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Cadence Bank Announces Second Quarter 2025 Financial Results; Declares Quarterly Common and Preferred Dividends

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Cadence Bank (NYSE:CADE) reported strong Q2 2025 financial results with net income of $129.9 million ($0.69 per diluted share) and adjusted net income of $137.5 million ($0.73 per diluted share). The bank achieved significant organic growth with $1.1 billion in net loan growth (12.6% annualized) and $376 million in core customer deposits (4.4% annualized).

The quarter was marked by two strategic acquisitions: First Chatham Bank (completed May 1, adding $604M in assets) and Industry Bancshares (completed July 1, adding $4.1B in assets). The bank maintained strong capital positions with Common Equity Tier 1 Capital of 12.2% and declared quarterly dividends of $0.275 per common share and $0.34375 per Series A Preferred Share.

Net interest revenue increased to $378.1 million, up 4.1% from Q1, while maintaining stable credit quality with net charge-offs at 0.24% of average loans.

Cadence Bank (NYSE:CADE) ha riportato solidi risultati finanziari nel secondo trimestre 2025 con un utile netto di 129,9 milioni di dollari (0,69 dollari per azione diluita) e un utile netto rettificato di 137,5 milioni di dollari (0,73 dollari per azione diluita). La banca ha registrato una significativa crescita organica con 1,1 miliardi di dollari di crescita netta dei prestiti (12,6% su base annua) e 376 milioni di dollari in depositi core dei clienti (4,4% su base annua).

Il trimestre è stato caratterizzato da due acquisizioni strategiche: First Chatham Bank (completata il 1° maggio, con l'aggiunta di 604 milioni di dollari in attività) e Industry Bancshares (completata il 1° luglio, con l'aggiunta di 4,1 miliardi di dollari in attività). La banca ha mantenuto solide posizioni di capitale con un Common Equity Tier 1 Capital del 12,2% e ha dichiarato dividendi trimestrali di 0,275 dollari per azione ordinaria e 0,34375 dollari per azione preferenziale Serie A.

I ricavi netti da interessi sono aumentati a 378,1 milioni di dollari, in crescita del 4,1% rispetto al primo trimestre, mantenendo stabile la qualità del credito con svalutazioni nette pari allo 0,24% dei prestiti medi.

Cadence Bank (NYSE:CADE) reportó sólidos resultados financieros en el segundo trimestre de 2025 con un ingreso neto de 129.9 millones de dólares (0.69 dólares por acción diluida) y un ingreso neto ajustado de 137.5 millones de dólares (0.73 dólares por acción diluida). El banco logró un crecimiento orgánico significativo con 1.1 mil millones de dólares en crecimiento neto de préstamos (12.6% anualizado) y 376 millones de dólares en depósitos core de clientes (4.4% anualizado).

El trimestre estuvo marcado por dos adquisiciones estratégicas: First Chatham Bank (completada el 1 de mayo, sumando 604 millones de dólares en activos) e Industry Bancshares (completada el 1 de julio, sumando 4.1 mil millones de dólares en activos). El banco mantuvo fuertes posiciones de capital con un Common Equity Tier 1 Capital del 12.2% y declaró dividendos trimestrales de 0.275 dólares por acción común y 0.34375 dólares por acción preferente Serie A.

Los ingresos netos por intereses aumentaron a 378.1 millones de dólares, un 4.1% más que en el primer trimestre, manteniendo estable la calidad crediticia con pérdidas netas por préstamos del 0.24% del promedio de préstamos.

Cadence Bank (NYSE:CADE)는 2025년 2분기에 순이익 1억 2,990만 달러(희석 주당 0.69달러) 및 조정 순이익 1억 3,750만 달러(희석 주당 0.73달러)를 기록하며 강력한 실적을 발표했습니다. 은행은 순대출 증가 11억 달러(연율 12.6%)와 핵심 고객 예금 3억 7,600만 달러(연율 4.4%)의 유의미한 유기적 성장을 달성했습니다.

이번 분기는 두 건의 전략적 인수합병으로 특징지어졌습니다: First Chatham Bank(5월 1일 완료, 6억 400만 달러 자산 추가)와 Industry Bancshares(7월 1일 완료, 41억 달러 자산 추가). 은행은 12.2%의 Common Equity Tier 1 자본 비율을 유지했으며 보통주 주당 0.275달러, 시리즈 A 우선주 주당 0.34375달러의 분기 배당금을 선언했습니다.

순이자수익은 3억 7,810만 달러로 1분기 대비 4.1% 증가했으며, 순대손충당금은 평균 대출의 0.24%로 안정적인 신용 품질을 유지했습니다.

Cadence Bank (NYSE:CADE) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec un revenu net de 129,9 millions de dollars (0,69 dollar par action diluée) et un revenu net ajusté de 137,5 millions de dollars (0,73 dollar par action diluée). La banque a enregistré une croissance organique significative avec une augmentation nette des prêts de 1,1 milliard de dollars (12,6 % annualisé) et 376 millions de dollars de dépôts clients de base (4,4 % annualisé).

Le trimestre a été marqué par deux acquisitions stratégiques : First Chatham Bank (finalisée le 1er mai, ajoutant 604 millions de dollars d'actifs) et Industry Bancshares (finalisée le 1er juillet, ajoutant 4,1 milliards de dollars d'actifs). La banque a maintenu de solides positions en capital avec un Common Equity Tier 1 Capital de 12,2 % et a déclaré des dividendes trimestriels de 0,275 dollar par action ordinaire et 0,34375 dollar par action privilégiée de série A.

Les revenus nets d’intérêts ont augmenté pour atteindre 378,1 millions de dollars, en hausse de 4,1 % par rapport au premier trimestre, tout en maintenant une qualité de crédit stable avec des pertes nettes sur prêts à 0,24 % des prêts moyens.

Cadence Bank (NYSE:CADE) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 129,9 Millionen US-Dollar (0,69 US-Dollar je verwässerter Aktie) und einem bereinigten Nettoergebnis von 137,5 Millionen US-Dollar (0,73 US-Dollar je verwässerter Aktie). Die Bank erzielte ein signifikantes organisches Wachstum mit 1,1 Milliarden US-Dollar Nettokreditwachstum (12,6 % annualisiert) und 376 Millionen US-Dollar an Kernkundeneinlagen (4,4 % annualisiert).

Das Quartal war geprägt von zwei strategischen Übernahmen: First Chatham Bank (abgeschlossen am 1. Mai, mit 604 Mio. USD an Vermögenswerten) und Industry Bancshares (abgeschlossen am 1. Juli, mit 4,1 Mrd. USD an Vermögenswerten). Die Bank hielt starke Kapitalpositionen mit einem Common Equity Tier 1 Capital von 12,2 % und erklärte vierteljährliche Dividenden von 0,275 USD je Stammaktie und 0,34375 USD je Serie A Vorzugsaktie.

Die Nettozinserträge stiegen auf 378,1 Millionen US-Dollar, ein Anstieg von 4,1 % gegenüber dem ersten Quartal, während die Kreditqualität mit Nettoabschreibungen von 0,24 % der durchschnittlichen Kredite stabil blieb.

Positive
  • Net organic loan growth of $1.1 billion (12.6% annualized)
  • Core customer deposits increased by $376 million (4.4% annualized)
  • Strategic acquisitions added $4.7 billion in total assets
  • Strong capital position with 12.2% Common Equity Tier 1 Capital
  • Net interest revenue increased 4.1% quarter-over-quarter to $378.1 million
  • Improved efficiency ratio to 56.7% from 57.6% in Q1 2025
Negative
  • Net income declined to $129.9 million from $135.1 million year-over-year
  • Net interest margin decreased 6 basis points to 3.40% from Q1 2025
  • Criticized loans increased to 2.65% from 2.39% in Q1 2025
  • Noninterest revenue decreased year-over-year from $100.7M to $98.2M

Insights

Cadence Bank delivered solid Q2 results with strong loan growth and completed two strategic acquisitions that significantly expand its footprint.

Cadence Bank's Q2 2025 results show a healthy financial institution executing effectively on both organic growth and strategic acquisitions. The bank reported adjusted earnings per share of $0.73, up from $0.71 in Q1 and $0.69 year-over-year, demonstrating consistent improvement in profitability.

The bank's loan portfolio expanded impressively, with organic loan growth of $1.1 billion or 12.6% annualized in Q2 alone. This robust growth spans multiple segments including community banking, corporate banking, and private banking, indicating broad-based business momentum rather than concentration in a single area.

On the funding side, Cadence's core customer deposits grew organically by $376 million (4.4% annualized), which is particularly valuable in the current banking environment. The improvement in noninterest-bearing deposits to 22.6% of total deposits (up from 21.2% in Q1) is noteworthy as these zero-cost deposits enhance margin potential.

Credit quality remains stable and well-managed with net charge-offs at 0.24% of average loans (annualized), down from 0.28% a year ago and 0.27% in Q1. The allowance for credit losses stands at 1.34% of total loans, unchanged from the previous quarter, suggesting consistent risk assessment.

Cadence completed two strategic acquisitions that significantly expand its footprint. The First Chatham acquisition (completed May 1) added $604 million in assets in Georgia, while the larger Industry Bancshares acquisition (completed July 1) brought in $4.1 billion in assets and $4.3 billion in deposits across Texas. These acquisitions provide immediate scale benefits and will likely contribute meaningfully to earnings in coming quarters.

The efficiency ratio remained stable at 56.7%, matching the year-ago quarter despite integration costs, indicating disciplined expense management. The bank maintains strong capital levels with Common Equity Tier 1 capital at 12.2%, providing substantial capacity for continued growth and shareholder returns.

While net interest margin compressed slightly to 3.40% from 3.46% in Q1 due to investment securities additions, the underlying loan yields and deposit costs are trending favorably, suggesting potential for margin stabilization or expansion as recent acquisitions are fully integrated.

HOUSTON and TUPELO, Miss., July 23, 2025 /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended June 30, 2025.

Highlights for the second quarter of 2025 included:

  • Reported quarterly net income available to common shareholders of $129.9 million, or $0.69 per diluted common share, and adjusted net income available to common shareholders(1) of $137.5 million, or $0.73 per diluted common share.
  • Achieved quarterly adjusted pre-tax pre-provision net revenue (PPNR)(1) of $206.0 million, an increase of $15.1 million, or 7.9% compared to the second quarter of 2024 and an increase of $16.0 million, or 8.4%, from the first quarter of 2025.
  • Generated net organic loan growth of $1.1 billion for the second quarter of 2025, or 12.6% on an annualized basis; core customer deposit balances, which exclude brokered and public fund deposits, increased organically approximately $376.0 million, or 4.4% on an annualized basis.
  • Maintained strong regulatory capital with Common Equity Tier 1 Capital of 12.2% and Total Capital of 13.8%.
  • Effective May 1, 2025, completed the acquisition of FCB Financial Corp., the parent company of First Chatham Bank, which added approximately $604 million in assets to the Company's presence in Savannah, Georgia and surrounding areas.
  • Effective July 1, 2025, completed the acquisition of Industry Bancshares, Inc., the parent company of Industry State Bank, The First National Bank of Bellville, Fayetteville Bank, Citizens State Bank, The First National Bank of Shiner and Bank of Brenham, which added approximately $4.1 billion in assets to the Company's presence in Central and Southeast Texas.

"Our second quarter results reflect another quarter of strong operating performance driven by continued organic balance sheet growth combined with the closing of the First Chatham transaction effective on May 1," remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. "Our continued balance sheet growth contributed to a meaningful linked quarter increase in revenues, and our operating efficiency continued to improve. Finally, we are pleased to have closed the Industry transaction effective on July 1. We are excited about the opportunity this transaction provides to add valuable core deposits and to further expand our customer base in Texas."

At its regular quarterly meeting today, the Board of Directors declared quarterly cash dividends of $0.275 per share of common stock and $0.34375 per share of Series A Preferred Stock.  The common stock dividend is payable on October 1, 2025 to shareholders of record at the close of business on September 15, 2025.  The preferred stock dividend is payable on August 20, 2025 to shareholders of record at the close of business on August 5, 2025.

Earnings Summary

For the second quarter of 2025, the Company reported net income available to common shareholders of $129.9 million, or $0.69 per diluted common share, compared to $135.1 million, or $0.73 per diluted common share, for the second quarter of 2024 and $130.9 million, or $0.70 per diluted common share, for the first quarter of 2025. Adjusted net income available to common shareholders(1) was $137.5 million, or $0.73 per diluted common share, for the second quarter of 2025, compared with $127.9 million, or $0.69 per diluted common share, for the second quarter of 2024 and $131.4 million, or $0.71 per diluted common share, for the first quarter of 2025.

Return on average assets was 1.09% for the second quarter of 2025, compared to 1.15% for both the second quarter of 2024 and the first quarter of 2025.  Adjusted return on average assets(1) was 1.14% for the second quarter of 2025, compared to 1.09% in the second quarter of 2024 and 1.15% in the first quarter of 2025. Additionally, the Company reported adjusted PPNR(1) of $206.0 million, or 1.67% of average assets on an annualized basis, for the second quarter of 2025, which represents an increase of $15.1 million, or 7.9%, compared to the same quarter of 2024 and an increase of $16.0 million, or 8.4% compared to the first quarter of 2025.

Net Interest Revenue

Net interest revenue was $378.1 million for the second quarter of 2025, compared to $356.3 million for the second quarter of 2024 and $363.2 million for the first quarter of 2025. The net interest margin (fully taxable equivalent) was 3.40% for the second quarter of 2025, compared with 3.27% for the second quarter of 2024 and 3.46% for the first quarter of 2025. 

Net interest revenue increased $15.0 million, or 4.1%, compared to the first quarter of 2025 due primarily to organic loan growth and increases in investment securities, as well as an increase in day count and the closing of the First Chatham transaction. Purchase accounting accretion revenue was $2.6 million for the second quarter of 2025, flat compared to the first quarter of 2025. Average earning assets increased to $44.7 billion compared to $42.6 billion for the first quarter of 2025, primarily as a result of continued organic loan growth as well as an increase in investment securities.  While net interest revenue increased notably, the linked quarter net interest margin declined by 6 basis points due to the impact of approximately $2 billion in investment securities added late in the first quarter of 2025 and early in the second quarter of 2025 that were funded by term FHLB borrowings. Otherwise, yields on our loans and securities, along with the cost of deposits, trended favorably in the second quarter of 2025. 

Yield on net loans, loans held for sale and leases, excluding accretion, was 6.31% for the second quarter of 2025, up 1 basis point from 6.30% for the first quarter of 2025. Investment securities yielded 3.33% in the second quarter of 2025, improving from 3.00% for the first quarter of 2025.  The average cost of total deposits of 2.30% for the second quarter of 2025 declined by 5 basis points from 2.35% for the first quarter of 2025, driven by improvement in the cost of time deposits.

Balance Sheet Activity

Loans and leases, net of unearned income, increased to $35.5 billion at June 30, 2025 compared to $34.1 billion at March 31, 2025.  Net organic loan growth of $1.1 billion, or 12.6% annualized, for the second quarter of 2025 was driven by diverse growth across asset classes in our community bank, corporate bank, private banking, and mortgage teams.  Year-to-date, net organic loan growth was $1.4 billion, or 8.3% annualized.

Total deposits were $40.5 billion as of June 30, 2025, increasing $0.2 billion from $40.3 billion at the end of the first quarter of 2025.  Core customer deposits increased organically by $376.0 million, or 4.4% annualized, compared to March 31, 2025 while brokered deposits declined $437.0 million and public fund deposits declined $301.0 million over the same time period. Year to date, core customer deposits have grown $367.0 million, or 2.1% annualized. The loan to deposit ratio was 87.6% as of June 30, 2025. Noninterest bearing deposits improved to 22.6% of total deposits at the end of the second quarter of 2025 compared to 21.2% at the end of the first quarter of 2025. Borrowed funds increased $2.2 billion during the second quarter of 2025 compared to the first quarter of 2025, due to the addition of FHLB term borrowings.

Total investment securities increased $0.9 billion from March 31, 2025 to $8.8 billion at June 30, 2025, representing 17.5% of total assets. Cash, due from balances and deposits at the Federal Reserve of $1.5 billion at June 30, 2025, was relatively flat compared to $1.6 billion at March 31, 2025.

Credit Results, Provision for Credit Losses and Allowance for Credit Losses

Credit metrics for the second quarter of 2025 reflected continued overall stability in credit quality. Net charge-offs for the second quarter of 2025 were $21.2 million, or 0.24% of average net loans and leases on an annualized basis, compared with net charge-offs of $22.6 million, or 0.28%, for the second quarter of 2024 and net charge-offs of $23.0 million, or 0.27%, for the first quarter of 2025. The provision for credit losses for the second quarter of 2025 was $31.0 million, compared with $22.0 million for the second quarter of 2024 and $20.0 million for the first quarter of 2025. The provision for credit losses for the second quarter of 2025 included $4.2 million in day-one provision associated with performing loans and leases acquired in the First Chatham transaction during the quarter. The allowance for credit losses of $474.7 million at June 30, 2025 was 1.34% of total loans and leases compared to 1.41% of total loans and leases at June 30, 2024 and 1.34% of total loans and leases at March 31, 2025.

Total nonperforming assets as a percent of total assets were 0.49% at June 30, 2025 compared to 0.46% at June 30, 2024 and 0.51% at March 31, 2025. Total nonperforming loans and leases as a percentage of loans and leases, net were 0.65% at June 30, 2025 compared to 0.65% at June 30, 2024 and 0.69% at March 31, 2025.  Other real estate owned and other repossessed assets was $15.6 million at June 30, 2025 compared to the June 30, 2024 balance of $4.8 million and the March 31, 2025 balance of $8.5 million. Criticized loans represented 2.65% of loans at June 30, 2025 compared to 2.51% at June 30, 2024 and 2.39% at March 31, 2025, while classified loans were 2.01% at June 30, 2025 compared to 2.09% at June 30, 2024 and 1.95% at March 31, 2025. 

Noninterest Revenue

Noninterest revenue was $98.2 million for the second quarter of 2025 compared with $100.7 million for the second quarter of 2024 and $85.4 million for the first quarter of 2025. Adjusted noninterest revenue(1) was $98.2 million for the second quarter of 2025 compared with $85.7 million for the second quarter of 2024 and $85.4 million for the first quarter of 2025. Adjusted noninterest revenue(1) for the second quarter of 2024 excludes a gain of $15.0 million primarily related to the sale of Cadence Business Solutions, LLC.

Noninterest revenue improved $12.8 million, or 15.0%, compared to the first quarter of 2025 driven by increases in mortgage banking revenue, card fee and service charge revenue, wealth management revenue, and other noninterest revenue. Wealth management revenue was $25.3 million for the second quarter of 2025, improved from $23.3 million for the first quarter of 2025 including approximately $1 million in seasonal trust tax revenue as well as favorable market conditions for managed assets. Deposit service charge revenue was $18.1 million for the second quarter of 2025, compared to $17.7 million for the first quarter of 2025, partially due to the higher day count in the second quarter of 2025. Credit card, debit card and merchant fee revenue was $13.0 million for the second quarter of 2025, up from $12.0 million for the first quarter of 2025, reflecting typical seasonal trends.

Mortgage banking revenue totaled $8.7 million for the second quarter of 2025, compared to $6.2 million for the second quarter of 2024 and $6.6 million for the first quarter of 2025. The $2.1 million improvement compared to the first quarter of 2025 was primarily due to seasonally higher mortgage production and servicing revenue, as well as linked quarter improvement in the mortgage servicing rights valuation adjustment.

Other noninterest revenue was $33.1 million for the second quarter of 2025, representing an increase of $7.4 million from $25.8 million for the first quarter of 2025, driven by various sources including higher customer swap fees, credit related fees, SBA income, FHLB dividend income and BOLI income.

Noninterest Expense

Noninterest expense for the second quarter of 2025 was $272.9 million, compared with $256.7 million for the second quarter of 2024 and $259.3 million for the first quarter of 2025. Adjusted noninterest expense(1) for the second quarter of 2025 was $270.4 million, compared with $251.1 million for the second quarter of 2024 and $258.6 million for the first quarter of 2025. Adjusted noninterest expense for the second quarter of 2025 excludes $2.2 million of merger expense and $0.6 million of incremental merger related expense. The adjusted efficiency ratio(1) was 56.7% for the second quarter of 2025, compared to 56.7% for the second quarter of 2024 and 57.6% for the first quarter of 2025.

The $11.7 million, or 4.5%, linked quarter increase in adjusted noninterest expense(1) was driven primarily by the closing of the First Chatham transaction combined with costs associated with business growth and strong operating performance.  Salaries and employee benefits increased $4.4 million compared to the first quarter of 2025, including approximately $2 million related to the addition of First Chatham, as well as increases in commission expense associated with strong fee revenue performance and higher share based payment accruals.  Data processing and software expense increased $3.6 million compared to the first quarter of 2025 including both volume increases and other contractual and service increases.  Advertising and public relations reflected seasonal increases of $3.1 million, while other miscellaneous expense declined by $5.3 million due to fraud and operational loss recoveries and lower consulting and regulatory costs.

Capital Management

Total shareholders' equity was $5.9 billion at June 30, 2025, up from $5.3 billion at June 30, 2024 and $5.7 billion at March 31, 2025.  Estimated regulatory capital ratios at June 30, 2025 included Common Equity Tier 1 capital of 12.2%, Tier 1 capital of 12.6%, Total risk-based capital of 13.8%, and Tier 1 leverage capital of 10.3%. During the second quarter of 2025, the Company did not repurchase any shares of Company common stock. The Company had 186.3 million outstanding shares of common stock as of June 30, 2025.

Summary

Rollins concluded, "The hard work and successes of our team over the first half of 2025 have had a meaningful impact on our Company's growth and financial results. These efforts have driven continued improvement in many of our performance metrics, including earnings per share and operating efficiency, all while maintaining strong credit quality and capital. With the growth we have achieved, both organically and through the strategic partnerships with Industry and First Chatham, I am encouraged with our momentum into the remainder of this year and into 2026." 

Key Transactions

On May 1, 2025, the Company completed the merger with FCB Financial Corp., the bank holding company for First Chatham Bank (collectively referred to as "First Chatham"), pursuant to which First Chatham was merged with and into the Company. First Chatham was a Savannah, Georgia-based community bank that operated eight branches across the Greater Savannah Area. As of April 30, 2025, First Chatham reported total assets of $604 million, total loans of $387 million, and total deposits of $525 million. Under the terms of the definitive merger agreement, the Company issued approximately 2.3 million shares of common stock plus $23.1 million in cash for all outstanding shares of First Chatham. The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies. 

On July 1, 2025, the Company completed the merger with Industry Bancshares, Inc., the bank holding company for Industry State Bank, The First National Bank of Bellville, Fayetteville Bank, Citizens State Bank, The First National Bank of Shiner and Bank of Brenham, (collectively referred to as "Industry"), pursuant to which Industry was merged with and into the Company. Founded in 1911 and headquartered in Industry, Texas, Industry operated 27 full-service branches across Central and Southeast Texas. As of June 30, 2025, Industry reported total assets of $4.1 billion, total loans of $1.1 billion, and total deposits of $4.3 billion. Under the terms of the definitive merger agreement, the Company paid $20.0 million in cash for all outstanding shares of Industry.

Conference Call and Webcast

The Company will conduct a conference call to discuss its second quarter 2025 financial results on July 24, 2025, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing http://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.

About Cadence Bank

Cadence Bank (NYSE: CADE) is a $55 billion regional financial services company committed to helping people, companies and communities prosper. With more than 390 locations spanning the South and Texas, Cadence offers comprehensive banking, investment, trust and mortgage products and services to meet the needs of individuals, businesses and corporations. Accolades include being recognized as one of the nation's best employers by Forbes and U.S. News & World Report and a 2025 America's Best Banks by Forbes. Cadence has dutifully served customers for nearly 150 years. Learn more at www.cadencebank.com. Cadence Bank, Member FDIC. Equal Housing Lender.

(1) Considered a non-GAAP financial measure. A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears in Table 14 "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 21 of this news release.

Forward-Looking Statements

Certain statements made in this news release constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the "bespeaks caution" doctrine. These statements are often, but not exclusively, made through the use of words or phrases like "assume," "believe," "budget," "contemplate," "continue," "could," "foresee," "indicate," "may," "might," "outlook," "prospect," "potential," "roadmap," "should," "target," "will," "would," the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, trade, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures or results of operations as well as the impact on the Company's financial condition, future net income and earnings per share resulting from the integration of its recently completed acquisitions of First Chatham and Industry, and the Company's ability to deploy capital into strategic and growth initiatives. Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.

Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, trade, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; reputational risks arising from media coverage of the banking industry and digital misinformation; the risks of changes and continued volatility in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; continued uncertainties surrounding the impact of the U.S.'s tariffs, including potential negative impact to our loan portfolio and profitability, potential for increases in problem loans, potential re-evaluation of credit marks and interest rates, and lower equity valuation and potential slowdown in capital markets; uncertain duration of trade conflicts; magnitude of the impact that the tariffs may continue to have on our customers' businesses; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies, including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements; the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers. The Company also faces risks from natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from the U.S.'s tariffs and international trade conflicts, Russia's military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.

The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the Company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with its primary federal regulator, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors," and in the Company's Current Reports on Form 8-K.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.

 

Table 1

Selected Financial Data

 


Quarter Ended


Year-to-date

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

Earnings Summary:









Interest revenue

$    635,599

$     599,257

$    620,321

$    647,713

$    642,210


$  1,234,856

$  1,279,323

Interest expense

257,459

236,105

255,790

286,255

285,892


493,564

569,097

Net interest revenue

378,140

363,152

364,531

361,458

356,318


741,292

710,226

Provision for credit losses

31,000

20,000

15,000

12,000

22,000


51,000

44,000

Net interest revenue, after provision for credit losses

347,140

343,152

349,531

349,458

334,318


690,292

666,226

Noninterest revenue

98,181

85,387

86,165

85,901

100,658


183,568

184,444

Noninterest expense

272,863

259,349

266,186

259,438

256,697


532,212

519,904

Income before income taxes

172,458

169,190

169,510

175,921

178,279


341,648

330,766

Income tax expense

37,813

35,968

36,795

39,482

40,807


73,781

76,316

Net income

134,645

133,222

132,715

136,439

137,472


267,867

254,450

Less: Preferred dividends

4,744

2,372

2,372

2,372

2,372


7,116

4,744

Net income available to common shareholders

$    129,901

$     130,850

$    130,343

$    134,067

$    135,100


$    260,751

$     249,706










Balance Sheet - Period End Balances








Total assets

$  50,378,840

$ 47,743,294

$  47,019,190

$  49,204,933

$  47,984,078


$  50,378,840

$ 47,984,078

Total earning assets

45,400,518

43,172,997

42,386,627

44,834,897

43,525,688


45,400,518

43,525,688

Available for sale securities

8,837,400

7,912,159

7,293,988

7,841,685

7,921,422


8,837,400

7,921,422

Loans and leases, net of unearned income

35,465,181

34,051,610

33,741,755

33,303,972

33,312,773


35,465,181

33,312,773

Allowance for credit losses (ACL)

474,651

457,791

460,793

460,859

470,022


474,651

470,022

Net book value of acquired loans

4,594,171

4,365,789

4,783,206

5,521,000

5,543,419


4,594,171

5,543,419

Unamortized net discount on acquired loans

19,414

13,060

15,611

17,988

20,874


19,414

20,874

Total deposits

40,493,518

40,335,728

40,496,201

38,844,360

37,858,659


40,493,518

37,858,659

Total deposits and repurchase agreements

40,514,743

40,355,399

40,519,817

38,861,324

37,913,693


40,514,743

37,913,693

Other short-term borrowings

1,575,000

235,000

—

3,500,000

3,500,000


1,575,000

3,500,000

Subordinated and long-term borrowings

1,430,674

560,690

10,706

225,823

269,353


1,430,674

269,353

Total shareholders' equity

5,916,283

5,718,541

5,569,683

5,572,863

5,287,758


5,916,283

5,287,758

Total shareholders' equity, excluding AOCI (1)

6,492,440

6,339,744

6,264,178

6,163,205

6,070,220


6,492,440

6,070,220

Common shareholders' equity

5,749,290

5,551,548

5,402,690

5,405,870

5,120,765


5,749,290

5,120,765

Common shareholders' equity, excluding AOCI (1)

$  6,325,447

$  6,172,751

$  6,097,185

$  5,996,212

$  5,903,227


$  6,325,447

$  5,903,227










Balance Sheet - Average Balances








Total assets

$  49,356,696

$ 47,135,431

$  47,263,538

$  47,803,977

$  48,192,719


$  48,252,199

$ 48,417,630

Total earning assets

44,741,277

42,637,002

42,920,125

43,540,045

43,851,822


43,694,953

44,038,950

Available for sale securities

8,814,463

7,302,172

7,636,683

7,915,636

8,033,552


8,062,495

8,151,630

Loans and leases, net of unearned income

34,762,808

33,944,416

33,461,931

33,279,819

32,945,526


34,355,873

32,841,550

Total deposits

39,897,600

40,353,292

39,743,224

37,634,453

38,100,087


40,124,186

38,260,680

Total deposits and repurchase agreements

39,916,099

40,376,248

39,761,277

37,666,828

38,165,908


40,144,901

38,398,265

Other short-term borrowings

1,419,615

108,389

905,815

3,512,218

3,500,000


767,624

3,500,000

Subordinated and long-term borrowings

1,338,059

129,030

123,442

265,790

404,231


736,885

419,405

Total shareholders' equity

5,827,081

5,651,592

5,589,361

5,420,826

5,207,254


5,739,821

5,200,651

Common shareholders' equity

$  5,660,088

$  5,484,599

$  5,422,368

$  5,253,833

$  5,040,261


$  5,572,828

$  5,033,658










Nonperforming Assets:









Nonperforming loans and leases (NPL) (2) (3)

231,243

235,952

264,692

272,954

216,746


231,243

216,746

Other real estate owned and other assets

15,599

8,452

5,754

5,354

4,793


15,599

4,793

Nonperforming assets (NPA)

$    246,842

$     244,404

$    270,446

$    278,308

$    221,539


$    246,842

$     221,539



(1)

Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26.

(2)

At June 30, 2025, $94.0 million of NPL is covered by government guarantees from the SBA, FHA, VA or USDA. Refer to Table 7 on page 13 for related information.

(3)

At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million.

 

Table 2

Selected Financial Ratios

 


Quarter Ended


Year-to-date


Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

Financial Ratios and Other Data:









Return on average assets (2)

1.09 %

1.15 %

1.12 %

1.14 %

1.15 %


1.12

1.06

Adjusted return on average assets  (1)(2)

1.14

1.15

1.11

1.15

1.09


1.14

1.03

Return on average common shareholders' equity (2)

9.21

9.68

9.56

10.15

10.78


9.44

9.98

Adjusted return on average common shareholders' equity (1)(2)

9.74

9.72

9.53

10.27

10.21


9.73

9.68

Return on average tangible common equity (1)(2)

12.41

13.15

13.06

14.04

15.18


12.77

14.07

Adjusted return on average tangible common equity (1)(2)

13.13

13.20

13.02

14.21

14.37


13.17

13.65

Pre-tax pre-provision net revenue to total average assets (1)(2)

1.65

1.63

1.55

1.56

1.67


1.64

1.56

Adjusted pre-tax pre-provision net revenue to total average assets (1)(2)

1.67

1.63

1.55

1.58

1.59


1.65

1.52

Net interest margin-fully taxable equivalent

3.40

3.46

3.38

3.31

3.27


3.43

3.25

Net interest rate spread-fully taxable equivalent

2.68

2.74

2.59

2.45

2.45


2.70

2.42

Efficiency ratio fully tax equivalent (1)

57.21

57.74

58.98

57.90

56.09


57.47

58.03

Adjusted efficiency ratio fully tax equivalent (1)

56.69

57.58

59.09

57.73

56.73


57.12

58.42

Loan/deposit ratio

87.58 %

84.42 %

83.32 %

85.74 %

87.99 %


87.58 %

87.99 %

Full time equivalent employees

5,514

5,356

5,335

5,327

5,290


5,514

5,290










Credit Quality Ratios:









Net charge-offs to average loans and leases (2)

0.24 %

0.27 %

0.17 %

0.26 %

0.28 %


0.26 %

0.26 %

Provision for credit losses to average loans and leases (2)

0.36

0.24

0.18

0.14

0.27


0.30

0.27

ACL to loans and leases, net

1.34

1.34

1.37

1.38

1.41


1.34

1.41

ACL to NPL

205.26

194.02

174.09

168.84

216.85


205.26

216.85

NPL to loans and leases, net

0.65

0.69

0.78

0.82

0.65


0.65

0.65

NPA to total assets

0.49

0.51

0.58

0.57

0.46


0.49

0.46










Equity Ratios:









Total shareholders' equity to total assets

11.74 %

11.98 %

11.85 %

11.33 %

11.02 %


11.74 %

11.02 %

Total common shareholders' equity to total assets

11.41

11.63

11.49

10.99

10.67


11.41

10.67

Tangible common shareholders' equity to tangible assets (1)

8.74

8.87

8.67

8.28

7.87


8.74

7.87

Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI (1)

9.80

10.07

10.04

9.40

9.40


9.80

9.40










Capital Adequacy (3):









Common Equity Tier 1 capital

12.2 %

12.4 %

12.4 %

12.3 %

11.9 %


12.2 %

11.9 %

Tier 1 capital

12.6

12.9

12.8

12.7

12.3


12.6

12.3

Total capital

13.8

14.1

14.0

14.5

14.2


13.8

14.2

Tier 1 leverage capital

10.3

10.6

10.4

10.1

9.7


10.3

9.7


(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26.

(2)     Annualized.

(3)     Current quarter regulatory capital ratios are estimated.

 

Table 3

Selected Financial Information

 


Quarter Ended


Year-to-date


Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

Common Share Data:









Diluted earnings per share

$             0.69

$           0.70

$           0.70

$           0.72

$           0.73


1.40

1.35

Adjusted earnings per share (1)

0.73

0.71

0.70

0.73

0.69


1.44

1.31

Cash dividends per share

0.275

0.275

0.250

0.250

0.250


0.55

0.50

Book value per share

30.86

30.16

29.44

29.65

28.07


30.86

28.07

Tangible book value per share (1)

22.94

22.30

21.54

21.68

20.08


22.94

20.08

Market value per share (last)

31.98

30.36

34.45

31.85

28.28


31.98

28.28

Market value per share (high)

32.68

36.53

40.20

34.13

29.95


36.53

30.03

Market value per share (low)

25.22

28.90

30.21

27.46

26.16


25.22

24.99

Market value per share (average)

29.97

33.13

35.17

30.96

28.14


31.53

27.97

Dividend payout ratio

39.86 %

39.29 %

35.71 %

34.72 %

34.25 %


39.29 %

37.04 %

Adjusted dividend payout ratio (1)

37.67 %

38.73 %

35.71 %

34.25 %

36.23 %


38.19 %

38.17 %

Total shares outstanding

186,307,016

184,046,420

183,527,575

182,315,142

182,430,427


186,307,016

182,430,427

Average shares outstanding - diluted

187,642,873

186,121,979

186,038,243

185,496,110

185,260,963


186,888,073

185,417,547










Yield/Rate:









(Taxable equivalent basis)









Loans, loans held for sale, and leases

6.34 %

6.33 %

6.42 %

6.64 %

6.59 %


6.34 %

6.55 %

Loans, loans held for sale, and leases excluding net accretion on acquired loans and leases

6.31

6.30

6.40

6.61

6.56


6.31

6.51

Available for sale securities:









Taxable

3.32

2.99

3.03

3.03

3.18


3.17

3.15

Tax-exempt

4.14

4.04

3.93

3.97

4.12


4.09

4.19

Other investments

4.41

4.42

4.77

5.37

5.45


4.41

5.47

Total interest earning assets and revenue

5.70

5.71

5.76

5.92

5.90


5.70

5.85

Deposits

2.30

2.35

2.44

2.55

2.53


2.32

2.49

Interest bearing demand and money market

2.69

2.69

2.87

3.13

3.13


2.69

3.12

Savings

0.57

0.57

0.57

0.57

0.57


0.57

0.57

Time

3.98

4.10

4.28

4.50

4.53


4.04

4.47

Total interest bearing deposits

2.92

2.96

3.12

3.30

3.28


2.94

3.24

Fed funds purchased, securities sold under agreement to repurchase and other

4.45

4.45

4.58

5.10

4.47


4.45

4.76

Short-term FHLB borrowings

4.31

4.43

—

—

—


4.31

—

Short-term BTFP borrowings

—

—

4.77

4.77

4.77


—

4.81

Total interest bearing deposits and short-term borrowings

2.98

2.96

3.16

3.46

3.44


2.97

3.41

Subordinated and long-term borrowings

4.07

4.05

4.14

4.30

4.41


4.07

4.38

Total interest bearing liabilities

3.02

2.97

3.17

3.47

3.45


3.00

3.43

Interest bearing liabilities to interest earning assets

76.39 %

75.70 %

74.82 %

75.40 %

75.97 %


76.05 %

75.85 %

Net interest income tax equivalent adjustment (in thousands)

$              637

$            630

$            648

$            694

$            644


$           1,267

$           1,280


(1)     Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26.

 

Table 4

Consolidated Balance Sheets

(Unaudited)

 


As of

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024

ASSETS






Cash and due from banks

$         710,679

$         578,513

$         624,884

$         504,827

$         516,715

Interest bearing deposits with other banks and Federal funds sold

825,878

988,787

1,106,692

3,483,299

2,093,820

Available for sale securities, at fair value

8,837,400

7,912,159

7,293,988

7,841,685

7,921,422

Loans and leases, net of unearned income

35,465,181

34,051,610

33,741,755

33,303,972

33,312,773

Allowance for credit losses

474,651

457,791

460,793

460,859

470,022

Net loans and leases

34,990,530

33,593,819

33,280,962

32,843,113

32,842,751

Loans held for sale, at fair value

272,059

220,441

244,192

205,941

197,673

Premises and equipment, net

806,879

780,963

783,456

797,556

808,705

Goodwill

1,387,990

1,366,923

1,366,923

1,366,923

1,366,923

Other intangible assets, net

87,814

79,522

83,190

87,094

91,027

Bank-owned life insurance

671,813

654,964

651,838

652,057

648,970

Other assets

1,787,798

1,567,203

1,583,065

1,422,438

1,496,072

Total Assets

$    50,378,840

$    47,743,294

$    47,019,190

$    49,204,933

$    47,984,078

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      9,154,050

$      8,558,412

$      8,591,805

$      9,242,693

$      8,586,265

Interest bearing

18,936,579

19,221,356

19,345,114

18,125,553

18,514,015

 Savings

2,641,482

2,626,901

2,588,406

2,560,803

2,613,950

 Time deposits

9,761,407

9,929,059

9,970,876

8,915,311

8,144,429

Total deposits

40,493,518

40,335,728

40,496,201

38,844,360

37,858,659

Securities sold under agreement to repurchase

21,225

19,671

23,616

16,964

55,034

Other short-term borrowings

1,575,000

235,000

—

3,500,000

3,500,000

Subordinated and long-term borrowings

1,430,674

560,690

10,706

225,823

269,353

Other liabilities

942,140

873,664

918,984

1,044,923

1,013,274

Total Liabilities

44,462,557

42,024,753

41,449,507

43,632,070

42,696,320

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

465,768

460,116

458,819

455,788

456,076

Capital surplus

2,805,171

2,736,799

2,742,913

2,729,440

2,724,656

Accumulated other comprehensive loss

(576,157)

(621,203)

(694,495)

(590,342)

(782,462)

Retained earnings

3,054,508

2,975,836

2,895,453

2,810,984

2,722,495

Total Shareholders' Equity

5,916,283

5,718,541

5,569,683

5,572,863

5,287,758

Total Liabilities & Shareholders' Equity

$    50,378,840

$    47,743,294

$    47,019,190

$    49,204,933

$    47,984,078

 

Table 5

Consolidated Quarterly Average Balance Sheets

(Unaudited)

 

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024

ASSETS






Cash and due from banks

$         526,612

$         560,581

$         490,161

$         435,569

$         456,938

Interest bearing deposits with other banks and Federal funds sold

1,017,815

1,275,153

1,698,300

2,210,277

2,758,385

Available for sale securities, at fair value

8,814,463

7,302,172

7,636,683

7,915,636

8,033,552

Loans and leases, net of unearned income

34,762,808

33,944,416

33,461,931

33,279,819

32,945,526

Allowance for credit losses

467,521

465,332

465,971

469,919

475,181

Net loans and leases

34,295,287

33,479,084

32,995,960

32,809,900

32,470,345

Loans held for sale, at fair value

146,191

115,261

123,211

134,313

114,359

Premises and equipment, net

793,793

785,194

796,394

807,353

815,920

Goodwill

1,379,076

1,366,923

1,366,923

1,366,923

1,367,358

Other intangible assets, net

81,845

81,527

85,323

89,262

93,743

Bank-owned life insurance

662,909

652,689

651,166

650,307

646,124

Other assets

1,638,705

1,516,847

1,419,417

1,384,437

1,435,995

Total Assets

$    49,356,696

$    47,135,431

$    47,263,538

$    47,803,977

$    48,192,719

LIABILITIES






Deposits:






Demand: Noninterest bearing

$      8,494,542

$      8,339,414

$      8,676,765

$      8,616,534

$      8,757,029

Interest bearing

18,799,895

19,428,376

18,845,689

18,043,686

18,770,093

 Savings

2,646,190

2,607,366

2,573,961

2,584,761

2,652,019

 Time deposits

9,956,973

9,978,136

9,646,809

8,389,472

7,920,946

Total deposits

39,897,600

40,353,292

39,743,224

37,634,453

38,100,087

Securities sold under agreement to repurchase

18,499

22,956

18,053

32,375

65,821

Other short-term borrowings

1,419,615

108,389

905,815

3,512,218

3,500,000

Subordinated and long-term borrowings

1,338,059

129,030

123,442

265,790

404,231

Other liabilities

855,842

870,172

883,643

938,315

915,326

Total Liabilities

43,529,615

41,483,839

41,674,177

42,383,151

42,985,465

SHAREHOLDERS' EQUITY






Preferred stock

166,993

166,993

166,993

166,993

166,993

Common stock

463,937

458,830

457,798

455,954

456,618

Capital surplus

2,779,736

2,744,442

2,735,323

2,725,581

2,724,838

Accumulated other comprehensive loss

(616,527)

(663,883)

(634,307)

(703,619)

(838,710)

Retained earnings

3,032,942

2,945,210

2,863,554

2,775,917

2,697,515

Total Shareholders' Equity

5,827,081

5,651,592

5,589,361

5,420,826

5,207,254

Total Liabilities & Shareholders' Equity

$    49,356,696

$    47,135,431

$    47,263,538

$    47,803,977

$    48,192,719

 

Table 6

Consolidated Statements of Income

(Unaudited)

 


Quarter Ended


Year-to-date

(Dollars in thousands, except per share data)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

INTEREST REVENUE:









Loans and leases

$        549,691

$        530,050

$        540,147

$        555,862

$        539,685


$  1,079,741

$  1,068,624

Available for sale securities:









Taxable

72,355

53,232

57,476

59,732

62,852


125,587

126,257

Tax-exempt

634

629

635

638

638


1,263

1,325

Loans held for sale

1,736

1,449

1,694

1,630

1,652


3,185

2,837

Short-term investments

11,183

13,897

20,369

29,851

37,383


25,080

80,280

Total interest revenue

635,599

599,257

620,321

647,713

642,210


1,234,856

1,279,323

INTEREST EXPENSE:









Interest bearing demand deposits and money market accounts

125,874

128,831

135,965

142,179

146,279


254,705

295,682

Savings

3,747

3,644

3,684

3,695

3,743


7,391

7,544

Time deposits

98,721

100,900

103,785

94,944

89,173


199,621

169,842

Federal funds purchased and securities sold under agreement to repurchase

2,939

1,124

293

561

724


4,063

3,247

Short-term borrowings

12,594

317

10,779

42,003

41,544


12,911

83,653

Subordinated and long-term borrowings

13,584

1,289

1,284

2,873

4,429


14,873

9,129

Total interest expense

257,459

236,105

255,790

286,255

285,892


493,564

569,097

Net interest revenue

378,140

363,152

364,531

361,458

356,318


741,292

710,226

Provision for credit losses

31,000

20,000

15,000

12,000

22,000


51,000

44,000

Net interest revenue, after provision for credit losses

347,140

343,152

349,531

349,458

334,318


690,292

666,226










NONINTEREST REVENUE:









Wealth management

25,298

23,279

23,973

24,110

24,006


48,577

46,839

Deposit service charges

18,061

17,736

18,694

18,814

17,652


35,797

35,989

Credit card, debit card and merchant fees

12,972

11,989

12,664

12,649

12,770


24,961

24,932

Mortgage banking

8,711

6,638

3,554

1,133

6,173


15,349

12,616

Security losses

—

(9)

(3)

(2,947)

(4)


(9)

(12)

Other noninterest income

33,139

25,754

27,283

32,142

40,061


58,893

64,080

Total noninterest revenue

98,181

85,387

86,165

85,901

100,658


183,568

184,444










NONINTEREST EXPENSE:









Salaries and employee benefits

157,340

152,972

152,381

152,237

148,038


310,312

304,689

Occupancy and equipment

30,039

28,477

27,275

28,894

29,367


58,516

58,007

Data processing and software

30,701

27,132

33,226

29,164

29,467


57,833

59,494

Deposit insurance assessments

8,571

8,643

8,284

7,481

15,741


17,214

24,156

Amortization of intangibles

4,046

3,668

3,904

3,933

3,999


7,714

8,065

Merger expense

2,179

315

—

—

—


2,494

—

Other noninterest expense

39,987

38,142

41,116

37,729

30,085


78,129

65,493

Total noninterest expense

272,863

259,349

266,186

259,438

256,697


532,212

519,904

Income before income taxes

172,458

169,190

169,510

175,921

178,279


341,648

330,766

Income tax expense

37,813

35,968

36,795

39,482

40,807


73,781

76,316

Net income

134,645

133,222

132,715

136,439

137,472


267,867

254,450

Less: Preferred dividends

4,744

2,372

2,372

2,372

2,372


7,116

4,744

Net income available to common shareholders

$        129,901

$        130,850

$        130,343

$        134,067

$        135,100


$     260,751

$     249,706

Diluted earnings per common share

$              0.69

$              0.70

$              0.70

$              0.72

$              0.73


$           1.40

$           1.35

 

Table 7

Selected Loan and Lease Portfolio Data

(Unaudited)

 


Quarter Ended

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024

LOAN AND LEASE PORTFOLIO:






Commercial and industrial






Non-real estate

$     9,049,094

$     8,688,653

$     8,670,529

$     8,692,639

$     9,136,929

Owner occupied

4,762,408

4,667,477

4,665,015

4,557,723

4,475,647

Total commercial and industrial

13,811,502

13,356,130

13,335,544

13,250,362

13,612,576

Commercial real estate






Construction, acquisition and development

3,464,124

3,723,408

3,909,184

3,931,821

3,892,527

Income producing

7,025,539

6,268,456

6,015,773

5,978,695

5,851,340

Total commercial real estate

10,489,663

9,991,864

9,924,957

9,910,516

9,743,867

Consumer






Residential mortgages

10,951,618

10,498,320

10,267,883

9,933,222

9,740,713

Other consumer

212,398

205,296

213,371

209,872

215,617

Total consumer

11,164,016

10,703,616

10,481,254

10,143,094

9,956,330

Total loans and leases, net of unearned income

$   35,465,181

$   34,051,610

$   33,741,755

$   33,303,972

$   33,312,773







NONPERFORMING ASSETS






Nonperforming Loans and Leases






Commercial and industrial






Non-real estate

$        123,960

$        118,078

$        145,115

$        148,267

$        121,171

Owner occupied

18,158

18,988

16,904

15,127

13,700

Total commercial and industrial

142,118

137,066

162,019

163,394

134,871

Commercial real estate






Construction, acquisition and development

9,307

8,768

8,600

2,034

4,923

Income producing

4,379

8,021

18,542

25,112

15,002

Total commercial real estate

13,686

16,789

27,142

27,146

19,925

Consumer






Residential mortgages

75,076

81,803

75,287

82,191

61,677

Other consumer

363

294

244

223

273

Total consumer

75,439

82,097

75,531

82,414

61,950

Total nonperforming loans and leases (1)

$        231,243

$        235,952

$        264,692

$        272,954

$        216,746







Other real estate owned and repossessed assets

15,599

8,452

5,754

5,354

4,793

Total nonperforming assets

$        246,842

$        244,404

$        270,446

$        278,308

$        221,539







Government guaranteed portion of nonaccrual loans and
leases covered by the SBA, FHA, VA or USDA

$          94,046

$          84,339

$          89,906

$          81,632

$          71,418







Loans and leases 90+ days past due, still accruing

$            5,208

$            8,832

$          13,126

$          11,757

$            6,150


(1)     At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million.

 

Table 8

Allowance for Credit Losses

(Unaudited)

 


Quarter Ended

(Dollars in thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024

ALLOWANCE FOR CREDIT LOSSES:






Balance, beginning of period

$      457,791

$      460,793

$      460,859

$      470,022

$      472,575

Charge-offs:






Commercial and industrial

(18,147)

(21,284)

(15,116)

(21,620)

(23,340)

Commercial real estate

(3,740)

(1,382)

(167)

(222)

(649)

Consumer

(3,438)

(3,062)

(2,679)

(2,681)

(2,294)

Total loans charged-off

(25,325)

(25,728)

(17,962)

(24,523)

(26,283)

Recoveries:






Commercial and industrial

3,191

1,822

2,613

1,647

2,943

Commercial real estate

110

83

549

65

101

Consumer

809

821

734

648

686

Total recoveries

4,110

2,726

3,896

2,360

3,730

Net charge-offs

(21,215)

(23,002)

(14,066)

(22,163)

(22,553)

Initial allowance on loans purchased with credit deterioration

8,075

—

—

—

—

Provision:






Loans and leases acquired during the quarter

4,152

—

—

—

—

     Provision for credit losses related to loans and leases

25,848

20,000

14,000

13,000

20,000

Total provision for loans and leases

30,000

20,000

14,000

13,000

20,000

Balance, end of period

$      474,651

$      457,791

$      460,793

$      460,859

$      470,022







Average loans and leases, net of unearned income, for period

$ 34,762,808

$ 33,944,416

$ 33,461,931

$ 33,279,819

$ 32,945,526

Ratio: Net charge-offs to average loans and leases (2)

0.24 %

0.27 %

0.17 %

0.26 %

0.28 %







RESERVE FOR UNFUNDED COMMITMENTS (1)






Balance, beginning of period

$          8,551

$          8,551

$          7,551

$          8,551

$          6,551

Provision (reversal) for credit losses for unfunded commitments

1,000

—

1,000

(1,000)

2,000

Balance, end of period

$          9,551

$          8,551

$          8,551

$          7,551

$          8,551


(1)     The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets.

(2)     Annualized. 

 

Table 9

Loan and Lease Portfolio by Grades

(Unaudited)

 


June 30, 2025

(In thousands)

Pass

Special
Mention

Substandard

Doubtful

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:








Commercial and industrial








Non-real estate

$   8,516,718

$   157,279

$     344,254

$      8,369

$      19,112

$         3,362

$  9,049,094

Owner occupied

4,719,527

7,886

28,021

—

6,974

—

4,762,408

Total commercial and industrial

13,236,245

165,165

372,275

8,369

26,086

3,362

13,811,502

Commercial real estate








Construction, acquisition and development

3,452,247

1,634

4,400

—

5,843

—

3,464,124

Income producing

6,776,961

53,088

188,979

—

2,218

4,293

7,025,539

Total commercial real estate

10,229,208

54,722

193,379

—

8,061

4,293

10,489,663

Consumer








Residential mortgages

10,847,867

9,008

89,257

—

4,075

1,411

10,951,618

Other consumer

211,722

—

676

—

—

—

212,398

Total consumer

11,059,589

9,008

89,933

—

4,075

1,411

11,164,016

Total loans and leases, net of unearned income

$ 34,525,042

$   228,895

$     655,587

$      8,369

$      38,222

$         9,066

$  35,465,181



March 31, 2025

(In thousands)

Pass

Special
Mention

Substandard

Doubtful

Impaired

Purchased
Credit
Deteriorated
(Loss)

Total

LOAN AND LEASE PORTFOLIO:








Commercial and industrial








Non-real estate

$ 8,234,513

$   108,903

$     317,012

$      8,556

$      16,227

$         3,442

$  8,688,653

Owner occupied

4,617,617

—

38,174

—

10,592

1,094

4,667,477

Total commercial and industrial

12,852,130

108,903

355,186

8,556

26,819

4,536

13,356,130

Commercial real estate








Construction, acquisition and development

3,710,504

—

7,031

—

5,873

—

3,723,408

Income producing

6,078,353

39,412

144,159

—

6,532

—

6,268,456

Total commercial real estate

9,788,857

39,412

151,190

—

12,405

—

9,991,864

Consumer








Residential mortgages

10,392,396

—

99,305

—

5,208

1,411

10,498,320

Other consumer

204,701

—

595

—

—

—

205,296

Total consumer

10,597,097

—

99,900

—

5,208

1,411

10,703,616

Total loans and leases, net of unearned income

$  33,238,084

$   148,315

$     606,276

$      8,556

$      44,432

$         5,947

$  34,051,610

 

Table 10

Geographical Loan and Lease Information

(Unaudited)

 


June 30, 2025

(Dollars in thousands)

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:












Commercial and industrial












Non-real estate

$  461,841

$  150,416

$  578,930

$  463,910

$  380,995

$  566,433

$    73,659

$  335,082

$3,560,172

$2,477,656

$9,049,094

Owner occupied

327,424

247,534

306,486

412,620

288,772

591,957

99,690

157,107

1,861,471

469,347

4,762,408

Total commercial and industrial

789,265

397,950

885,416

876,530

669,767

1,158,390

173,349

492,189

5,421,643

2,947,003

13,811,502

Commercial real estate












Construction, acquisition and development

223,889

67,466

234,381

359,066

60,759

167,989

39,054

179,527

1,671,287

460,706

3,464,124

Income producing

475,388

278,193

673,011

1,021,286

229,432

415,358

220,172

327,886

2,459,308

925,505

7,025,539

Total commercial real estate

699,277

345,659

907,392

1,380,352

290,191

583,347

259,226

507,413

4,130,595

1,386,211

10,489,663

Consumer












Residential mortgages

1,324,421

451,893

720,256

526,537

494,173

1,253,916

231,680

864,729

4,816,298

267,715

10,951,618

Other consumer

27,540

18,585

5,066

9,182

10,739

84,064

1,353

16,712

33,853

5,304

212,398

Total consumer

1,351,961

470,478

725,322

535,719

504,912

1,337,980

233,033

881,441

4,850,151

273,019

11,164,016

Total loans and leases, net of unearned income

$2,840,503

$  1,214,087

$  2,518,130

$  2,792,601

$  1,464,870

$  3,079,717

$  665,608

$  1,881,043

$14,402,389

$4,606,233

$35,465,181













Loan growth (decline), excluding loans acquired during the quarter ($)

$    85,796

$    24,724

$  (21,244)

$    11,285

$    20,547

$    59,189

$    19,330

$    45,295

$  516,169

$  310,003

$1,071,094

Loan growth (decline), excluding loans acquired during the quarter (%) (annualized)

12.50 %

8.35 %

(3.38) %

1.75 %

5.72 %

7.86 %

12.05 %

9.90 %

14.92 %

29.71 %

12.62 %



March 31, 2025

(Dollars in thousands)

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:












Commercial and industrial












Non-real estate

$      424,598

$      157,460

$      576,477

$      464,611

$      375,154

$      534,964

$        65,370

$      338,916

$   3,467,605

$   2,283,498

$   8,688,653

Owner occupied

338,752

244,335

306,890

429,592

294,980

590,076

99,197

159,241

1,766,119

438,295

4,667,477

Total commercial and industrial

763,350

401,795

883,367

894,203

670,134

1,125,040

164,567

498,157

5,233,724

2,721,793

13,356,130

Commercial real estate












Construction, acquisition and development

220,664

79,437

371,396

443,876

48,561

166,644

36,117

184,595

1,714,761

457,357

3,723,408

Income producing

434,990

258,337

544,896

783,768

226,924

423,200

215,550

315,125

2,323,475

742,191

6,268,456

Total commercial real estate

655,654

337,774

916,292

1,227,644

275,485

589,844

251,667

499,720

4,038,236

1,199,548

9,991,864

Consumer












Residential mortgages

1,309,478

430,005

719,379

455,027

484,751

1,221,895

226,051

821,297

4,571,649

258,788

10,498,320

Other consumer

25,579

17,844

4,776

7,982

10,486

83,368

1,246

15,557

33,872

4,586

205,296

Total consumer

1,335,057

447,849

724,155

463,009

495,237

1,305,263

227,297

836,854

4,605,521

263,374

10,703,616

Total loans and leases, net of unearned income

$   2,754,061

$   1,187,418

$   2,523,814

$   2,584,856

$   1,440,856

$   3,020,147

$      643,531

$   1,834,731

$ 13,877,481

$   4,184,715

$ 34,051,610

 

Table 11

Noninterest Revenue and Expense

(Unaudited)

 


Quarter Ended


Year-to-date

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

NONINTEREST REVENUE:









Trust and asset management income

$       13,227

$       11,823

$       12,485

$       12,055

$       12,645


$       25,050

$       23,967

Investment advisory fees

8,970

8,454

8,502

8,641

8,180


17,424

16,517

Brokerage and annuity fees

3,101

3,002

2,986

3,414

3,181


6,103

6,355

Deposit service charges

18,061

17,736

18,694

18,814

17,652


35,797

35,989

Credit card, debit card and merchant fees

12,972

11,989

12,664

12,649

12,770


24,961

24,932

Mortgage banking excl. MSR and MSR hedge market value adjustment

10,734

9,743

6,293

8,171

9,875


20,477

13,631

MSR and MSR hedge market value adjustment

(2,023)

(3,105)

(2,739)

(7,038)

(3,702)


(5,128)

(1,015)

Security losses, net

—

(9)

(3)

(2,947)

(4)


(9)

(12)

Bank-owned life insurance

6,812

5,202

5,046

4,353

4,370


12,014

8,316

Other miscellaneous income

26,327

20,552

22,237

27,789

35,691


46,879

55,764

Total noninterest revenue

$       98,181

$       85,387

$       86,165

$       85,901

$     100,658


$     183,568

$     184,444










NONINTEREST EXPENSE:









Salaries and employee benefits

$     157,340

$     152,972

$     152,381

$     152,237

$     148,038


$     310,312

$     304,689

Occupancy and equipment

30,039

28,477

27,275

28,894

29,367


58,516

58,007

Data processing and software

30,701

27,132

33,226

29,164

29,467


57,833

59,494

Deposit insurance assessments

8,571

8,643

8,284

7,481

15,741


17,214

24,156

Amortization of intangibles

4,046

3,668

3,904

3,933

3,999


7,714

8,065

Merger expense

2,179

315

—

—

—


2,494

—

Advertising and public relations

7,304

4,157

5,870

5,481

6,537


11,461

10,760

Foreclosed property expense

757

864

621

486

515


1,621

783

Telecommunications

1,330

1,512

1,359

1,513

1,441


2,842

2,985

Travel and entertainment

2,829

2,436

2,618

2,612

2,549


5,266

4,785

Professional, consulting and outsourcing

4,043

4,733

4,540

4,115

3,534


8,775

7,469

Legal

8,111

3,559

4,176

3,664

758


11,669

4,440

Postage and shipping

1,797

1,773

1,624

1,677

1,622


3,571

3,827

Other miscellaneous expense

13,816

19,108

20,308

18,181

13,129


32,924

30,444

Total noninterest expense

$     272,863

$     259,349

$     266,186

$     259,438

$     256,697


$     532,212

$     519,904

 

Table 12

Average Balance and Yields

(Unaudited)

 


Quarter Ended


June 30, 2025


March 31, 2025


June 30, 2024

(Dollars in thousands)

Average

Balance

Income/Expense

Yield/

Rate


Average

Balance

Income/Expense

Yield/

Rate


Average

Balance

Income/Expense

Yield/

Rate

ASSETS












Interest-earning assets:












Loans and leases, excluding accretion

$ 34,762,808

$   547,514

6.32 %


$  33,944,416

$   527,951

6.31 %


$ 32,945,526

$   537,179

6.56 %

Accretion income on acquired loans


2,645

0.03



2,562

0.03



2,981

0.04

Loans held for sale

146,191

1,736

4.76


115,261

1,449

5.10


114,359

1,652

5.81

Investment securities












Taxable

8,736,627

72,355

3.32


7,222,326

53,232

2.99


7,954,865

62,852

3.18

Tax-exempt

77,836

803

4.14


79,846

796

4.04


78,687

807

4.12

Total investment securities

8,814,463

73,158

3.33


7,302,172

54,028

3.00


8,033,552

63,659

3.19

Other investments

1,017,815

11,183

4.41


1,275,153

13,897

4.42


2,758,385

37,383

5.45

Total interest-earning assets

44,741,277

636,236

5.70 %


42,637,002

599,887

5.71 %


43,851,822

642,854

5.90 %

Other assets

5,082,940




4,963,761




4,816,078



Allowance for credit losses

467,521




465,332




475,181



Total assets

$ 49,356,696




$  47,135,431




$ 48,192,719















LIABILITIES AND SHAREHOLDERS' EQUITY










Interest-bearing liabilities:












Interest bearing demand and money market

$ 18,799,895

$   125,874

2.69 %


$  19,428,376

$   128,831

2.69 %


$ 18,770,093

$   146,279

3.13 %

Savings deposits

2,646,190

3,747

0.57


2,607,366

3,644

0.57


2,652,019

3,743

0.57

Time deposits

9,956,973

98,721

3.98


9,978,136

100,900

4.10


7,920,946

89,173

4.53

Total interest-bearing deposits

31,403,058

228,342

2.92


32,013,878

233,375

2.96


29,343,058

239,195

3.28

Fed funds purchased, securities sold under agreement to repurchase and other

265,092

2,939

4.45


103,067

1,132

4.45


65,821

732

4.47

Short-term FHLB borrowings

1,173,022

12,594

4.31


28,278

309

4.43


—

—

—

  Short-term BTFP borrowings

—

—

—


—

—

—


3,500,000

41,536

4.77

Subordinated and long-term borrowings

1,338,059

13,584

4.07


129,030

1,289

4.05


404,231

4,429

4.41

Total interest-bearing liabilities

34,179,231

257,459

3.02 %


32,274,253

236,105

2.97 %


33,313,110

285,892

3.45 %

Noninterest-bearing liabilities:












Demand deposits

8,494,542




8,339,414




8,757,029



Other liabilities

855,842




870,172




915,326



Total liabilities

43,529,615




41,483,839




42,985,465



Shareholders' equity

5,827,081




5,651,592




5,207,254



Total liabilities and shareholders' equity

$ 49,356,696




$  47,135,431




$ 48,192,719



Net interest income/net interest spread


378,777

2.68 %



363,782

2.74 %



356,962

2.45 %

Net yield on earning assets/net interest margin



3.40 %




3.46 %




3.27 %

Taxable equivalent adjustment:












Loans and investment securities


(637)




(630)




(644)


Net interest revenue


$   378,140




$   363,152




$   356,318


 

Table 12

Average Balance and Yields Continued

 


Year-To-Date


June 30, 2025


June 30, 2024

(Dollars in thousands)

Average

Balance

Income/Expense

Yield/

Rate


Average

Balance

Income/Expense

Yield/

Rate

ASSETS








Interest-earning assets:








Loans and leases, excluding accretion

$   34,355,873

$   1,075,465

6.31 %


$   32,841,550

$   1,063,056

6.51 %

Accretion income on acquired loans


5,207

0.03



6,496

0.04

Loans held for sale

130,812

3,185

4.91


93,358

2,837

6.11

Investment securities








Taxable

7,983,659

125,587

3.17


8,071,103

126,257

3.15

Tax-exempt

78,836

1,599

4.09


80,527

1,677

4.19

Total investment securities

8,062,495

127,186

3.18


8,151,630

127,934

3.16

Other investments

1,145,773

25,080

4.41


2,952,412

80,280

5.47

Total interest-earning assets

43,694,953

1,236,123

5.70 %


44,038,950

1,280,603

5.85 %

Other assets

5,023,679




4,853,195



Allowance for credit losses

466,433




474,515



Total assets

$   48,252,199




$   48,417,630











LIABILITIES AND SHAREHOLDERS' EQUITY







Interest-bearing liabilities:








Interest bearing demand and money market

$   19,112,399

254,705

2.69 %


$   19,036,969

$      295,682

3.12 %

Savings deposits

2,626,885

7,391

0.57


2,674,236

7,544

0.57

Time deposits

9,967,496

199,621

4.04


7,634,651

169,842

4.47

Total interest-bearing deposits

31,706,780

461,717

2.94


29,345,856

473,068

3.24

Fed funds purchased, securities sold under agreement to repurchase and other

184,527

4,071

4.45


137,585

3,260

4.76

Short-term FHLB borrowings

603,812

12,903

4.31


—

—

—

Short-term BTFP borrowings

—

—

—


3,500,000

83,640

4.81

Subordinated and long-term borrowings

736,885

14,873

4.07


419,405

9,129

4.38

Total interest-bearing liabilities

33,232,004

493,564

3.00 %


33,402,846

569,097

3.43 %

Noninterest-bearing liabilities:








Demand deposits

8,417,406




8,914,824



Other liabilities

862,968




899,309



Total liabilities

42,512,378




43,216,979



Shareholders' equity

5,739,821




5,200,651



Total liabilities and shareholders' equity

$   48,252,199




$   48,417,630



Net interest income/net interest spread


742,559

2.70 %



711,506

2.42 %

Net yield on earning assets/net interest margin



3.43 %




3.25 %

Taxable equivalent adjustment:








Loans and investment securities


(1,267)




(1,280)


Net interest revenue


$      741,292




$      710,226


 

Table 13

Selected Additional Data

(Unaudited)

 


Quarter Ended

(Dollars in thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024

MORTGAGE SERVICING RIGHTS ("MSR"):






Fair value, beginning of period

$      110,969

$    114,594

$     104,891

$     113,595

$    111,685

Originations of servicing assets

3,732

2,796

4,227

3,361

3,687

Changes in fair value:






Due to changes in valuation inputs or assumptions(1)

(2,468)

(4,447)

9,193

(8,232)

927

Other changes in fair value(2)

(609)

(1,974)

(3,717)

(3,833)

(2,704)

Fair value, end of period

$      111,624

$    110,969

$     114,594

$     104,891

$    113,595







MORTGAGE BANKING REVENUE:






Origination

$          4,362

$        3,402

$            332

$         2,145

$        3,976

Servicing

6,372

6,341

5,961

6,026

5,899

Total mortgage banking revenue excluding MSR

10,734

9,743

6,293

8,171

9,875

Due to changes in valuation inputs or assumptions(1)

(2,468)

(4,447)

9,193

(8,232)

927

Other changes in fair value(2)

(609)

(1,974)

(3,717)

(3,833)

(2,704)

Market value adjustment on MSR Hedge

1,054

3,316

(8,215)

5,027

(1,925)

Total mortgage banking revenue

$          8,711

$        6,638

$         3,554

$         1,133

$        6,173







Mortgage loans serviced

$   8,216,970

$ 8,111,379

$  8,043,306

$  7,927,028

$ 7,824,895

MSR/mortgage loans serviced

1.36 %

1.37 %

1.42 %

1.32 %

1.45 %


 

(1)     Primarily reflects changes in prepayment speeds and discount rate assumptions which are updated based on market interest rates.

(2)     Primarily reflects changes due to realized cash flows.



Quarter Ended

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024

AVAILABLE FOR SALE SECURITIES, at fair value






Obligations of U.S. government agencies

$         266,905

$         274,285

$         281,231

$         300,730

$         305,200

Mortgage-backed securities issued or guaranteed by U.S. agencies ("MBS"):






Residential pass-through:






Guaranteed by GNMA

64,464

66,149

66,581

71,001

69,788

Issued by FNMA and FHLMC

4,166,316

4,024,678

3,965,556

4,163,760

4,125,416

Other residential mortgage-back securities

2,389,062

1,564,928

934,721

1,135,004

1,233,868

Commercial mortgage-backed securities

1,455,638

1,486,525

1,549,641

1,664,288

1,673,823

Total MBS

8,075,480

7,142,280

6,516,499

7,034,053

7,102,895

Obligations of states and political subdivisions

131,335

129,822

132,069

137,996

133,155

Other domestic debt securities

45,999

48,422

47,402

51,599

64,288

Foreign debt securities

317,681

317,350

316,787

317,307

315,884

Total available for sale securities

$      8,837,400

$      7,912,159

$      7,293,988

$      7,841,685

$      7,921,422

 

Table 14
Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions
(Unaudited)

Management evaluates the Company's capital position and adjusted performance by utilizing certain financial measures not calculated in accordance with GAAP, including adjusted net income, adjusted net income available to common shareholders, pre-tax pre-provision net revenue, adjusted pre-tax pre-provision net revenue, total adjusted noninterest revenue, total adjusted noninterest expense, tangible common shareholders' equity to tangible assets, total shareholders' equity (excluding AOCI), common shareholders' equity (excluding AOCI), tangible common shareholders' equity to tangible assets (excluding AOCI), return on average tangible common equity, adjusted return on average tangible common equity, adjusted return on average assets, adjusted return on average common shareholders' equity, adjusted return on average common shareholders' equity, pre-tax pre-provision net revenue to total average assets, adjusted pre-tax pre-provision net revenue to total average assets, adjusted earnings per common share, tangible book value per common share, tangible book value per common share, excluding AOCI, efficiency ratio (tax equivalent), adjusted efficiency ratio (tax equivalent), dividend payout ratio, and adjusted dividend payout ratio. The Company has included these non-GAAP financial measures in this release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures: (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and adjusted performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names.


Quarter Ended


Year-to-date

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

Adjusted Net Income Available to Common Shareholders









Net income

$      134,645

$      133,222

$      132,715

$      136,439

$      137,472


$      267,867

$      254,450

Plus: Merger expense

2,179

315

—

—

—


2,494

—

Incremental merger related expense

616

55

—

—

—


671

—

Initial provision for acquired loans

4,182

—

—

—

—


4,182

—

Gain on extinguishment of debt

—

—

—

—

(1,098)


—

(1,674)

Restructuring and other nonroutine expenses

(300)

351

(505)

(920)

6,675


51

6,926

Less: Security losses, net

—

(9)

(3)

(2,947)

(4)


(9)

(12)

Gain on sale of businesses

—

—

—

—

14,980


—

14,980

Tax effect of the adjustments

1,483

172

(118)

476

(2,209)


1,655

(2,283)

Adjusted net income

139,839

133,780

132,331

137,990

130,282


273,619

247,017

Less: Preferred dividends

4,744

2,372

2,372

2,372

2,372


7,116

4,744

Plus: Special preferred dividends

2,372

—

—

—

—


2,372

—

Adjusted net income available to common shareholders

$      137,467

$      131,408

$      129,959

$      135,618

$      127,910


$      268,875

$      242,273

 


Quarter Ended


Year-to-date

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

Pre-Tax Pre-Provision Net Revenue









Net income

$      134,645

$      133,222

$      132,715

$      136,439

$      137,472


$      267,867

$      254,450

Plus:   Provision for credit losses

31,000

20,000

15,000

12,000

22,000


51,000

44,000

Income tax expense

37,813

35,968

36,795

39,482

40,807


73,781

76,316

Pre-tax pre-provision net revenue

$      203,458

$      189,190

$      184,510

$      187,921

$      200,279


$      392,648

$      374,766

 


Quarter Ended


Year-to-date

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

Adjusted Pre-Tax Pre-Provision Net Revenue









Net income

$      134,645

$      133,222

$      132,715

$      136,439

$      137,472


$      267,867

$      254,450

Plus:   Provision for credit losses

31,000

20,000

15,000

12,000

22,000


51,000

44,000

Merger expense

2,179

315

—

—

—


2,494

—

Incremental merger related expense

616

55

—

—

—


671

—

Gain on extinguishment of debt

—

—

—

—

(1,098)


—

(1,674)

Restructuring and other nonroutine expenses

(300)

351

(505)

(920)

6,675


51

6,926

Pension settlement expense

—

—

—

—

—


—

—

Income tax expense

37,813

35,968

36,795

39,482

40,807


73,781

76,316

Less:   Security losses, net

—

(9)

(3)

(2,947)

(4)


(9)

(12)

Gain on sale of businesses

—

—

—

—

14,980


—

14,980

Adjusted pre-tax pre-provision net revenue

$      205,953

$      189,920

$      184,008

$      189,948

$      190,880


$      395,873

$      365,050

 


Quarter Ended


Year-to-date

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

Total Adjusted Revenue









Net interest revenue

$      378,140

$      363,152

$      364,531

$      361,458

$      356,318


$      741,292

$      710,226

Total Adjusted Noninterest Revenue









Total noninterest revenue

$        98,181

$        85,387

$        86,165

$        85,901

$      100,658


$      183,568

$      184,444

Less:   Security losses, net

—

(9)

(3)

(2,947)

(4)


(9)

(12)

Gain on sale of businesses

—

—

—

—

14,980


—

14,980

Total adjusted noninterest revenue

$        98,181

$        85,396

$        86,168

$        88,848

$        85,682


$      183,577

$      169,476

Total adjusted revenue

$      476,321

$      448,548

$      450,699

$      450,306

$      442,000


$      924,869

$      879,702

 


Quarter Ended


Year-to-date

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

Total Adjusted Noninterest Expense









Total noninterest expense

$      272,863

$      259,349

$      266,186

$      259,438

$      256,697


$      532,212

$      519,904

Less:   Merger expense

2,179

315

—

—

—


2,494

—

Incremental merger related expense

616

55

—

—

—


671

—

Gain on extinguishment of debt

—

—

—

—

(1,098)


—

(1,674)

Restructuring and other nonroutine expenses

(300)

351

(505)

(920)

6,675


51

6,926

Total adjusted noninterest expense

$      270,368

$      258,628

$      266,691

$      260,358

$      251,120


$      528,996

$      514,652

 


Quarter Ended


Year-to-date

(In thousands)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

Total Tangible Assets, Excluding AOCI









Total assets

$  50,378,840

$  47,743,294

$  47,019,190

$  49,204,933

$  47,984,078


$  50,378,840

$  47,984,078

Less:  Goodwill

1,387,990

1,366,923

1,366,923

1,366,923

1,366,923


1,387,990

1,366,923

Other intangible assets, net

87,814

79,522

83,190

87,094

91,027


87,814

91,027

Total tangible assets

48,903,036

46,296,849

45,569,077

47,750,916

46,526,128


48,903,036

46,526,128

Less: AOCI

(576,157)

(621,203)

(694,495)

(590,342)

(782,462)


(576,157)

(782,462)

Total tangible assets, excluding AOCI

$  49,479,193

$  46,918,052

$  46,263,572

$  48,341,258

$  47,308,590


$  49,479,193

$  47,308,590

 


Quarter Ended


Year-to-date

(Dollars in thousands, except per share data)

Jun 2025

Mar 2025

Dec 2024

Sep 2024

Jun 2024


Jun 2025

Jun 2024

PERIOD END BALANCES:









Total Shareholders' Equity, Excluding AOCI









Total shareholders' equity

$5,916,283

$5,718,541

$5,569,683

$5,572,863

$5,287,758


$5,916,283

$5,287,758

Less: AOCI

(576,157)

(621,203)

(694,495)

(590,342)

(782,462)


(576,157)

(782,462)

Total shareholders' equity, excluding AOCI

$6,492,440

$6,339,744

$6,264,178

$6,163,205

$6,070,220


$6,492,440

$6,070,220










Common Shareholders' Equity, Excluding AOCI









Total shareholders' equity

$5,916,283

$5,718,541

$5,569,683

$5,572,863

$5,287,758


$5,916,283

$5,287,758

Less: preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Common shareholders' equity

5,749,290

5,551,548

5,402,690

5,405,870

5,120,765


5,749,290

5,120,765

Less: AOCI

(576,157)

(621,203)

(694,495)

(590,342)

(782,462)


(576,157)

(782,462)

Common shareholders' equity, excluding AOCI

$6,325,447

$6,172,751

$6,097,185

$5,996,212

$5,903,227


$6,325,447

$5,903,227










Total Tangible Common Shareholders' Equity, Excluding AOCI









Total shareholders' equity

$5,916,283

$5,718,541

$5,569,683

$5,572,863

$5,287,758


$5,916,283

$5,287,758

Less:  Goodwill

1,387,990

1,366,923

1,366,923

1,366,923

1,366,923


1,387,990

1,366,923

Other intangible assets, net

87,814

79,522

83,190

87,094

91,027


87,814

91,027

Preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Total tangible common shareholders' equity

4,273,486

4,105,103

3,952,577

3,951,853

3,662,815


4,273,486

3,662,815

Less: AOCI

(576,157)

(621,203)

(694,495)

(590,342)

(782,462)


(576,157)

(782,462)

Total tangible common shareholders' equity, excluding AOCI

$4,849,643

$4,726,306

$4,647,072

$4,542,195

$4,445,277


$4,849,643

$4,445,277










AVERAGE BALANCES:









Total Tangible Common Shareholders' Equity









Total shareholders' equity

$5,827,081

$5,651,592

$5,589,361

$5,420,826

$5,207,254


$5,739,821

$5,200,651

Less:   Goodwill

1,379,076

1,366,923

1,366,923

1,366,923

1,367,358


1,373,033

1,367,572

Other intangible assets, net

81,845

81,527

85,323

89,262

93,743


81,687

96,047

Preferred stock

166,993

166,993

166,993

166,993

166,993


166,993

166,993

Total tangible common shareholders' equity

$4,199,167

$4,036,149

$3,970,122

$3,797,648

$3,579,160


$4,118,108

$3,570,039










Total average assets

$49,356,696

$47,135,431

$47,263,538

$47,803,977

$48,192,719


$48,252,199

$48,417,630

Total shares of common stock outstanding

186,307,016

184,046,420

183,527,575

182,315,142

182,430,427


186,307,016

182,430,427

Average shares outstanding-diluted

187,642,873

186,121,979

186,038,243

185,496,110

185,260,963


186,888,073

185,417,547










Tangible common shareholders' equity to tangible assets (1)

8.74 %

8.87 %

8.67 %

8.28 %

7.87 %


8.74 %

7.87 %

Tangible common shareholders' equity, excluding AOCI, to tangible assets,
excluding AOCI (2)

9.80

10.07

10.04

9.40

9.40


9.80

9.40

Return on average tangible common equity (3)

12.41

13.15

13.06

14.04

15.18


12.77

14.07

Adjusted return on average tangible common equity (4)

13.13

13.20

13.02

14.21

14.37


13.17

13.65

Adjusted return on average assets (5)

1.14

1.15

1.11

1.15

1.09


1.14

1.03

Adjusted return on average common shareholders' equity (6)

9.74

9.72

9.53

10.27

10.21


9.73

9.68

Pre-tax pre-provision net revenue to total average assets (7)

1.65

1.63

1.55

1.56

1.67


1.64

1.56

Adjusted pre-tax pre-provision net revenue to total average assets (8)

1.67

1.63

1.55

1.58

1.59


1.65

1.52

Tangible book value per common share (9)

$     22.94

$     22.30

$     21.54

$     21.68

$     20.08


$     22.94

$     20.08

Tangible book value per common share, excluding AOCI (10)

26.03

25.68

25.32

24.91

24.37


26.03

24.37

Adjusted earnings per common share (11)

$      0.73

$      0.71

$      0.70

$      0.73

$      0.69


$       1.44

$       1.31

Adjusted dividend payout ratio (12)

37.67 %

38.73 %

35.71 %

34.25 %

36.23 %


38.19 %

38.17 %

 

Definitions of Non-GAAP Measures:


(1)

Tangible common shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less preferred stock, goodwill and other intangible assets, net, divided by the difference of total assets less goodwill and other intangible assets, net.

(2)

Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI, is defined by the Company as total shareholders' equity less preferred stock, goodwill, other intangible assets, net and accumulated other comprehensive loss, divided by the difference of total assets less goodwill, accumulated other comprehensive loss, and other intangible assets, net.

(3)

Return on average tangible common equity is defined by the Company as annualized net income available to common shareholders divided by average tangible common shareholders equity.

(4)

Adjusted return on average tangible common equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average tangible common shareholders' equity.

(5)

Adjusted return on average assets is defined by the Company as annualized net adjusted income divided by total average assets.

(6)

Adjusted return on average common shareholders' equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average common shareholders' equity.

(7)

Pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue divided by total average assets.

(8)

Adjusted pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized adjusted pre-tax pre-provision net revenue divided by total average assets adjusted for items included in the definition and calculation of adjusted income.

(9)

Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding.

(10)

Tangible book value per common share, excluding AOCI is defined by the Company as tangible common shareholders' equity less accumulated other comprehensive loss divided by total shares of common stock outstanding.

(11)

Adjusted earnings per common share is defined by the Company as net adjusted income available to common shareholders divided by average common shares outstanding-diluted.

(12)

Adjusted dividend payout ratio is defined by the Company as common share dividends divided by net adjusted income available to common shareholders.

Efficiency Ratio-Fully Taxable Equivalent and Adjusted Efficiency Ratio-Fully Taxable Equivalent Definitions

The efficiency ratio and the adjusted efficiency ratio are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment. The adjusted efficiency ratio excludes income and expense items otherwise disclosed as non-routine from total noninterest expense.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cadence-bank-announces-second-quarter-2025-financial-results-declares-quarterly-common-and-preferred-dividends-302512340.html

SOURCE Cadence Bank

FAQ

What were Cadence Bank's (CADE) earnings per share in Q2 2025?

Cadence Bank reported $0.69 per diluted share in Q2 2025, with adjusted earnings of $0.73 per diluted share.

How much did Cadence Bank's loan portfolio grow in Q2 2025?

The bank achieved net organic loan growth of $1.1 billion, representing a 12.6% annualized growth rate.

What acquisitions did Cadence Bank (CADE) complete in 2025?

Cadence completed two acquisitions: First Chatham Bank (May 1, adding $604M in assets) and Industry Bancshares (July 1, adding $4.1B in assets).

What is Cadence Bank's (CADE) dividend payment for Q2 2025?

The bank declared a quarterly dividend of $0.275 per common share, payable on October 1, 2025, and $0.34375 per Series A Preferred Share.

What was Cadence Bank's net interest margin in Q2 2025?

The net interest margin was 3.40%, down 6 basis points from 3.46% in Q1 2025.

How strong is Cadence Bank's capital position as of Q2 2025?

The bank maintained strong capital ratios with Common Equity Tier 1 Capital of 12.2% and Total risk-based capital of 13.8%.
Stock CADE logo
Cadence Bk

NYSE:CADE

CADE Rankings

#1728 Ranked by Market Cap
#1056 Ranked by Dividends

CADE Latest News

Jul 1, 2025
Cadence Bank Announces Second Quarter 2025 Earnings and Webcast Schedule
Jul 1, 2025
Cadence Bank Completes its Acquisition of Industry Bancshares, Inc.
Jun 9, 2025
Encore Enterprises Doubles-Down on Dallas: Acquires Class B Commercial Medical Office Building, Reopens Corporate HQ as Owner-Occupied Tenant
May 1, 2025
Cadence Bank Completes Merger with FCB Financial Corp.
Apr 25, 2025
Cadence Bank to Acquire Industry Bancshares, Inc.

CADE Stock Data

6.24B
184.45M
0.02%
86.23%
3.03%
Banks - Regional
National Commercial Banks
Link
United States
HOUSTON

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