• Old National reports 1st quarter earnings of $86.8 million, or $0.52 per share

    Source: Nasdaq GlobeNewswire / 19 Apr 2021 08:00:03   America/New_York

    EVANSVILLE, Ind., April 19, 2021 (GLOBE NEWSWIRE) --

    Old National Bancorp (NASDAQ: ONB) reports 1Q21 net income of $86.8 million, diluted EPS of $0.52. 
    Adjusted1 net income of $86.4 million, or $0.52 per diluted share.

    CEO COMMENTARY:

    "Old National's positive first quarter results were driven by record first-quarter commercial loan production, strong mortgage revenue and excellent credit quality," said Chairman and CEO Jim Ryan. "We also continue to work with our small business and non-profit clients who are affected by the pandemic to help them gain access to Paycheck Protection Program funds and also to complete the loan forgiveness process."

    FIRST QUARTER HIGHLIGHTS2:

    Net income
    • Net income of $86.8 million
    • Earnings per diluted share of $0.52
      
    Net interest
    income/NIM
    • Net interest income on a fully taxable equivalent basis of $151.6 million compared to $164.6 million
    • Net interest margin on a fully taxable equivalent basis of 2.94% compared to 3.26%
      





    Operating
    Performance









    • Pre-provision net revenue1 (“PPNR”) of $90.6 million
    • Adjusted PPNR1 of $91.3 million, up 17.9% over first quarter of 2020
    • Noninterest expense of $117.7 million
    • Adjusted noninterest expense1 of $115.0 million
    • Efficiency ratio1 of 55.57%
    • Adjusted efficiency ratio1 of 54.25%
      



    Loans and
    Credit
    Quality
    • End-of-period total loans3 of $13,975.5 million compared to $13,849.7 million
                    º       Total commercial loans increased $59.0 million, excluding the $181.1 million increase in PPP loans

    • First-quarter total commercial production of $718.0 million
    • Provision for credit losses was a recapture of $17.4 million
    • March 31 pipeline of $2.6 billion
    • Net recoveries of $5 thousand compared to net recoveries of $1.1 million
    • Non-performing loans of 1.13% of total loans compared to 1.20%
     


    Return Profile
    & Capital
    • Return on average common equity of 11.69%
    • Return on average tangible common equity1 of 18.88%
    • Adjusted return on average tangible common equity1 of 18.79%
    • No shares of common stock were repurchased during the current quarter
      

    Notable Items
    • $1.5 million in ONB Way charges
    • $1.2 million in tax credit amortization

    1 Non-GAAP financial measure that Management believes is useful in evaluating the financial results of the Company – please refer to the Non GAAP reconciliations contained in this release 2 Comparisons are on a linked-quarter basis, unless otherwise noted 3 Includes loans held for sale

    RESULTS OF OPERATIONS

    Old National Bancorp reported first quarter 2021 net income of $86.8 million, or $0.52 per diluted share.

    Included in the first quarter were pre-tax charges of $1.5 million for the ONB Way. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $86.4 million, or $0.52 per diluted share.

    LOANS
    Strong commercial production continues.

    • Period-end total loans were $13,975.5 million at March 31, 2021, an increase of $125.8 million, or 3.6% annualized, when compared to the $13,849.7 million at December 31, 2020.
    • Paycheck Protection Program (PPP) loans totaled $1,124.1 million at March 31, 2021, compared to $943.0 million at December 31, 2020.
    • Excluding the $181.1 million increase in PPP loans during the quarter, total loans decreased $55.3 million, or 1.7% annualized.
    • Excluding PPP loans, total commercial and industrial loans increased $59.0 million, or 2.6% annualized.
    • Total commercial loan production in the first quarter was $718.0 million; period-end pipeline totaled $2.6 billion.
    • Consumer loans decreased $56.2 million to $1,579.0 million and residential mortgage loans decreased $45.1 million to $2,203.3 million.
    • Average total loans in the first quarter were $13,832.2 million, a decrease of $95.6 million from the fourth quarter of 2020.
    • Excluding PPP loans, average total loans in the first quarter increased $117.6 million from the fourth quarter of 2020.

    DEPOSITS
    Government stimulus actions continue to bolster deposit balances.

    • Period-end total deposits were $17,849.8 million at March 31, 2021, an increase of $812.3 million, or 19.1% annualized, when compared to the $17,037.5 million at December 31, 2020.
    • Interest-bearing checking deposits increased $56.7 million to $4,933.8 million at March 31, 2021.
    • Noninterest-bearing deposits increased $457.4 million to $6,091.1 million at March 31, 2021 from $5,633.7 million at December 31, 2020.
    • On average, total deposits in the first quarter were $17,341.8 million, compared to $16,810.6 million in the fourth quarter of 2020.

    NET INTEREST INCOME AND MARGIN
    Decrease in PPP fees negatively impact net interest income and margin; deposit and funding costs continue to decline.

    • Net interest income decreased to $148.1 million in the first quarter of 2021 compared to $161.1 million in the fourth quarter of 2020.
    • The net interest margin on a fully taxable equivalent basis decreased 32 basis points to 2.94% compared to 3.26% in the fourth quarter of 2020.
    • PPP interest and net fees combined were $12.6 million, or 10 basis points of net interest margin, in the first quarter of 2021 compared to $22.6 million, or 26 basis points of net interest margin, in the fourth quarter of 2020.
    • Accretion income was $4.7 million, or 9 basis points of net interest margin, in the first quarter of 2021 compared to $5.4 million, or 10 basis points of net interest margin, in the fourth quarter of 2020. In the first quarter of 2021, accretion income was 2.3% of adjusted total revenue.
    • Interest collected on nonaccrual loans was $0.6 million, or 1 basis point of net interest margin, in the first quarter of 2021 compared to $0.9 million, or 2 basis points of net interest margin, in the fourth quarter of 2020.
    • The cost of total deposits declined 2 basis points to 0.07% in the first quarter of 2021 while the cost of total interest-bearing deposits decreased 2 basis points to 0.11%.

    CREDIT QUALITY
    Strong credit quality remains a hallmark of the Old National franchise.

    • Old National recorded a provision recapture in the first quarter of 2021 of $17.4 million, compared to $1.1 million in provision recapture recorded in the fourth quarter of 2020.
    • Net recoveries in the first quarter were $5 thousand, compared to net recoveries of $1.1 million in the fourth quarter of 2020.
    • 30-89 day delinquencies were 0.12% at the end of the first quarter.
    • Non-performing loans decreased as a percentage of total loans to 1.13%.
    • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of March 31, 2021, the remaining discount on these acquired loans was $45.9 million.
    • The allowance for credit losses stood at $114.0 million, or 0.82% of total loans at March 31, 2021.

    NONINTEREST INCOME
    Noninterest income decreased due to lower capital markets income.

    • Total noninterest income for the first quarter of 2021 was $56.7 million, a decrease of $1.8 million from the fourth quarter of 2020.
    • Capital markets income decreased $2.8 million when compared to the fourth quarter of 2020.
    • Gains on sales of debt securities increased $1.8 million when compared to the fourth quarter of 2020.

    NONINTEREST EXPENSE
    First quarter expense discipline helped drive positive operating leverage1.

    • Noninterest expense for the first quarter of 2021 was $117.7 million and included $1.5 million in ONB Way charges and $1.2 million in tax credit amortization.
    • Excluding these items, adjusted noninterest expense for the first quarter was $115.0 million, compared to the $128.8 million in adjusted noninterest expense in the fourth quarter of 2020.
    • The first quarter efficiency ratio was 55.57%, while the adjusted efficiency ratio was 54.25%.
    • Adjusted operating leverage1 was +919 basis points for the first quarter of 2021 as compared to the first quarter of 2020.

    INCOME TAXES

    • On a fully taxable-equivalent basis, income tax expense in the first quarter was $21.2 million, resulting in a 19.6% FTE tax rate.
    • Income tax expense included $1.7 million in tax credit benefit.

    CAPITAL AND LIQUIDITY
    Capital ratios remain strong.

    • At the end of the first quarter, preliminary total risk-based capital was 12.84% and preliminary regulatory tier 1 capital was 12.01%.
    • Tangible common equity to tangible assets was 8.38% at the end of the first quarter compared to 8.64% in the fourth quarter of 2020.
    • The Company did not repurchase any shares of common stock during the first quarter.
    • A low loan to deposit ratio of 78.3%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.

    NON-GAAP RECONCILIATIONS

    ($ in millions, except EPS, shares in 000s)1Q21Adjustments4
    		  Adjusted 1Q21
    Total Revenues (FTE)$208.3  $(2.0) $206.3 
    Less: Provision for Credit Losses17.4  —  17.4 
    Less: Noninterest Expenses(117.7) 1.5  (116.2)
    Income before Income Taxes (FTE)$108.0  $(0.5) $107.5 
    Income Taxes(21.2) 0.1  (21.1)
    Net Income$86.8  $(0.4) $86.4 
    Average Shares Outstanding165,707  —  165,707 
    Earnings Per Share - Diluted$0.52  $—  $0.52 

    4 Tax-effect calculations use the current statutory FTE tax rates (federal + state)

    ($ in millions)1Q214Q20
    Net Interest Income$148.1 $161.1 
    Add: FTE Adjustment3.5 3.5 
    Net Interest Income (FTE)$151.6 $164.6 
    Average Earning Assets$20,601.7 $20,182.0 
    Net Interest Margin (FTE)2.94%3.26%


    ($ in millions)1Q211Q20
    Net Interest Income$148.1  $143.8 
    Add: FTE Adjustment3.5  3.3 
    Net Interest Income (FTE)$151.6  $147.1 
    Add: Total Noninterest Income56.7  57.5 
    Less: Noninterest Expense117.7  158.7 
    Pre-Provision Net Revenue$90.6  $45.9 
    Less: Debt Securities Gains/Losses(2.0) (5.2)
    Add: ONB Way Charges1.5  31.2 
    Add: Amortization of Tax Credit Investments1.2  5.5 
    Adjusted Pre-Provision Net Revenue$91.3  $77.4 


    ($ in millions)1Q214Q201Q20
    Noninterest Expense$117.7  $142.3  $158.7  
    Less: ONB Way Charges(1.5) (3.6) (31.2) 
    Noninterest Expense less Charges$116.2  $138.7  $127.5  
    Less: Amortization of Tax Credit Investments(1.2) (9.9) (5.5) 
    Adjusted Noninterest Expense$115.0  $128.8  $122.0  
    Less: Intangible Amortization(3.1) (3.3) (3.8) 
    Adjusted Noninterest Expense Less Intangible Amortization$111.9  $125.5  $118.2  
    Net Interest Income$148.1  $161.1  $143.8  
    FTE Adjustment3.5  3.5  3.3  
    Net Interest Income (FTE)$151.6  $164.6  $147.1  
    Total Noninterest Income56.7  58.5  57.5  
    Total Revenue (FTE)$208.3  $223.1  $204.6  
    Less: Debt Securities Gains/Losses(2.0) (0.2) (5.2) 
    Less: Gain on Branch Actions—  (0.1) —  
    Adjusted Total Revenue (FTE)$206.3  $222.8  $199.4  
    Efficiency Ratio55.57 %62.37 %77.71 %
    Adjusted Efficiency Ratio54.25 %56.35 %59.31 %
    Operating Leverage5 (basis points)2,762    
    Adjusted Operating Leverage6 (basis points)919    

    5 Year-over-year basis point change in noninterest expenses plus change in total revenue
    6 Year-over-year basis point change in adjusted noninterest expense plus change in adjusted total revenue

    ($ in millions)1Q214Q20
    Net Income$86.8  $74.1  
    Add: Intangible Amortization (net of tax7)2.3  2.4  
    Tangible Net Income$89.1  $76.5  
    Less: Securities Gains/Losses (net of tax7)(1.5) (0.2) 
    Add: Gains/Losses on Branch Actions (net of tax7)—  (0.1) 
    Add: ONB Way Charges (net of tax7)1.1  2.7  
    Adjusted Tangible Net Income$88.7  $78.9  
    Average Total Shareholders’ Equity2,970.0  2,932.6  
    Less: Average Goodwill(1,037.0) (1,037.0) 
    Less: Average Intangibles(44.4) (47.5) 
    Average Tangible Shareholders’ Equity$1,888.6  $1,848.1  
    Return on Average Tangible Common Equity18.88 %16.57 %
    Adjusted Return on Average Tangible Common Equity18.79 %17.08 %

    7Tax-effect calculations use the current statutory FTE tax rates (federal + state)

    CONFERENCE CALL AND WEBCAST
    Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Monday, April 19, 2021, to review first-quarter 2021 financial results. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. A replay of the call will also be available from Noon Central Time on April 19 through May 3. To access the replay, dial 1-855-859-2056, Conference ID Code 9135118.

    ABOUT OLD NATIONAL
    Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $23.7 billion in assets, it ranks among the top 100 banking companies in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for ten consecutive years.  Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships and keeping our clients at the center of all we do. This is an approach to business that we call The ONB Way. Today, Old National’s footprint includes Indiana, Kentucky, Michigan, Minnesota and Wisconsin. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.

    USE OF NON-GAAP FINANCIAL MEASURES
    This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

    FORWARD-LOOKING STATEMENT
    This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements include, but are not limited to, descriptions of Old National Bancorp’s (“Old National’s”) financial condition, results of operations, asset and credit quality trends and profitability.  Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning.  These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties, such as statements about the potential impacts of the COVID-19 pandemic. There are a number of factors that could cause actual results to differ materially from those in such statements.  Factors that might cause such a difference include, but are not limited to: the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses; market, economic, operational, liquidity, credit and interest rate risks associated with Old National’s business (including developments and volatility arising from the COVID-19 pandemic); competition; heightened regulatory and governmental oversight and scrutiny of Old National's business practices; current, pending or future government legislation and policies (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations); ability of Old National to execute its business plan, including the anticipated impact from the ONB Way strategic plan that may differ from current estimates; changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; failure or disruption of our information systems; significant changes in accounting, tax or regulatory practices or requirements, including the impact of the CECL standard as well as changes to address the impact of COVID-19; new legal obligations or liabilities or unfavorable resolutions of litigations; disruptive technologies in payment systems and other services traditionally provided by banks; computer hacking and other cybersecurity threats; other matters discussed in this press release; and other factors identified in our Annual Report on Form 10-K and other periodic filings with the SEC.  These forward-looking statements are made only as of the date of this press release, and Old National does not undertake an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.

    Financial Highlights (unaudited)
    ($ and shares in thousands, except per share data)
        
     Three Months Ended
     March 31,December 31,March 31,
     202120202020
    Income Statement   
    Net interest income$148,120   $161,079   $143,771 
    Tax equivalent adjustment (1)3,500  3,517  3,323 
    Net interest income - tax equivalent basis151,620  164,596  147,094 
    Provision for credit losses(17,356) (1,100) 16,950 
    Noninterest income56,712  58,552  57,502 
    Noninterest expense117,740  142,318  158,744 
    Net income86,818  74,120  22,640 
        
        
    Per Common Share Data   
    Weighted average diluted shares165,707  165,631  168,404 
    Net income (diluted)$0.52   $0.44   $0.13 
    Cash dividends0.14  0.14  0.14 
    Common dividend payout ratio (2)26 %31 %108%
    Book value$17.98   $17.98   $17.10 
    Stock price19.34  16.56  13.19 
    Tangible common book value (3)11.47  11.43  10.48 
        
        
    Performance Ratios   
    Return on average assets1.49 %1.30 %0.44%
    Return on average common equity11.69 %10.11 %3.20%
    Return on tangible common equity (3)18.77 %16.20 %5.89%
    Return on average tangible common equity (3)18.88 %16.57 %5.86%
    Net interest margin (FTE)2.94 %3.26 %3.31%
    Efficiency ratio (4)55.57 %62.37 %77.71%
    Net charge-offs (recoveries) to average loans0.00 %(0.03)%0.21%
    Allowance for credit losses to ending loans0.82 %0.95 %0.86%
    Non-performing loans to ending loans1.13 %1.20 %1.16%
        
        
    Balance Sheet (EOP)   
    Total loans$13,925,261 $13,786,479 $12,384,612
    Total assets23,744,45122,960,62220,741,141
    Total deposits17,849,75517,037,45314,305,362
    Total borrowed funds2,574,9872,676,5543,245,214
    Total shareholders' equity2,979,4472,972,6562,823,435
        
        
    Capital Ratios (3)   
    Risk-based capital ratios (EOP):   
    Tier 1 common equity12.01 %11.75 %11.40%
    Tier 112.01 %11.75 %11.40%
    Total12.84 %12.69 %12.28%
    Leverage ratio (to average assets)8.33 %8.20 %8.46%
        
    Total equity to assets (averages)12.78 %12.83 %13.91%
    Tangible common equity to tangible assets8.38 %8.64 %8.81%
        
        
    Nonfinancial Data   
    Full-time equivalent employees2,4512,4452,736
    Banking centers162162192
        
    (1) Calculated using the federal statutory tax rate in effect of 21% for all periods.
    (2) Cash dividends per share divided by net income per share (basic).
    (3) Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
       March 31, 2021 capital ratios are preliminary.   
    (4) Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and
          noninterest revenues, excluding net gains from debt securities transactions. This presentation excludes amortization of intangibles
          and net debt securities gains, as is common in other company releases, and better aligns with true operating performance.
    FTE - Fully taxable equivalent basis             EOP - End of period actual balances


        
    Income Statement (unaudited)
    ($ and shares in thousands, except per share data)
        
     Three Months Ended
     March 31,December 31,March 31,
     202120202020
    Interest income$159,237  $173,249  $167,999 
    Less: interest expense11,117  12,170  24,228 
    Net interest income148,120  161,079  143,771 
    Provision for credit losses(17,356) (1,100) 16,950 
    Net interest income after provision for credit losses165,476  162,179  126,821 
        
    Wealth management fees9,708  9,259  8,884 
    Service charges on deposit accounts8,124  8,724  10,077 
    Debit card and ATM fees5,143  5,072  4,998 
    Mortgage banking revenue16,525  16,233  11,119 
    Investment product fees5,864  5,544  5,874 
    Capital markets income3,715  6,545  4,328 
    Company-owned life insurance2,714  3,153  3,080 
    Other income2,926  3,861  3,968 
    Gains (losses) on sales of debt securities1,993  161  5,174 
    Total noninterest income56,712  58,552  57,502 
        
    Salaries and employee benefits68,117  78,001  79,173 
    Occupancy14,872  13,008  15,133 
    Equipment3,969  3,778  5,305 
    Marketing2,062  3,242  3,097 
    Data processing12,353  12,362  9,467 
    Communication2,878  2,396  2,798 
    Professional fees2,724  4,834  4,293 
    FDIC assessment1,607  1,780  1,609 
    Amortization of intangibles3,075  3,244  3,776 
    Amortization of tax credit investments1,202  9,871  5,515 
    Other expense4,881  9,802  28,578 
    Total noninterest expense117,740  142,318  158,744 
        
    Income before income taxes104,448  78,413  25,579 
    Income tax expense17,630  4,293  2,939 
    Net income$86,818  $74,120  $22,640 
        
    Diluted Earnings Per Share    
    Net income$0.52  $0.44  $0.13 
        
    Average Common Shares Outstanding   
    Basic164,997  164,799  167,748 
    Diluted165,707  165,631  168,404 
        
    Common shares outstanding at end of period165,676  165,367  165,109 
        


     
    Balance Sheet (unaudited)
    ($ in thousands)
     March 31, December 31, March 31,
     2021 2020 2020
    Assets     
    Federal Reserve Bank account$293,230  $307,967  $130,295 
    Money market investments10,217  13,537  9,349 
    Investments:     
    Treasury and government-sponsored agencies1,602,423  852,196  530,904 
    Mortgage-backed securities3,385,339  3,339,098  3,210,000 
    States and political subdivisions1,467,804  1,492,162  1,302,395 
    Other securities440,810  458,639  497,709 
    Total investments6,896,376  6,142,095  5,541,008 
    Loans held for sale, at fair value50,281  63,250  54,209 
    Loans:     
    Commercial4,068,896  3,956,422  3,046,579 
    Commercial and agriculture real estate6,074,135  5,946,512  5,283,464 
    Consumer:     
    Home equity541,149  556,414  561,789 
    Other consumer loans1,037,804  1,078,709  1,164,929 
    Subtotal of commercial and consumer loans11,721,984  11,538,057  10,056,761 
    Residential real estate2,203,277  2,248,422  2,327,851 
    Total loans13,925,261  13,786,479  12,384,612 
    Total earning assets21,175,365  20,313,328  18,119,473 
          
    Allowance for credit losses(114,037) (131,388) (106,380)
    Non-earning Assets:     
    Cash and due from banks154,330  268,208  203,533 
    Premises and equipment, net466,559  464,408  462,364 
    Operating lease right-of-use assets74,611  76,197  86,819 
    Goodwill and other intangible assets1,079,933  1,083,008  1,093,323 
    Company-owned life insurance456,782  456,110  450,148 
    Other assets450,908  430,751  431,861 
    Total non-earning assets2,683,123  2,778,682  2,728,048 
    Total assets$23,744,451  $22,960,622  $20,741,141 
          
    Liabilities and Equity     
    Noninterest-bearing demand deposits$6,091,054  $5,633,672  $4,058,559 
    Interest-bearing:     
    Checking and NOW accounts4,933,770  4,877,046  4,105,006 
    Savings accounts3,631,145  3,395,747  2,853,305 
    Money market accounts2,075,852  1,908,118  1,746,798 
    Other time deposits1,042,903  1,103,313  1,469,185 
    Total core deposits17,774,724  16,917,896  14,232,853 
    Brokered deposits75,031  119,557  72,509 
    Total deposits17,849,755  17,037,453  14,305,362 
          
    Federal funds purchased and interbank borrowings922  1,166  560,770 
    Securities sold under agreements to repurchase395,242  431,166  318,067 
    Federal Home Loan Bank advances1,912,541  1,991,435  2,130,263 
    Other borrowings266,282  252,787  236,114 
    Total borrowed funds2,574,987  2,676,554  3,245,214 
    Operating lease liabilities84,665  86,598  95,830 
    Accrued expenses and other liabilities255,597  187,361  271,300 
    Total liabilities20,765,004  19,987,966  17,917,706 
    Common stock, surplus, and retained earnings2,887,538  2,824,885  2,685,278 
    Accumulated other comprehensive income (loss), net of tax91,909  147,771  138,157 
    Total shareholders' equity2,979,447  2,972,656  2,823,435 
    Total liabilities and shareholders' equity$23,744,451  $22,960,622  $20,741,141 
     


                 
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
                 
                 
      Three Months Ended Three Months Ended Three Months Ended
      March 31, 2021 December 31, 2020 March 31, 2020
      AverageIncome (1)/Yield/ AverageIncome (1)/Yield/ AverageIncome (1)/Yield/
    Earning Assets: BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate
    Money market and other interest-earning            
    investments $370,087  $88 0.10% $413,782  $126 0.12% $58,406  $349 2.41%
    Investments:            
    Treasury and government-sponsored agencies 1,155,525  4,885 1.69% 648,314  2,937 1.81% 583,971  3,697 2.53%
    Mortgage-backed securities 3,312,311  15,833 1.91% 3,291,436  16,137 1.96% 3,171,650  19,065 2.40%
    States and political subdivisions 1,478,143  12,200 3.30% 1,437,890  12,008 3.34% 1,273,156  11,409 3.58%
    Other securities 453,411  2,743 2.42% 462,836  2,629 2.27% 494,500  3,216 2.60%
    Total investments 6,399,390  35,661 2.23% 5,840,476  33,711 2.31% 5,523,277  37,387 2.71%
    Loans: (2)            
    Commercial 3,974,762  35,568 3.58% 4,132,831  46,468 4.40% 2,907,297  29,053 3.95%
    Commercial and agriculture real estate 5,980,774  55,746 3.73% 5,829,912  58,334 3.92% 5,188,597  62,439 4.76%
    Consumer:            
    Home equity 544,049  4,152 3.10% 550,548  4,380 3.17% 558,356  5,631 4.06%
    Other consumer loans 1,058,731  10,175 3.90% 1,099,504  11,276 4.08% 1,167,802  12,219 4.21%
    Subtotal commercial and consumer loans 11,558,316  105,641 3.71% 11,612,795  120,458 4.13% 9,822,052  109,342 4.48%
    Residential real estate loans 2,273,859  21,347 3.76% 2,314,938  22,471 3.88% 2,370,295  24,244 4.09%
                 
    Total loans 13,832,175  126,988 3.68% 13,927,733  142,929 4.04% 12,192,347  133,586 4.35%
                 
    Total earning assets $20,601,652  $162,737 3.16% $20,181,991  $176,766 3.46% $17,774,030  $171,322 3.84%
                 
    Less: Allowance for credit losses (133,869)    (137,539)    (83,244)   
                 
    Non-earning Assets:            
    Cash and due from banks $288,623     $341,154     $287,601    
    Other assets 2,486,604     2,479,253     2,388,092    
                 
    Total assets $23,243,010     $22,864,859     $20,366,479    
                 
    Interest-Bearing Liabilities:            
    Checking and NOW accounts $4,863,819  $612 0.05% $4,708,568  $629 0.05% $4,104,778  $2,860 0.28%
    Savings accounts 3,495,319  487 0.06% 3,329,494  487 0.06% 2,828,177  1,298 0.18%
    Money market accounts 1,987,348  423 0.09% 1,932,594  445 0.09% 1,784,169  2,507 0.57%
    Other time deposits 1,081,248  1,607 0.60% 1,158,715  2,189 0.75% 1,562,074  5,186 1.34%
    Total interest-bearing core deposits 11,427,734  3,129 0.11% 11,129,371  3,750 0.13% 10,279,198  11,851 0.46%
    Brokered deposits 157,780  30 0.08% 37,176  26 0.28% 84,099  447 2.14%
    Total interest-bearing deposits 11,585,514  3,159 0.11% 11,166,547  3,776 0.13% 10,363,297  12,298 0.48%
                 
    Federal funds purchased and interbank borrowings 1,144  — 0.00% 843  — 0.03% 392,857  1,240 1.27%
    Securities sold under agreements to repurchase 398,662  120 0.12% 438,272  125 0.11% 329,091  384 0.47%
    Federal Home Loan Bank advances 1,925,352  5,409 1.14% 2,089,519  5,953 1.13% 1,965,130  7,768 1.59%
    Other borrowings 263,010  2,429 3.69% 240,815  2,316 3.85% 240,276  2,538 4.23%
    Total borrowed funds 2,588,168  7,958 1.25% 2,769,449  8,394 1.21% 2,927,354  11,930 1.64%
                 
    Total interest-bearing liabilities $14,173,682  $11,117 0.32% $13,935,996  $12,170 0.35% $13,290,651  $24,228 0.73%
                 
    Noninterest-Bearing Liabilities and Shareholders' Equity            
    Demand deposits $5,756,277     $5,644,017     $3,964,493    
    Other liabilities 343,073     352,256     277,812    
    Shareholders' equity 2,969,978     2,932,590     2,833,523    
                 
    Total liabilities and shareholders' equity $23,243,010     $22,864,859     $20,366,479    
                 
    Net interest rate spread   2.84%   3.11%   3.11%
                 
    Net interest margin (FTE)   2.94%   3.26%   3.31%
                 
    FTE adjustment  $3,500    $3,517    $3,323  
                 
    (1) Interest income is reflected on a fully taxable equivalent basis (FTE).
    (2) Includes loans held for sale.
     


        
    Asset Quality (EOP) (unaudited)
    ($ in thousands)
        
     Three Months Ended
     March 31,December 31,March 31,
     202120202020
        
    Beginning allowance for credit losses$131,388  $131,388  $54,619  
    Impact of adopting ASC 326 on 01/01/2020—  —  41,347  
        
    Provision for credit losses(17,356) (1,100) 16,950  
        
    Gross charge-offs(1,570) (707) (8,445) 
    Gross recoveries1,575  1,807  1,909  
    Net (charge-offs) recoveries5  1,100  (6,536) 
        
    Ending allowance for credit losses$114,037  $131,388  $106,380  
        
    Net charge-offs (recoveries) / average loans (1)0.00 %(0.03)%0.21 %
        
    Average loans outstanding (1)$13,815,515  $13,910,145  $12,182,704  
        
    EOP loans outstanding (1)13,925,261  13,786,479  12,384,612  
        
    Allowance for credit losses / EOP loans (1)0.82 %0.95 %0.86 %
        
    Underperforming Assets:   
    Loans 90 Days and over (still accruing)$49  $167  $658  
        
    Non-performing loans:   
    Nonaccrual loans (2)142,138  147,339  126,987  
    TDRs still accruing15,226  17,749  17,040  
    Total non-performing loans157,364  165,088  144,027  
        
    Foreclosed properties751  1,324  2,163  
        
    Total underperforming assets$158,164  $166,579  $146,848  
        
    Classified and Criticized Assets:   
    Nonaccrual loans (2)142,138  147,339  126,987  
    Substandard accruing loans160,314  157,276  181,157  
    Loans 90 days and over (still accruing)49  167  658  
    Total classified loans - "problem loans"$302,501  $304,782  $308,802  
        
    Other classified assets3,791  3,706  2,616  
    Criticized loans - "special mention loans"246,365  287,192  238,011  
        
    Total classified and criticized assets$552,657  $595,680  $549,429  
        
    Non-performing loans / EOP loans (1)1.13 %1.20 %1.16 %
        
    Allowance to non-performing loans72 %80 %74 %
        
    Under-performing assets / EOP loans (1)1.14 %1.21 %1.19 %
        
    EOP total assets$23,744,451  $22,960,622  $20,741,141  
        
    Under-performing assets / EOP assets0.67 %0.73 %0.71 %
        
    EOP - End of period actual balances   
    (1) Excludes loans held for sale.
    (2) Includes non-accruing TDRs totaling $14.3 million at March 31, 2021, $14.9 million at December 31, 2020, and $11.8 million at March 31, 2020.
        


        
    Non-GAAP Measures (unaudited)
    ($ in thousands)
        
     Three Months Ended
     March 31,December 31,March 31,
     202120202020
    Actual End of Period Balances   
    GAAP shareholders' equity$2,979,447 $2,972,656 $2,823,435 
        
    Deduct:   
    Goodwill1,036,994 1,036,994 1,036,994 
    Intangibles42,939 46,014 56,329 
     1,079,933 1,083,008 1,093,323 
        
    Tangible shareholders' equity $1,899,514 $1,889,648 $1,730,112 
        
    Average Balances   
    GAAP shareholders' equity$2,969,978 $2,932,590 $2,833,523 
        
    Deduct:   
    Goodwill1,036,994 1,036,994 1,036,994 
    Intangibles44,409 47,536 58,127 
     1,081,403 1,084,530 1,095,121 
        
    Average tangible shareholders' equity $1,888,575 $1,848,060 $1,738,402 
        
    Actual End of Period Balances   
    GAAP assets$23,744,451 $22,960,622 $20,741,141 
        
    Add:   
    Trust overdrafts24 26 119 
        
    Deduct:   
    Goodwill1,036,994 1,036,994 1,036,994 
    Intangibles42,939 46,014 56,329 
     1,079,933 1,083,008 1,093,323 
        
    Tangible assets $22,664,542 $21,877,640 $19,647,937 
        
    Risk-weighted assets (2)$15,524,621 $15,369,076 $14,420,130 
        
    GAAP net income$86,818 $74,120 $22,640 
        
    Add:   
    Amortization of intangibles (net of tax)2,306 2,433 2,849 
        
    Tangible net income$89,124 $76,553 $25,489 
        
    Tangible Ratios    
    Return on tangible common equity18.77%16.20%5.89%
    Return on average tangible common equity18.88%16.57%5.86%
    Return on tangible assets1.57%1.40%0.52%
    Tangible common equity to tangible assets8.38%8.64%8.81%
    Tangible common equity to risk-weighted assets (2)12.24%12.30%12.00%
    Tangible common book value (1)11.47 11.43 10.48 
        
    Tangible common equity presentation includes other comprehensive income as is common in other company releases.
    (1) Tangible common shareholders' equity divided by common shares issued and outstanding at period-end.
        
    Tier 1 common equity (2)$1,865,220 $1,805,194 $1,643,249 
        
    Risk-weighted assets (2)15,524,621 15,369,076 14,420,130 
        
    Tier 1 common equity to risk-weighted assets (2)12.01%11.75%11.40%
        
    (2) March 31, 2021 figures are preliminary.   
        

    Media: Kathy A. Schoettlin (812) 465-7269
    Investors: Lynell J. Walton (812) 464-1366


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