Financial Summary
(dollars in thousands, | For the Three Months Ended | For the Years Ended | |||||||||||||||||
except per share data) | |||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
Reported Results | |||||||||||||||||||
Net income | $ | 35,733 | $ | 33,968 | $ | 34,776 | $ | 128,181 | $ | 138,257 | |||||||||
Diluted earnings per share | $ | 0.38 | $ | 0.36 | $ | 0.37 | $ | 1.37 | $ | 1.44 | |||||||||
Return on average assets | 1.47 | % | 1.41 | % | 1.45 | % | 1.34 | % | 1.47 | % | |||||||||
Return on average equity | 13.61 | % | 12.67 | % | 12.36 | % | 11.99 | % | 12.55 | % | |||||||||
Operating Results (non-GAAP)(1) | |||||||||||||||||||
Core net income | $ | 36,750 | $ | 34,353 | $ | 34,753 | $ | 129,561 | $ | 138,518 | |||||||||
Core diluted earnings per share | $ | 0.39 | $ | 0.37 | $ | 0.37 | $ | 1.38 | $ | 1.45 | |||||||||
Core pre-tax pre-provision net revenue | $ | 55,289 | $ | 48,860 | $ | 40,868 | $ | 183,038 | $ | 171,771 | |||||||||
Provision expense | $ | 9,120 | $ | 5,923 | $ | (2,729 | ) | $ | 21,106 | $ | (1,376 | ) | |||||||
Net charge-offs | $ | 2,014 | $ | 2,461 | $ | (1,064 | ) | $ | 7,137 | $ | 8,410 | ||||||||
Reserve build/(release)(2) | $ | 6,813 | $ | 2,490 | $ | (1,663 | ) | $ | 10,384 | $ | (8,787 | ) | |||||||
Core return on average assets (ROAA) | 1.51 | % | 1.43 | % | 1.45 | % | 1.35 | % | 1.47 | % | |||||||||
Core pre-tax pre-provision ROAA | 2.28 | % | 2.03 | % | 1.71 | % | 1.91 | % | 1.83 | % | |||||||||
Return on average tangible common equity | 19.77 | % | 18.28 | % | 17.56 | % | 17.30 | % | 17.95 | % | |||||||||
Core return on average tangible common equity | 20.32 | % | 18.48 | % | 17.55 | % | 17.49 | % | 17.98 | % | |||||||||
Core efficiency ratio | 50.00 | % | 54.06 | % | 57.06 | % | 54.59 | % | 54.69 | % | |||||||||
Net interest margin (FTE) | 3.99 | % | 3.76 | % | 3.23 | % | 3.58 | % | 3.26 | % |
(1) Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. A full reconciliation of non-GAAP financial measures can be found at the end of the financial statements which accompany this release.
(2) Reserve build/(release) represents the net change in the Company's allowance for credit losses (ACL) from the prior period.
Fourth Quarter 2022 Highlights
- Net income of
$35.7 million and diluted earnings per share totaled$0.38 , an increase of$1.8 million , or$0.02 per share from the previous quarter and an increase of$1.0 million , or$0.01 per share from the fourth quarter of 2021 - Record core pre-tax pre-provision net revenue (PPNR)(1) totaled
$55.3 million , an increase of$6.4 million from the previous quarter and an increase of$14.4 million from the fourth quarter of 2021 - Total loans increased
$291.3 million , or 15.7% annualized, from the previous quarter, driven by broad-based growth in nearly all commercial and consumer categories- Average loans increased
$229.6 million , or 12.5% annualized, from the previous quarter
- Average loans increased
- Record net interest income (FTE) of
$88.3 million increased$5.7 million from the previous quarter and$17.8 million from the fourth quarter of 2021 - Noninterest income of
$24.3 million decreased$1.6 million from the previous quarter due to a$1.6 million decrease in commercial swap fee income - Noninterest expense (excluding
$1.3 million of merger and COVID-19 related expenses) of$57.0 million decreased$2.4 million from the previous quarter - Average deposits decreased
$75.2 million , or 3.7% annualized, compared to the prior quarter - Total shareholders’ equity increased
$29.5 million from the previous quarter due to a$24.5 million increase in retained earnings and a$4.6 million increase in accumulated other comprehensive income (AOCI) - Tangible book value per share grew 16.7% annualized compared to the prior quarter
- The Bank was named the #1
Small Business Association (SBA) lender in the SBA’s designatedPittsburgh District for the second consecutive year and ranked #2 overall in the state ofPennsylvania
Profitability
- Core return on average assets (ROAA) improved eight basis points to 1.51% compared to the previous quarter
- Core pre-tax pre-provision ROAA(1) for the quarter ended
December 31, 2022 was 2.28% as compared to 2.03% in the prior quarter and 1.71% in the fourth quarter of 2021 - The net interest margin of 3.99% increased 23 basis points from the prior quarter and increased 76 basis points from the fourth quarter of 2021
- The core efficiency ratio(1) of 50.00% decreased 406 basis points from the previous quarter and decreased 706 basis points from the fourth quarter of 2021
Strong capital position
- Bank-level Tier 1 Capital ratio of 11.3%, which represents
$261.5 million in excess capital above the regulatory “well capitalized” requirement of 8.0% - There were no shares repurchased during the fourth quarter of 2022. The remaining repurchase capacity under the current program was
$5.9 million as ofDecember 31, 2022
Asset quality
- The provision for credit losses was
$9.1 million , an increase of$3.2 million compared to the previous quarter due primarily to additional reserves associated with the$291.3 million increase in loans during the fourth quarter of 2022 - The allowance for credit losses as a percentage of end-of-period loans was 1.35% compared to 1.31% in the previous quarter
- Total criticized loans decreased
$6.4 million from the previous quarter - Net charge-offs on loans totaled
$2.0 million , a decrease of$0.4 million from the previous quarter- Net charge-offs as a percentage of average loans outstanding (excluding PPP loans, annualized) were 0.11% in the fourth quarter of 2022 as compared to 0.13% in the previous quarter
- Net charge-offs as a percentage of average loans outstanding (excluding PPP loans, annualized) were 0.11% in the fourth quarter of 2022 as compared to 0.13% in the previous quarter
Full Year 2022 Highlights
Franchise Growth
- On
August 30, 2022 , the Company announced its planned expansion into Central andEastern Pennsylvania with the acquisition ofCentric Financial Corporation (OTCPK: CFCX). The legal close of this transaction is expected to be completed onJanuary 31, 2023 - Total loans grew
$863.2 million , or 12.7% compared to the prior year (excluding Paycheck Protection Program “PPP” loans) - Average deposits grew
$190.1 million , or 2.4% compared to the prior year, including$128.1 million , or 5.0%, in average noninterest-bearing deposits- End of period deposits grew
$23.0 million , or 0.3% compared to the prior year, including$11.7 million , or 0.4%, in average noninterest-bearing deposits
- End of period deposits grew
Earnings
- For the year ended
December 31, 2022 , net income was$128.2 million , or$1.37 diluted earnings per share- Core net income(1) was
$129.6 million , or$1.38 diluted earnings per share, compared to$138.5 million , or$1.45 diluted earnings per share in the prior year
- Core net income(1) was
- Record core pre-tax pre-provision income(1) of
$183.0 million grew$11.3 million , or 6.6% from the prior year, despite a$20.5 million decrease in PPP income
- Operating leverage was positive for the year ended
December 31, 2022 - Core revenue(1) grew
$27.6 million , or 7.2%, from the prior year despite the aforementioned decrease in PPP revenue - Core noninterest expense(1) increased
$14.7 million , or 7.0%, from the prior year
- Core revenue(1) grew
Profitability
- The core efficiency ratio(1) improved 10 basis points to 54.59% compared to the prior year
- The return on average assets (ROAA) for the year ended
December 31, 2022 was 1.34%- Core ROAA(1) for the year ended
December 31, 2022 was 1.35% as compared to 1.47% in the prior year - Core pre-tax pre-provision ROAA(1) for the year ended
December 31, 2022 was 1.91% as compared to 1.83% in the prior year
- Core ROAA(1) for the year ended
“Our results for the quarter were strong, resulting in a record 2.28% Core Pre-Tax, Pre-Provision ROAA and a healthy 1.51% Core ROAA,” stated
Earnings
Net income for the fourth quarter of 2022 was
Net income for the year ended
Net Interest Income and Net Interest Margin
Net interest income (FTE) of
The net interest margin for the fourth quarter of 2022 was 3.99%, an increase of 23 basis points from the previous quarter and an increase of 76 basis points from the fourth quarter of 2021. Loan yields increased 44 basis points from the previous quarter primarily due to the aforementioned increase in income on variable and adjustable rate loans, and, together with a
Total average deposits decreased
Total end-of-period deposits decreased
Asset Quality
Provision expense in the fourth quarter of 2022 totaled
Nonperforming loans totaled
At
During the fourth quarter of 2022, net charge-offs were
Net charge-offs as a percentage of average loans (excluding PPP, annualized) were 0.11%, 0.13% and (0.06%) for the periods ended
Noninterest Income and Noninterest Expense
Noninterest income totaled
For the year ended
Noninterest expense (excluding
The core efficiency ratio was 50.00% during the fourth quarter of 2022 as compared to 54.06% in the previous quarter and 57.06% in the fourth quarter of 2021.
For the year ended
The core efficiency ratio was 54.59% for the year ended
Full time equivalent staff was 1,424 at
Dividends and Capital
First Commonwealth’s capital ratios for Total, Tier I, Leverage and Common Equity Tier I at
Conference Call
First Commonwealth will host a quarterly conference call to discuss its financial results for the fourth quarter and full year 2022 on
About
Forward-Looking Statements
Certain statements contained in this release that are not historical facts may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the
In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements in this release. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Media Relations:
Vice President / Communications and Media Relations
Phone: 724-463-6806
E-mail: JLongwill@fcbanking.com
Investor Relations:
Vice President / Finance and Investor Relations
Phone: 724-463-1690
E-mail: RThomas1@fcbanking.com
CONSOLIDATED FINANCIAL DATA | |||||||||||||||||||
Unaudited | |||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||
For the Three Months Ended | For the Years Ended | ||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
SUMMARY RESULTS OF OPERATIONS | |||||||||||||||||||
Net interest income | $ | 88,027 | $ | 82,360 | $ | 70,254 | $ | 312,221 | $ | 278,541 | |||||||||
Provision for credit losses | 9,120 | 5,923 | (2,729 | ) | 21,106 | (1,376 | ) | ||||||||||||
Noninterest income | 24,309 | 25,914 | 26,071 | 98,708 | 106,757 | ||||||||||||||
Noninterest expense | 58,334 | 59,901 | 55,428 | 229,638 | 213,857 | ||||||||||||||
Net income | 35,733 | 33,968 | 34,776 | 128,181 | 138,257 | ||||||||||||||
Core net income(5) | 36,750 | 34,353 | 34,753 | 129,561 | 138,518 | ||||||||||||||
Earnings per common share (diluted) | $ | 0.38 | $ | 0.36 | $ | 0.37 | $ | 1.37 | $ | 1.44 | |||||||||
Core earnings per common share (diluted)(6) | $ | 0.39 | $ | 0.37 | $ | 0.37 | $ | 1.38 | $ | 1.45 | |||||||||
KEY FINANCIAL RATIOS | |||||||||||||||||||
Return on average assets | 1.47 | % | 1.41 | % | 1.45 | % | 1.34 | % | 1.47 | % | |||||||||
Core return on average assets(7) | 1.51 | % | 1.43 | % | 1.45 | % | 1.35 | % | 1.47 | % | |||||||||
Return on average assets, pre-provision, pre-tax | 2.22 | % | 2.01 | % | 1.71 | % | 1.89 | % | 1.82 | % | |||||||||
Core return on average assets, pre-provision, pre-tax | 2.28 | % | 2.03 | % | 1.71 | % | 1.91 | % | 1.83 | % | |||||||||
Return on average shareholders' equity | 13.61 | % | 12.67 | % | 12.36 | % | 11.99 | % | 12.55 | % | |||||||||
Return on average tangible common equity(8) | 19.77 | % | 18.28 | % | 17.56 | % | 17.30 | % | 17.95 | % | |||||||||
Core return on average tangible common equity(9) | 20.32 | % | 18.48 | % | 17.55 | % | 17.49 | % | 17.98 | % | |||||||||
Core efficiency ratio(2)(10) | 50.00 | % | 54.06 | % | 57.06 | % | 54.59 | % | 54.69 | % | |||||||||
Net interest margin (FTE)(1) | 3.99 | % | 3.76 | % | 3.23 | % | 3.58 | % | 3.26 | % | |||||||||
Book value per common share | $ | 11.27 | $ | 10.95 | $ | 11.77 | |||||||||||||
Tangible book value per common share(11) | 7.92 | 7.60 | 8.43 | ||||||||||||||||
Market value per common share | 13.97 | 12.84 | 16.09 | ||||||||||||||||
Cash dividends declared per common share | 0.120 | 0.120 | 0.115 | 0.475 | 0.455 | ||||||||||||||
ASSET QUALITY RATIOS | |||||||||||||||||||
Nonperforming loans as a percent of end-of-period loans and leases(3) | 0.46 | % | 0.48 | % | 0.80 | % | |||||||||||||
Nonperforming loans as a percent of end-of-period loans and leases, excluding PPP loans(3) | 0.46 | % | 0.49 | % | 0.81 | % | |||||||||||||
Nonperforming assets as a percent of total assets(3) | 0.37 | % | 0.38 | % | 0.59 | % | |||||||||||||
Nonperforming assets as a percent of total assets, excluding PPP loans(3) | 0.37 | % | 0.38 | % | 0.59 | % | |||||||||||||
Net charge-offs as a percent of average loans and leases (annualized)(4) | 0.11 | % | 0.13 | % | (0.06)% | ||||||||||||||
Net charge-offs as a percent of average loans and leases, excluding PPP loans (annualized)(4) | 0.11 | % | 0.13 | % | (0.06)% | ||||||||||||||
Allowance for credit losses as a percent of nonperforming loans(4) | 289.98 | % | 269.23 | % | 167.67 | % | |||||||||||||
Allowance for credit losses as a percent of end-of-period loans and leases(4) | 1.35 | % | 1.31 | % | 1.35 | % | |||||||||||||
Allowance for credit losses as a percent of end-of-period loans and leases, excluding PPP loans(4) | 1.35 | % | 1.31 | % | 1.37 | % | |||||||||||||
CAPITAL RATIOS | |||||||||||||||||||
Shareholders' equity as a percent of total assets | 10.7 | % | 10.7 | % | 11.6 | % | |||||||||||||
Tangible common equity as a percent of tangible assets(12) | 7.8 | % | 7.7 | % | 8.6 | % | |||||||||||||
Tangible common equity as a percent of tangible assets, excluding PPP loans(12) | 7.8 | % | 7.7 | % | 8.7 | % | |||||||||||||
Leverage Ratio | 10.2 | % | 10.1 | % | 9.7 | % | |||||||||||||
12.0 | % | 12.1 | % | 12.2 | % | ||||||||||||||
14.4 | % | 14.5 | % | 14.6 | % | ||||||||||||||
Common Equity - Tier I | 11.1 | % | 11.2 | % | 11.3 | % |
CONSOLIDATED FINANCIAL DATA | |||||||||||||||
Unaudited | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
For the Three Months Ended | For the Years Ended | ||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
INCOME STATEMENT | |||||||||||||||
Interest income | $ | 96,281 | $ | 85,700 | $ | 73,530 | $ | 329,953 | $ | 293,838 | |||||
Interest expense | 8,254 | 3,340 | 3,276 | 17,732 | 15,297 | ||||||||||
Net Interest Income | 88,027 | 82,360 | 70,254 | 312,221 | 278,541 | ||||||||||
Provision for credit losses | 9,120 | 5,923 | (2,729 | ) | 21,106 | (1,376 | ) | ||||||||
Net Interest Income after Provision for Credit Losses | 78,907 | 76,437 | 72,983 | 291,115 | 279,917 | ||||||||||
Net securities gains | — | — | — | 2 | 16 | ||||||||||
Trust income | 2,455 | 2,777 | 2,771 | 10,518 | 11,111 | ||||||||||
Service charges on deposit accounts | 4,946 | 5,194 | 4,857 | 19,641 | 17,984 | ||||||||||
Insurance and retail brokerage commissions | 2,051 | 2,048 | 2,134 | 8,857 | 8,502 | ||||||||||
Income from bank owned life insurance | 1,149 | 1,419 | 1,487 | 5,459 | 6,433 | ||||||||||
Gain on sale of mortgage loans | 948 | 1,485 | 1,940 | 5,276 | 13,555 | ||||||||||
Gain on sale of other loans and assets | 1,525 | 1,093 | 1,849 | 6,036 | 8,130 | ||||||||||
Card-related interchange income | 6,996 | 6,980 | 7,069 | 27,603 | 27,954 | ||||||||||
Derivative mark-to-market | (27 | ) | 6 | 973 | 368 | 2,344 | |||||||||
Swap fee income | 752 | 2,326 | 828 | 4,685 | 2,543 | ||||||||||
Other income | 3,514 | 2,586 | 2,163 | 10,263 | 8,185 | ||||||||||
Total Noninterest Income | 24,309 | 25,914 | 26,071 | 98,708 | 106,757 | ||||||||||
Salaries and employee benefits | 31,664 | 32,486 | 31,422 | 126,031 | 119,506 | ||||||||||
Net occupancy | 4,451 | 4,629 | 3,972 | 18,037 | 16,586 | ||||||||||
Furniture and equipment | 3,990 | 4,005 | 3,776 | 15,582 | 15,642 | ||||||||||
Data processing | 3,543 | 3,721 | 2,933 | 13,922 | 12,373 | ||||||||||
960 | 1,569 | 1,257 | 4,447 | 4,604 | |||||||||||
Advertising and promotion | 1,093 | 1,278 | 1,154 | 5,031 | 4,983 | ||||||||||
Intangible amortization | 726 | 746 | 900 | 3,196 | 3,497 | ||||||||||
Other professional fees and services | 1,272 | 1,204 | 1,351 | 4,894 | 4,501 | ||||||||||
675 | 796 | 565 | 2,871 | 2,529 | |||||||||||
Litigation and operational losses | 847 | 758 | 700 | 2,834 | 2,324 | ||||||||||
Loss on sale or write-down of assets | 128 | 54 | 80 | 343 | 303 | ||||||||||
Merger and acquisition | 1,254 | 448 | — | 1,702 | — | ||||||||||
COVID-19 related | 33 | 39 | 92 | 151 | 449 | ||||||||||
Branch consolidation | — | — | (121 | ) | (104 | ) | (103 | ) | |||||||
Other operating expenses | 7,698 | 8,168 | 7,347 | 30,701 | 26,663 | ||||||||||
Total Noninterest Expense | 58,334 | 59,901 | 55,428 | 229,638 | 213,857 | ||||||||||
Income before Income Taxes | 44,882 | 42,450 | 43,626 | 160,185 | 172,817 | ||||||||||
Income tax provision | 9,149 | 8,482 | 8,850 | 32,004 | 34,560 | ||||||||||
Net Income | $ | 35,733 | $ | 33,968 | $ | 34,776 | $ | 128,181 | $ | 138,257 | |||||
Shares Outstanding at End of Period | 93,376,314 | 93,377,064 | 94,233,152 | 93,376,314 | 94,233,152 | ||||||||||
Average Shares Outstanding Assuming Dilution | 93,489,398 | 93,450,259 | 95,020,353 | 93,887,447 | 95,840,285 | ||||||||||
CONSOLIDATED FINANCIAL DATA | |||||||||||
Unaudited | |||||||||||
(dollars in thousands) | |||||||||||
2022 | 2022 | 2021 | |||||||||
BALANCE SHEET (Period End) | |||||||||||
Assets | |||||||||||
Cash and due from banks | $ | 124,254 | $ | 106,153 | $ | 84,738 | |||||
Interest-bearing bank deposits | 29,990 | 74,619 | 310,634 | ||||||||
Securities available for sale, at fair value | 789,075 | 802,871 | 1,054,218 | ||||||||
Securities held to maturity, at amortized cost | 461,162 | 474,790 | 541,311 | ||||||||
Loans held for sale | 11,869 | 13,811 | 18,583 | ||||||||
Loans and leases | 7,642,143 | 7,348,917 | 6,839,230 | ||||||||
Allowance for credit losses | (102,906 | ) | (96,093 | ) | (92,522 | ) | |||||
Net loans and leases | 7,539,237 | 7,252,824 | 6,746,708 | ||||||||
312,533 | 312,950 | 314,516 | |||||||||
Other assets | 537,546 | 540,612 | 474,385 | ||||||||
Total Assets | $ | 9,805,666 | $ | 9,578,630 | $ | 9,545,093 | |||||
Liabilities and Shareholders' Equity | |||||||||||
Noninterest-bearing demand deposits | $ | 2,670,508 | $ | 2,782,654 | $ | 2,658,782 | |||||
Interest-bearing demand deposits | 357,769 | 354,310 | 291,476 | ||||||||
Savings deposits | 4,572,183 | 4,608,762 | 4,647,197 | ||||||||
Time deposits | 405,009 | 331,923 | 385,043 | ||||||||
Total interest-bearing deposits | 5,334,961 | 5,294,995 | 5,323,716 | ||||||||
Total deposits | 8,005,469 | 8,077,649 | 7,982,498 | ||||||||
Short-term borrowings | 372,694 | 97,932 | 138,315 | ||||||||
Long-term borrowings | 181,224 | 181,489 | 182,269 | ||||||||
Total borrowings | 553,918 | 279,421 | 320,584 | ||||||||
Other liabilities | 194,205 | 198,985 | 132,639 | ||||||||
Shareholders' equity | 1,052,074 | 1,022,575 | 1,109,372 | ||||||||
Total Liabilities and Shareholders' Equity | $ | 9,805,666 | $ | 9,578,630 | $ | 9,545,093 |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands) |
For the Three Months Ended | For the Years Ended | ||||||||||||||||||||
Yield/ | Yield/ | Yield/ | Yield/ | Yield/ | |||||||||||||||||
2022 | Rate | 2022 | Rate | 2021 | Rate | 2022 | Rate | 2021 | Rate | ||||||||||||
NET INTEREST MARGIN | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Loans and leases, excluding PPP loans (FTE)(1)(3) | $ | 7,486,822 | 4.76 | % | $ | 7,254,594 | 4.30 | % | $ | 6,680,346 | 3.73 | % | $ | 7,151,998 | 4.20 | % | $ | 6,464,446 | 3.80 | % | |
PPP Loans | 4,530 | 2.89 | % | 7,196 | 14.61 | % | 111,544 | 14.44 | % | 20,626 | 12.91 | % | 312,746 | 7.41 | % | ||||||
Securities and interest-bearing bank deposits (FTE) (1) | 1,286,561 | 2.08 | % | 1,446,315 | 1.92 | % | 1,878,755 | 1.46 | % | 1,567,266 | 1.78 | % | 1,809,417 | 1.46 | % | ||||||
Total Interest-Earning Assets (FTE) (1) | 8,777,913 | 4.36 | % | 8,708,105 | 3.92 | % | 8,670,645 | 3.38 | % | 8,739,890 | 3.79 | % | 8,586,609 | 3.43 | % | ||||||
Noninterest-earning assets | 863,049 | 825,989 | 815,872 | 835,343 | 807,455 | ||||||||||||||||
Total Assets | $ | 9,640,962 | $ | 9,534,094 | $ | 9,486,517 | $ | 9,575,233 | $ | 9,394,064 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||
Interest-bearing demand and savings deposits | $ | 4,884,236 | 0.29 | % | $ | 4,952,279 | 0.07 | % | $ | 4,882,318 | 0.06 | % | $ | 4,970,835 | 0.11 | % | $ | 4,812,004 | 0.07 | % | |
Time deposits | 345,749 | 0.57 | % | 336,346 | 0.24 | % | 395,444 | 0.31 | % | 352,622 | 0.34 | % | 449,452 | 0.49 | % | ||||||
Short-term borrowings | 264,987 | 2.86 | % | 102,073 | 0.19 | % | 126,695 | 0.07 | % | 144,834 | 1.38 | % | 119,801 | 0.08 | % | ||||||
Long-term borrowings | 181,333 | 4.96 | % | 181,596 | 4.94 | % | 182,371 | 4.91 | % | 181,724 | 4.96 | % | 200,961 | 4.70 | % | ||||||
Total Interest-Bearing Liabilities | 5,676,305 | 0.58 | % | 5,572,294 | 0.24 | % | 5,586,828 | 0.23 | % | 5,650,015 | 0.31 | % | 5,582,218 | 0.27 | % | ||||||
Noninterest-bearing deposits | 2,729,716 | 2,746,258 | 2,652,812 | 2,708,580 | 2,580,460 | ||||||||||||||||
Other liabilities | 193,685 | 152,208 | 130,373 | 147,871 | 130,007 | ||||||||||||||||
Shareholders' equity | 1,041,256 | 1,063,334 | 1,116,504 | 1,068,767 | 1,101,379 | ||||||||||||||||
Total Noninterest-Bearing Funding Sources | 3,964,657 | 3,961,800 | 3,899,689 | 3,925,218 | 3,811,846 | ||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 9,640,962 | $ | 9,534,094 | $ | 9,486,517 | $ | 9,575,233 | $ | 9,394,064 | |||||||||||
Net Interest Margin (FTE) (annualized)(1) | 3.99 | % | 3.76 | % | 3.23 | % | 3.58 | % | 3.26 | % |
CONSOLIDATED FINANCIAL DATA | |||||||||
Unaudited | |||||||||
(dollars in thousands) | |||||||||
2022 | 2022 | 2021 | |||||||
Loan and Lease Portfolio Detail | |||||||||
Commercial Loan and Lease Portfolio: | |||||||||
Commercial, financial, agricultural and other | $ | 1,127,778 | $ | 1,120,499 | $ | 1,102,154 | |||
Paycheck Protection Program | 4,254 | 4,930 | 71,298 | ||||||
Commercial real estate | 2,425,012 | 2,393,276 | 2,251,097 | ||||||
Equipment Finance loans and leases | 79,674 | 43,777 | — | ||||||
Real estate construction | 395,439 | 326,539 | 382,764 | ||||||
Total Commercial | 4,032,157 | 3,889,021 | 3,807,313 | ||||||
Consumer Loan Portfolio: | |||||||||
Closed-end mortgages | 1,682,092 | 1,631,655 | 1,368,816 | ||||||
Home equity lines of credit | 512,577 | 522,249 | 551,434 | ||||||
Real estate construction | 117,662 | 96,151 | 111,692 | ||||||
2,312,331 | 2,250,055 | 2,031,942 | |||||||
Auto & RV loans | 1,210,451 | 1,120,838 | 901,280 | ||||||
Direct installment | 31,938 | 33,528 | 40,937 | ||||||
Personal lines of credit | 51,514 | 51,514 | 52,809 | ||||||
Student loans | 3,752 | 3,961 | 4,949 | ||||||
Total Other Consumer | 1,297,655 | 1,209,841 | 999,975 | ||||||
Total Consumer Portfolio | 3,609,986 | 3,459,896 | 3,031,917 | ||||||
Total Portfolio Loans and Leases | 7,642,143 | 7,348,917 | 6,839,230 | ||||||
Loans held for sale | 11,869 | 13,811 | 18,583 | ||||||
Total Loans and Leases | $ | 7,654,012 | $ | 7,362,728 | $ | 6,857,813 | |||
2022 | 2022 | 2021 | |||||||
ASSET QUALITY DETAIL | |||||||||
Nonperforming Loans: | |||||||||
Loans on nonaccrual basis | $ | 20,193 | $ | 20,495 | $ | 34,926 | |||
Loans held for sale on a nonaccrual basis | — | — | — | ||||||
Troubled debt restructured loans on nonaccrual basis | 8,852 | 8,981 | 13,134 | ||||||
Troubled debt restructured loans on accrual basis | 6,442 | 6,216 | 7,120 | ||||||
Total Nonperforming Loans | $ | 35,487 | $ | 35,692 | $ | 55,180 | |||
Other real estate owned ("OREO") | 534 | 322 | 642 | ||||||
Repossessions ("Repos") | 454 | 600 | 397 | ||||||
Total Nonperforming Assets | $ | 36,475 | $ | 36,614 | $ | 56,219 | |||
Loans past due in excess of 90 days and still accruing | 1,991 | 1,548 | 1,606 | ||||||
Classified loans | 44,447 | 45,656 | 77,563 | ||||||
Criticized loans | 132,863 | 139,258 | 198,126 | ||||||
Nonperforming assets as a percentage of total loans and leases, plus OREO and Repos(4) | 0.48 | % | 0.50 | % | 0.82 | % | |||
Allowance for credit losses | $ | 102,906 | $ | 96,093 | $ | 92,522 | |||
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands) |
For the Three Months Ended | For the Years Ended | |||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net Charge-offs (Recoveries): | ||||||||||||||||
Commercial, financial, agricultural and other | $ | 444 | $ | 698 | $ | (1,633 | ) | $ | 1,967 | $ | 4,590 | |||||
Real estate construction | — | (9 | ) | (11 | ) | (9 | ) | (146 | ) | |||||||
Commercial real estate | 182 | 1,003 | (5 | ) | 1,718 | 1,524 | ||||||||||
Residential real estate | 32 | 36 | 20 | 152 | (159 | ) | ||||||||||
Loans to individuals | 1,356 | 733 | 565 | 3,309 | 2,601 | |||||||||||
Net Charge-offs | $ | 2,014 | $ | 2,461 | $ | (1,064 | ) | $ | 7,137 | $ | 8,410 | |||||
Net charge-offs as a percentage of average loans outstanding (annualized)(4) | 0.11 | % | 0.13 | % | (0.06)% | 0.10 | % | 0.12 | % | |||||||
Net charge-offs as a percentage of average loans outstanding, excluding PPP loans (annualized)(4) | 0.11 | % | 0.13 | % | (0.06)% | 0.10 | % | 0.13 | % | |||||||
Provision for credit losses as a percentage of net charge-offs | 452.83 | % | 240.67 | % | 256.48 | % | 295.73 | % | (16.36)% | |||||||
Provision for credit losses | $ | 9,120 | $ | 5,923 | $ | (2,729 | ) | $ | 21,106 | $ | (1,376 | ) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
Note: Management believes that it is standard practice in the banking industry to present these non-GAAP measures. These measures provide useful information to management and investors by allowing them to make peer comparisons. | |||||||||||
(1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the federal income tax statutory rate of 21%. | |||||||||||
(2) Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles, unfunded commitment expense and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs. | |||||||||||
(3) Includes held for sale loans. | |||||||||||
(4) Excludes held for sale loans. | |||||||||||
For the Three Months Ended | For the Years Ended | ||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||
Interest income | $ | 96,281 | $ | 85,700 | $ | 73,530 | $ | 329,953 | $ | 293,838 | |
Adjustment to fully taxable equivalent basis (1) | 290 | 261 | 266 | 1,049 | 1,100 | ||||||
Interest income adjusted to fully taxable equivalent basis (non-GAAP) | 96,571 | 85,961 | 73,796 | 331,002 | 294,938 | ||||||
Interest expense | 8,254 | 3,340 | 3,276 | 17,732 | 15,297 | ||||||
Net interest income, (FTE) (1) | $ | 88,317 | $ | 82,621 | $ | 70,520 | $ | 313,270 | $ | 279,641 |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands, except per share data) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net Income | $ | 35,733 | $ | 33,968 | $ | 34,776 | $ | 128,181 | $ | 138,257 | ||||||
Intangible amortization | 726 | 746 | 900 | 3,196 | 3,497 | |||||||||||
Tax benefit of amortization of intangibles | (152 | ) | (157 | ) | (189 | ) | (671 | ) | (734 | ) | ||||||
Net Income, adjusted for tax affected amortization of intangibles | $ | 36,307 | $ | 34,557 | $ | 35,487 | $ | 130,706 | $ | 141,020 | ||||||
Average Tangible Equity: | ||||||||||||||||
Total shareholders' equity | $ | 1,041,256 | $ | 1,063,334 | $ | 1,116,504 | $ | 1,068,767 | $ | 1,101,379 | ||||||
Less: intangible assets | 312,634 | 313,336 | 314,860 | 313,451 | 315,589 | |||||||||||
Tangible Equity | 728,622 | 749,998 | 801,644 | 755,316 | 785,790 | |||||||||||
Less: preferred stock | — | — | — | — | — | |||||||||||
Tangible Common Equity | $ | 728,622 | $ | 749,998 | $ | 801,644 | $ | 755,316 | $ | 785,790 | ||||||
(8)Return on Average Tangible Common Equity | 19.77 | % | 18.28 | % | 17.56 | % | 17.30 | % | 17.95 | % | ||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Core Net Income: | ||||||||||||||||
Total Net Income | $ | 35,733 | $ | 33,968 | $ | 34,776 | $ | 128,181 | $ | 138,257 | ||||||
Net securities gains | — | — | — | (2 | ) | (16 | ) | |||||||||
Tax benefit of net securities gains | — | — | — | — | 3 | |||||||||||
Merger & acquisition related expenses | 1,254 | 448 | — | 1,702 | — | |||||||||||
Tax benefit of merger & acquisition related expenses | (263 | ) | (94 | ) | — | (357 | ) | — | ||||||||
COVID-19 related | 33 | 39 | 92 | 151 | 449 | |||||||||||
Tax benefit of COVID 19 related | (7 | ) | (8 | ) | (19 | ) | (32 | ) | (94 | ) | ||||||
Branch consolidation related | — | — | (121 | ) | (104 | ) | (103 | ) | ||||||||
Tax benefit of bank consolidation related expenses | — | — | 25 | 22 | 22 | |||||||||||
(5) Core net income | $ | 36,750 | $ | 34,353 | $ | 34,753 | $ | 129,561 | $ | 138,518 | ||||||
Average Shares Outstanding Assuming Dilution | 93,489,398 | 93,450,259 | 95,020,353 | 93,887,447 | 95,840,285 | |||||||||||
(6) Core Earnings per common share (diluted) | $ | 0.39 | $ | 0.37 | $ | 0.37 | $ | 1.38 | $ | 1.45 | ||||||
Intangible amortization | 726 | 746 | 900 | 3,196 | 3,497 | |||||||||||
Tax benefit of amortization of intangibles | (152 | ) | (157 | ) | (189 | ) | (671 | ) | (734 | ) | ||||||
Core Net Income, adjusted for tax affected amortization of intangibles | $ | 37,324 | $ | 34,942 | $ | 35,464 | $ | 132,086 | $ | 141,281 | ||||||
(9) Core Return on Average Tangible Common Equity | 20.32 | % | 18.48 | % | 17.55 | % | 17.49 | % | 17.98 | % |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands, except per share data) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Core Return on Average Assets: | ||||||||||||||||
Total Net Income | $ | 35,733 | $ | 33,968 | $ | 34,776 | $ | 128,181 | $ | 138,257 | ||||||
Total Average Assets | 9,640,962 | 9,534,094 | 9,486,517 | 9,575,233 | 9,394,064 | |||||||||||
Return on Average Assets | 1.47 | % | 1.41 | % | 1.45 | % | 1.34 | % | 1.47 | % | ||||||
Core Net Income (5) | $ | 36,750 | $ | 34,353 | $ | 34,753 | $ | 129,561 | $ | 138,518 | ||||||
Total Average Assets | 9,640,962 | 9,534,094 | 9,486,517 | 9,575,233 | 9,394,064 | |||||||||||
(7) Core Return on Average Assets | 1.51 | % | 1.43 | % | 1.45 | % | 1.35 | % | 1.47 | % |
For the Three Months Ended | For the Years Ended | |||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Core Efficiency Ratio: | ||||||||||||||||
Total Noninterest Expense | $ | 58,334 | $ | 59,901 | $ | 55,428 | $ | 229,638 | $ | 213,857 | ||||||
Adjustments to Noninterest Expense: | ||||||||||||||||
Intangible amortization | 726 | 746 | 900 | 3,196 | 3,497 | |||||||||||
Merger and acquisition related | 1,254 | 448 | — | 1,702 | — | |||||||||||
COVID-19 related | 33 | 39 | 92 | 151 | 449 | |||||||||||
Branch consolidation related | — | — | (121 | ) | (104 | ) | (103 | ) | ||||||||
Noninterest Expense - Core | $ | 56,321 | $ | 58,668 | $ | 54,557 | $ | 224,693 | $ | 210,014 | ||||||
Net interest income, (FTE) | $ | 88,317 | $ | 82,621 | $ | 70,520 | $ | 313,270 | $ | 279,641 | ||||||
Total noninterest income | 24,309 | 25,914 | 26,071 | 98,708 | 106,757 | |||||||||||
Net securities gains | — | — | — | (2 | ) | (16 | ) | |||||||||
Total Revenue | 112,626 | 108,535 | 96,591 | 411,976 | 386,382 | |||||||||||
Adjustments to Revenue: | ||||||||||||||||
Derivative mark-to-market | (27 | ) | 6 | 973 | 368 | 2,344 | ||||||||||
Total Revenue - Core | $ | 112,653 | $ | 108,529 | $ | 95,618 | $ | 411,608 | $ | 384,038 | ||||||
(10) Core Efficiency Ratio | 50.00 | % | 54.06 | % | 57.06 | % | 54.59 | % | 54.69 | % |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | |||||||||
2022 | 2022 | 2021 | |||||||
Tangible Equity: | |||||||||
Total shareholders' equity | $ | 1,052,074 | $ | 1,022,575 | $ | 1,109,372 | |||
Less: intangible assets | 312,533 | 312,950 | 314,516 | ||||||
Tangible Equity | 739,541 | 709,625 | 794,856 | ||||||
Less: preferred stock | — | — | — | ||||||
Tangible Common Equity | $ | 739,541 | $ | 709,625 | $ | 794,856 | |||
Tangible Assets: | |||||||||
Total assets | $ | 9,805,666 | $ | 9,578,630 | $ | 9,545,093 | |||
Less: intangible assets | 312,533 | 312,950 | 314,516 | ||||||
Tangible Assets | $ | 9,493,133 | $ | 9,265,680 | $ | 9,230,577 | |||
Less: PPP loans | 4,254 | 4,930 | 71,298 | ||||||
Tangible Assets, excluding PPP loans | $ | 9,488,879 | $ | 9,260,750 | $ | 9,159,279 | |||
(12)Tangible Common Equity as a percentage of Tangible Assets | 7.79 | % | 7.66 | % | 8.61 | % | |||
(12)Tangible Common Equity as a percentage of Tangible Assets, excluding PPP loans | 7.79 | % | 7.66 | % | 8.68 | % | |||
Shares Outstanding at End of Period | 93,376,314 | 93,377,064 | 94,233,152 | ||||||
(11)Tangible Book Value Per Common Share | $ | 7.92 | $ | 7.60 | $ | 8.43 |
For the Three Months Ended | For the Years Ended | |||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||
Pre-tax pre-provision income: | ||||||||||||||
Net interest income | $ | 88,027 | $ | 82,360 | $ | 70,254 | $ | 312,221 | $ | 278,541 | ||||
Noninterest income | 24,309 | 25,914 | 26,071 | 98,708 | 106,757 | |||||||||
Noninterest expense | 58,334 | 59,901 | 55,428 | 229,638 | 213,857 | |||||||||
Pre-tax pre-provision income | $ | 54,002 | $ | 48,373 | $ | 40,897 | $ | 181,291 | $ | 171,441 | ||||
Net securities gains | $ | — | $ | — | $ | — | $ | (2 | ) | $ | (16 | ) | ||
Merger and acquisition related expenses | 1,254 | 448 | 0 | 1,702 | 0 | |||||||||
COVID-19 related | 33 | 39 | 92 | 151 | 449 | |||||||||
Branch consolidation | — | — | (121 | ) | (104 | ) | (103 | ) | ||||||
Core pre-tax pre-provision income | $ | 55,289 | $ | 48,860 | $ | 40,868 | $ | 183,038 | $ | 171,771 | ||||
Net charge-offs | $ | 2,014 | $ | 2,461 | $ | (1,064 | ) | $ | 7,137 | $ | 8,410 |
CONSOLIDATED FINANCIAL DATA |
Unaudited |
(dollars in thousands) |
DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
For the Three Months Ended | For the Years Ended | |||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Core Net Interest Margin: | ||||||||||||||||
Net Interest Income (FTE) | $ | 88,317 | $ | 82,621 | $ | 70,520 | $ | 313,270 | $ | 279,641 | ||||||
Less: Income from PPP Loans | 33 | 265 | 4,059 | 2,663 | 23,184 | |||||||||||
Less: Income from Excess Cash | 302 | 538 | 100 | 1,660 | 390 | |||||||||||
Core Net Interest Income (FTE) | $ | 87,982 | $ | 81,818 | $ | 66,361 | $ | 308,947 | $ | 256,067 | ||||||
Average Interest-Earning Assets | $ | 8,777,913 | $ | 8,708,105 | $ | 8,670,645 | $ | 8,739,890 | $ | 8,586,609 | ||||||
Less: PPP Loans | 4,530 | 7,196 | 111,544 | 20,626 | 312,746 | |||||||||||
Less: Excess Cash | 27,091 | 99,707 | 241,426 | 181,568 | 309,626 | |||||||||||
Core Average Interest-Earning Assets | $ | 8,746,292 | $ | 8,601,202 | $ | 8,317,675 | $ | 8,537,696 | $ | 7,964,237 | ||||||
Core Net Interest Margin (Non-GAAP) | 3.99 | % | 3.77 | % | 3.17 | % | 3.62 | % | 3.22 | % |
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