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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), rebranding costs, the net loss related to
balance sheet repositioning (principally composed of gains
and losses on debt extinguishment), (loss) gain on sale of
securities, gain on sale
-leaseback transaction, gain on sale of
DHFB, and gain on the sale of Visa, Inc. Class B common
stock. The Company believes these non
-GAAP adjusted
measures provide investors with important information about
the continuing economic results of the organization’s
operations. Tangible assets and tangible common equity are
used in the calculation of certain profitability, capital, and per
share ratios. The Company believes tangible assets, tangible
common equity and the related ratios are meaningful
measures of capital adequacy because they provide a
meaningful base for period
-to
-period and company
-to
-
company comparisons, which the Company believes will
assist investors in assessing the capital of the Company and
its ability to absorb potential losses. The Company believes
tangible common equity is an important indication of its ability
to grow organically and through business combinations, as
well as its ability to pay dividends and to engage in various
capital management strategies. Additionally, the Company
believes that return on tangible common equity (ROTCE) is a
meaningful supplement to GAAP financial measures and
useful to investors because it measures the performance of a
business consistently across time without regard to whether
components of the business were acquired or developed
internally.
(Dollars in thousands, except per share amounts) 2023 2022 2021 2020 2019 2018
Operating Earnings
Net Income (GAAP) $ 201,818 $ 234,510 $ 263,917 $ 158,228 $ 193,528 $ 146,248
Plus: Strategic cost saving initiatives, net of tax 9,959 - - - - -
Plus: Merger-related costs, net of tax 2,850 - - - 22,296 32,065
Plus: Legal reserve, net of tax 6,809 - - - - -
Plus: FDIC special assessment, net of tax 2,656 - - - - -
Plus: Strategic branch closing and facility consolidation costs, net of tax - 4,351 13,775 5,343 - 849
Plus: Rebranding costs, net of tax - - - - 5,099 -
Plus: Net loss related to balance sheet repositioning, net of tax - - 11,609 25,979 12,953 -
Less: (Loss) gain on sale of securities, net of tax (32,381) (2) 69 9,712 6,063 303
Less: Gain on sale-leaseback transaction, net of tax 23,367 - - - - -
Less: Gain on sale of DHFB, net of tax - 7,984 - - - -
Less: Gain on Visa, Inc. Class B common stock, net of tax - - 4,058 - - -
Adjusted operating earnings (non-GAAP) $ 233,106 $ 230,879 $ 285,174 $ 179,838 $ 227,813 $ 178,859
Less: Dividends on preferred stock 11,868 11,868 11,868 5,658 - -
Adjusted operating earnings available to common shareholders (non-GAAP) $ 221,238 $ 219,011 $ 273,306 $ 174,180 $ 227,813 $ 178,859
Earnings per share (EPS)
Weighted average common shares outstanding, diluted 74,962,363 74,953,398 77,417,801 78,875,668 80,263,557 65,908,573
EPS available to common shareholders, diluted (GAAP) $ 2.53 $ 2.97 $ 3.26 $ 1.93 $ 2.41 $ 2.22
Adjusted operating EPS available to common shareholders, diluted (non-GAAP) $ 2.95 $ 2.92 $ 3.53 $ 2.21 $ 2.84 $ 2.71
Return on assets (ROA)
Average assets $ 20,512,402 $ 19,949,388 $ 19,977,551 $ 19,083,853 $ 16,840,310 $ 13,181,609
ROA (GAAP) 0.98% 1.18% 1.32% 0.83% 1.15% 1.11%
Adjusted operating ROA (non-GAAP) 1.14% 1.16% 1.43% 0.94% 1.35% 1.36%
Return on equity (ROE)
Adjusted operating earnings available to common shareholders (non-GAAP) $ 221,238 $ 219,011 $ 273,306 $ 174,180 $ 227,813 $ 178,859
Plus: Amortization of intangibles, tax effected 6,937 8,544 10,984 13,093 14,632 10,143
Adjusted operating earnings available to common shareholders before amortization
of intangibles (non-GAAP)
$ 228,175 $ 227,555 $ 284,290 $ 187,273 $ 242,445 $ 189,002
Average equity (GAAP) $ 2,440,525 $ 2,465,049 $ 2,725,330 $ 2,576,372 $ 2,451,435 $ 1,863,216
Less: Average intangible assets 948,162 964,942 985,559 1,000,654 991,926 776,944
Less: Average perpetual preferred stock 166,356 166,356 166,356 93,658 - -
Average tangible common equity (non-GAAP) $ 1,326,007 $ 1,333,751 $ 1,573,415 $ 1,482,060 $ 1,459,509 $ 1,086,272
ROE (GAAP) 8.27% 9.51% 9.68% 6.14% 7.89% 7.85%
Return on tangible common equity (ROTCE)
Net Income available to common shareholders (GAAP) $ 189,950 $ 222,642 $ 252,049 $ 152,570 $ 193,528 $ 146,248
Plus: Amortization of intangibles, tax effected 6,937 8,544 10,984 13,093 14,632 10,143
Net Income available to common shareholders before amortization of intangibles
(non-GAAP) $ 196,887 $ 231,186 $ 263,033 $ 165,663 $ 208,160 $ 156,391
ROTCE 14.85% 17.33% 16.72% 11.18% 14.26% 14.40%
Adjusted operating ROTCE (non-GAAP) 17.21% 17.06% 18.07% 12.64% 16.61% 17.40%
ADJUSTED OPERATING EARNINGS & FINANCIAL METRICS
For the years ended December 31, |