Seacoast Banking of Florida(SBCF) - 2024 Q2 - Quarterly Results

Executive Summary & CEO Commentary This section provides an overview of Seacoast Banking Corporation of Florida's Q2 2024 financial performance and the CEO's strategic outlook Second Quarter 2024 Financial Highlights Seacoast Banking Corporation of Florida achieved growth in net income and adjusted net income, significant improvement in pre-tax pre-provision earnings, and enhanced returns on assets and tangible common equity in Q2 2024 Key Financial Metrics for Q2 2024 | Metric | 2Q24 | 1Q24 | 2Q23 | | :-------------------------------- | :----- | :----- | :----- | | Net Income (USD million) | 30.2 | 26.0 | 31.2 | | Diluted EPS (USD) | 0.36 | 0.31 | 0.37 | | Adjusted Net Income (USD million) | 30.3 | 31.1 | 43.5 | | Adjusted Diluted EPS (USD) | 0.36 | 0.37 | 0.51 | | Pre-Tax Pre-Provision Earnings (USD million) | 44.6 | 35.7 | 40.9 | | Pre-Tax Pre-Provision Earnings (QoQ Change) | +25% | - | - | | Pre-Tax Pre-Provision Earnings (YoY Change) | +9% | - | - | | Average Return on Tangible Assets (ROATA) | 1.00% | 0.89% | 1.06% | | Average Return on Tangible Common Equity (ROTCE) | 10.75% | 9.55% | 12.08% | CEO's Strategic Outlook CEO Charles M. Shaffer highlights the company's mid-2024 transformation with loan growth, stable deposit costs, improved net interest income, and strategic investments - The company has entered a transformational phase in mid-2024, showing loan growth and stabilizing deposit costs, which supports an improved net interest income outlook[1] - Noninterest income is growing while expenses are carefully managed, driven by investments in revenue-generating bankers leading to stronger loan production and pipeline growth[1] - The company maintains a disciplined credit approach with a strong balance sheet, a 14.8% Tier 1 capital ratio, a 9.30% tangible common equity to tangible assets ratio, ample liquidity, and an 83% loan-to-deposit ratio[1] Financial Performance Overview This section details the company's net income, earnings per share, net revenues, pre-tax pre-provision earnings, net interest income, noninterest income, noninterest expense, credit loss provision, income tax expense, and efficiency ratios Net Income and Earnings Per Share Q2 2024 net income and diluted EPS increased quarter-over-quarter but slightly decreased year-over-year, while adjusted figures declined both QoQ and YoY Net Income and EPS (GAAP) | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------- | :----- | :----- | :----- | | Net Income (USD million) | 30.2 | 26.0 | 31.2 | | Diluted EPS (USD) | 0.36 | 0.31 | 0.37 | Adjusted Net Income and EPS (Non-GAAP) | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------- | :----- | :----- | :----- | | Adjusted Net Income (USD million) | 30.3 | 31.1 | 43.5 | | Adjusted Diluted EPS (USD) | 0.36 | 0.37 | 0.51 | Net Revenues and Pre-Tax Pre-Provision Earnings Q2 2024 net revenues saw a slight QoQ increase but a YoY decrease, while pre-tax pre-provision earnings grew both QoQ and YoY Net Revenues and Pre-Tax Pre-Provision Earnings | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------------- | :----- | :----- | :----- | | Net Revenues (USD million) | 126.6 | 125.6 | 148.5 | | Net Revenues (QoQ Change) | +1% | - | - | | Net Revenues (YoY Change) | -15% | - | - | | Adjusted Net Revenues (USD million) | 126.9 | 125.6 | 148.9 | | Pre-Tax Pre-Provision Earnings (USD million) | 44.6 | 35.7 | 40.9 | | Pre-Tax Pre-Provision Earnings (QoQ Change) | +25% | - | - | | Pre-Tax Pre-Provision Earnings (YoY Change) | +9% | - | - | | Adjusted Pre-Tax Pre-Provision Earnings (USD million) | 44.5 | 42.5 | 57.2 | | Adjusted Pre-Tax Pre-Provision Earnings (QoQ Change) | +5% | - | - | | Adjusted Pre-Tax Pre-Provision Earnings (YoY Change) | -22% | - | - | Net Interest Income and Margin Q2 2024 net interest income slightly decreased QoQ and significantly YoY, primarily due to increased deposit interest expense and the prevailing interest rate environment Net Interest Income and Net Interest Margin | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------------- | :----- | :----- | :----- | | Net Interest Income (USD million) | 104.4 | 105.1 | 127.0 | | Net Interest Income (QoQ Change) | -1% | - | - | | Net Interest Income (YoY Change) | -18% | - | - | | Net Interest Margin | 3.18% | 3.24% | 3.86% | | Net Interest Margin Excluding Acquired Loan Amortization | 2.87% | 2.91% | - | | Loan Yield | 5.93% | 5.90% | 5.89% | | Securities Yield | 3.69% | 3.47% | 3.13% | | Cost of Deposits | 2.31% | 2.19% | 1.38% | - The decline in net interest income primarily reflects increased deposit balances and higher interest expense on deposits in a sustained elevated interest rate environment[19] Noninterest Income Q2 2024 noninterest income increased both QoQ and YoY, driven by growth in service charges, wealth management, insurance agency, and BOLI income, with other income also rising from a commercial real estate loan sale Noninterest Income Breakdown | Metric | 2Q24 (USD million) | QoQ Change | YoY Change | | :------------------- | :-------------- | :------ | :------ | | Total Noninterest Income | 22.2 | +8% | +3% | | Service Charges on Deposits | 5.3 | +8% | +17% | | Wealth Management Income | 3.8 | +6% | +14% | | Insurance Agency Income | 1.4 | +5% | +17% | | BOLI Income | 2.6 | +15% | +26% | | Other Income | 6.0 | +14% | +25% | - The wealth management division's assets under management reached USD 1.9 billion, reflecting continued success in building client relationships[19] - The Durbin Amendment, effective July 1, 2023, limits network interchange fee revenue from debit card transactions[19] Noninterest Expense Q2 2024 noninterest expense significantly decreased QoQ and YoY due to completed cost-saving initiatives, including reduced salaries, benefits, data processing contract termination, and branch consolidation, despite increased marketing expenses Noninterest Expense Breakdown | Metric | 2Q24 (USD million) | QoQ Change | YoY Change | | :------------------- | :-------------- | :------ | :------ | | Total Noninterest Expense | 82.5 | -9% | -23% | | Salaries and Wages | 38.9 | -3% | - | | Employee Benefits | 6.9 | -13% | - | | Outsourced Data Processing Costs | 8.2 | -32% | - | | Occupancy Costs | 7.2 | -11% | - | | Marketing Expenses | 3.3 | +23% | - | - Q1 included USD 2.1 million in severance-related expenses and USD 4.1 million for data processing contract termination and system integration, leading to a significant decrease in related expenses in Q2[3] Provision for Credit Losses and Income Tax Expense Q2 2024 provision for credit losses substantially increased QoQ and shifted from a net benefit to a provision YoY, while income tax expense rose QoQ but fell YoY Provision for Credit Losses and Income Tax Expense | Metric | 2Q24 (USD million) | 1Q24 (USD million) | 2Q23 (USD million) | | :------------------- | :-------------- | :-------------- | :-------------- | | Provision for Credit Losses | 4.9 | 1.4 | (0.8) | | Income Tax Expense | 8.9 | 7.8 | 10.2 | Efficiency Ratio Q2 2024 efficiency ratio and adjusted efficiency ratio both significantly improved QoQ and YoY, reflecting the company's ongoing commitment to expense control Efficiency Ratios | Metric | 2Q24 | 1Q24 | 2Q23 | | :------------------- | :----- | :----- | :----- | | Efficiency Ratio | 60.21% | 66.78% | 67.34% | | Adjusted Efficiency Ratio | 60.21% | 61.13% | 56.44% | - The company remains focused on disciplined expense control while strategically investing for growth[3] Balance Sheet Highlights This section highlights the company's total assets, shareholders' equity, debt securities, loans, loan pipelines, and deposits, showcasing growth and strategic positioning Total Assets and Shareholders' Equity As of June 30, 2024, total assets and shareholders' equity both increased, with book value per share and tangible book value per share also showing an upward trend Total Assets and Shareholders' Equity | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :------------------- | :-------------- | :-------------- | :-------------- | | Total Assets (USD billion) | 15.0 | 14.8 | 15.0 | | Total Shareholders' Equity (USD billion) | 2.1 | 2.1 | 2.1 | | Book Value Per Share (USD) | 24.98 | 24.93 | 24.14 | | Tangible Book Value Per Share (USD) | 15.41 | 15.26 | 14.24 | Debt Securities As of June 30, 2024, total debt securities slightly increased, primarily consisting of available-for-sale securities, with held-to-maturity securities expected to recover unrealized losses over their holding period Debt Securities Composition | Metric | June 30, 2024 (USD billion) | March 31, 2024 (USD billion) | | :----------------------- | :----------------------- | :----------------------- | | Total Debt Securities | 2.6 | 2.6 | | Available-for-Sale Securities | 2.0 | - | | Held-to-Maturity Securities | 0.7 | - | | Fair Value of Held-to-Maturity Securities | 0.5 | - | - Held-to-maturity securities, primarily U.S. government agency-guaranteed mortgage-backed securities and collateralized mortgage obligations, are expected to recover any price depreciation over their holding period[4] Loans and Loan Pipelines Q2 2024 saw QoQ growth in total loans and a significant increase in loan originations, with loan pipelines also expanding, reflecting successful investments in talent and client relationships Loan Growth and Pipelines | Metric | June 30, 2024 (USD billion) | QoQ Change (Annualized) | 2Q24 Loan Originations (USD million) | 1Q24 Loan Originations (USD million) | | :----------------------- | :----------------------- | :------------- | :------------------------ | :------------------------ | | Total Loans | 10.0 | +2.4% | - | - | | Loan Originations | - | - | 538.0 | 394.0 | | Loan Originations (QoQ Change) | - | - | +37% | - | | Total Loan Pipeline | 834.4 | +46% (QoQ) | - | - | | Total Loan Pipeline (YoY Change) | - | - | - | +193% | | Commercial Loan Pipeline | 743.8 | +49% (QoQ) | - | - | | SBA Loan Pipeline | 29.3 | +87% (QoQ) | - | - | - The company continues to employ a prudent lending approach, rigorously underwriting loans and setting high risk-adjusted return expectations[4] - The significant growth in the commercial loan pipeline is attributed to the company's recent investments in attracting regional banking talent, which has brought in substantial new client relationships[4] Deposits As of June 30, 2024, total deposits grew QoQ, with customer transaction accounts comprising 50% of total deposits, supported by a diversified deposit base and ample liquidity Deposit Overview | Metric | June 30, 2024 (USD billion) | QoQ Change (Annualized) | | :----------------------- | :----------------------- | :------------- | | Total Deposits | 12.1 | +3.4% | | % of Customer Transaction Accounts | 50% | - | | % from Top Ten Depositors | ~4% | - | | Average Deposits per Banking Center (USD million) | 157 | - | | % of Uninsured Deposits | 34% | - | | % of Uninsured and Uncollateralized Deposits Excluding Public Funds | 29% | - | | % of Consumer Deposits | 42% | - | | % of Commercial Deposits | 58% | - | - The company possesses ample liquidity sources (cash and credit lines) equivalent to 154% of uninsured deposits and 181% of uninsured and uncollateralized deposits[4] Asset Quality This section reviews the company's nonperforming loans, nonperforming assets, allowance for credit losses, net charge-offs, and portfolio diversification strategies Nonperforming Loans and Assets Q2 2024 nonperforming loans and assets both decreased QoQ but increased YoY, with similar trends observed in their respective ratios to total loans and assets Nonperforming Loans and Assets | Metric | June 30, 2024 (USD million) | March 31, 2024 (USD million) | June 30, 2023 (USD million) | | :------------------- | :----------------------- | :----------------------- | :----------------------- | | Nonperforming Loans | 59.9 | 77.2 | 48.3 | | Nonperforming Loans as % of Total Loans | 0.60% | 0.77% | 0.48% | | Nonperforming Assets as % of Total Assets | 0.45% | 0.57% | 0.37% | Allowance for Credit Losses and Net Charge-offs Q2 2024 allowance for credit losses as a percentage of total loans decreased both QoQ and YoY, while net charge-offs significantly increased, reflecting prior established reserves Allowance for Credit Losses and Net Charge-offs | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :------------------- | :-------------- | :-------------- | :-------------- | | Allowance for Credit Losses as % of Total Loans | 1.41% | 1.47% | 1.58% | | Net Charge-offs (USD million) | 9.9 | 3.6 | 0.7 | - This quarter's charge-offs primarily reflect reserves previously established within the allowance for credit losses[5] Portfolio Diversification A key element of the company's lending strategy is portfolio diversification across asset, industry, and loan types, maintaining granularity with small average loan sizes and exposure well below regulatory guidance Loan Portfolio Risk Exposure | Loan Type | % of Total Bank Risk-Weighted Capital (June 30, 2024) | % of Total Bank Risk-Weighted Capital (March 31, 2024) | | :------------------- | :----------------------------------- | :----------------------------------- | | Construction and Land Development | 36% | 39% | | Commercial Real Estate | 235% | 236% | | Average Loan Size (USD thousand) | 345 | - | | Average Commercial Loan Size (USD thousand) | 758 | - | - The company maintains broad exposure across industries and collateral types, with small average loan sizes contributing to portfolio granularity[5] Capital and Liquidity This section details the company's strong capital position, liquidity status, and share repurchase program, demonstrating financial strength and shareholder value initiatives Capital Ratios As of June 30, 2024, the company maintained a strong capital position, with all key capital ratios exceeding regulatory requirements, classifying it as "well-capitalized" Capital Ratios | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :------------------- | :-------------- | :-------------- | :-------------- | | Tier 1 Capital Ratio | 14.8% | 14.7% | 13.5% | | Total Capital Ratio | 16.2% | - | - | | Common Equity Tier 1 Capital Ratio | 14.1% | - | - | | Tier 1 Leverage Ratio | 11.1% | - | - | | Tangible Common Equity to Tangible Assets Ratio | 9.30% | 9.25% | 8.53% | - The company is considered "well-capitalized" and meets applicable U.S. regulatory capital ratio requirements[46] Liquidity Position The company maintains a strong liquidity position with ample cash and cash equivalents, along with significant borrowing capacity sufficient to cover uninsured and uncollateralized deposits Liquidity Metrics | Metric | June 30, 2024 (USD million) | | :----------------------- | :----------------------- | | Cash and Cash Equivalents | 749.5 | | Federal Home Loan Bank Advances | 180.0 | | Loan-to-Deposit Ratio | 82.9% | | Available Borrowing Capacity (USD billion) | 5.6 | | Available Collateralized Credit Lines (USD billion) | 4.3 | | Unencumbered Debt Securities | 944.3 | | Available Unsecured Credit Lines (USD billion) | 0.3 | | Liquidity Sources Covering Uninsured and Uncollateralized Deposits | 181% | Share Repurchase Program The Board of Directors has authorized a common stock repurchase program of up to USD 100 million, with shares repurchased during Q2 2024 - The Board of Directors has authorized a common stock repurchase program of up to USD 100 million[46] - In Q2 2024, 39,892 shares of the company's common stock were repurchased under the program[46] Company Information This section provides an overview of Seacoast Banking Corporation of Florida and details regarding its upcoming conference call About Seacoast Banking Corporation of Florida Seacoast Banking Corporation of Florida is one of Florida's largest community banks, offering commercial and consumer banking, wealth management, and mortgage services through 77 branches and digital solutions - Seacoast Banking Corporation of Florida is one of Florida's largest community banks, with approximately USD 15.0 billion in assets and USD 12.1 billion in deposits as of June 30, 2024[7] - The company provides commercial and consumer banking, wealth management, and mortgage services to customers through 77 full-service branches across Florida and advanced mobile and online banking solutions[7] Conference Call Details Seacoast will host a conference call on July 26, 2024, to discuss Q2 2024 earnings and business trends, with participation details and access to materials provided - A conference call will be held on July 26, 2024, at 10:00 AM ET, to discuss Q2 2024 earnings results and business trends[48] - Investors can participate by dialing (800) 715-9871 (Conference ID: 5967990)[48] - Conference charts and a replay will be available on the company's website, www.SeacoastBanking.com, under the "News/Events" and "Company Information" sections[48] Cautionary Notice Regarding Forward-Looking Statements This section provides a disclaimer regarding forward-looking statements, outlining the inherent risks and uncertainties that could cause actual results to differ materially Forward-Looking Statements Disclaimer This press release contains forward-looking statements as defined by securities laws, concerning future financial and operational results, cost savings, revenue growth, and economic conditions, with actual results potentially differing due to various risks - This press release contains "forward-looking statements" concerning future financial and operating results, cost savings, revenue growth, economic and seasonal conditions, and potential earnings improvements from cost controls, tax law changes, new initiatives, and bank integrations[32] - Forward-looking statements involve known and unknown risks, uncertainties, and other factors beyond the company's control that could cause actual results to differ materially from those stated[32] - The company undertakes no obligation to update any forward-looking statements and advises investors to refer to the risk factors described in its reports filed with the SEC[8][32] Unaudited Financial Tables This section presents the company's unaudited financial tables, including highlights, condensed consolidated statements of income and balance sheets, credit analysis, average balances, and GAAP to non-GAAP reconciliations Financial Highlights (Unaudited) This table provides the company's unaudited financial highlights, including key income, profit, balance sheet, and performance ratio data, along with per-share figures, covering recent quarterly and six-month trends Financial Highlights (Unaudited) | Metric | 2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | | :----------------------------------------- | :---- | :---- | :---- | :---- | :---- | | Net Income (USD thousand) | 30,244 | 26,006 | 29,543 | 31,414 | 31,249 | | Adjusted Net Income (USD thousand) | 30,277 | 31,132 | 31,363 | 34,170 | 43,489 | | Net Interest Income (USD thousand) | 104,657 | 105,298 | 111,035 | 119,505 | 127,153 | | Net Interest Margin (%) | 3.18 | 3.24 | 3.36 | 3.57 | 3.86 | | Diluted EPS (USD) | 0.36 | 0.31 | 0.35 | 0.37 | 0.37 | | Average Return on Tangible Assets (%) | 1.00 | 0.89 | 0.99 | 1.04 | 1.06 | | Efficiency Ratio (%) | 60.21 | 66.78 | 60.32 | 62.60 | 67.34 | | Total Loans (USD thousand) | 10,038,508 | 9,978,052 | 10,062,940 | 10,011,186 | 10,117,919 | | Total Deposits (USD thousand) | 12,116,118 | 12,015,840 | 11,776,935 | 12,107,834 | 12,283,267 | | Total Assets (USD thousand) | 14,952,613 | 14,830,015 | 14,580,249 | 14,823,007 | 15,041,932 | Condensed Consolidated Statements of Income (Unaudited) This table presents the company's unaudited condensed consolidated statements of income, detailing interest income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, and income tax expense to arrive at net income and EPS Condensed Consolidated Statements of Income (Unaudited) | Metric (USD thousand) | 2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | | :----------------------------------- | :---- | :---- | :---- | :---- | :---- | | Total Interest Income | 179,808 | 175,706 | 176,855 | 179,846 | 174,283 | | Total Interest Expense | 75,384 | 70,628 | 66,036 | 60,540 | 47,320 | | Net Interest Income | 104,424 | 105,078 | 110,819 | 119,306 | 126,963 | | Provision for Credit Losses | 4,918 | 1,368 | 3,990 | 2,694 | (764) | | Total Noninterest Income | 22,184 | 20,497 | 17,338 | 17,793 | 21,576 | | Total Noninterest Expense | 82,537 | 90,371 | 86,367 | 93,915 | 107,865 | | Income Tax Expense | 8,909 | 7,830 | 8,257 | 9,076 | 10,189 | | Net Income | 30,244 | 26,006 | 29,543 | 31,414 | 31,249 | | Diluted EPS | 0.36 | 0.31 | 0.35 | 0.37 | 0.37 | Condensed Consolidated Balance Sheets (Unaudited) This table provides the company's unaudited condensed consolidated balance sheets, detailing the composition of assets, liabilities, and shareholders' equity, including cash, securities, loans, deposits, and capital structure Condensed Consolidated Balance Sheets (Unaudited) | Metric (USD thousand) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | | :----------------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Total Cash and Cash Equivalents | 749,525 | 682,724 | 447,182 | 695,982 | 727,883 | | Total Debt Securities | 2,625,259 | 2,619,359 | 2,516,333 | 2,533,249 | 2,624,043 | | Total Loans | 10,038,508 | 9,978,052 | 10,062,940 | 10,011,186 | 10,117,919 | | Net Loans (Less Allowance for Credit Losses) | 9,896,867 | 9,831,383 | 9,914,009 | 9,861,525 | 9,958,204 | | Total Assets | 14,952,613 | 14,830,015 | 14,580,249 | 14,823,007 | 15,041,932 | | Total Deposits | 12,116,118 | 12,015,840 | 11,776,935 | 12,107,834 | 12,283,267 | | Total Liabilities | 12,822,232 | 12,712,265 | 12,472,163 | 12,774,613 | 12,987,900 | | Total Shareholders' Equity | 2,130,381 | 2,117,750 | 2,108,086 | 2,048,394 | 2,054,032 | Credit Analysis (Unaudited) This table presents the company's unaudited credit quality data, including trends in net charge-offs, allowance for credit losses, nonperforming loans, nonperforming assets, and loan portfolio composition Credit Analysis (Unaudited) | Metric | 2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | | :----------------------------------- | :---- | :---- | :---- | :---- | :---- | | Net Charge-offs (USD thousand) | 9,946 | 3,630 | 4,720 | 12,748 | 705 | | Net Charge-offs as % of Average Loans | 0.40 | 0.15 | 0.19 | 0.50 | 0.03 | | Allowance for Credit Losses (USD thousand) | 141,641 | 146,669 | 148,931 | 149,661 | 159,715 | | Allowance for Credit Losses as % of Total Loans | 1.41 | 1.47 | 1.48 | 1.49 | 1.58 | | Nonperforming Loans (USD thousand) | 59,927 | 77,205 | 65,104 | 41,508 | 48,326 | | Nonperforming Loans as % of Total Loans | 0.60 | 0.77 | 0.65 | 0.41 | 0.48 | | Total Nonperforming Assets (USD thousand) | 66,804 | 84,520 | 72,664 | 48,724 | 55,852 | | Nonperforming Assets as % of Total Assets | 0.45 | 0.57 | 0.50 | 0.33 | 0.37 | | Total Loans (USD thousand) | 10,038,508 | 9,978,052 | 10,062,940 | 10,011,186 | 10,117,919 | Average Balances, Interest Income and Expenses, Yields and Rates (Unaudited) - Quarterly This table provides the company's unaudited average balances, interest income and expenses, yields, and rates, detailing the composition of interest-earning assets and interest-bearing liabilities with corresponding yields and costs, including quarterly and six-month trends Average Balances, Interest Income and Expenses, Yields and Rates (Unaudited) - Quarterly | Metric | 2Q'24 | 1Q'24 | 2Q'23 | | :----------------------------------- | :---- | :---- | :---- | | Average Balance of Total Interest-Earning Assets (USD thousand) | 13,249,604 | 13,085,616 | 13,208,698 | | Total Interest Income (USD thousand) | 180,041 | 175,926 | 174,473 | | Yield on Total Interest-Earning Assets (%) | 5.47 | 5.41 | 5.30 | | Average Balance of Total Interest-Bearing Liabilities (USD thousand) | 9,101,576 | 8,889,220 | 8,407,547 | | Total Interest Expense (USD thousand) | 75,384 | 70,628 | 47,320 | | Cost of Total Interest-Bearing Liabilities (%) | 3.33 | 3.20 | 2.26 | | Net Interest Income (USD thousand) | 104,657 | 105,298 | 127,153 | | Net Interest Margin (%) | 3.18 | 3.24 | 3.86 | | Cost of Deposits (%) | 2.31 | 2.19 | 1.38 | Average Balances, Interest Income and Expenses, Yields and Rates (Unaudited) - Six Months | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :----------------------------------- | :-------------------- | :-------------------- | | Average Balance of Total Interest-Earning Assets (USD thousand) | 13,167,611 | 12,759,225 | | Total Interest Income (USD thousand) | 355,966 | 332,663 | | Yield on Total Interest-Earning Assets (%) | 5.44 | 5.26 | | Average Balance of Total Interest-Bearing Liabilities (USD thousand) | 8,995,399 | 7,998,719 | | Total Interest Expense (USD thousand) | 146,012 | 74,159 | | Cost of Total Interest-Bearing Liabilities (%) | 3.26 | 1.87 | | Net Interest Income (USD thousand) | 209,954 | 258,504 | | Net Interest Margin (%) | 3.21 | 4.09 | | Cost of Deposits (%) | 2.25 | 1.09 | Customer Relationship Funding (Unaudited) This table presents the company's unaudited customer relationship funding data, detailing the composition of noninterest-bearing demand, interest-bearing demand, savings, money market, and time deposits, categorized by commercial, retail, public funds, and brokered Customer Relationship Funding (Unaudited) | Deposit Type (USD thousand) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | | :----------------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Total Noninterest-Bearing Demand Deposits | 3,397,918 | 3,555,401 | 3,544,981 | 3,868,132 | 4,139,052 | | Total Interest-Bearing Demand Deposits | 2,821,092 | 2,711,041 | 2,790,210 | 2,800,152 | 2,816,656 | | Total Savings Deposits | 566,052 | 608,088 | 651,454 | 721,558 | 824,255 | | Total Money Market Deposits | 3,707,761 | 3,531,029 | 3,314,288 | 3,143,897 | 2,859,164 | | Total Time Deposits | 1,623,295 | 1,610,281 | 1,476,002 | 1,574,095 | 1,644,140 | | Total Deposits | 12,116,118 | 12,015,840 | 11,776,935 | 12,107,834 | 12,283,267 | GAAP to Non-GAAP Reconciliation (Unaudited) This section provides the company's unaudited GAAP to non-GAAP financial metric reconciliation, detailing adjustments from GAAP data to non-GAAP metrics used by management for performance analysis, including adjusted net income, pre-tax pre-provision earnings, and efficiency ratios GAAP to Non-GAAP Reconciliation (Unaudited) | Metric (USD thousand) | 2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | | :----------------------------------- | :---- | :---- | :---- | :---- | :---- | | Net Income (GAAP) | 30,244 | 26,006 | 29,543 | 31,414 | 31,249 | | Adjusted Net Income (Non-GAAP) | 30,277 | 31,132 | 31,363 | 34,170 | 43,489 | | Pre-Tax Pre-Provision Earnings (GAAP) | 44,555 | 35,674 | 42,006 | 43,383 | 40,864 | | Adjusted Pre-Tax Pre-Provision Earnings (Non-GAAP) | 44,490 | 42,513 | 45,016 | 47,349 | 57,202 | | Diluted EPS (GAAP) (USD) | 0.36 | 0.31 | 0.35 | 0.37 | 0.37 | | Adjusted Diluted EPS (Non-GAAP) (USD) | 0.36 | 0.37 | 0.37 | 0.40 | 0.51 | | Efficiency Ratio (GAAP) (%) | 60.21% | 66.78% | 60.32% | 62.60% | 67.34% | | Adjusted Efficiency Ratio (Non-GAAP) (%) | 60.21% | 61.13% | 60.32% | 60.19% | 56.44% | - Management uses these non-GAAP financial measures to analyze company performance and believes these disclosures provide useful supplemental information for a clearer understanding of results[56]