Cadence Bancorporation Reports Third Quarter 2021 Financial Results

HOUSTON--(BUSINESS WIRE)--Cadence Bancorporation (NYSE: CADE) (“Cadence”) today announced net income for the quarter ended September 30, 2021, of $84.0 million or $0.67 per share, compared to net income of $101.3 million or $0.80 per share for the quarter ended June 30, 2021, and to net income of $49.3 million or $0.39 per share for the quarter ended September 30, 2020. Adjusted net income⁽¹⁾, excluding non-routine income and expenses⁽²⁾, was $83.4 million or $0.67 per share for the quarter ended September 30, 2021, compared to $106.1 million or $0.84 per share for the quarter ended June 30, 2021, and compared to $51.4 million or $0.40 per share for the quarter ended September 30, 2020.

“As we look forward to the closing of our merger with BancorpSouth scheduled for the end of this week, I would like to take a moment to express my gratitude to every one of our bankers who have helped build our great institution over the past 11 years,” commented Chairman and Chief Executive Officer Paul B. Murphy, Jr. “We started with an all-star board and the goal of deploying $1 billion of opportunistic capital to strengthen the banking system in the years following the Great Financial Crisis. We have since grown to a premier $20 billion commercial bank serving Texas and the Southeast. I would like to thank our customers and the communities we serve for their trust and support. This merger takes us to the next chapter in the Cadence Bank story, and we pledge to continue to work hard for you and earn your loyalty.

“Our financial results for the third quarter provide an advantageous foundation for the new combined Cadence, highlighted by strong capital ratios, Common Equity Tier 1 ratio of 14.5%, and Total Capital of 16.6%, and continued improvement in credit, as demonstrated by a 29% linked quarter decline in criticized loans, net recoveries of $0.4 million, a ($28.4) million provision release, and an allowance for credit losses at 1.91% of total loans or 218.6% to total nonperforming loans. The adjusted pre-tax pre-provision net revenue remained solid at $79.4 million or 1.66% of average assets, as did our profitability ratios with adjusted annualized returns on average assets and adjusted tangible common equity of 1.75% and 16.56%, respectively.

“I am proud of Cadence’s historical achievements. Our team is excited about combining our franchise with BancorpSouth to create a top-tier regional bank with approximately $48 billion in pro forma assets. This strategic combination expands our reach and offerings, which will have a positive impact for our customers and communities while driving long-term shareholder value. As I noted previously, the scale of our combined bank, our collective talent, our complementary cultures, and our strategic footprint in some of the fastest-growing markets in the country have us extremely excited about the future. We look forward to delivering significant value to our shareholders, driven by meaningful synergies and our shared banking philosophy of putting the client first.”

Third Quarter 2021 Highlights:

Third quarter 2021 highlights are as follows:

• Adjusted pre-tax pre-provision net revenue⁽¹⁾ (“PPNR”) remained solid at $79.4 million or 1.66% of average assets.
• The allowance for credit losses (“ACL”) reflected a ($28.4) million provision release in the third quarter of 2021. The ACL remained meaningful at 1.91% of total loans. Our ratio of ACL to total nonperforming loans was 218.6%.
• Net charge-offs (recoveries) were ($0.4) million or (0.01%) annualized of average loans.
• We continued to deleverage the balance sheet, paying off $100 million in FHLB advances in the quarter in addition to the $90 million of debt paid off in the first half of this year.
• Our capital ratios remained robust, with the Common Equity Tier 1 ratio at 14.5% and total risk weighted capital at 16.6%.
• Our adjusted efficiency ratio⁽¹⁾ was 56.5%.
• Annualized returns on average assets and tangible common equity were 1.76% and 16.66%, respectively.
• Adjusted annualized returns on average assets⁽¹⁾ and adjusted tangible common equity⁽¹⁾ were 1.75% and 16.56%, respectively.

Balance Sheet:

Total assets were $19.8 billion as of September 30, 2021, an increase of $1.1 billion or 5.7% from June 30, 2021, and an increase of $1.3 billion or 7.3% from September 30, 2020. The linked quarter increase was largely driven by an increase in deposits and a corresponding increase in cash and cash equivalents, partially offset by small decreases in investment securities and total loans.

Cash and Cash Equivalents at September 30, 2021, totaled $3.4 billion as compared to $2.1 billion at June 30, 2021 and $1.2 billion at September 30, 2020. The $1.3 billion increase in the third quarter of 2021 was driven by an increase of $1.2 billion in deposits.

Loans at September 30, 2021 totaled $11.5 billion as compared to $11.6 billion at June 30, 2021, a decrease of $136.3 million or 1.2%. Loans decreased $2.0 billion or 14.6% from $13.5 billion at September 30, 2020. Non-PPP loans increased $76 million linked quarter before adjusting for $43 million of loans related to planned branch divestitures moved to held-for-sale. The increase in non-PPP loans was driven by increases in General C&I loans.

Investment Securities at September 30, 2021 totaled $4.0 billion as compared to $4.3 billion at June 30, 2021 and $3.1 billion at September 30, 2020. Securities as a percent of earning assets was 21.2%, 23.9% and 17.4% at September 30, 2021, June 30, 2021 and September 30, 2020, respectively. The decrease in securities from the linked quarter resulted primarily from sales of approximately $505 million during the quarter as part of balance sheet positioning in preparation for the upcoming merger with BancorpSouth Bank.

Total Deposits at September 30, 2021 were $17.1 billion, an increase of $1.2 billion or 7.2% from June 30, 2021 and up $1.4 billion or 8.6% from September 30, 2020. Non-interest bearing deposits increased to $6.3 billion or 36.9% of total deposits at September 30, 2021, up from $5.7 billion or 35.5% of total deposits at June 30, 2021 and $5.0 billion or 31.9% at September 30, 2020. Total cost of deposits declined to 0.12% for the third quarter of 2021, down from both the second quarter 2021 cost of 0.15% and the third quarter 2020 cost of 0.32%.

Total Borrowings at September 30, 2021 were $182.8 million, a decrease of $99.8 million from $282.7 million at June 30, 2021 and a decrease of $189.6 million from $372.4 million at September 30, 2020. The third quarter decrease was due to prepayment of $100.0 million in FHLB advances in September 2021.

Shareholders’ equity was $2.2 billion at September 30, 2021, essentially unchanged from June 30, 2021 and up $110.6 million or 5.3% from September 30, 2020. The linked quarter activity included quarterly net income of $84.0 million, a decrease of $39.1 million in other comprehensive income driven by a decline in unrealized gains on investment securities available-for-sale, purchases of $50.0 million in treasury stock, and $19.0 million in cash dividends.

Tangible common shareholders’ equity⁽¹⁾ was $2.1 billion at September 30, 2021, essentially unchanged from June 30, 2021 and up $130.3 million or 6.7% from September 30, 2020. The linked quarter increase resulted from the same factors noted above.

• Total shareholders’ equity to total assets and tangible equity to tangible assets were 11.0% and 10.5%, respectively, at September 30, 2021, compared to 11.8% and 11.2%, respectively, at June 30, 2021, and 11.3% and 10.6%, respectively, at September 30, 2020.
• Tangible book value per share⁽¹⁾ was $16.91 as of September 30, 2021, an increase of $0.19 or 1.1% from $16.72 as of June 30, 2021, and an increase of $1.51 or 9.8% from $15.40 as of September 30, 2020.
• Total shares outstanding at September 30, 2021 were 122.4 million, down from 124.8 million due to share repurchase activity during the quarter.

   

Quarter end regulatory capital ratios remained robust during the quarter as follows:

	9/30/2021	6/30/2021	9/30/2020
Common equity Tier 1 capital	14.5%	14.7%	12.0%
Tier 1 leverage capital	11.3%	11.4%	9.9%
Tier 1 risk-based capital	14.5%	14.7%	12.0%
Total risk-based capital	16.6%	17.0%	14.7%

Asset Quality:

Credit quality metrics during the third quarter of 2021 reflected notable improvements including net recoveries and declines in nonperforming and criticized loan balances.

• Net charge-offs (recoveries) for the third quarter of 2021 were ($0.4) million or (0.01%) annualized of average loans compared to $8.7 million or 0.29% annualized and $19.9 million or 0.58% annualized for the quarters ended June 30, 2021 and September 30, 2020, respectively. The current quarter net recoveries included charge-offs of $3.0 million in Energy, $1.1 million in CRE, and $0.7 million in general C&I as well as recoveries of $2.7 million in general C&I and $2.3 million in CRE.
• Provision for credit losses was a release of ($28.4) million for the third quarter of 2021 as compared to a release of ($51.9) million for the second quarter of 2021 and a provision expense of $33.0 million for the third quarter of 2020. The current quarter’s release was driven by improved economic conditions and forecasts, as well as continued improvements in overall credit including significant reductions in nonperforming and criticized loans. The third quarter 2021 provision release included $20.9 million release in the CRE segment and $7.0 million release in the C&I segment.
• The ACL was $219.6 million or 1.91% of total loans as of September 30, 2021, as compared to $247.7 million or 2.13% of total loans as of June 30, 2021 and $385.4 million or 2.86% of total loans as of September 30, 2020. Excluding PPP loans, the ACL was 1.92% of total loans at September 30, 2021, down from 2.17% at June 30, 2021.
• Total nonperforming loans (“NPL”) totaled $100.4 million, $122.5 million, and $189.1 million as of September 30, 2021, June 30, 2021, and September 30, 2020, respectively. As a percent of total loans, NPL were 0.87% at September 30, 2021, compared to 1.05% at June 30, 2021 and 1.40% at September 30, 2020.
• The ACL to NPL was 218.6% as of September 30, 2021, as compared to 202.2% as of June 30, 2021 and 203.8% as of September 30, 2020.
• Total criticized loans at September 30, 2021 were $475.9 million or 4.1% of total loans, down from $667.9 million or 5.7% at June 30, 2021 and $1.1 billion or 8.1% at September 30, 2020. The linked quarter decrease included declines of $65.2 million or 67.3% in Restaurant, $57.1 million or 35.9% in Energy, and $55.9 million or 30.7% in CRE which included $26.2 million or 28.3% in Hospitality-CRE.
• Loans 30-89 days past due were 0.20% of total loans at September 30, 2021, compared to 0.36% at June 30, 2021 and 0.15% at September 30, 2020.

Total Revenue:

Total operating revenue⁽¹⁾ for the third quarter of 2021 was $198.2 million, up $13.2 million or 7.1% from the second quarter of 2021 and up $11.6 million or 6.2% from the third quarter of 2020. Total adjusted operating revenue for the third quarter of 2021 was $182.5 million, down $2.5 million or 1.4% from the second quarter of 2021 and down $4.6 million or 2.5% from the third quarter of 2020.

Net interest income for the third quarter of 2021 was $136.1 million, a decrease of $2.4 million or 1.7% from the second quarter of 2021 and a decrease of $17.9 million or 11.6% from the third quarter of 2020.

• Compared to the linked quarter, the net interest income declines were driven by declines in hedge income and PPP loan income of $4.1 million and $2.7 million, respectively. These declines were partially offset by net securities purchases increasing average earning assets, $1.3 million in number of days and $1.8 million in decreased interest expense resulting from lower funding costs.
• Compared to the prior year, the net interest income decline included $11.6 million in lower hedge income, $5.0 million in lower PPP loan income, $0.6 million in lower accretion, and $9.3 million in lower interest income due to a mix shift from higher yielding loans to lower yielding investment securities as well as declining yields, partially offset by $8.8 million in lower funding costs due to a 55% reduction in cost of funds, supported by improved mix and debt payoffs.

Our net interest margin (“NIM”) for the third quarter of 2021 was 2.99% as compared to 3.10% for the linked quarter and 3.49% for the third quarter of 2020. The linked quarter NIM decline was due to lower PPP loan income and lower hedge income contributing 8 basis points and 6 basis points of the decline, respectively, with earning asset yield declines materially offset by increases in earning assets and lower funding costs.

• Our total funding costs continued to decline in the quarter, down $1.8 million to 0.18% compared to 0.23% in the prior quarter. Total deposit costs declined by three basis points to 0.12% for the current quarter compared to 0.15% for the linked quarter, and total interest-bearing liability costs declined by eight basis points to 0.28% from 0.36% in the linked quarter. Average interest-bearing liabilities increased by $156.9 million or 1.5% from the prior quarter to $10.8 billion, and average noninterest-bearing deposits remained stable at $5.7 billion.
• Yield on loans excluding accretion and hedge income was 3.80% in the current quarter, down three basis points from 3.83% in the linked quarter. Excluding the impact of PPP loans, this yield was 3.81% in the current quarter, down from 3.86% for the linked quarter. Average loans excluding PPP loans declined slightly by $10.7 million or 0.1% from the prior quarter to $11.5 billion.
• PPP loans averaged $131.7 million in the current quarter with a yield of 3.38%, down from $619.3 million in the linked quarter.
• Hedge income including collar gain recognition for the third quarter of 2021 was $8.1 million as compared to $10.8 million for the prior quarter.
• Accretion on acquired loans totaled $5.8 million for the third quarter of 2021 as compared to $4.5 million for the prior quarter.
• Yield on investment securities declined to 1.60% in the current quarter compared to 1.62% in linked quarter, with the lower yield reflecting the impact of securities purchased and sold in the current and prior quarters. Average investment securities increased by $365.3 million or 9.1% from the prior quarter to $4.4 billion.
• Total earning asset yields declined to 3.16% in the current quarter compared to 3.31% in the linked quarter, with average balances increasing slightly to $18.1 billion.

Noninterest income for the third quarter of 2021 was $62.1 million, an increase of $15.6 million or 33.6% from the linked quarter, and an increase of $29.5 million or 90.6% from the same period of 2020. Adjusted noninterest income⁽¹⁾ for the third quarter of 2021 was $46.4 million, a decrease of $0.1 million or 0.2% from the linked quarter, and an increase of $13.3 million or 40.0% from the third quarter of 2020. Adjusted noninterest income excludes net gains on securities and branch building sales.

• The linked quarter increase was driven by increases of $15.7 million in securities gains and $3.6 million in earnings from alternative investments. These items were partially offset by decreases of $1.3 million and $2.0 million in credit related fees and SBA income, respectively. The increase in securities gains was related to the sale of approximately $505 million in securities related to balance sheet positioning in contemplation for our upcoming merger with BancorpSouth Bank.
• The increase from the prior year was driven by increases of $15.7 million in securities gain, $9.2 million in earnings from alternative investments, $2.0 million in service charges on deposits and $1.2 million in investment advisory fees. These increases were partially mitigated by a decrease of $2.1 million in mortgage banking income.
• Adjusted noninterest income as a percent of adjusted total revenue for the third quarter of 2021 increased to 25.4% as compared to 25.1% for the linked quarter and 17.7% for the third quarter of 2020.

Noninterest expense for the third quarter of 2021 was $117.2 million, compared to $106.1 million for the linked quarter and compared to $94.9 million for the same period of 2020. Adjusted noninterest expense⁽¹⁾, which excludes the impact of non-routine items⁽²⁾, was $103.1 million, up $3.3 million or 3.3% from the linked quarter and up $10.6 million or 11.4% from the third quarter of 2020.

• Non-routine items in the third quarter of 2021 included $9.9 million in expenses related to regulatory settlements announced during the quarter and $4.2 million in merger related expenses.
• The linked quarter increase in noninterest expenses resulted primarily from the non-routine regulatory settlement expense and a $2.2 million increase in compensation expense driven by increased incentive accruals, partially offset by a $2.1 million decline in non-routine merger related expenses.
• The increase from the prior year was attributable to increased incentive accruals of $7.5 million related to improved company performance and $9.9 million expenses related to regulatory settlements.

Adjusted efficiency ratio⁽¹⁾ for the third quarter of 2021 was 56.5%, compared to the linked quarter ratio of 53.9% and the prior year’s third quarter ratio of 49.4%.

Taxes:

The effective tax rate for the third quarter of 2021 was 23.3% compared to 22.6% for the linked quarter and 16.1% for the third quarter of 2020.

Merger with BancorpSouth Bank

BancorpSouth Bank recently received all required regulatory approvals to complete the pending merger with Cadence Bancorporation. Subject to the satisfaction of all closing conditions, the merger is expected to close effective October 29, 2021.

Supplementary Financial Tables (Unaudited):

Supplementary financial tables (unaudited) are included in this release following the customary disclosure information.

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(1)	Considered a non-GAAP financial measure. See Table 10 “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
(2)	See Table 10 for a detail of non-routine income and expenses.

About Cadence Bancorporation:

Cadence Bancorporation (NYSE: CADE), headquartered in Houston, Texas, is a regional financial holding company with $19.8 billion in total assets as of September 30, 2021. Its wholly owned subsidiary, Cadence Bank, N.A., operates 99 branch locations in Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas, and provides corporations, middle-market companies, small businesses and consumers with a full range of innovative banking and financial solutions. Services and products include commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, SBA lending, foreign exchange, wealth management, investment and trust services, financial planning, retirement plan management, payroll and insurance services, consumer banking, consumer loans, mortgages, home equity lines and loans, and credit cards. Clients have access to leading-edge online and mobile solutions, interactive teller machines, and more than 55,000 ATMs. The Cadence team of approximately 1,800 associates is committed to exceeding customer expectations and helping their clients succeed financially.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this communication may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended with respect to BancorpSouth Bank’s and Cadence Bancorporation’s and Cadence Bank’s (together, “Cadence”) beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information but instead pertain to future operations, strategies, financial results or other developments. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “could,” “continue,” “seek,” “intend,” “estimate,” “expect,” “foresee,” “hope,” “intend,” “may,” “might,” “plan,” “should,” “predict,” “project,” “goal,” “outlook,” “potential,” “will,” “will result,” “will likely result,” or “would” or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the terms, timing and closing of the proposed transaction.

Cadence cautions readers not to place undue reliance on the forward-looking statements contained in this communication, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, many of which are beyond the control of BancorpSouth Bank and Cadence. The factors that could cause actual results to differ materially include the following: the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between BancorpSouth Bank and Cadence; the outcome of any legal proceedings that have been or may be instituted against BancorpSouth Bank or Cadence; the possibility that the proposed transaction will not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated; the ability of BancorpSouth Bank and Cadence to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of either or both parties to the proposed transaction; the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where BancorpSouth Bank and Cadence do business; certain restrictions during the pendency of the proposed transaction that may impact the parties’ ability to pursue certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management’s attention from ongoing business operations and opportunities; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all and to successfully integrate Cadence’s operations and those of BancorpSouth Bank; such integration may be more difficult, time consuming or costly than expected; revenues following the proposed transaction may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; BancorpSouth Bank and Cadence’s success in executing their respective business plans and strategies and managing the risks involved in the foregoing; the dilution caused by BancorpSouth Bank’s issuance of additional shares of its capital stock in connection with the proposed transaction; business and economic conditions generally and in the financial services industry, nationally and within Cadence’s current and future geographic market areas; economic, market, operational, liquidity, credit and interest rate risks associated with Cadence’s business; deteriorating asset quality and higher loan charge-offs; the laws and regulations applicable to Cadence’s business; Cadence’s ability to achieve organic loan and deposit growth and the composition of such growth; increased competition in the financial services industry, nationally, regionally or locally; Cadence’s ability to maintain its historical earnings trends; Cadence’s ability to raise additional capital to implement its business plan; material weaknesses in Cadence’s internal control over financial reporting; systems failures or interruptions involving Cadence’s information technology and telecommunications systems or third-party servicers; the composition of Cadence’s management team and its ability to attract and retain key personnel; the fiscal position of the U.S. federal government and the soundness of other financial institutions; the composition of Cadence’s loan portfolio, including the identity of Cadence’s borrowers and the concentration of loans in energy-related industries and in its specialized industries; the portion of Cadence’s loan portfolio that is comprised of participations and shared national credits; the amount of nonperforming and classified assets Cadence holds; the extent of the impact of the COVID-19 pandemic on Cadence and its customers, counterparties, employees and third-party service providers, and the impacts to Cadence’s business, financial position, results of operations, and prospects; and other factors that may affect future results of BancorpSouth Bank and Cadence; and the other factors discussed in “Risk Factors” in BancorpSouth Bank’s Annual Report on Form 10-K for the year ended December 31, 2020, BancorpSouth Bank’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and BancorpSouth Bank’s other filings with the Federal Deposit Insurance Corporation (the “FDIC”), which are available at https://www.fdic.gov/ and in the “Investor Relations” section of BancorpSouth Bank’s website, https://www.bancorpsouth.com/, under the heading “Public Filings,” and in Cadence’s Annual Report on Form 10-K for the year ended December 31, 2020, Cadence’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and in Cadence’s other filings with the U.S. Securities and Exchange Commission (the “SEC”), which are available at http://www.sec.gov and in the “Investor Relations” section of Cadence’s website, https://cadencebancorporation.com/, under the heading “SEC Filings.” BancorpSouth Bank and Cadence assume no obligation to update the information in this communication, except as otherwise required by law.

About Non-GAAP Financial Measures

Certain of the financial measures and ratios Cadence presents, including “efficiency ratio,” “adjusted efficiency ratio,” “adjusted noninterest expenses,” “adjusted operating revenue,” “tangible common equity ratio,” “tangible book value per share” and “return on average tangible common equity”, “adjusted return on average tangible common equity”, “adjusted return on average assets”, “adjusted diluted earnings per share”, and “pre-tax, pre-provision net revenue” are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). Cadence refers to these financial measures and ratios as “non-GAAP financial measures.” Cadence considers the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. Cadence believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain expenditures or assets that Cadence believes are not indicative of its primary business operating results or by presenting certain metrics on a fully taxable equivalent basis.

Cadence believes that management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting, analyzing and comparing past, present and future periods.

These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of Cadence’s performance.

The non-GAAP financial measures Cadence presents may differ from non-GAAP financial measures used by its peers or other companies. Cadence compensates for these limitations by providing the equivalent GAAP measures whenever it presents the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing Cadence’s performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables (Table 10).

Table 1 – Selected Financial Data
	As of and for the Three Months Ended
(In thousands, except share and per share data)	3Q 2021			2Q 2021			1Q 2021			4Q 2020		3Q 2020
Income Statement Data
Interest income	$	143,784		$	148,029		$	154,701		$	170,739	$	170,497
Interest expense		7,658			9,488			11,953			13,998		16,455
Net interest income		136,126			138,541			142,748			156,741		154,042
Provision (release) for credit losses		(28,407	)		(51,876	)		(48,262	)		2,835		32,973
Net interest income after provision (release)		164,533			190,417			191,010			153,906		121,069
Noninterest income ^(1)		62,112			46,474			43,696			209,745		32,591
Noninterest expense		117,187			106,066			97,822			105,331		94,859
Income before income taxes		109,458			130,825			136,884			258,320		58,801
Income tax expense		25,472			29,516			30,459			57,737		9,486
Net income	$	83,986		$	101,309		$	106,425		$	200,583	$	49,315
Weighted average common shares outstanding
Basic		123,840,090			124,732,617			125,079,250			125,973,736		125,956,714
Diluted		124,598,096			125,548,794			125,621,508			126,408,959		126,094,868
Earnings per share
Basic	$	0.67		$	0.81		$	0.85		$	1.58	$	0.39
Diluted		0.67			0.80			0.84			1.57		0.39
Period-End Balance Sheet Data
Cash and cash equivalents	$	3,426,831		$	2,100,099		$	1,888,518		$	2,053,946	$	1,247,172
Investment securities		4,003,138			4,277,448			3,918,666			3,332,168		3,088,699
Total loans, net of unearned income		11,498,228			11,634,502			12,365,334			12,719,129		13,465,556
Allowance for credit losses		219,607			247,732			308,037			367,160		385,412
Total assets		19,754,467			18,692,623			18,800,350			18,712,567		18,404,195
Total deposits		17,138,087			15,983,808			16,129,199			16,052,245		15,786,221
Noninterest-bearing deposits		6,322,646			5,670,234			5,556,217			5,033,748		5,033,338
Interest-bearing deposits		10,815,441			10,313,574			10,572,982			11,018,497		10,752,883
Borrowings and subordinated debentures		182,838			282,688			332,984			372,669		372,446
Total shareholders’ equity		2,182,088			2,202,738			2,092,536			2,121,102		2,071,472
Average Balance Sheet Data
Cash and cash equivalents	$	2,243,526		$	1,973,893		$	2,195,037		$	1,395,089	$	1,112,258
Investment securities		4,383,864			4,018,601			3,446,172			3,201,722		2,960,357
Total loans, net of unearned income		11,644,822			12,143,148			12,651,585			13,238,440		13,652,395
Allowance for credit losses		248,464			308,076			370,736			393,306		389,243
Total assets		18,963,484			18,697,625			18,837,133			18,354,046		18,248,014
Total deposits		16,273,861			16,051,226			16,200,631			15,736,884		15,628,314
Noninterest-bearing deposits		5,722,202			5,726,273			5,356,120			5,245,478		4,892,079
Interest-bearing deposits		10,551,659			10,324,953			10,844,511			10,491,406		10,736,235
Borrowings and subordinated debentures		260,136			329,976			363,046			372,920		372,304
Total shareholders’ equity		2,199,977			2,114,127			2,085,712			2,072,030		2,052,079

(1)	The 4Q 2020 includes hedge revenue of $169.2 million, $129.5 million after tax

Table 1 (Continued) – Selected Financial Data
	As of and for the Three Months Ended
(In thousands, except share and per share data)	3Q 2021			2Q 2021			1Q 2021			4Q 2020			3Q 2020
Per Share Data:
Book value	$	17.83		$	17.66		$	16.78		$	16.84		$	16.45
Tangible book value ^(1)		16.91			16.72			15.80			15.83			15.40
Cash dividends declared		0.150			0.150			0.150			0.075			0.050
Dividend payout ratio		22.39	%		18.52	%		17.65	%		4.75	%		12.82	%
Performance Ratios:
Return on average common equity^(2)		15.15	%		19.22	%		20.69	%		38.51	%		9.56	%
Return on average tangible common equity^(1) (2)		16.66			21.12			22.80			41.90			11.08
Return on average assets ^(2)		1.76			2.17			2.29			4.35			1.08
Net interest margin ^(2)		2.99			3.10			3.22			3.54			3.49
Efficiency ratio^(1)		59.11			57.33			52.47			28.74			50.83
Adjusted efficiency ratio^(1)		56.48			53.94			53.11			28.79			49.45
Asset Quality Ratios:
Total NPA to total loans, OREO, and other NPA		1.00	%		1.20	%		1.15	%		1.24	%		1.55	%
Total nonperforming loans ("NPL") to total loans		0.87			1.05			1.00			1.08			1.40
Total ACL to total loans		1.91			2.13			2.49			2.89			2.86
ACL to total NPL		218.63			202.20			249.70			266.05			203.82
Net charge-offs to average loans^(2)		(0.01	)		0.29			0.39			0.64			0.58
Capital Ratios:
Total shareholders’ equity to assets		11.0	%		11.8	%		11.1	%		11.3	%		11.3	%
Tangible common equity to tangible assets ^(1)		10.5			11.2			10.6			10.7			10.6
Common equity Tier 1 capital ^(3)		14.5			14.7			14.2			14.0			12.0
Tier 1 leverage capital ^(3)		11.3			11.4			10.9			10.9			9.9
Tier 1 risk-based capital^(3)		14.5			14.7			14.2			14.0			12.0
Total risk-based capital ^(3)		16.6			17.0			16.7			16.7			14.7

(1)	Considered a non-GAAP financial measure. See Table 10 "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
(2)	Annualized.
(3)	Current quarter regulatory capital ratios are estimates.

Table 2 – Average Balances/Yield/Rates
	For the Three Months Ended September 30,
	2021									2020
	Average			Income/			Yield/			Average			Income/			Yield/
(In thousands)	Balance			Expense			Rate			Balance			Expense			Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income ^(1)
Originated loans	$	9,933,466		$	102,246			4.08	%	$	11,168,913		$	123,177			4.39	%
ANCI portfolio		1,575,138			19,626			4.94			2,295,097			28,214			4.89
PCD portfolio		136,218			3,665			10.67			188,385			3,460			7.31
Total loans		11,644,822			125,537			4.28			13,652,395			154,851			4.51
Investment securities
Taxable		4,040,187			15,047			1.48			2,694,012			13,164			1.94
Tax-exempt ^(2)		343,677			2,669			3.08			266,345			2,150			3.21
Total investment securities		4,383,864			17,716			1.60			2,960,357			15,314			2.06
Federal funds sold and short-term investments		2,012,073			824			0.16			942,017			432			0.18
Other investments		69,090			267			1.53			77,262			350			1.80
Total interest-earning assets		18,109,849			144,344			3.16			17,632,031			170,947			3.86
Noninterest-earning assets:
Cash and due from banks		231,453									170,241
Premises and equipment		128,213									127,432
Accrued interest and other assets		742,433									707,553
Allowance for credit losses		(248,464	)								(389,243	)
Total assets	$	18,963,484								$	18,248,014
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits	$	8,302,457		$	2,598			0.12	%	$	8,037,801		$	4,682			0.23	%
Savings deposits		402,023			61			0.06			319,004			140			0.17
Time deposits		1,847,179			2,313			0.50			2,379,430			7,741			1.29
Total interest-bearing deposits		10,551,659			4,972			0.19			10,736,235			12,563			0.47
Other borrowings		77,174			176			0.90			149,973			931			2.47
Subordinated debentures		182,962			2,510			5.44			222,331			2,961			5.30
Total interest-bearing liabilities		10,811,795			7,658			0.28			11,108,539			16,455			0.59
Noninterest-bearing liabilities:
Demand deposits		5,722,202									4,892,079
Accrued interest and other liabilities		229,510									195,317
Total liabilities		16,763,507									16,195,935
Shareholders' equity		2,199,977									2,052,079
Total liabilities and shareholders' equity	$	18,963,484								$	18,248,014
Net interest income/net interest spread					136,686			2.88	%					154,492			3.27	%
Net yield on earning assets/net interest margin								2.99	%								3.49	%
Taxable equivalent adjustment:
Investment securities					(560	)								(451	)
Net interest income				$	136,126								$	154,041

(1)	Nonaccrual loans are included in loans, net of unearned income. No adjustment has been made for these loans in the calculation of yields.
(2)	Interest income and yields are presented on a fully taxable equivalent basis using a federal income tax rate of 21%.

Table 2 (Continued) – Average Balances/Yield/Rates
	For the Three Months Ended
	September 30, 2021									June 30, 2021
	Average			Income/			Yield/			Average			Income/			Yield/
(In thousands)	Balance			Expense			Rate			Balance			Expense			Rate
ASSETS
Interest-earning assets:
Loans, net of unearned income ^(1)
Originated loans	$	9,933,466		$	102,246			4.08	%	$	10,256,387		$	107,760			4.21	%
ANCI portfolio		1,575,138			19,626			4.94			1,737,494			20,660			4.77
PCD portfolio		136,218			3,665			10.67			149,267			2,858			7.68
Total loans		11,644,822			125,537			4.28			12,143,148			131,278			4.34
Investment securities
Taxable		4,040,187			15,047			1.48			3,681,937			13,551			1.48
Tax-exempt ^(2)		343,677			2,669			3.08			336,664			2,644			3.15
Total investment securities		4,383,864			17,716			1.60			4,018,601			16,195			1.62
Federal funds sold and short-term investments		2,012,073			824			0.16			1,755,586			681			0.16
Other investments		69,090			267			1.53			69,873			431			2.47
Total interest-earning assets		18,109,849			144,344			3.16			17,987,208			148,585			3.31
Noninterest-earning assets:
Cash and due from banks		231,453									218,307
Premises and equipment		128,213									124,893
Accrued interest and other assets		742,433									675,293
Allowance for credit losses		(248,464	)								(308,076	)
Total assets	$	18,963,484								$	18,697,625
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Demand deposits	$	8,302,457		$	2,598			0.12	%	$	7,933,078		$	2,952			0.15	%
Savings deposits		402,023			61			0.06			400,955			83			0.08
Time deposits		1,847,179			2,313			0.50			1,990,920			3,008			0.61
Total interest-bearing deposits		10,551,659			4,972			0.19			10,324,953			6,043			0.23
Other borrowings		77,174			176			0.90			146,701			924			2.53
Subordinated debentures		182,962			2,510			5.44			183,275			2,521			5.52
Total interest-bearing liabilities		10,811,795			7,658			0.28			10,654,929			9,488			0.36
Noninterest-bearing liabilities:
Demand deposits		5,722,202									5,726,273
Accrued interest and other liabilities		229,510									202,296
Total liabilities		16,763,507									16,583,498
Shareholders' equity		2,199,977									2,114,127
Total liabilities and shareholders' equity	$	18,963,484								$	18,697,625
Net interest income/net interest spread					136,686			2.88	%					139,097			2.96	%
Net yield on earning assets/net interest margin								2.99	%								3.10	%
Taxable equivalent adjustment:
Investment securities					(560	)								(556	)
Net interest income				$	136,126								$	138,541

_______________
(1)	Nonaccrual loans are included in loans, net of unearned income. No adjustment has been made for these loans in the calculation of yields.
(2)	Interest income and yields are presented on a fully taxable equivalent basis using a federal income tax rate of 21%.

Table 3 – Loan Interest Income Detail
	YTD			For the Quarters,
(In thousands)	September 30, 2021			3Q 2021			2Q 2021			1Q 2021			4Q 2020			3Q 2020
Interest Income Detail
Originated loans	$	323,741		$	102,246		$	107,760		$	113,735		$	125,535		$	123,177
ANCI loans: interest income		49,522			15,020			16,670			17,832			20,507			22,850
ANCI loans: accretion		13,475			4,606			3,990			4,879			5,436			5,364
PCD loans: interest income		7,278			2,472			2,372			2,433			3,355			2,421
PCD loans: accretion		2,624			1,193			486			945			465			1,039
Total loan interest income	$	396,639		$	125,537		$	131,278		$	139,824		$	155,298		$	154,851
Yields
Originated loans		4.22	%		4.08	%		4.21	%		4.35	%		4.57	%		4.39	%
ANCI loans without discount accretion		3.83			3.78			3.85			3.85			3.84			3.96
ANCI loans discount accretion		1.04			1.16			0.92			1.05			1.01			0.93
PCD loans without discount accretion		6.55			7.20			6.37			6.15			7.73			5.11
PCD loans discount accretion		2.36			3.47			1.31			2.39			1.08			2.20
Total loan yield		4.37	%		4.28	%		4.34	%		4.48	%		4.67	%		4.51	%

Table 4 – Allowance for Credit Losses (“ACL”) ^(1)
	For the Three Months Ended
(In thousands)	3Q 2021			2Q 2021			1Q 2021			4Q 2020			3Q 2020
Balance at beginning of period	$	247,732		$	308,037		$	367,160		$	385,412		$	370,901
Charge-offs		(5,319	)		(11,265	)		(14,671	)		(23,956	)		(21,830	)
Recoveries		5,746			2,541			2,563			2,770			1,936
Net (charge-offs) recoveries		427			(8,724	)		(12,108	)		(21,186	)		(19,894	)
Provision (release) for loan losses		(28,552	)		(51,581	)		(47,015	)		2,934			34,405
Balance at end of period	$	219,607		$	247,732		$	308,037		$	367,160		$	385,412

(1)	This table represents the activity in the ACL for funded loans.

Table 5 – ACL Activity by Segment
	For the Three Months Ended September 30, 2021
(In thousands)	Commercial and Industrial			Commercial Real Estate			Consumer			Total Allowance for Credit Losses			Reserve for Unfunded Commitments ^(1)			Total
As of June 30, 2021	$	131,309		$	85,915		$	30,508		$	247,732		$	754		$	248,486
Provision (release) for credit losses		(7,025	)		(20,933	)		(594	)		(28,552	)		145			(28,407	)
Charge-offs		(3,899	)		(1,107	)		(313	)		(5,319	)		—			(5,319	)
Recoveries		3,323			2,262			161			5,746			—			5,746
As of September 30, 2021	$	123,708		$	66,137		$	29,762		$	219,607		$	899		$	220,506
	For the Nine Months Ended September 30, 2021
(In thousands)	Commercial and Industrial			Commercial Real Estate			Consumer			Total Allowance for Credit Losses			Reserve for Unfunded Commitments ^(1)			Total
As of December 31, 2020	$	187,365		$	141,187		$	38,608		$	367,160		$	2,296		$	369,456
Provision (release) for credit losses		(42,220	)		(76,298	)		(8,630	)		(127,148	)		(1,397	)		(128,545	)
Charge-offs		(28,241	)		(2,325	)		(688	)		(31,254	)		—			(31,254	)
Recoveries		6,804			3,573			472			10,849			—			10,849
As of September 30, 2021	$	123,708		$	66,137		$	29,762		$	219,607		$	899		$	220,506

(1)	The reserve for unfunded commitments is recorded in other liabilities in the consolidated balance sheets.

Table 6 – Criticized Loans by Segment
	As of September 30, 2021 ^(1)
(Amortized cost in thousands)	Special Mention		Substandard		Doubtful		Total Criticized
Commercial and industrial
General C&I	$	80,086	$	101,587	$	9,004	$	190,677
Energy		33,095		61,848		7,060		102,003
Restaurant		8,087		21,692		1,949		31,728
Healthcare		6,868		2,493		—		9,361
Total commercial and industrial		128,136		187,620		18,013		333,769
Commercial real estate
Industrial, retail, and other		12,981		36,189		—		49,170
Hospitality		16,014		50,400		—		66,414
Multifamily		89		—		—		89
Office		10,689		—		—		10,689
Total commercial real estate		39,773		86,589		—		126,362
Consumer
Residential		—		15,667		—		15,667
Other		—		60		—		60
Total consumer		—		15,727		—		15,727
Total	$	167,909	$	289,936	$	18,013	$	475,858
(1) Criticized loans do not include loans held for sale of less than $0.1 million.
	As of June 30, 2021 ^(1)
(Amortized cost in thousands)	Special Mention		Substandard		Doubtful		Total Criticized
Commercial and industrial
General C&I	$	88,877	$	98,360	$	10,849	$	198,086
Energy		53,829		98,157		7,141		159,127
Restaurant		33,374		59,578		4,000		96,952
Healthcare		1,782		14,862		—		16,644
Total commercial and industrial		177,862		270,957		21,990		470,809
Commercial real estate
Industrial, retail, and other		18,460		39,211		—		57,671
Hospitality		24,267		68,324		—		92,591
Multifamily		10,409		1,411		—		11,820
Office		11,034		9,142		—		20,176
Total commercial real estate		64,170		118,088		—		182,258
Consumer
Residential		—		14,803		—		14,803
Other		—		21		—		21
Total consumer		—		14,824		—		14,824
Total	$	242,032	$	403,869	$	21,990	$	667,891
(1) Criticized loans do not include loans held for sale of $0.2 million.

Table 7 – Nonperforming Assets

	As of
(In thousands)	3Q 2021			2Q 2021			1Q 2021			4Q 2020			3Q 2020
Nonperforming loans ^(1)
Commercial and industrial	$	79,046		$	92,257		$	94,153		$	109,410		$	145,991
Commercial real estate		6,425			14,557			14,846			14,559			26,742
Consumer		14,976			15,703			14,364			14,033			16,364
Total nonperforming loans ("NPL")		100,447			122,517			123,363			138,002			189,097
Foreclosed OREO and other NPA		20,399			17,613			19,125			19,788			20,344
Total nonperforming assets	$	120,846		$	140,130		$	142,488		$	157,790		$	209,441
NPL as a percentage of total loans		0.87	%		1.05	%		1.00	%		1.08	%		1.40	%
NPA as a percentage of loans plus OREO/other		1.05	%		1.20	%		1.15	%		1.24	%		1.55	%
NPA as a percentage of total assets		0.61	%		0.75	%		0.76	%		0.84	%		1.14	%
Total accruing loans 90 days or more past due	$	3,906		$	988		$	1,399		$	13,880		$	7,260

(1)	Nonperforming loans do not include nonperforming loans held for sale of $3.4 million and $0.2 million at March 31, 2021 and December 31, 2020, respectively.

Table 8 – Noninterest Income
	For the Three Months Ended
(In thousands)	3Q 2021		2Q 2021		1Q 2021		4Q 2020		3Q 2020
Noninterest Income
Hedge revenue	$	—	$	—	$	—	$	169,248	$	—
Investment advisory revenue		8,007		8,222		7,609		7,457		6,797
Trust services revenue		5,317		4,888		5,509		4,885		4,556
Service charges on deposit accounts		7,815		7,228		6,404		6,028		5,847
Mortgage banking income		1,387		1,587		2,115		3,062		3,535
Credit-related fees		4,134		5,477		3,849		4,766		4,202
Bankcard fees		1,695		1,919		1,753		1,775		1,745
Payroll processing revenue		1,377		1,258		1,490		1,309		1,255
SBA income		3,813		5,810		3,967		2,889		3,037
Other service fees		1,841		1,963		2,209		1,751		1,450
Securities gains, net		15,757		11		2,259		1,353		79
Other		10,969		8,111		6,532		5,222		88
Total noninterest income	$	62,112	$	46,474	$	43,696	$	209,745	$	32,591

Table 9 – Noninterest Expenses
	For the Three Months Ended
(In thousands)	3Q 2021		2Q 2021		1Q 2021		4Q 2020		3Q 2020
Noninterest Expenses
Salaries and employee benefits	$	60,818	$	58,619	$	57,070	$	59,833	$	51,734
Premises and equipment		11,054		10,709		10,374		11,036		10,716
Merger related expenses		4,169		6,267		—		—		2,105
Intangible asset amortization		4,686		4,836		4,986		5,164		5,299
Data processing		3,162		3,179		3,259		3,047		3,024
Software amortization		4,931		4,950		4,507		4,480		4,432
Consulting and professional fees		3,361		3,736		3,233		3,450		3,320
Loan related expenses		674		754		796		631		953
FDIC insurance		1,537		1,656		1,465		3,007		2,528
Communications		1,092		1,281		1,243		1,175		1,119
Advertising and public relations		1,082		1,487		927		956		716
Legal expenses		703		594		925		726		681
Other^(1)		19,918		7,998		9,037		11,826		8,232
Total noninterest expenses	$	117,187	$	106,066	$	97,822	$	105,331	$	94,859

(1)	3Q 2021 includes regulatory settlement of $9.9 million.

Table 10 – Reconciliation of Non-GAAP Financial Measures
	As of and for the Three Months Ended
(In thousands, except share and per share data)	3Q 2021			2Q 2021			1Q 2021			4Q 2020			3Q 2020
Efficiency ratio
Noninterest expenses (numerator)	$	117,187		$	106,066		$	97,822		$	105,331		$	94,859
Net interest income	$	136,126		$	138,541		$	142,748		$	156,741		$	154,042
Noninterest income		62,112			46,474			43,696			209,745			32,591
Operating revenue (denominator)	$	198,238		$	185,015		$	186,444		$	366,486		$	186,633
Efficiency ratio		59.11	%		57.33	%		52.47	%		28.74	%		50.83	%
Adjusted efficiency ratio
Noninterest expenses	$	117,187		$	106,066		$	97,822		$	105,331		$	94,859
Less: merger related expenses		4,169			6,267			—			—			2,105
Less: regulatory settlement expenses		9,945			—			—			—			—
Less: expenses related to COVID-19 pandemic		—			—			—			215			235
Adjusted noninterest expenses (numerator)	$	103,073		$	99,799		$	97,822		$	105,116		$	92,519
Net interest income	$	136,126		$	138,541		$	142,748		$	156,741		$	154,042
Noninterest income		62,112			46,474			43,696			209,745			32,591
Plus: impairment charge on branch building		—			—			—			—			538
Less: securities gains, net		15,757			11			2,259			1,353			79
Adjusted noninterest income		46,355			46,463			41,437			208,392			33,050
Adjusted operating revenue (denominator)	$	182,481		$	185,004		$	184,185		$	365,133		$	187,092
Adjusted efficiency ratio		56.48	%		53.94	%		53.11	%		28.79	%		49.45	%
Tangible common equity ratio
Shareholders’ equity	$	2,182,088		$	2,202,738		$	2,092,536		$	2,121,102		$	2,071,472
Less: goodwill and other intangible assets, net		(112,334	)		(117,020	)		(121,856	)		(126,841	)		(132,005	)
Tangible common shareholders’ equity		2,069,754			2,085,718			1,970,680			1,994,261			1,939,467
Total assets		19,754,467			18,692,623			18,800,350			18,712,567			18,404,195
Less: goodwill and other intangible assets, net		(112,334	)		(117,020	)		(121,856	)		(126,841	)		(132,005	)
Tangible assets	$	19,642,133		$	18,575,603		$	18,678,494		$	18,585,726		$	18,272,190
Tangible common equity ratio		10.54	%		11.23	%		10.55	%		10.73	%		10.61	%
Tangible book value per share
Shareholders’ equity	$	2,182,088		$	2,202,738		$	2,092,536		$	2,121,102		$	2,071,472
Less: goodwill and other intangible assets, net		(112,334	)		(117,020	)		(121,856	)		(126,841	)		(132,005	)
Tangible common shareholders’ equity	$	2,069,754		$	2,085,718		$	1,970,680		$	1,994,261		$	1,939,467
Common shares outstanding		122,395,359			124,752,738			124,698,518			125,978,561			125,946,793
Tangible book value per share	$	16.91		$	16.72		$	15.80		$	15.83		$	15.40

Table 10 (Continued) – Reconciliation of Non-GAAP Measures
	As of and for the Three Months Ended
(In thousands, except share and per share data)	3Q 2021			2Q 2021			1Q 2021			4Q 2020			3Q 2020
Return on average tangible common equity
Average common equity	$	2,199,977		$	2,114,127		$	2,085,712		$	2,072,030		$	2,052,079
Less: average intangible assets		(115,213	)		(120,125	)		(125,042	)		(130,146	)		(135,491	)
Average tangible common shareholders’ equity	$	2,084,764		$	1,994,002		$	1,960,670		$	1,941,884		$	1,916,588
Net income	$	83,986		$	101,309		$	106,425		$	200,583		$	49,315
Plus: intangible asset amortization, net of tax		3,582			3,694			3,809			3,939			4,042
Tangible net income	$	87,568		$	105,003		$	110,234		$	204,522		$	53,357
Return on average tangible common equity^(1)		16.66	%		21.12	%		22.80	%		41.90	%		11.08	%
Adjusted return on average tangible common equity
Average tangible common shareholders’ equity	$	2,084,764		$	1,994,002		$	1,960,670		$	1,941,884		$	1,916,588
Tangible net income	$	87,568		$	105,003		$	110,234		$	204,522		$	53,357
Non-routine items:
Plus: merger related expenses		4,169			6,267			—			—			2,105
Plus: regulatory settlement expenses		9,945			—			—			—			—
Plus: expenses related to COVID-19 pandemic		—			—			—			215			235
Plus: impairment loss on branch building		—			—			—			—			538
Less: securities gains, net		15,757			11			2,259			1,353			79
Less: income tax effect of tax deductible non-routine items		(1,094	)		1,477			(533	)		(270	)		664
Total non-routine items, after tax		(549	)		4,779			(1,726	)		(868	)		2,135
Adjusted tangible net income	$	87,019		$	109,782		$	108,508		$	203,654		$	55,492
Adjusted return on average tangible common equity^(1)		16.56	%		22.08	%		22.44	%		41.72	%		11.52	%
Adjusted return on average assets
Average assets	$	18,963,484		$	18,697,625		$	18,837,133		$	18,354,046		$	18,248,014
Net income	$	83,986		$	101,309		$	106,425		$	200,583		$	49,315
Return on average assets		1.76	%		2.17	%		2.29	%		4.35	%		1.08	%
Net income	$	83,986		$	101,309		$	106,425		$	200,583		$	49,315
Total non-routine items, after tax		(549	)		4,779			(1,726	)		(868	)		2,135
Adjusted net income	$	83,437		$	106,088		$	104,699		$	199,715		$	51,450
Adjusted return on average assets^(1)		1.75	%		2.28	%		2.25	%		4.33	%		1.12	%
Adjusted diluted earnings per share
Diluted weighted average common shares outstanding		124,598,096			125,548,794			125,621,508			126,408,959			126,094,868
Net income allocated to common stock	$	83,429		$	100,575		$	105,829		$	198,765		$	48,884
Total non-routine items, after tax		(549	)		4,779			(1,726	)		(868	)		2,135
Adjusted net income allocated to common stock	$	82,880		$	105,354		$	104,103		$	197,897		$	51,019
Adjusted diluted earnings per share	$	0.67		$	0.84		$	0.83		$	1.57		$	0.40
Adjusted pre-tax, pre-provision net revenue
Income before taxes	$	109,458		$	130,825		$	136,884		$	258,320		$	58,801
Plus: provision (reversal) for credit losses		(28,407	)		(51,876	)		(48,262	)		2,835			32,973
Plus: total non-routine items before taxes		(1,643	)		6,256			(2,259	)		(1,138	)		2,799
Adjusted pre-tax, pre-provision net revenue	$	79,408		$	85,205		$	86,363		$	260,017		$	94,573
(1) Annualized.