Exhibit No. | Description | |
99.1 | Press Release of Sterling Bancorp, dated January 23, 2019 |
DATE: January 23, 2019 | By:/s/ Luis Massiani |
Exhibit Number | Description | |
99.1 |
FOR IMMEDIATE RELEASE | STERLING BANCORP CONTACT: |
January 23, 2019 | Luis Massiani, SEVP & Chief Financial Officer |
845.369.8040 | |
http://www.sterlingbancorp.com |
($ in thousands except per share amounts) | GAAP / As Reported | Non-GAAP / As Adjusted1 | |||||||||||||||||||
12/31/2017 | 12/31/2018 | Change % / bps | 12/31/2017 | 12/31/2018 | Change % / bps | ||||||||||||||||
Total revenue2 | $ | 640,345 | $ | 1,070,600 | 67.2 | % | $ | 660,744 | $ | 1,085,819 | 64.3 | % | |||||||||
Net income available to common | 91,029 | 439,276 | 382.6 | 222,039 | 449,645 | 102.5 | |||||||||||||||
Diluted EPS available to common | 0.58 | 1.95 | 236.2 | 1.40 | 2.00 | 42.9 | |||||||||||||||
Net interest margin3 | 3.44 | % | 3.51 | % | 7 | 3.55 | % | 3.57 | % | 2 | |||||||||||
Return on average tangible common equity | 6.22 | 17.87 | 1,165 | 15.17 | 18.29 | 312 | |||||||||||||||
Return on average tangible assets | 0.52 | 1.51 | 99 | 1.27 | 1.55 | 28 | |||||||||||||||
Operating efficiency ratio4 | 67.7 | 42.8 | (2,490 | ) | 41.8 | 38.8 | (300 | ) |
▪ | Net income available to common stockholders of $439.3 million (as reported) and $449.6 million (as adjusted). |
▪ | Total commercial loans of $16.2 billion at December 31, 2018; growth of 11.1% from December 31, 2017. |
▪ | Operating efficiency ratio of 42.8% (as reported) and 38.8% (as adjusted). |
▪ | Operating leverage ratio of 2.9x relative to full year 2017. |
▪ | Tangible book value per common share1 of $11.78; growth of 11.9% over December 31, 2017. |
($ in thousands except per share amounts) | GAAP / As Reported | Non-GAAP / As Adjusted1 | |||||||||||||||||||
12/31/2017 | 12/31/2018 | Change % / bps | 12/31/2017 | 12/31/2018 | Change % / bps | ||||||||||||||||
Total revenue2 | $ | 257,786 | $ | 265,346 | 2.9 | % | $ | 265,014 | $ | 274,247 | 3.5 | % | |||||||||
Net (loss) income available to common | (35,281 | ) | 112,501 | NM | 87,171 | 116,458 | 33.6 | ||||||||||||||
Diluted EPS available to common | (0.16 | ) | 0.51 | NM | 0.39 | 0.52 | 34.4 | ||||||||||||||
Net interest margin3 | 3.57 | % | 3.48 | % | (9 | ) | 3.67 | % | 3.53 | % | (14 | ) | |||||||||
Return on average tangible common equity | (5.87 | ) | 17.56 | NM | 14.49 | 18.17 | 368 | ||||||||||||||
Return on average tangible assets | (0.51 | ) | 1.53 | NM | 1.25 | 1.58 | 33 | ||||||||||||||
Operating efficiency ratio4 | 97.3 | 41.4 | (5,590 | ) | 41.4 | 38.0 | (340 | ) |
▪ | Growth in commercial loan balances of $413.3 million over linked quarter; 10.4% annualized growth rate. |
▪ | Entered into agreement to sell $1.6 billion of residential mortgage loans; anticipated to close in February 2019. |
▪ | Announced pending acquisition of $504 million commercial loan portfolio; anticipated to close in February 2019. |
▪ | Adjusted operating expenses in the fourth quarter of 2018 were $104.2 million1; represents an annualized run-rate of $413.5 million. |
▪ | Average total deposit growth of $868.6 million; cost of total deposits increased 34 basis points to 0.77%. |
▪ | Repurchased 9,114,771 common shares at a weighted average cost of $17.54 per share in the fourth quarter of 2018. |
▪ | We transferred $1.6 billion of residential mortgage loans held in portfolio to loans held for sale and entered into an agreement to sell these loans, which we anticipate will be completed in February 2019. These loans were acquired in the Astoria Merger. |
▪ | On January 22, 2019, we entered into a definitive agreement with Woodforest National Bank to acquire $504 million of commercial loans. These loan portfolios are complementary to our existing asset-based lending and equipment finance businesses and have a weighted average interest rate of 5.5%. We expect this transaction to close on February 28, 2019. |
▪ | We anticipate these balance sheet actions will be accretive to our net interest margin excluding the impact of accretion income by approximately 20 basis points in 2019. |
($ in thousands) | For the three months ended | Change % / bps | |||||||||||||||
12/31/2017 | 9/30/2018 | 12/31/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Interest and dividend income | $ | 276,495 | $ | 309,025 | $ | 313,197 | 13.3 | % | 1.4 | % | |||||||
Interest expense | 42,471 | 65,076 | 70,326 | 65.6 | 8.1 | ||||||||||||
Net interest income | $ | 234,024 | $ | 243,949 | $ | 242,871 | 3.8 | (0.4 | ) | ||||||||
Accretion income on acquired loans | $ | 33,726 | $ | 26,574 | $ | 27,016 | (19.9 | )% | 1.7 | % | |||||||
Yield on loans | 4.77 | % | 5.01 | % | 5.07 | % | 30 | 6 | |||||||||
Tax equivalent yield on investment securities | 3.03 | 2.87 | 2.92 | (11 | ) | 5 | |||||||||||
Tax equivalent yield on interest earning assets | 4.32 | 4.47 | 4.54 | 22 | 7 | ||||||||||||
Cost of total deposits | 0.43 | 0.68 | 0.77 | 34 | 9 | ||||||||||||
Cost of interest bearing deposits | 0.54 | 0.84 | 0.97 | 43 | 13 | ||||||||||||
Cost of borrowings | 1.94 | 2.29 | 2.43 | 49 | 14 | ||||||||||||
Cost of interest bearing liabilities | 0.82 | 1.17 | 1.28 | 46 | 11 | ||||||||||||
Tax equivalent net interest margin5 | 3.67 | 3.54 | 3.53 | (14 | ) | (1 | ) | ||||||||||
Average loans, including loans held for sale | $ | 19,518,485 | $ | 20,386,994 | $ | 20,389,223 | 4.5 | % | — | % | |||||||
Average investment securities | 5,926,824 | 6,774,712 | 6,685,989 | 12.8 | (1.3 | ) | |||||||||||
Average total interest earning assets | 26,043,748 | 27,799,933 | 27,710,655 | 6.4 | (0.3 | ) | |||||||||||
Average deposits and mortgage escrow | 20,483,857 | 21,115,354 | 21,352,428 | 4.2 | 1.1 |
▪ | The yield on loans was 5.07% compared to 4.77% for the three months ended December 31, 2017. The increase in yield on loans was mainly due to the change in portfolio composition as commercial loans represented a greater proportion of our loan portfolio compared to a year ago, and to increases in market rates of interest. Accretion income on acquired loans was $27.0 million in the fourth quarter of 2018 compared to $33.7 million in the fourth quarter of 2017. |
▪ | Average commercial loans, which includes all commercial and industrial loans, commercial real estate loans (including multi-family) and acquisition development and construction loans, were $15.7 billion compared to $14.0 billion in the fourth quarter of 2017, an increase of $1.8 billion or 12.6%. |
▪ | The tax equivalent yield on investment securities was 2.92% compared to 3.03% for the three months ended December 31, 2017. The tax equivalent adjustment assumed a 35% federal tax rate in 2017 compared to 21% in 2018, which caused the decline in yield between the periods. Average tax exempt securities balances grew to $2.6 billion for the quarter ended December 31, 2018, compared to $2.1 billion in the fourth quarter of 2017. Average investment securities were $6.7 billion, or 24.1%, of average total interest earning assets for the fourth quarter of 2018 compared to $5.9 billion, or 22.8%, of average earning assets for the fourth quarter of 2017. |
▪ | The tax equivalent yield on interest earning assets increased 22 basis points between the periods to 4.54%. |
▪ | The cost of total deposits was 77 basis points and the cost of borrowings was 2.43%, compared to 43 basis points and 1.94%, respectively, for the same period a year ago. The increase was mainly due to increases in market rates of interest. The cost of total deposits has also been impacted by the competitive environment in the Greater New York metropolitan area, as higher interest rates are required to attract and retain higher balance commercial and consumer deposits. Since the fourth quarter of 2017, the change in the cost of total deposits relative to the change in the Federal Funds rate has been 27.2%. |
▪ | The total cost of interest bearing liabilities increased 46 basis points to 1.28% for the fourth quarter of 2018 compared to 0.82% for the fourth quarter of 2017. The increase was mainly due to an increase in market interest rates, and competitive factors as discussed above. |
▪ | The yield on loans was 5.07% compared to 5.01% for the linked quarter. Accretion income on acquired loans was $27.0 million, an increase of $442 thousand relative to the linked quarter. Interest income and yield on loans were also impacted by a decrease of $1.2 million in loan prepayment penalties. |
▪ | The average balance of total portfolio loans increased $2.2 million. This included an increase of $216.7 million in the balance of commercial loans, which was offset by decreases of $195.8 million in the balance of residential mortgage loans and $18.6 million in consumer loans. Commercial loan growth was due to originations generated by our commercial banking teams. |
▪ | The tax equivalent yield on investment securities increased five basis points to 2.92% in the fourth quarter of 2018, as the average balance of taxable securities decreased by $60.5 million and the average balance of tax exempt securities decreased by $28.3 million. |
▪ | The tax equivalent yield on interest earning assets increased seven basis points and was 4.54% compared to 4.47% in the linked quarter. The increase was mainly due to increases in market rates of interest and a change in the mix of interest earning assets. |
▪ | The cost of total deposits increased 9 basis points to 77 basis points and the total cost of borrowings increased to 2.43% compared to 2.29% in the linked quarter, mainly due to the factors discussed above. |
▪ | Average interest bearing deposits increased by $87.7 million and average borrowings decreased $336.2 million relative to the linked quarter. Total interest expense increased by $5.3 million over the linked quarter. |
($ in thousands) | For the three months ended | Change % | |||||||||||||||
12/31/2017 | 9/30/2018 | 12/31/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Total non-interest income | $ | 23,762 | $ | 24,145 | $ | 22,475 | (5.4 | )% | (6.9 | )% | |||||||
Net (loss) on sale of securities | (70 | ) | (56 | ) | (4,886 | ) | NM | NM | |||||||||
Adjusted non-interest income | $ | 23,832 | $ | 24,201 | $ | 27,361 | 14.8 | 13.1 |
($ in thousands) | For the three months ended | Change % / bps | |||||||||||||||
12/31/2017 | 9/30/2018 | 12/31/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Compensation and benefits | $ | 56,086 | $ | 54,823 | $ | 54,677 | (2.5 | )% | (0.3 | )% | |||||||
Stock-based compensation plans | 2,508 | 3,115 | 3,679 | 46.7 | 18.1 | ||||||||||||
Occupancy and office operations | 18,100 | 16,558 | 16,579 | (8.4 | ) | 0.1 | |||||||||||
Information technology | 11,984 | 10,699 | 8,761 | (26.9 | ) | (18.1 | ) | ||||||||||
Amortization of intangible assets | 6,426 | 5,865 | 5,865 | (8.7 | ) | — | |||||||||||
FDIC insurance and regulatory assessments | 5,737 | 6,043 | 3,608 | (37.1 | ) | (40.3 | ) | ||||||||||
Other real estate owned, (“OREO”) net | 742 | 1,497 | 15 | (98.0 | ) | (99.0 | ) | ||||||||||
Merger-related expenses | 30,230 | — | — | NM | — | ||||||||||||
Charge for asset write-downs, systems integration, retention and severance | 104,506 | — | — | NM | — | ||||||||||||
Other expenses | 14,427 | 13,173 | 16,737 | 16.0 | 27.1 | ||||||||||||
Total non-interest expense | $ | 250,746 | $ | 111,773 | $ | 109,921 | (56.2 | ) | (1.7 | ) | |||||||
Full time equivalent employees (“FTEs”) at period end | 2,076 | 1,959 | 1,907 | (8.1 | ) | (2.7 | ) | ||||||||||
Financial centers at period end | 128 | 113 | 106 | (17.2 | ) | (6.2 | ) | ||||||||||
Operating efficiency ratio, as reported6 | 97.3 | % | 41.7 | % | 41.4 | % | 5,590 | 30 | |||||||||
Operating efficiency ratio, as adjusted6 | 41.4 | 38.9 | 38.0 | 340 | 90 | ||||||||||||
6 See a reconciliation of non-GAAP financial measures beginning on page 17. |
▪ | Compensation and benefits decreased $1.4 million between the periods. Total FTEs declined to 1,907 from 2,076, which was mainly due to completion of the Astoria Merger integration, including the deposit systems conversion and ongoing financial center consolidation strategy. |
▪ | Occupancy and office operations decreased $1.5 million mainly due to the consolidation of financial centers and other locations acquired in the Astoria Merger. In the fourth quarter of 2018, we consolidated seven financial centers and in 2018, we consolidated 22 financial centers, closed two back-office locations and sold the Astoria Lake Success headquarters location. |
▪ | Information technology expense decreased $3.2 million as we completed the conversion of Astoria’s deposit systems in the third quarter of 2018. |
▪ | Amortization of intangible assets decreased $561 thousand. The decrease is mainly due to the accelerated amortization of the core deposit intangible assets that were recorded in the Astoria Merger and other acquisitions. |
▪ | FDIC insurance and regulatory assessments decreased $2.1 million to $3.6 million in the fourth quarter of 2018, compared to $5.7 million in the fourth quarter of 2017. This was mainly due to a decrease in FDIC deposit insurance expense. |
▪ | OREO, net decreased $727 thousand to $15 thousand, compared to $742 thousand for the fourth quarter of 2017. In the fourth quarter of 2018, OREO, net included gain on sale of $331 thousand, which was mainly offset by $126 thousand of write-downs and $255 of operating costs. |
▪ | Merger-related expenses and charges for asset write-downs, systems integration, retention and severance were incurred in the fourth quarter of 2017 in connection with the Astoria Merger. These charges did not recur in the fourth quarter of 2018. |
▪ | Other expenses increased $2.3 million to $16.7 million, compared to $14.4 million in the fourth quarter of 2017. The increase is mainly due to higher professional fees, marketing expense and higher loan processing expense. |
▪ | Compensation and benefits declined $146 thousand and was $54.7 million compared to $54.8 million in the linked quarter. Total FTEs declined to 1,907 at December 31, 2018 from 1,959 at September 30, 2018, as we continue to integrate Astoria’s personnel and operations. |
▪ | Information technology expense decreased $1.9 million compared to the linked quarter as cost savings from the Astoria deposit systems conversion were realized. |
▪ | OREO, net was $15 thousand compared to $1.5 million in the linked quarter; as the linked quarter included $617 thousand of property tax, $790 thousand of other OREO operating expense, $190 thousand of property write-downs. |
($ in thousands) | As of | Change % / bps | |||||||||||||||
12/31/2017 | 9/30/2018 | 12/31/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Total assets | $ | 30,359,541 | $ | 31,261,265 | $ | 31,383,307 | 3.4 | % | 0.4 | % | |||||||
Total portfolio loans, gross | 20,008,983 | 20,533,214 | 19,218,530 | (4.0 | ) | (6.4 | ) | ||||||||||
Commercial & industrial (“C&I”) loans | 5,306,821 | 6,244,030 | 6,533,386 | 23.1 | 4.6 | ||||||||||||
Commercial real estate loans (including multi-family) | 8,998,419 | 9,284,657 | 9,406,541 | 4.5 | 1.3 | ||||||||||||
Acquisition, development and construction loans | 282,792 | 265,676 | 267,754 | (5.3 | ) | 0.8 | |||||||||||
Total commercial loans | 14,588,032 | 15,794,363 | 16,207,681 | 11.1 | 2.6 | ||||||||||||
Residential mortgage loans | 5,054,732 | 4,421,520 | 2,705,226 | (46.5 | ) | (38.8 | ) | ||||||||||
Total deposits | 20,538,204 | 21,456,057 | 21,214,148 | 3.3 | (1.1 | ) | |||||||||||
Core deposits 8 | 19,388,254 | 20,448,343 | 19,998,967 | 3.1 | (2.2 | ) | |||||||||||
Investment securities | 6,474,561 | 6,685,972 | 6,667,180 | 3.0 | (0.3 | ) | |||||||||||
Total borrowings | 4,991,210 | 4,825,855 | 5,214,183 | 4.5 | 8.0 | ||||||||||||
Loans to deposits | 97.4 | % | 95.7 | % | 90.6 | % | (680 | ) | (510 | ) | |||||||
Core deposits to total deposits | 94.4 | 95.3 | 94.3 | (10 | ) | (100 | ) | ||||||||||
Investment securities to total assets | 21.3 | 21.4 | 21.2 | (10 | ) | (20 | ) |
▪ | C&I loans (which include traditional C&I, asset-based lending, payroll finance, warehouse lending, factored receivables, equipment financing and public sector finance loans) represented 34.0% of total portfolio loans, commercial real estate loans (which include multi-family loans) represented 49.0%, consumer and residential mortgage loans combined represented 15.7%, and acquisition, development and construction loans represented 1.4% of total portfolio loans. In comparison, consumer and residential mortgage loans were 23.1% of total portfolio loans at September 30, 2018. The pending sale of $1.6 billion of residential mortgage loans resulted in the reclassification of these loans from portfolio loans to held for sale. Upon closure, this sale will have a significant impact on our loan portfolio composition. |
▪ | Total commercial loans, which include all C&I loans, commercial real estate (including multi-family) and acquisition, development and construction loans, increased by $413.3 million in the linked quarter and $1.6 billion since December 31, 2017. |
▪ | Residential mortgage loans were $2.7 billion at December 31, 2018, compared to $4.4 billion at September 30, 2018. The decline was mainly due to repayments of loans acquired in the Astoria Merger and the reclassification of $1.6 billion in loans to loans held for sale due to the pending sale. |
▪ | Total deposits at December 31, 2018 decreased $241.9 million compared to September 30, 2018, as municipal deposits reach their peak at the end of the third quarter. Total deposits increased $675.9 million over December 31, 2017. |
▪ | Core deposits at December 31, 2018 were $20.0 billion and increased $610.7 million over December 31, 2017. |
▪ | Municipal deposits at December 31, 2018 were $1.7 billion, and increased $190.8 million relative to December 31, 2017. |
▪ | Investment securities increased by $192.6 million over December 31, 2017, and represented 21.2% of total assets at December 31, 2018. |
($ in thousands) | For the three months ended | Change % / bps | |||||||||||||||
12/31/2017 | 9/30/2018 | 12/31/2018 | Y-o-Y | Linked Qtr | |||||||||||||
Provision for loan losses | $ | 12,000 | $ | 9,500 | $ | 10,500 | (12.5 | )% | 10.5 | % | |||||||
Net charge-offs | 6,221 | 4,161 | 6,188 | (0.5 | ) | 48.7 | |||||||||||
Allowance for loan losses | 77,907 | 91,365 | 95,677 | 22.8 | 4.7 | ||||||||||||
Non-performing loans | 187,213 | 185,222 | 168,823 | (9.8 | ) | (8.9 | ) | ||||||||||
Loans 30 to 89 days past due | 53,533 | 50,084 | 97,201 | 81.6 | 94.1 | ||||||||||||
Annualized net charge-offs to average loans | 0.13 | % | 0.08 | % | 0.12 | % | (1 | ) | 4 | ||||||||
Allowance for loan losses to total loans | 0.39 | 0.44 | 0.50 | 11 | 6 | ||||||||||||
Allowance for loan losses to non-performing loans | 41.6 | 49.3 | 56.7 | 1,510 | 740 |
($ in thousands, except share and per share data) | As of | Change % / bps | |||||||||||||||
12/31/2017 | 9/30/2018 | 12/31/2018 | Y-o-Y | Three months | |||||||||||||
Total stockholders’ equity | $ | 4,240,178 | $ | 4,438,303 | $ | 4,428,853 | 4.4 | % | (0.2 | )% | |||||||
Preferred stock | 139,220 | 138,627 | 138,423 | (0.6 | ) | (0.1 | ) | ||||||||||
Goodwill and other intangible assets | 1,733,082 | 1,745,181 | 1,742,578 | 0.5 | (0.1 | ) | |||||||||||
Tangible common stockholders’ equity | $ | 2,367,876 | $ | 2,554,495 | $ | 2,547,852 | 7.6 | (0.3 | ) | ||||||||
Common shares outstanding | 224,782,694 | 225,446,089 | 216,227,852 | (3.8 | ) | (4.1 | ) | ||||||||||
Book value per common share | $ | 18.24 | $ | 19.07 | $ | 19.84 | 8.8 | 4.0 | |||||||||
Tangible book value per common share 9 | 10.53 | 11.33 | 11.78 | 11.9 | 4.0 | ||||||||||||
Tangible common equity to tangible assets 9 | 8.27 | % | 8.65 | % | 8.60 | % | 33 | (5 | ) | ||||||||
Estimated Tier 1 leverage ratio - Company | 9.39 | 9.68 | 9.50 | 11 | (18 | ) | |||||||||||
Estimated Tier 1 leverage ratio - Bank | 10.10 | 10.10 | 9.94 | (16 | ) | (16 | ) | ||||||||||
9 See a reconciliation of non-GAAP financial measures beginning on page 17. |
12/31/2017 | 9/30/2018 | 12/31/2018 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 479,906 | $ | 533,984 | $ | 438,110 | |||||
Investment securities | 6,474,561 | 6,685,972 | 6,667,180 | ||||||||
Loans held for sale | 5,246 | 31,042 | 1,565,979 | ||||||||
Portfolio loans: | |||||||||||
Commercial and industrial (“C&I”) | 5,306,821 | 6,244,030 | 6,533,386 | ||||||||
Commercial real estate (including multi-family) | 8,998,419 | 9,284,657 | 9,406,541 | ||||||||
Acquisition, development and construction | 282,792 | 265,676 | 267,754 | ||||||||
Residential mortgage | 5,054,732 | 4,421,520 | 2,705,226 | ||||||||
Consumer | 366,219 | 317,331 | 305,623 | ||||||||
Total portfolio loans, gross | 20,008,983 | 20,533,214 | 19,218,530 | ||||||||
Allowance for loan losses | (77,907 | ) | (91,365 | ) | (95,677 | ) | |||||
Total portfolio loans, net | 19,931,076 | 20,441,849 | 19,122,853 | ||||||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank Stock, at cost | 284,112 | 351,455 | 369,690 | ||||||||
Accrued interest receivable | 94,098 | 109,377 | 107,111 | ||||||||
Premises and equipment, net | 321,722 | 289,794 | 264,194 | ||||||||
Goodwill | 1,579,891 | 1,609,772 | 1,613,033 | ||||||||
Other intangibles | 153,191 | 135,409 | 129,545 | ||||||||
Bank owned life insurance | 651,638 | 660,279 | 653,995 | ||||||||
Other real estate owned | 27,095 | 22,735 | 19,377 | ||||||||
Other assets | 357,005 | 389,597 | 432,240 | ||||||||
Total assets | $ | 30,359,541 | $ | 31,261,265 | $ | 31,383,307 | |||||
Liabilities: | |||||||||||
Deposits | $ | 20,538,204 | 21,456,057 | $ | 21,214,148 | ||||||
FHLB borrowings | 4,510,123 | 4,429,110 | 4,838,772 | ||||||||
Other borrowings | 30,162 | 22,888 | 21,338 | ||||||||
Senior notes | 278,209 | 200,972 | 181,130 | ||||||||
Subordinated notes | 172,716 | 172,885 | 172,943 | ||||||||
Mortgage escrow funds | 122,641 | 96,952 | 72,891 | ||||||||
Other liabilities | 467,308 | 444,098 | 453,232 | ||||||||
Total liabilities | 26,119,363 | 26,822,962 | 26,954,454 | ||||||||
Stockholders’ equity: | |||||||||||
Preferred stock | 139,220 | 138,627 | 138,423 | ||||||||
Common stock | 2,299 | 2,299 | 2,299 | ||||||||
Additional paid-in capital | 3,780,908 | 3,773,164 | 3,776,461 | ||||||||
Treasury stock | (58,039 | ) | (51,973 | ) | (213,935 | ) | |||||
Retained earnings | 401,956 | 694,861 | 791,550 | ||||||||
Accumulated other comprehensive (loss) | (26,166 | ) | (118,675 | ) | (65,945 | ) | |||||
Total stockholders’ equity | 4,240,178 | 4,438,303 | 4,428,853 | ||||||||
Total liabilities and stockholders’ equity | $ | 30,359,541 | $ | 31,261,265 | $ | 31,383,307 | |||||
Shares of common stock outstanding at period end | 224,782,694 | 225,446,089 | 216,227,852 | ||||||||
Book value per common share | $ | 18.24 | $ | 19.07 | $ | 19.84 | |||||
Tangible book value per common share1 | 10.53 | 11.33 | 11.78 | ||||||||
1 See reconciliation of non-GAAP financial measures beginning on page 17. |
For the Quarter Ended | For the Year Ended | ||||||||||||||||||
12/31/2017 | 9/30/2018 | 12/31/2018 | 12/31/2017 | 12/31/2018 | |||||||||||||||
Interest and dividend income: | |||||||||||||||||||
Loans and loan fees | $ | 234,452 | $ | 257,211 | $ | 260,417 | $ | 570,761 | $ | 1,006,496 | |||||||||
Securities taxable | 24,743 | 29,765 | 30,114 | 65,278 | 115,971 | ||||||||||||||
Securities non-taxable | 13,295 | 15,244 | 15,104 | 37,245 | 61,062 | ||||||||||||||
Other earning assets | 4,005 | 6,805 | 7,562 | 9,165 | 24,944 | ||||||||||||||
Total interest and dividend income | 276,495 | 309,025 | 313,197 | 682,449 | 1,208,473 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 22,305 | 35,974 | 41,450 | 56,110 | 130,096 | ||||||||||||||
Borrowings | 20,166 | 29,102 | 28,876 | 50,196 | 110,974 | ||||||||||||||
Total interest expense | 42,471 | 65,076 | 70,326 | 106,306 | 241,070 | ||||||||||||||
Net interest income | 234,024 | 243,949 | 242,871 | 576,143 | 967,403 | ||||||||||||||
Provision for loan losses | 12,000 | 9,500 | 10,500 | 26,000 | 46,000 | ||||||||||||||
Net interest income after provision for loan losses | 222,024 | 234,449 | 232,371 | 550,143 | 921,403 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Deposit fees and service charges | 7,236 | 6,333 | 6,511 | 17,128 | 26,830 | ||||||||||||||
Accounts receivable management / factoring commissions and other related fees | 5,133 | 5,595 | 6,480 | 17,803 | 22,772 | ||||||||||||||
Bank owned life insurance | 3,474 | 3,733 | 4,060 | 7,816 | 15,651 | ||||||||||||||
Loan commissions and fees | 2,995 | 4,142 | 4,066 | 11,637 | 16,181 | ||||||||||||||
Investment management fees | 2,103 | 1,943 | 1,901 | 2,928 | 7,790 | ||||||||||||||
Net (loss) on sale of securities | (70 | ) | (56 | ) | (4,886 | ) | (344 | ) | (10,788 | ) | |||||||||
(Loss) gain on sale of fixed assets | (1 | ) | — | — | (1 | ) | 11,800 | ||||||||||||
Other | 2,892 | 2,455 | 4,343 | 7,235 | 12,961 | ||||||||||||||
Total non-interest income | 23,762 | 24,145 | 22,475 | 64,202 | 103,197 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Compensation and benefits | 56,086 | 54,823 | 54,677 | 150,254 | 220,340 | ||||||||||||||
Stock-based compensation plans | 2,508 | 3,115 | 3,679 | 8,111 | 12,984 | ||||||||||||||
Occupancy and office operations | 18,100 | 16,558 | 16,579 | 43,649 | 68,536 | ||||||||||||||
Information technology | 11,984 | 10,699 | 8,761 | 19,387 | 41,174 | ||||||||||||||
Amortization of intangible assets | 6,426 | 5,865 | 5,865 | 13,008 | 23,646 | ||||||||||||||
FDIC insurance and regulatory assessments | 5,737 | 6,043 | 3,608 | 11,969 | 20,493 | ||||||||||||||
Other real estate owned, net | 742 | 1,497 | 15 | 3,423 | 1,650 | ||||||||||||||
Merger-related expenses | 30,230 | — | — | 39,232 | — | ||||||||||||||
Charge for asset write-downs, systems integration, retention and severance | 104,506 | — | — | 105,110 | 13,132 | ||||||||||||||
Other | 14,427 | 13,173 | 16,737 | 39,232 | 56,415 | ||||||||||||||
Total non-interest expense | 250,746 | 111,773 | 109,921 | 433,375 | 458,370 | ||||||||||||||
(Loss) income before income tax expense | (4,960 | ) | 146,821 | 144,925 | 180,970 | 566,230 | |||||||||||||
Income tax expense | 28,319 | 27,171 | 30,434 | 87,939 | 118,976 | ||||||||||||||
Net (loss) income | (33,279 | ) | 119,650 | 114,491 | 93,031 | 447,254 | |||||||||||||
Preferred stock dividend | 2,002 | 1,993 | 1,990 | 2,002 | 7,978 | ||||||||||||||
Net (loss) income available to common stockholders | $ | (35,281 | ) | $ | 117,657 | $ | 112,501 | $ | 91,029 | $ | 439,276 | ||||||||
Weighted average common shares: | |||||||||||||||||||
Basic | 223,501,073 | 225,088,511 | 222,319,682 | 157,513,639 | 224,299,488 | ||||||||||||||
Diluted | 224,055,991 | 225,622,895 | 222,769,369 | 158,124,270 | 224,816,996 | ||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic earnings per share | $ | (0.16 | ) | $ | 0.52 | $ | 0.51 | $ | 0.58 | $ | 1.96 | ||||||||
Diluted earnings per share | (0.16 | ) | 0.52 | 0.51 | 0.58 | 1.95 | |||||||||||||
Dividends declared per share | 0.07 | 0.07 | 0.07 | 0.28 | 0.28 |
As of and for the Quarter Ended | |||||||||||||||||||
End of Period | 12/31/2017 | 3/31/2018 | 6/30/2018 | 9/30/2018 | 12/31/2018 | ||||||||||||||
Total assets | $ | 30,359,541 | $ | 30,468,780 | $ | 31,463,077 | $ | 31,261,265 | $ | 31,383,307 | |||||||||
Tangible assets 1 | 28,626,459 | 28,741,750 | 29,708,659 | 29,516,084 | 29,640,729 | ||||||||||||||
Securities available for sale | 3,612,072 | 3,760,338 | 3,929,386 | 3,843,244 | 3,870,563 | ||||||||||||||
Securities held to maturity | 2,862,489 | 2,874,948 | 2,859,860 | 2,842,728 | 2,796,617 | ||||||||||||||
Loans held for sale2 | 5,246 | 44,440 | 30,626 | 31,042 | 1,565,979 | ||||||||||||||
Portfolio loans | 20,008,983 | 19,939,245 | 20,674,493 | 20,533,214 | 19,218,530 | ||||||||||||||
Goodwill | 1,579,891 | 1,579,891 | 1,613,144 | 1,609,772 | 1,613,033 | ||||||||||||||
Other intangibles | 153,191 | 147,139 | 141,274 | 135,409 | 129,545 | ||||||||||||||
Deposits | 20,538,204 | 20,623,233 | 20,965,889 | 21,456,057 | 21,214,148 | ||||||||||||||
Municipal deposits (included above) | 1,585,076 | 1,775,472 | 1,652,733 | 2,019,893 | 1,751,670 | ||||||||||||||
Borrowings | 4,991,210 | 4,927,594 | 5,537,537 | 4,825,855 | 5,214,183 | ||||||||||||||
Stockholders’ equity | 4,240,178 | 4,273,755 | 4,352,735 | 4,438,303 | 4,428,853 | ||||||||||||||
Tangible common equity 1 | 2,367,876 | 2,407,700 | 2,459,489 | 2,554,495 | 2,547,852 | ||||||||||||||
Quarterly Average Balances | |||||||||||||||||||
Total assets | 29,277,502 | 30,018,289 | 30,994,904 | 31,036,026 | 30,925,281 | ||||||||||||||
Tangible assets 1 | 27,567,351 | 28,287,337 | 29,237,608 | 29,283,093 | 29,179,942 | ||||||||||||||
Loans, gross: | |||||||||||||||||||
Commercial real estate (includes multi-family) | 8,839,256 | 9,028,849 | 9,100,098 | 9,170,117 | 9,341,579 | ||||||||||||||
Acquisition, development and construction | 246,141 | 267,638 | 247,500 | 252,710 | 279,793 | ||||||||||||||
Commercial and industrial: | |||||||||||||||||||
Traditional commercial and industrial | 1,911,450 | 1,933,323 | 2,026,313 | 2,037,195 | 2,150,644 | ||||||||||||||
Asset-based lending3 | 781,732 | 781,392 | 778,708 | 820,060 | 812,903 | ||||||||||||||
Payroll finance3 | 250,673 | 229,920 | 219,545 | 223,636 | 223,061 | ||||||||||||||
Warehouse lending3 | 564,593 | 495,133 | 731,385 | 857,280 | 690,277 | ||||||||||||||
Factored receivables3 | 224,966 | 217,865 | 224,159 | 220,808 | 267,986 | ||||||||||||||
Equipment financing3 | 677,271 | 689,493 | 1,140,803 | 1,158,945 | 1,147,269 | ||||||||||||||
Public sector finance3 | 480,800 | 653,344 | 725,675 | 784,260 | 828,153 | ||||||||||||||
Total commercial and industrial | 4,891,485 | 5,000,470 | 5,846,588 | 6,102,184 | 6,120,293 | ||||||||||||||
Residential mortgage | 5,168,622 | 4,977,191 | 4,801,595 | 4,531,922 | 4,336,083 | ||||||||||||||
Consumer | 372,981 | 361,752 | 344,183 | 330,061 | 311,475 | ||||||||||||||
Loans, total4 | 19,518,485 | 19,635,900 | 20,339,964 | 20,386,994 | 20,389,223 | ||||||||||||||
Securities (taxable) | 3,840,147 | 3,997,542 | 4,130,949 | 4,193,910 | 4,133,456 | ||||||||||||||
Securities (non-taxable) | 2,086,677 | 2,604,633 | 2,620,579 | 2,580,802 | 2,552,533 | ||||||||||||||
Other interest earning assets | 598,439 | 595,847 | 665,888 | 638,227 | 635,443 | ||||||||||||||
Total earning assets | 26,043,748 | 26,833,922 | 27,757,380 | 27,799,933 | 27,710,655 | ||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing demand | 4,043,213 | 3,971,079 | 3,960,683 | 4,174,908 | 4,324,247 | ||||||||||||||
Interest bearing demand | 3,862,461 | 3,941,749 | 4,024,972 | 4,286,278 | 4,082,526 | ||||||||||||||
Savings (including mortgage escrow funds) | 2,871,885 | 2,917,624 | 2,916,755 | 2,678,662 | 2,535,098 | ||||||||||||||
Money market | 7,324,196 | 7,393,335 | 7,337,904 | 7,404,208 | 7,880,331 | ||||||||||||||
Certificates of deposit | 2,382,102 | 2,464,360 | 2,528,355 | 2,571,298 | 2,530,226 | ||||||||||||||
Total deposits and mortgage escrow | 20,483,857 | 20,688,147 | 20,768,669 | 21,115,354 | 21,352,428 | ||||||||||||||
Borrowings | 4,121,605 | 4,597,903 | 5,432,582 | 5,052,752 | 4,716,522 | ||||||||||||||
Stockholders’ equity | 4,235,739 | 4,243,897 | 4,305,928 | 4,397,823 | 4,426,118 | ||||||||||||||
Tangible common equity 1 | 2,386,245 | 2,373,794 | 2,409,674 | 2,506,198 | 2,542,256 | ||||||||||||||
1 See a reconciliation of non-GAAP financial measures beginning on page 17. | |||||||||||||||||||
2At December 31, 2018 loans held for sale includes $1.6 billion of residential mortgage loans, net of purchase accounting discount. | |||||||||||||||||||
3 Asset-based lending, payroll finance, warehouse lending, factored receivables, equipment finance and public sector finance comprise our commercial finance loan portfolio. | |||||||||||||||||||
4 Includes loans held for sale, but excludes allowance for loan losses. |
As of and for the Quarter Ended | |||||||||||||||||||
Per Common Share Data | 12/31/2017 | 3/31/2018 | 6/30/2018 | 9/30/2018 | 12/31/2018 | ||||||||||||||
Basic earnings (loss) per share | $ | (0.16 | ) | $ | 0.43 | $ | 0.50 | $ | 0.52 | $ | 0.51 | ||||||||
Diluted earnings (loss) per share | (0.16 | ) | 0.43 | 0.50 | 0.52 | 0.51 | |||||||||||||
Adjusted diluted earnings per share, non-GAAP 1 | 0.39 | 0.45 | 0.50 | 0.51 | 0.52 | ||||||||||||||
Dividends declared per common share | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||||||||||
Book value per common share | 18.24 | 18.34 | 18.69 | 19.07 | 19.84 | ||||||||||||||
Tangible book value per common share1 | 10.53 | 10.68 | 10.91 | 11.33 | 11.78 | ||||||||||||||
Shares of common stock o/s | 224,782,694 | 225,466,266 | 225,470,254 | 225,446,089 | 216,227,852 | ||||||||||||||
Basic weighted average common shares o/s | 223,501,073 | 224,730,686 | 225,084,232 | 225,088,511 | 222,319,682 | ||||||||||||||
Diluted weighted average common shares o/s | 224,055,991 | 225,264,147 | 225,621,856 | 225,622,895 | 222,769,369 | ||||||||||||||
Performance Ratios (annualized) | |||||||||||||||||||
Return on average assets | (0.48 | )% | 1.31 | % | 1.45 | % | 1.50 | % | 1.44 | % | |||||||||
Return on average equity | (3.30 | ) | 9.26 | 10.46 | 10.61 | 10.08 | |||||||||||||
Return on average tangible assets | (0.51 | ) | 1.39 | 1.54 | 1.59 | 1.53 | |||||||||||||
Return on average tangible common equity | (5.87 | ) | 16.55 | 18.68 | 18.63 | 17.56 | |||||||||||||
Return on average tangible assets, adjusted 1 | 1.25 | 1.45 | 1.55 | 1.55 | 1.58 | ||||||||||||||
Return on avg. tangible common equity, adjusted 1 | 14.49 | 17.24 | 18.79 | 18.09 | 18.17 | ||||||||||||||
Operating efficiency ratio, as adjusted 1 | 41.4 | 40.3 | 38.3 | 38.9 | 38.0 | ||||||||||||||
Analysis of Net Interest Income | |||||||||||||||||||
Accretion income on acquired loans | $ | 33,726 | $ | 30,340 | $ | 28,010 | $ | 26,574 | $ | 27,016 | |||||||||
Yield on loans | 4.77 | % | 4.85 | % | 5.01 | % | 5.01 | % | 5.07 | % | |||||||||
Yield on investment securities - tax equivalent 2 | 3.03 | 2.85 | 2.88 | 2.87 | 2.92 | ||||||||||||||
Yield on interest earning assets - tax equivalent 2 | 4.32 | 4.31 | 4.47 | 4.47 | 4.54 | ||||||||||||||
Cost of interest bearing deposits | 0.54 | 0.59 | 0.68 | 0.84 | 0.97 | ||||||||||||||
Cost of total deposits | 0.43 | 0.47 | 0.55 | 0.68 | 0.77 | ||||||||||||||
Cost of borrowings | 1.94 | 2.01 | 2.23 | 2.29 | 2.43 | ||||||||||||||
Cost of interest bearing liabilities | 0.82 | 0.89 | 1.06 | 1.17 | 1.28 | ||||||||||||||
Net interest rate spread - tax equivalent basis 2 | 3.50 | 3.42 | 3.41 | 3.30 | 3.26 | ||||||||||||||
Net interest margin - GAAP basis | 3.57 | 3.54 | 3.56 | 3.48 | 3.48 | ||||||||||||||
Net interest margin - tax equivalent basis 2 | 3.67 | 3.60 | 3.62 | 3.54 | 3.53 | ||||||||||||||
Capital | |||||||||||||||||||
Tier 1 leverage ratio - Company 3 | 9.39 | % | 9.39 | % | 9.32 | % | 9.68 | % | 9.50 | % | |||||||||
Tier 1 leverage ratio - Bank only 3 | 10.10 | 10.00 | 9.84 | 10.10 | 9.94 | ||||||||||||||
Tier 1 risk-based capital ratio - Bank only 3 | 12.10 | 14.23 | 13.71 | 14.23 | 13.60 | ||||||||||||||
Total risk-based capital ratio - Bank only 3 | 13.20 | 15.51 | 14.94 | 15.50 | 14.85 | ||||||||||||||
Tangible equity to tangible assets - Company 1 | 8.27 | 8.38 | 8.28 | 8.65 | 8.60 | ||||||||||||||
Condensed Five Quarter Income Statement | |||||||||||||||||||
Interest and dividend income | $ | 276,495 | $ | 281,346 | $ | 304,906 | $ | 309,025 | $ | 313,197 | |||||||||
Interest expense | 42,471 | 46,976 | 58,690 | 65,076 | 70,326 | ||||||||||||||
Net interest income | 234,024 | 234,370 | 246,216 | 243,949 | 242,871 | ||||||||||||||
Provision for loan losses | 12,000 | 13,000 | 13,000 | 9,500 | 10,500 | ||||||||||||||
Net interest income after provision for loan losses | 222,024 | 221,370 | 233,216 | 234,449 | 232,371 | ||||||||||||||
Non-interest income | 23,762 | 18,707 | 37,868 | 24,145 | 22,475 | ||||||||||||||
Non-interest expense | 250,746 | 111,749 | 124,928 | 111,773 | 109,921 | ||||||||||||||
(Loss) income before income tax expense | (4,960 | ) | 128,328 | 146,156 | 146,821 | 144,925 | |||||||||||||
Income tax expense | 28,319 | 29,456 | 31,915 | 27,171 | 30,434 | ||||||||||||||
Net (loss) income | $ | (33,279 | ) | $ | 98,872 | $ | 114,241 | $ | 119,650 | $ | 114,491 | ||||||||
1 See a reconciliation of non-GAAP financial measures beginning on page 17. | |||||||||||||||||||
2 Tax equivalent basis represents interest income earned on tax exempt securities divided by the applicable Federal tax rate of 35% in 2017 and 21% in 2018. | |||||||||||||||||||
3 Regulatory capital amounts and ratios are preliminary estimates pending filing of the Company’s and Bank’s regulatory reports. |
As of and for the Quarter Ended | |||||||||||||||||||
Allowance for Loan Losses Roll Forward | 12/31/2017 | 3/31/2018 | 6/30/2018 | 9/30/2018 | 12/31/2018 | ||||||||||||||
Balance, beginning of period | $ | 72,128 | $ | 77,907 | $ | 82,092 | $ | 86,026 | $ | 91,365 | |||||||||
Provision for loan losses | 12,000 | 13,000 | 13,000 | 9,500 | 10,500 | ||||||||||||||
Loan charge-offs1: | |||||||||||||||||||
Traditional commercial & industrial | (4,570 | ) | (3,572 | ) | (1,831 | ) | (3,415 | ) | (452 | ) | |||||||||
Asset-based lending | — | — | — | — | (4,936 | ) | |||||||||||||
Payroll finance | — | — | (314 | ) | (2 | ) | (21 | ) | |||||||||||
Factored receivables | (110 | ) | (3 | ) | (160 | ) | (18 | ) | (23 | ) | |||||||||
Equipment financing | (1,343 | ) | (4,199 | ) | (2,477 | ) | (829 | ) | (1,060 | ) | |||||||||
Commercial real estate | (7 | ) | (1,353 | ) | (3,166 | ) | (359 | ) | (56 | ) | |||||||||
Multi-family | — | — | — | (168 | ) | (140 | ) | ||||||||||||
Acquisition development & construction | — | — | (721 | ) | — | — | |||||||||||||
Residential mortgage | (193 | ) | (39 | ) | (544 | ) | (114 | ) | (694 | ) | |||||||||
Consumer | (408 | ) | (125 | ) | (491 | ) | (458 | ) | (335 | ) | |||||||||
Total charge offs | (6,631 | ) | (9,291 | ) | (9,704 | ) | (5,363 | ) | (7,717 | ) | |||||||||
Recoveries of loans previously charged-off1: | |||||||||||||||||||
Traditional commercial & industrial | 164 | 214 | 225 | 235 | 404 | ||||||||||||||
Asset-based lending | — | — | 9 | — | — | ||||||||||||||
Payroll finance | 5 | 22 | 7 | 5 | 10 | ||||||||||||||
Factored receivables | — | 3 | 2 | 2 | 7 | ||||||||||||||
Equipment financing | 56 | 72 | 190 | 85 | 604 | ||||||||||||||
Commercial real estate | 46 | 16 | 74 | 612 | 185 | ||||||||||||||
Multi-family | — | 3 | — | 4 | 276 | ||||||||||||||
Residential mortgage | 2 | 15 | 34 | 5 | 11 | ||||||||||||||
Consumer | 137 | 131 | 97 | 254 | 32 | ||||||||||||||
Total recoveries | 410 | 476 | 638 | 1,202 | 1,529 | ||||||||||||||
Net loan charge-offs | (6,221 | ) | (8,815 | ) | (9,066 | ) | (4,161 | ) | (6,188 | ) | |||||||||
Balance, end of period | $ | 77,907 | $ | 82,092 | $ | 86,026 | $ | 91,365 | $ | 95,677 | |||||||||
Asset Quality Data and Ratios | |||||||||||||||||||
Non-performing loans (“NPLs”) non-accrual | $ | 186,357 | $ | 181,745 | $ | 178,626 | $ | 177,876 | $ | 166,400 | |||||||||
NPLs still accruing | 856 | 301 | 12,349 | 7,346 | 2,423 | ||||||||||||||
Total NPLs | 187,213 | 182,046 | 190,975 | 185,222 | 168,823 | ||||||||||||||
Other real estate owned | 27,095 | 24,493 | 20,264 | 22,735 | 19,377 | ||||||||||||||
Non-performing assets (“NPAs”) | $ | 214,308 | $ | 206,539 | $ | 211,239 | $ | 207,957 | $ | 188,200 | |||||||||
Loans 30 to 89 days past due | $ | 53,533 | $ | 59,818 | $ | 73,441 | $ | 50,084 | $ | 97,201 | |||||||||
Net charge-offs as a % of average loans (annualized) | 0.13 | % | 0.18 | % | 0.18 | % | 0.08 | % | 0.12 | % | |||||||||
NPLs as a % of total loans | 0.94 | 0.91 | 0.92 | 0.90 | 0.88 | ||||||||||||||
NPAs as a % of total assets | 0.71 | 0.68 | 0.67 | 0.67 | 0.60 | ||||||||||||||
Allowance for loan losses as a % of NPLs | 41.6 | 45.1 | 45.0 | 49.3 | 56.7 | ||||||||||||||
Allowance for loan losses as a % of total loans | 0.39 | 0.41 | 0.42 | 0.44 | 0.50 | ||||||||||||||
Special mention loans | $ | 136,558 | $ | 101,904 | $ | 119,718 | $ | 88,472 | $ | 113,180 | |||||||||
Substandard loans | 232,491 | 245,910 | 251,840 | 280,358 | 266,046 | ||||||||||||||
Doubtful loans | 764 | 968 | 856 | 2,219 | 59 | ||||||||||||||
1 There were no charge-offs or recoveries on warehouse lending or public sector finance loans during the periods presented. There were no acquisition development and construction recoveries during the periods presented. | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||
September 30, 2018 | December 31, 2018 | ||||||||||||||||||||
Average balance | Interest | Yield/Rate | Average balance | Interest | Yield/Rate | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Traditional C&I and commercial finance loans | $ | 6,102,184 | $ | 81,296 | 5.29 | % | $ | 6,120,293 | $ | 82,992 | 5.38 | % | |||||||||
Commercial real estate (includes multi-family) | 9,170,117 | 107,292 | 4.64 | 9,341,579 | 112,266 | 4.77 | |||||||||||||||
Acquisition, development and construction | 252,710 | 4,115 | 6.46 | 279,793 | 4,377 | 6.21 | |||||||||||||||
Commercial loans | 15,525,011 | 192,703 | 4.92 | 15,741,665 | 199,635 | 5.03 | |||||||||||||||
Consumer loans | 330,061 | 4,651 | 5.59 | 311,475 | 4,794 | 6.11 | |||||||||||||||
Residential mortgage loans | 4,531,922 | 59,857 | 5.28 | 4,336,083 | 55,989 | 5.16 | |||||||||||||||
Total gross loans 1 | 20,386,994 | 257,211 | 5.01 | 20,389,223 | 260,418 | 5.07 | |||||||||||||||
Securities taxable | 4,193,910 | 29,765 | 2.82 | 4,133,456 | 30,114 | 2.89 | |||||||||||||||
Securities non-taxable | 2,580,802 | 19,296 | 2.99 | 2,552,533 | 19,118 | 3.00 | |||||||||||||||
Interest earning deposits | 278,450 | 1,038 | 1.48 | 291,460 | 1,063 | 1.45 | |||||||||||||||
FHLB and Federal Reserve Bank Stock | 359,777 | 5,767 | 6.36 | 343,983 | 6,499 | 7.50 | |||||||||||||||
Total securities and other earning assets | 7,412,939 | 55,866 | 2.99 | 7,321,432 | 56,794 | 3.08 | |||||||||||||||
Total interest earning assets | 27,799,933 | 313,077 | 4.47 | 27,710,655 | 317,212 | 4.54 | |||||||||||||||
Non-interest earning assets | 3,236,093 | 3,214,626 | |||||||||||||||||||
Total assets | $ | 31,036,026 | $ | 30,925,281 | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Demand and savings 2 deposits | $ | 6,964,940 | $ | 11,368 | 0.65 | % | $ | 6,617,624 | $ | 11,513 | 0.69 | % | |||||||||
Money market deposits | 7,404,208 | 16,547 | 0.89 | 7,880,331 | 21,204 | 1.07 | |||||||||||||||
Certificates of deposit | 2,571,298 | 8,059 | 1.24 | 2,530,226 | 8,733 | 1.37 | |||||||||||||||
Total interest bearing deposits | 16,940,446 | 35,974 | 0.84 | 17,028,181 | 41,450 | 0.97 | |||||||||||||||
Senior notes | 201,894 | 1,619 | 3.21 | 183,499 | 1,600 | 3.49 | |||||||||||||||
Other borrowings | 4,678,011 | 25,129 | 2.13 | 4,360,118 | 24,921 | 2.27 | |||||||||||||||
Subordinated notes | 172,847 | 2,354 | 5.45 | 172,905 | 2,355 | 5.45 | |||||||||||||||
Total borrowings | 5,052,752 | 29,102 | 2.29 | 4,716,522 | 28,876 | 2.43 | |||||||||||||||
Total interest bearing liabilities | 21,993,198 | 65,076 | 1.17 | 21,744,703 | 70,326 | 1.28 | |||||||||||||||
Non-interest bearing deposits | 4,174,908 | 4,324,247 | |||||||||||||||||||
Other non-interest bearing liabilities | 470,097 | 430,213 | |||||||||||||||||||
Total liabilities | 26,638,203 | 26,499,163 | |||||||||||||||||||
Stockholders’ equity | 4,397,823 | 4,426,118 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 31,036,026 | $ | 30,925,281 | |||||||||||||||||
Net interest rate spread 3 | 3.30 | % | 3.26 | % | |||||||||||||||||
Net interest earning assets 4 | $ | 5,806,735 | $ | 5,965,952 | |||||||||||||||||
Net interest margin - tax equivalent | 248,001 | 3.54 | % | 246,886 | 3.53 | % | |||||||||||||||
Less tax equivalent adjustment | (4,052 | ) | (4,015 | ) | |||||||||||||||||
Net interest income | $ | 243,949 | $ | 242,871 | |||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 126.4 | % | 127.4 | % |
For the Quarter Ended | |||||||||||||||||||||
December 31, 2017 | December 31, 2018 | ||||||||||||||||||||
Average balance | Interest | Yield/Rate | Average balance | Interest | Yield/Rate | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Traditional C&I and commercial finance loans | $ | 4,891,485 | $ | 60,452 | 4.90 | % | $ | 6,120,293 | $ | 82,992 | 5.38 | % | |||||||||
Commercial real estate (includes multi-family) | 8,839,256 | 102,789 | 4.61 | 9,341,579 | 112,266 | 4.77 | |||||||||||||||
Acquisition, development and construction | 246,141 | 3,727 | 6.01 | 279,793 | 4,377 | 6.21 | |||||||||||||||
Commercial loans | 13,976,882 | 166,968 | 4.74 | 15,741,665 | 199,635 | 5.03 | |||||||||||||||
Consumer loans | 372,981 | 5,103 | 5.43 | 311,475 | 4,794 | 6.11 | |||||||||||||||
Residential mortgage loans | 5,168,622 | 62,381 | 4.83 | 4,336,083 | 55,989 | 5.16 | |||||||||||||||
Total gross loans 1 | 19,518,485 | 234,452 | 4.77 | 20,389,223 | 260,418 | 5.07 | |||||||||||||||
Securities taxable | 3,840,147 | 24,743 | 2.56 | 4,133,456 | 30,114 | 2.89 | |||||||||||||||
Securities non-taxable | 2,086,677 | 20,453 | 3.92 | 2,552,533 | 19,118 | 3.00 | |||||||||||||||
Interest earning deposits | 361,825 | 873 | 0.96 | 291,460 | 1,063 | 1.45 | |||||||||||||||
FHLB and Federal Reserve Bank stock | 236,614 | 3,132 | 5.25 | 343,983 | 6,499 | 7.50 | |||||||||||||||
Total securities and other earning assets | 6,525,263 | 49,201 | 2.99 | 7,321,432 | 56,794 | 3.08 | |||||||||||||||
Total interest earning assets | 26,043,748 | 283,653 | 4.32 | 27,710,655 | 317,212 | 4.54 | |||||||||||||||
Non-interest earning assets | 3,233,754 | 3,214,626 | |||||||||||||||||||
Total assets | $ | 29,277,502 | $ | 30,925,281 | |||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Demand and savings 2 deposits | $ | 6,734,346 | $ | 5,904 | 0.35 | $ | 6,617,624 | $ | 11,513 | 0.69 | |||||||||||
Money market deposits | 7,324,196 | 10,790 | 0.58 | 7,880,331 | 21,204 | 1.07 | |||||||||||||||
Certificates of deposit | 2,382,102 | 5,611 | 0.93 | 2,530,226 | 8,733 | 1.37 | |||||||||||||||
Total interest bearing deposits | 16,440,644 | 22,305 | 0.54 | 17,028,181 | 41,450 | 0.97 | |||||||||||||||
Senior notes | 276,051 | 2,759 | 4.00 | 183,499 | 1,600 | 3.49 | |||||||||||||||
Other borrowings | 3,672,874 | 15,055 | 1.63 | 4,360,118 | 24,921 | 2.27 | |||||||||||||||
Subordinated notes | 172,680 | 2,352 | 5.45 | 172,905 | 2,355 | 5.45 | |||||||||||||||
Total borrowings | 4,121,605 | 20,166 | 1.94 | 4,716,522 | 28,876 | 2.43 | |||||||||||||||
Total interest bearing liabilities | 20,562,249 | 42,471 | 0.82 | 21,744,703 | 70,326 | 1.28 | |||||||||||||||
Non-interest bearing deposits | 4,043,213 | 4,324,247 | |||||||||||||||||||
Other non-interest bearing liabilities | 436,301 | 430,213 | |||||||||||||||||||
Total liabilities | 25,041,763 | 26,499,163 | |||||||||||||||||||
Stockholders’ equity | 4,235,739 | 4,426,118 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 29,277,502 | $ | 30,925,281 | |||||||||||||||||
Net interest rate spread 3 | 3.50 | % | 3.26 | % | |||||||||||||||||
Net interest earning assets 4 | $ | 5,481,499 | $ | 5,965,952 | |||||||||||||||||
Net interest margin - tax equivalent | 241,182 | 3.67 | % | 246,886 | 3.53 | % | |||||||||||||||
Less tax equivalent adjustment | (7,158 | ) | (4,015 | ) | |||||||||||||||||
Net interest income | $ | 234,024 | $ | 242,871 | |||||||||||||||||
Ratio of interest earning assets to interest bearing liabilities | 126.7 | % | 127.4 | % |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 20. | |||||||||||||||||||
As of or for the Quarter Ended | |||||||||||||||||||
12/31/2017 | 3/31/2018 | 6/30/2018 | 9/30/2018 | 12/31/2018 | |||||||||||||||
The following table shows the reconciliation of stockholders’ equity to tangible common equity and the tangible common equity ratio1: | |||||||||||||||||||
Total assets | $ | 30,359,541 | $ | 30,468,780 | $ | 31,463,077 | $ | 31,261,265 | $ | 31,383,307 | |||||||||
Goodwill and other intangibles | (1,733,082 | ) | (1,727,030 | ) | (1,754,418 | ) | (1,745,181 | ) | (1,742,578 | ) | |||||||||
Tangible assets | 28,626,459 | 28,741,750 | 29,708,659 | 29,516,084 | 29,640,729 | ||||||||||||||
Stockholders’ equity | 4,240,178 | 4,273,755 | 4,352,735 | 4,438,303 | 4,428,853 | ||||||||||||||
Preferred stock | (139,220 | ) | (139,025 | ) | (138,828 | ) | (138,627 | ) | (138,423 | ) | |||||||||
Goodwill and other intangibles | (1,733,082 | ) | (1,727,030 | ) | (1,754,418 | ) | (1,745,181 | ) | (1,742,578 | ) | |||||||||
Tangible common stockholders’ equity | 2,367,876 | 2,407,700 | 2,459,489 | 2,554,495 | 2,547,852 | ||||||||||||||
Common stock outstanding at period end | 224,782,694 | 225,466,266 | 225,470,254 | 225,446,089 | 216,227,852 | ||||||||||||||
Common stockholders’ equity as a % of total assets | 13.51 | % | 13.57 | % | 13.39 | % | 13.75 | % | 13.67 | % | |||||||||
Book value per common share | $ | 18.24 | $ | 18.34 | $ | 18.69 | $ | 19.07 | $ | 19.84 | |||||||||
Tangible common equity as a % of tangible assets | 8.27 | % | 8.38 | % | 8.28 | % | 8.65 | % | 8.60 | % | |||||||||
Tangible book value per common share | $ | 10.53 | $ | 10.68 | $ | 10.91 | $ | 11.33 | $ | 11.78 | |||||||||
The following table shows the reconciliation of reported return on average tangible common equity and adjusted return on average tangible common equity2: | |||||||||||||||||||
Average stockholders’ equity | $ | 4,235,739 | $ | 4,243,897 | $ | 4,305,928 | $ | 4,397,823 | $ | 4,426,118 | |||||||||
Average preferred stock | (139,343 | ) | (139,151 | ) | (138,958 | ) | (138,692 | ) | (138,523 | ) | |||||||||
Average goodwill and other intangibles | (1,710,151 | ) | (1,730,952 | ) | (1,757,296 | ) | (1,752,933 | ) | (1,745,339 | ) | |||||||||
Average tangible common stockholders’ equity | 2,386,245 | 2,373,794 | 2,409,674 | 2,506,198 | 2,542,256 | ||||||||||||||
Net income (loss) available to common | (35,281 | ) | 96,873 | 112,245 | 117,657 | 112,501 | |||||||||||||
Net income (loss), if annualized | (139,974 | ) | 392,874 | 450,213 | 466,791 | 446,335 | |||||||||||||
Reported return on avg tangible common equity | (5.87 | )% | 16.55 | % | 18.68 | % | 18.63 | % | 17.56 | % | |||||||||
Adjusted net income (see reconciliation on page 18) | $ | 87,171 | $ | 100,880 | $ | 112,868 | $ | 114,273 | $ | 116,458 | |||||||||
Annualized adjusted net income | 345,840 | 409,124 | 452,712 | 453,366 | 462,034 | ||||||||||||||
Adjusted return on average tangible common equity | 14.49 | % | 17.24 | % | 18.79 | % | 18.09 | % | 18.17 | % | |||||||||
The following table shows the reconciliation of reported return on average tangible assets and adjusted return on average tangible assets3: | |||||||||||||||||||
Average assets | $ | 29,277,502 | $ | 30,018,289 | $ | 30,994,904 | $ | 31,036,026 | $ | 30,925,281 | |||||||||
Average goodwill and other intangibles | (1,710,151 | ) | (1,730,952 | ) | (1,757,296 | ) | (1,752,933 | ) | (1,745,339 | ) | |||||||||
Average tangible assets | 27,567,351 | 28,287,337 | 29,237,608 | 29,283,093 | 29,179,942 | ||||||||||||||
Net income (loss) available to common | (35,281 | ) | 96,873 | 112,245 | 117,657 | 112,501 | |||||||||||||
Net income (loss), if annualized | (139,974 | ) | 392,874 | 450,213 | 466,791 | 446,335 | |||||||||||||
Reported return on average tangible assets | (0.51 | )% | 1.39 | % | 1.54 | % | 1.59 | % | 1.53 | % | |||||||||
Adjusted net income (see reconciliation on page 18) | $ | 87,171 | $ | 100,880 | $ | 112,868 | $ | 114,273 | $ | 116,458 | |||||||||
Annualized adjusted net income | 345,840 | 409,124 | 452,712 | 453,366 | 462,034 | ||||||||||||||
Adjusted return on average tangible assets | 1.25 | % | 1.45 | % | 1.55 | % | 1.55 | % | 1.58 | % | |||||||||
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 20. | ||||||||||||||||||||
As of and for the Quarter Ended | ||||||||||||||||||||
12/31/2017 | 3/31/2018 | 6/30/2018 | 9/30/2018 | 12/31/2018 | ||||||||||||||||
The following table shows the reconciliation of the reported operating efficiency ratio and adjusted operating efficiency ratio4: | ||||||||||||||||||||
Net interest income | $ | 234,024 | $ | 234,370 | $ | 246,216 | $ | 243,949 | $ | 242,871 | ||||||||||
Non-interest income | 23,762 | 18,707 | 37,868 | 24,145 | 22,475 | |||||||||||||||
Total revenue | 257,786 | 253,077 | 284,084 | 268,094 | 265,346 | |||||||||||||||
Tax equivalent adjustment on securities | 7,158 | 4,070 | 4,094 | 4,052 | 4,015 | |||||||||||||||
Net loss on sale of securities | 70 | 5,421 | 425 | 56 | 4,886 | |||||||||||||||
Net (gain) on sale of fixed assets | — | — | (11,797 | ) | — | — | ||||||||||||||
Adjusted total revenue | 265,014 | 262,568 | 276,806 | 272,202 | 274,247 | |||||||||||||||
Non-interest expense | 250,746 | 111,749 | 124,928 | 111,773 | 109,921 | |||||||||||||||
Merger-related expense | (30,230 | ) | — | — | — | — | ||||||||||||||
Charge for asset write-downs, systems integration, retention and severance | (104,506 | ) | — | (13,132 | ) | — | — | |||||||||||||
Gain on extinguishment of borrowings | — | — | — | — | 172 | |||||||||||||||
Amortization of intangible assets | (6,426 | ) | (6,052 | ) | (5,865 | ) | (5,865 | ) | (5,865 | ) | ||||||||||
Adjusted non-interest expense | 109,584 | 105,697 | 105,931 | 105,908 | 104,228 | |||||||||||||||
Reported operating efficiency ratio | 97.3 | % | 44.2 | % | 44.0 | % | 41.7 | % | 41.4 | % | ||||||||||
Adjusted operating efficiency ratio | 41.4 | 40.3 | 38.3 | 38.9 | 38.0 | |||||||||||||||
The following table shows the reconciliation of reported net income (GAAP) and earnings per share to adjusted net income available to common stockholders (non-GAAP) and adjusted diluted earnings per share(non-GAAP)5: | ||||||||||||||||||||
(Loss) income before income tax expense | $ | (4,960 | ) | $ | 128,328 | $ | 146,156 | $ | 146,821 | $ | 144,925 | |||||||||
Income tax expense | 28,319 | 29,456 | 31,915 | 27,171 | 30,434 | |||||||||||||||
Net (loss) income (GAAP) | (33,279 | ) | 98,872 | 114,241 | 119,650 | 114,491 | ||||||||||||||
Adjustments: | ||||||||||||||||||||
Net loss on sale of securities | 70 | 5,421 | 425 | 56 | 4,886 | |||||||||||||||
Net (gain) on sale of fixed assets | — | — | (11,797 | ) | — | — | ||||||||||||||
(Gain) on extinguishment of debt | — | — | — | — | (172 | ) | ||||||||||||||
Merger-related expense | 30,230 | — | — | — | — | |||||||||||||||
Charge for asset write-downs, systems integration, retention and severance | 104,506 | — | 13,132 | — | — | |||||||||||||||
Amortization of non-compete agreements and acquired customer list intangible assets | 333 | 295 | 295 | 295 | 295 | |||||||||||||||
Total pre-tax adjustments | 135,139 | 5,716 | 2,055 | 351 | 5,009 | |||||||||||||||
Adjusted pre-tax income | 130,179 | 134,044 | 148,211 | 147,172 | 149,934 | |||||||||||||||
Adjusted income tax expense | (41,006 | ) | (31,165 | ) | (33,347 | ) | (30,906 | ) | (31,486 | ) | ||||||||||
Adjusted net income (non-GAAP) | 89,173 | 102,879 | 114,864 | 116,266 | 118,448 | |||||||||||||||
Preferred stock dividend | 2,002 | 1,999 | 1,996 | 1,993 | 1,990 | |||||||||||||||
Adjusted net income available to common stockholders (non-GAAP) | $ | 87,171 | $ | 100,880 | $ | 112,868 | $ | 114,273 | $ | 116,458 | ||||||||||
Weighted average diluted shares | 224,055,991 | 225,264,147 | 225,621,856 | 225,622,895 | 222,769,369 | |||||||||||||||
Reported diluted EPS (GAAP) | $ | (0.16 | ) | $ | 0.43 | $ | 0.50 | $ | 0.52 | $ | 0.51 | |||||||||
Adjusted diluted EPS (non-GAAP) | 0.39 | 0.45 | 0.50 | 0.51 | 0.52 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend beginning on page 20. | ||||||||
For the Year Ended December 31, | ||||||||
2017 | 2018 | |||||||
The following table shows the reconciliation of reported net income (GAAP) and earnings per share to adjusted net income available to common stockholders (non-GAAP) and adjusted diluted earnings per share (non-GAAP)5: | ||||||||
Income before income tax expense | $ | 180,970 | $ | 566,230 | ||||
Income tax expense | 87,939 | 118,976 | ||||||
Net income (GAAP) | 93,031 | 447,254 | ||||||
Adjustments: | ||||||||
Net loss on sale of securities | 344 | 10,788 | ||||||
Net loss (gain) on sale of fixed assets | 1 | (11,800 | ) | |||||
Merger-related expense | 39,232 | — | ||||||
Charge for asset write-downs, systems integration, retention and severance | 105,110 | 13,132 | ||||||
(Gain) on extinguishment of borrowings | — | (172 | ) | |||||
Amortization of non-compete agreements and acquired customer list intangible assets | 1,410 | 1,177 | ||||||
Total pre-tax adjustments | 146,097 | 13,125 | ||||||
Adjusted pre-tax income | 327,067 | 579,355 | ||||||
Adjusted income tax expense | (103,026 | ) | (121,732 | ) | ||||
Adjusted net income (non-GAAP) | $ | 224,041 | $ | 457,623 | ||||
Preferred stock dividend | 2,002 | 7,978 | ||||||
Adjusted net income available to common stockholders (non-GAAP) | $ | 222,039 | $ | 449,645 | ||||
Weighted average diluted shares | 158,124,270 | 224,816,996 | ||||||
Diluted EPS as reported (GAAP) | $ | 0.58 | $ | 1.95 | ||||
Adjusted diluted EPS (non-GAAP) | 1.40 | 2.00 |
The Company provides supplemental reporting of non-GAAP/adjusted financial measures as management believes this information is useful to investors. See legend below. | ||||||||
For the Year Ended December 31, | ||||||||
2017 | 2018 | |||||||
The following table shows the reconciliation of reported return on average tangible common equity and adjusted return on average tangible common equity2: | ||||||||
Average stockholders’ equity | $ | 2,498,512 | $ | 4,344,096 | ||||
Average preferred stock | (35,122 | ) | (138,829 | ) | ||||
Average goodwill and other intangibles | (999,333 | ) | (1,746,687 | ) | ||||
Average tangible common stockholders’ equity | 1,464,057 | 2,458,580 | ||||||
Net income available to common stockholders | $ | 91,029 | $ | 439,276 | ||||
Reported return on average tangible common equity | 6.22 | % | 17.87 | % | ||||
Adjusted net income available to common stockholders (see reconciliation on page #SectionPage#) | $ | 222,039 | $ | 449,645 | ||||
Adjusted return on average tangible common equity | 15.17 | % | 18.29 | % | ||||
The following table shows the reconciliation of reported return on avg tangible assets and adjusted return on avg tangible assets3: | ||||||||
Average assets | $ | 18,451,301 | $ | 30,746,916 | ||||
Average goodwill and other intangibles | (999,333 | ) | (1,746,687 | ) | ||||
Average tangible assets | 17,451,968 | 29,000,229 | ||||||
Net income available to common stockholders | 91,030 | 439,276 | ||||||
Reported return on average tangible assets | 0.52 | % | 1.51 | % | ||||
Adjusted net income available to common stockholders (see reconciliation on page 19) | $ | 222,039 | $ | 449,645 | ||||
Adjusted return on average tangible assets | 1.27 | % | 1.55 | % | ||||
The following table shows the reconciliation of the reported operating efficiency ratio and adjusted operating efficiency ratio4: | ||||||||
Net interest income | $ | 576,143 | $ | 967,403 | ||||
Non-interest income | 64,202 | 103,197 | ||||||
Total revenues | 640,345 | 1,070,600 | ||||||
Tax equivalent adjustment on securities | 20,054 | 16,231 | ||||||
Net loss on sale of securities | 344 | 10,788 | ||||||
Net loss (gain) on sale of fixed assets | 1 | (11,800 | ) | |||||
Adjusted total net revenue | 660,744 | 1,085,819 | ||||||
Non-interest expense | 433,375 | 458,370 | ||||||
Merger-related expense | (39,232 | ) | — | |||||
Charge for asset write-downs, retention and severance | (105,110 | ) | (13,132 | ) | ||||
Gain on extinguishment of borrowings | — | 172 | ||||||
Amortization of intangible assets | (13,008 | ) | (23,646 | ) | ||||
Adjusted non-interest expense | $ | 276,025 | $ | 421,764 | ||||
Reported operating efficiency ratio | 67.7 | % | 42.8 | % | ||||
Adjusted operating efficiency ratio | 41.8 | % | 38.8 | % |