EVANSVILLE, Ind., Oct. 21, 2019 (GLOBE NEWSWIRE) --
| Old National Bancorp (NASDAQ: ONB) reports 3Q19 net income of $69.8 million, diluted EPS of $0.41. Adjusted1 net income of $70.5 million, or $0.41 per diluted share. |
CEO COMMENTARY:
| “For the 2nd straight quarter, Old National combined record net income with record loan production, defense of our net interest margin, good fee income and excellent credit metrics, all of which allowed us to continue to generate positive operating leverage,” said CEO Jim Ryan. “While loan prepayments and lower line utilization impacted overall balance sheet growth, activity levels were robust. Our granular loan portfolio and low-risk profile again led to low credit costs, and Old National remains on a path to high-performance.” |
THIRD QUARTER HIGHLIGHTS2:
Net Income
- Net income of $69.8 million, an increase of 36% from third quarter of 2018
- Earnings per share of $0.41, an increase of 21% from third quarter of 2018
Net Interest Income/NIM
- Net interest income on a fully taxable equivalent basis was $156.3 million compared to $158.5 million
- Net interest margin on a fully taxable equivalent basis was 3.57% compared to 3.66%
Operating Performance
- Pre-provision net revenue1 (“PPNR”) was $87.6 million
- Adjusted PPNR1 was $89.7 million, up 26.5% over third quarter of 2018
- Noninterest expense was $122.6 million
- Adjusted noninterest expense1 was $120.1 million
- Efficiency ratio1 was 56.44%
- Adjusted efficiency ratio1 was 55.26%, a 341 basis point improvement from third quarter of 2018
Loans and Credit Quality
- End-of-period total loans3 were $12,075.9 million compared to $12,084.5 million
- Third-quarter total commercial production was a record $680 million; September 30 pipeline was a record $2.0 billion
- Provision for loan losses was $1.4 million
- Net charge-offs were $0.8 million, or 0.03% annualized, compared to net charge-offs of $0.3 million
- Non-performing loans were 1.31% of total loans compared to 1.34%
Return Profile & Capital
- Return on average common equity was 9.91%
- Return on average tangible common equity1 was 17.01%
- Adjusted return on average tangible common equity1 was 17.16%
- Repurchased 2.2 million shares of common stock during the quarter
Notable Items
- $1.3 million in merger and integration 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 third-quarter 2019 net income of $69.8 million, or $0.41 per diluted share.
Included in the third quarter were pre-tax charges of $1.3 million for merger and integration activity. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $70.5 million, or $0.41 per diluted share.
LOANS
Record high commercial loan production; paydowns continued to impact outstandings.
- Period-end total loans were $12,075.9 million at September 30, 2019, compared to $12,084.5 million at June 30, 2019.
- Commercial and industrial loans decreased $124.3 million to $2,950.6 million; commercial real estate loans increased $118.4 million to $5,112.1 million; consumer loans decreased $37.5 million to $1,718.3 million.
- Commercial loan production in the third quarter was $680 million; period-end pipeline totaled $2.0 billion.
- On average, total loans in the third quarter were $12,073.8 million, down from $12,091.0 million in the second quarter of 2019.
DEPOSITS
A low-cost core deposit franchise continues to be one of Old National’s strengths.
- Period-end total deposits were $14,448.4 million at September 30, 2019, an increase of $85.3 million from the second quarter of 2019.
- On average, total deposits in the third quarter were $14,330.5 million, compared to $14,369.5 million in the second quarter of 2019.
NET INTEREST INCOME AND MARGIN
Net interest income and margin lower with decline in interest collected on nonaccrual loans and mix shift partially offset by higher accretion and higher day count.
- Net interest income decreased to $153.1 million in the third quarter of 2019 from $155.2 million in the second quarter of 2019.
- The net interest margin on a fully taxable equivalent basis decreased 9 basis points to 3.57% compared to 3.66% in the second quarter of 2019.
- Accretion income was $13.4 million, or 31 basis points of net interest margin, in the third quarter of 2019 compared to $11.8 million, or 27 basis points of net interest margin, in the second quarter of 2019. In the third quarter of 2019, accretion income was 6.4% of adjusted total revenue.
- Interest collected on nonaccrual loans was $2.0 million, or 5 basis points of net interest margin, in the third quarter of 2019 compared to $5.7 million, or 13 basis points of net interest margin, in the second quarter of 2019.
- The cost of total deposits remained flat at 0.52% in the third quarter of 2019 while the cost of total interest-bearing deposits increased just 1 basis point to 0.71%.
CREDIT QUALITY AND CECL
Strong credit quality remains a hallmark of the Old National franchise.
- Asset quality remained strong with net charge-offs in the third quarter of $0.8 million, or 0.03% of total average loans, and 30-89 day delinquencies of 0.21%.
- Provision expense was $1.4 million in the third quarter compared to $1.0 million in the second quarter.
- Non-performing loans decreased as a percentage of total loans to 1.31%.
- In accordance with current accounting practices, the loans acquired from recent acquisitions were recorded at fair value with no allowance recorded at the acquisition date. As of September 30, 2019, the remaining discount on these acquired loans was $87.1 million.
- The allowance for loan losses was $56.9 million, or 0.47% of total loans at September 30, 2019.
- Estimated day one increase to the allowance for loan losses and unfunded commitment liability of approximately $35 million to $45 million upon adoption of CECL.
NONINTEREST INCOME
Noninterest income increased due to increases in mortgage banking revenue and capital markets fees.
- Total noninterest income for the third quarter of 2019 was $53.9 million, an increase of $2.7 million from the second quarter of 2019.
- Mortgage banking revenue increased $1.7 million and capital markets income increased $1.4 million when compared to the second quarter of 2019.
NONINTEREST EXPENSE
Third quarter results demonstrated continued discipline with respect to expense management, helping to drive positive operating leverage1.
- Noninterest expense for the third quarter of 2019 was $122.6 million and included $1.3 million in merger & integration charges and $1.2 million in tax credit amortization.
- Excluding these items, adjusted noninterest expense for the third quarter was $120.1 million, compared to the $124.3 million in adjusted noninterest expense in the second quarter of 2019.
- The third quarter efficiency ratio was 56.44%, while the adjusted efficiency ratio was 55.26%.
INCOME TAXES
- On a fully taxable-equivalent basis, income tax expense in the third quarter was $16.4 million, resulting in a 19.1% FTE tax rate.
- Income tax expense included $1.8 million in tax credit benefit.
CAPITAL
Strong quarterly earnings drove capital ratios higher.
- At the end of the third quarter, total risk-based capital was 13.0% and regulatory tier 1 capital was 12.0%.
- Tangible common equity to tangible assets was 8.95% at the end of the third quarter compared to 8.92% in the second quarter of 2019.
- The Company repurchased 2.2 million shares of common stock during the third quarter with a weighted average price of $16.80 per share, excluding commissions.
NON-GAAP RECONCILIATIONS
| ($ in millions, except EPS, shares in 000s) | 3Q19 | Adjustments4 | Adjusted 3Q19 | ||||||
| Total Revenues (FTE) | $ | 210.2 | $ | (0.4 | ) | $ | 209.8 | ||
| Less: Provision for Loan Losses | (1.4 | ) | - | (1.4 | ) | ||||
| Less: Noninterest Expenses | (122.6 | ) | 1.3 | (121.3 | ) | ||||
| Income before Income Taxes (FTE) | $ | 86.2 | $ | 0.9 | $ | 87.1 | |||
| Income Taxes | 16.4 | 0.2 | 16.6 | ||||||
| Net Income | $ | 69.8 | $ | 0.7 | $ | 70.5 | |||
| Average Shares Outstanding | 171,551 | - | 171,551 | ||||||
| Earnings Per Share - Diluted | $ | 0.41 | $ | - | $ | 0.41 | |||
4 Tax-effect calculations use the current statutory FTE tax rates (federal + state)
| ($ in millions) | 3Q19 | 2Q19 | ||||
| Net Interest Income | $ | 153.1 | $ | 155.2 | ||
| Add: FTE Adjustment | 3.2 | 3.3 | ||||
| Net Interest Income (FTE) | $ | 156.3 | $ | 158.5 | ||
| Average Earning Assets | $ | 17,510.5 | $ | 17,302.7 | ||
| Net Interest Margin (FTE) | 3.57 | % | 3.66 | % | ||
| ($ in millions) | 3Q19 | 2Q19 | ||||
| Net Interest Income | $ | 153.1 | $ | 155.2 | ||
| Add: FTE Adjustment | 3.2 | 3.3 | ||||
| Net Interest Income (FTE) | $ | 156.3 | $ | 158.5 | ||
| Add: Total Noninterest Income | 53.9 | 51.2 | ||||
| Less: Noninterest Expense | 122.6 | 128.1 | ||||
| Pre-Provision Net Revenue | $ | 87.6 | $ | 81.6 | ||
| Less: Debt Securities Gains/Losses | (0.4 | ) | (1.2 | ) | ||
| Add: Merger and Integration Charges | 1.3 | 3.2 | ||||
| Add: Amortization of Tax Credit Investments | 1.2 | 0.6 | ||||
| Adjusted Pre-Provision Net Revenue | $ | 89.7 | $ | 84.2 | ||
| ($ in millions) | 3Q19 | 2Q19 | 3Q18 | ||||||
| Noninterest Expense | $ | 122.6 | $ | 128.1 | $ | 119.4 | |||
| Less: Merger and Integration Charges | (1.3 | ) | (3.2 | ) | (1.7 | ) | |||
| Less: Branch Action Charges & Severance | - | - | (0.1 | ) | |||||
| Noninterest Expense less Charges | $ | 121.3 | $ | 124.9 | $ | 117.6 | |||
| Less: Amortization of Tax Credit Investments | (1.2 | ) | (0.6 | ) | (9.2 | ) | |||
| Adjusted Noninterest Expense | $ | 120.1 | $ | 124.3 | $ | 108.4 | |||
| Less: Intangible Amortization | (4.2 | ) | (4.3 | ) | (3.3 | ) | |||
| Adjusted Noninterest Expense Less Intangible Amortization | $ | 115.9 | $ | 120.0 | $ | 105.1 | |||
| Net Interest Income | $ | 153.1 | $ | 155.2 | $ | 130.8 | |||
| FTE Adjustment | 3.2 | 3.3 | 2.8 | ||||||
| Net Interest Income (FTE) | $ | 156.3 | $ | 158.5 | $ | 133.6 | |||
| Total Noninterest Income | 53.9 | 51.2 | 46.0 | ||||||
| Total Revenue (FTE) | $ | 210.2 | $ | 209.7 | $ | 179.6 | |||
| Less: Debt Securities Gains/Losses | (0.4 | ) | (1.2 | ) | (0.1 | ) | |||
| Less: Gain on Branch Actions | - | - | (0.2 | ) | |||||
| Adjusted Total Revenue (FTE) | $ | 209.8 | $ | 208.5 | $ | 179.3 | |||
| Efficiency Ratio | 56.44 | % | 59.35 | % | 64.71 | % | |||
| Adjusted Efficiency Ratio | 55.26 | % | 57.52 | % | 58.67 | % | |||
| Operating Leverage5 (basis points) | 1,440 | ||||||||
| Adjusted Operating Leverage6 (basis points) | 624 | ||||||||
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) | 3Q19 | 2Q19 | ||||
| Net Income | $ | 69.8 | $ | 63.0 | ||
| Add: Intangible Amortization (net of tax7) | 3.1 | 3.2 | ||||
| Tangible Net Income | $ | 72.9 | $ | 66.2 | ||
| Less: Securities Gains/Losses (net of tax7) | (0.3 | ) | (0.9 | ) | ||
| Add: Merger & Integration Charges (net of tax7) | 1.0 | 2.4 | ||||
| Adjusted Tangible Net Income | $ | 73.6 | $ | 67.7 | ||
| Average Total Shareholders’ Equity | $ | 2,817.5 | $ | 2,758.3 | ||
| Less: Average Goodwill | (1,036.3 | ) | (1,036.3 | ) | ||
| Less: Average Intangibles | (66.0 | ) | (70.3 | ) | ||
| Average Tangible Shareholders’ Equity | $ | 1,715.2 | $ | 1,651.7 | ||
| Return on Average Tangible Common Equity | 17.01 | % | 16.04 | % | ||
| Adjusted Return on Average Tangible Common Equity | 17.16 | % | 16.41 | % | ||
7 Tax-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 7:00 a.m. Central Time on Monday, October 21, 2019, to review third quarter 2019 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 10:00 a.m. Central Time on October 21 through November 4. To access the replay, dial 1-855-859-2056, Conference ID Code 1869785.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. Headquartered in Evansville with $20.4 billion in assets, it is a top 100 U.S. bank, the largest Indiana-based bank and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for eight consecutive years. For 185 years, Old National has been a community bank committed to building long-term, highly valued relationships with clients. With locations in Indiana, Kentucky, Michigan, Minnesota and Wisconsin, Old National provides retail and commercial banking services along with comprehensive wealth management, investment and capital markets services. For 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. 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: market, economic, operational, liquidity, credit and interest rate risks associated with Old National’s business; competition; 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; 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 new CECL standard; 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.
Media: Kathy A. Schoettlin (812) 465-7269
Investors: Lynell J. Walton (812) 464-1366
| Financial Highlights (unaudited) | |||||||||||||||||
| ($ and shares in thousands, except per share data) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Income Statement | |||||||||||||||||
| Net interest income | $ | 153,096 | $ | 155,230 | $ | 130,842 | $ | 455,374 | $ | 391,377 | |||||||
| Provision for loan losses | 1,437 | 1,003 | 750 | 3,483 | 3,576 | ||||||||||||
| Noninterest income | 53,961 | 51,214 | 45,957 | 151,591 | 137,151 | ||||||||||||
| Noninterest expense | 122,585 | 128,118 | 119,376 | 373,744 | 366,993 | ||||||||||||
| Net income | 69,781 | 62,964 | 51,348 | 189,021 | 143,332 | ||||||||||||
| Per Common Share Data | |||||||||||||||||
| Net income (diluted) | $ | 0.41 | $ | 0.36 | $ | 0.34 | $ | 1.09 | $ | 0.94 | |||||||
| Average diluted shares outstanding | 171,551 | 173,675 | 152,784 | 173,527 | 152,616 | ||||||||||||
| Book value | 16.66 | 16.28 | 14.58 | 16.66 | 14.58 | ||||||||||||
| Stock price | 17.20 | 16.59 | 19.30 | 17.20 | 19.30 | ||||||||||||
| Dividend payout ratio | 32 | % | 35 | % | 38 | % | 35 | % | 41 | % | |||||||
| Tangible common book value (1) | 10.18 | 9.86 | 8.86 | 10.18 | 8.86 | ||||||||||||
| Performance Ratios | |||||||||||||||||
| Return on average assets | 1.39 | % | 1.26 | % | 1.18 | % | 1.26 | % | 1.10 | % | |||||||
| Return on average common equity | 9.91 | % | 9.13 | % | 9.28 | % | 9.12 | % | 8.74 | % | |||||||
| Return on average tangible common equity (1) | 17.01 | % | 16.04 | % | 16.10 | % | 16.00 | % | 15.40 | % | |||||||
| Net interest margin (FTE) | 3.57 | % | 3.66 | % | 3.51 | % | 3.58 | % | 3.51 | % | |||||||
| Efficiency ratio (2) | 56.44 | % | 59.35 | % | 64.71 | % | 58.65 | % | 66.74 | % | |||||||
| Net charge-offs (recoveries) to average loans | 0.03 | % | 0.01 | % | 0.06 | % | 0.02 | % | 0.01 | % | |||||||
| Allowance for loan losses to ending loans | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | |||||||
| Non-performing loans to ending loans | 1.31 | % | 1.34 | % | 1.47 | % | 1.31 | % | 1.47 | % | |||||||
| Balance Sheet | |||||||||||||||||
| Total loans | $ | 12,017,648 | $ | 12,046,578 | $ | 11,292,659 | $ | 12,017,648 | $ | 11,292,659 | |||||||
| Total assets | 20,438,788 | 20,145,285 | 17,567,759 | 20,438,788 | 17,567,759 | ||||||||||||
| Total deposits | 14,448,352 | 14,363,101 | 12,598,200 | 14,448,352 | 12,598,200 | ||||||||||||
| Total borrowed funds | 2,831,863 | 2,726,481 | 2,576,039 | 2,831,863 | 2,576,039 | ||||||||||||
| Total shareholders' equity | 2,832,530 | 2,803,139 | 2,220,680 | 2,832,530 | 2,220,680 | ||||||||||||
| Capital Ratios (1) | |||||||||||||||||
| Risk-based capital ratios (EOP): | |||||||||||||||||
| Tier 1 common equity | 12.0 | % | 11.9 | % | 11.1 | % | 12.0 | % | 11.1 | % | |||||||
| Tier 1 | 12.0 | % | 11.9 | % | 11.1 | % | 12.0 | % | 11.1 | % | |||||||
| Total | 13.0 | % | 12.8 | % | 12.1 | % | 13.0 | % | 12.1 | % | |||||||
| Leverage ratio (to average assets) | 8.8 | % | 8.8 | % | 8.6 | % | 8.8 | % | 8.6 | % | |||||||
| Total equity to assets (averages) | 13.98 | % | 13.82 | % | 12.69 | % | 13.84 | % | 12.55 | % | |||||||
| Tangible common equity to tangible assets | 8.95 | % | 8.92 | % | 8.08 | % | 8.95 | % | 8.08 | % | |||||||
| Nonfinancial Data | |||||||||||||||||
| Full-time equivalent employees | 2,778 | 2,829 | 2,554 | 2,778 | 2,554 | ||||||||||||
| Number of branches | 192 | 192 | 182 | 192 | 182 | ||||||||||||
| (1) See "Non-GAAP Measures" table. | |||||||||||||||||
| (2) 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 | Nine Months Ended | ||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||
| Interest income | $ | 185,853 | $ | 189,063 | $ | 155,369 | $ | 553,834 | $ | 456,811 | |||||
| Less: interest expense | 32,757 | 33,833 | 24,527 | 98,460 | 65,434 | ||||||||||
| Net interest income | 153,096 | 155,230 | 130,842 | 455,374 | 391,377 | ||||||||||
| Provision for loan losses | 1,437 | 1,003 | 750 | 3,483 | 3,576 | ||||||||||
| Net interest income after provision for loan losses | 151,659 | 154,227 | 130,092 | 451,891 | 387,801 | ||||||||||
| Wealth management fees | 9,160 | 9,909 | 9,022 | 27,604 | 27,794 | ||||||||||
| Service charges on deposit accounts | 11,860 | 11,515 | 11,028 | 34,201 | 32,552 | ||||||||||
| Debit card and ATM fees | 5,370 | 5,419 | 4,706 | 16,292 | 14,651 | ||||||||||
| Mortgage banking revenue | 8,850 | 7,135 | 4,348 | 20,996 | 13,729 | ||||||||||
| Investment product fees | 5,244 | 5,591 | 5,073 | 16,106 | 15,170 | ||||||||||
| Capital markets income | 4,560 | 3,150 | 2,700 | 10,227 | 4,094 | ||||||||||
| Company-owned life insurance | 2,703 | 2,711 | 2,958 | 8,602 | 7,993 | ||||||||||
| Other income | 5,900 | 4,716 | 5,986 | 16,318 | 18,702 | ||||||||||
| Gains (losses) on sales of debt securities | 424 | 1,165 | 135 | 1,486 | 2,417 | ||||||||||
| Gains (losses) on derivatives | (110 | ) | (97 | ) | 1 | (241 | ) | 49 | |||||||
| Total noninterest income | 53,961 | 51,214 | 45,957 | 151,591 | 137,151 | ||||||||||
| Salaries and employee benefits | 71,729 | 71,566 | 63,158 | 214,478 | 193,929 | ||||||||||
| Occupancy | 11,934 | 14,559 | 12,578 | 41,071 | 38,731 | ||||||||||
| Equipment | 3,954 | 4,517 | 3,652 | 12,945 | 10,945 | ||||||||||
| Marketing | 4,105 | 4,439 | 3,406 | 12,267 | 11,065 | ||||||||||
| Data processing | 8,961 | 10,207 | 8,628 | 28,509 | 26,752 | ||||||||||
| Communication | 2,349 | 2,849 | 2,473 | 8,252 | 8,309 | ||||||||||
| Professional fees | 5,037 | 4,921 | 3,235 | 12,868 | 8,888 | ||||||||||
| Loan expenses | 1,811 | 1,657 | 1,564 | 5,380 | 5,151 | ||||||||||
| FDIC assessment | 960 | 1,454 | 2,722 | 4,501 | 8,528 | ||||||||||
| Amortization of intangibles | 4,168 | 4,325 | 3,283 | 12,965 | 10,308 | ||||||||||
| Amortization of tax credit investments | 1,211 | 568 | 9,233 | 2,039 | 21,807 | ||||||||||
| Other expense | 6,366 | 7,056 | 5,444 | 18,469 | 22,580 | ||||||||||
| Total noninterest expense | 122,585 | 128,118 | 119,376 | 373,744 | 366,993 | ||||||||||
| Income before income taxes | 83,035 | 77,323 | 56,673 | 229,738 | 157,959 | ||||||||||
| Income tax expense | 13,254 | 14,359 | 5,325 | 40,717 | 14,627 | ||||||||||
| Net income | $ | 69,781 | $ | 62,964 | $ | 51,348 | $ | 189,021 | $ | 143,332 | |||||
| Diluted Earnings Per Share | |||||||||||||||
| Net income | $ | 0.41 | $ | 0.36 | $ | 0.34 | $ | 1.09 | $ | 0.94 | |||||
| Average Common Shares Outstanding | |||||||||||||||
| Basic | 170,746 | 172,985 | 151,930 | 172,807 | 151,844 | ||||||||||
| Diluted | 171,551 | 173,675 | 152,784 | 173,527 | 152,616 | ||||||||||
| Common shares outstanding at end of period | 170,031 | 172,231 | 152,352 | 170,031 | 152,352 | ||||||||||
| Balance Sheet (unaudited) | ||||||||||||
| ($ in thousands) | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| Assets | ||||||||||||
| Federal Reserve Bank account | $ | 80,018 | $ | 40,945 | $ | 65,878 | ||||||
| Money market investments | 19,410 | 20,210 | 5,859 | |||||||||
| Investments: | ||||||||||||
| Treasury and government-sponsored agencies | 524,919 | 725,327 | 690,709 | |||||||||
| Mortgage-backed securities | 3,248,367 | 2,900,235 | 1,640,254 | |||||||||
| States and political subdivisions | 1,231,248 | 1,186,311 | 1,099,535 | |||||||||
| Other securities | 490,389 | 489,855 | 496,199 | |||||||||
| Total investments | 5,494,923 | 5,301,728 | 3,926,697 | |||||||||
| Loans held for sale, at fair value | 58,285 | 37,904 | 21,384 | |||||||||
| Loans: | ||||||||||||
| Commercial | 2,950,559 | 3,074,849 | 2,949,277 | |||||||||
| Commercial and agriculture real estate | 5,112,123 | 4,993,693 | 4,481,554 | |||||||||
| Consumer: | ||||||||||||
| Home equity | 555,905 | 553,991 | 498,325 | |||||||||
| Other consumer loans | 1,162,438 | 1,201,847 | 1,197,300 | |||||||||
| Subtotal of commercial and consumer loans | 9,781,025 | 9,824,380 | 9,126,456 | |||||||||
| Residential real estate | 2,236,623 | 2,222,198 | 2,166,203 | |||||||||
| Total loans | 12,017,648 | 12,046,578 | 11,292,659 | |||||||||
| Total earning assets | 17,670,284 | 17,447,365 | 15,312,477 | |||||||||
| Allowance for loan losses | (56,910 | ) | (56,292 | ) | (52,713 | ) | ||||||
| Non-earning Assets: | ||||||||||||
| Cash and due from banks | 320,822 | 239,831 | 215,024 | |||||||||
| Premises and equipment, net | 492,065 | 493,481 | 450,253 | |||||||||
| Operating lease right-of-use assets | 102,976 | 106,222 | - | |||||||||
| Goodwill and other intangible assets | 1,101,045 | 1,104,478 | 870,938 | |||||||||
| Company-owned life insurance | 447,110 | 445,749 | 405,245 | |||||||||
| Net deferred tax assets | 26,523 | 36,002 | 94,667 | |||||||||
| Loan servicing rights | 24,623 | 24,332 | 24,336 | |||||||||
| Other assets | 310,250 | 304,117 | 247,532 | |||||||||
| Total non-earning assets | 2,825,414 | 2,754,212 | 2,307,995 | |||||||||
| Total assets | $ | 20,438,788 | $ | 20,145,285 | $ | 17,567,759 | ||||||
| Liabilities and Equity | ||||||||||||
| Noninterest-bearing demand deposits | $ | 3,996,264 | $ | 3,771,888 | $ | 3,588,370 | ||||||
| Interest-bearing: | ||||||||||||
| Checking and NOW accounts | 3,936,318 | 3,950,161 | 3,011,544 | |||||||||
| Savings accounts | 2,863,718 | 2,877,673 | 2,920,712 | |||||||||
| Money market accounts | 1,821,989 | 1,819,716 | 1,185,439 | |||||||||
| Other time deposits | 1,704,238 | 1,756,814 | 1,667,055 | |||||||||
| Total core deposits | 14,322,527 | 14,176,252 | 12,373,120 | |||||||||
| Brokered CD's | 125,825 | 186,849 | 225,080 | |||||||||
| Total deposits | 14,448,352 | 14,363,101 | 12,598,200 | |||||||||
| Federal funds purchased and interbank borrowings | 240,589 | 410,036 | 450,031 | |||||||||
| Securities sold under agreements to repurchase | 337,551 | 334,540 | 319,831 | |||||||||
| Federal Home Loan Bank advances | 2,001,960 | 1,730,065 | 1,554,515 | |||||||||
| Other borrowings | 251,763 | 251,840 | 251,662 | |||||||||
| Total borrowed funds | 2,831,863 | 2,726,481 | 2,576,039 | |||||||||
| Operating lease liabilities | 107,272 | 110,596 | - | |||||||||
| Accrued expenses and other liabilities | 218,771 | 141,968 | 172,840 | |||||||||
| Total liabilities | 17,606,258 | 17,342,146 | 15,347,079 | |||||||||
| Common stock, surplus, and retained earnings | 2,774,016 | 2,761,102 | 2,300,610 | |||||||||
| Accumulated other comprehensive income (loss), net of tax | 58,514 | 42,037 | (79,930 | ) | ||||||||
| Total shareholders' equity | 2,832,530 | 2,803,139 | 2,220,680 | |||||||||
| Total liabilities and shareholders' equity | $ | 20,438,788 | $ | 20,145,285 | $ | 17,567,759 | ||||||
| Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||
| September 30, 2019 | June 30, 2019 | September 30, 2018 | ||||||||||||||||||||||
| Average | Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | ||||||||||||||||
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||
| Money market and other interest-earning investments | $ | 63,142 | $ | 528 | 3.32 | % | $ | 58,321 | $ | 334 | 2.29 | % | $ | 35,928 | $ | 140 | 1.54 | % | ||||||
| Investments: | ||||||||||||||||||||||||
| Treasury and government-sponsored agencies | 682,940 | 4,341 | 2.54 | % | 695,775 | 4,301 | 2.47 | % | 685,919 | 3,748 | 2.19 | % | ||||||||||||
| Mortgage-backed securities | 3,019,322 | 18,589 | 2.46 | % | 2,767,791 | 18,799 | 2.72 | % | 1,595,630 | 9,381 | 2.35 | % | ||||||||||||
| States and political subdivisions | 1,172,017 | 10,896 | 3.72 | % | 1,193,176 | 11,235 | 3.77 | % | 1,103,347 | 10,110 | 3.67 | % | ||||||||||||
| Other securities | 499,308 | 4,049 | 3.24 | % | 496,631 | 4,063 | 3.27 | % | 500,837 | 4,116 | 3.29 | % | ||||||||||||
| Total investments | 5,373,587 | 37,875 | 2.82 | % | 5,153,373 | 38,398 | 2.98 | % | 3,885,733 | 27,355 | 2.82 | % | ||||||||||||
| Loans: (2) | ||||||||||||||||||||||||
| Commercial | 3,018,638 | 35,428 | 4.59 | % | 3,063,590 | 37,828 | 4.88 | % | 2,928,744 | 33,381 | 4.46 | % | ||||||||||||
| Commercial and agriculture real estate | 5,037,909 | 71,604 | 5.56 | % | 5,019,859 | 72,214 | 5.69 | % | 4,465,105 | 57,377 | 5.03 | % | ||||||||||||
| Consumer: | ||||||||||||||||||||||||
| Home equity | 557,607 | 7,102 | 5.05 | % | 558,223 | 7,390 | 5.31 | % | 495,161 | 6,070 | 4.86 | % | ||||||||||||
| Other consumer loans | 1,175,900 | 12,226 | 4.13 | % | 1,201,752 | 12,408 | 4.14 | % | 1,215,583 | 11,263 | 3.68 | % | ||||||||||||
| Subtotal commercial and consumer loans | 9,790,054 | 126,360 | 5.12 | % | 9,843,424 | 129,840 | 5.29 | % | 9,104,593 | 108,091 | 4.71 | % | ||||||||||||
| Residential real estate loans | 2,283,704 | 24,261 | 4.25 | % | 2,247,570 | 23,780 | 4.23 | % | 2,187,130 | 22,536 | 4.12 | % | ||||||||||||
| Total loans | 12,073,758 | 150,621 | 4.91 | % | 12,090,994 | 153,620 | 5.05 | % | 11,291,723 | 130,627 | 4.56 | % | ||||||||||||
| Total earning assets | $ | 17,510,487 | $ | 189,024 | 4.27 | % | $ | 17,302,688 | $ | 192,352 | 4.43 | % | $ | 15,213,384 | $ | 158,122 | 4.11 | % | ||||||
| Less: Allowance for loan losses | (56,894 | ) | (56,632 | ) | (53,734 | ) | ||||||||||||||||||
| Non-earning Assets: | ||||||||||||||||||||||||
| Cash and due from banks | $ | 264,145 | $ | 234,337 | $ | 205,446 | ||||||||||||||||||
| Other assets | 2,429,466 | 2,473,255 | 2,068,469 | |||||||||||||||||||||
| Total assets | $ | 20,147,204 | $ | 19,953,648 | $ | 17,433,565 | ||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||
| Checking and NOW accounts | $ | 3,895,654 | $ | 4,448 | 0.45 | % | $ | 3,895,881 | $ | 4,196 | 0.43 | % | $ | 3,026,289 | $ | 1,180 | 0.15 | % | ||||||
| Savings accounts | 2,855,401 | 2,128 | 0.30 | % | 2,879,704 | 2,145 | 0.30 | % | 2,974,147 | 2,119 | 0.28 | % | ||||||||||||
| Money market accounts | 1,822,698 | 4,017 | 0.87 | % | 1,789,777 | 3,729 | 0.84 | % | 1,153,906 | 1,254 | 0.43 | % | ||||||||||||
| Other time deposits | 1,733,492 | 7,016 | 1.61 | % | 1,779,770 | 7,181 | 1.62 | % | 1,669,039 | 5,780 | 1.37 | % | ||||||||||||
| Total interest-bearing deposits | 10,307,245 | 17,609 | 0.68 | % | 10,345,132 | 17,251 | 0.67 | % | 8,823,381 | 10,333 | 0.46 | % | ||||||||||||
| Brokered CD's | 181,425 | 1,098 | 2.40 | % | 212,198 | 1,268 | 2.40 | % | 178,283 | 856 | 1.90 | % | ||||||||||||
| Total interest-bearing deposits and CD's | 10,488,670 | 18,707 | 0.71 | % | 10,557,330 | 18,519 | 0.70 | % | 9,001,664 | 11,189 | 0.49 | % | ||||||||||||
| Federal funds purchased and interbank borrowings | 254,971 | 1,484 | 2.31 | % | 300,810 | 1,817 | 2.42 | % | 238,514 | 1,191 | 1.98 | % | ||||||||||||
| Securities sold under agreements to repurchase | 340,158 | 715 | 0.83 | % | 331,695 | 671 | 0.81 | % | 352,998 | 535 | 0.60 | % | ||||||||||||
| Federal Home Loan Bank advances | 1,889,407 | 9,123 | 1.92 | % | 1,695,681 | 10,039 | 2.37 | % | 1,624,661 | 8,880 | 2.17 | % | ||||||||||||
| Other borrowings | 251,817 | 2,728 | 4.33 | % | 251,577 | 2,787 | 4.43 | % | 250,255 | 2,732 | 4.37 | % | ||||||||||||
| Total borrowed funds | 2,736,353 | 14,050 | 2.04 | % | 2,579,763 | 15,314 | 2.38 | % | 2,466,428 | 13,338 | 2.15 | % | ||||||||||||
| Total interest-bearing liabilities | $ | 13,225,023 | $ | 32,757 | 0.98 | % | $ | 13,137,093 | $ | 33,833 | 1.03 | % | $ | 11,468,092 | $ | 24,527 | 0.85 | % | ||||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | ||||||||||||||||||||||||
| Demand deposits | $ | 3,841,867 | $ | 3,812,175 | $ | 3,596,159 | ||||||||||||||||||
| Other liabilities | 262,862 | 246,134 | 156,614 | |||||||||||||||||||||
| Shareholders' equity | 2,817,452 | 2,758,246 | 2,212,700 | |||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 20,147,204 | $ | 19,953,648 | $ | 17,433,565 | ||||||||||||||||||
| Net interest rate spread | 3.29 | % | 3.40 | % | 3.26 | % | ||||||||||||||||||
| Net interest margin (FTE) | 3.57 | % | 3.66 | % | 3.51 | % | ||||||||||||||||||
| FTE adjustment | $ | 3,171 | $ | 3,289 | $ | 2,753 | ||||||||||||||||||
| (1) Interest income is reflected on a fully taxable equivalent basis (FTE). | ||||||||||||||||||||||||
| (2) Includes loans held for sale. | ||||||||||||||||||||||||
| Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Nine Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2019 | September 30, 2018 | |||||||||||||||
| Average | Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | |||||||||||
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
| Money market and other interest-earning investments | $ | 60,071 | $ | 1,140 | 2.54 | % | $ | 51,284 | $ | 347 | 0.90 | % | ||||
| Investments: | ||||||||||||||||
| Treasury and government-sponsored agencies | 694,628 | 12,544 | 2.41 | % | 666,015 | 10,559 | 2.11 | % | ||||||||
| Mortgage-backed securities | 2,763,406 | 54,991 | 2.65 | % | 1,605,324 | 27,805 | 2.31 | % | ||||||||
| States and political subdivisions | 1,198,962 | 33,584 | 3.73 | % | 1,141,827 | 31,179 | 3.64 | % | ||||||||
| Other securities | 497,854 | 12,553 | 3.36 | % | 489,465 | 11,694 | 3.19 | % | ||||||||
| Total investments | 5,154,850 | 113,672 | 2.94 | % | 3,902,631 | 81,237 | 2.78 | % | ||||||||
| Loans: (2) | ||||||||||||||||
| Commercial | 3,067,830 | 109,290 | 4.70 | % | 2,854,691 | 94,114 | 4.35 | % | ||||||||
| Commercial and agriculture real estate | 5,015,973 | 208,894 | 5.49 | % | 4,436,576 | 170,414 | 5.07 | % | ||||||||
| Consumer: | ||||||||||||||||
| Home equity | 567,953 | 22,089 | 5.20 | % | 496,365 | 17,834 | 4.80 | % | ||||||||
| Other consumer loans | 1,189,988 | 36,436 | 4.09 | % | 1,276,727 | 34,994 | 3.66 | % | ||||||||
| Subtotal commercial and consumer loans | 9,841,744 | 376,709 | 5.12 | % | 9,064,359 | 317,356 | 4.68 | % | ||||||||
| Residential real estate loans | 2,263,595 | 71,972 | 4.24 | % | 2,180,416 | 66,216 | 4.05 | % | ||||||||
| Total loans | 12,105,339 | 448,681 | 4.91 | % | 11,244,775 | 383,572 | 4.52 | % | ||||||||
| Total earning assets | $ | 17,320,260 | $ | 563,493 | 4.32 | % | $ | 15,198,690 | $ | 465,156 | 4.06 | % | ||||
| Less: Allowance for loan losses | (56,442 | ) | (52,070 | ) | ||||||||||||
| Non-earning Assets: | ||||||||||||||||
| Cash and due from banks | $ | 242,938 | $ | 203,421 | ||||||||||||
| Other assets | 2,464,192 | 2,081,615 | ||||||||||||||
| Total assets | $ | 19,970,948 | $ | 17,431,656 | ||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||
| Checking and NOW accounts | $ | 3,829,213 | $ | 11,786 | 0.41 | % | $ | 3,063,636 | $ | 2,969 | 0.13 | % | ||||
| Savings accounts | 2,889,977 | 6,556 | 0.30 | % | 3,020,955 | 5,239 | 0.23 | % | ||||||||
| Money market accounts | 1,772,150 | 10,572 | 0.80 | % | 1,138,679 | 2,502 | 0.29 | % | ||||||||
| Other time deposits | 1,784,200 | 21,299 | 1.60 | % | 1,615,896 | 14,493 | 1.20 | % | ||||||||
| Total interest-bearing deposits | 10,275,540 | 50,213 | 0.65 | % | 8,839,166 | 25,203 | 0.38 | % | ||||||||
| Brokered CD's | 194,985 | 3,457 | 2.37 | % | 182,720 | 2,380 | 1.74 | % | ||||||||
| Total interest-bearing deposits and CD's | 10,470,525 | 53,670 | 0.69 | % | 9,021,886 | 27,583 | 0.41 | % | ||||||||
| Federal funds purchased and interbank borrowings | 290,699 | 5,219 | 2.40 | % | 213,362 | 2,855 | 1.79 | % | ||||||||
| Securities sold under agreements to repurchase | 344,294 | 2,048 | 0.80 | % | 342,797 | 1,328 | 0.52 | % | ||||||||
| Federal Home Loan Bank advances | 1,753,283 | 29,093 | 2.22 | % | 1,671,211 | 25,484 | 2.04 | % | ||||||||
| Other borrowings | 251,070 | 8,430 | 4.48 | % | 249,464 | 8,184 | 4.37 | % | ||||||||
| Total borrowed funds | 2,639,346 | 44,790 | 2.27 | % | 2,476,834 | 37,851 | 2.04 | % | ||||||||
| Total interest-bearing liabilities | $ | 13,109,871 | $ | 98,460 | 1.00 | % | $ | 11,498,720 | $ | 65,434 | 0.76 | % | ||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | ||||||||||||||||
| Demand deposits | $ | 3,833,605 | $ | 3,587,453 | ||||||||||||
| Other liabilities | 263,799 | 157,859 | ||||||||||||||
| Shareholders' equity | 2,763,673 | 2,187,624 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 19,970,948 | $ | 17,431,656 | ||||||||||||
| Net interest rate spread | 3.32 | % | 3.30 | % | ||||||||||||
| Net interest margin (FTE) | 3.58 | % | 3.51 | % | ||||||||||||
| FTE adjustment | $ | 9,659 | $ | 8,345 | ||||||||||||
| (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 | Nine Months Ended | ||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Beginning allowance for loan losses | $ | 56,292 | $ | 55,559 | $ | 53,660 | $ | 55,461 | $ | 50,381 | |||||||
| Provision for loan losses | 1,437 | 1,003 | 750 | 3,483 | 3,576 | ||||||||||||
| Gross charge-offs | (2,716 | ) | (2,876 | ) | (4,261 | ) | (8,485 | ) | (10,000 | ) | |||||||
| Gross recoveries | 1,897 | 2,606 | 2,564 | 6,451 | 8,756 | ||||||||||||
| Net (charge-offs) recoveries | (819 | ) | (270 | ) | (1,697 | ) | (2,034 | ) | (1,244 | ) | |||||||
| Ending allowance for loan losses | $ | 56,910 | $ | 56,292 | $ | 52,713 | $ | 56,910 | $ | 52,713 | |||||||
| Net charge-offs (recoveries) / average loans (1) | 0.03 | % | 0.01 | % | 0.06 | % | 0.02 | % | 0.01 | % | |||||||
| Average loans outstanding (1) | $ | 12,061,705 | $ | 12,083,609 | $ | 11,284,531 | $ | 12,097,310 | $ | 11,239,549 | |||||||
| EOP loans outstanding (1) | 12,017,648 | $ | 12,046,578 | $ | 11,292,659 | $ | 12,017,648 | $ | 11,292,659 | ||||||||
| Allowance for loan losses / EOP loans (1) | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | |||||||
| Underperforming Assets: | |||||||||||||||||
| Loans 90 Days and over (still accruing) | $ | 703 | $ | 423 | $ | 980 | $ | 703 | $ | 980 | |||||||
| Non-performing loans: | |||||||||||||||||
| Nonaccrual loans (2) | 138,498 | 142,421 | 148,816 | 138,498 | 148,816 | ||||||||||||
| Renegotiated loans | 18,884 | 19,031 | 17,547 | 18,884 | 17,547 | ||||||||||||
| Total non-performing loans | 157,382 | 161,452 | 166,363 | 157,382 | 166,363 | ||||||||||||
| Foreclosed properties | 2,941 | 2,819 | 3,563 | 2,941 | 3,563 | ||||||||||||
| Total underperforming assets | $ | 161,026 | $ | 164,694 | $ | 170,906 | $ | 161,026 | $ | 170,906 | |||||||
| Classified and Criticized Assets: | |||||||||||||||||
| Nonaccrual loans (2) | 138,498 | 142,421 | 148,816 | 138,498 | 148,816 | ||||||||||||
| Substandard accruing loans | 145,987 | 174,728 | 107,257 | 145,987 | 107,257 | ||||||||||||
| Loans 90 days and over (still accruing) | 703 | 423 | 980 | 703 | 980 | ||||||||||||
| Total classified loans - "problem loans" | $ | 285,188 | $ | 317,572 | $ | 257,053 | $ | 285,188 | $ | 257,053 | |||||||
| Other classified assets | 2,556 | 2,550 | 3,070 | 2,556 | 3,070 | ||||||||||||
| Criticized loans - "special mention loans" | 233,519 | 220,455 | 181,165 | 233,519 | 181,165 | ||||||||||||
| Total classified and criticized assets | $ | 521,263 | $ | 540,577 | $ | 441,288 | $ | 521,263 | $ | 441,288 | |||||||
| Non-performing loans / EOP loans (1) | 1.31 | % | 1.34 | % | 1.47 | % | 1.31 | % | 1.47 | % | |||||||
| Allowance to non-performing loans (3) | 36 | % | 35 | % | 32 | % | 36 | % | 32 | % | |||||||
| Under-performing assets / EOP loans (1) | 1.34 | % | 1.37 | % | 1.51 | % | 1.34 | % | 1.51 | % | |||||||
| EOP total assets | $ | 20,438,788 | $ | 20,145,285 | $ | 17,567,759 | $ | 20,438,788 | $ | 17,567,759 | |||||||
| Under-performing assets / EOP assets | 0.79 | % | 0.82 | % | 0.97 | % | 0.79 | % | 0.97 | % | |||||||
| EOP - End of period actual balances | |||||||||||||||||
| (1) Excludes loans held for sale. | |||||||||||||||||
| (2) Includes renegotiated loans totaling $21.8 million at September 30, 2019, $24.7 million at June 30, 2019, and $29.9 million at September 30, 2018. | |||||||||||||||||
| (3) Includes acquired loans that were recorded at fair value in accordance with ASC 805 at the date of acquisition. As such, the credit risk was incorporated in the fair value recorded and no allowance for loan losses was recorded on the acquisition date. | |||||||||||||||||
| Non-GAAP Measures (unaudited) | |||||||||||||||||
| ($ in thousands) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Actual End of Period Balances | |||||||||||||||||
| GAAP shareholders' equity | $ | 2,832,530 | $ | 2,803,139 | $ | 2,220,680 | $ | 2,832,530 | $ | 2,220,680 | |||||||
| Deduct: | |||||||||||||||||
| Goodwill | 1,036,994 | 1,036,258 | 828,804 | 1,036,994 | 828,804 | ||||||||||||
| Intangibles | 64,051 | 68,220 | 42,134 | 64,051 | 42,134 | ||||||||||||
| 1,101,045 | 1,104,478 | 870,938 | 1,101,045 | 870,938 | |||||||||||||
| Tangible shareholders' equity | $ | 1,731,485 | $ | 1,698,661 | $ | 1,349,742 | $ | 1,731,485 | $ | 1,349,742 | |||||||
| Average Balances | |||||||||||||||||
| GAAP shareholders' equity | $ | 2,817,452 | $ | 2,758,246 | $ | 2,212,700 | $ | 2,763,673 | $ | 2,187,624 | |||||||
| Deduct: | |||||||||||||||||
| Goodwill | 1,036,306 | 1,036,258 | 828,804 | 1,036,274 | 828,585 | ||||||||||||
| Intangibles | 66,047 | 70,282 | 43,685 | 70,361 | 47,249 | ||||||||||||
| 1,102,353 | 1,106,540 | 872,489 | 1,106,635 | 875,834 | |||||||||||||
| Average tangible shareholders' equity | $ | 1,715,099 | $ | 1,651,706 | $ | 1,340,211 | $ | 1,657,038 | $ | 1,311,790 | |||||||
| Actual End of Period Balances | |||||||||||||||||
| GAAP assets | $ | 20,438,788 | $ | 20,145,285 | $ | 17,567,759 | $ | 20,438,788 | $ | 17,567,759 | |||||||
| Add: | |||||||||||||||||
| Trust overdrafts | 24 | 29 | 118 | 24 | 118 | ||||||||||||
| Deduct: | |||||||||||||||||
| Goodwill | 1,036,994 | 1,036,258 | 828,804 | 1,036,994 | 828,804 | ||||||||||||
| Intangibles | 64,051 | 68,220 | 42,134 | 64,051 | 42,134 | ||||||||||||
| 1,101,045 | 1,104,478 | 870,938 | 1,101,045 | 870,938 | |||||||||||||
| Tangible assets | $ | 19,337,767 | $ | 19,040,836 | $ | 16,696,939 | $ | 19,337,767 | $ | 16,696,939 | |||||||
| Risk-weighted assets | $ | 13,975,295 | $ | 13,996,770 | $ | 12,715,665 | $ | 13,975,295 | $ | 12,715,665 | |||||||
| GAAP net income | $ | 69,781 | $ | 62,964 | $ | 51,348 | $ | 189,021 | $ | 143,332 | |||||||
| Add: | |||||||||||||||||
| Amortization of intangibles (net of tax) | 3,145 | 3,262 | 2,593 | 9,780 | 8,143 | ||||||||||||
| Tangible net income | $ | 72,926 | $ | 66,226 | $ | 53,941 | $ | 198,801 | $ | 151,475 | |||||||
| Tangible Ratios | |||||||||||||||||
| Return on tangible common equity | 16.85 | % | 15.59 | % | 15.99 | % | 15.31 | % | 14.96 | % | |||||||
| Return on average tangible common equity | 17.01 | % | 16.04 | % | 16.10 | % | 16.00 | % | 15.40 | % | |||||||
| Return on tangible assets | 1.51 | % | 1.39 | % | 1.29 | % | 1.37 | % | 1.21 | % | |||||||
| Tangible common equity to tangible assets | 8.95 | % | 8.92 | % | 8.08 | % | 8.95 | % | 8.08 | % | |||||||
| Tangible common equity to risk-weighted assets | 12.39 | % | 12.14 | % | 10.61 | % | 12.39 | % | 10.61 | % | |||||||
| Tangible common book value (1) | 10.18 | 9.86 | 8.86 | 10.18 | 8.86 | ||||||||||||
| 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 capital | $ | 1,681,457 | $ | 1,664,277 | $ | 1,409,775 | $ | 1,681,457 | $ | 1,409,775 | |||||||
| Deduct: | |||||||||||||||||
| Tier 1 capital adjustments | - | - | - | - | - | ||||||||||||
| - | - | - | - | - | |||||||||||||
| Tier 1 common equity | $ | 1,681,457 | $ | 1,664,277 | $ | 1,409,775 | $ | 1,681,457 | $ | 1,409,775 | |||||||
| Risk-weighted assets | 13,975,295 | 13,996,770 | 12,715,665 | 13,975,295 | 12,715,665 | ||||||||||||
| Tier 1 common equity to risk-weighted assets | 12.03 | % | 11.89 | % | 11.09 | % | 12.03 | % | 11.09 | % | |||||||