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Reconciliation of Non
-GAAP Disclosures
Adjusted operating measures exclude, as applicable,
strategic cost saving initiatives (principally composed of
severance charges related to headcount reductions, costs
related to modifying certain third party vendor contracts, and
charges for exiting certain leases), merger
-related costs, a
legal reserve associated with our previously disclosed
settlement with the CFPB, a FDIC special assessment,
strategic branch closing and related facility consolidation
costs (principally composed of real estate, leases and other
assets write downs, as well as severance and expense
reduction initiatives), gain (loss) on sale of securities, gain on
sale
-leaseback transaction, and gain on sale of Dixon,
Hubard, Feinour & Brown, Inc. ("DHFB"). The Company
believes these non
-GAAP adjusted measures provide
investors with important information about the continuing
economic results of the organization’s operations. The
Company believes net interest income (FTE), total revenue
(FTE), and total adjusted revenue (FTE), which are used in
computing net interest margin (FTE), efficiency ratio (FTE)
and adjusted operating efficiency ratio (FTE), provide
valuable additional insight into the net interest margin and the
efficiency ratio by adjusting for differences in tax treatment of
interest income sources. The entire FTE adjustment is
attributable to interest income on earning assets, which is
used in computing yield on earning assets. Interest expense
and the related cost of interest
-bearing liabilities and cost of
funds ratios are not affected by the FTE components. The
adjusted operating efficiency ratio (FTE) excludes, as
applicable, the amortization of intangible assets, strategic
cost saving initiatives, merger
-related costs, a legal reserve
associated with our previously disclosed settlement with the
CFPB, a FDIC special assessment, strategic branch closing
and related facility consolidation costs, gain (loss) on sale of
securities, gain on sale
-leaseback transaction, and gain on
sale of DHFB. This measure is similar to the measure utilized
by the Company when analyzing corporate performance and
is also similar to the measure utilized for incentive
compensation. The Company believes this adjusted measure
provides investors with important information about the
continuing economic results of the organization’s operations.
% Change
(Dollars in thousands, except per share amounts) 4Q2023 3Q2023 2023 2022 YoY
Operating Measures
Net Income (GAAP) $ 56,907 $ 54,017 $ 201,818 $ 234,510
Plus: Strategic cost saving initiatives, net of tax - 6,851 9,959 -
Plus: Merger-related costs, net of tax 884 1,965 2,850 -
Plus: Legal reserve, net of tax 2,859 - 6,809 -
Plus: FDIC special assessment, net of tax 2,656 - 2,656 -
Plus: Strategic branch closing and facility consolidation costs, net of tax - - - 4,351
Less: Gain (loss) on sale of securities, net of tax 2 (21,799) (32,381) (2)
Less: Gain on sale-leaseback transaction, net of tax 1,484 21,883 23,367 -
Less: Gain on sale of DHFB, net of tax - - - 7,984
Adjusted operating earnings (non-GAAP) $ 61,820 $ 62,749 $ 233,106 $ 230,879
Less: Dividends on preferred stock 2,967 2,967 11,868 11,868
Adjusted operating earnings available to common shareholders (non-GAAP) $ 58,853 $ 59,782 $ 221,238 $ 219,011
Weighted average common shares outstanding, diluted 75,016,858 74,999,128 74,962,363 74,953,398
EPS available to common shareholders, diluted (GAAP) $ 0.72 $ 0.68 $ 2.53 $ 2.97
Adjusted operating EPS available to common shareholders (non-GAAP) $ 0.78 $ 0.80 $ 2.95 $ 2.92
Operating Leverage Ratio and Efficiency Ratio
Noninterest expense (GAAP) $ 107,929 $ 108,508 $ 430,371 $ 403,802 6.58%
Less: Amortization of intangible assets 2,094 2,193 8,781 10,815
Less: Strategic cost saving initiatives - 8,672 12,607 -
Less: Merger-related costs 1,002 1,993 2,995 -
Less: Legal reserve 3,300 - 8,300 -
Less: FDIC special assessment 3,362 - 3,362 -
Less: Strategic branch closing and facility consolidation costs - - - 5,508
Adjusted operating noninterest expense (non-GAAP) $ 98,171 $ 95,650 $ 394,326 $ 387,479 1.77%
Noninterest income (GAAP) $ 29,959 $ 27,094 $ 90,877 $ 118,523
Less: Gain (loss) on sale of securities 3 (27,594) (40,989) (3)
Less: Gain on sale-leaseback transaction 1,879 27,700 29,579 -
Less: Gain on sale of DHFB - - - 9,082
Adjusted operating noninterest income (non-GAAP) $ 28,077 $ 26,988 $ 102,287 $ 109,444
Net interest income (GAAP) $ 153,544 $ 151,941 $ 611,013 $ 584,261
Noninterest income (GAAP) 29,959 27,094 90,877 118,523
Total revenue (GAAP) $ 183,503 $ 179,035 $ 701,890 $ 702,784 (0.13%)
Net interest income (FTE) (non-GAAP) $ 157,256 $ 155,685 $ 625,923 $ 599,134
Adjusted operating noninterest income (non-GAAP) 28,077 26,988 102,287 109,444
Total adjusted revenue (FTE) (non-GAAP) $ 185,333 $ 182,673 $ 728,210 $ 708,578 2.77%
Operating leverage ratio (GAAP) (6.71%)
Adjusted operating leverage ratio (non-GAAP) 1.00%
Efficiency ratio (GAAP) 58.82% 60.61% 61.32% 57.46%
Efficiency ratio FTE (non-GAAP) 57.65% 59.37% 60.04% 56.27%
Adjusted operating efficiency ratio (FTE) (non-GAAP) 52.97% 52.36% 54.15% 54.68%
ADJUSTED OPERATING EARNINGS, OPERATING LEVERAGE, AND EFFICIENCY RATIO
For the three months ended For the years ended December 31, |