4,519 | 16,424 | 9,148 | |||||||
Premium finance receivables - life insurance | - | - | - | 18 | 134 | - | 155 | |||||||
Consumer and other | 137 | 107 | 148 | 184 | 110 | 244 | 263 | |||||||
Total charge-offs | 34,756 | 23,841 | 17,468 | 10,477 | 18,516 | 58,597 | 25,867 | |||||||
Recoveries: | ||||||||||||||
Commercial | 950 | 479 | 592 | 1,162 | 505 | 1,429 | 897 | |||||||
Commercial real estate | 90 | 31 | 92 | 243 | 25 | 121 | 125 | |||||||
Home equity | 35 | 29 | 34 | 33 | 37 | 64 | 72 | |||||||
Residential real estate | 8 | 2 | 10 | 1 | 6 | 10 | 10 | |||||||
Premium finance receivables - property & casualty | 3,658 | 1,519 | 1,820 | 906 | 890 | 5,177 | 2,204 | |||||||
Premium finance receivables - life insurance | 5 | 8 | 7 | - | - | 13 | 9 | |||||||
Consumer and other | 24 | 23 | 24 | 14 | 23 | 47 | 55 | |||||||
Total recoveries | 4,770 | 2,091 | 2,579 | 2,359 | 1,486 | 6,861 | 3,372 | |||||||
Net charge-offs | (29,986) | (21,750) | (14,889) | (8,118) | (17,030) | (51,736) | (22,495) | |||||||
Allowance for credit losses at period end | $ | 437,560 | $ | 427,504 | $ | 427,612 | $ | 399,531 | $ | 387,786 | $ | 437,560 | $ | 387,786 |
Annualized net charge-offs (recoveries) by category as a percentage of its own respective category's average: | ||||||||||||||
Commercial | 0.25 | % | 0.33 | % | 0.14 | % | 0.04 | % | 0.16 | % | 0.29 | % | 0.12 | % |
Commercial real estate | 0.53 | 0.19 | 0.19 | 0.05 | 0.31 | 0.36 | 0.16 | |||||||
Home equity | (0.04) | 0.05 | (0.04) | 0.23 | (0.04) | 0.01 | (0.04) | |||||||
Residential real estate | 0.00 | 0.01 | 0.02 | 0.01 | (0.00) | 0.00 | (0.00) | |||||||
Premium finance receivables - property & casualty | 0.33 | 0.32 | 0.29 | 0.29 | 0.24 | 0.33 | 0.24 | |||||||
Premium finance receivables - life insurance | (0.00) | (0.00) | (0.00) | 0.00 | 0.01 | (0.00) | 0.00 | |||||||
Consumer and other | 0.56 | 0.42 | 0.58 | 0.65 | 0.45 | 0.49 | 0.58 | |||||||
Total loans, net of unearned income | 0.28 | % | 0.21 | % | 0.14 | % | 0.08 | % | 0.17 | % | 0.24 | 0.11 | % | |
Loans at period end | $ | 44,675,531 | $ | 43,230,706 | $ | 42,131,831 | $ | 41,446,032 | $ | 41,023,408 | ||||
Allowance for loan losses as a percentage of loans at period end | 0.81 | % | 0.81 | % | 0.82 | % | 0.76 | % | 0.74 | % | ||||
Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end | 0.98 | 0.99 | 1.01 | 0.96 | 0.94 |
Three Months Ended | Six Months Ended | |||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||
(In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||
Provision for loan losses | $ | 45,111 | $ | 26,159 | $ | 44,023 | $ | 20,717 | $ | 31,516 | $ | 71,270 | $ | 54,036 |
Provision for unfunded lending-related commitments losses | (5,212) | (4,468) | (1,081) | (769) | (2,945) | (9,680) | (2,395) | |||||||
Provision for held-to-maturity securities losses | 162 | (18) | (34) | (25) | (57) | 144 | (82) | |||||||
Provision for credit losses | $ | 40,061 | $ | 21,673 | $ | 42,908 | $ | 19,923 | $ | 28,514 | $ | 61,734 | $ | 51,559 |
Allowance for loan losses | $ | 363,719 | $ | 348,612 | $ | 344,235 | $ | 315,039 | $ | 302,499 | ||||
Allowance for unfunded lending-related commitments losses | 73,350 | 78,563 | 83,030 | 84,111 | 84,881 | |||||||||
Allowance for loan losses and unfunded lending-related commitments losses | 437,069 | 427,175 | 427,265 | 399,150 | 387,380 | |||||||||
Allowance for held-to-maturity securities losses | 491 | 329 | 347 | 381 | 406 | |||||||||
Allowance for credit losses | $ | 437,560 | $ | 427,504 | $ | 427,612 | $ | 399,531 | $ | 387,786 |
As of Jun 30, 2024 | As of Mar 31, 2024 | As of Dec 31, 2023 | ||||||||||||||||
(Dollars in thousands) |
Recorded Investment |
Calculated Allowance |
% of its category's balance |
Recorded Investment |
Calculated Allowance |
% of its category's balance |
Recorded Investment |
Calculated Allowance |
% of its category's balance |
|||||||||
Commercial: | ||||||||||||||||||
Commercial, industrial and other | $ | 14,154,462 | $ | 181,991 | 1.29 | % | $ | 13,503,481 | $ | 166,518 | 1.23 | % | $ | 12,832,053 | $ | 169,604 | 1.32 | % |
Commercial real estate: | ||||||||||||||||||
Construction and development | 2,260,551 | 93,154 | 4.12 | 2,150,314 | 96,052 | 4.47 | 2,084,041 | 94,081 | 4.51 | |||||||||
Non-construction | 9,686,646 | 130,574 | 1.35 | 9,483,123 | 130,000 | 1.37 | 9,260,123 | 129,772 | 1.40 | |||||||||
Home equity | 356,313 | 7,242 | 2.03 | 340,349 | 7,191 | 2.11 | 343,976 | 7,116 | 2.07 | |||||||||
Residential real estate | 3,067,335 | 8,773 | 0.29 | 2,890,266 | 13,701 | 0.47 | 2,769,666 | 13,133 | 0.47 | |||||||||
Premium finance receivables | ||||||||||||||||||
Property and casualty insurance | 7,100,753 | 14,053 | 0.20 | 6,940,019 | 12,645 | 0.18 | 6,903,529 | 12,384 | 0.18 | |||||||||
Life insurance | 7,962,115 | 693 | 0.01 | 7,872,033 | 685 | 0.01 | 7,877,943 | 685 | 0.01 | |||||||||
Consumer and other | 87,356 | 589 | 0.67 | 51,121 | 383 | 0.75 | 60,500 | 490 | 0.81 | |||||||||
Total loans, net of unearned income | $ | 44,675,531 | $ | 437,069 | 0.98 | % | $ | 43,230,706 | $ | 427,175 | 0.99 | % | $ | 42,131,831 | $ | 427,265 | 1.01 | % |
Total core loans (1)
|
$ | 26,259,487 | $ | 398,494 | 1.52 | % | $ | 25,402,132 | $ | 382,372 | 1.51 | % | $ | 24,592,729 | $ | 380,847 | 1.55 | % |
Total niche loans (1)
|
18,416,044 | 38,575 | 0.21 | 17,828,574 | 44,803 | 0.25 | 17,539,102 | 46,418 | 0.26 | |||||||||
(In thousands) | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | |||||
Loan Balances: | ||||||||||
Commercial | ||||||||||
Nonaccrual | $ | 51,087 | $ | 31,740 | $ | 38,940 | $ | 43,569 | $ | 40,460 |
90+ days and still accruing | 304 | 27 | 98 | 200 | 573 | |||||
60-89 days past due | 16,485 | 30,248 | 19,488 | 22,889 | 22,808 | |||||
30-59 days past due | 36,358 | 77,715 | 85,743 | 35,681 | 48,970 | |||||
Current | 14,050,228 | 13,363,751 | 12,687,784 | 12,623,134 | 12,487,660 | |||||
Total commercial | $ | 14,154,462 | $ | 13,503,481 | $ | 12,832,053 | $ | 12,725,473 | $ | 12,600,471 |
Commercial real estate | ||||||||||
Nonaccrual | $ | 48,289 | $ | 39,262 | $ | 35,459 | $ | 17,043 | $ | 18,483 |
90+ days and still accruing | - | - | - | 1,092 | - | |||||
60-89 days past due | 6,555 | 16,713 | 8,515 | 7,395 | 1,054 | |||||
30-59 days past due | 38,065 | 32,998 | 20,634 | 60,984 | 14,218 | |||||
Current | 11,854,288 | 11,544,464 | 11,279,556 | 10,859,666 | 10,575,056 | |||||
Total commercial real estate | $ | 11,947,197 | $ | 11,633,437 | $ | 11,344,164 | $ | 10,946,180 | $ | 10,608,811 |
Home equity | ||||||||||
Nonaccrual | $ | 1,100 | $ | 838 | $ | 1,341 | $ | 1,363 | $ | 1,361 |
90+ days and still accruing | - | - | - | - | 110 | |||||
60-89 days past due | 275 | 212 | 62 | 219 | 316 | |||||
30-59 days past due | 1,229 | 1,617 | 2,263 | 1,668 | 601 | |||||
Current | 353,709 | 337,682 | 340,310 | 340,008 | 334,586 | |||||
Total home equity | $ | 356,313 | $ | 340,349 | $ | 343,976 | $ | 343,258 | $ | 336,974 |
Residential real estate | ||||||||||
Early buy-out loans guaranteed by U.S. government agencies (1)
|
$ | 134,178 | $ | 143,350 | $ | 150,583 | $ | 168,973 | $ | 187,848 |
Nonaccrual | 18,198 | 17,901 | 15,391 | 16,103 | 13,652 | |||||
90+ days and still accruing | - | - | - | - | - | |||||
60-89 days past due | 1,977 | - | 2,325 | 1,145 | 7,243 | |||||
30-59 days past due | 130 | 24,523 | 22,942 | 904 | 872 | |||||
Current | 2,912,852 | 2,704,492 | 2,578,425 | 2,520,478 | 2,433,625 | |||||
Total residential real estate | $ | 3,067,335 | $ | 2,890,266 | $ | 2,769,666 | $ | 2,707,603 | $ | 2,643,240 |
Premium finance receivables - property & casualty | ||||||||||
Nonaccrual | $ | 32,722 | $ | 32,648 | $ | 27,590 | $ | 26,756 | $ | 19,583 |
90+ days and still accruing | 22,427 | 25,877 | 20,135 | 16,253 | 12,785 | |||||
60-89 days past due | 29,925 | 15,274 | 23,236 | 16,552 | 22,670 | |||||
30-59 days past due | 45,927 | 59,729 | 50,437 | 31,919 | 32,751 | |||||
Current | 6,969,752 | 6,806,491 | 6,782,131 | 6,631,267 | 6,674,909 | |||||
Total Premium finance receivables - property & casualty | $ | 7,100,753 | $ | 6,940,019 | $ | 6,903,529 | $ | 6,722,747 | $ | 6,762,698 |
Premium finance receivables - life insurance | ||||||||||
Nonaccrual | $ | - | $ | - | $ | - | $ | - | $ | 6 |
90+ days and still accruing | - | - | - | 10,679 | 1,667 | |||||
60-89 days past due | 4,118 | 32,482 | 16,206 | 41,894 | 3,729 | |||||
30-59 days past due | 17,693 | 100,137 | 45,464 | 14,972 | 90,117 | |||||
Current | 7,940,304 | 7,739,414 | 7,816,273 | 7,864,263 | 7,943,754 | |||||
Total Premium finance receivables - life insurance | $ | 7,962,115 | $ | 7,872,033 | $ | 7,877,943 | $ | 7,931,808 | $ | 8,039,273 |
Consumer and other | ||||||||||
Nonaccrual | $ | 3 | $ | 19 | $ | 22 | $ | 16 | $ | 4 |
90+ days and still accruing | 121 | 47 | 54 | 27 | 28 | |||||
60-89 days past due | 81 | 16 | 25 | 196 | 51 | |||||
30-59 days past due | 366 | 210 | 165 | 519 | 146 | |||||
Current | 86,785 | 50,829 | 60,234 | 68,205 | 31,712 | |||||
Total consumer and other | $ | 87,356 | $ | 51,121 | $ | 60,500 | $ | 68,963 | $ | 31,941 |
Total loans, net of unearned income | ||||||||||
Early buy-out loans guaranteed by U.S. government agencies (1)
|
$ | 134,178 | $ | 143,350 | $ | 150,583 | $ | 168,973 | $ | 187,848 |
Nonaccrual | 151,399 | 122,408 | 118,743 | 104,850 | 93,549 | |||||
90+ days and still accruing | 22,852 | 25,951 | 20,287 | 28,251 | 15,163 | |||||
60-89 days past due | 59,416 | 94,945 | 69,857 | 90,290 | 57,871 | |||||
30-59 days past due | 139,768 | 296,929 | 227,648 | 146,647 | 187,675 | |||||
Current | 44,167,918 | 42,547,123 | 41,544,713 | 40,907,021 | 40,481,302 | |||||
Total loans, net of unearned income | $ | 44,675,531 | $ | 43,230,706 | $ | 42,131,831 | $ | 41,446,032 | $ | 41,023,408 |
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||
(Dollars in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||
Loans past due greater than 90 days and still accruing: | ||||||||||
Commercial | $ | 304 | $ | 27 | $ | 98 | $ | 200 | $ | 573 |
Commercial real estate | - | - | - | 1,092 | - | |||||
Home equity | - | - | - | - | 110 | |||||
Residential real estate | - | - | - | - | - | |||||
Premium finance receivables - property & casualty | 22,427 | 25,877 | 20,135 | 16,253 | 12,785 | |||||
Premium finance receivables - life insurance | - | - | - | 10,679 | 1,667 | |||||
Consumer and other | 121 | 47 | 54 | 27 | 28 | |||||
Total loans past due greater than 90 days and still accruing | 22,852 | 25,951 | 20,287 | 28,251 | 15,163 | |||||
Non-accrual loans: | ||||||||||
Commercial | 51,087 | 31,740 | 38,940 | 43,569 | 40,460 | |||||
Commercial real estate | 48,289 | 39,262 | 35,459 | 17,043 | 18,483 | |||||
Home equity | 1,100 | 838 | 1,341 | 1,363 | 1,361 | |||||
Residential real estate | 18,198 | 17,901 | 15,391 | 16,103 | 13,652 | |||||
Premium finance receivables - property & casualty | 32,722 | 32,648 | 27,590 | 26,756 | 19,583 | |||||
Premium finance receivables - life insurance | - | - | - | - | 6 | |||||
Consumer and other | 3 | 19 | 22 | 16 | 4 | |||||
Total non-accrual loans | 151,399 | 122,408 | 118,743 | 104,850 | 93,549 | |||||
Total non-performing loans: | ||||||||||
Commercial | 51,391 | 31,767 | 39,038 | 43,769 | 41,033 | |||||
Commercial real estate | 48,289 | 39,262 | 35,459 | 18,135 | 18,483 | |||||
Home equity | 1,100 | 838 | 1,341 | 1,363 | 1,471 | |||||
Residential real estate | 18,198 | 17,901 | 15,391 | 16,103 | 13,652 | |||||
Premium finance receivables - property & casualty | 55,149 | 58,525 | 47,725 | 43,009 | 32,368 | |||||
Premium finance receivables - life insurance | - | - | - | 10,679 | 1,673 | |||||
Consumer and other | 124 | 66 | 76 | 43 | 32 | |||||
Total non-performing loans | $ | 174,251 | $ | 148,359 | $ | 139,030 | $ | 133,101 | $ | 108,712 |
Other real estate owned | 19,731 | 14,538 | 13,309 | 14,060 | 11,586 | |||||
Total non-performing assets | $ | 193,982 | $ | 162,897 | $ | 152,339 | $ | 147,161 | $ | 120,298 |
Total non-performing loans by category as a percent of its own respective category's period-end balance: | ||||||||||
Commercial | 0.36 | % | 0.24 | % | 0.30 | % | 0.34 | % | 0.33 | % |
Commercial real estate | 0.40 | 0.34 | 0.31 | 0.17 | 0.17 | |||||
Home equity | 0.31 | 0.25 | 0.39 | 0.40 | 0.44 | |||||
Residential real estate | 0.59 | 0.62 | 0.56 | 0.59 | 0.52 | |||||
Premium finance receivables - property & casualty | 0.78 | 0.84 | 0.69 | 0.64 | 0.48 | |||||
Premium finance receivables - life insurance | - | - | - | 0.13 | 0.02 | |||||
Consumer and other | 0.14 | 0.13 | 0.13 | 0.06 | 0.10 | |||||
Total loans, net of unearned income | 0.39 | % | 0.34 | % | 0.33 | % | 0.32 | % | 0.26 | % |
Total non-performing assets as a percentage of total assets | 0.32 | % | 0.28 | % | 0.27 | % | 0.26 | % | 0.22 | % |
Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans | 288.69 | % | 348.98 | % | 359.82 | % | 380.69 | % | 414.09 | % |
Three Months Ended | Six Months Ended | |||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||
(In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||
Balance at beginning of period | $ | 148,359 | $ | 139,030 | $ | 133,101 | $ | 108,712 | $ | 100,690 | $ | 139,030 | $ | 100,697 |
Additions from becoming non-performing in the respective period | 54,376 | 23,142 | 59,010 | 18,666 | 21,246 | 77,518 | 45,701 | |||||||
Return to performing status | (912) | (490) | (24,469) | (1,702) | (360) | (1,402) | (840) | |||||||
Payments received | (9,611) | (8,336) | (10,000) | (6,488) | (12,314) | (17,947) | (17,575) | |||||||
Transfer to OREO and other repossessed assets | (6,945) | (1,381) | (2,623) | (2,671) | (2,958) | (8,326) | (2,958) | |||||||
Charge-offs, net | (7,673) | (14,810) | (9,480) | (3,011) | (2,696) | (22,483) | (3,855) | |||||||
Net change for premium finance receivables | (3,343) | 11,204 | (6,509) | 19,595 | 5,104 | 7,861 | (12,458) | |||||||
Balance at end of period | $ | 174,251 | $ | 148,359 | $ | 139,030 | $ | 133,101 | $ | 108,712 | $ | 174,251 | $ | 108,712 |
Three Months Ended | ||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||
(In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||
Balance at beginning of period | $ | 14,538 | $ | 13,309 | $ | 14,060 | $ | 11,586 | $ | 9,361 |
Disposals/resolved | (1,752) | - | (3,416) | (467) | (733) | |||||
Transfers in at fair value, less costs to sell | 6,945 | 1,436 | 2,665 | 2,941 | 2,958 | |||||
Fair value adjustments | - | (207) | - | - | - | |||||
Balance at end of period | $ | 19,731 | $ | 14,538 | $ | 13,309 | $ | 14,060 | $ | 11,586 |
Period End | ||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||
Balance by Property Type: | 2024 | 2024 | 2023 | 2023 | 2023 | |||||
Residential real estate | $ | 161 | $ | 1,146 | $ | 720 | $ | 441 | $ | 318 |
Commercial real estate | 19,570 | 13,392 | 12,589 | 13,619 | 11,268 | |||||
Total | $ | 19,731 | $ | 14,538 | $ | 13,309 | $ | 14,060 | $ | 11,586 |
Three Months Ended |
Q2 2024 compared to
Q1 2024
|
Q2 2024 compared to
Q2 2023
|
||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||||||||||
(Dollars in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | $ Change | % Change | $ Change | % Change | |||||||||
Brokerage | $ | 5,588 | $ | 5,556 | $ | 5,349 | $ | 4,359 | $ | 4,404 | $ | 32 | 1 | % | $ | 1,184 | 27 | % |
Trust and asset management | 29,825 | 29,259 | 27,926 | 29,170 | 29,454 | 566 | 2 | 371 | 1 | |||||||||
Total wealth management | 35,413 | 34,815 | 33,275 | 33,529 | 33,858 | 598 | 2 | 1,555 | 5 | |||||||||
Mortgage banking | 29,124 | 27,663 | 7,433 | 27,395 | 29,981 | 1,461 | 5 | (857) | (3) | |||||||||
Service charges on deposit accounts | 15,546 | 14,811 | 14,522 | 14,217 | 13,608 | 735 | 5 | 1,938 | 14 | |||||||||
(Losses) gains on investment securities, net | (4,282) | 1,326 | 2,484 | (2,357) | 0 | (5,608) | NM | (4,282) | NM | |||||||||
Fees from covered call options | 2,056 | 4,847 | 4,679 | 4,215 | 2,578 | (2,791) | (58) | (522) | (20) | |||||||||
Trading gains (losses), net | 70 | 677 | (505) | 728 | 106 | (607) | (90) | (36) | (34) | |||||||||
Operating lease income, net | 13,938 | 14,110 | 14,162 | 13,863 | 12,227 | (172) | (1) | 1,711 | 14 | |||||||||
Other: | ||||||||||||||||||
Interest rate swap fees | 3,392 | 2,828 | 4,021 | 2,913 | 2,711 | 564 | 20 | 681 | 25 | |||||||||
BOLI | 1,351 | 1,651 | 1,747 | 729 | 1,322 | (300) | (18) | 29 | 2 | |||||||||
Administrative services | 1,322 | 1,217 | 1,329 | 1,336 | 1,319 | 105 | 9 | 3 | 0 | |||||||||
Foreign currency remeasurement (losses) gains | (145) | (1,171) | 1,150 | (446) | 543 | 1,026 | (88) | (688) | NM | |||||||||
Changes in fair value on EBOs and loans held-for-investment | 604 | (439) | 1,556 | (338) | (242) | 1,043 | NM | 846 | NM | |||||||||
Early pay-offs of capital leases | 393 | 430 | 157 | 461 | 201 | (37) | (9) | 192 | 96 | |||||||||
Miscellaneous | 22,365 | 37,815 | 14,819 | 16,233 | 14,818 | (15,450) | (41) | 7,547 | 51 | |||||||||
Total Other | 29,282 | 42,331 | 24,779 | 20,888 | 20,672 | (13,049) | (31) | 8,610 | 42 | |||||||||
Total Non-Interest Income | $ | 121,147 | $ | 140,580 | $ | 100,829 | $ | 112,478 | $ | 113,030 | $ | (19,433) | (14) | % | $ | 8,117 | 7 | % |
Six Months Ended | ||||||||
Jun 30, | Jun 30, | $ | % | |||||
(Dollars in thousands) | 2024 | 2023 | Change | Change | ||||
Brokerage | $ | 11,144 | $ | 8,937 | $ | 2,207 | 25 | % |
Trust and asset management | 59,084 | 54,866 | 4,218 | 8 | ||||
Total wealth management | 70,228 | 63,803 | 6,425 | 10 | ||||
Mortgage banking | 56,787 | 48,245 | 8,542 | 18 | ||||
Service charges on deposit accounts | 30,357 | 26,511 | 3,846 | 15 | ||||
(Losses) gains on investment securities, net | (2,956) | 1,398 | (4,354) | NM | ||||
Fees from covered call options | 6,903 | 12,969 | (6,066) | (47) | ||||
Trading gains, net | 747 | 919 | (172) | (19) | ||||
Operating lease income, net | 28,048 | 25,273 | 2,775 | 11 | ||||
Other: | ||||||||
Interest rate swap fees | 6,220 | 5,317 | 903 | 17 | ||||
BOLI | 3,002 | 2,673 | 329 | 12 | ||||
Administrative services | 2,539 | 2,934 | (395) | (13) | ||||
Foreign currency remeasurement (losses) gains | (1,316) | 355 | (1,671) | NM | ||||
Changes in fair value on EBOs and loans held-for-investment | 165 | 303 | (138) | (46) | ||||
Early pay-offs of leases | 823 | 566 | 257 | 45 | ||||
Miscellaneous | 60,180 | 29,533 | 30,647 | NM | ||||
Total Other | 71,613 | 41,681 | 29,932 | 72 | ||||
Total Non-Interest Income | $ | 261,727 | $ | 220,799 | $ | 40,928 | 19 | % |
Three Months Ended | Six Months Ended | |||||||||||||
(Dollars in thousands) |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Jun 30, 2024 |
Jun 30, 2023 |
|||||||
Originations: | ||||||||||||||
Retail originations | $ | 544,394 | $ | 331,504 | $ | 315,637 | $ | 408,761 | $ | 406,888 | $ | 875,898 | $ | 663,025 |
Veterans First originations | 177,792 | 144,109 | 123,564 | 163,856 | 171,158 | 321,901 | 287,362 | |||||||
Total originations for sale (A) | $ | 722,186 | $ | 475,613 | $ | 439,201 | $ | 572,617 | $ | 578,046 | $ | 1,197,799 | $ | 950,387 |
Originations for investment | 275,331 | 169,246 | 124,974 | 137,622 | 184,795 | 444,577 | 315,975 | |||||||
Total originations | $ | 997,517 | $ | 644,859 | $ | 564,175 | $ | 710,239 | $ | 762,841 | $ | 1,642,376 | $ | 1,266,362 |
As a percentage of originations for sale: | ||||||||||||||
Retail originations | 75 | % | 70 | % | 72 | % | 71 | % | 70 | % | 73 | % | 70 | % |
Veterans First originations | 25 | 30 | 28 | 29 | 30 | 27 | 30 | |||||||
Purchases | 83 | % | 75 | % | 85 | % | 84 | % | 84 | % | 80 | % | 82 | % |
Refinances | 17 | 25 | 15 | 16 | 16 | 20 | 18 | |||||||
Production Margin: | ||||||||||||||
Production revenue (B) (1)
|
$ | 14,990 | $ | 13,435 | $ | 6,798 | $ | 13,766 | $ | 11,846 | $ | 28,425 | $ | 20,467 |
Total originations for sale (A) | $ | 722,186 | $ | 475,613 | $ | 439,201 | $ | 572,617 | $ | 578,046 | $ | 1,197,799 | $ | 950,387 |
Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2)
|
222,738 | 207,775 | 119,624 | 150,713 | 196,246 | 222,738 | 196,246 | |||||||
Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2)
|
207,775 | 119,624 | 150,713 | 196,246 | 184,168 | 119,624 | 113,303 | |||||||
Total mortgage production volume (C) | $ | 737,149 | $ | 563,764 | $ | 408,112 | $ | 527,084 | $ | 590,124 | $ | 1,300,913 | $ | 1,033,330 |
Production margin (B / C) | 2.03 | % | 2.38 | % | 1.67 | % | 2.61 | % | 2.01 | % | 2.19 | % | 1.98 | % |
Mortgage Servicing: | ||||||||||||||
Loans serviced for others (D) | $ | 12,211,027 | $ | 12,051,392 | $ | 12,007,165 | $ | 11,885,531 | $ | 11,752,223 | ||||
MSRs, at fair value (E) | 204,610 | 201,044 | 192,456 | 210,524 | 200,692 | |||||||||
Percentage of MSRs to loans serviced for others (E / D) | 1.68 | % | 1.67 | % | 1.60 | % | 1.77 | % | 1.71 | % | ||||
Servicing income | $ | 10,586 | $ | 10,498 | $ | 10,286 | $ | 10,191 | $ | 11,034 | $ | 21,084 | $ | 23,086 |
Components of MSR: | ||||||||||||||
MSR - changes in fair value model assumptions | $ | 877 | $ | 7,595 | $ | (19,634) | $ | 4,723 | $ | 2,715 | $ | 8,472 | $ | (4,238) |
Changes in fair value of derivative contract held as an economic hedge, net | (772) | (2,577) | 3,541 | (2,481) | (726) | (3,349) | 220 | |||||||
MSR valuation adjustment, net of changes in fair value of derivative contract held as an economic hedge | $ | 105 | $ | 5,018 | $ | (16,093) | $ | 2,242 | $ | 1,989 | $ | 5,123 | $ | (4,018) |
MSR - current period capitalization | 8,223 | 5,379 | 5,077 | 9,706 | 8,720 | 13,602 | 13,827 | |||||||
MSR - collection of expected cash flows - paydowns | (1,504) | (1,444) | (1,572) | (1,492) | (1,432) | (2,948) | (3,220) | |||||||
MSR - collection of expected cash flows - payoffs and repurchases | (4,030) | (2,942) | (1,939) | (3,105) | (3,611) | (6,972) | (5,732) | |||||||
MSR Activity | $ | 2,794 | $ | 6,011 | $ | (14,527) | $ | 7,351 | $ | 5,666 | $ | 8,805 | $ | 857 |
Summary of Mortgage Banking Revenue: | ||||||||||||||
Production revenue (1)
|
$ | 14,990 | $ | 13,435 | $ | 6,798 | $ | 13,766 | $ | 11,846 | $ | 28,425 | $ | 20,467 |
Servicing income | 10,586 | 10,498 | 10,286 | 10,191 | 11,034 | 21,084 | 23,086 | |||||||
MSR activity | 2,794 | 6,011 | (14,527) | 7,351 | 5,666 | 8,805 | 857 | |||||||
Changes in fair value of early buy-out loans guaranteed by U.S. government agencies | 642 | (2,190) | 4,856 | (4,245) | 1,508 | (1,548) | 3,806 | |||||||
Other revenue | 112 | (91) | 20 | 332 | (73) | 21 | 29 | |||||||
Total mortgage banking revenue | $ | 29,124 | $ | 27,663 | $ | 7,433 | $ | 27,395 | $ | 29,981 | $ | 56,787 | $ | 48,245 |
Changes in fair value on EBOs and loans held-for-investment | $ | 604 | $ | (439) | $ | 1,556 | $ | (338) | $ | (242) | $ | 165 | $ | 303 |
Three Months Ended |
Q2 2024 compared to
Q1 2024
|
Q2 2024 compared to
Q2 2023
|
||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||||||||||
(Dollars in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | $ Change | % Change | $ Change | % Change | |||||||||
Salaries and employee benefits: | ||||||||||||||||||
Salaries | $ | 113,860 | $ | 112,172 | $ | 111,484 | $ | 111,303 | $ | 107,671 | $ | 1,688 | 2 | % | $ | 6,189 | 6 | % |
Commissions and incentive compensation | 52,151 | 51,001 | 48,974 | 48,817 | 44,511 | 1,150 | 2 | 7,640 | 17 | |||||||||
Benefits | 32,530 | 32,000 | 33,513 | 32,218 | 32,741 | 530 | 2 | (211) | (1) | |||||||||
Total salaries and employee benefits | 198,541 | 195,173 | 193,971 | 192,338 | 184,923 | 3,368 | 2 | 13,618 | 7 | |||||||||
Software and equipment | 29,231 | 27,731 | 27,779 | 25,951 | 26,205 | 1,500 | 5 | 3,026 | 12 | |||||||||
Operating lease equipment | 10,834 | 10,683 | 10,694 | 12,020 | 9,816 | 151 | 1 | 1,018 | 10 | |||||||||
Occupancy, net | 19,585 | 19,086 | 18,102 | 21,304 | 19,176 | 499 | 3 | 409 | 2 | |||||||||
Data processing | 9,503 | 9,292 | 8,892 | 10,773 | 9,726 | 211 | 2 | (223) | (2) | |||||||||
Advertising and marketing | 17,436 | 13,040 | 17,166 | 18,169 | 17,794 | 4,396 | 34 | (358) | (2) | |||||||||
Professional fees | 9,967 | 9,553 | 8,768 | 8,887 | 8,940 | 414 | 4 | 1,027 | 11 | |||||||||
Amortization of other acquisition-related intangible assets | 1,122 | 1,158 | 1,356 | 1,408 | 1,499 | (36) | (3) | (377) | (25) | |||||||||
FDIC insurance | 10,429 | 9,381 | 9,303 | 9,748 | 9,008 | 1,048 | 11 | 1,421 | 16 | |||||||||
FDIC insurance - special assessment | - | 5,156 | 34,374 | - | - | (5,156) | NM | - | NM | |||||||||
OREO expense, net | (259) | 392 | (1,559) | 120 | 118 | (651) | NM | (377) | NM | |||||||||
Other: | ||||||||||||||||||
Lending expenses, net of deferred origination costs | 5,335 | 5,078 | 5,330 | 4,777 | 7,890 | 257 | 5 | (2,555) | (32) | |||||||||
Travel and entertainment | 5,340 | 4,597 | 5,754 | 5,449 | 5,401 | 743 | 16 | (61) | (1) | |||||||||
Miscellaneous | 23,289 | 22,825 | 22,722 | 19,111 | 20,127 | 464 | 2 | 3,162 | 16 | |||||||||
Total other | 33,964 | 32,500 | 33,806 | 29,337 | 33,418 | 1,464 | 5 | 546 | 2 | |||||||||
Total Non-Interest Expense | $ | 340,353 | $ | 333,145 | $ | 362,652 | $ | 330,055 | $ | 320,623 | $ | 7,208 | 2 | % | $ | 19,730 | 6 | % |
Six Months Ended | ||||||||
Jun 30, | Jun 30, | $ | % | |||||
(Dollars in thousands) | 2024 | 2023 | Change | Change | ||||
Salaries and employee benefits: | ||||||||
Salaries | $ | 226,032 | $ | 216,025 | $ | 10,007 | 5 | % |
Commissions and incentive compensation | 103,152 | 84,310 | 18,842 | 22 | ||||
Benefits | 64,530 | 61,369 | 3,161 | 5 | ||||
Total salaries and employee benefits | 393,714 | 361,704 | 32,010 | 9 | ||||
Software and equipment | 56,962 | 50,902 | 6,060 | 12 | ||||
Operating lease equipment | 21,517 | 19,649 | 1,868 | 10 | ||||
Occupancy, net | 38,671 | 37,662 | 1,009 | 3 | ||||
Data processing | 18,795 | 19,135 | (340) | (2) | ||||
Advertising and marketing | 30,476 | 29,740 | 736 | 2 | ||||
Professional fees | 19,520 | 17,103 | 2,417 | 14 | ||||
Amortization of other acquisition-related intangible assets | 2,280 | 2,734 | (454) | (17) | ||||
FDIC insurance | 19,810 | 17,677 | 2,133 | 12 | ||||
FDIC insurance - special assessment | 5,156 | - | 5,156 | NM | ||||
OREO expense, net | 133 | (89) | 222 | NM | ||||
Other: | ||||||||
Lending expenses, net of deferred origination costs | 10,413 | 10,989 | (576) | (5) | ||||
Travel and entertainment | 9,937 | 9,991 | (54) | (1) | ||||
Miscellaneous | 46,114 | 42,595 | 3,519 | 8 | ||||
Total other | 66,464 | 63,575 | 2,889 | 5 | ||||
Total Non-Interest Expense | $ | 673,498 | $ | 619,792 | $ | 53,706 | 9 | % |
Three Months Ended | Six Months Ended | |||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||
(Dollars and shares in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||
Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio: | ||||||||||||||
(A) Interest Income (GAAP) | $ | 849,979 | $ | 805,513 | $ | 793,848 | $ | 762,400 | $ | 697,176 | $ | 1,655,492 | $ | 1,336,866 |
Taxable-equivalent adjustment: | ||||||||||||||
- Loans
|
2,305 | 2,246 | 2,150 | 1,923 | 1,882 | 4,551 | 3,754 | |||||||
- Liquidity Management Assets | 567 | 550 | 575 | 572 | 551 | 1,117 | 1,102 | |||||||
- Other Earning Assets | 3 | 5 | 4 | 1 | 1 | 8 | 5 | |||||||
(B) Interest Income (non-GAAP) | $ | 852,854 | $ | 808,314 | $ | 796,577 | $ | 764,896 | $ | 699,610 | $ | 1,661,168 | $ | 1,341,727 |
(C) Interest Expense (GAAP) | 379,369 | 341,319 | 323,874 | 300,042 | 249,639 | 720,688 | 431,334 | |||||||
(D) Net Interest Income (GAAP) (A minus C) | $ | 470,610 | $ | 464,194 | $ | 469,974 | $ | 462,358 | $ | 447,537 | $ | 934,804 | $ | 905,532 |
(E) Net Interest Income (non-GAAP) (B minus C) | $ | 473,485 | $ | 466,995 | $ | 472,703 | $ | 464,854 | $ | 449,971 | $ | 940,480 | $ | 910,393 |
Net interest margin (GAAP) | 3.50 | % | 3.57 | % | 3.62 | % | 3.60 | % | 3.64 | % | 3.53 | % | 3.72 | % |
Net interest margin, fully taxable-equivalent (non-GAAP) | 3.52 | 3.59 | 3.64 | 3.62 | 3.66 | 3.56 | 3.74 | |||||||
(F) Non-interest income | $ | 121,147 | $ | 140,580 | $ | 100,829 | $ | 112,478 | $ | 113,030 | $ | 261,727 | $ | 220,799 |
(G) (Losses) gains on investment securities, net | (4,282) | 1,326 | 2,484 | (2,357) | 0 | (2,956) | 1,398 | |||||||
(H) Non-interest expense | 340,353 | 333,145 | 362,652 | 330,055 | 320,623 | 673,498 | 619,792 | |||||||
Efficiency ratio (H/(D+F-G)) | 57.10 | % | 55.21 | % | 63.81 | % | 57.18 | % | 57.20 | % | 56.15 | % | 55.10 | % |
Efficiency ratio (non-GAAP) (H/(E+F-G)) | 56.83 | 54.95 | 63.51 | 56.94 | 56.95 | 55.88 | 54.86 |
Three Months Ended | Six Months Ended | |||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Jun 30, | Jun 30, | ||||
(Dollars and shares in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||
Reconciliation of Non-GAAP Tangible Common Equity Ratio: | ||||||||||
Total shareholders' equity (GAAP) | $ | 5,536,628 | $ | 5,436,400 | $ | 5,399,526 | $ | 5,015,613 | $ | 5,041,912 |
Less: Non-convertible preferred stock (GAAP) | (412,500) | (412,500) | (412,500) | (412,500) | (412,500) | |||||
Less: Intangible assets (GAAP) | (676,562) | (677,911) | (679,561) | (680,353) | (682,327) | |||||
(I) Total tangible common shareholders' equity (non-GAAP) | $ | 4,447,566 | $ | 4,345,989 | $ | 4,307,465 | $ | 3,922,760 | $ | 3,947,085 |
(J) Total assets (GAAP) | $ | 59,781,516 | $ | 57,576,933 | $ | 56,259,934 | $ | 55,555,246 | $ | 54,286,176 |
Less: Intangible assets (GAAP) | (676,562) | (677,911) | (679,561) | (680,353) | (682,327) | |||||
(K) Total tangible assets (non-GAAP) | $ | 59,104,954 | $ | 56,899,022 | $ | 55,580,373 | $ | 54,874,893 | $ | 53,603,849 |
Common equity to assets ratio (GAAP) (L/J) | 8.6 | % | 8.7 | % | 8.9 | % | 8.3 | % | 8.5 | % |
Tangible common equity ratio (non-GAAP) (I/K) | 7.5 | 7.6 | 7.7 | 7.1 | 7.4 |
Reconciliation of Non-GAAP Tangible Book Value per Common Share: | ||||||||||||||
Total shareholders' equity | $ | 5,536,628 | $ | 5,436,400 | $ | 5,399,526 | $ | 5,015,613 | $ | 5,041,912 | ||||
Less: Preferred stock | (412,500) | (412,500) | (412,500) | (412,500) | (412,500) | |||||||||
(L) Total common equity | $ | 5,124,128 | $ | 5,023,900 | $ | 4,987,026 | $ | 4,603,113 | $ | 4,629,412 | ||||
(M) Actual common shares outstanding | 61,760 | 61,737 | 61,244 | 61,222 | 61,198 | |||||||||
Book value per common share (L/M) | $ | 82.97 | $ | 81.38 | $ | 81.43 | $ | 75.19 | $ | 75.65 | ||||
Tangible book value per common share (non-GAAP) (I/M) | 72.01 | 70.40 | 70.33 | 64.07 | 64.50 | |||||||||
Reconciliation of Non-GAAP Return on Average Tangible Common Equity: | ||||||||||||||
(N) Net income applicable to common shares | $ | 145,397 | $ | 180,303 | $ | 116,489 | $ | 157,207 | $ | 147,759 | $ | 325,700 | $ | 320,966 |
Add: Intangible asset amortization | 1,122 | 1,158 | 1,356 | 1,408 | 1,499 | 2,280 | 2,734 | |||||||
Less: Tax effect of intangible asset amortization | (311) | (291) | (343) | (380) | (402) | (602) | (722) | |||||||
After-tax intangible asset amortization | $ | 811 | $ | 867 | $ | 1,013 | $ | 1,028 | $ | 1,097 | $ | 1,678 | $ | 2,012 |
(O) Tangible net income applicable to common shares (non-GAAP) | $ | 146,208 | $ | 181,170 | $ | 117,502 | $ | 158,235 | $ | 148,856 | $ | 327,378 | $ | 322,978 |
Total average shareholders' equity | $ | 5,450,173 | $ | 5,440,457 | $ | 5,066,196 | $ | 5,083,883 | $ | 5,044,718 | $ | 5,445,315 | $ | 4,970,407 |
Less: Average preferred stock | (412,500) | (412,500) | (412,500) | (412,500) | (412,500) | (412,500) | (412,500) | |||||||
(P) Total average common shareholders' equity | $ | 5,037,673 | $ | 5,027,957 | $ | 4,653,696 | $ | 4,671,383 | $ | 4,632,218 | $ | 5,032,815 | $ | 4,557,907 |
Less: Average intangible assets | (677,207) | (678,731) | (679,812) | (681,520) | (682,561) | (677,969) | (678,924) | |||||||
(Q) Total average tangible common shareholders' equity (non-GAAP) | $ | 4,360,466 | $ | 4,349,226 | $ | 3,973,884 | $ | 3,989,863 | $ | 3,949,657 | $ | 4,354,846 | $ | 3,878,983 |
Return on average common equity, annualized (N/P) | 11.61 | % | 14.42 | % | 9.93 | % | 13.35 | % | 12.79 | % | 13.01 | % | 14.20 | % |
Return on average tangible common equity, annualized (non-GAAP) (O/Q) | 13.49 | 16.75 | 11.73 | 15.73 | 15.12 | 15.12 | 16.79 | |||||||
Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income: | ||||||||||||||
Income before taxes | $ | 211,343 | $ | 249,956 | $ | 165,243 | $ | 224,858 | $ | 211,430 | $ | 461,299 | $ | 454,980 |
Add: Provision for credit losses | 40,061 | 21,673 | 42,908 | 19,923 | 28,514 | 61,734 | 51,559 | |||||||
Pre-tax income, excluding provision for credit losses (non-GAAP) | $ | 251,404 | $ | 271,629 | $ | 208,151 | $ | 244,781 | $ | 239,944 | $ | 523,033 | $ | 506,539 |