Diluted Earnings per Share of
Also Announces Definitive Agreement with World’s
First Quarter Highlights
- Net income available to common shareholders for the first quarter 2017 was
$69.3 million or$0.56 per diluted share as compared to$66.0 million or$0.54 per diluted share for the fourth quarter 2016 and$50.0 million or$0.39 per diluted share for the first quarter 2016.- Adjusted earnings per diluted share for the first quarter 2017 were
$0.57 , a 5.4% increase from the fourth quarter 2016 and a 29.8% increase from the first quarter 2016.
- Adjusted earnings per diluted share for the first quarter 2017 were
- Total average loans grew
$313.0 million or 5.4% annualized from the previous quarter and$1.45 billion or 6.4% as compared to the first quarter 2016. - Total average deposits grew
$257.6 million or 4.2% annualized from the previous quarter and$1.71 billion or 7.4% as compared to the first quarter 2016. - Total revenues1 of
$304.1 million , up$2.4 million or 0.8% from the previous quarter and 8.1% from the first quarter 2016. - Net interest margin of 3.42%, up 13 basis points from the previous quarter and up 15 basis points from the first quarter 2016.
- Efficiency ratio of 64.84% improved 201 basis points from the first quarter 2016.
- Adjusted efficiency ratio2 of 62.25% improved 129 basis points from the first quarter 2016.
- Credit quality metrics remained favorable with a net charge-off ratio of 12 basis points, down 2 basis points from the previous quarter and down 1 basis point from the first quarter 2016.
- Return on average common equity of 9.97%, up 55 basis points from the previous quarter and up 289 basis points from the first quarter 2016.
- Return on average tangible common equity of 10.26%, up 61 basis points from the previous quarter and up 311 basis points from the first quarter 2016.
“We are pleased with our strong first quarter performance, highlighted by an 8 percent year-over-year revenue increase driven by steady balance sheet growth and expanded net interest margin,” said
Balance Sheet
- Total loans ended the quarter at
$24.26 billion , up$402.1 million or 6.8% annualized from the previous quarter and up$1.50 billion or 6.6% as compared to the first quarter 2016.- Commercial and industrial loans grew by
$188.8 million or 6.6% annualized from the previous quarter and$931.3 million or 8.6% as compared to the first quarter 2016. - Consumer loans grew by
$119.7 million or 9.8% annualized from the previous quarter and$719.8 million or 16.5% as compared to the first quarter 2016. - Commercial real estate loans grew by
$93.2 million or 5.1% annualized from the previous quarter and declined$154.4 million or 2.0% as compared to the first quarter 2016.
- Commercial and industrial loans grew by
- Total average loans grew
$313.0 million or 5.4% annualized from the previous quarter and$1.45 billion or 6.4% as compared to the first quarter 2016. - Total average deposits for the quarter were
$24.92 billion , up$257.6 million or 4.2% annualized from the previous quarter and$1.71 billion or 7.4% as compared to the first quarter 2016.- Average core transaction deposits3 grew
$371.7 million or 8.5% annualized from the previous quarter and$1.61 billion or 9.7% as compared to the first quarter 2016.
- Average core transaction deposits3 grew
Core Performance
- Total revenues1 were
$304.1 million , up$2.4 million or 0.8% from the previous quarter and 8.1% from the first quarter 2016. - Net interest income was
$239.9 million , up$6.4 million or 2.7% from the previous quarter and 10.0% from the first quarter 2016. - Net interest margin was 3.42%, up 13 basis points from the previous quarter. Yield on earning assets was 3.88%, up 15 basis points from the previous quarter, and the effective cost of funds was 0.46%, up 2 basis points from the previous quarter.
- Total non-interest income was
$71.8 million , down$2.2 million or 2.9% compared to the previous quarter and up 13.8% from first quarter 2016. - Adjusted non-interest income was
$66.0 million , down$2.6 million or 3.8% from the previous quarter and up 4.0% as compared to the first quarter 2016.- Core banking fees4 were
$32.7 million , down$2.8 million or 7.8% from the previous quarter and 1.8% from the first quarter 2016.- Gains from sale of GGL/SBA loans were
$730 thousand , down$1.4 million or 66.4% from the previous quarter and up 2.7% from the first quarter 2016.
- Gains from sale of GGL/SBA loans were
- Fiduciary and asset management fees, brokerage revenue, and insurance revenues were
$20.7 million , up$334 thousand or 1.6% from the previous quarter and 10.3% from the first quarter 2016. - Mortgage banking income was
$5.8 million , up$262 thousand or 4.8% from the previous quarter and 5.1% from the first quarter 2016.
- Core banking fees4 were
- Total non-interest expense was
$197.4 million , up$4.2 million or 2.2% from the previous quarter and 4.9% from the first quarter 2016.- First quarter 2017 total non-interest expense includes
$6.5 million in restructuring charges consisting primarily of termination benefits incurred in conjunction with a voluntary early retirement program offered during the quarter.
- First quarter 2017 total non-interest expense includes
- Adjusted non-interest expense was
$190.6 million , up$3.6 million or 1.9% from the previous quarter and 6.4% from the first quarter 2016.- Employment expense of
$107.2 million increased$5.5 million or 5.4% from the previous quarter and 5.8% from the first quarter 2016. - Occupancy and equipment expense of
$29.3 million increased$1.5 million or 5.3% from the previous quarter and 10.4% from the first quarter 2016. - Other operating expenses of
$54.1 million decreased$3.4 million or 5.8% from the previous quarter and increased 5.5% from the first quarter 2016. - Efficiency ratio for the first quarter was 64.84% as compared to 63.98% in the previous quarter and 66.85% in the first quarter 2016.
- Adjusted efficiency ratio2 for the first quarter was 62.25% as compared to 61.81% in the previous quarter and 63.54% in the first quarter 2016.
- Employment expense of
Credit Quality
- Non-performing loans were
$158.4 million atMarch 31, 2017 , up$5.0 million or 3.3% from the previous quarter and down$19.8 million or 11.1% fromMarch 31, 2016 . The non-performing loan ratio was 0.65% atMarch 31, 2017 , as compared to 0.64% at the end of the previous quarter and 0.78% atMarch 31, 2016 . - Total non-performing assets were
$187.2 million atMarch 31, 2017 , down$11.5 million or 6.6% from the previous quarter and down$29.4 million or 13.6% fromMarch 31, 2016 . The non-performing asset ratio was 0.77% atMarch 31, 2017 , as compared to 0.74% at the end of the previous quarter and 0.95% atMarch 31, 2016 . - Net charge-offs were
$6.9 million in the first quarter 2017, down$1.4 million or 16.8% from$8.3 million in the previous quarter and 6.0% from the first quarter 2016. The annualized net charge-off ratio was 0.12% in the first quarter as compared to 0.14% in the previous quarter and 0.13% in the first quarter 2016. - Total delinquencies (consisting of loans 30 or more days past due and still accruing) remain low at 0.26% of total loans at
March 31, 2017 as compared to 0.27% the previous quarter and 0.28% atMarch 31, 2016 .
Capital Ratios
- Ratios reflect repurchase of
$15.1 million in common stock during the first quarter 2017. - Common Equity Tier 1 ratio was 9.86% at
March 31, 2017 compared to 9.96% atDecember 31, 2016 . - Tier 1 Capital ratio was 10.18% at
March 31, 2017 compared to 10.07% atDecember 31, 2016 . -
Total Risk Based Capital ratio was 12.09% atMarch 31, 2017 compared to 12.01% atDecember 31, 2016 . - Tier 1 Leverage ratio was 9.13% at
March 31, 2017 compared to 8.99% atDecember 31, 2016 . - Tangible Common Equity ratio was 9.04% at
March 31, 2017 compared to 9.09% atDecember 31, 2016 .
Definitive Agreement with World’s
On
“This transaction will provide
First Quarter Earnings Conference Call
____________________
1 Consist of net interest income and non-interest income excluding investment securities gains, net.
2 Adjusted efficiency ratio: 2016 ratios reflect changes to conform to current year presentation. Foreclosed real estate expense, net and other credit costs are now included in the calculation of the adjusted efficiency ratio, and (decrease) increase in fair value of private equity investments, net is excluded from the calculation.
3 Consist of non-interest bearing, NOW/Savings, and money market deposits excluding SCMs.
4 Include service charges on deposit accounts, bankcard fees, letter of credit fees, ATM fee income, line of credit non-usage fees, gains from sales of government guaranteed loans, and miscellaneous other service charges.
Forward-Looking Statements
This press release and certain of our other filings with the
These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the
Use of Non-GAAP Financial Measures
The measures entitled adjusted diluted earnings per share; average core transaction deposits; adjusted non-interest income; adjusted non-interest expense; adjusted efficiency ratio; return on average tangible common equity; tangible common equity ratio; and common equity Tier 1 (CET1) ratio (fully phased-in) are not measures recognized under
Management believes that these non-GAAP financial measures provide meaningful additional information about
The computations of adjusted diluted earnings per share; average core transaction deposits; adjusted non-interest income; adjusted non-interest expense; adjusted efficiency ratio; return on average tangible common equity; tangible common equity ratio; and common equity Tier 1 (CET1) ratio (fully phased-in) and the reconciliation of these measures to diluted earnings per share; total average deposits; total non-interest income; total non-interest expense; efficiency ratio; return on average common equity; total shareholders’ equity to total assets ratio, and the CET1 ratio are set forth in the tables below.
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||
(dollars in thousands) |
1Q17 |
4Q16 |
1Q16 |
|||||||||||
Adjusted Diluted Earnings per Share | ||||||||||||||
Net income available to common shareholders | $ | 69,298 | 65,990 | 49,972 | ||||||||||
Add: Litigation settlement expense | – | – | 2,700 | |||||||||||
Add: Restructuring charges | 6,511 | 42 | 1,140 | |||||||||||
Add: Merger-related expense | 86 | 1,086 | – | |||||||||||
Add: Fair value adjustment to |
– | 4,716 | 360 | |||||||||||
Add: Loss on early extinguishment of debt | – | – | 4,735 | |||||||||||
Add: Decrease in fair value of private equity investments, net | 1,814 | 499 | 391 | |||||||||||
Subtract: Investment securities gains, net | (7,668 | ) | (5,885 | ) | (67 | ) | ||||||||
Tax effect of adjustments | (267 | ) | (167 | ) | (3,389 | ) | ||||||||
Adjusted net income available to common shareholders | $ | 69,774 | 66,281 | 55,842 | ||||||||||
Weighted average common shares outstanding, diluted | 123,059 | 123,187 | 127,857 | |||||||||||
Adjusted diluted earnings per share | $ | 0.57 | 0.54 | 0.44 | ||||||||||
Average Core Transaction Deposits | ||||||||||||||
Total average deposits | $ | 24,918,855 | 24,661,265 | 23,210,263 | ||||||||||
Subtract: Average brokered deposits | (1,380,786 | ) | (1,380,931 | ) | (1,095,239 | ) | ||||||||
Subtract: Average time deposits excluding average SCM time deposits | (3,151,888 | ) | (3,147,620 | ) | (3,137,378 | ) | ||||||||
Subtract: Average state, county, and municipal (SCM) deposits | (2,238,324 | ) | (2,356,567 | ) | (2,440,749 | ) | ||||||||
Average core transaction deposits | $ | 18,147,857 | 17,776,147 | 16,536,897 | ||||||||||
Adjusted Non-interest Income | ||||||||||||||
Total non-interest income | $ | 71,839 | 74,006 | 63,147 | ||||||||||
Subtract: Investment securities gains, net | (7,668 | ) | (5,885 | ) | (67 | ) | ||||||||
Add: Decrease in fair value of private equity investments, net | 1,814 | 499 | 391 | |||||||||||
Adjusted non-interest income | $ | 65,985 | 68,620 | 63,471 | ||||||||||
Adjusted Non-interest Expense | ||||||||||||||
Total non-interest expense | $ | 197,388 | 193,209 | 188,233 | ||||||||||
Subtract: Restructuring charges | (6,511 | ) | (42 | ) | (1,140 | ) | ||||||||
Subtract: Fair value adjustment to |
– | (4,716 | ) | (360 | ) | |||||||||
Subtract: Litigation settlement expense | – | – | (2,700 | ) | ||||||||||
Subtract: Loss on early extinguishment of debt | – | – | (4,735 | ) | ||||||||||
Subtract: Merger-related expense | (86 | ) | (1,086 | ) | – | |||||||||
Subtract: Amortization of intangibles | (183 | ) | (400 | ) | (121 | ) | ||||||||
Adjusted non-interest expense | $ | 190,608 | 186,965 | 179,177 | ||||||||||
|
||||||||||||||
Reconciliation of Non-GAAP Financial Measures, continued | ||||||||||||||
(dollars in thousands) |
1Q17 |
4Q16 |
1Q16 |
|||||||||||
Adjusted Efficiency Ratio | ||||||||||||||
Adjusted non-interest expense | $ | 190,608 | $ | 186,965 | 179,177 | |||||||||
Net interest income | 239,927 | 233,530 | 218,193 | |||||||||||
Add: Tax equivalent adjustment | 309 | 322 | 305 | |||||||||||
Add: Total non-interest income | 71,839 | 74,006 | 63,147 | |||||||||||
Add: Decrease in fair value of private equity investments, net | 1,814 | 499 | 391
391 |
|||||||||||
Subtract: Investment securities gains, net | (7,668 | ) | (5,885 | ) | (67 | ) | ||||||||
Total revenues | $ | 306,221 | $ | 302,472 | 281,969 | |||||||||
Adjusted efficiency ratio | 62.25 | % | 61.81 | 63.54 | ||||||||||
Return on average tangible common equity | ||||||||||||||
Total average shareholders’ equity | $ | 2,943,643 | 2,912,687 | 2,966,497 | ||||||||||
Average Series C Preferred Stock | (125,980 | ) | (125,980 | ) | (125,980 | ) | ||||||||
Total average common equity | 2,817,663 | 2,786,707 | 2,840,517 | |||||||||||
Average goodwill | (59,649 | ) | (55,144 | ) | (24,431 | ) | ||||||||
Average other intangible assets, net | (13,177 | ) | (233 | ) | (367 | ) | ||||||||
Average tangible common equity | $ | 2,744,837 | 2,731,330 | 2,815,719 | ||||||||||
Net income available to common shareholders, annualized | 281,043 | 262,526 | 200,983 | |||||||||||
Amortization of intangibles, annualized and after-tax | 469 | 1,022 | 307 | |||||||||||
Adjusted net income available to common shareholders, annualized | $ | 281,512 | 263,528 | 201,290 | ||||||||||
Return on average tangible common equity | 10.26 | % | 9.65 | 7.15 | ||||||||||
Tangible common equity ratio | ||||||||||||||
Total assets | $ | 30,679,589 | 30,104,002 | 29,171,257 | ||||||||||
Subtract: |
(57,010 | ) | (59,678 | ) | (24,431 | ) | ||||||||
Subtract: Other intangible assets, net | (12,137 | ) | (13,223 | ) | (277 | ) | ||||||||
Tangible assets | $ | 30,610,442 | 30,031,101 | 29,146,549 | ||||||||||
Total shareholders’ equity | $ | 2,962,127 | 2,927,924 | 2,953,268 | ||||||||||
Subtract: |
(57,010 | ) | (59,678 | ) | (24,431 | ) | ||||||||
Subtract: Other intangible assets, net | (12,137 | ) | (13,223 | ) | (277 | ) | ||||||||
Subtract: Series C Preferred Stock, no par value | (125,980 | ) | (125,980 | ) | (125,980 | ) | ||||||||
Tangible common equity | $ | 2,767,000 | 2,729,043 | 2,802,580 | ||||||||||
Tangible common equity ratio | 9.04 | % | 9.09 | 9.62 | ||||||||||
Common Equity Tier 1 (CET1) ratio (fully phased-in) | ||||||||||||||
Common Equity Tier 1 (CET1) | $ | 2,672,649 | 2,654,287 | 2,609,191 | ||||||||||
Adjustment related to capital components | (39,834 | ) | (94,387 | ) | (125,980 | ) | ||||||||
CET1 (fully phased-in) | $ | 2,632,815 | 2,559,900 | 2,483,211 | ||||||||||
Total risk-weighted assets (fully phased-in) | $ | 27,332,093 | 26,909,755 | 26,231,764 | ||||||||||
Common Equity Tier 1 (CET1) ratio (fully phased-in) | 9.63 | % | 9.51 | 9.47 | ||||||||||
|
||||||||||||||||||||||||
INCOME STATEMENT DATA | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(In thousands, except per share data) | 2017 | 2016 | 1st Quarter | |||||||||||||||||||||
First | Fourth | Third | Second | First | ’17 vs. ’16 | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Change | |||||||||||||||||||
Interest income | $ | 272,401 | 264,534 | 256,554 | 252,393 | 249,323 | 9.3 | % | ||||||||||||||||
Interest expense | 32,474 | 31,004 | 30,547 | 30,944 | 31,130 | 4.3 | ||||||||||||||||||
Net interest income | 239,927 | 233,530 | 226,007 | 221,449 | 218,193 | 10.0 | ||||||||||||||||||
Provision for loan losses | 8,674 | 6,259 | 5,671 | 6,693 | 9,377 | (7.5 | ) | |||||||||||||||||
Net interest income after provision for loan losses | 231,253 | 227,271 | 220,336 | 214,756 | 208,816 | 10.7 | ||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||
Service charges on deposit accounts | 19,774 | 20,653 | 20,822 | 20,240 | 19,710 | 0.3 | ||||||||||||||||||
Fiduciary and asset management fees | 12,151 | 11,903 | 11,837 | 11,580 | 11,274 | 7.8 | ||||||||||||||||||
Brokerage revenue | 7,226 | 7,009 | 6,199 | 7,338 | 6,483 | 11.5 | ||||||||||||||||||
Mortgage banking income | 5,766 | 5,504 | 7,329 | 5,941 | 5,484 | 5.1 | ||||||||||||||||||
Bankcard fees | 8,185 | 8,330 | 8,269 | 8,346 | 8,372 | (2.2 | ) | |||||||||||||||||
Investment securities gains, net | 7,668 | 5,885 | 59 | – | 67 | nm | ||||||||||||||||||
(Decrease) increase in fair value of private equity investments, net | (1,814 | ) | (499 | ) | (249 | ) | 113 | (391 | ) | nm | ||||||||||||||
Other fee income | 4,868 | 4,965 | 5,171 | 5,280 | 4,804 | 1.3 | ||||||||||||||||||
Other non-interest income | 8,015 | 10,256 | 8,718 | 9,048 | 7,344 | 9.1 | ||||||||||||||||||
Total non-interest income | 71,839 | 74,006 | 68,155 | 67,886 | 63,147 | 13.8 | ||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||
Salaries and other personnel expense | 107,191 | 101,662 | 101,945 | 97,061 | 101,358 | 5.8 | ||||||||||||||||||
Net occupancy and equipment expense | 29,331 | 27,867 | 28,120 | 26,783 | 26,577 | 10.4 | ||||||||||||||||||
Third-party processing expense | 12,603 | 12,287 | 11,219 | 11,698 | 11,116 | 13.4 | ||||||||||||||||||
|
6,770 | 6,614 | 6,756 | 6,625 | 6,719 | 0.8 | ||||||||||||||||||
Professional fees | 5,355 | 6,904 | 6,486 | 6,938 | 6,369 | (15.9 | ) | |||||||||||||||||
Advertising expense | 5,912 | 4,905 | 5,597 | 7,351 | 2,410 | 145.3 | ||||||||||||||||||
Foreclosed real estate expense, net | 2,134 | 2,840 | 2,725 | 4,588 | 2,684 | (20.5 | ) | |||||||||||||||||
Merger-related expense | 86 | 1,086 | 550 | – | – | nm | ||||||||||||||||||
Amortization of intangibles | 183 | 400 | – | – | 121 | 51.2 | ||||||||||||||||||
Fair value adjustment to |
– | 4,716 | 360 | 360 | 360 | nm | ||||||||||||||||||
Loss on early extinguishment of debt | – | – | – | – | 4,735 | nm | ||||||||||||||||||
Litigation settlement (recovery) expense | – | – | (189 | ) | – | 2,700 | nm | |||||||||||||||||
Restructuring charges, net | 6,511 | 42 | 1,243 | 5,841 | 1,140 | nm | ||||||||||||||||||
Other operating expenses | 21,312 | 23,886 | 21,059 | 21,366 | 21,944 | (2.9 | ) | |||||||||||||||||
Total non-interest expense | 197,388 | 193,209 | 185,871 | 188,611 | 188,233 | 4.9 | ||||||||||||||||||
Income before income taxes | 105,704 | 108,068 | 102,620 | 94,031 | 83,730 | 26.2 | ||||||||||||||||||
Income tax expense | 33,847 | 39,519 | 37,375 | 33,574 | 31,199 | 8.5 | ||||||||||||||||||
Net income | 71,857 | 68,549 | 65,245 | 60,457 | 52,531 | 36.8 | ||||||||||||||||||
Dividends on preferred stock | 2,559 | 2,559 | 2,559 | 2,559 | 2,559 | – | ||||||||||||||||||
Net income available to common shareholders | $ | 69,298 | 65,990 | 62,686 | 57,898 | 49,972 | 38.7 | % | ||||||||||||||||
Net income per common share, basic | $ | 0.57 | 0.54 | 0.51 | 0.46 | 0.39 | 44.3 | % | ||||||||||||||||
Net income per common share, diluted | 0.56 | 0.54 | 0.51 | 0.46 | 0.39 | 44.1 | ||||||||||||||||||
Cash dividends declared per common share | 0.15 | 0.12 | 0.12 | 0.12 | 0.12 | 25.0 | ||||||||||||||||||
Return on average assets * | 0.96 | % | 0.90 | 0.88 | 0.83 | 0.73 |
23 |
bps |
||||||||||||||||
Return on average common equity * | 9.97 | 9.42 | 8.89 | 8.26 | 7.08 | 289 | ||||||||||||||||||
Weighted average common shares outstanding, basic | 122,300 | 122,341 | 122,924 | 125,100 | 127,227 | (3.9 | )% | |||||||||||||||||
Weighted average common shares outstanding, diluted | 123,059 | 123,187 | 123,604 | 125,699 | 127,857 | (3.8 | ) | |||||||||||||||||
nm – not meaningful | ||||||||||||||||||||||||
bps – basis points | ||||||||||||||||||||||||
* – ratios are annualized | ||||||||||||||||||||||||
|
|||||||||||||
BALANCE SHEET DATA | |
|
|
||||||||||
(Unaudited) | |||||||||||||
(In thousands, except share data) | |||||||||||||
ASSETS | |||||||||||||
Cash and cash equivalents | $ | 380,493 | 395,175 | 352,060 | |||||||||
Interest bearing funds with |
622,460 | 527,090 | 908,527 | ||||||||||
Interest earning deposits with banks | 24,259 | 18,720 | 21,686 | ||||||||||
Federal funds sold and securities purchased under resale agreements |
50,003 | 58,060 | 76,300 | ||||||||||
Trading account assets, at fair value | 1,778 | 9,314 | 4,801 | ||||||||||
Mortgage loans held for sale, at fair value | 57,686 | 51,545 | 62,867 | ||||||||||
Investment securities available for sale, at fair value | 3,782,942 | 3,718,195 | 3,582,244 | ||||||||||
Loans, net of deferred fees and costs | 24,258,468 | 23,856,391 | 22,758,203 | ||||||||||
Allowance for loan losses | (253,514 | ) | (251,758 | ) | (254,516 | ) | |||||||
Loans, net | 24,004,954 | 23,604,633 | 22,503,687 | ||||||||||
Premises and equipment, net | 412,725 | 417,485 | 439,122 | ||||||||||
|
57,010 | 59,678 | 24,431 | ||||||||||
Other intangible assets | 12,137 | 13,223 | 277 | ||||||||||
Other real estate | 20,425 | 22,308 | 38,462 | ||||||||||
Deferred tax asset, net | 359,121 | 395,356 | 464,242 | ||||||||||
Other assets | 893,596 | 813,220 | 692,551 | ||||||||||
Total assets | $ | 30,679,589 | 30,104,002 | 29,171,257 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||||||||||
Liabilities: | |||||||||||||
Deposits: | |||||||||||||
Non-interest bearing deposits | $ | 7,264,856 | 7,085,804 | 6,896,547 | |||||||||
Interest bearing deposits, excluding brokered deposits | 16,452,703 | 16,183,273 | 15,348,863 | ||||||||||
Brokered deposits | 1,388,153 | 1,378,983 | 1,204,518 | ||||||||||
Total deposits | 25,105,712 | 24,648,060 | 23,449,928 | ||||||||||
Federal funds purchased and securities sold under repurchase agreements |
146,480 |
159,699 | 203,979 | ||||||||||
Long-term debt | 2,160,867 | 2,160,881 | 2,360,865 | ||||||||||
Other liabilities | 304,403 | 207,438 | 203,217 | ||||||||||
Total liabilities | 27,717,462 | 27,176,078 | 26,217,989 | ||||||||||
Shareholders’ equity: |
|||||||||||||
Series C Preferred Stock – no par value, 5,200,000 shares outstanding at |
125,980 |
125,980 | 125,980 | ||||||||||
Common stock – |
142,441 |
142,026 | 140,794 | ||||||||||
Additional paid-in capital | 3,025,775 | 3,028,405 | 2,989,854 | ||||||||||
|
(679,746 |
) |
(664,595 | ) | (512,496 | ) | |||||||
Accumulated other comprehensive loss | (54,751 | ) | (55,659 | ) | (740 | ) | |||||||
Retained earnings | 402,428 | 351,767 | 209,876 | ||||||||||
Total shareholders’ equity |
2,962,127 | 2,927,924 | 2,953,268 | ||||||||||
Total liabilities and shareholders’ equity |
$ | 30,679,589 | 30,104,002 | 29,171,257 | |||||||||
|
|||||||||||||||||||||
AVERAGE BALANCES AND YIELDS/RATES (1) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
|
|
||||||||||||||||||||
2017 |
2016 |
||||||||||||||||||||
First | Fourth | Third | Second | First | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
Interest Earning Assets | |||||||||||||||||||||
Taxable investment securities (2) | $ | 3,841,556 | 3,643,510 | 3,544,933 | 3,529,030 | 3,537,131 | |||||||||||||||
Yield | 2.06 | % | 1.92 | 1.83 | 1.89 | 1.91 | |||||||||||||||
Tax-exempt investment securities (2) (4) | $ | 2,730 | 2,824 | 2,943 | 3,491 | 4,091 | |||||||||||||||
Yield (taxable equivalent) | 5.81 | % | 5.82 | 5.96 | 6.08 | 6.37 | |||||||||||||||
Trading account assets | $ | 6,443 | 6,799 | 5,493 | 3,803 | 5,216 | |||||||||||||||
Yield | 1.72 | % | 2.63 | 0.93 | 1.27 | 1.65 | |||||||||||||||
Commercial loans (3) (4) | $ | 19,043,384 | 18,812,659 | 18,419,484 | 18,433,638 | 18,253,169 | |||||||||||||||
Yield | 4.16 | % | 4.05 | 4.03 | 4.04 | 4.03 | |||||||||||||||
Consumer loans (3) | $ | 4,992,682 | 4,911,149 | 4,720,082 | 4,497,147 | 4,334,817 | |||||||||||||||
Yield | 4.40 | % | 4.27 | 4.30 | 4.32 | 4.37 | |||||||||||||||
Allowance for loan losses | $ | (253,927 | ) | (253,713 | ) | (255,675 | ) | (251,101 | ) | (258,097 | ) | ||||||||||
Loans, net (3) | $ | 23,782,139 | 23,470,095 | 22,883,891 | 22,679,684 | 22,329,889 | |||||||||||||||
Yield | 4.25 | % | 4.14 | 4.14 | 4.15 | 4.15 | |||||||||||||||
Mortgage loans held for sale | $ | 46,554 | 77,652 | 87,524 | 72,477 | 63,339 | |||||||||||||||
Yield | 4.01 | % | 3.51 | 3.32 | 3.59 | 3.72 | |||||||||||||||
Federal funds sold, due from |
$ | 654,322 | 982,355 | 998,565 | 907,614 | 885,938 | |||||||||||||||
Yield | 0.77 | % | 0.49 | 0.48 | 0.47 | 0.47 | |||||||||||||||
|
$ | 170,844 | 121,079 | 70,570 | 77,571 | 80,679 | |||||||||||||||
Yield | 3.42 | % | 3.75 | 4.99 | 5.15 | 3.82 | |||||||||||||||
Total interest earning assets | $ | 28,504,589 | 28,304,314 | 27,593,919 | 27,273,670 | 26,906,283 | |||||||||||||||
Yield | 3.88 | % | 3.73 | 3.71 | 3.73 | 3.73 | |||||||||||||||
Interest Bearing Liabilities | |||||||||||||||||||||
Interest bearing demand deposits | $ | 4,784,329 | 4,488,135 | 4,274,117 | 4,233,310 | 4,198,738 | |||||||||||||||
Rate | 0.19 | % | 0.16 | 0.16 | 0.18 | 0.17 | |||||||||||||||
Money market accounts | $ | 7,424,627 | 7,359,067 | 7,227,030 | 7,082,759 | 7,095,778 | |||||||||||||||
Rate | 0.31 | % | 0.29 | 0.29 | 0.31 | 0.32 | |||||||||||||||
Savings deposits | $ | 909,660 | 908,725 | 797,961 | 746,225 | 722,172 | |||||||||||||||
Rate | 0.11 | % | 0.12 | 0.07 | 0.06 | 0.07 | |||||||||||||||
Time deposits under |
$ | 1,215,593 | 1,229,809 | 1,248,294 | 1,262,280 | 1,279,811 | |||||||||||||||
Rate | 0.64 | % | 0.64 | 0.64 | 0.64 | 0.65 | |||||||||||||||
Time deposits over |
$ | 2,029,713 | 2,014,564 | 2,030,242 | 2,016,116 | 2,006,302 | |||||||||||||||
Rate | 0.92 | % | 0.90 | 0.88 | 0.89 | 0.89 | |||||||||||||||
Non maturing brokered deposits | $ | 619,627 | 638,779 | 634,596 | 451,398 | 315,006 | |||||||||||||||
Rate | 0.41 | % | 0.31 | 0.29 | 0.39 | 0.48 | |||||||||||||||
Brokered time deposits | $ | 761,159 | 742,153 | 775,143 | 885,603 | 780,233 | |||||||||||||||
Rate | 0.92 | % | 0.90 | 0.88 | 0.85 | 0.83 | |||||||||||||||
Total interest bearing deposits | $ | 17,744,708 | 17,381,232 | 16,987,383 | 16,677,691 | 16,398,040 | |||||||||||||||
Rate | 0.39 | % | 0.37 | 0.37 | 0.39 | 0.39 | |||||||||||||||
Federal funds purchased and securities sold under repurchase agreements |
$ | 176,854 | 219,429 | 247,378 | 221,276 | 177,921 | |||||||||||||||
Rate | 0.09 | % | 0.08 | 0.09 | 0.09 | 0.10 | |||||||||||||||
Long-term debt | $ | 2,184,072 | 2,190,716 | 2,114,193 | 2,279,043 | 2,361,973 | |||||||||||||||
Rate | 2.83 | % | 2.65 | 2.71 | 2.55 | 2.55 | |||||||||||||||
Total interest bearing liabilities | $ | 20,105,634 | 19,791,377 | 19,348,954 | 19,178,010 | 18,937,934 | |||||||||||||||
Rate | 0.65 | % | 0.62 | 0.63 | 0.65 | 0.66 | |||||||||||||||
Non-interest bearing demand deposits | $ | 7,174,146 | 7,280,033 | 7,042,908 | 6,930,336 | 6,812,223 | |||||||||||||||
Effective cost of funds | 0.46 | % | 0.44 | 0.44 | 0.46 | 0.46 | |||||||||||||||
Net interest margin | 3.42 | % | 3.29 | 3.27 | 3.27 | 3.27 | |||||||||||||||
Taxable equivalent adjustment | $ | 309 | 322 | 330 | 329 | 305 | |||||||||||||||
(1) Yields and rates are annualized. | |||||||||||||||||||||
(2) Excludes net unrealized gains and losses. | |||||||||||||||||||||
(3) Average loans are shown net of unearned income. Non-performing loans are included. | |||||||||||||||||||||
(4) Reflects taxable-equivalent adjustments, using the statutory federal income tax rate of 35%, in adjusting interest on tax-exempt loans and investment securities to a taxable-equivalent basis. |
|||||||||||||||||||||
(5) Included as a component of Other Assets on the consolidated balance sheet | |||||||||||||||||||||
|
||||||||||||||||||||||
NON-PERFORMING LOANS COMPOSITION | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Total | Total | Total | ||||||||||||||||||||
Non-performing | Non-performing | 1Q17 vs. 4Q16 | Non-performing | 1Q17 vs. 1Q16 | ||||||||||||||||||
Loan Type | Loans | Loans |
% change (1) |
Loans | % change | |||||||||||||||||
|
|
|
||||||||||||||||||||
Multi-Family | $ | 1,556 | 1,853 | (65.0 | )% | $ | 223 | nm | ||||||||||||||
Hotels | 323 | 335 | (14.5 | ) | 369 | (12.5 | )% | |||||||||||||||
Office Buildings | 185 | 1,380 | (351.2 | ) | 2,590 | (92.9 | ) | |||||||||||||||
Shopping Centers | – | 354 | (405.6 | ) | – | nm | ||||||||||||||||
Warehouses | 226 | 592 | (250.7 | ) | 1,150 | (80.3 | ) | |||||||||||||||
Other Investment Property | 750 | 754 | (2.2 | ) | 11,498 | (93.5 | ) | |||||||||||||||
|
|
|||||||||||||||||||||
|
3,040 | 5,268 | (171.5 | ) | 15,830 | (80.8 | ) | |||||||||||||||
1-4 |
306 | 305 | 1.3 | 430 | (28.8 | ) | ||||||||||||||||
1-4 Family Investment Mortgage | 8,497 | 8,809 | (14.4 | ) | 7,255 | 17.1 | ||||||||||||||||
Total 1-4 |
8,803 | 9,114 | (13.8 | ) | 7,685 | 14.5 | ||||||||||||||||
Commercial Development | 205 | 168 | 89.3 | 7,919 | (97.4 | ) | ||||||||||||||||
|
9,033 | 8,994 | 1.8 | 9,673 | (6.6 | ) | ||||||||||||||||
Land Acquisition | 5,114 | 7,071 | (112.2 | ) | 14,416 | (64.5 | ) | |||||||||||||||
Land and Development | 14,352 | 16,233 | (47.0 | ) | 32,008 | (55.2 | ) | |||||||||||||||
|
26,195 | 30,615 | (58.6 | ) | 55,523 | (52.8 | ) | |||||||||||||||
Commercial, Financial, and Agricultural | 60,381 | 59,074 | 9.0 | 63,312 | (4.6 | ) | ||||||||||||||||
Owner-Occupied | 26,564 | 16,503 | 247.2 | 18,582 | 43.0 | |||||||||||||||||
|
||||||||||||||||||||||
Total Commercial & Industrial | 86,945 | 75,577 | 61.0 | 81,894 | 6.2 | |||||||||||||||||
Home Equity Lines | 22,918 | 21,551 | 25.7 | 16,432 | 39.5 | |||||||||||||||||
Consumer Mortgages | 19,874 | 22,681 | (50.2 | ) | 21,756 | (8.7 | ) | |||||||||||||||
Credit Cards | – | – | nm | – | nm | |||||||||||||||||
Other Consumer Loans | 2,434 | 2,954 | (71.4 | ) | 2,562 | (5.0 | ) | |||||||||||||||
|
||||||||||||||||||||||
Total Consumer | 45,226 | 47,186 | (16.8 | ) | 40,750 | 11.0 | ||||||||||||||||
Total | $ | 158,366 | 153,378 | 13.2 | % | $ | 178,167 | (11.1 | )% | |||||||||||||
(1) Percentage change is annualized. | ||||||||||||||||||||||
LOANS OUTSTANDING BY TYPE COMPARISON | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Total Loans | Total Loans | 1Q17 vs. 4Q16 | Total Loans | 1Q17 vs. 1Q16 | ||||||||||||||||||
Loan Type | |
|
% change (1) | |
% change | |||||||||||||||||
Multi-Family | $ | 1,638,250 | 1,568,234 | 18.1 | % | $ | 1,524,850 | 7.4 | % | |||||||||||||
Hotels | 794,685 | 748,951 | 24.8 | 718,640 | 10.6 | |||||||||||||||||
Office Buildings | 1,581,460 | 1,568,328 | 3.4 | 1,557,608 | 1.5 | |||||||||||||||||
Shopping Centers | 902,954 | 964,325 | (25.8 | ) | 963,520 | (6.3 | ) | |||||||||||||||
Warehouses | 504,619 | 486,300 | 15.3 | 568,662 | (11.3 | ) | ||||||||||||||||
Other Investment Property | 594,084 | 533,123 | 46.4 | 561,614 | 5.8 | |||||||||||||||||
|
6,016,052 | 5,869,261 | 10.1 | 5,894,894 | 2.1 | |||||||||||||||||
1-4 |
203,151 | 190,477 | 27.0 | 211,312 | (3.9 | ) | ||||||||||||||||
1-4 Family Investment Mortgage | 658,120 | 696,830 | (22.5 | ) | 787,354 | (16.4 | ) | |||||||||||||||
Total 1-4 |
861,271 | 887,307 | (11.9 | ) | 998,666 | (13.8 | ) | |||||||||||||||
Commercial Development | 58,537 | 63,358 | (30.9 | ) | 88,251 | (33.7 | ) | |||||||||||||||
|
130,653 | 136,514 | (17.4 | ) | 161,942 | (19.3 | ) | |||||||||||||||
Land Acquisition | 392,710 | 409,534 | (16.7 | ) | 469,882 | (16.4 | ) | |||||||||||||||
Land and Development | 581,900 | 609,406 | (18.3 | ) | 720,075 | (19.2 | ) | |||||||||||||||
|
7,459,223 | 7,365,974 | 5.1 | 7,613,635 | (2.0 | ) | ||||||||||||||||
Commercial, Financial, and Agricultural | 7,056,032 | 6,915,927 | 8.2 | 6,537,253 | 7.9 | |||||||||||||||||
Owner-Occupied | 4,684,734 | 4,636,016 | 4.3 | 4,272,219 | 9.7 | |||||||||||||||||
Total Commercial & Industrial | 11,740,766 | 11,551,943 | 6.6 | 10,809,472 | 8.6 | |||||||||||||||||
Home Equity Lines | 1,587,102 | 1,617,265 | (7.6 | ) | 1,669,406 | (4.9 | ) | |||||||||||||||
Consumer Mortgages | 2,350,730 | 2,296,604 | 9.6 | 1,970,193 | 19.3 | |||||||||||||||||
Credit Cards | 224,349 | 232,413 | (14.1 | ) | 232,554 | (3.5 | ) | |||||||||||||||
Other Consumer Loans | 922,018 | 818,183 | 51.5 | 492,274 | 87.3 | |||||||||||||||||
Total Consumer | 5,084,199 | 4,964,465 | 9.8 | 4,364,427 | 16.5 | |||||||||||||||||
Unearned Income | (25,720 | ) | (25,991 | ) | (4.2 | ) | (29,331 | ) | (12.3 | ) | ||||||||||||
Total | $ | 24,258,468 | 23,856,391 | 6.8 | % | $ | 22,758,203 | 6.6 | % | |||||||||||||
(1) Percentage change is annualized. | ||||||||||||||||||||||
|
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CREDIT QUALITY DATA | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(Dollars in thousands) |
|
|
|
||||||||||||||||||
2017 |
2016 |
1st Quarter |
|||||||||||||||||||
First | Fourth | Third | Second | First | ’17 vs. ’16 | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Change | ||||||||||||||||
Non-performing Loans | $ | 158,366 | 153,378 | 148,155 | 154,072 | 178,167 | (11.1 | )% | |||||||||||||
Impaired Loans Held for Sale (1) | 8,442 | – | 2,473 | – | – | nm | |||||||||||||||
Other Real Estate | 20,425 | 22,308 | 28,438 | 33,289 | 38,462 | (46.9 | ) | ||||||||||||||
Non-performing Assets | 187,233 | 175,686 | 179,066 | 187,361 | 216,629 | (13.6 | ) | ||||||||||||||
Allowance for loan losses | 253,514 | 251,758 | 253,817 | 255,076 | 254,516 | (0.4 | ) | ||||||||||||||
Net Charge-Offs – Quarter | 6,919 | 8,319 | 6,930 | 6,133 | 7,357 | (6.0 | ) | ||||||||||||||
Net Charge-Offs / Average Loans – Quarter (2) | 0.12 | % | 0.14 | 0.12 | 0.11 | 0.13 | |||||||||||||||
Non-performing Loans / Loans | 0.65 | 0.64 | 0.64 | 0.67 | 0.78 | ||||||||||||||||
Non-performing Assets / Loans, Other Loans Held for Sale & ORE | 0.77 | 0.74 | 0.77 | 0.81 | 0.95 | ||||||||||||||||
Allowance / Loans | 1.05 | 1.06 | 1.09 | 1.11 | 1.12 | ||||||||||||||||
Allowance / Non-performing Loans | 160.08 | 164.14 | 171.32 | 165.56 | 142.85 | ||||||||||||||||
Allowance / Non-performing Loans (3) | 204.94 | 202.01 | 198.94 | 195.25 | 173.64 | ||||||||||||||||
Past Due Loans over 90 days and Still Accruing | $ | 2,777 | 3,135 | 5,358 | 5,964 | 3,214 | (13.6 | ) | |||||||||||||
As a Percentage of Loans Outstanding | 0.01 | % | 0.01 | 0.02 | 0.03 | 0.01 | |||||||||||||||
Total Past Due Loans and Still Accruing | $ | 62,137 | 65,106 | 61,781 | 55,716 | 63,852 | (2.7 | ) | |||||||||||||
As a Percentage of Loans Outstanding | 0.26 | % | 0.27 | 0.27 | 0.24 | 0.28 | |||||||||||||||
Accruing Troubled Debt Restructurings (TDRs) | $ | 172,421 | 195,776 | 201,896 | 205,165 | 209,159 | (17.6 | ) | |||||||||||||
(1) Represent only impaired loans that have been specifically identified to be sold. Impaired loans held for sale are carried at the lower of cost or fair value, less costs to sell, based primarily on estimated sales proceeds net of selling costs. |
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(2) Ratio is annualized. | |||||||||||||||||||||
(3) Excludes non-performing loans for which the expected loss has been charged off. | |||||||||||||||||||||
SELECTED CAPITAL INFORMATION (1) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
March 31, |
December 31, |
March 31, |
|||||||||||||||||||
Tier 1 Capital | $ | 2,758,795 | 2,685,880 | 2,609,191 | |||||||||||||||||
Total Risk-Based Capital | 3,274,612 | 3,201,268 | 3,183,901 | ||||||||||||||||||
Common Equity Tier 1 Ratio (transitional) | 9.86 | % | 9.96 | 10.04 | |||||||||||||||||
Common Equity Tier 1 Ratio (fully phased-in) | 9.63 | 9.51 | 9.47 | ||||||||||||||||||
Tier 1 Capital Ratio | 10.18 | 10.07 | 10.04 | ||||||||||||||||||
Total Risk-Based Capital Ratio | 12.09 | 12.01 | 12.25 | ||||||||||||||||||
Tier 1 Leverage Ratio | 9.13 | 8.99 | 9.15 | ||||||||||||||||||
Common Equity as a Percentage of Total Assets (2) | 9.24 | 9.31 | 9.69 | ||||||||||||||||||
Tangible Common Equity as a Percentage of Tangible Assets (3) | 9.04 | 9.09 | 9.62 | ||||||||||||||||||
Tangible Common Equity as a Percentage of Risk Weighted Assets (3) | 10.21 | 10.24 | 10.79 | ||||||||||||||||||
Book Value Per Common Share (4) | $ | 23.19 | 22.92 | 22.47 | |||||||||||||||||
Tangible Book Value Per Common Share (3) | 22.62 | 22.32 | 22.27 | ||||||||||||||||||
(1) Current quarter regulatory capital information is preliminary. | |||||||||||||||||||||
(2) Common equity consists of Total Shareholders’ Equity less Preferred Stock. | |||||||||||||||||||||
(3) Excludes the carrying value of goodwill and other intangible assets from common equity and total assets | |||||||||||||||||||||
(4) Book Value Per Common Share consists of Total Shareholders’ Equity less Preferred Stock divided by total common shares outstanding. | |||||||||||||||||||||
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