Cadence Bank Announces First Quarter 2025 Financial Results

, /PRNewswire/ -- Cadence Bank (NYSE: CADE) (the Company), today announced financial results for the quarter ended March 31, 2025.Highlights for the first quarter of 2025 included: Cadence Bank 2025 Q1 Earnings Fact sheet Reported quarterly net income available to common shareholders of $130.9 million, or $0.70 per diluted common share, and adjusted net income available to common shareholders(1) of $131.4 million, or $0.71 per diluted common share. Improved return on average assets to 1.15%, up 18 basis points from the first quarter of 2024 and up 3 basis points from the fourth quarter of 2024. Achieved quarterly adjusted pre-tax pre-provision net revenue (PPNR)(1) of $189.9 million, an increase of $5.9 million compared to the fourth quarter of 2024 and an increase of $15.7 million, or 9.0%, from the first quarter of 2024. Generated net organic loan growth of $309.9 million for the first quarter of 2025, or 3.7% on an annualized basis; core customer deposit balances, which exclude brokered and public fund deposits, remained stable and were flat linked quarter. Improved net interest margin to 3.46%, up 8 basis points compared to the fourth quarter of 2024. Adjusted noninterest expense(1) declined $8.1 million, or 3.0%, linked quarter driving improvement in the adjusted efficiency ratio(1) to 57.6% for the quarter. Maintained strong regulatory capital with Common Equity Tier 1 Capital of 12.4% and Total Capital of 14.1%. Received all required regulatory and shareholder approvals to complete proposed merger with FCB Financial Corp., the bank holding company for First Chatham Bank in Savannah, Georgia. The transaction is expected to close May 1, 2025, subject to customary closing conditions. "Our first quarter results reflect a number of key accomplishments related to our financial performance and strategic growth efforts," remarked Dan Rollins, Chairman and Chief Executive Officer of Cadence Bank. "We reported strong earnings driven by improved operating leverage and further expanded our net interest margin. Despite the recent economic volatility, we also captured nice organic loan growth while maintaining stable credit quality. Importantly, we received all necessary regulatory approvals related to our pending merger with First Chatham Bank in a very short timeframe, allowing us to quickly close and begin expanding our Company's presence in Savannah and other surrounding markets in Georgia."Earnings SummaryFor the first quarter of 2025, the Company reported net income available to common shareholders of $130.9 million, or $0.70 per diluted common share, compared to $114.6 million, or $0.62 per diluted common share, for the first quarter of 2024 and $130.3 million, or $0.70 per diluted common share, for the fourth quarter of 2024. Adjusted net income available to common shareholders(1) was $131.4 million, or $0.71 per diluted common share, for the first quarter of 2025, compared with $114.4 million, or $0.62 per diluted common share, for the first quarter of 2024 and $130.0 million, or $0.70 per diluted common share, for the fourth quarter of 2024.Return on average assets was 1.15% for the first quarter of 2025, improved from both 0.97% for the first quarter of 2024 and 1.12% for the fourth quarter of 2024. Additionally, the Company reported adjusted PPNR(1) of $189.9 million, or 1.63% of average assets on an annualized basis, for the first quarter of 2025, which represents an increase of $5.9 million or 3.2% compared to the fourth quarter of 2024, and an increase of $15.7 million or 9.0% compared to the same quarter of 2024.Net Interest RevenueNet interest revenue was $363.2 million for the first quarter of 2025, compared to $353.9 million for the first quarter of 2024 and $364.5 million for the fourth quarter of 2024. The net interest margin (fully taxable equivalent) improved to 3.46% for the first quarter of 2025, compared with 3.22% for the first quarter of 2024 and 3.38% for the fourth quarter of 2024.Net interest revenue declined $1.4 million compared to the fourth quarter of 2024 due to fewer number of days in the first quarter of 2025 and a slightly smaller average balance sheet. Purchase accounting accretion revenue was $2.6 million for the first quarter of 2025 compared with $2.4 million for the fourth quarter of 2024. Average earning assets declined slightly to $42.6 billion, as growth in average loans of $482.5 million was offset by lower linked quarter average cash and securities balances as the Company paid off the Bank Term Funding Program balances and called a subordinated-debt issuance in the fourth quarter of 2024.Yield on net loans, loans held for sale and leases, excluding accretion, was 6.30% for the first quarter of 2025, down 10 basis points from 6.40% for the fourth quarter of 2024, reflecting the full quarter's impact of the December rate cut as well as new origination loan mix. Investment securities yielded 3.00% in the first quarter of 2025, down slightly from 3.04% for the fourth quarter of 2024. The yield on total interest earning assets was 5.71% for the first quarter of 2025 compared with 5.76% for the fourth quarter of 2024.The average cost of total deposits of 2.35% for the first quarter of 2025 declined by 9 basis points from 2.44% for the fourth quarter of 2024. The decline in the cost of deposits was driven by the full quarter's impact of the December rate cut on interest bearing deposits and repricing time deposits, combined with a stable funding mix. Total cost of interest-bearing liabilities declined 20 basis points to 2.97% for the first quarter of 2025 compared to 3.17% for the fourth quarter of 2024, benefiting from declining deposit costs as well as the payoff of the Bank Term Funding Program and the subordinated debt call in the fourth quarter of 2024.Balance Sheet ActivityLoans and leases, net of unearned income, increased to $34.1 billion at March 31, 2025 compared to $33.7 billion at December 31, 2024. Net loan growth of $309.9 million, or 3.7% annualized, for the first quarter of 2025 was driven primarily by growth in our mortgage, community banking, and private banking segments, while corporate banking was relatively flat quarter over quarter.Total deposits were $40.3 billion as of March 31, 2025, declining $0.2 billion from $40.5 billion at the end of the fourth quarter of 2024. This decline was driven primarily by a decline in brokered deposits, partially offset by a nominal seasonal increase in public fund deposits. The March 31, 2025 loan to deposit ratio was 84.4%. Noninterest bearing deposits remained stable at 21.2% of total deposits at the end of the first quarter of 2025 compared to December 31, 2024. Borrowed funds increased $0.8 billion during the first quarter of 2025 compared to December 31, 2024, supporting the purchase of additional investment securities. The borrowed funds increase was in FHLB borrowings with maturities generally ranging between six months and two years.Total investment securities increased $0.6 billion from December 31, 2024 to $7.9 billion at March 31, 2025, representing 16.6% of total assets. Cash, due from balances and deposits at the Federal Reserve of $1.6 billion at March 31, 2025 was relatively flat compared to $1.7 billion at December 31, 2024.Credit Results, Provision for Credit Losses and Allowance for Credit LossesCredit metrics for the first quarter of 2025 reflected continued overall stability in credit quality. Net charge-offs for the first quarter of 2025 were $23.0 million, or 0.27% of average net loans and leases on an annualized basis, compared with 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 and net charge-offs of $14.1 million, or 0.17% of average net loans and leases on an annualized basis, for the fourth quarter of 2024. The linked quarter increase was driven primarily by one C&I credit that was previously identified and reserved for in a prior quarter. The provision for credit losses for the first quarter of 2025 was $20.0 million, compared with $22.0 million for the first quarter of 2024 and $15.0 million for the fourth quarter of 2024. The allowance for credit losses of $457.8 million at March 31, 2025 was 1.34% of total loans and leases compared to 1.37% of total loans and leases at December 31, 2024 and 1.44% of total loans and leases at March 31, 2024.Total nonperforming assets as a percent of total assets were 0.51% at March 31, 2025 compared to 0.51% at March 31, 2024 and 0.58% at December 31, 2024. Total nonperforming loans and leases as a percent of loans and leases, net were 0.69% at March 31, 2025 compared to 0.73% at March 31, 2024 and 0.78% at December 31, 2024. Other real estate owned and other repossessed assets was $8.5 million at March 31, 2025 compared to the March 31, 2024 balance of $5.3 million and the December 31, 2024 balance of $5.8 million. Criticized loans represented 2.39% of loans at March 31, 2025 compared to 2.64% at March 31, 2024 and 2.35% at December 31, 2024, while classified loans were 1.95% at March 31, 2025 compared to 2.19% at March 31, 2024 and 2.02% at December 31, 2024. Noninterest RevenueNoninterest revenue was $85.4 million for the first quarter of 2025 compared with $83.8 million for the first quarter of 2024 and $86.2 million for the fourth quarter of 2024. Adjusted noninterest revenue(1) had no significant adjustments for the quarters presented.Noninterest revenue declined slightly compared to the fourth quarter of 2024, with improvements in mortgage banking revenue offset by a decline in other noninterest revenue as well as service charge and card revenues that were impacted by day count. Wealth management revenue was $23.3 million for the first quarter of 2025, down slightly from $24.0 million for the fourth quarter of 2024 due to market conditions. Credit card, debit card and merchant fee revenue was $12.0 million for the first quarter of 2025, compared with $12.7 million for the fourth quarter of 2024 and reflective of typical softer first quarter card activity. Deposit service charge revenue was $17.7 million for the first quarter of 2025, compared to $18.7 million for the fourth quarter of 2024, partially impacted by fewer number of days.Mortgage banking revenue totaled $6.6 million for the first quarter of 2025, compared to $6.4 million for the first quarter of 2024 and $3.6 million for the fourth quarter of 2024. The $3.1 million improvement during the linked quarter was primarily due to seasonally higher mortgage production and servicing revenue.Other noninterest revenue was $25.8 million for the first quarter of 2025, down from $27.3 million for the fourth quarter of 2024, with the $1.5 million decline impacted by lower credit related fees and other miscellaneous revenues.Noninterest ExpenseNoninterest expense for the first quarter of 2025 was $259.3 million, compared with $263.2 million for the first quarter of 2024 and $266.2 million for the fourth quarter of 2024. Adjusted noninterest expense(1) for the first quarter of 2025 was $258.6 million, compared with $263.5 million for the first quarter of 2024 and $266.7 million for the fourth quarter of 2024. Adjusted noninterest expense for the first quarter of 2025 excludes an insignificant amount of merger expense and incremental merger related expense. The adjusted efficiency ratio(1) was 57.6% for the first quarter of 2025, compared to 60.1% for the first quarter of 2024 and 59.1% for the fourth quarter of 2024.The $8.1 million, or 3.0%, linked quarter decline in adjusted noninterest expense(1) was driven primarily by declines in data processing and software expense as well as other noninterest expense, partially offset by small increase in various other expense categories. Data processing and software expense declined $6.1 million in the first quarter of 2025 compared to the fourth quarter of 2024, primarily as a result of the fourth quarter expenses associated with technology investments including enhancements to the Company's treasury management platform. Other noninterest expense decreased $3.0 million in the first quarter of 2025 compared to the fourth quarter of 2024 driven by declines in various items including advertising/public relations and legal expense.Capital ManagementTotal shareholders' equity was $5.7 billion at March 31, 2025, up from $5.2 billion at March 31, 2024 and $5.6 billion at December 31, 2024. Estimated regulatory capital ratios at March 31, 2025 included Common Equity Tier 1 capital of 12.4%, Tier 1 capital of 12.9%, Total risk-based capital of 14.1%, and Tier 1 leverage capital of 10.6%. During the first quarter of 2025, the Company did not repurchase any shares of Company common stock. Outstanding common shares were 184.0 million as of March 31, 2025.SummaryRollins concluded, "Our team remains excited about the opportunity to build on our accomplishments and momentum. Our relentless focus on customer service, quality growth and enhanced operating efficiency has resulted in continued improvement in our profitability and financial performance. We look forward to building on this success throughout 2025 and beyond as we focus on our company's vision of helping people, companies and communities prosper."Key TransactionsOn January 22, 2025, the Company announced the signing of a definitive merger agreement with FCB Financial Corp., the bank holding company for First Chatham Bank, (collectively referred to as "First Chatham"), pursuant to which First Chatham will be merged with and into the Company. First Chatham is a Savannah, Georgia-based community bank operating eight branches across the Greater Savannah Area. As of December 31, 2024, First Chatham reported total assets of $589 million, total loans of $326 million, and total deposits of $507 million. Under the terms of the definitive merger agreement, the Company will issue approximately 2,300,000 shares of common stock plus $23.1 million in cash for all outstanding shares of First Chatham. The Company has received all required regulatory and shareholder approvals related to the transaction. Subject to the satisfaction of all closing conditions, the merger is expected to close May 1, 2025, although the Company can provide no assurance that the merger will close on this date or at all.Conference Call and WebcastThe Company will conduct a conference call to discuss its first quarter 2025 financial results on April 22, 2025, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing http://ir.cadencebank.com/events. The webcast will also be available in archived format at the same address.About Cadence BankCadence Bank (NYSE: CADE) is a $50 billion regional financial services company committed to helping people, companies and communities prosper. With more than 350 locations spanning the South and Texas, Cadence offers comprehensive banking, investment, trust and mortgage products and services to meet the needs of individuals, businesses and corporations. Accolades include being recognized as one of the nation's best employers by Forbes and U.S. News & World Report and a 2025 America's Best Banks by Forbes. Cadence maintains dual headquarters in Houston, Texas and Tupelo, Mississippi, and has dutifully served customers for nearly 150 years. Learn more at www.cadencebank.com. Cadence Bank, Member FDIC. Equal Housing Lender.(1) Considered a non-GAAP financial measure. A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears in Table 14 "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 20 of this news release. Forward-Looking StatementsCertain statements made in this news release constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor under the Private Securities Litigation Reform Act of 1995 as well as the "bespeaks caution" doctrine. These statements are often, but not exclusively, made through the use of words or phrases like "assume," "believe," "budget," "contemplate," "continue," "could," "foresee," "indicate," "may," "might," "outlook," "prospect," "potential," "roadmap," "should," "target," "will," "would," the negative versions of such words, or comparable words of a future or forward-looking nature. These forward-looking statements may include, without limitation, discussions regarding general economic, interest rate, trade, real estate market, competitive, employment, and credit market conditions, or any of the Company's comments related to topics in its risk disclosures or results of operations as well as the impact of the Company's pending acquisition of FCB Financial Corp. and First Chatham Bank 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, trade, credit market and real estate market conditions, including inflation, and the effect of such conditions on customers, potential customers, assets, investments and liquidity; risks arising from market and consumer reactions to the general banking environment, or to conditions or situations at specific banks; risks arising from media coverage of the banking industry; 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; uncertainties surrounding the impact of the U.S.'s proposed tariffs, including potential negative impact to our loan portfolio and profitability, potential for increases in problem loans, potential re-evaluation of credit marks and interest rates, and lower equity valuation and potential slowdown in capital markets; uncertain duration of trade conflicts; magnitude of the impact that the proposed tariffs may have on our customers' businesses; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; uncertainties surrounding the functionality of the federal government; potential delays or other problems in implementing and executing the Company's growth, expansion, acquisition, or divestment strategies, including delays in obtaining regulatory or other necessary approvals, or the failure to realize any anticipated benefits or synergies from any acquisitions, growth, or divestment strategies; the ability to pay dividends on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; changes in legal, financial, accounting, and/or regulatory requirements (including those related to stock repurchases); 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 U.S.'s proposed tariffs and international trade conflicts, Russia's military action in Ukraine, the escalating conflicts in the Middle East, and additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments.The Company also faces risks from: possible adverse rulings, judgments, settlements or other outcomes of pending, ongoing and future litigation, as well as governmental, administrative and investigatory matters; the impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; the diversion of management's attention from ongoing business operations and opportunities; and the Company's success in executing its business plans and strategies, and managing the risks involved in all of the foregoing.The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with its primary federal regulator, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, particularly those under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q under the heading "Part II-Item 1A. Risk Factors," and in the Company's Current Reports on Form 8-K.Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, except as required by applicable law. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section. Table 1 Selected Financial Data Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 Earnings Summary: Interest revenue $ 599,257 $ 620,321 $ 647,713 $ 642,210 $ 637,113 Interest expense 236,105 255,790 286,255 285,892 283,205 Net interest revenue 363,152 364,531 361,458 356,318 353,908 Provision for credit losses 20,000 15,000 12,000 22,000 22,000 Net interest revenue, after provision for credit losses 343,152 349,531 349,458 334,318 331,908 Noninterest revenue 85,387 86,165 85,901 100,658 83,786 Noninterest expense 259,349 266,186 259,438 256,697 263,207 Income before income taxes 169,190 169,510 175,921 178,279 152,487 Income tax expense 35,968 36,795 39,482 40,807 35,509 Net income 133,222 132,715 136,439 137,472 116,978 Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 Net income available to common shareholders $ 130,850 $ 130,343 $ 134,067 $ 135,100 $ 114,606 Balance Sheet - Period End Balances Total assets $ 47,743,294 $ 47,019,190 $ 49,204,933 $ 47,984,078 $ 48,313,863 Total earning assets 43,172,997 42,386,627 44,834,897 43,525,688 43,968,692 Available for sale securities 7,912,159 7,293,988 7,841,685 7,921,422 8,306,589 Loans and leases, net of unearned income 34,051,610 33,741,755 33,303,972 33,312,773 32,882,616 Allowance for credit losses (ACL) 457,791 460,793 460,859 470,022 472,575 Net book value of acquired loans 4,365,789 4,783,206 5,521,000 5,543,419 6,011,007 Unamortized net discount on acquired loans 13,060 15,611 17,988 20,874 23,715 Total deposits 40,335,728 40,496,201 38,844,360 37,858,659 38,120,226 Total deposits and repurchase agreements 40,355,399 40,519,817 38,861,324 37,913,693 38,214,616 Other short-term borrowings 235,000 — 3,500,000 3,500,000 3,500,000 Subordinated and long-term borrowings 560,690 10,706 225,823 269,353 430,123 Total shareholders' equity 5,718,541 5,569,683 5,572,863 5,287,758 5,189,932 Total shareholders' equity, excluding AOCI (1) 6,339,744 6,264,178 6,163,205 6,070,220 5,981,265 Common shareholders' equity 5,551,548 5,402,690 5,405,870 5,120,765 5,022,939 Common shareholders' equity, excluding AOCI (1) $ 6,172,751 $ 6,097,185 $ 5,996,212 $ 5,903,227 $ 5,814,272 Balance Sheet - Average Balances Total assets $ 47,135,431 $ 47,263,538 $ 47,803,977 $ 48,192,719 $ 48,642,540 Total earning assets 42,637,002 42,920,125 43,540,045 43,851,822 44,226,077 Available for sale securities 7,302,172 7,636,683 7,915,636 8,033,552 8,269,708 Loans and leases, net of unearned income 33,944,416 33,461,931 33,279,819 32,945,526 32,737,574 Total deposits 40,353,292 39,743,224 37,634,453 38,100,087 38,421,272 Total deposits and repurchase agreements 40,376,248 39,761,277 37,666,828 38,165,908 38,630,620 Other short-term borrowings 108,389 905,815 3,512,218 3,500,000 3,500,000 Subordinated and long-term borrowings 129,030 123,442 265,790 404,231 434,579 Total shareholders' equity 5,651,592 5,589,361 5,420,826 5,207,254 5,194,048 Common shareholders' equity $ 5,484,599 $ 5,422,368 $ 5,253,833 $ 5,040,261 $ 5,027,055 Nonperforming Assets: Nonperforming loans and leases (NPL) (2) (3) 235,952 264,692 272,954 216,746 241,007 Other real estate owned and other assets 8,452 5,754 5,354 4,793 5,280 Nonperforming assets (NPA) $ 244,404 $ 270,446 $ 278,308 $ 221,539 $ 246,287 (1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 - 23. (2) At March 31, 2025, $84.3 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 Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 Financial Ratios and Other Data: Return on average assets (2) 1.15 % 1.12 % 1.14 % 1.15 % 0.97 % Adjusted return on average assets (1)(2) 1.15 1.11 1.15 1.09 0.97 Return on average common shareholders' equity (2) 9.68 9.56 10.15 10.78 9.17 Adjusted return on average common shareholders' equity (1)(2) 9.72 9.53 10.27 10.21 9.15 Return on average tangible common equity (1)(2) 13.15 13.06 14.04 15.18 12.94 Adjusted return on average tangible common equity (1)(2) 13.20 13.02 14.21 14.37 12.92 Pre-tax pre-provision net revenue to total average assets (1)(2) 1.63 1.55 1.56 1.67 1.44 Adjusted pre-tax pre-provision net revenue to total average assets (1)(2) 1.63 1.55 1.58 1.59 1.44 Net interest margin-fully taxable equivalent 3.46 3.38 3.31 3.27 3.22 Net interest rate spread-fully taxable equivalent 2.74 2.59 2.45 2.45 2.40 Efficiency ratio fully tax equivalent (1) 57.74 58.98 57.90 56.09 60.05 Adjusted efficiency ratio fully tax equivalent (1) 57.58 59.09 57.73 56.73 60.12 Loan/deposit ratio 84.42 % 83.32 % 85.74 % 87.99 % 86.26 % Full time equivalent employees 5,356 5,335 5,327 5,290 5,322 Credit Quality Ratios: Net charge-offs to average loans and leases (2) 0.27 % 0.17 % 0.26 % 0.28 % 0.24 % Provision for credit losses to average loans and leases (2) 0.24 0.18 0.14 0.27 0.27 ACL to loans and leases, net 1.34 1.37 1.38 1.41 1.44 ACL to NPL 194.02 174.09 168.84 216.85 196.08 NPL to loans and leases, net 0.69 0.78 0.82 0.65 0.73 NPA to total assets 0.51 0.58 0.57 0.46 0.51 Equity Ratios: Total shareholders' equity to total assets 11.98 % 11.85 % 11.33 % 11.02 % 10.74 % Total common shareholders' equity to total assets 11.63 11.49 10.99 10.67 10.40 Tangible common shareholders' equity to tangible assets (1) 8.87 8.67 8.28 7.87 7.60 Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI (1) 10.07 10.04 9.40 9.40 9.13 Capital Adequacy (3): Common Equity Tier 1 capital 12.4 % 12.4 % 12.3 % 11.9 % 11.7 % Tier 1 capital 12.9 12.8 12.7 12.3 12.2 Total capital 14.1 14.0 14.5 14.2 14.5 Tier 1 leverage capital 10.6 10.4 10.1 9.7 9.5 (1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 - 23. (2) Annualized. (3) Current quarter regulatory capital ratios are estimated. Table 3 Selected Financial Information Quarter Ended Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 Common Share Data: Diluted earnings per share $ 0.70 $ 0.70 $ 0.72 $ 0.73 $ 0.62 Adjusted earnings per share (1) 0.71 0.70 0.73 0.69 0.62 Cash dividends per share 0.275 0.250 0.250 0.250 0.250 Book value per share 30.16 29.44 29.65 28.07 27.50 Tangible book value per share (1) 22.30 21.54 21.68 20.08 19.48 Market value per share (last) 30.36 34.45 31.85 28.28 29.00 Market value per share (high) 36.53 40.20 34.13 29.95 30.03 Market value per share (low) 28.90 30.21 27.46 26.16 24.99 Market value per share (average) 33.13 35.17 30.96 28.14 27.80 Dividend payout ratio 39.29 % 35.71 % 34.72 % 34.25 % 40.48 % Adjusted dividend payout ratio (1) 38.73 % 35.71 % 34.25 % 36.23 % 40.32 % Total shares outstanding 184,046,420 183,527,575 182,315,142 182,430,427 182,681,325 Average shares outstanding - diluted 186,121,979 186,038,243 185,496,110 185,260,963 185,574,130 Yield/Rate: (Taxable equivalent basis) Loans, loans held for sale, and leases 6.33 % 6.42 % 6.64 % 6.59 % 6.50 % Loans, loans held for sale, and leases excluding net accretionon acquired loans and leases 6.30 6.40 6.61 6.56 6.46 Available for sale securities: Taxable 2.99 3.03 3.03 3.18 3.11 Tax-exempt 4.04 3.93 3.97 4.12 4.25 Other investments 4.42 4.77 5.37 5.45 5.48 Total interest earning assets and revenue 5.71 5.76 5.92 5.90 5.80 Deposits 2.35 2.44 2.55 2.53 2.45 Interest bearing demand and money market 2.69 2.87 3.13 3.13 3.11 Savings 0.57 0.57 0.57 0.57 0.57 Time 4.10 4.28 4.50 4.53 4.42 Total interest bearing deposits 2.96 3.12 3.30 3.28 3.21 Fed funds purchased, securities sold under agreement torepurchase and other 4.45 4.58 5.10 4.47 4.86 Short-term FHLB borrowings 4.43 — — — — Short-term BTFP borrowings — 4.77 4.77 4.77 4.84 Total interest bearing deposits and short-term borrowings 2.96 3.16 3.46 3.44 3.39 Subordinated and long-term borrowings 4.05 4.14 4.30 4.41 4.35 Total interest bearing liabilities 2.97 3.17 3.47 3.45 3.40 Interest bearing liabilities to interest earning assets 75.70 % 74.82 % 75.40 % 75.97 % 75.73 % Net interest income tax equivalent adjustment (in thousands) $ 630 $ 648 $ 694 $ 644 $ 636 (1) Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 - 23. Table 4 Consolidated Balance Sheets (Unaudited) As of (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 ASSETS Cash and due from banks $ 578,513 $ 624,884 $ 504,827 $ 516,715 $ 427,543 Interest bearing deposits with other banks and Federal funds sold 988,787 1,106,692 3,483,299 2,093,820 2,609,931 Available for sale securities, at fair value 7,912,159 7,293,988 7,841,685 7,921,422 8,306,589 Loans and leases, net of unearned income 34,051,610 33,741,755 33,303,972 33,312,773 32,882,616 Allowance for credit losses 457,791 460,793 460,859 470,022 472,575 Net loans and leases 33,593,819 33,280,962 32,843,113 32,842,751 32,410,041 Loans held for sale, at fair value 220,441 244,192 205,941 197,673 169,556 Premises and equipment, net 780,963 783,456 797,556 808,705 822,666 Goodwill 1,366,923 1,366,923 1,366,923 1,366,923 1,367,785 Other intangible assets, net 79,522 83,190 87,094 91,027 96,126 Bank-owned life insurance 654,964 651,838 652,057 648,970 645,167 Other assets 1,567,203 1,583,065 1,422,438 1,496,072 1,458,459 Total Assets $ 47,743,294 $ 47,019,190 $ 49,204,933 $ 47,984,078 $ 48,313,863 LIABILITIES Deposits: Demand: Noninterest bearing $ 8,558,412 $ 8,591,805 $ 9,242,693 $ 8,586,265 $ 8,820,468 Interest bearing 19,221,356 19,345,114 18,125,553 18,514,015 18,945,982 Savings 2,626,901 2,588,406 2,560,803 2,613,950 2,694,777 Time deposits 9,929,059 9,970,876 8,915,311 8,144,429 7,658,999 Total deposits 40,335,728 40,496,201 38,844,360 37,858,659 38,120,226 Securities sold under agreement to repurchase 19,671 23,616 16,964 55,034 94,390 Other short-term borrowings 235,000 — 3,500,000 3,500,000 3,500,000 Subordinated and long-term borrowings 560,690 10,706 225,823 269,353 430,123 Other liabilities 873,664 918,984 1,044,923 1,013,274 979,192 Total Liabilities 42,024,753 41,449,507 43,632,070 42,696,320 43,123,931 SHAREHOLDERS' EQUITY Preferred stock 166,993 166,993 166,993 166,993 166,993 Common stock 460,116 458,819 455,788 456,076 456,703 Capital surplus 2,736,799 2,742,913 2,729,440 2,724,656 2,724,587 Accumulated other comprehensive loss (621,203) (694,495) (590,342) (782,462) (791,333) Retained earnings 2,975,836 2,895,453 2,810,984 2,722,495 2,632,982 Total Shareholders' Equity 5,718,541 5,569,683 5,572,863 5,287,758 5,189,932 Total Liabilities & Shareholders' Equity $ 47,743,294 $ 47,019,190 $ 49,204,933 $ 47,984,078 $ 48,313,863 Table 5 Consolidated Quarterly Average Balance Sheets (Unaudited) (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 ASSETS Cash and due from banks $ 560,581 $ 490,161 $ 435,569 $ 456,938 $ 557,009 Interest bearing deposits with other banks and Federal funds sold 1,275,153 1,698,300 2,210,277 2,758,385 3,146,439 Available for sale securities, at fair value 7,302,172 7,636,683 7,915,636 8,033,552 8,269,708 Loans and leases, net of unearned income 33,944,416 33,461,931 33,279,819 32,945,526 32,737,574 Allowance for credit losses 465,332 465,971 469,919 475,181 473,849 Net loans and leases 33,479,084 32,995,960 32,809,900 32,470,345 32,263,725 Loans held for sale, at fair value 115,261 123,211 134,313 114,359 72,356 Premises and equipment, net 785,194 796,394 807,353 815,920 808,473 Goodwill 1,366,923 1,366,923 1,366,923 1,367,358 1,367,785 Other intangible assets, net 81,527 85,323 89,262 93,743 98,350 Bank-owned life insurance 652,689 651,166 650,307 646,124 643,189 Other assets 1,516,847 1,419,417 1,384,437 1,435,995 1,415,506 Total Assets $ 47,135,431 $ 47,263,538 $ 47,803,977 $ 48,192,719 $ 48,642,540 LIABILITIES Deposits: Demand: Noninterest bearing $ 8,339,414 $ 8,676,765 $ 8,616,534 $ 8,757,029 $ 9,072,619 Interest bearing 19,428,376 18,845,689 18,043,686 18,770,093 19,303,845 Savings 2,607,366 2,573,961 2,584,761 2,652,019 2,696,452 Time deposits 9,978,136 9,646,809 8,389,472 7,920,946 7,348,356 Total deposits 40,353,292 39,743,224 37,634,453 38,100,087 38,421,272 Securities sold under agreement to repurchase 22,956 18,053 32,375 65,821 209,348 Other short-term borrowings 108,389 905,815 3,512,218 3,500,000 3,500,000 Subordinated and long-term borrowings 129,030 123,442 265,790 404,231 434,579 Other liabilities 870,172 883,643 938,315 915,326 883,293 Total Liabilities 41,483,839 41,674,177 42,383,151 42,985,465 43,448,492 SHAREHOLDERS' EQUITY Preferred stock 166,993 166,993 166,993 166,993 166,993 Common stock 458,830 457,798 455,954 456,618 456,437 Capital surplus 2,744,442 2,735,323 2,725,581 2,724,838 2,733,902 Accumulated other comprehensive loss (663,883) (634,307) (703,619) (838,710) (777,940) Retained earnings 2,945,210 2,863,554 2,775,917 2,697,515 2,614,656 Total Shareholders' Equity 5,651,592 5,589,361 5,420,826 5,207,254 5,194,048 Total Liabilities & Shareholders' Equity $ 47,135,431 $ 47,263,538 $ 47,803,977 $ 48,192,719 $ 48,642,540 Table 6 Consolidated Statements of Income (Unaudited) Quarter Ended (Dollars in thousands, except per share data) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 INTEREST REVENUE: Loans and leases $ 530,050 $ 540,147 $ 555,862 $ 539,685 $ 528,940 Available for sale securities: Taxable 53,232 57,476 59,732 62,852 63,405 Tax-exempt 629 635 638 638 687 Loans held for sale 1,449 1,694 1,630 1,652 1,184 Short-term investments 13,897 20,369 29,851 37,383 42,897 Total interest revenue 599,257 620,321 647,713 642,210 637,113 INTEREST EXPENSE: Interest bearing demand deposits and money market accounts 128,831 135,965 142,179 146,279 149,403 Savings 3,644 3,684 3,695 3,743 3,801 Time deposits 100,900 103,785 94,944 89,173 80,670 Federal funds purchased and securities sold under agreement to repurchase 1,124 293 561 724 2,523 Short-term borrowings 317 10,779 42,003 41,544 42,109 Subordinated and long-term borrowings 1,289 1,284 2,873 4,429 4,699 Total interest expense 236,105 255,790 286,255 285,892 283,205 Net interest revenue 363,152 364,531 361,458 356,318 353,908 Provision for credit losses 20,000 15,000 12,000 22,000 22,000 Net interest revenue, after provision for credit losses 343,152 349,531 349,458 334,318 331,908 NONINTEREST REVENUE: Wealth management 23,279 23,973 24,110 24,006 22,833 Deposit service charges 17,736 18,694 18,814 17,652 18,338 Credit card, debit card and merchant fees 11,989 12,664 12,649 12,770 12,162 Mortgage banking 6,638 3,554 1,133 6,173 6,443 Security losses (9) (3) (2,947) (4) (9) Other noninterest income 25,754 27,283 32,142 40,061 24,019 Total noninterest revenue 85,387 86,165 85,901 100,658 83,786 NONINTEREST EXPENSE: Salaries and employee benefits 152,972 152,381 152,237 148,038 156,650 Occupancy and equipment 28,477 27,275 28,894 29,367 28,640 Data processing and software 27,132 33,226 29,164 29,467 30,028 Deposit insurance assessments 8,643 8,284 7,481 15,741 8,414 Amortization of intangibles 3,668 3,904 3,933 3,999 4,066 Merger expense 315 — — — — Other noninterest expense 38,142 41,116 37,729 30,085 35,409 Total noninterest expense 259,349 266,186 259,438 256,697 263,207 Income before income taxes 169,190 169,510 175,921 178,279 152,487 Income tax expense 35,968 36,795 39,482 40,807 35,509 Net income 133,222 132,715 136,439 137,472 116,978 Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 Net income available to common shareholders $ 130,850 $ 130,343 $ 134,067 $ 135,100 $ 114,606 Diluted earnings per common share $ 0.70 $ 0.70 $ 0.72 $ 0.73 $ 0.62 Table 7 Selected Loan and Lease Portfolio Data (Unaudited) Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 LOAN AND LEASE PORTFOLIO: Commercial and industrial Non-real estate $ 8,688,653 $ 8,670,529 $ 8,692,639 $ 9,136,929 $ 9,121,457 Owner occupied 4,667,477 4,665,015 4,557,723 4,475,647 4,442,357 Total commercial and industrial 13,356,130 13,335,544 13,250,362 13,612,576 13,563,814 Commercial real estate Construction, acquisition and development 3,723,408 3,909,184 3,931,821 3,892,527 3,864,351 Income producing 6,268,456 6,015,773 5,978,695 5,851,340 5,783,943 Total commercial real estate 9,991,864 9,924,957 9,910,516 9,743,867 9,648,294 Consumer Residential mortgages 10,498,320 10,267,883 9,933,222 9,740,713 9,447,675 Other consumer 205,296 213,371 209,872 215,617 222,833 Total consumer 10,703,616 10,481,254 10,143,094 9,956,330 9,670,508 Total loans and leases, net of unearned income $ 34,051,610 $ 33,741,755 $ 33,303,972 $ 33,312,773 $ 32,882,616 NONPERFORMING ASSETS Nonperforming Loans and Leases Commercial and industrial Non-real estate $ 118,078 $ 145,115 $ 148,267 $ 121,171 $ 149,683 Owner occupied 18,988 16,904 15,127 13,700 5,962 Total commercial and industrial 137,066 162,019 163,394 134,871 155,645 Commercial real estate Construction, acquisition and development 8,768 8,600 2,034 4,923 3,787 Income producing 8,021 18,542 25,112 15,002 19,428 Total commercial real estate 16,789 27,142 27,146 19,925 23,215 Consumer Residential mortgages 81,803 75,287 82,191 61,677 61,886 Other consumer 294 244 223 273 261 Total consumer 82,097 75,531 82,414 61,950 62,147 Total nonperforming loans and leases (1) $ 235,952 $ 264,692 $ 272,954 $ 216,746 $ 241,007 Other real estate owned and repossessed assets 8,452 5,754 5,354 4,793 5,280 Total nonperforming assets $ 244,404 $ 270,446 $ 278,308 $ 221,539 $ 246,287 Government guaranteed portion of nonaccrual loans andleases covered by the SBA, FHA, VA or USDA $ 84,339 $ 89,906 $ 81,632 $ 71,418 $ 59,897 Loans and leases 90+ days past due, still accruing $ 8,832 $ 13,126 $ 11,757 $ 6,150 $ 30,048 (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) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 ALLOWANCE FOR CREDIT LOSSES: Balance, beginning of period $ 460,793 $ 460,859 $ 470,022 $ 472,575 $ 468,034 Charge-offs: Commercial and industrial (21,284) (15,116) (21,620) (23,340) (16,997) Commercial real estate (1,382) (167) (222) (649) (2,244) Consumer (3,062) (2,679) (2,681) (2,294) (2,395) Total loans charged-off (25,728) (17,962) (24,523) (26,283) (21,636) Recoveries: Commercial and industrial 1,822 2,613 1,647 2,943 1,312 Commercial real estate 83 549 65 101 150 Consumer 821 734 648 686 715 Total recoveries 2,726 3,896 2,360 3,730 2,177 Net charge-offs (23,002) (14,066) (22,163) (22,553) (19,459) Provision for credit losses related to loans and leases 20,000 14,000 13,000 20,000 24,000 Balance, end of period $ 457,791 $ 460,793 $ 460,859 $ 470,022 $ 472,575 Average loans and leases, net of unearned income, for period $ 33,944,416 $ 33,461,931 $ 33,279,819 $ 32,945,526 $ 32,737,574 Ratio: Net charge-offs to average loans and leases (2) 0.27 % 0.17 % 0.26 % 0.28 % 0.24 % RESERVE FOR UNFUNDED COMMITMENTS (1) Balance, beginning of period $ 8,551 $ 7,551 $ 8,551 $ 6,551 $ 8,551 Provision (reversal) for credit losses for unfunded commitments — 1,000 (1,000) 2,000 (2,000) Balance, end of period $ 8,551 $ 8,551 $ 7,551 $ 8,551 $ 6,551 (1) The Reserve for Unfunded Commitments is classified in other liabilities on the consolidated balance sheets. (2) Annualized. Table 9 Loan and Lease Portfolio by Grades (Unaudited) March 31, 2025 (In thousands) Pass SpecialMention Substandard Doubtful Impaired PurchasedCredit Deteriorated (Loss) Total LOAN AND LEASE PORTFOLIO: Commercial and industrial Non-real estate $ 8,234,513 $ 108,903 $ 317,012 $ 8,556 $ 16,227 $ 3,442 $ 8,688,653 Owner occupied 4,617,617 — 38,174 — 10,592 1,094 4,667,477 Total commercial and industrial 12,852,130 108,903 355,186 8,556 26,819 4,536 13,356,130 Commercial real estate Construction, acquisition and development 3,710,504 — 7,031 — 5,873 — 3,723,408 Income producing 6,078,353 39,412 144,159 — 6,532 — 6,268,456 Total commercial real estate 9,788,857 39,412 151,190 — 12,405 — 9,991,864 Consumer Residential mortgages 10,392,396 — 99,305 — 5,208 1,411 10,498,320 Other consumer 204,701 — 595 — — — 205,296 Total consumer 10,597,097 — 99,900 — 5,208 1,411 10,703,616 Total loans and leases, net of unearned income $ 33,238,084 $ 148,315 $ 606,276 $ 8,556 $ 44,432 $ 5,947 $ 34,051,610 December 31, 2024 (In thousands) Pass Special Mention Substandard Doubtful Impaired PurchasedCredit Deteriorated (Loss) Total LOAN AND LEASE PORTFOLIO: Commercial and industrial Non-real estate $ 8,208,176 $ 106,996 $ 311,096 $ 8,743 $ 31,996 $ 3,522 $ 8,670,529 Owner occupied 4,610,775 815 41,363 — 10,968 1,094 4,665,015 Total commercial and industrial 12,818,951 107,811 352,459 8,743 42,964 4,616 13,335,544 Commercial real estate Construction, acquisition and development 3,896,856 — 12,262 — 66 — 3,909,184 Income producing 5,850,702 5,094 144,084 — 15,893 — 6,015,773 Total commercial real estate 9,747,558 5,094 156,346 — 15,959 — 9,924,957 Consumer Residential mortgages 10,167,830 891 89,597 — 8,154 1,411 10,267,883 Other consumer 212,865 — 506 — — — 213,371 Total consumer 10,380,695 891 90,103 — 8,154 1,411 10,481,254 Total loans and leases, net of unearned income $ 32,947,204 $ 113,796 $ 598,908 $ 8,743 $ 67,077 $ 6,027 $ 33,741,755 Table 10 Geographical Loan and Lease Information (Unaudited) March 31, 2025 (Dollars in thousands) Alabama Arkansas Florida Georgia Louisiana Mississippi Missouri Tennessee Texas Other Total LOAN AND LEASE PORTFOLIO: Commercial and industrial Non-real estate $ 424,598 $ 157,460 $ 576,477 $ 464,611 $ 375,154 $ 534,964 $ 65,370 $ 338,916 $ 3,467,605 $ 2,283,498 $ 8,688,653 Owner occupied 338,752 244,335 306,890 429,592 294,980 590,076 99,197 159,241 1,766,119 438,295 4,667,477 Total commercial and industrial 763,350 401,795 883,367 894,203 670,134 1,125,040 164,567 498,157 5,233,724 2,721,793 13,356,130 Commercial real estate Construction, acquisition and development 220,664 79,437 371,396 443,876 48,561 166,644 36,117 184,595 1,714,761 457,357 3,723,408 Income producing 434,990 258,337 544,896 783,768 226,924 423,200 215,550 315,125 2,323,475 742,191 6,268,456 Total commercial real estate 655,654 337,774 916,292 1,227,644 275,485 589,844 251,667 499,720 4,038,236 1,199,548 9,991,864 Consumer Residential mortgages 1,309,478 430,005 719,379 455,027 484,751 1,221,895 226,051 821,297 4,571,649 258,788 10,498,320 Other consumer 25,579 17,844 4,776 7,982 10,486 83,368 1,246 15,557 33,872 4,586 205,296 Total consumer 1,335,057 447,849 724,155 463,009 495,237 1,305,263 227,297 836,854 4,605,521 263,374 10,703,616 Total loans and leases, net of unearned income $2,754,061 $ 1,187,418 $ 2,523,814 $ 2,584,856 $ 1,440,856 $ 3,020,147 $ 643,531 $ 1,834,731 $ 13,877,481 $ 4,184,715 $34,051,610 Loan growth (decline), excluding loans acquiredduring the quarter ($) $ 7,495 $ (4,034) $ 53,042 $ 124,182 $ 17,883 $ (35,469) $ 9,399 $ (36,957) $ 262,192 $ (87,878) $ 309,855 Loan growth (decline), excluding loans acquiredduring the quarter (%) (annualized) 1.11 % (1.37) % 8.71 % 20.47 % 5.10 % (4.71) % 6.01 % (8.01) % 7.81 % (8.34) % 3.72 % December 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 $ 413,359 $ 169,534 $ 532,224 $ 446,812 $ 371,543 $ 536,651 $ 64,846 $ 399,346 $ 3,478,755 $ 2,257,459 $ 8,670,529 Owner occupied 337,580 253,538 308,545 400,342 298,787 624,950 107,443 159,058 1,708,113 466,659 4,665,015 Total commercial and industrial 750,939 423,072 840,769 847,154 670,330 1,161,601 172,289 558,404 5,186,868 2,724,118 13,335,544 Commercial real estate Construction, acquisition and development 230,810 65,358 438,173 543,249 36,194 169,336 45,690 180,566 1,656,715 543,093 3,909,184 Income producing 437,146 259,767 477,493 613,337 226,849 424,078 204,119 319,560 2,298,344 755,080 6,015,773 Total commercial real estate 667,956 325,125 915,666 1,156,586 263,043 593,414 249,809 500,126 3,955,059 1,298,173 9,924,957 Consumer Residential mortgages 1,300,485 425,602 709,335 449,117 478,947 1,214,542 210,712 796,490 4,436,803 245,850 10,267,883 Other consumer 27,186 17,653 5,002 7,817 10,653 86,059 1,322 16,668 36,559 4,452 213,371 Total consumer 1,327,671 443,255 714,337 456,934 489,600 1,300,601 212,034 813,158 4,473,362 250,302 10,481,254 Total loans and leases, net of unearned income $ 2,746,566 $ 1,191,452 $ 2,470,772 $ 2,460,674 $ 1,422,973 $ 3,055,616 $ 634,132 $ 1,871,688 $ 13,615,289 $ 4,272,593 $ 33,741,755 Table 11 Noninterest Revenue and Expense (Unaudited) Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 NONINTEREST REVENUE: Trust and asset management income $ 11,823 $ 12,485 $ 12,055 $ 12,645 $ 11,322 Investment advisory fees 8,454 8,502 8,641 8,180 8,336 Brokerage and annuity fees 3,002 2,986 3,414 3,181 3,175 Deposit service charges 17,736 18,694 18,814 17,652 18,338 Credit card, debit card and merchant fees 11,989 12,664 12,649 12,770 12,162 Mortgage banking excl. MSR and MSR hedge marketvalue adjustment 9,743 6,293 8,171 9,875 9,116 MSR and MSR hedge market value adjustment (3,105) (2,739) (7,038) (3,702) (2,673) Security losses, net (9) (3) (2,947) (4) (9) Bank-owned life insurance 5,202 5,046 4,353 4,370 3,946 Other miscellaneous income 20,552 22,237 27,789 35,691 20,073 Total noninterest revenue $ 85,387 $ 86,165 $ 85,901 $ 100,658 $ 83,786 NONINTEREST EXPENSE: Salaries and employee benefits $ 152,972 $ 152,381 $ 152,237 $ 148,038 $ 156,650 Occupancy and equipment 28,477 27,275 28,894 29,367 28,640 Data processing and software 27,132 33,226 29,164 29,467 30,028 Deposit insurance assessments 8,643 8,284 7,481 15,741 8,414 Amortization of intangibles 3,668 3,904 3,933 3,999 4,066 Merger expense 315 — — — — Advertising and public relations 4,157 5,870 5,481 6,537 4,224 Foreclosed property expense 864 621 486 515 268 Telecommunications 1,512 1,359 1,513 1,441 1,545 Travel and entertainment 2,436 2,618 2,612 2,549 2,236 Professional, consulting and outsourcing 4,733 4,540 4,115 3,534 3,935 Legal 3,559 4,176 3,664 758 3,682 Postage and shipping 1,773 1,624 1,677 1,622 2,205 Other miscellaneous expense 19,108 20,308 18,181 13,129 17,314 Total noninterest expense $ 259,349 $ 266,186 $ 259,438 $ 256,697 $ 263,207 Table 12 Average Balance and Yields (Unaudited) Quarter Ended March 31, 2025 December 31, 2024 March 31, 2024 (Dollars in thousands) Average Balance Income/Expense Yield/ Rate Average Balance Income/Expense Yield/ Rate Average Balance Income/Expense Yield/ Rate ASSETS Interest-earning assets: Loans and leases, excluding accretion $ 33,944,416 $ 527,951 6.31 % $ 33,461,931 $ 538,204 6.40 % $ 32,737,574 $ 525,878 6.46 % Accretion income on acquired loans 2,562 0.03 2,422 0.03 3,515 0.04 Loans held for sale 115,261 1,449 5.10 123,211 1,694 5.47 72,356 1,184 6.58 Investment securities Taxable 7,222,326 53,232 2.99 7,555,265 57,476 3.03 8,187,342 63,405 3.11 Tax-exempt 79,846 796 4.04 81,418 804 3.93 82,366 870 4.25 Total investment securities 7,302,172 54,028 3.00 7,636,683 58,280 3.04 8,269,708 64,275 3.13 Other investments 1,275,153 13,897 4.42 1,698,300 20,369 4.77 3,146,439 42,897 5.48 Total interest-earning assets 42,637,002 599,887 5.71 % 42,920,125 620,969 5.76 % 44,226,077 637,749 5.80 % Other assets 4,963,761 4,809,384 4,890,312 Allowance for credit losses 465,332 465,971 473,849 Total assets $ 47,135,431 $ 47,263,538 $ 48,642,540 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing liabilities: Interest bearing demand and money market $ 19,428,376 $ 128,831 2.69 % $ 18,845,689 $ 135,965 2.87 % $ 19,303,845 $ 149,403 3.11 % Savings deposits 2,607,366 3,644 0.57 2,573,961 3,684 0.57 2,696,452 3,801 0.57 Time deposits 9,978,136 100,900 4.10 9,646,809 103,785 4.28 7,348,356 80,670 4.42 Total interest-bearing deposits 32,013,878 233,375 2.96 31,066,459 243,434 3.12 29,348,653 233,874 3.21 Fed funds purchased, securities sold under agreement to repurchase and other 103,067 1,132 4.45 26,042 300 4.58 209,348 2,528 4.86 Short-term FHLB borrowings 28,278 309 4.43 — — — — — — Short-term BTFP borrowings — — — 897,826 10,772 4.77 3,500,000 42,104 4.84 Subordinated and long-term borrowings 129,030 1,289 4.05 123,442 1,284 4.14 434,579 4,699 4.35 Total interest-bearing liabilities 32,274,253 236,105 2.97 % 32,113,769 255,790 3.17 % 33,492,580 283,205 3.40 % Noninterest-bearing liabilities: Demand deposits 8,339,414 8,676,765 9,072,619 Other liabilities 870,172 883,643 883,293 Total liabilities 41,483,839 41,674,177 43,448,492 Shareholders' equity 5,651,592 5,589,361 5,194,048 Total liabilities and shareholders' equity $ 47,135,431 $ 47,263,538 $ 48,642,540 Net interest income/net interest spread 363,782 2.74 % 365,179 2.59 % 354,544 2.40 % Net yield on earning assets/net interest margin 3.46 % 3.38 % 3.22 % Taxable equivalent adjustment: Loans and investment securities (630) (648) (636) Net interest revenue $ 363,152 $ 364,531 $ 353,908 Table 13 Selected Additional Data (Unaudited) Quarter Ended (Dollars in thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 MORTGAGE SERVICING RIGHTS ("MSR"): Fair value, beginning of period $ 114,594 $ 104,891 $ 113,595 $ 111,685 $ 106,824 Originations of servicing assets 2,796 4,227 3,361 3,687 2,736 Changes in fair value: Due to changes in valuation inputs or assumptions(1) (4,447) 9,193 (8,232) 927 4,781 Other changes in fair value(2) (1,974) (3,717) (3,833) (2,704) (2,656) Fair value, end of period $ 110,969 $ 114,594 $ 104,891 $ 113,595 $ 111,685 MORTGAGE BANKING REVENUE: Origination $ 3,402 $ 332 $ 2,145 $ 3,976 $ 3,165 Servicing 6,341 5,961 6,026 5,899 5,951 Total mortgage banking revenue excluding MSR 9,743 6,293 8,171 9,875 9,116 Due to changes in valuation inputs or assumptions(1) (4,447) 9,193 (8,232) 927 4,781 Other changes in fair value(2) (1,974) (3,717) (3,833) (2,704) (2,656) Market value adjustment on MSR Hedge 3,316 (8,215) 5,027 (1,925) (4,798) Total mortgage banking revenue $ 6,638 $ 3,554 $ 1,133 $ 6,173 $ 6,443 Mortgage loans serviced $ 8,111,379 $ 8,043,306 $ 7,927,028 $ 7,824,895 $ 7,764,936 MSR/mortgage loans serviced 1.37 % 1.42 % 1.32 % 1.45 % 1.44 % (1) Primarily reflects changes in prepayment speeds and discount rate assumptions which are updated based on market interest rates. (2) Primarily reflects changes due to realized cash flows. Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 AVAILABLE FOR SALE SECURITIES, at fair value U.S. Treasury securities $ — $ — $ — $ — $ 239,402 Obligations of U.S. government agencies 274,285 281,231 300,730 305,200 318,233 Mortgage-backed securities issued or guaranteed by U.S. agencies ("MBS"): Residential pass-through: Guaranteed by GNMA 66,149 66,581 71,001 69,788 72,034 Issued by FNMA and FHLMC 4,024,678 3,965,556 4,163,760 4,125,416 4,254,227 Other residential mortgage-back securities 1,564,928 934,721 1,135,004 1,233,868 1,210,617 Commercial mortgage-backed securities 1,486,525 1,549,641 1,664,288 1,673,823 1,694,967 Total MBS 7,142,280 6,516,499 7,034,053 7,102,895 7,231,845 Obligations of states and political subdivisions 129,822 132,069 137,996 133,155 134,643 Other domestic debt securities 48,422 47,402 51,599 64,288 67,421 Foreign debt securities 317,350 316,787 317,307 315,884 315,045 Total available for sale securities $ 7,912,159 $ 7,293,988 $ 7,841,685 $ 7,921,422 $ 8,306,589 Table 14 Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions (Unaudited) Management evaluates the Company's capital position and adjusted performance by utilizing certain financial measures not calculated in accordance with GAAP, including adjusted net income, adjusted net income available to common shareholders, pre-tax pre-provision net revenue, adjusted pre-tax pre-provision net revenue, total adjusted noninterest revenue, total adjusted noninterest expense, tangible common shareholders' equity to tangible assets, total shareholders' equity (excluding AOCI), common shareholders' equity (excluding AOCI), tangible common shareholders' equity to tangible assets (excluding AOCI), return on average tangible common equity, adjusted return on average tangible common equity, adjusted return on average assets, adjusted return on average common shareholders' equity, adjusted return on average common shareholders' equity, pre-tax pre-provision net revenue to total average assets, adjusted pre-tax pre-provision net revenue to total average assets, adjusted earnings per common share, tangible book value per common share, tangible book value per common share, excluding AOCI, efficiency ratio (tax equivalent), adjusted efficiency ratio (tax equivalent), dividend payout ratio, and adjusted dividend payout ratio. The Company has included these non-GAAP financial measures in this release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures: (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and adjusted performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names. Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 Adjusted Net Income Available to Common Shareholders Net income $ 133,222 $ 132,715 $ 136,439 $ 137,472 $ 116,978 Plus: Merger expense 315 — — — — Incremental merger related expense 55 — — — — Gain on extinguishment of debt — — — (1,098) (576) Restructuring and other nonroutine expenses 351 (505) (920) 6,675 251 Less: Security losses, net (9) (3) (2,947) (4) (9) Gain on sale of businesses — — — 14,980 — Tax adjustment 172 (118) 476 (2,209) (74) Adjusted net income 133,780 132,331 137,990 130,282 116,736 Less: Preferred dividends 2,372 2,372 2,372 2,372 2,372 Adjusted net income available to common shareholders $ 131,408 $ 129,959 $ 135,618 $ 127,910 $ 114,364 Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 Pre-Tax Pre-Provision Net Revenue Net income $ 133,222 $ 132,715 $ 136,439 $ 137,472 $ 116,978 Plus: Provision for credit losses 20,000 15,000 12,000 22,000 22,000 Income tax expense 35,968 36,795 39,482 40,807 35,509 Pre-tax pre-provision net revenue $ 189,190 $ 184,510 $ 187,921 $ 200,279 $ 174,487 Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 Adjusted Pre-Tax Pre-Provision Net Revenue Net income $ 133,222 $ 132,715 $ 136,439 $ 137,472 $ 116,978 Plus: Provision for credit losses 20,000 15,000 12,000 22,000 22,000 Merger expense 315 — — — — Incremental merger related expense 55 — — — — Gain on extinguishment of debt — — — (1,098) (576) Restructuring and other nonroutine expenses 351 (505) (920) 6,675 251 Income tax expense 35,968 36,795 39,482 40,807 35,509 Less: Security losses, net (9) (3) (2,947) (4) (9) Gain on sale of businesses — — — 14,980 — Adjusted pre-tax pre-provision net revenue $ 189,920 $ 184,008 $ 189,948 $ 190,880 $ 174,171 Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 Total Adjusted Revenue Net interest revenue $ 363,152 $ 364,531 $ 361,458 $ 356,318 $ 353,908 Total Adjusted Noninterest Revenue Total noninterest revenue $ 85,387 $ 86,165 $ 85,901 $ 100,658 $ 83,786 Less: Security losses, net (9) (3) (2,947) (4) (9) Gain on sale of businesses — — — 14,980 — Total adjusted noninterest revenue $ 85,396 $ 86,168 $ 88,848 $ 85,682 $ 83,795 Total adjusted revenue $ 448,548 $ 450,699 $ 450,306 $ 442,000 $ 437,703 Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 Total Adjusted Noninterest Expense Total noninterest expense $ 259,349 $ 266,186 $ 259,438 $ 256,697 $ 263,207 Less: Merger expense 315 — — — — Incremental merger related expense 55 — — — — Gain on extinguishment of debt — — — (1,098) (576) Restructuring and other nonroutine expenses 351 (505) (920) 6,675 251 Total adjusted noninterest expense $ 258,628 $ 266,691 $ 260,358 $ 251,120 $ 263,532 Quarter Ended (In thousands) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 Total Tangible Assets, Excluding AOCI Total assets $ 47,743,294 $ 47,019,190 $ 49,204,933 $ 47,984,078 $ 48,313,863 Less: Goodwill 1,366,923 1,366,923 1,366,923 1,366,923 1,367,785 Other intangible assets, net 79,522 83,190 87,094 91,027 96,126 Total tangible assets 46,296,849 45,569,077 47,750,916 46,526,128 46,849,952 Less: AOCI (621,203) (694,495) (590,342) (782,462) (791,333) Total tangible assets, excluding AOCI $ 46,918,052 $ 46,263,572 $ 48,341,258 $ 47,308,590 $ 47,641,285 Quarter Ended (Dollars in thousands, except per share data) Mar 2025 Dec 2024 Sep 2024 Jun 2024 Mar 2024 PERIOD END BALANCES: Total Shareholders' Equity, Excluding AOCI Total shareholders' equity $5,718,541 $5,569,683 $5,572,863 $5,287,758 $5,189,932 Less: AOCI (621,203) (694,495) (590,342) (782,462) (791,333) Total shareholders' equity, excluding AOCI $6,339,744 $6,264,178 $6,163,205 $6,070,220 $5,981,265 Common Shareholders' Equity, Excluding AOCI Total shareholders' equity $5,718,541 $5,569,683 $5,572,863 $5,287,758 $5,189,932 Less: preferred stock 166,993 166,993 166,993 166,993 166,993 Common shareholders' equity 5,551,548 5,402,690 5,405,870 5,120,765 5,022,939 Less: AOCI (621,203) (694,495) (590,342) (782,462) (791,333) Common shareholders' equity, excluding AOCI $6,172,751 $6,097,185 $5,996,212 $5,903,227 $5,814,272 Total Tangible Common Shareholders' Equity, Excluding AOCI Total shareholders' equity $5,718,541 $5,569,683 $5,572,863 $5,287,758 $5,189,932 Less: Goodwill 1,366,923 1,366,923 1,366,923 1,366,923 1,367,785 Other intangible assets, net 79,522 83,190 87,094 91,027 96,126 Preferred stock 166,993 166,993 166,993 166,993 166,993 Total tangible common shareholders' equity 4,105,103 3,952,577 3,951,853 3,662,815 3,559,028 Less: AOCI (621,203) (694,495) (590,342) (782,462) (791,333) Total tangible common shareholders' equity, excluding AOCI $4,726,306 $4,647,072 $4,542,195 $4,445,277 $4,350,361 AVERAGE BALANCES: Total Tangible Common Shareholders' Equity Total shareholders' equity $5,651,592 $5,589,361 $5,420,826 $5,207,254 $5,194,048 Less: Goodwill 1,366,923 1,366,923 1,366,923 1,367,358 1,367,785 Other intangible assets, net 81,527 85,323 89,262 93,743 98,350 Preferred stock 166,993 166,993 166,993 166,993 166,993 Total tangible common shareholders' equity $4,036,149 $3,970,122 $3,797,648 $3,579,160 $3,560,920 Total average assets $47,135,431 $47,263,538 $47,803,977 $48,192,719 $48,642,540 Total shares of common stock outstanding 184,046,420 183,527,575 182,315,142 182,430,427 182,681,325 Average shares outstanding-diluted 186,121,979 186,038,243 185,496,110 185,260,963 185,574,130 Tangible common shareholders' equity to tangible assets (1) 8.87 % 8.67 % 8.28 % 7.87 % 7.60 % Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI (2) 10.07 10.04 9.40 9.40 9.13 Return on average tangible common equity (3) 13.15 13.06 14.04 15.18 12.94 Adjusted return on average tangible common equity (4) 13.20 13.02 14.21 14.37 12.92 Adjusted return on average assets (5) 1.15 1.11 1.15 1.09 0.97 Adjusted return on average common shareholders' equity (6) 9.72 9.53 10.27 10.21 9.15 Pre-tax pre-provision net revenue to total average assets (7) 1.63 1.55 1.56 1.67 1.44 Adjusted pre-tax pre-provision net revenue to total average assets (8) 1.63 1.55 1.58 1.59 1.44 Tangible book value per common share (9) $ 22.30 $ 21.54 $ 21.68 $ 20.08 $ 19.48 Tangible book value per common share, excluding AOCI (10) 25.68 25.32 24.91 24.37 23.81 Adjusted earnings per common share (11) $ 0.71 $ 0.70 $ 0.73 $ 0.69 $ 0.62 Adjusted dividend payout ratio (12) 38.73 % 35.71 % 34.25 % 36.23 % 40.32 % Definitions of Non-GAAP Measures: (1) Tangible common shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less preferred stock, goodwill and other intangible assets, net, divided by the difference of total assets less goodwill and other intangible assets, net. (2) Tangible common shareholders' equity, excluding AOCI, to tangible assets, excluding AOCI, is defined by the Company as total shareholders' equity less preferred stock, goodwill, other intangible assets, net and accumulated other comprehensive loss, divided by the difference of total assets less goodwill, accumulated other comprehensive loss, and other intangible assets, net. (3) Return on average tangible common equity is defined by the Company as annualized net income available to common shareholders divided by average tangible common shareholders equity. (4) Adjusted return on average tangible common equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average tangible common shareholders' equity. (5) Adjusted return on average assets is defined by the Company as annualized net adjusted income divided by total average assets. (6) Adjusted return on average common shareholders' equity is defined by the Company as annualized net adjusted income available to common shareholders divided by average common shareholders' equity. (7) Pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue divided by total average assets. (8) Adjusted pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized adjusted pre-tax pre-provision net revenue divided by total average assets adjusted for items included in the definition and calculation of adjusted income. (9) Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding. (10) Tangible book value per common share, excluding AOCI is defined by the Company as tangible common shareholders' equity less accumulated other comprehensive loss divided by total shares of common stock outstanding. (11) Adjusted earnings per common share is defined by the Company as net adjusted income available to common shareholders divided by average common shares outstanding-diluted. (12) Adjusted dividend payout ratio is defined by the Company as common share dividends divided by net adjusted income available to common shareholders. Efficiency Ratio-Fully Taxable Equivalent and Adjusted Efficiency Ratio-Fully Taxable Equivalent DefinitionsThe efficiency ratio and the adjusted efficiency ratio are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment. The adjusted efficiency ratio excludes income and expense items otherwise disclosed as non-routine from total noninterest expense.SOURCE Cadence Bank WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Cadence Bank Announces First Quarter 2025 Financial Results

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