HOUSTON and TUPELO, Miss., July 22, 2024 /PRNewswire/ -- Cadence Bank (NYSE:CADE) (the Company), today announced financial results for the quarter ended June 30, 2024.

Cadence Bank (NYSE:<a class= CADE) is a leading regional banking franchise with approximately $50 billion in assets and over 350 branch locations across the South and Texas. (PRNewsfoto/Cadence Bank)" alt="Cadence Bank (NYSE:CADE) is a leading regional banking franchise with approximately $50 billion in assets and over 350 branch locations across the South and Texas. (PRNewsfoto/Cadence Bank)">

Highlights for the second quarter of 2024 included:

Reported quarterly net income available to common shareholders of $135.1 million, or $0.73 per diluted common share, and adjusted net income from continuing operations available to common shareholders,⁽¹⁾ which excludes non-routine income and expenses,⁽²⁾ of $127.9 million, or $0.69 per diluted common share, which represents an increase of $0.07 per share, or 11.3%, compared to the first quarter of 2024 adjusted net income from continuing operations available to common shareholders.⁽¹⁾
Achieved record adjusted pre-tax pre-provision net revenue from continuing operations (PPNR)⁽¹⁾ of $190.9 million, up $16.7 million from the prior quarter, and up $31.4 million from the same quarter one year ago. Year-to-date, adjusted PPNR⁽¹⁾ is $365.1 million, up $35.9 million or 11.0%, from the same period in 2023.
Generated net organic loan growth of $430.2 million, or 5.3% on an annualized basis, for the second quarter of 2024. Year-to-date, net loan growth was $815.8 million or 5.0% annualized.
Grew core customer deposits, which exclude brokered deposits and public funds, by $237.4 million, or 2.9% on an annualized basis. Year-to-date, core customer deposits have grown $637.2 or 4.0% annualized.
Continued improvement in net interest margin by 5 basis points to 3.27%, benefiting from continued loan growth, stabilized funding costs, and upward repricing of earning assets.
Experienced stable credit quality reflected by a flat linked quarter provision for credit losses and relatively stable net charge-offs as well as slight reductions in both nonperforming and criticized/classified loan levels.
Materially enhanced operating efficiency reflected in an improvement in the adjusted efficiency ratio⁽¹⁾ of 339 basis points to 56.7%.
Repurchased 256,033 shares of Company common stock during the second quarter at a weighted average price of $26.97 per share; regulatory capital remained strong with Common Equity Tier 1 Capital of 11.9% and Total Capital of 14.2%.

"We are pleased to report another quarter of improved financial performance in virtually every aspect of our business," remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. "Our second quarter results reflect steady loan and core customer deposit growth combined with stable funding costs, which led to additional improvement in our net interest margin. Importantly, our credit quality metrics remained stable, reflected by a flat linked quarter provision for credit losses and slight improvement in our past due loans as well as criticized and classified loans. Finally, our efforts to improve efficiency continue to be evident in the linked quarter decline in adjusted noninterest expense and continued improvement in our adjusted efficiency ratio to 56.7% in the second quarter."

Earnings Summary

All adjusted financial results discussed herein are adjusted results from continuing operations.⁽³⁾

For the second quarter of 2024, the Company reported net income available to common shareholders of $135.1 million, or $0.73 per diluted common share, up from $111.7 million, or $0.61 per diluted common share, for the second quarter of 2023 and $114.6 million, or $0.62 per diluted common share, for the first quarter of 2024. Adjusted net income available to common shareholders from continuing operations⁽¹⁾ increased to $127.9 million, or $0.69 per diluted common share, for the second quarter of 2024, compared with $110.1 million, or $0.60 per diluted common share, for the second quarter of 2023 and $114.4 million, or $0.62 per diluted common share, for the first quarter of 2024.

Additionally, the Company reported adjusted PPNR from continuing operations⁽¹⁾ of $190.9 million, or 1.59% of average assets on an annualized basis, for the second quarter of 2024, an increase of $16.7 million, or 9.6%, compared to the first quarter of 2024, and an increase of $31.4 million or 19.7% compared to the same quarter of 2023. These notable increases in financial performance were driven by improved operating efficiency, improved net interest margin, and continued improvement in earning asset mix.

Net Interest Revenue

Net interest revenue, driven by continued improvement in net interest margin, increased to $356.3 million for the second quarter of 2024, compared to $333.5 million for the second quarter of 2023 and $353.9 million for the first quarter of 2024. The net interest margin (fully taxable equivalent) improved to 3.27% for the second quarter of 2024, compared with 3.03% for the second quarter of 2023 and 3.22% for the first quarter of 2024.

Net interest revenue increased $2.4 million, or 0.7%, compared to the first quarter of 2024 as the Company continues to benefit from slowing pressure on funding costs as well as an improved earning asset mix resulting from continued deployment of excess liquidity and net loan growth. Purchase accounting accretion revenue was $3.0 million and $3.5 million for the second quarter of 2024 and the first quarter of 2024, respectively. Average earning assets declined slightly to $43.9 billion, as growth in average loans was offset by lower average investment securities and excess cash.

Yield on net loans, loans held for sale, and leases excluding accretion, was 6.56% for the second quarter of 2024, up 10 basis points from 6.46% for the first quarter of 2024. Investment securities yielded 3.19% in the second quarter of 2024, up 6 basis points from 3.13% in the first quarter of 2024, and up 106 basis points from 2.13% in the second quarter of 2023, reflective of the securities restructurings that occurred in 2023. As a result, the yield on total interest earning assets increased to 5.90% for the second quarter of 2024, up 10 basis points from 5.80% for the first quarter of 2024.

The average cost of total deposits was 2.53% for the second quarter of 2024, up 8 basis points compared to the first quarter of 2024. The second quarter increase in total deposit costs was the lowest quarterly increase cycle-to-date. Total interest-bearing liabilities cost was 3.45% for the second quarter of 2024 compared to 3.40% for the first quarter of 2024.

Balance Sheet Activity

Loans and leases, net of unearned income, increased $430.2 million during the second quarter, or 5.3% annualized to $33.3 billion. The loan growth for the quarter was in the commercial and industrial, income-producing commercial real estate and residential mortgage portfolios.

Total deposits were $37.9 billion as of June 30, 2024, a decline of $261.6 million from the prior quarter. The second quarter's decline included a $50.0 million reduction in brokered deposits to $452.2 million, and a decline of $449.0 million in public funds to $4.3 billion at June 30, 2024. Importantly, core customer deposits, which excludes brokered deposits and public funds, reflected organic growth of approximately $237.4 million compared to March 31, 2024.

The June 30, 2024 loan to deposit ratio was 88.0% and securities to total assets was 16.5%, reflecting continued strong liquidity. Noninterest bearing deposits represented 22.7% of total deposits at the end of the second quarter of 2024, down slightly from 23.1% at March 31, 2024, as the pace of migration to interest bearing products continued to slow.

Total investment securities declined $0.4 billion during the quarter to $7.9 billion at June 30, 2024. Cash, due from balances and deposits at the Federal Reserve declined $0.4 billion to $2.6 billion at June 30, 2024, as the Company continues to utilize securities portfolio cash flow and excess liquidity to fund loan growth and reduce reliance on higher cost funding.

In June 2024, the Company called $138.9 million in fixed-to-floating subordinated debt at par. This debt was yielding 5.65%; however, was set to reprice to a weighted-average rate of SOFR+3.76% after the June call date. This debt repayment is estimated to be positive to earnings by approximately $5.0 million pre-tax over the next 12 months.

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

Net charge-offs for the second quarter of 2024 were $22.6 million, or 0.28% of average net loans and leases on an annualized basis, compared with net charge-offs of $12.7 million, or 0.16% of average net loans and leases on an annualized basis, for the second quarter of 2023 and net charge-offs of $19.5 million, or 0.24% of average net loans and leases on an annualized basis, for the first quarter of 2024. The provision for credit losses for the second quarter of 2024 was $22.0 million, compared with $15.0 million for the second quarter of 2023 and $22.0 million for the first quarter of 2024. The allowance for credit losses of $470.0 million at June 30, 2024 declined slightly to 1.41% of total loans and leases compared to 1.44% of total loans and leases at March 31, 2024.

Total nonperforming assets as a percent of total assets were 0.46% at June 30, 2024 compared to 0.33% at June 30, 2023 and 0.51% at March 31, 2024. Total nonperforming loans and leases as a percent of loans and leases, net were 0.65% at June 30, 2024, compared to 0.48% at June 30, 2023 and 0.73% at March 31, 2024. Other real estate owned and other repossessed assets was $4.8 million at June 30, 2024 compared to the June 30, 2023 balance of $2.9 million and the March 31, 2024 balance of $5.3 million. For the second quarter of 2024, criticized and classified loans were relatively stable. Criticized loans represented 2.51% of loans at June 30, 2024 compared to 2.74% at June 30, 2023 and 2.64% at March 31, 2024, while classified loans were 2.09% at June 30, 2024 compared to 1.90% at June 30, 2023 and 2.19% at March 31, 2024.

Noninterest Revenue

Noninterest revenue was $100.7 million for the second quarter of 2024 compared with $86.7 million for the second quarter of 2023 and $83.8 million for the first quarter of 2024. Adjusted noninterest revenue⁽¹⁾ for the second quarter of 2024 was $85.7 million, compared with $86.6 million for the second quarter of 2023 and $83.8 million for the first quarter of 2024. Adjusted noninterest revenue⁽¹⁾ for the second quarter of 2024 excludes a gain of $15.0 million associated with the sale of businesses, primarily related to the sale of Cadence Business Solutions, LLC during the second quarter of 2024 (see Key Transactions below).

Wealth management revenue increased to $24.0 million for the second quarter of 2024, compared with $22.8 million for the first quarter of 2024. The second quarter 2024 increase was driven by asset management and trust revenue as well as retail brokerage.

Credit card, debit card and merchant fee revenue was $12.8 million for the second quarter of 2024, up slightly from $12.2 million for the first quarter of 2024. Deposit service charge revenue was $17.7 million for the second quarter of 2024 compared to $18.3 million for the first quarter of 2024 due to seasonality. Other noninterest revenue was $40.1 million for the second quarter of 2024, increased from $24.0 million for the first quarter of 2024. Other noninterest revenue for the second quarter of 2024 included the $15.0 million gain on sale of businesses as well as an increase of $3.1 million in partnership income as a result of improved SBIC investment valuations.

Mortgage production and servicing revenue totaled $7.2 million for the second quarter of 2024, compared with $6.8 million for the second quarter of 2023 and $6.5 million for the first quarter of 2024. The net MSR valuation adjustment was a negative $1.0 million for the second quarter of 2024, compared with a positive $1.5 million for the second quarter of 2023 and an insignificant adjustment for the first quarter of 2024. Mortgage origination volume for the second quarter of 2024 was $758.4 million, compared with $848.9 million for the second quarter of 2023 and $437.2 million for the first quarter of 2024.

Noninterest Expense

Noninterest expense for the second quarter of 2024 was $256.7 million, compared with $267.5 million for the second quarter of 2023 and $263.2 million for the first quarter of 2024. Adjusted noninterest expense⁽¹⁾ for the second quarter of 2024 was $251.1 million, compared with $260.6 million for the second quarter of 2023 and $263.5 million for the first quarter of 2024. Adjusted noninterest expense for the second quarter of 2024 excludes a $1.1 million gain on the extinguishment of debt as well as a charge of $6.3 million related to the FDIC deposit insurance special assessment. The adjusted efficiency ratio⁽¹⁾ was 56.7% for the second quarter of 2024, meaningfully improved from both 60.1% for the first quarter of 2024 and 61.9% for the second quarter of 2023.

The $12.4 million, or 4.7%, linked quarter decline in adjusted noninterest expense⁽¹⁾ was driven by declines in salaries and employee benefits expense as well as other noninterest expense, partially offset by a seasonal increase in advertising and public relations. Salaries and employee benefits declined $8.6 million compared to the first quarter of 2024 due primarily to lower compensation costs, increased deferred compensation related to loan originations, and anticipated seasonal reductions in payroll taxes and 401k match. Other noninterest expense declined $5.3 million compared to the first quarter of 2024. This decline included decreases in a number of expense items including recoveries in legal costs and operational losses as well as lower other miscellaneous expenses.

Capital Management

Total shareholders' equity was $5.3 billion at June 30, 2024 compared with $4.5 billion at June 30, 2023 and $5.2 billion at March 31, 2024. Estimated regulatory capital ratios at June 30, 2024 included Common Equity Tier 1 capital of 11.9%, Tier 1 capital of 12.3%, Total risk-based capital of 14.2%, and Tier 1 leverage capital of 9.7%. During the second quarter of 2024, the Company repurchased 256,033 shares of Company common stock at an average price of $26.97. The company has 9.1 million shares remaining on its current share repurchase authorization, which expires on December 31, 2024. Outstanding common shares were 182.4 million as of June 30, 2024.

Summary

Rollins concluded, "We are very proud of the accomplishments the Company has reported over the first half of 2024. We announced back-to-back quarters reflecting strong operating performance driven by organic growth in loans, increases in our net interest margin, increased operating leverage and stable credit quality, all backed by strong capital and liquidity. Our Company is driven and committed to taking care of our customers, our teammates and the communities we serve."

Key Transactions

Effective May 17, 2024, the Company completed the sale of Cadence Business Solutions, its payroll processing business unit, resulting in a net gain on sale of approximately $12 million. The impact on both revenues and expenses is not material. The payroll processing unit had previously been part of Cadence Insurance, Inc., prior to its sale in November 2023.

Effective November 30, 2023, the Company completed the sale of its insurance subsidiary, Cadence Insurance, to Arthur J. Gallagher & Co. for approximately $904 million. The Transaction resulted in net capital creation of approximately $625 million, including a net gain on sale of approximately $525 million. The gain along with Cadence Insurance's historical financial results for periods prior to the divestiture have been reflected in the consolidated financial statements as discontinued operations. Additionally, current and prior period adjusted earnings exclude the impact of discontinued operations.

Conference Call and Webcast

The Company will conduct a conference call to discuss its second quarter 2024 financial results on July 23, 2024, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing http://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.

About Cadence Bank

Cadence Bank (NYSE:CADE) is a leading regional banking franchise with approximately $50 billion in assets and more than 350 branch locations across the South and Texas. Cadence provides consumers, businesses and corporations with a full range of innovative banking and financial solutions. Services and products include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, equipment financing, correspondent banking, SBA lending, foreign exchange, wealth management, investment and trust services, financial planning, and retirement plan management. Cadence is committed to a culture of respect, diversity and inclusion in both its workplace and communities. Cadence Bank, Member FDIC. Equal Housing Lender.

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

(2) See Table 14 for detail on non-routine income and expenses.

(3) Given the sale of Cadence Insurance, Inc. ("Cadence Insurance") in the fourth quarter of 2023, the financial results presented consist of both continuing operations and discontinued operations. The discontinued operations include the financial results of Cadence Insurance prior to the sale, as well as the associated gain on sale in the fourth quarter of 2023. The discontinued operations are presented as a single line item below income from continuing operations and as separate lines in the balance sheet in the accompanying tables for all periods presented.

Forward-Looking Statements

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

Risks, uncertainties and other factors the Company may face include, without limitation: general economic, unemployment, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies, including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends or coupons on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating Rate Subordinated Notes due November 20, 2029; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements; the costs and expenses to comply with such changes; the enforcement efforts of federal and state bank regulators; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers. The Company also faces risks from natural disasters or acts of war or terrorism; international or political instability, including the impacts related to or resulting from Russia's military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.

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

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors," and in the Company's Current Reports on Form 8-K.

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

Table 1 Selected Financial Data (Unaudited)

	Quarter Ended					Year-to-date
(In thousands)	Jun 2024	Mar 2024	Dec 2023	Sep 2023	Jun 2023	Jun 2024	Jun 2023
Earnings Summary:
Interest revenue	$ 642,210	$ 637,113	$ 615,187	$ 595,459	$ 573,395	$ 1,279,323	$ 1,099,521
Interest expense	285,892	283,205	280,582	266,499	239,868	569,097	411,730
Net interest revenue	356,318	353,908	334,605	328,960	333,527	710,226	687,791
Provision for credit losses	22,000	22,000	38,000	17,000	15,000	44,000	25,000
Net interest revenue, after provision for credit losses	334,318	331,908	296,605	311,960	318,527	666,226	662,791
Noninterest revenue	100,658	83,786	(311,460)	73,989	86,664	184,444	121,127
Noninterest expense	256,697	263,207	329,367	274,442	267,466	519,904	552,113
Income (loss) from continuing operations before income taxes	178,279	152,487	(344,222)	111,507	137,725	330,766	231,805
Income tax expense (benefit)	40,807	35,509	(80,485)	24,355	30,463	76,316	51,536
Income (loss) from continuing operations	137,472	116,978	(263,737)	87,152	107,262	254,450	180,269
Income from discontinued operations, net of taxes	—	—	522,801	5,431	6,766	—	10,388
Net income	137,472	116,978	259,064	92,583	114,028	254,450	190,657
Less: Preferred dividends	2,372	2,372	2,372	2,372	2,372	4,744	4,744
Net income available to common shareholders	$ 135,100	$ 114,606	$ 256,692	$ 90,211	$ 111,656	$ 249,706	$ 185,913

Balance Sheet - Period End Balances
Total assets	$ 47,984,078	$ 48,313,863	$ 48,934,510	$ 48,523,010	$ 48,838,660	$ 47,984,078	$ 48,838,660
Total earning assets	43,525,688	43,968,692	44,192,887	43,727,058	44,010,411	43,525,688	44,010,411
Available for sale securities	7,921,422	8,306,589	8,075,476	9,643,231	10,254,580	7,921,422	10,254,580
Loans and leases, net of unearned income	33,312,773	32,882,616	32,497,022	32,520,593	32,556,708	33,312,773	32,556,708
Allowance for credit losses (ACL)	470,022	472,575	468,034	446,859	466,013	470,022	466,013
Net book value of acquired loans	5,543,419	6,011,007	6,353,344	6,895,487	7,357,174	5,543,419	7,357,174
Unamortized net discount on acquired loans	20,874	23,715	26,928	30,761	37,000	20,874	37,000
Total deposits	37,858,659	38,120,226	38,497,137	38,335,878	38,701,669	37,858,659	38,701,669
Total deposits and repurchase agreements	37,913,693	38,214,616	38,948,653	39,198,467	39,492,427	37,913,693	39,492,427
Other short-term borrowings	3,500,000	3,500,000	3,500,000	3,500,223	3,500,226	3,500,000	3,500,226
Subordinated and long-term debt	269,353	430,123	438,460	449,323	449,733	269,353	449,733
Total shareholders' equity	5,287,758	5,189,932	5,167,843	4,395,257	4,485,850	5,287,758	4,485,850
Total shareholders' equity, excluding AOCI ⁽¹⁾	6,070,220	5,981,265	5,929,672	5,705,178	5,648,925	6,070,220	5,648,925
Common shareholders' equity	5,120,765	5,022,939	5,000,850	4,228,264	4,318,857	5,120,765	4,318,857
Common shareholders' equity, excluding AOCI⁽¹⁾	$ 5,903,227	$ 5,814,272	$ 5,762,679	$ 5,538,185	$ 5,481,932	$ 5,903,227	$ 5,481,932

Balance Sheet - Average Balances
Total assets	$ 48,192,719	$ 48,642,540	$ 48,444,176	$ 48,655,138	$ 49,067,121	$ 48,417,630	$ 48,860,807
Total earning assets	43,851,822	44,226,077	43,754,664	44,003,639	44,229,519	44,038,950	44,024,558
Available for sale securities	8,033,552	8,269,708	9,300,714	10,004,441	10,655,791	8,151,630	11,003,194
Loans and leases, net of unearned income	32,945,526	32,737,574	32,529,030	32,311,572	31,901,096	32,841,550	31,399,156
Total deposits	38,100,087	38,421,272	38,215,379	38,465,975	38,934,793	38,260,680	38,919,505
Total deposits and repurchase agreements	38,165,908	38,630,620	38,968,397	39,293,030	39,708,963	38,398,265	39,670,703
Other short-term borrowings	3,500,000	3,500,000	3,503,320	3,510,942	3,541,985	3,500,000	3,434,688
Subordinated and long-term debt	404,231	434,579	443,251	449,568	455,617	419,405	458,982
Total shareholders' equity	5,207,254	5,194,048	4,507,343	4,505,162	4,539,353	5,200,651	4,468,302
Common shareholders' equity	$ 5,040,261	$ 5,027,055	$ 4,340,350	$ 4,338,169	$ 4,372,360	$ 5,033,658	$ 4,301,309

Nonperforming Assets:
Nonperforming loans and leases (NPL) ^{(2) (3)}	216,746	241,007	216,141	150,038	157,243	216,746	157,243
Other real estate owned and other assets	4,793	5,280	6,246	2,927	2,857	4,793	2,857
Nonperforming assets (NPA)	$ 221,539	$ 246,287	$ 222,387	$ 152,965	$ 160,100	$ 221,539	$ 160,100

(1)	Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26.
(2)	At June 30, 2024, $71.4 million of NPL is covered by government guarantees from the SBA, FHA, VA or USDA. Refer to Table 7 on page 13 for related information.
(3)	At June 30, 2024, NPL does not include nonperforming loans held for sale of $2.7 million.

Table 2 Selected Financial Ratios

	Quarter Ended					Year-to-date
	Jun 2024	Mar 2024	Dec 2023	Sep 2023	Jun 2023	Jun 2024	Jun 2023
Financial Ratios and Other Data:
Return on average assets from continuing operations ⁽²⁾	1.15 %	0.97 %	(2.16) %	0.71 %	0.88 %	1.06 %	0.74 %
Return on average assets ⁽²⁾	1.15 %	0.97 %	2.12 %	0.75 %	0.93 %	1.06 %	0.79 %
Adjusted return on average assets from continuing operations⁽¹⁾⁽²⁾	1.09	0.97	0.62	0.82	0.92	1.03	0.97
Return on average common shareholders' equity from continuing operations ⁽²⁾	10.78	9.17	(24.32)	7.75	9.62	9.98	8.23
Return on average common shareholders' equity ⁽²⁾	10.78	9.17	23.46	8.25	10.24	9.98	8.72
Adjusted return on average common shareholders' equity from continuing operations⁽¹⁾⁽²⁾	10.21	9.15	6.65	8.93	10.10	9.68	10.82
Return on average tangible common equity from continuing operations⁽¹⁾⁽²⁾	15.18	12.94	(36.79)	11.75	14.55	14.07	12.56
Return on average tangible common equity⁽¹⁾⁽²⁾	15.18	12.94	35.49	12.50	15.49	14.07	13.30
Adjusted return on average tangible common equity from continuing operations ⁽¹⁾⁽²⁾	14.37	12.92	10.06	13.53	15.27	13.65	16.52
Pre-tax pre-provision net revenue from continuing operation to total average assets ⁽¹⁾⁽²⁾	1.67	1.44	(2.51)	1.05	1.25	1.56	1.06
Adjusted pre-tax pre-provision net revenue from continuing operations to total average assets ⁽¹⁾⁽²⁾	1.59	1.44	1.13	1.18	1.30	1.52	1.36
Net interest margin-fully taxable equivalent	3.27	3.22	3.04	2.98	3.03	3.25	3.16
Net interest rate spread-fully taxable equivalent	2.45	2.40	2.25	2.21	2.29	2.42	2.46
Efficiency ratio fully tax equivalent ⁽¹⁾	56.09	60.05	NM	67.93	63.49	58.03	68.08
Adjusted efficiency ratio fully tax equivalent⁽¹⁾	56.73	60.12	66.01	64.35	61.87	58.42	61.58
Loan/deposit ratio	87.99 %	86.26 %	84.41 %	84.83 %	84.12 %	87.99 %	84.12 %
Full time equivalent employees	5,290	5,322	5,333	6,160	6,479	5,290	6,479

Credit Quality Ratios:
Net charge-offs to average loans and leases⁽²⁾	0.28 %	0.24 %	0.29 %	0.42 %	0.16 %	0.26 %	0.09 %
Provision for credit losses to average loans and leases ⁽²⁾	0.27	0.27	0.46	0.21	0.19	0.27	0.16
ACL to loans and leases, net	1.41	1.44	1.44	1.37	1.43	1.41	1.43
ACL to NPL	216.85	196.08	216.54	297.83	296.36	216.85	296.36
NPL to loans and leases, net	0.65	0.73	0.67	0.46	0.48	0.65	0.48
NPA to total assets	0.46	0.51	0.45	0.32	0.33	0.46	0.33

Equity Ratios:
Total shareholders' equity to total assets	11.02 %	10.74 %	10.56 %	9.06 %	9.19 %	11.02 %	9.19 %
Total common shareholders' equity to total assets	10.67	10.40	10.22	8.71	8.84	10.67	8.84
Tangible common shareholders' equity to tangible assets⁽¹⁾	7.87	7.60	7.44	5.86	6.00	7.87	6.00
Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI ⁽¹⁾	9.40	9.13	8.90	8.41	8.25	9.40	8.25

Capital Adequacy ⁽³⁾:
Common Equity Tier 1 capital	11.9 %	11.7 %	11.6 %	10.3 %	10.1 %	11.9 %	10.1 %
Tier 1 capital	12.3	12.2	12.1	10.8	10.5	12.3	10.5
Total capital	14.2	14.5	14.3	12.9	12.7	14.2	12.7
Tier 1 leverage capital	9.7	9.5	9.3	8.6	8.5	9.7	8.5

(1)	Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 - 26.
(2)	Annualized.
(3)	Current quarter regulatory capital ratios are estimated.
NM - Not meaningful

Table 3 Selected Financial Information

	Quarter Ended					Year-to-date
	Jun 2024	Mar 2024	Dec 2023	Sep 2023	Jun 2023	Jun 2024	Jun 2023
Common Share Data:
Diluted earnings (losses) per share from continuing operations	$ 0.73	$ 0.62	$ (1.46)	$ 0.46	$ 0.57	$ 1.35	$ 0.96
Adjusted earnings per share from continuing operations ⁽¹⁾	0.69	0.62	0.40	0.53	0.60	1.31	1.26
Diluted earnings per share	0.73	0.62	1.41	0.49	0.61	1.35	1.01
Cash dividends per share	0.250	0.250	0.235	0.235	0.235	0.500	0.47
Book value per share	28.07	27.50	27.35	23.15	23.65	28.07	23.65
Tangible book value per share ⁽¹⁾	20.08	19.48	19.32	15.09	15.56	20.08	15.56
Market value per share (last)	28.28	29.00	29.59	21.22	19.88	28.28	19.88
Market value per share (high)	29.95	30.03	31.45	25.87	21.73	30.03	28.18
Market value per share (low)	26.16	24.99	19.67	19.00	16.95	24.99	16.95
Market value per share (average)	28.14	27.80	24.40	22.56	19.73	27.97	22.32
Dividend payout ratio from continuing operations	34.25 %	40.48 %	(16.13) %	51.09 %	41.23 %	37.04 %	48.96 %
Adjusted dividend payout ratio from continuing operations ⁽¹⁾	36.23 %	40.32 %	58.75 %	44.34 %	39.17 %	38.17 %	37.30 %
Total shares outstanding	182,430,427	182,681,325	182,871,775	182,611,075	182,626,229	182,430,427	182,626,229
Average shares outstanding - diluted	185,260,963	185,574,130	182,688,190	184,645,004	183,631,570	185,417,547	183,770,759

Yield/Rate:
(Taxable equivalent basis)
Loans, loans held for sale, and leases	6.59 %	6.50 %	6.48 %	6.39 %	6.24 %	6.55 %	6.13 %
Loans, loans held for sale, and leases excluding net accretion on acquired loans and leases	6.56	6.46	6.43	6.31	6.18	6.51	6.03
Available for sale securities:
Taxable	3.18	3.11	2.45	2.07	2.09	3.15	1.94
Tax-exempt	4.12	4.25	3.78	3.23	3.21	4.19	3.21
Other investments	5.45	5.48	5.41	5.36	5.05	5.47	4.85
Total interest earning assets and revenue	5.90	5.80	5.59	5.38	5.21	5.85	5.05
Deposits	2.53	2.45	2.32	2.14	1.87	2.49	1.57
Interest bearing demand and money market	3.13	3.11	3.02	2.79	2.49	3.12	2.26
Savings	0.57	0.57	0.56	0.56	0.51	0.57	0.43
Time	4.53	4.42	4.22	3.98	3.69	4.47	3.15
Total interest bearing deposits	3.28	3.21	3.10	2.88	2.58	3.24	2.23
Fed funds purchased, securities sold under agreement to repurchase and other	4.47	4.86	4.33	4.27	3.97	4.76	3.85
Short-term FHLB borrowings	—	—	—	3.54	5.24	—	4.91
Short-term BTFP borrowings	4.77	4.84	5.04	5.15	5.15	4.81	5.15
Total interest bearing deposits and short-term borrowings	3.44	3.39	3.33	3.16	2.90	3.41	2.56
Subordinated and long-term borrowings	4.41	4.35	4.18	4.22	4.23	4.38	4.25
Total interest bearing liabilities	3.45	3.40	3.34	3.17	2.92	3.43	2.59
Interest bearing liabilities to interest earning assets	75.97 %	75.73 %	76.08 %	75.74 %	74.57 %	75.85 %	72.92 %
Net interest income tax equivalent adjustment (in thousands)	$ 644	$ 636	$ 987	$ 1,081	$ 1,063	$ 1,280	$ 2,114

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

NM - Not meaningful

Table 4 Consolidated Balance Sheets (Unaudited)

	As of
(In thousands)	Jun 2024	Mar 2024	Dec 2023	Sep 2023	Jun 2023
ASSETS
Cash and due from banks	$ 516,715	$ 427,543	$ 798,177	$ 594,787	$ 722,625
Interest bearing deposits with other banks and Federal funds sold	2,093,820	2,609,931	3,434,088	1,400,858	1,005,889
Available for sale securities, at fair value	7,921,422	8,306,589	8,075,476	9,643,231	10,254,580
Loans and leases, net of unearned income	33,312,773	32,882,616	32,497,022	32,520,593	32,556,708
Allowance for credit losses	470,022	472,575	468,034	446,859	466,013
Net loans and leases	32,842,751	32,410,041	32,028,988	32,073,734	32,090,695
Loans held for sale, at fair value	197,673	169,556	186,301	162,376	193,234
Premises and equipment, net	808,705	822,666	802,133	789,698	804,732
Goodwill	1,366,923	1,367,785	1,367,785	1,367,785	1,367,785
Other intangible assets, net	91,027	96,126	100,191	104,596	109,033
Bank-owned life insurance	648,970	645,167	642,840	639,073	634,985
Other assets	1,496,072	1,458,459	1,498,531	1,590,769	1,486,070
Assets of discontinued operations	—	—	—	156,103	169,032
Total Assets	$ 47,984,078	$ 48,313,863	$ 48,934,510	$ 48,523,010	$ 48,838,660
LIABILITIES
Deposits:
Demand: Noninterest bearing	$ 8,586,265	$ 8,820,468	$ 9,232,068	$ 9,648,191	$ 10,223,508
Interest bearing	18,514,015	18,945,982	19,276,596	18,334,551	18,088,711
Savings	2,613,950	2,694,777	2,720,913	2,837,348	2,983,709
Time deposits	8,144,429	7,658,999	7,267,560	7,515,788	7,405,741
Total deposits	37,858,659	38,120,226	38,497,137	38,335,878	38,701,669
Securities sold under agreement to repurchase	55,034	94,390	451,516	862,589	790,758
Other short-term borrowings	3,500,000	3,500,000	3,500,000	3,500,223	3,500,226
Subordinated and long-term debt	269,353	430,123	438,460	449,323	449,733
Other liabilities	1,013,274	979,192	879,554	876,195	806,305
Liabilities of discontinued operations	—	—	—	103,545	104,119
Total Liabilities	42,696,320	43,123,931	43,766,667	44,127,753	44,352,810
SHAREHOLDERS' EQUITY
Preferred stock	166,993	166,993	166,993	166,993	166,993
Common stock	456,076	456,703	457,179	456,528	456,566
Capital surplus	2,724,656	2,724,587	2,743,066	2,733,003	2,724,021
Accumulated other comprehensive loss	(782,462)	(791,333)	(761,829)	(1,309,921)	(1,163,075)
Retained earnings	2,722,495	2,632,982	2,562,434	2,348,654	2,301,345
Total Shareholders' Equity	5,287,758	5,189,932	5,167,843	4,395,257	4,485,850
Total Liabilities & Shareholders' Equity	$ 47,984,078	$ 48,313,863	$ 48,934,510	$ 48,523,010	$ 48,838,660

Table 5 Consolidated Quarterly Average Balance Sheets (Unaudited)

(In thousands)	Jun 2024	Mar 2024	Dec 2023	Sep 2023	Jun 2023
ASSETS
Cash and due from banks	$ 456,938	$ 557,009	$ 443,504	$ 362,479	$ 402,744
Interest bearing deposits with other banks and Federal funds sold	2,758,385	3,146,439	1,811,686	1,571,973	1,605,594
Available for sale securities, at fair value	8,033,552	8,269,708	9,300,714	10,004,441	10,655,791
Loans and leases, net of unearned income	32,945,526	32,737,574	32,529,030	32,311,572	31,901,096
Allowance for credit losses	475,181	473,849	447,879	459,698	457,027
Net loans and leases	32,470,345	32,263,725	32,081,151	31,851,874	31,444,069
Loans held for sale, at fair value	114,359	72,356	113,234	115,653	67,038
Premises and equipment, net	815,920	808,473	795,164	811,095	804,526
Goodwill	1,367,358	1,367,785	1,367,916	1,367,785	1,367,785
Other intangible assets, net	93,743	98,350	102,765	107,032	113,094
Bank-owned life insurance	646,124	643,189	640,439	636,335	632,489
Other assets	1,435,995	1,415,506	1,787,603	1,826,471	1,973,991
Total Assets	$ 48,192,719	$ 48,642,540	$ 48,444,176	$ 48,655,138	$ 49,067,121
LIABILITIES
Deposits:
Demand: Noninterest bearing	$ 8,757,029	$ 9,072,619	$ 9,625,912	$ 9,921,617	$ 10,725,108
Interest bearing	18,770,093	19,303,845	18,292,826	17,970,463	17,997,618
Savings	2,652,019	2,696,452	2,758,977	2,913,027	3,088,174
Time deposits	7,920,946	7,348,356	7,537,664	7,660,868	7,123,893
Total deposits	38,100,087	38,421,272	38,215,379	38,465,975	38,934,793
Securities sold under agreement to repurchase	65,821	209,348	753,018	827,055	774,170
Other short-term borrowings	3,500,000	3,500,000	3,503,320	3,510,942	3,541,985
Subordinated and long-term debt	404,231	434,579	443,251	449,568	455,617
Other liabilities	915,326	883,293	1,021,865	896,436	821,203
Total Liabilities	42,985,465	43,448,492	43,936,833	44,149,976	44,527,768
SHAREHOLDERS' EQUITY
Preferred stock	166,993	166,993	166,993	166,993	166,993
Common stock	456,618	456,437	456,636	456,557	456,755
Capital surplus	2,724,838	2,733,902	2,733,985	2,726,686	2,717,866
Accumulated other comprehensive loss	(838,710)	(777,940)	(1,279,235)	(1,175,077)	(1,087,389)
Retained earnings	2,697,515	2,614,656	2,428,964	2,330,003	2,285,128
Total Shareholders' Equity	5,207,254	5,194,048	4,507,343	4,505,162	4,539,353
Total Liabilities & Shareholders' Equity	$ 48,192,719	$ 48,642,540	$ 48,444,176	$ 48,655,138	$ 49,067,121

Table 6 Consolidated Statements of Income (Unaudited)

	Quarter Ended					Year-to-date
(Dollars in thousands, except per share data)	Jun 2024	Mar 2024	Dec 2023	Sep 2023	Jun 2023	Jun 2024	Jun 2023
INTEREST REVENUE:
Loans and leases	$ 539,685	$ 528,940	$ 531,340	$ 520,126	$ 496,262	$ 1,068,624	$ 953,346
Available for sale securities:
Taxable	62,852	63,405	55,801	50,277	53,531	126,257	102,043
Tax-exempt	638	687	1,927	2,375	2,427	1,325	4,904
Loans held for sale	1,652	1,184	1,418	1,468	961	2,837	1,564
Short-term investments	37,383	42,897	24,701	21,213	20,214	80,280	37,664
Total interest revenue	642,210	637,113	615,187	595,459	573,395	1,279,323	1,099,521
INTEREST EXPENSE:
Interest bearing demand deposits and money market accounts	146,279	149,403	139,144	126,296	111,938	295,682	207,282
Savings	3,743	3,801	3,918	4,108	3,915	7,544	6,929
Time deposits	89,173	80,670	80,143	76,867	65,517	169,842	89,467
Federal funds purchased and securities sold under agreement to repurchase	724	2,523	8,254	9,004	7,656	3,247	15,323
Short-term debt	41,544	42,109	44,451	45,438	46,036	83,653	83,051
Subordinated and long-term debt	4,429	4,699	4,672	4,786	4,806	9,129	9,678
Total interest expense	285,892	283,205	280,582	266,499	239,868	569,097	411,730
Net interest revenue	356,318	353,908	334,605	328,960	333,527	710,226	687,791
Provision for credit losses	22,000	22,000	38,000	17,000	15,000	44,000	25,000
Net interest revenue, after provision for credit losses	334,318	331,908	296,605	311,960	318,527	666,226	662,791

NONINTEREST REVENUE:
Mortgage banking	6,173	6,443	(1,137)	5,684	8,356	12,616	14,432
Credit card, debit card and merchant fees	12,770	12,162	12,902	12,413	12,617	24,932	24,469
Deposit service charges	17,652	18,338	11,161	16,867	17,208	35,989	33,690
Security (losses) gains, net	(4)	(9)	(384,524)	64	69	(12)	(51,192)
Wealth management	24,006	22,833	22,576	21,079	21,741	46,839	43,272
Other noninterest income	40,061	24,019	27,562	17,882	26,673	64,080	56,456
Total noninterest revenue	100,658	83,786	(311,460)	73,989	86,664	184,444	121,127

NONINTEREST EXPENSE:
Salaries and employee benefits	148,038	156,650	148,081	161,627	159,276	304,689	325,014
Occupancy and equipment	29,367	28,640	28,009	27,069	28,106	58,007	55,893
Data processing and software	29,467	30,028	32,922	29,127	27,289	59,494	58,395
Merger expense	—	—	—	—	122	—	5,192
Amortization of intangibles	3,999	4,066	4,405	4,436	6,081	8,065	10,547
Deposit insurance assessments	15,741	8,414	45,733	10,425	7,705	24,156	16,066
Pension settlement expense	—	—	11,226	600	—	—	—
Other noninterest expense	30,085	35,409	58,991	41,158	38,887	65,493	81,006
Total noninterest expense	256,697	263,207	329,367	274,442	267,466	519,904	552,113
Income (loss) from continuing operations before taxes	178,279	152,487	(344,222)	111,507	137,725	330,766	231,805
Income tax expense (benefit)	40,807	35,509	(80,485)	24,355	30,463	76,316	51,536
Income (loss) from continuing operations	$ 137,472	$ 116,978	$ (263,737)	$ 87,152	$ 107,262	254,450	180,269
Income from discontinued operations	—	—	706,129	7,242	9,238	—	14,220
Income tax expense from discontinued operations	—	—	183,328	1,811	2,472	—	3,832
Income from discontinued operations, net of taxes	—	—	522,801	5,431	6,766	—	10,388
Net income	137,472	116,978	259,064	92,583	114,028	254,450	190,657
Less: Preferred dividends	2,372	2,372	2,372	2,372	2,372	4,744	4,744
Net income available to common shareholders	$ 135,100	$ 114,606	$ 256,692	$ 90,211	$ 111,656	$ 249,706	$ 185,913
Diluted earnings (losses) per common share from continuing operations	$ 0.73	$ 0.62	$ (1.46)	$ 0.46	$ 0.57	$ 1.35	$ 0.96
Diluted earnings per common share	$ 0.73	$ 0.62	$ 1.41	$ 0.49	$ 0.61	$ 1.35	$ 1.01

Table 7 Selected Loan Portfolio Data (Unaudited)

	Quarter Ended
(In thousands)	Jun 2024	Mar 2024	Dec 2023	Sep 2023	Jun 2023
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate	$ 9,136,929	$ 9,121,457	$ 8,935,598	$ 9,199,024	$ 9,636,481
Owner occupied	4,475,647	4,442,357	4,349,060	4,361,530	4,358,000
Total commercial and industrial	13,612,576	13,563,814	13,284,658	13,560,554	13,994,481
Commercial real estate
Construction, acquisition and development	3,892,527	3,864,351	3,910,962	3,819,307	3,744,114
Income producing	5,851,340	5,783,943	5,736,871	5,720,606	5,596,134
Total commercial real estate	9,743,867	9,648,294	9,647,833	9,539,913	9,340,248
Consumer
Residential mortgages	9,740,713	9,447,675	9,329,692	9,186,179	8,989,614
Other consumer	215,617	222,833	234,839	233,947	232,365
Total consumer	9,956,330	9,670,508	9,564,531	9,420,126	9,221,979
Total loans and leases, net of unearned income	$ 33,312,773	$ 32,882,616	$ 32,497,022	$ 32,520,593	$ 32,556,708

NONPERFORMING ASSETS
Nonperforming Loans and Leases
Commercial and industrial
Non-real estate	$ 121,171	$ 149,683	$ 131,559	$ 67,962	$ 72,592
Owner occupied	13,700	5,962	7,097	6,486	7,541
Total commercial and industrial	134,871	155,645	138,656	74,448	80,133
Commercial real estate
Construction, acquisition and development	4,923	3,787	1,859	4,608	4,496
Income producing	15,002	19,428	17,485	12,251	19,205
Total commercial real estate	19,925	23,215	19,344	16,859	23,701
Consumer
Residential mortgages	61,677	61,886	57,881	58,488	53,171
Other consumer	273	261	260	243	238
Total consumer	61,950	62,147	58,141	58,731	53,409
Total nonperforming loans and leases ⁽¹⁾	$ 216,746	$ 241,007	$ 216,141	$ 150,038	$ 157,243

Other real estate owned and repossessed assets	4,793	5,280	6,246	2,927	2,857
Total nonperforming assets	$ 221,539	$ 246,287	$ 222,387	$ 152,965	$ 160,100

Government guaranteed portion of nonaccrual loans and leases covered by the SBA, FHA, VA or USDA	$ 71,418	$ 59,897	$ 49,551	$ 42,046	$ 35,322

Loans and leases 90+ days past due, still accruing	$ 6,150	$ 30,048	$ 22,466	$ 9,152	$ 4,412

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

Table 8 Allowance for Credit Losses (Unaudited)

	Quarter Ended
(Dollars in thousands)	Jun 2024	Mar 2024	Dec 2023	Sep 2023	Jun 2023
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period	$ 472,575	$ 468,034	$ 446,859	$ 466,013	$ 453,727
Charge-offs:
Commercial and industrial	(23,340)	(16,997)	(21,385)	(34,959)	(13,598)
Commercial real estate	(649)	(2,244)	(2,290)	(931)	(126)
Consumer	(2,294)	(2,395)	(3,229)	(1,608)	(1,916)
Total loans charged-off	(26,283)	(21,636)	(26,904)	(37,498)	(15,640)
Recoveries:
Commercial and industrial	2,943	1,312	2,117	2,240	1,360
Commercial real estate	101	150	95	201	618
Consumer	686	715	867	903	948
Total recoveries	3,730	2,177	3,079	3,344	2,926
Net charge-offs	(22,553)	(19,459)	(23,825)	(34,154)	(12,714)
Provision for credit losses related to loans and leases	20,000	24,000	45,000	15,000	25,000
Balance, end of period	$ 470,022	$ 472,575	$ 468,034	$ 446,859	$ 466,013

Average loans and leases, net of unearned income, for period	$ 32,945,526	$ 32,737,574	$ 32,529,030	$ 32,311,572	$ 31,901,096
Ratio: Net charge-offs to average loans and leases ⁽²⁾	0.28 %	0.24 %	0.29 %	0.42 %	0.16 %

RESERVE FOR UNFUNDED COMMITMENTS ⁽¹⁾
Balance, beginning of period	$ 6,551	$ 8,551	$ 15,551	$ 13,551	$ 23,551
Provision (reversal) for credit losses for unfunded commitments	2,000	(2,000)	(7,000)	2,000	(10,000)
Balance, end of period	$ 8,551	$ 6,551	$ 8,551	$ 15,551	$ 13,551

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

Table 9 Loan Portfolio by Grades (Unaudited)

	June 30, 2024
(In thousands)	Pass	Special Mention	Substandard	Impaired	Purchased Credit Deteriorated (Loss)	Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate	$ 8,657,327	$ 116,208	$ 309,809	$ 49,914	$ 3,671	$ 9,136,929
Owner occupied	4,413,813	9,872	42,860	7,998	1,104	4,475,647
Total commercial and industrial	13,071,140	126,080	352,669	57,912	4,775	13,612,576
Commercial real estate
Construction, acquisition and development	3,875,914	926	14,273	1,414	—	3,892,527
Income producing	5,655,410	12,007	170,305	13,618	—	5,851,340
Total commercial real estate	9,531,324	12,933	184,578	15,032	—	9,743,867
Consumer
Residential mortgages	9,658,697	799	79,759	—	1,458	9,740,713
Other consumer	215,104	—	513	—	—	215,617
Total consumer	9,873,801	799	80,272	—	1,458	9,956,330
Total loans and leases, net of unearned income	$ 32,476,265	$ 139,812	$ 617,519	$ 72,944	$ 6,233	$ 33,312,773

	March 31, 2024
(In thousands)	Pass	Special Mention	Substandard	Doubtful	Impaired	Purchased Credit Deteriorated (Loss)	Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate	$ 8,615,472	$ 101,824	$ 307,065	$ 16	$ 93,335	$ 3,745	$ 9,121,457
Owner occupied	4,381,398	20,682	37,894	—	1,275	1,108	4,442,357
Total commercial and industrial	12,996,870	122,506	344,959	16	94,610	4,853	13,563,814
Commercial real estate
Construction, acquisition and development	3,846,801	2,668	13,468	—	1,414	—	3,864,351
Income producing	5,575,662	25,360	165,680	—	17,241	—	5,783,943
Total commercial real estate	9,422,463	28,028	179,148	—	18,655	—	9,648,294
Consumer
Residential mortgages	9,371,570	—	74,531	—	—	1,574	9,447,675
Other consumer	222,245	—	588	—	—	—	222,833
Total consumer	9,593,815	—	75,119	—	—	1,574	9,670,508
Total loans and leases, net of unearned income	$ 32,013,148	$ 150,534	$ 599,226	$ 16	$ 113,265	$ 6,427	$ 32,882,616

Table 10 Geographical Loan Information (Unaudited)

	June 30, 2024
(Dollars in thousands)	Alabama	Arkansas	Florida	Georgia	Louisiana	Mississippi	Missouri	Tennessee	Texas	Other	Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate	$ 385,251	$ 166,222	$ 516,717	$ 491,184	$ 351,731	$ 535,447	$ 74,535	$ 331,710	$ 3,644,417	$ 2,639,715	$ 9,136,929
Owner occupied	346,525	241,106	311,070	311,358	294,390	602,399	97,739	161,289	1,761,399	348,372	4,475,647
Total commercial and industrial	731,776	407,328	827,787	802,542	646,121	1,137,846	172,274	492,999	5,405,816	2,988,087	13,612,576
Commercial real estate
Construction, acquisition and development	195,318	68,561	420,107	529,531	48,133	210,904	43,146	168,474	1,632,361	575,992	3,892,527
Income producing	426,133	261,575	373,876	560,683	213,649	430,971	203,927	297,257	2,260,782	822,487	5,851,340
Total commercial real estate	621,451	330,136	793,983	1,090,214	261,782	641,875	247,073	465,731	3,893,143	1,398,479	9,743,867
Consumer
Residential mortgages	1,257,791	393,730	679,028	426,349	464,187	1,177,933	202,196	747,121	4,146,204	246,174	9,740,713
Other consumer	25,256	17,164	4,922	7,111	11,029	85,548	1,810	16,079	41,714	4,984	215,617
Total consumer	1,283,047	410,894	683,950	433,460	475,216	1,263,481	204,006	763,200	4,187,918	251,158	9,956,330
Total	$ 2,636,274	$ 1,148,358	$ 2,305,720	$ 2,326,216	$ 1,383,119	$ 3,043,202	$ 623,353	$ 1,721,930	$ 13,486,877	$ 4,637,724	$ 33,312,773

Loan growth, excluding loans acquired during the quarter ($)	$ (30,416)	$ 3,395	$ 21,100	$ (6,790)	$ 32,136	$ 25,581	$ 19,822	$ 17,667	$ 61,050	$ 286,612	$ 430,157
Loan growth, excluding loans acquired during the quarter (%) (annualized)	(4.59) %	1.19 %	3.71 %	(1.17) %	9.57 %	3.41 %	13.21 %	4.17 %	1.83 %	26.49 %	5.26 %

	March 31, 2024
(Dollars in thousands)	Alabama	Arkansas	Florida	Georgia	Louisiana	Mississippi	Missouri	Tennessee	Texas	Other	Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial
Non-real estate	$ 413,301	$ 146,430	$ 542,282	$ 539,664	$ 328,789	$ 533,880	$ 70,147	$ 321,934	$ 3,740,402	$ 2,484,628	$ 9,121,457
Owner occupied	352,403	245,047	284,283	307,074	296,196	615,518	96,778	168,039	1,735,411	341,608	4,442,357
Total commercial and industrial	765,704	391,477	826,565	846,738	624,985	1,149,398	166,925	489,973	5,475,813	2,826,236	13,563,814
Commercial real estate
Construction, acquisition and development	196,775	79,748	425,582	528,889	40,494	203,222	39,893	175,446	1,665,187	509,115	3,864,351
Income producing	442,236	265,621	360,230	531,762	213,757	425,447	203,475	295,180	2,250,912	795,323	5,783,943
Total commercial real estate	639,011	345,369	785,812	1,060,651	254,251	628,669	243,368	470,626	3,916,099	1,304,438	9,648,294
Consumer
Residential mortgages	1,232,302	390,552	667,203	418,748	460,552	1,155,102	191,468	726,161	3,989,512	216,075	9,447,675
Other consumer	29,673	17,565	5,040	6,869	11,195	84,452	1,770	17,503	44,403	4,363	222,833
Total consumer	1,261,975	408,117	672,243	425,617	471,747	1,239,554	193,238	743,664	4,033,915	220,438	9,670,508
Total loans and leases, net of unearned income	$ 2,666,690	$ 1,144,963	$ 2,284,620	$ 2,333,006	$ 1,350,983	$ 3,017,621	$ 603,531	$ 1,704,263	$ 13,425,827	$ 4,351,112	$ 32,882,616

Table 11 Noninterest Revenue and Expense (Unaudited)

	Quarter Ended					Year-to-date
(In thousands)	Jun 2024	Mar 2024	Dec 2023	Sep 2023	Jun 2023	Jun 2024	Jun 2023
NONINTEREST REVENUE:
Mortgage banking excl. MSR and MSR hedge market value adjustment	$ 7,171	$ 6,460	$ 3,931	$ 5,842	$ 6,774	$ 13,631	$ 15,153
MSR and MSR hedge market value adjustment	(998)	(17)	(5,068)	(158)	1,582	(1,015)	(721)
Credit card, debit card and merchant fees	12,770	12,162	12,902	12,413	12,617	24,932	24,469
Deposit service charges	17,652	18,338	11,161	16,867	17,208	35,989	33,690
Security (losses) gains, net	(4)	(9)	(384,524)	64	69	(12)	(51,192)
Trust income	12,645	11,322	11,301	10,574	10,084	23,967	20,637
Annuity fees	1,666	1,705	1,839	1,882	1,702	3,371	3,893
Brokerage commissions and fees	9,695	9,806	9,436	8,623	9,955	19,501	18,742
Bank-owned life insurance	4,370	3,946	4,728	4,108	3,811	8,316	7,458
Other miscellaneous income	35,691	20,073	22,834	13,774	22,862	55,764	48,998
Total noninterest revenue	$ 100,658	$ 83,786	$ (311,460)	$ 73,989	$ 86,664	$ 184,444	$ 121,127

NONINTEREST EXPENSE:
Salaries and employee benefits	$ 148,038	$ 156,650	$ 148,081	$ 161,627	$ 159,276	$ 304,689	$ 325,014
Occupancy and equipment	29,367	28,640	28,009	27,069	28,106	58,007	55,893
Deposit insurance assessments	15,741	8,414	45,733	10,425	7,705	24,156	16,066
Pension settlement expense	—	—	11,226	600	—	—	—
Advertising and public relations	6,537	4,224	12,632	5,671	5,618	10,760	9,859
Foreclosed property expense	515	268	915	270	323	783	1,303
Telecommunications	1,441	1,545	1,356	1,520	1,365	2,985	2,899
Travel and entertainment	2,549	2,236	3,146	2,442	2,850	4,785	5,416
Data processing and software	29,467	30,028	32,922	29,127	27,289	59,494	58,395
Professional, consulting and outsourcing	3,534	3,935	5,194	5,017	5,371	7,469	9,681
Amortization of intangibles	3,999	4,066	4,405	4,436	6,081	8,065	10,547
Legal	758	3,682	13,724	3,316	1,765	4,440	3,052
Merger expense	—	—	—	—	122	—	5,192
Postage and shipping	1,622	2,205	1,907	2,292	1,941	3,827	4,244
Other miscellaneous expense	13,129	17,314	20,117	20,630	19,654	30,443	44,552
Total noninterest expense	$ 256,697	$ 263,207	$ 329,367	$ 274,442	$ 267,466	$ 519,904	$ 552,113

Table 12 Average Balance and Yields (Unaudited)

	Quarter Ended
	June 30, 2024			March 31, 2024			June 30, 2023
(Dollars in thousands)	Average Balance	Income/ Expense	Yield/ Rate	Average Balance	Income/ Expense	Yield/ Rate	Average Balance	Income/ Expense	Yield/ Rate
ASSETS
Interest-earning assets:
Loans and leases, excluding accretion	$ 32,945,526	$ 537,179	6.56 %	$ 32,737,574	$ 525,878	6.46 %	$ 31,901,096	$ 491,473	6.17 %
Accretion income on acquired loans		2,981	0.03		3,515	0.04		5,207	0.07
Loans held for sale	114,359	1,652	5.81	72,356	1,184	6.58	67,038	961	5.75
Investment securities
Taxable	7,954,865	62,852	3.18	8,187,342	63,405	3.11	10,272,425	53,531	2.09
Tax-exempt	78,687	807	4.12	82,366	870	4.25	383,366	3,072	3.21
Total investment securities	8,033,552	63,659	3.19	8,269,708	64,275	3.13	10,655,791	56,603	2.13
Other investments	2,758,385	37,383	5.45	3,146,439	42,897	5.48	1,605,594	20,214	5.05
Total interest-earning assets	43,851,822	642,854	5.90 %	44,226,077	637,749	5.80 %	44,229,519	574,458	5.21 %
Other assets	4,816,078			4,890,312			5,294,629
Allowance for credit losses	475,181			473,849			457,027
Total assets	$ 48,192,719			$ 48,642,540			$ 49,067,121

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest bearing demand and money market	$ 18,770,093	$ 146,279	3.13 %	$ 19,303,845	$ 149,403	3.11 %	$ 17,997,618	111,938	2.49 %
Savings deposits	2,652,019	3,743	0.57	2,696,452	3,801	0.57	3,088,174	3,915	0.51
Time deposits	7,920,946	89,173	4.53	7,348,356	80,670	4.42	7,123,893	65,517	3.69
Total interest-bearing deposits	29,343,058	239,195	3.28	29,348,653	233,874	3.21	28,209,685	181,370	2.58
Fed funds purchased, securities sold under agreement to repurchase and other	65,821	732	4.47	209,348	2,528	4.86	774,170	7,658	3.97
Short-term FHLB borrowings	—	—	—	—	—	—	2,388,139	31,219	5.24
Short-term BTFP borrowings	3,500,000	41,536	4.77	3,500,000	42,104	4.84	1,153,846	14,815	5.15
Subordinated and long-term borrowings	404,231	4,429	4.41	434,579	4,699	4.35	455,617	4,806	4.23
Total interest-bearing liabilities	33,313,110	285,892	3.45 %	33,492,580	283,205	3.40 %	32,981,457	239,868	2.92 %
Noninterest-bearing liabilities:
Demand deposits	8,757,029			9,072,619			10,725,108
Other liabilities	915,326			883,293			821,203
Total liabilities	42,985,465			43,448,492			44,527,768
Shareholders' equity	5,207,254			5,194,048			4,539,353
Total liabilities and shareholders' equity	$ 48,192,719			$ 48,642,540			$ 49,067,121
Net interest income/net interest spread		356,962	2.45 %		354,544	2.40 %		334,590	2.29 %
Net yield on earning assets/net interest margin			3.27 %			3.22 %			3.03 %
Taxable equivalent adjustment:
Loans and investment securities		(644)			(636)			(1,063)
Net interest revenue		$ 356,318			$ 353,908			$ 333,527

Table 12 Average Balance and Yields Continued

	Year-To-Date
	June 30, 2024		June 30, 2023
(Dollars in thousands)	Average Balance	Income/ Expense