Q4 2022 Cadence Bank Earnings Call
Speaker 1: public.
Speaker 2: Ladies and gentlemen, thank you for your patience. At this time, I would now like to introduce.
Speaker 3: Wilf Sackerly, Director of Finance. Wil, please go ahead.
Speaker 4: prit.
Speaker 5: Good morning. Thank you for joining the K-NATS Bank fourth quarter 2022 earnings conference call. We have our executive management team here with us this morning Dan Paul Chris, Valerie and Hank.
Speaker 6: Our speakers will be referring to prepared slides during the discussion. You can find the slides by going to our investor relations page at our.canonsbank.com, where you'll find them on the link to our webcast, or you can view them at the exhibit today that we follow yesterday afternoon.
Speaker 7: These slides are also in the presentation section of our Investor Relations website.
Speaker 8: I would remind you that the presentation, along with our earnings release, contain our customary disclosures around forward-looking statements and any non-GAAP metrics that may be discussed.
Speaker 9: These disclosures regarding forlifting statements contain those documents applied to our presentation today.
Speaker 10: And now I'll turn to Dan Rollins for his opening comments.
Speaker 11: 22 market year of tremendous change, progress and success for our company. Highlighted by the fourth quarter completion of our rebranding across our footprint and the related systems integration. The results of our business development efforts.
Speaker 12: will be discussed this morning will validate the unity, optimism and excitement shared by our teammates as we are now operating under one name and brand.
Speaker 13: As we look at our annual and fourth quarter 2022 financial results, the storylines and key highlights are very similar for both the quarter and the full year. So I'd like to make a few comments about both of those.
Speaker 14: We reported adjusted net income for the fourth quarter of $142.9 million, or 78 cents per common share, which resulted in annual adjusted net income of $542 million, or $2.94 per common share.
Speaker 15: Adjusted PPNR was 195.5 million or 1.62 percent of average assets for the fourth quarter.
Speaker 16: We continue to benefit from a strong pipeline, which is reflected in net loan growth of $1.1 billion or 14% annualized for the fourth quarter and $3.5 billion or 13% for the full year. Our fourth quarter results were again very diverse from a product and geographic standpoint.
Speaker 17: We had six of the seven regions within our company report net growth for the quarter, and our corporate banking team had another outstanding quarter. We also continue to see favorable results from many of our specialized industry verticals along with our mortgage team.
Speaker 18: Total deposits were flat for the fourth quarter and down $860 million, or 2.2%, for the year. While we, like many of our peers, have seen a decline in average account balances and a shift towards interest-bearing products, our bankers remain focused on preserving and growing core deposit relationships. We continue to evaluate and tweak our product offerings.
Speaker 19: and our posted write structure. In an effort to ensure our relationship managers have the tools necessary to compete in this highly competitive environment.
Speaker 20: The rate environment, combined with the balance sheet dynamics that we just discussed, resulted in continued improvement in our net interest margin. Our fourth quarter margin improved five basis points linked quarter, and our margin for the full year was