EVANSVILLE, Ind., July 20, 2020 (GLOBE NEWSWIRE) --
| Old National Bancorp (NASDAQ: ONB) reports 2Q20 net income of $51.7 million, diluted EPS of $0.32. |
| Adjusted1 net income of $55.1 million, or $0.33 per diluted share. |
CEO COMMENTARY:
| “Old National’s strong 2nd quarter loan production was driven by our ability to help more than 9,400 new and existing clients secure Paycheck Protection Program funding, which resulted in financial assistance to nearly 160,000 of their employees,” said Old National Chairman & CEO Jim Ryan. “We also maintained strong credit metrics and capital ratios during the quarter while working to finalize our recently announced technology partnership with Infosys – a partnership that will accelerate and enhance our ability to provide powerful digital solutions to our clients.” |
SECOND QUARTER HIGHLIGHTS2:
| Net income | • Net income of $51.7 million |
| • Earnings per share of $0.32 | |
| Net interest income/NIM | • Net interest income on a fully taxable equivalent basis of $149.0 million compared to $147.1 million |
| • Net interest margin on a fully taxable equivalent basis of 3.14% compared to 3.31% | |
| Operating Performance | • Pre-provision net revenue1 (“PPNR”) of $87.3 million |
| • Adjusted PPNR1 of $92.1 million, up 7.6% over second quarter of 2019 | |
| • Noninterest expense of $120.2 million | |
| • Adjusted noninterest expense1 of $115.0 million | |
| • Efficiency ratio1 of 56.29% | |
| • Adjusted efficiency ratio1 of 53.79%, a 552 basis point improvement | |
| Loans and Credit Quality | • End-of-period total loans3 of $13,738.2 million compared to $12,438.8 million |
| ◦ Paycheck Protection Program Loans (PPP) amounted to $1,462.8 million at the end of June | |
| • Second-quarter total commercial production, excluding PPP loans, of $658.5 million | |
| • Provision for credit losses of $22.5 million | |
| • June 30 pipeline of $2.7 billion | |
| • Net charge-offs of $0.5 million, or 0.02% annualized, compared to net charge-offs of $6.5 million | |
| • Non-performing loans of 1.04% of total loans compared to 1.16% | |
| Return Profile & Capital | • Return on average common equity of 7.27% |
| • Return on average tangible common equity1 of 12.41% | |
| • Adjusted return on average tangible common equity1 of 13.18% | |
| • No shares of common stock were repurchased during the current quarter | |
| Notable Items | • $4.9 million in ONB Way charges |
| • $0.3 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
THE ONB WAY, OLD NATIONAL'S STRATEGIC PLAN, CONTINUES WITH TECHNOLOGY PARTNERSHIP
In a press release dated July 10, 2020, Old National announced a strategic technology partnership with Infosys, one of the world's foremost information technology companies. This partnership will enable faster adoption of digital solutions, modernize Old National's existing technology infrastructure and enhance both the employee and client experience.
RESULTS OF OPERATIONS
Old National Bancorp reported second quarter 2020 net income of $51.7 million, or $0.32 per diluted share.
Included in the second quarter were pre-tax charges of $5.0 million for ONB Way. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $55.1 million, or $0.33 per diluted share.
LOANS
Strong PPP volume drove total loan balances higher.
- Period-end total loans were $13,738.2 million at June 30, 2020, compared to $12,438.8 million at March 31, 2020. Driving the large increase was $1,462.8 million in outstanding PPP loan balances at June 30, 2020.
- Commercial and industrial loans increased $1,260.9 million to $4,307.5 million as a result of strong PPP loan production.
- Commercial real estate loans increased $119.9 million to $5,403.3 million, or 9.1% annualized growth.
- Consumer loans decreased $51.1 million to $1,675.6 million and residential mortgage loans decreased $98.6 million to $2,229.3 million.
- Commercial loan production in the second quarter, excluding PPP loan production, was $658.5 million; period-end pipeline totaled $2.7 billion.
- Average total loans in the second quarter were $13,450.1 million, an increase of $1,257.7 million from the first quarter of 2020.
DEPOSITS
A low-cost core deposit franchise continues to be one of Old National’s strengths.
- Period-end total deposits were $16,319.4 million at June 30, 2020, compared to $14,305.4 million at March 31, 2020. PPP funds and higher client savings rates drove the increase in deposit balances.
- On average, total deposits in the second quarter were $15,652.8 million, compared to $14,327.8 million in the first quarter of 2020.
NET INTEREST INCOME AND MARGIN
Net interest income higher on net PPP loan fees while net interest margin is lower with decline in accretion income and impact of 1% PPP loan coupon.
- Net interest income increased to $145.6 million in the second quarter of 2020 from $143.8 million in the first quarter of 2020.
- The net interest margin on a fully taxable equivalent basis decreased 17 basis points to 3.14% compared to 3.31% in the first quarter of 2020.
- PPP interest and net fees combined to have a positive impact of $6.6 million to net interest income in the second quarter while the low 1% coupon rate negatively impacted net interest margin by 5 basis points.
- Accretion income was $5.8 million, or 12 basis points of net interest margin, in the second quarter of 2020 compared to $6.7 million, or 15 basis points of net interest margin, in the first quarter of 2020. In the second quarter of 2020, accretion income was 2.8% of adjusted total revenue.
- Interest collected on nonaccrual loans was $0.6 million, or 1 basis point of net interest margin, in the second quarter of 2020 compared to $0.7 million, or 1 basis point of net interest margin, in the first quarter of 2020.
- The cost of total deposits declined 17 basis points to 0.17% in the second quarter of 2020 while the cost of total interest-bearing deposits decreased 23 basis points to 0.25%.
CREDIT QUALITY
Strong credit quality remains a hallmark of the Old National franchise.
- Provision for credit losses was $22.5 million in the second quarter of 2020, compared to $16.9 million in the first quarter, and continues to be impacted by an economic forecast that includes the impact of novel coronavirus pandemic.
- Net charge-offs in the second quarter were $0.5 million, or 0.02% of total average loans, and 30-89 day delinquencies of 0.16%.
- Non-performing loans decreased as a percentage of total loans to 1.04%.
- Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of June 30, 2020, the remaining discount on these acquired loans was $61.5 million.
- The allowance for credit losses was $128.4 million, or 0.94% of total loans at June 30, 2020.
NONINTEREST INCOME
Noninterest income increased due to strong mortgage banking revenue and an increase in capital markets income.
- Total noninterest income for the second quarter of 2020 was $58.5 million, an increase of $1.0 million from the first quarter of 2020.
- Mortgage banking revenue increased $6.2 million and capital markets income increased $1.9 million when compared to the first quarter of 2020 while service charges on deposit accounts decreased $2.5 million and investment product fees decreased $1.0 million.
NONINTEREST EXPENSE
Second quarter results demonstrate benefit of The ONB Way, helping drive positive operating leverage1.
- Noninterest expense for the second quarter of 2020 was $120.2 million and included $4.9 million in ONB Way charges and $0.3 million in tax credit amortization.
- Excluding these items, adjusted noninterest expense for the second quarter was $115.0 million, compared to the $122.0 million in adjusted noninterest expense in the first quarter of 2020.
- The second quarter efficiency ratio was 56.29%, while the adjusted efficiency ratio was 53.79%.
- Adjusted operating leverage1 was +576 basis points for the second quarter of 2020 as compared to the second quarter of 2019.
INCOME TAXES
- On a fully taxable-equivalent basis, income tax expense in the second quarter was $13.1 million, resulting in a 20.2% FTE tax rate.
- Income tax expense included $0.3 million in tax credit benefit.
CAPITAL AND LIQUIDITY
Capital ratios remain strong.
- At the end of the second quarter, total risk-based capital was 12.68% and regulatory tier 1 capital was 11.70%.
- Tangible common equity to tangible assets was 8.45% at the end of the second quarter compared to 8.81% in the first quarter of 2020.
- The Company did not repurchase any shares of common stock during the second quarter.
- A low loan to deposit ratio of 84.2%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.
NON-GAAP RECONCILIATIONS
| ($ in millions, except EPS, shares in 000s) | 2Q20 | Adjustments4 | Adjusted 2Q20 | ||||||||
| Total Revenues (FTE) | $ | 207.5 | $ | (0.4 | ) | $ | 207.1 | ||||
| Less: Provision for Credit Losses | (22.5 | ) | — | (22.5 | ) | ||||||
| Less: Noninterest Expenses | (120.2 | ) | 4.9 | (115.3 | ) | ||||||
| Income before Income Taxes (FTE) | $ | 64.8 | $ | 4.5 | $ | 69.3 | |||||
| Income Taxes | (13.1 | ) | (1.1 | ) | (14.2 | ) | |||||
| Net Income | $ | 51.7 | $ | 3.4 | $ | 55.1 | |||||
| Average Shares Outstanding | 165,302 | — | 165,302 | ||||||||
| Earnings Per Share - Diluted | $ | 0.32 | $ | 0.01 | $ | 0.33 | |||||
4 Tax-effect calculations use the current statutory FTE tax rates (federal + state)
| ($ in millions) | 2Q20 | 1Q20 | |||||
| Net Interest Income | $ | 145.6 | $ | 143.8 | |||
| Add: FTE Adjustment | 3.4 | 3.3 | |||||
| Net Interest Income (FTE) | $ | 149.0 | $ | 147.1 | |||
| Average Earning Assets | $ | 19,007.7 | $ | 17,774.0 | |||
| Net Interest Margin (FTE) | 3.14 | % | 3.31 | % | |||
| ($ in millions) | 2Q20 | 2Q19 | |||||
| Net Interest Income | $ | 145.6 | $ | 155.2 | |||
| Add: FTE Adjustment | 3.4 | 3.3 | |||||
| Net Interest Income (FTE) | $ | 149.0 | $ | 158.5 | |||
| Add: Total Noninterest Income | 58.5 | 51.2 | |||||
| Less: Noninterest Expense | 120.2 | 128.1 | |||||
| Pre-Provision Net Revenue | $ | 87.3 | $ | 81.6 | |||
| Less: Debt Securities Gains | (0.5 | ) | (1.2 | ) | |||
| Add: Loss on Branch Actions | 0.1 | — | |||||
| Add: ONB Way Charges | 4.9 | 1.4 | |||||
| Add: Merger and Integration Charges | — | 3.2 | |||||
| Add: Amortization of Tax Credit Investments | 0.3 | 0.6 | |||||
| Adjusted Pre-Provision Net Revenue | $ | 92.1 | $ | 85.6 | |||
| ($ in millions) | 2Q20 | 1Q20 | 2Q19 | ||||||||
| Noninterest Expense | $ | 120.2 | $ | 158.7 | $ | 128.1 | |||||
| Less: ONB Way Charges | (4.9 | ) | (31.2 | ) | (1.4 | ) | |||||
| Less: Merger and Integration Charges | — | — | (3.2 | ) | |||||||
| Noninterest Expense less Charges | $ | 115.3 | $ | 127.5 | $ | 123.5 | |||||
| Less: Amortization of Tax Credit Investments | (0.3 | ) | (5.5 | ) | (0.6 | ) | |||||
| Adjusted Noninterest Expense | $ | 115.0 | $ | 122.0 | $ | 122.9 | |||||
| Less: Intangible Amortization | (3.6 | ) | (3.8 | ) | (4.3 | ) | |||||
| Adjusted Noninterest Expense Less Intangible Amortization | $ | 111.4 | $ | 118.2 | $ | 118.6 | |||||
| Net Interest Income | $ | 145.6 | $ | 143.8 | $ | 155.2 | |||||
| FTE Adjustment | 3.4 | 3.3 | 3.3 | ||||||||
| Net Interest Income (FTE) | $ | 149.0 | $ | 147.1 | $ | 158.5 | |||||
| Total Noninterest Income | 58.5 | 57.5 | 51.2 | ||||||||
| Total Revenue (FTE) | 207.5 | 204.6 | 209.7 | ||||||||
| Less: Debt Securities Gains/Losses | (0.5 | ) | (5.2 | ) | (1.2 | ) | |||||
| Add: Loss on Branch Actions | 0.1 | — | — | ||||||||
| Adjusted Total Revenue (FTE) | 207.1 | 199.4 | 208.5 | ||||||||
| Efficiency Ratio | 56.29 | % | 77.71 | % | 59.35 | % | |||||
| Adjusted Efficiency Ratio | 53.79 | % | 59.31 | % | 56.85 | % | |||||
| Operating Leverage5 (basis points) | 518 | ||||||||||
| Adjusted Operating Leverage6 (basis points) | 576 | ||||||||||
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) | 2Q20 | 1Q20 | |||||
| Net Income | $ | 51.7 | $ | 22.6 | |||
| Add: Intangible Amortization (net of tax7) | 2.7 | 2.9 | |||||
| Tangible Net Income | $ | 54.4 | $ | 25.5 | |||
| Less: Securities Gains/Losses (net of tax7) | (0.4 | ) | (3.9 | ) | |||
| Add: Loss on Branch Actions (net of tax7) | 0.1 | — | |||||
| Add: ONB Way Charges (net of tax7) | 3.7 | 23.4 | |||||
| Adjusted Tangible Net Income | $ | 57.8 | $ | 45.0 | |||
| Average Total Shareholders’ Equity | 2,845.4 | 2,833.5 | |||||
| Less: Average Goodwill | (1,037.0 | ) | (1,037.0 | ) | |||
| Less: Average Intangibles | (54.4 | ) | (58.1 | ) | |||
| Average Tangible Shareholders’ Equity | $ | 1,754.0 | $ | 1,738.4 | |||
| Return on Average Tangible Common Equity | 12.41 | % | 5.86 | % | |||
| Adjusted Return on Average Tangible Common Equity | 13.18 | % | 10.35 | % | |||
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 8:00 a.m. Central Time on Monday, July 20, 2020, to review second-quarter 2020 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 11:00 a.m. Central Time on July 20 through August 2. To access the replay, dial 1-855-859-2056, Conference ID Code 7973414.
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 $22.1 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 nine 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, Wisconsin and Minnesota. 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; 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 new 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 | Six Months Ended | |||||||||||||||
| June 30, | March 31 | June 30, | June 30, | June 30, | ||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Income Statement | ||||||||||||||||
| Net interest income | $ | 145,671 | $ | 143,771 | $ | 155,230 | $ | 289,442 | $ | 302,278 | ||||||
| Tax equivalent adjustment (1) | 3,367 | 3,323 | 3,289 | 6,690 | 6,487 | |||||||||||
| Net interest income - tax equivalent basis | 149,038 | 147,094 | 158,519 | 296,132 | 308,765 | |||||||||||
| Provision for loan losses (4) | 22,545 | 16,950 | 1,003 | 39,495 | 2,046 | |||||||||||
| Noninterest income | 58,461 | 57,502 | 51,214 | 115,963 | 97,630 | |||||||||||
| Noninterest expense | 120,121 | 158,744 | 128,118 | 278,865 | 251,159 | |||||||||||
| Net income | 51,705 | 22,640 | 62,964 | 74,345 | 119,240 | |||||||||||
| Per Common Share Data | ||||||||||||||||
| Weighted average diluted shares | 165,302 | 168,404 | 173,675 | 166,848 | 174,531 | |||||||||||
| Net income (diluted) | $ | 0.32 | $ | 0.13 | $ | 0.36 | $ | 0.45 | $ | 0.68 | ||||||
| Cash dividends | 0.14 | 0.14 | 0.13 | 0.28 | 0.26 | |||||||||||
| Common dividend payout ratio (2) | 44 | % | 108 | % | 35 | % | 62 | % | 38 | % | ||||||
| Book value | $ | 17.35 | $ | 17.10 | $ | 16.28 | $ | 17.35 | $ | 16.28 | ||||||
| Stock price | 13.76 | 13.19 | 16.59 | 13.76 | 16.59 | |||||||||||
| Tangible common book value (3) | 10.75 | 10.48 | 9.86 | 10.75 | 9.86 | |||||||||||
| Performance Ratios | ||||||||||||||||
| Return on average assets | 0.96 | % | 0.44 | % | 1.26 | % | 0.71 | % | 1.20 | % | ||||||
| Return on average common equity | 7.27 | % | 3.20 | % | 9.13 | % | 5.24 | % | 8.72 | % | ||||||
| Return on tangible common equity (3) | 12.27 | % | 5.89 | % | 15.59 | % | 9.01 | % | 14.82 | % | ||||||
| Return on average tangible common equity (3) | 12.41 | % | 5.86 | % | 16.04 | % | 9.15 | % | 15.47 | % | ||||||
| Net interest margin (FTE) | 3.14 | % | 3.31 | % | 3.66 | % | 3.22 | % | 3.59 | % | ||||||
| Efficiency ratio (5) | 56.29 | % | 77.71 | % | 59.35 | % | 66.80 | % | 59.79 | % | ||||||
| Net charge-offs (recoveries) to average loans | 0.02 | % | 0.21 | % | 0.01 | % | 0.11 | % | 0.02 | % | ||||||
| Allowance for loan losses to ending loans (4) | 0.94 | % | 0.86 | % | 0.47 | % | 0.94 | % | 0.47 | % | ||||||
| Non-performing loans to ending loans | 1.04 | % | 1.16 | % | 1.34 | % | 1.04 | % | 1.34 | % | ||||||
| Balance Sheet (EOP) | ||||||||||||||||
| Total loans | $ | 13,615,701 | $ | 12,384,612 | $ | 12,046,578 | $ | 13,615,701 | $ | 12,046,578 | ||||||
| Total assets | 22,102,188 | 20,741,141 | 20,145,285 | 22,102,188 | 20,145,285 | |||||||||||
| Total deposits | 16,319,446 | 14,305,362 | 14,363,101 | 16,319,446 | 14,363,101 | |||||||||||
| Total borrowed funds | 2,641,436 | 3,245,214 | 2,726,481 | 2,641,436 | 2,726,481 | |||||||||||
| Total shareholders' equity | 2,864,255 | 2,823,435 | 2,803,139 | 2,864,255 | 2,803,139 | |||||||||||
| Capital Ratios (3) | ||||||||||||||||
| Risk-based capital ratios (EOP): | ||||||||||||||||
| Tier 1 common equity | 11.70 | % | 11.40 | % | 11.89 | % | 11.70 | % | 11.89 | % | ||||||
| Tier 1 | 11.70 | % | 11.40 | % | 11.89 | % | 11.70 | % | 11.89 | % | ||||||
| Total | 12.68 | % | 12.28 | % | 12.82 | % | 12.68 | % | 12.82 | % | ||||||
| Leverage ratio (to average assets) | 8.12 | % | 8.46 | % | 8.82 | % | 8.12 | % | 8.82 | % | ||||||
| Total equity to assets (averages) | 13.16 | % | 13.91 | % | 13.82 | % | 13.53 | % | 13.76 | % | ||||||
| Tangible common equity to tangible assets | 8.45 | % | 8.81 | % | 8.92 | % | 8.45 | % | 8.92 | % | ||||||
| Nonfinancial Data | ||||||||||||||||
| Full-time equivalent employees | 2,530 | 2,736 | 2,829 | 2,530 | 2,829 | |||||||||||
| Banking centers | 162 | 192 | 192 | 162 | 192 | |||||||||||
| (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. | ||||||||||||||||
| (4) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. | ||||||||||||||||
| (5) 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 | ||||||||||||||||
| N/A - Not applicable | ||||||||||||||||
| Income Statement (unaudited) | ||||||||||||||||
| ($ and shares in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Interest income | $ | 161,974 | $ | 167,999 | $ | 189,063 | $ | 329,973 | $ | 367,981 | ||||||
| Less: interest expense | 16,303 | 24,228 | 33,833 | 40,531 | 65,703 | |||||||||||
| Net interest income | 145,671 | 143,771 | 155,230 | 289,442 | 302,278 | |||||||||||
| Provision for loan losses (1) | 22,545 | 16,950 | 1,003 | 39,495 | 2,046 | |||||||||||
| Net interest income after provision for loan losses | 123,126 | 126,821 | 154,227 | 249,947 | 300,232 | |||||||||||
| Wealth management fees | 9,424 | 8,884 | 9,909 | 18,308 | 18,444 | |||||||||||
| Service charges on deposit accounts | 7,582 | 10,077 | 11,515 | 17,659 | 22,341 | |||||||||||
| Debit card and ATM fees | 4,832 | 4,998 | 5,419 | 9,830 | 10,922 | |||||||||||
| Mortgage banking revenue | 17,313 | 11,119 | 7,135 | 28,432 | 12,146 | |||||||||||
| Investment product fees | 4,845 | 5,874 | 5,591 | 10,719 | 10,862 | |||||||||||
| Capital markets income | 6,179 | 4,328 | 3,150 | 10,507 | 5,667 | |||||||||||
| Company-owned life insurance | 2,968 | 3,080 | 2,711 | 6,048 | 5,899 | |||||||||||
| Other income | 4,807 | 3,968 | 4,619 | 8,775 | 10,287 | |||||||||||
| Gains (losses) on sales of debt securities | 511 | 5,174 | 1,165 | 5,685 | 1,062 | |||||||||||
| Total noninterest income | 58,461 | 57,502 | 51,214 | 115,963 | 97,630 | |||||||||||
| Salaries and employee benefits | 66,556 | 79,173 | 71,566 | 145,729 | 142,749 | |||||||||||
| Occupancy | 13,245 | 15,133 | 14,559 | 28,378 | 29,137 | |||||||||||
| Equipment | 3,853 | 5,305 | 4,517 | 9,158 | 8,991 | |||||||||||
| Marketing | 2,395 | 3,097 | 4,439 | 5,492 | 8,162 | |||||||||||
| Data processing | 9,629 | 9,467 | 10,207 | 19,096 | 19,548 | |||||||||||
| Communication | 2,296 | 2,798 | 2,849 | 5,094 | 5,903 | |||||||||||
| Professional fees | 3,545 | 4,293 | 4,921 | 7,838 | 7,831 | |||||||||||
| FDIC assessment | 2,014 | 1,609 | 1,454 | 3,623 | 3,541 | |||||||||||
| Amortization of intangibles | 3,612 | 3,776 | 4,325 | 7,388 | 8,797 | |||||||||||
| Amortization of tax credit investments | 287 | 5,515 | 568 | 5,802 | 828 | |||||||||||
| Other expense | 12,689 | 28,578 | 8,713 | 41,267 | 15,672 | |||||||||||
| Total noninterest expense | 120,121 | 158,744 | 128,118 | 278,865 | 251,159 | |||||||||||
| Income before income taxes | 61,466 | 25,579 | 77,323 | 87,045 | 146,703 | |||||||||||
| Income tax expense | 9,761 | 2,939 | 14,359 | 12,700 | 27,463 | |||||||||||
| Net income | $ | 51,705 | $ | 22,640 | $ | 62,964 | $ | 74,345 | $ | 119,240 | ||||||
| Diluted Earnings Per Share | ||||||||||||||||
| Net income | $ | 0.32 | $ | 0.13 | $ | 0.36 | $ | 0.45 | $ | 0.68 | ||||||
| Average Common Shares Outstanding | ||||||||||||||||
| Basic | 164,732 | 167,748 | 172,985 | 166,240 | 173,855 | |||||||||||
| Diluted | 165,302 | 168,404 | 173,675 | 166,848 | 174,531 | |||||||||||
| Common shares outstanding at end of period | 165,093 | 165,109 | 172,231 | 165,093 | 172,231 | |||||||||||
| (1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. | ||||||||||||||||
| Balance Sheet (unaudited) | |||||||||||
| ($ in thousands) | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| 2020 | 2020 | 2019 | |||||||||
| Assets | |||||||||||
| Federal Reserve Bank account | $ | 54,807 | $ | 130,295 | $ | 40,945 | |||||
| Money market investments | 14,633 | 9,349 | 20,210 | ||||||||
| Investments: | |||||||||||
| Treasury and government-sponsored agencies | 489,232 | 530,904 | 725,327 | ||||||||
| Mortgage-backed securities | 3,304,054 | 3,210,000 | 2,900,235 | ||||||||
| States and political subdivisions | 1,355,959 | 1,302,395 | 1,186,311 | ||||||||
| Other securities | 512,375 | 497,709 | 489,855 | ||||||||
| Total investments | 5,661,620 | 5,541,008 | 5,301,728 | ||||||||
| Loans held for sale, at fair value | 122,507 | 54,209 | 37,904 | ||||||||
| Loans: | |||||||||||
| Commercial | 4,307,505 | 3,046,579 | 3,074,849 | ||||||||
| Commercial and agriculture real estate | 5,403,316 | 5,283,464 | 4,993,693 | ||||||||
| Consumer: | |||||||||||
| Home equity | 547,286 | 561,789 | 553,991 | ||||||||
| Other consumer loans | 1,128,296 | 1,164,929 | 1,201,847 | ||||||||
| Subtotal of commercial and consumer loans | 11,386,403 | 10,056,761 | 9,824,380 | ||||||||
| Residential real estate | 2,229,298 | 2,327,851 | 2,222,198 | ||||||||
| Total loans | 13,615,701 | 12,384,612 | 12,046,578 | ||||||||
| Total earning assets | 19,469,268 | 18,119,473 | 17,447,365 | ||||||||
| Allowance for loan losses (1) | (128,394 | ) | (106,380 | ) | (56,292 | ) | |||||
| Non-earning Assets: | |||||||||||
| Cash and due from banks | 241,054 | 203,533 | 239,831 | ||||||||
| Premises and equipment, net | 462,796 | 462,364 | 493,481 | ||||||||
| Operating lease right-of-use assets | 80,400 | 86,819 | 106,222 | ||||||||
| Goodwill and other intangible assets | 1,089,711 | 1,093,323 | 1,104,478 | ||||||||
| Company-owned life insurance | 453,116 | 450,148 | 445,749 | ||||||||
| Other assets | 434,237 | 431,861 | 364,451 | ||||||||
| Total non-earning assets | 2,761,314 | 2,728,048 | 2,754,212 | ||||||||
| Total assets | $ | 22,102,188 | $ | 20,741,141 | $ | 20,145,285 | |||||
| Liabilities and Equity | |||||||||||
| Noninterest-bearing demand deposits | $ | 5,217,678 | $ | 4,058,559 | $ | 3,771,888 | |||||
| Interest-bearing: | |||||||||||
| Checking and NOW accounts | 4,567,046 | 4,105,006 | 3,950,161 | ||||||||
| Savings accounts | 3,166,680 | 2,853,305 | 2,877,673 | ||||||||
| Money market accounts | 1,895,809 | 1,746,798 | 1,819,716 | ||||||||
| Other time deposits | 1,321,499 | 1,469,185 | 1,756,814 | ||||||||
| Total core deposits | 16,168,712 | 14,232,853 | 14,176,252 | ||||||||
| Brokered CD's | 150,734 | 72,509 | 186,849 | ||||||||
| Total deposits | 16,319,446 | 14,305,362 | 14,363,101 | ||||||||
| Federal funds purchased and interbank borrowings | 801 | 560,770 | 410,036 | ||||||||
| Securities sold under agreements to repurchase | 367,744 | 318,067 | 334,540 | ||||||||
| Federal Home Loan Bank advances | 2,035,014 | 2,130,263 | 1,730,065 | ||||||||
| Other borrowings | 237,877 | 236,114 | 251,840 | ||||||||
| Total borrowed funds | 2,641,436 | 3,245,214 | 2,726,481 | ||||||||
| Operating lease liabilities | 91,845 | 95,830 | 110,596 | ||||||||
| Accrued expenses and other liabilities | 185,206 | 271,300 | 141,968 | ||||||||
| Total liabilities | 19,237,933 | 17,917,706 | 17,342,146 | ||||||||
| Common stock, surplus, and retained earnings | 2,715,212 | 2,685,278 | 2,761,102 | ||||||||
| Accumulated other comprehensive income (loss), net of tax | 149,043 | 138,157 | 42,037 | ||||||||
| Total shareholders' equity | 2,864,255 | 2,823,435 | 2,803,139 | ||||||||
| Total liabilities and shareholders' equity | $ | 22,102,188 | $ | 20,741,141 | $ | 20,145,285 | |||||
| (1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. | |||||||||||
| Average Balance Sheet and Interest Rates (unaudited) | |||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
| June 30, 2020 | March 31, 2020 | June 30, 2019 | |||||||||||||||||||||||||
| 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 | $ | 85,680 | $ | 34 | 0.16 | % | $ | 58,406 | $ | 349 | 2.41 | % | $ | 58,321 | $ | 334 | 2.29 | % | |||||||||
| Investments: | |||||||||||||||||||||||||||
| Treasury and government-sponsored agencies | 501,838 | 3,033 | 2.42 | % | 583,971 | 3,697 | 2.53 | % | 695,775 | 4,301 | 2.47 | % | |||||||||||||||
| Mortgage-backed securities | 3,179,165 | 17,930 | 2.26 | % | 3,171,650 | 19,065 | 2.40 | % | 2,767,791 | 18,799 | 2.72 | % | |||||||||||||||
| States and political subdivisions | 1,293,756 | 11,757 | 3.63 | % | 1,273,156 | 11,409 | 3.58 | % | 1,193,176 | 11,235 | 3.77 | % | |||||||||||||||
| Other securities | 497,204 | 3,224 | 2.59 | % | 494,500 | 3,216 | 2.60 | % | 496,631 | 4,063 | 3.27 | % | |||||||||||||||
| Total investments | 5,471,963 | 35,944 | 2.63 | % | 5,523,277 | 37,387 | 2.71 | % | 5,153,373 | 38,398 | 2.98 | % | |||||||||||||||
| Loans: (2) | |||||||||||||||||||||||||||
| Commercial | 4,049,403 | 31,729 | 3.10 | % | 2,907,297 | 29,053 | 3.95 | % | 3,063,590 | 37,828 | 4.88 | % | |||||||||||||||
| Commercial and agriculture real estate | 5,340,622 | 58,007 | 4.30 | % | 5,188,597 | 62,439 | 4.76 | % | 5,019,859 | 72,214 | 5.69 | % | |||||||||||||||
| Consumer: | |||||||||||||||||||||||||||
| Home equity | 554,701 | 4,213 | 3.06 | % | 558,356 | 5,631 | 4.06 | % | 558,223 | 7,390 | 5.31 | % | |||||||||||||||
| Other consumer loans | 1,135,943 | 11,530 | 4.08 | % | 1,167,802 | 12,219 | 4.21 | % | 1,201,752 | 12,408 | 4.14 | % | |||||||||||||||
| Subtotal commercial and consumer loans | 11,080,669 | 105,479 | 3.83 | % | 9,822,052 | 109,342 | 4.48 | % | 9,843,424 | 129,840 | 5.29 | % | |||||||||||||||
| Residential real estate loans | 2,369,407 | 23,884 | 4.03 | % | 2,370,295 | 24,244 | 4.09 | % | 2,247,570 | 23,780 | 4.23 | % | |||||||||||||||
| Total loans | 13,450,076 | 129,363 | 3.82 | % | 12,192,347 | 133,586 | 4.35 | % | 12,090,994 | 153,620 | 5.05 | % | |||||||||||||||
| Total earning assets | $ | 19,007,719 | $ | 165,341 | 3.46 | % | $ | 17,774,030 | $ | 171,322 | 3.84 | % | $ | 17,302,688 | $ | 192,352 | 4.43 | % | |||||||||
| Less: Allowance for loan losses (3) | (107,619 | ) | (83,244 | ) | (56,632 | ) | |||||||||||||||||||||
| Non-earning Assets: | |||||||||||||||||||||||||||
| Cash and due from banks | $ | 332,745 | $ | 287,601 | $ | 234,337 | |||||||||||||||||||||
| Other assets | 2,384,934 | 2,388,092 | 2,473,255 | ||||||||||||||||||||||||
| Total assets | $ | 21,617,779 | $ | 20,366,479 | $ | 19,953,648 | |||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||
| Checking and NOW accounts | $ | 4,431,074 | $ | 1,075 | 0.10 | % | $ | 4,104,778 | $ | 2,860 | 0.28 | % | $ | 3,895,881 | $ | 4,196 | 0.43 | % | |||||||||
| Savings accounts | 3,060,012 | 736 | 0.10 | % | 2,828,177 | 1,298 | 0.18 | % | 2,879,704 | 2,145 | 0.30 | % | |||||||||||||||
| Money market accounts | 1,844,488 | 910 | 0.20 | % | 1,784,169 | 2,507 | 0.57 | % | 1,789,777 | 3,729 | 0.84 | % | |||||||||||||||
| Other time deposits | 1,378,115 | 3,786 | 1.10 | % | 1,562,074 | 5,186 | 1.34 | % | 1,779,770 | 7,181 | 1.62 | % | |||||||||||||||
| Total interest-bearing deposits | 10,713,689 | 6,507 | 0.24 | % | 10,279,198 | 11,851 | 0.46 | % | 10,345,132 | 17,251 | 0.67 | % | |||||||||||||||
| Brokered CD's | 68,149 | 291 | 1.72 | % | 84,099 | 447 | 2.14 | % | 212,198 | 1,268 | 2.40 | % | |||||||||||||||
| Total interest-bearing deposits and CD's | 10,781,838 | 6,798 | 0.25 | % | 10,363,297 | 12,298 | 0.48 | % | 10,557,330 | 18,519 | 0.70 | % | |||||||||||||||
| Federal funds purchased and interbank borrowings | 143,811 | 44 | 0.12 | % | 392,857 | 1,240 | 1.27 | % | 300,810 | 1,817 | 2.42 | % | |||||||||||||||
| Securities sold under agreements to repurchase | 350,545 | 185 | 0.21 | % | 329,091 | 384 | 0.47 | % | 331,695 | 671 | 0.81 | % | |||||||||||||||
| Federal Home Loan Bank advances | 2,144,497 | 6,844 | 1.28 | % | 1,965,130 | 7,768 | 1.59 | % | 1,695,681 | 10,039 | 2.37 | % | |||||||||||||||
| Other borrowings | 251,738 | 2,432 | 3.87 | % | 240,276 | 2,538 | 4.23 | % | 251,577 | 2,787 | 4.43 | % | |||||||||||||||
| Total borrowed funds | 2,890,591 | 9,505 | 1.32 | % | 2,927,354 | 11,930 | 1.64 | % | 2,579,763 | 15,314 | 2.38 | % | |||||||||||||||
| Total interest-bearing liabilities | 13,672,429 | 16,303 | 0.48 | % | 13,290,651 | 24,228 | 0.73 | % | 13,137,093 | 33,833 | 1.03 | % | |||||||||||||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||
| Demand deposits | $ | 4,871,002 | $ | 3,964,493 | $ | 3,812,175 | |||||||||||||||||||||
| Other liabilities | 228,950 | 277,812 | 246,134 | ||||||||||||||||||||||||
| Shareholders' equity | 2,845,398 | 2,833,523 | 2,758,246 | ||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 21,617,779 | $ | 20,366,479 | $ | 19,953,648 | |||||||||||||||||||||
| Net interest rate spread | 2.98 | % | 3.11 | % | 3.40 | % | |||||||||||||||||||||
| Net interest margin (FTE) | 3.14 | % | 3.31 | % | 3.66 | % | |||||||||||||||||||||
| FTE adjustment | $ | 3,367 | $ | 3,323 | $ | 3,289 | |||||||||||||||||||||
| (1) Interest income is reflected on a fully taxable equivalent basis (FTE). | |||||||||||||||||||||||||||
| (2) Includes loans held for sale. | |||||||||||||||||||||||||||
| (3) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. | |||||||||||||||||||||||||||
| Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||
| Six Months Ended | Six Months Ended | |||||||||||||||||
| June 30, 2020 | June 30, 2019 | |||||||||||||||||
| Average | Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | |||||||||||||
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
| Money market and other interest-earning | ||||||||||||||||||
| investments | $ | 72,043 | $ | 383 | 1.07 | % | $ | 58,510 | $ | 612 | 2.11 | % | ||||||
| Investments: | ||||||||||||||||||
| Treasury and government-sponsored agencies | 542,904 | 6,730 | 2.48 | % | 700,569 | 8,203 | 2.34 | % | ||||||||||
| Mortgage-backed securities | 3,175,408 | 36,996 | 2.33 | % | 2,633,326 | 36,402 | 2.76 | % | ||||||||||
| States and political subdivisions | 1,283,456 | 23,165 | 3.61 | % | 1,212,658 | 22,688 | 3.74 | % | ||||||||||
| Other securities | 495,852 | 6,440 | 2.60 | % | 497,115 | 8,503 | 3.42 | % | ||||||||||
| Total investments | $ | 5,497,620 | $ | 73,331 | 2.67 | % | $ | 5,043,668 | $ | 75,796 | 3.01 | % | ||||||
| Loans: (2) | ||||||||||||||||||
| Commercial | 3,478,351 | 60,782 | 3.46 | % | 3,092,833 | 73,863 | 4.75 | % | ||||||||||
| Commercial and agriculture real estate | 5,264,610 | 120,446 | 4.53 | % | 5,004,824 | 137,290 | 5.46 | % | ||||||||||
| Consumer: | ||||||||||||||||||
| Home equity | 556,528 | 9,845 | 3.56 | % | 573,211 | 14,987 | 5.27 | % | ||||||||||
| Other consumer loans | 1,151,871 | 23,748 | 4.15 | % | 1,197,150 | 24,208 | 4.08 | % | ||||||||||
| Subtotal commercial and consumer loans | 10,451,360 | 214,821 | 4.13 | % | 9,868,018 | 250,348 | 5.12 | % | ||||||||||
| Residential real estate loans | 2,369,852 | 48,128 | 4.06 | % | 2,253,375 | 47,712 | 4.23 | % | ||||||||||
| Total loans | 12,821,212 | 262,949 | 4.07 | % | 12,121,393 | 298,060 | 4.91 | % | ||||||||||
| Total earning assets | $ | 18,390,875 | $ | 336,663 | 3.64 | % | $ | 17,223,571 | $ | 374,468 | 4.34 | % | ||||||
| Less: Allowance for loan losses (3) | (95,432 | ) | (56,213 | ) | ||||||||||||||
| Non-earning Assets: | ||||||||||||||||||
| Cash and due from banks | $ | 310,173 | $ | 232,159 | ||||||||||||||
| Other assets | 2,386,513 | 2,481,842 | ||||||||||||||||
| Total assets | $ | 20,992,129 | $ | 19,881,359 | ||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||
| Checking and NOW accounts | $ | 4,267,926 | $ | 3,934 | 0.19 | % | $ | 3,795,441 | $ | 7,338 | 0.39 | % | ||||||
| Savings accounts | 2,944,094 | 2,034 | 0.14 | % | 2,907,552 | 4,428 | 0.31 | % | ||||||||||
| Money market accounts | 1,814,328 | 3,417 | 0.38 | % | 1,746,456 | 6,555 | 0.76 | % | ||||||||||
| Other time deposits | 1,470,094 | 8,972 | 1.23 | % | 1,809,975 | 14,283 | 1.59 | % | ||||||||||
| Total interest-bearing deposits | 10,496,442 | 18,357 | 0.35 | % | 10,259,424 | 32,604 | 0.64 | % | ||||||||||
| Brokered CD's | 76,124 | 739 | 1.95 | % | 201,878 | 2,359 | 2.36 | % | ||||||||||
| Total interest-bearing deposits and CD's | 10,572,566 | 19,096 | 0.36 | % | 10,461,302 | 34,963 | 0.67 | % | ||||||||||
| Federal funds purchased and interbank borrowings | 268,334 | 1,284 | 0.96 | % | 308,860 | 3,735 | 2.44 | % | ||||||||||
| Securities sold under agreements to repurchase | 339,818 | 569 | 0.34 | % | 346,396 | 1,333 | 0.78 | % | ||||||||||
| Federal Home Loan Bank advances | 2,054,814 | 14,612 | 1.43 | % | 1,684,093 | 19,970 | 2.39 | % | ||||||||||
| Other borrowings | 246,007 | 4,970 | 4.04 | % | 250,690 | 5,702 | 4.55 | % | ||||||||||
| Total borrowed funds | 2,908,973 | 21,435 | 1.48 | % | 2,590,039 | 30,740 | 2.39 | % | ||||||||||
| Total interest-bearing liabilities | 13,481,539 | 40,531 | 0.60 | % | 13,051,341 | 65,703 | 1.02 | % | ||||||||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | ||||||||||||||||||
| Demand deposits | $ | 4,417,748 | $ | 3,829,406 | ||||||||||||||
| Other liabilities | 253,382 | 264,274 | ||||||||||||||||
| Shareholders' equity | 2,839,460 | 2,736,338 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 20,992,129 | $ | 19,881,359 | ||||||||||||||
| Net interest rate spread | 3.04 | % | 3.32 | % | ||||||||||||||
| Net interest margin (FTE) | 3.22 | % | 3.59 | % | ||||||||||||||
| FTE adjustment | $ | 6,690 | $ | 6,487 | ||||||||||||||
| (1) Interest income is reflected on a fully taxable equivalent basis (FTE). | ||||||||||||||||||
| (2) Includes loans held for sale. | ||||||||||||||||||
| (3) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. | ||||||||||||||||||
| Asset Quality (EOP) (unaudited) | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Beginning allowance for loan losses | $ | 106,380 | $ | 54,619 | $ | 55,559 | $ | 54,619 | $ | 55,461 | ||||||
| Impact of adopting ASC 326 on 1/1/2020 (1) | — | 41,347 | N/A | 41,347 | N/A | |||||||||||
| Provision for loan losses (1) | 22,545 | 16,950 | 1,003 | 39,495 | 2,046 | |||||||||||
| Gross charge-offs | (2,232 | ) | (8,445 | ) | (2,876 | ) | (10,677 | ) | (5,769 | ) | ||||||
| Gross recoveries | 1,701 | 1,909 | 2,606 | 3,610 | 4,554 | |||||||||||
| Net (charge-offs) recoveries | (531 | ) | (6,536 | ) | (270 | ) | (7,067 | ) | (1,215 | ) | ||||||
| Ending allowance for loan losses (1) | $ | 128,394 | $ | 106,380 | $ | 56,292 | $ | 128,394 | $ | 56,292 | ||||||
| Net charge-offs (recoveries) / average loans (2) | 0.02 | % | 0.21 | % | 0.01 | % | 0.11 | % | 0.02 | % | ||||||
| Average loans outstanding (2) | $ | 13,435,260 | $ | 12,182,704 | $ | 12,083,609 | $ | 12,808,982 | $ | 12,115,408 | ||||||
| EOP loans outstanding (2) | 13,615,701 | 12,384,612 | 12,046,578 | 13,615,701 | 12,046,578 | |||||||||||
| Allowance for loan losses / EOP loans (1)(2) | 0.94 | % | 0.86 | % | 0.47 | % | 0.94 | % | 0.47 | % | ||||||
| Underperforming Assets: | ||||||||||||||||
| Loans 90 Days and over (still accruing) | $ | 779 | $ | 658 | $ | 423 | $ | 779 | $ | 423 | ||||||
| Non-performing loans: | ||||||||||||||||
| Nonaccrual loans (3) | 125,546 | 126,987 | 142,421 | 125,546 | 142,421 | |||||||||||
| TDRs still accruing | 16,582 | 17,040 | 19,031 | 16,582 | 19,031 | |||||||||||
| Total non-performing loans | 142,128 | 144,027 | 161,452 | 142,128 | 161,452 | |||||||||||
| Foreclosed properties | 1,786 | 2,163 | 2,819 | 1,786 | 2,819 | |||||||||||
| Total underperforming assets | $ | 144,693 | $ | 146,848 | $ | 164,694 | $ | 144,693 | $ | 164,694 | ||||||
| Classified and Criticized Assets: | ||||||||||||||||
| Nonaccrual loans (3) | 125,546 | 126,987 | 142,421 | 125,546 | 142,421 | |||||||||||
| Substandard accruing loans | 192,433 | 181,157 | 174,728 | 192,433 | 174,728 | |||||||||||
| Loans 90 days and over (still accruing) | 779 | 658 | 423 | 779 | 423 | |||||||||||
| Total classified loans - "problem loans" | $ | 318,758 | $ | 308,802 | $ | 317,572 | $ | 318,758 | $ | 317,572 | ||||||
| Other classified assets | 2,565 | 2,616 | 2,550 | 2,565 | 2,550 | |||||||||||
| Criticized loans - "special mention loans" | 220,300 | 238,011 | 220,455 | 220,300 | 220,455 | |||||||||||
| Total classified and criticized assets | $ | 541,623 | $ | 549,429 | $ | 540,577 | $ | 541,623 | $ | 540,577 | ||||||
| Non-performing loans / EOP loans (2) | 1.04 | % | 1.16 | % | 1.34 | % | 1.04 | % | 1.34 | % | ||||||
| Allowance to non-performing loans (1)(4) | 90 | % | 74 | % | 35 | % | 90 | % | 35 | % | ||||||
| Under-performing assets / EOP loans (2) | 1.06 | % | 1.19 | % | 1.37 | % | 1.06 | % | 1.37 | % | ||||||
| EOP total assets | $ | 22,102,188 | $ | 20,741,141 | $ | 20,145,285 | $ | 22,102,188 | $ | 20,145,285 | ||||||
| Under-performing assets / EOP assets | 0.65 | % | 0.71 | % | 0.82 | % | 0.65 | % | 0.82 | % | ||||||
| EOP - End of period actual balances | ||||||||||||||||
| (1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. | ||||||||||||||||
| (2) Excludes loans held for sale. | ||||||||||||||||
| (3) Includes TDRs totaling $11.3 million at June 30, 2020, $11.8 million at March 31, 2020, and $24.7 million at June 30, 2019. | ||||||||||||||||
| (4) Includes acquired loans that were recorded at fair value in accordance with ASC 805 at the date of acquisition. As such, the credit risk was incorporated in the fair value recorded and no allowance for loan losses was recorded for 2019 quarter ends. | ||||||||||||||||
| Non-GAAP Measures (unaudited) | |||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
| Actual End of Period Balances | |||||||||||||||||||||
| GAAP shareholders' equity | $ | 2,864,255 | $ | 2,823,435 | $ | 2,803,139 | $ | 2,864,255 | $ | 2,803,139 | |||||||||||
| Deduct: | |||||||||||||||||||||
| Goodwill | 1,036,994 | 1,036,994 | 1,036,258 | 1,036,994 | 1,036,258 | ||||||||||||||||
| Intangibles | 52,717 | 56,329 | 68,220 | 52,717 | 68,220 | ||||||||||||||||
| 1,089,711 | 1,093,323 | 1,104,478 | 1,089,711 | 1,104,478 | |||||||||||||||||
| Tangible shareholders' equity | $ | 1,774,544 | $ | 1,730,112 | $ | 1,698,661 | $ | 1,774,544 | $ | 1,698,661 | |||||||||||
| Average Balances | |||||||||||||||||||||
| GAAP shareholders' equity | $ | 2,845,398 | $ | 2,833,523 | $ | 2,758,246 | $ | 2,839,460 | $ | 2,736,338 | |||||||||||
| Deduct: | |||||||||||||||||||||
| Goodwill | 1,036,994 | 1,036,994 | 1,036,258 | 1,036,994 | 1,036,258 | ||||||||||||||||
| Intangibles | 54,449 | 58,127 | 70,282 | 56,288 | 72,554 | ||||||||||||||||
| 1,091,443 | 1,095,121 | 1,106,540 | 1,093,282 | 1,108,812 | |||||||||||||||||
| Average tangible shareholders' equity | $ | 1,753,955 | $ | 1,738,402 | $ | 1,651,706 | $ | 1,746,178 | $ | 1,627,526 | |||||||||||
| Actual End of Period Balances | |||||||||||||||||||||
| GAAP assets | $ | 22,102,188 | $ | 20,741,141 | $ | 20,145,285 | $ | 22,102,188 | $ | 20,145,285 | |||||||||||
| Add: | |||||||||||||||||||||
| Trust overdrafts | 15 | 119 | 29 | 15 | 29 | ||||||||||||||||
| Deduct: | |||||||||||||||||||||
| Goodwill | 1,036,994 | 1,036,994 | 1,036,258 | 1,036,994 | 1,036,258 | ||||||||||||||||
| Intangibles | 52,717 | 56,329 | 68,220 | 52,717 | 68,220 | ||||||||||||||||
| 1,089,711 | 1,093,323 | 1,104,478 | 1,089,711 | 1,104,478 | |||||||||||||||||
| Tangible assets | $ | 21,012,492 | $ | 19,647,937 | $ | 19,040,836 | $ | 21,012,492 | $ | 19,040,836 | |||||||||||
| Risk-weighted assets | $ | 14,416,184 | $ | 14,420,130 | $ | 13,996,770 | $ | 14,416,184 | $ | 13,996,770 | |||||||||||
| GAAP net income | $ | 51,705 | $ | 22,640 | $ | 62,964 | $ | 74,345 | $ | 119,240 | |||||||||||
| Add: | |||||||||||||||||||||
| Amortization of intangibles (net of tax) | 2,708 | 2,849 | 3,262 | 5,557 | 6,635 | ||||||||||||||||
| Tangible net income | $ | 54,413 | $ | 25,489 | $ | 66,226 | $ | 79,902 | $ | 125,875 | |||||||||||
| Tangible Ratios | |||||||||||||||||||||
| Return on tangible common equity | 12.27 | % | 5.89 | % | 15.59 | % | 9.01 | % | 14.82 | % | |||||||||||
| Return on average tangible common equity | 12.41 | % | 5.86 | % | 16.04 | % | 9.15 | % | 15.47 | % | |||||||||||
| Return on tangible assets | 1.04 | % | 0.52 | % | 1.39 | % | 0.76 | % | 1.32 | % | |||||||||||
| Tangible common equity to tangible assets | 8.45 | % | 8.81 | % | 8.92 | % | 8.45 | % | 8.92 | % | |||||||||||
| Tangible common equity to risk-weighted assets | 12.31 | % | 12.00 | % | 12.14 | % | 12.31 | % | 12.14 | % | |||||||||||
| Tangible common book value (1) | 10.75 | 10.48 | 9.86 | 10.75 | 9.86 | ||||||||||||||||
| 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 | $ | 1,686,714 | $ | 1,643,249 | $ | 1,664,277 | $ | 1,686,714 | $ | 1,664,277 | |||||||||||
| Risk-weighted assets | 14,416,184 | 14,420,130 | 13,996,770 | 14,416,184 | 13,996,770 | ||||||||||||||||
| Tier 1 common equity to risk-weighted assets | 11.70 | % | 11.40 | % | 11.89 | % | 11.70 | % | 11.89 | % | |||||||||||
| Media: Kathy A. Schoettlin (812) 465-7269 |
| Investors: Lynell J. Walton (812) 464-1366 |