RESULTS OF OPERATIONS
Net Interest Income
Net interest income is the most significant component of the Corporation’s net income. The Corporation manages the risk associated with changes in interest rates
through the techniques described within Item 7A, "Quantitative and Qualitative Disclosures About Market Risk." The following table provides a comparative
average balance sheet and net interest income analysis for 2020 compared to 2019 and 2018. Interest income and yields are presented on an FTE basis, using a
21% federal tax rate, as well as statutory interest expense disallowances. The discussion following this table is based on these tax-equivalent amounts.
2020 2019 2018
Average
Balance Interest
Yield/
Rate
Average
Balance Interest
Yield/
Rate
Average
Balance Interest
Yield/
Rate
(dollars in thousands)
ASSETS
Interest-earning assets:
Net Loans $ 18,270,390 $ 662,785 3.63 % $ 16,430,347 $ 747,119 4.55 % $ 15,815,263 $ 691,954 4.38 %
Taxable investment securities 2,182,410 58,173 2.66 2,278,448 62,556 2.74 2,246,681 56,044 2.49
Tax-exempt investment securities 825,057 26,641 3.22 500,398 17,998 3.57 416,119 15,285 3.65
Total investment securities 3,007,467 84,814 2.82 2,778,846 80,554 2.89 2,662,800 71,329 2.68
Loans held for sale 60,015 2,077 3.46 25,795 1,351 5.24 22,970 1,159 5.05
Other interest-earning assets 1,120,727 5,504 0.49 445,008 9,249 2.08 382,569 6,193 1.62
Total interest-earning assets 22,458,599 755,181 3.36 19,679,996 838,273 4.26 18,883,602 770,635 4.08
Noninterest-earning assets:
Cash and due from banks 139,146 119,144 104,595
Premises and equipment 238,864 239,376 231,762
Other assets 1,746,956 1,385,689 1,123,857
Less: ACL - loans (249,848) (166,165) (160,614)
Total Assets
$ 24,333,717 $ 21,258,040 $ 20,183,202
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Demand deposits $ 5,278,941 $ 11,390 0.22 % $ 4,384,059 $ 33,348 0.76 % $ 4,063,929 $ 22,789 0.56 %
Savings and money market deposits 5,550,234 14,654 0.26 5,018,381 41,823 0.83 4,684,023 27,226 0.58
Brokered deposits 310,763 2,387 0.77 245,501 5,779 2.35 121,863 2,480 2.04
Time deposits 2,546,305 41,615 1.63 2,869,326 50,825 1.77 2,675,670 35,217 1.32
Total interest-bearing deposits
13,686,243 70,045 0.51 12,517,267 131,775 1.05 11,545,485 87,712 0.76
Short-term borrowings 810,583 5,227 0.64 849,679 14,543 1.70 785,923 8,489 1.07
Long-term borrowings 1,254,300 38,398 3.06 942,600 30,599 3.25 977,573 31,857 3.26
Total interest-bearing liabilities
15,751,126 113,671 0.72 14,309,546 176,917 1.24 13,308,981 128,058 0.96
Noninterest-bearing liabilities:
Demand deposits 5,714,803 4,249,294 4,287,121
Total deposits/Cost of deposits
19,401,046 0.36 16,766,561 0.79 15,832,606 0.55
Other liabilities 476,139 393,130 331,336
Total Liabilities
21,942,068 18,951,970 17,927,438
Total Interest-bearing liabilities and non-
interest bearing deposits/Cost of funds 21,465,929 0.53 18,558,840 0.95 17,596,102 0.73
Shareholders’ equity
2,391,649 2,306,070 2,255,764
Total Liabilities and Shareholders’ Equity
$ 24,333,717 $ 21,258,040 $ 20,183,202
Net interest income/net interest margin (FTE)
641,510
2.86 %
661,356
3.36 %
642,577
3.40 %
Tax equivalent adjustment (12,303) (12,967) (12,121)
Net interest income
$ 629,207 $ 648,389 $ 630,456
(1) Average balances include non-performing loans.
(2) Average balances include amortized historical cost for AFS securities; the related unrealized holding gains (losses) are included in other assets.
(3) ACL - loans relates to the ACL specifically for Net Loans and does not include the ACL for OBS credit exposures, which is included in other
liabilities.
(1)
(2)
(2)
(3)
48