• Old National reports 4th quarter earnings of $74.1 million, or $0.44 per share

    Источник: Nasdaq GlobeNewswire / 19 янв 2021 08:00:03   America/New_York

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

    Old National Bancorp (NASDAQ: ONB) reports 4Q20 net income of $74.1 million, diluted EPS of $0.44.
    Adjusted1 net income of $76.6 million, or $0.46 per diluted share.
    Full-Year 2020 net income of $226.4 million, or $1.36 per diluted share.
    Adjusted1 Full-Year net income of $250.3 million, or $1.50 per diluted share.

    CEO COMMENTARY:

    "Our 4th quarter success capped a very strong year of earnings as our team members worked with passion and resiliency to serve our clients," said Chairman and CEO Jim Ryan. "Another significant factor was the successful implementation of our ONB Way growth strategy in 2020, which enabled us to effectively and efficiently serve all client segments with streamlined processes and enhanced technology. This led to a phenomenal year of commercial loan production and outstanding performance."

    FOURTH QUARTER HIGHLIGHTS2:

    Net income
    		•  Net income of $74.1 million
    •  Earnings per diluted share of $0.44
      
    Net interest
    income/NIM
    		•  Net interest income on a fully taxable equivalent basis of $164.6 million compared to $149.0 million
    •  Net interest margin on a fully taxable equivalent basis of 3.26% compared to 3.03%
      
    Operating
    Performance
    		•  Pre-provision net revenue1 (“PPNR”) of $80.8 million
    •  Adjusted PPNR1 of $94.0 million, up 27.2% over fourth quarter of 2019
    •  Noninterest expense of $142.3 million
    •  Adjusted noninterest expense1 of $128.8 million
    •  Efficiency ratio1 of 62.37%
    •  Adjusted efficiency ratio1 of 56.35%
      
    Loans and
    Credit
    Quality
    		•  End-of-period total loans3 of $13,849.7 million compared to $13,977.6 million
    •  Total commercial loans increased $473.1 million, excluding the $536.2 million decline in PPP loans
    •  Fourth-quarter total commercial production of $1,197.1 million
    •  Provision for credit losses was a recapture of $1.1 million
    •  December 31 pipeline of $2.1 billion
    •  Net recoveries of $1.1 million compared to net recoveries of $3.0 million
    •  Non-performing loans of 1.20% of total loans compared to 1.15%
      
    Return
    Profile
    & Capital
    		•  Return on average common equity of 10.11%
    •  Return on average tangible common equity1 of 16.57%
    •  Adjusted return on average tangible common equity1 of 17.08%
    •  No shares of common stock were repurchased during the current quarter
      
    Notable
    Items
    		•  $3.6 million in ONB Way charges
    •  $9.9 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 fourth quarter 2020 net income of $74.1 million, or $0.44 per diluted share.

    Included in the fourth quarter were pre-tax charges of $3.6 million for the ONB Way. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $76.6 million, or $0.46 per diluted share.

    LOANS
    Strong commercial production continued; PPP loan forgiveness accelerated.

    • Period-end total loans were $13,849.7 million at December 31, 2020, a decrease of $127.9 million, or 3.7% annualized, when compared to the $13,977.6 million at September 30, 2020.
    • Excluding the $536.2 million decline in PPP loans during the quarter, total loans increased $408.3 million, or 13.1% annualized.
    • Excluding PPP loans, commercial and industrial loans increased $228.1 million, or 32.8% annualized.
    • Commercial real estate loans increased $245.0 million to $5,946.5 million, or 17.2% annualized growth.
    • Total commercial loan production in the fourth quarter was $1,197.1 million; period-end pipeline totaled $2.1 billion.
    • Consumer loans decreased $26.0 million to $1,635.1 million and residential mortgage loans decreased $16.9 million to $2,248.4 million.
    • Average total loans in the fourth quarter were $13,927.7 million, an increase of $78.8 million from the third quarter of 2020.
    • Excluding PPP loans, average total loans in the fourth quarter increased $333.9 million from the third quarter of 2020.

    DEPOSITS
    A low-cost core deposit franchise continues to be one of Old National’s strengths.

    • Period-end total deposits were $17,037.5 million at December 31, 2020, an increase of $531.0 million, or 12.9% annualized, when compared to the $16,506.5 million at September 30, 2020.
    • Interest-bearing checking deposits increased $288.6 million to $4,877.0 million at December 31, 2020.
    • Noninterest-bearing deposits increased $170.7 million to $5,633.7 million at December 31, 2020 from $5,463.0 million at September 30, 2020.
    • On average, total deposits in the fourth quarter were $16,810.6 million, compared to $16,436.8 million in the third quarter of 2020.

    NET INTEREST INCOME AND MARGIN
    Net interest income and margin benefit from accelerated PPP loan forgiveness; deposit and funding costs continue to decline.

    • Net interest income increased to $161.1 million in the fourth quarter of 2020.
    • The net interest margin on a fully taxable equivalent basis increased 23 basis points to 3.26% compared to 3.03% in the third quarter of 2020.
    • PPP interest and net fees combined were $22.6 million, or 26 basis points of net interest margin, in the fourth quarter of 2020 compared to $8.8 million, or a 5 basis points reduction to the net interest margin, in the third quarter of 2020.
    • Accretion income was $5.4 million, or 10 basis points of net interest margin, in the fourth quarter of 2020 compared to $5.4 million, or 11 basis points of net interest margin, in the third quarter of 2020. In the fourth quarter of 2020, accretion income was 2.4% of adjusted total revenue.
    • Interest collected on nonaccrual loans was $0.9 million, or 2 basis points of net interest margin, in the fourth quarter of 2020 compared to $1.0 million, or 2 basis point of net interest margin, in the third quarter of 2020.
    • The cost of total deposits declined 4 basis points to 0.09% in the fourth quarter of 2020 while the cost of total interest-bearing deposits decreased 6 basis points to 0.13%.

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

    • Old National recorded a provision recapture in the fourth quarter of 2020 of $1.1 million, compared to no provision recorded in the third quarter.
    • Net recoveries in the fourth quarter were $1.1 million, compared to net recoveries of $3.0 million in the third quarter.
    • 30-89 day delinquencies were 0.15% at the end of the fourth quarter.
    • Non-performing loans increased as a percentage of total loans to 1.20%.
    • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of December 31, 2020, the remaining discount on these acquired loans was $50.6 million.
    • The allowance for credit losses remained unchanged at $131.4 million, or 0.95% of total loans at December 31, 2020.

    NONINTEREST INCOME
    Noninterest income decreased due to lower securities gains and a seasonal decline in mortgage banking revenue.

    • Total noninterest income for the fourth quarter of 2020 was $58.5 million, a decrease of $6.2 million from the third quarter of 2020.
    • Mortgage banking revenue decreased $1.9 million when compared to the third quarter of 2020.
    • Gains on sales of debt securities decreased $4.8 million when compared to the third quarter of 2020.

    NONINTEREST EXPENSE
    Fourth quarter results demonstrate benefit of The ONB Way, helping drive positive operating leverage1.

    • Noninterest expense for the fourth quarter of 2020 was $142.3 million and included $3.6 million in ONB Way charges and $9.9 million in tax credit amortization.
    • Excluding these items, adjusted noninterest expense for the fourth quarter was $128.8 million, compared to the $114.2 million in adjusted noninterest expense in the third quarter of 2020.
    • The fourth quarter of 2020 also included $8.1 million in additional incentive compensation which is included in adjusted noninterest expense defined above.
    • The fourth quarter efficiency ratio was 62.37%, while the adjusted efficiency ratio was 56.35%.
    • Adjusted operating leverage1 was +917 basis points for the fourth quarter of 2020 as compared to the fourth quarter of 2019.

    INCOME TAXES

    • On a fully taxable-equivalent basis, income tax expense in the fourth quarter was $7.8 million, resulting in a 9.5% FTE tax rate.
    • Income tax expense included $13.6 million in tax credit benefit.

    CAPITAL AND LIQUIDITY
    Capital ratios remain strong.

    • At the end of the fourth quarter, preliminary total risk-based capital was 12.69% and preliminary regulatory tier 1 capital was 11.75%.
    • Tangible common equity to tangible assets was 8.64% at the end of the fourth quarter compared to 8.58% in the third quarter of 2020.
    • The Company did not repurchase any shares of common stock during the fourth quarter.
    • A low loan to deposit ratio of 81.3%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.

    NON-GAAP RECONCILIATIONS

    ($ in millions, except EPS, shares in 000s)4Q20Adjustments4Adjusted 4Q20
    Total Revenues (FTE)$223.1  $(0.3) $222.8  
    Less: Provision for Credit Losses1.1  —  1.1  
    Less: Noninterest Expenses(142.3) 3.6  (138.7) 
    Income before Income Taxes (FTE)$81.9  $3.3  $85.2  
    Income Taxes(7.8) (0.8) (8.6) 
    Net Income$74.1  $2.5  $76.6  
    Average Shares Outstanding165,631  —  165,631  
    Earnings Per Share - Diluted$0.44  $0.02  $0.46  

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

    ($ in millions, except EPS, shares in 000s)2020Adjustments4Adjusted 2020
    Total Revenues (FTE)$848.9  $(10.8) $838.1  
    Less: Provision for Credit Losses(38.4) —  (38.4) 
    Less: Noninterest Expenses(541.4) 42.6  (498.8) 
    Income before Income Taxes (FTE)$269.1  $31.8  $300.9  
    Income Taxes(42.7) (7.9) (50.6) 
    Net Income$226.4  $23.9  $250.3  
    Average Shares Outstanding166,177  —  166,177  
    Earnings Per Share - Diluted$1.36  $0.14  $1.50  

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

    ($ in millions)4Q203Q20
    Net Interest Income$161.1 $145.6 
    Add: FTE Adjustment3.5 3.4 
    Net Interest Income (FTE)$164.6 $149.0 
    Average Earning Assets$20,182.0 $19,654.3 
    Net Interest Margin (FTE)3.26%3.03%


    ($ in millions)4Q204Q19
    Net Interest Income$161.1  $148.9  
    Add: FTE Adjustment3.5  3.3  
    Net Interest Income (FTE)$164.6  $152.2  
    Add: Total Noninterest Income58.5  47.7  
    Less: Noninterest Expense142.3  134.7  
    Pre-Provision Net Revenue$80.8  $65.2  
    Less: Debt Securities Gains(0.2) (0.4) 
    Less: Gain on Branch Actions(0.1) —  
    Add: ONB Way Charges3.6  8.2  
    Add: Merger and Integration Charges—  0.2  
    Add: Amortization of Tax Credit Investments9.9  0.7  
    Adjusted Pre-Provision Net Revenue$94.0  $73.9  


    ($ in millions)4Q203Q204Q1920202019
    Noninterest Expense$142.3  $120.2  $134.7  $541.4  $508.5  
    Less: ONB Way Charges(3.6) (2.9) (8.2) (42.6) (11.4) 
    Less: Merger and Integration Charges—  —  (0.2) —  (6.0) 
    Noninterest Expense less Charges$138.7  $117.3  $126.3  $498.8  $491.1  
    Less: Amortization of Tax Credit Investments(9.9) (3.1) (0.7) (18.8) (2.7) 
    Adjusted Noninterest Expense$128.8  $114.2  $125.6  $480.0  $488.4  
    Less: Intangible Amortization(3.3) (3.4) (3.9) (14.1) (16.9) 
    Adjusted Noninterest Expense Less Intangible Amortization$125.5  $110.8  $121.7  $465.9  $471.5  
    Net Interest Income$161.1  $145.6  $148.9  $596.1  $604.3  
    FTE Adjustment3.5  3.4  3.3  13.6  12.9  
    Net Interest Income (FTE)$164.6  $149.0  $152.2  $609.7  $617.2  
    Total Noninterest Income58.5  64.7  47.7  239.2  199.3  
    Total Revenue (FTE)$223.1  $213.7  $199.9  $848.9  $816.5  
    Less: Debt Securities Gains/Losses(0.2) (4.9) (0.4) (10.8) (1.9) 
    Less: Gain on Branch Actions(0.1) —  —  —  —  
    Adjusted Total Revenue (FTE)$222.8  $208.8  $199.5  $838.1  $814.6  
    Efficiency Ratio62.37 %55.93 %65.57 %62.91 %60.35 %
    Adjusted Efficiency Ratio56.35 %53.06 %60.97 %55.59 %57.87 %
    Operating Leverage5 (basis points)598    (251)  
    Adjusted Operating Leverage6 (basis points)917    460   

    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)4Q203Q20
    Net Income$74.1  $77.9  
    Add: Intangible Amortization (net of tax7)2.4  2.6  
    Tangible Net Income$76.5  $80.5  
    Less: Securities Gains/Losses (net of tax7)(0.2) (3.7) 
    Add: Loss on Branch Actions (net of tax7)(0.1) —  
    Add: ONB Way Charges (net of tax7)2.7  2.2  
    Adjusted Tangible Net Income$78.9  $79.0  
    Average Total Shareholders’ Equity2,932.6  2,889.5  
    Less: Average Goodwill(1,037.0) (1,037.0) 
    Less: Average Intangibles(47.5) (50.9) 
    Average Tangible Shareholders’ Equity$1,848.1  $1,801.6  
    Return on Average Tangible Common Equity16.57 %17.88 %
    Adjusted Return on Average Tangible Common Equity17.08 %17.54 %

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

    CONFERENCE CALL AND WEBCAST
    Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, January 19, 2021, to review fourth-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 Noon Central Time on January 19 through February 2. To access the replay, dial 1-855-859-2056, Conference ID Code 6389837.

    ABOUT OLD NATIONAL
    Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $23.0 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, Minnesota and Wisconsin. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.

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

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



    Financial Highlights (unaudited)
    ($ and shares in thousands, except per share data)
           
     Three Months Ended Twelve Months Ended
     December 31,September 30,December 31, December 31,December 31,
     202020202019 20202019
    Income Statement      
    Net interest income$161,079  $145,573  $148,899  $596,094 $604,273 
    Tax equivalent adjustment (1)3,517  3,379  3,282  13,586 12,940 
    Net interest income - tax equivalent basis164,596  148,952  152,181  609,680 617,213 
    Provision for loan losses (4)(1,100) —  1,264  38,395 4,747 
    Noninterest income58,552  64,759  47,726  239,274 199,317 
    Noninterest expense142,318  120,234  134,743  541,417 508,487 
    Net income74,120  77,944  49,185  226,409 238,206 
           
           
    Per Common Share Data      
    Weighted average diluted shares165,631  165,419  170,186  166,177 172,687 
    Net income (diluted)$0.44  $0.47  $0.29  $1.36 $1.38 
    Cash dividends0.14  0.14  0.13  0.56 0.52 
    Common dividend payout ratio (2)31 %30 %45% 41%37%
    Book value$17.98  $17.67  $16.82  $17.98 $16.82 
    Stock price16.56  12.56  18.29  16.56 18.29 
    Tangible common book value (3)11.43  11.10  10.35  11.43 10.35 
           
           
    Performance Ratios      
    Return on average assets1.30 %1.40 %0.97% 1.04%1.19%
    Return on average common equity10.11 %10.79 %6.94% 7.87%8.57%
    Return on tangible common equity (3)16.20 %17.56 %11.89% 12.54%14.30%
    Return on average tangible common equity (3)16.57 %17.88 %12.03% 13.27%14.97%
    Net interest margin (FTE)3.26 %3.03 %3.46% 3.18%3.55%
    Efficiency ratio (5)62.37 %55.93 %65.57% 62.91%60.35%
    Net charge-offs (recoveries) to average loans(0.03)%(0.09)%0.12% 0.02%0.05%
    Allowance for loan losses to ending loans (4)0.95 %0.95 %0.45% 0.95%0.45%
    Non-performing loans to ending loans1.20 %1.15 %1.19% 1.20%1.19%
           
           
    Balance Sheet (EOP)      
    Total loans$13,786,479  $13,892,509  $12,117,524  $13,786,479 $12,117,524 
    Total assets 22,960,622   22,460,476   20,411,667   22,960,622  20,411,667 
    Total deposits 17,037,453   16,506,494   14,553,397   17,037,453  14,553,397 
    Total borrowed funds 2,676,554   2,725,731   2,744,728   2,676,554  2,744,728 
    Total shareholders' equity 2,972,656   2,921,149   2,852,453   2,972,656  2,852,453 
           
           
    Capital Ratios (3)      
    Risk-based capital ratios (EOP):      
    Tier 1 common equity11.75 %11.84 %12.13% 11.75%12.13%
    Tier 111.75 %11.84 %12.13% 11.75%12.13%
    Total12.69 %12.81 %12.99% 12.69%12.99%
    Leverage ratio (to average assets)8.20 %8.15 %8.88% 8.20%8.88%
           
    Total equity to assets (averages)12.83 %12.97 %14.01% 13.20%13.88%
    Tangible common equity to tangible assets8.64 %8.58 %9.09% 8.64%9.09%
           
           
    Nonfinancial Data      
    Full-time equivalent employees 2,445   2,484   2,709   2,445  2,709 
    Banking centers 162   162   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. December 31, 2020 capital ratios are preliminary.
    (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 balancesN/A - Not applicable




    Income Statement (unaudited)
    ($ and shares in thousands, except per share data)
           
     Three Months Ended Twelve Months Ended
     December 31,September 30,December 31, December 31,December 31,
     202020202019 20202019
    Interest income$173,249  $160,086 $176,553  $663,308 $730,387 
    Less: interest expense12,170  14,513 27,654  67,214 126,114 
    Net interest income161,079  145,573 148,899  596,094 604,273 
    Provision for loan losses (1)(1,100) — 1,264  38,395 4,747 
    Net interest income after provision for loan losses162,179  145,573 147,635  557,699 599,526 
           
    Wealth management fees9,259  9,239 9,468  36,806 37,072 
    Service charges on deposit accounts8,724  8,698 10,714  35,081 44,915 
    Debit card and ATM fees5,072  5,276 5,360  20,178 21,652 
    Mortgage banking revenue16,233  18,110 5,626  62,775 26,622 
    Investment product fees5,544  5,351 5,679  21,614 21,785 
    Capital markets income6,545  5,428 3,043  22,480 13,270 
    Company-owned life insurance3,153  2,830 2,937  12,031 11,539 
    Other income3,861  4,906 4,462  17,542 20,539 
    Gains (losses) on sales of debt securities161  4,921 437  10,767 1,923 
    Total noninterest income58,552  64,759 47,726  239,274 199,317 
           
    Salaries and employee benefits78,001  69,860 74,974  293,590 289,452 
    Occupancy13,008  13,930 14,184  55,316 55,255 
    Equipment3,778  3,754 3,958  16,690 16,903 
    Marketing3,242  2,140 3,631  10,874 15,898 
    Data processing12,362  9,628 9,080  41,086 37,589 
    Communication2,396  2,241 2,450  9,731 10,702 
    Professional fees4,834  3,083 9,986  15,755 22,854 
    FDIC assessment1,780  1,319 1,529  6,722 6,030 
    Amortization of intangibles3,244  3,459 3,946  14,091 16,911 
    Amortization of tax credit investments9,871  3,115 710  18,788 2,749 
    Other expense9,802  7,705 10,295  58,774 34,144 
    Total noninterest expense142,318  120,234 134,743  541,417 508,487 
           
    Income before income taxes78,413  90,098 60,618  255,556 290,356 
    Income tax expense4,293  12,154 11,433  29,147 52,150 
    Net income$74,120  $77,944 $49,185  $226,409 $238,206 
           
    Diluted Earnings Per Share       
    Net income$0.44  $0.47 $0.29  $1.36 $1.38 
           
    Average Common Shares Outstanding      
    Basic 164,799   164,773  169,235   165,509  171,907 
    Diluted 165,631   165,419  170,186   166,177  172,687 
                      
    Common shares outstanding at end of period 165,367   165,333  169,616   165,367  169,616 
           
    (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)
     December 31, September 30, December 31,
     2020 2020 2019
    Assets     
    Federal Reserve Bank account$307,967   $87,682   $29,141  
    Money market investments13,537   13,437   12,430  
    Investments:     
    Treasury and government-sponsored agencies852,196   501,771   610,666  
    Mortgage-backed securities3,339,098   3,382,280   3,183,861  
    States and political subdivisions1,492,162   1,426,495   1,275,643  
    Other securities458,639   462,958   485,862  
    Total investments6,142,095   5,773,504   5,556,032  
    Loans held for sale, at fair value63,250   85,091   46,898  
    Loans:     
    Commercial3,956,422   4,264,568   2,890,296  
    Commercial and agriculture real estate5,946,512   5,701,493   5,166,792  
    Consumer:     
    Home equity556,414   549,115   559,021  
    Other consumer loans1,078,709   1,112,034   1,167,126  
    Subtotal of commercial and consumer loans11,538,057   11,627,210   9,783,235  
    Residential real estate2,248,422   2,265,299   2,334,289  
    Total loans13,786,479   13,892,509   12,117,524  
       Total earning assets20,313,328   19,852,223   17,762,025  
          
    Allowance for loan losses (1)(131,388)  (131,388)  (54,619) 
    Non-earning Assets:     
    Cash and due from banks268,208   229,631   234,766  
    Premises and equipment, net464,408   463,253   490,925  
    Operating lease right-of-use assets76,197   77,482   95,477  
    Goodwill and other intangible assets1,083,008   1,086,252   1,097,099  
    Company-owned life insurance456,110   455,975   448,967  
    Other assets430,751   427,048   337,027  
    Total non-earning assets2,778,682   2,739,641   2,704,261  
       Total assets$22,960,622   $22,460,476   $20,411,667  
          
    Liabilities and Equity     
    Noninterest-bearing demand deposits$5,633,672   $5,463,007   $4,042,286  
    Interest-bearing:     
    Checking and NOW accounts4,877,046   4,588,432   4,149,639  
    Savings accounts3,395,747   3,287,302   2,845,423  
    Money market accounts1,908,118   1,904,404   1,833,819  
    Other time deposits1,103,313   1,206,658   1,589,988  
       Total core deposits16,917,896   16,449,803   14,461,155  
    Brokered deposits119,557   56,691   92,242  
       Total deposits17,037,453   16,506,494   14,553,397  
          
    Federal funds purchased and interbank borrowings1,166   1,259   350,414  
    Securities sold under agreements to repurchase431,166   399,141   327,782  
    Federal Home Loan Bank advances1,991,435   2,087,648   1,822,847  
    Other borrowings252,787   237,683   243,685  
    Total borrowed funds2,676,554   2,725,731   2,744,728  
    Operating lease liabilities86,598   88,552   99,500  
    Accrued expenses and other liabilities187,361   218,550   161,589  
    Total liabilities19,987,966   19,539,327   17,559,214  
    Common stock, surplus, and retained earnings2,824,885   2,771,865   2,796,246  
    Accumulated other comprehensive income (loss), net of tax147,771   149,284   56,207  
    Total shareholders' equity2,972,656   2,921,149   2,852,453  
       Total liabilities and shareholders' equity$22,960,622   $22,460,476   $20,411,667  
     
    (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
      December 31, 2020 September 30, 2020 December 31, 2019
      AverageIncome(1)/Yield/ AverageIncome(1)/Yield/ AverageIncome(1)/Yield/
    Earning Assets: BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate
    Money market and other interest-earning investments $413,782 $126 0.12% $137,880 $59 0.17% $87,835 $530 2.39%
    Investments:            
    Treasury and government-sponsored agencies 648,314 2,937 1.81% 454,005 2,457 2.17% 546,266 3,547 2.60%
    Mortgage-backed securities 3,291,436 16,137 1.96% 3,342,284 17,478 2.09% 3,172,818 18,844 2.38%
    States and political subdivisions 1,437,890 12,008 3.34% 1,383,765 11,860 3.43% 1,211,850 11,133 3.67%
    Other securities 462,836 2,629 2.27% 487,405 2,922 2.40% 489,889 3,585 2.93%
    Total investments 5,840,476 33,711 2.31% 5,667,459 34,717 2.45% 5,420,823 37,109 2.74%
    Loans: (2)            
    Commercial 4,132,831 46,468 4.40% 4,274,894 33,223 3.04% 2,891,641 31,925 4.32%
    Commercial and agriculture real estate 5,829,912 58,334 3.92% 5,546,486 55,891 3.94% 5,129,638 66,959 5.11%
    Consumer:            
    Home equity 550,548 4,380 3.17% 551,380 4,336 3.13% 561,125 6,426 4.54%
    Other consumer loans 1,099,504 11,276 4.08% 1,120,681 11,635 4.13% 1,153,924 12,245 4.21%
    Subtotal commercial and consumer loans 11,612,795 120,458 4.13% 11,493,441 105,085 3.64% 9,736,328 117,555 4.79%
    Residential real estate loans 2,314,938 22,471 3.88% 2,355,512 23,604 4.01% 2,332,835 24,641 4.23%
                 
    Total loans 13,927,733 142,929 4.04% 13,848,953 128,689 3.66% 12,069,163 142,196 4.64%
                 
    Total earning assets $20,181,991 $176,766 3.46% $19,654,292 $163,465 3.29% $17,577,821 $179,835 4.05%
                 
    Less: Allowance for loan losses (3) (137,539)   (132,447)   (57,162)  
                 
    Non-earning Assets:            
    Cash and due from banks $341,154    $346,343    $278,324   
    Other assets 2,479,253    2,405,517    2,419,792   
                 
    Total assets $22,864,859    $22,273,705    $20,218,775   
                 
    Interest-Bearing Liabilities:            
    Checking and NOW accounts $4,708,568 $629 0.05% $4,607,427 $886 0.08% $4,121,021 $3,812 0.37%
    Savings accounts 3,329,494 487 0.06% 3,232,375 634 0.08% 2,842,996 1,586 0.22%
    Money market accounts 1,932,594 445 0.09% 1,902,407 724 0.15% 1,839,258 3,558 0.77%
    Other time deposits 1,158,715 2,189 0.75% 1,253,058 2,852 0.91% 1,642,773 6,101 1.47%
    Total interest-bearing core deposits 11,129,371 3,750 0.13% 10,995,267 5,096 0.18% 10,446,048 15,057 0.57%
    Brokered deposits 37,176 26 0.28% 150,545 201 0.53% 109,504 637 2.31%
    Total interest-bearing deposits 11,166,547 3,776 0.13% 11,145,812 5,297 0.19% 10,555,552 15,694 0.59%
                 
    Federal funds purchased and interbank borrowings 843 — 0.03% 18,347 12 0.25% 95,973 437 1.80%
    Securities sold under agreements to repurchase 438,272 125 0.11% 385,149 160 0.16% 337,786 469 0.55%
    Federal Home Loan Bank advances 2,089,519 5,953 1.13% 2,021,468 6,709 1.32% 1,843,357 8,359 1.80%
    Other borrowings 240,815 2,316 3.85% 237,811 2,335 3.93% 251,565 2,695 4.29%
    Total borrowed funds 2,769,449 8,394 1.21% 2,662,775 9,216 1.38% 2,528,681 11,960 1.88%
                 
    Total interest-bearing liabilities 13,935,996 12,170 0.35% 13,808,587 14,513 0.42% 13,084,233 27,654 0.84%
                 
    Noninterest-Bearing Liabilities and Shareholders' Equity            
    Demand deposits $5,644,017    $5,291,037    $4,047,308   
    Other liabilities 352,256    284,536    254,296   
    Shareholders' equity 2,932,590    2,889,545    2,832,938   
                 
    Total liabilities and shareholders' equity $22,864,859    $22,273,705    $20,218,775   
                 
    Net interest rate spread   3.11%   2.87%   3.21%
                 
    Net interest margin (FTE)   3.26%   3.03%   3.46%
                 
    FTE adjustment  $3,517    $3,379    $3,282  
                 
    (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)
             
      Twelve Months Ended Twelve Months Ended
      December 31, 2020 December 31, 2019
      AverageIncome (1)/Yield/ AverageIncome (1)/Yield/
    Earning Assets: BalanceExpenseRate BalanceExpenseRate
    Money market and other interest-earning investments $174,494  $568 0.33% $67,069  $1,670 2.49%
    Investments:        
    Treasury and government-sponsored agencies 547,054  12,124 2.22% 657,233  16,091 2.45%
    Mortgage-backed securities 3,246,520  70,611 2.17% 2,866,600  73,835 2.58%
    States and political subdivisions 1,347,490  47,034 3.49% 1,202,210  44,716 3.72%
    Other securities 485,430  11,990 2.47% 495,847  16,138 3.25%
    Total investments $5,626,494  $141,759 2.52% $5,221,890  $150,780 2.89%
    Loans: (2)        
    Commercial 3,843,089  140,473 3.66% 3,023,421  141,215 4.67%
    Commercial and agriculture real estate 5,477,562  234,670 4.28% 5,044,623  275,853 5.47%
    Consumer:        
    Home equity 553,570  18,561 3.35% 566,232  28,515 5.04%
    Other consumer loans 1,131,028  46,661 4.13% 1,180,898  48,681 4.12%
    Subtotal commercial and consumer loans 11,005,249  440,365 4.00% 9,815,174  494,264 5.04%
    Residential real estate loans 2,352,444  94,202 4.00% 2,281,047  96,613 4.24%
             
    Total loans 13,357,693  534,567 4.00% 12,096,221  590,877 4.88%
             
    Total earning assets $19,158,681  $676,894 3.53% $17,385,180  $743,327 4.28%
             
    Less: Allowance for loan losses (3) (115,321)    (56,624)   
             
    Non-earning Assets:        
    Cash and due from banks $327,053     $251,857    
    Other assets 2,414,602     2,453,001    
             
    Total assets $21,785,015     $20,033,414    
             
    Interest-Bearing Liabilities:        
    Checking and NOW accounts $4,464,027  $5,449 0.12% $3,902,765  $15,598 0.40%
    Savings accounts 3,113,435  3,156 0.10% 2,878,135  8,142 0.28%
    Money market accounts 1,866,196  4,585 0.25% 1,789,065  14,130 0.79%
    Other time deposits 1,337,269  14,013 1.05% 1,748,552  27,400 1.57%
    Total interest-bearing core deposits 10,780,927  27,203 0.25% 10,318,517  65,270 0.63%
    Brokered deposits 85,041  966 1.14% 173,439  4,094 2.36%
    Total interest-bearing deposits 10,865,968  28,169 0.26% 10,491,956  69,364 0.66%
             
    Federal funds purchased and interbank borrowings 138,257  1,296 0.94% 241,618  5,656 2.34%
    Securities sold under agreements to repurchase 375,961  854 0.23% 342,654  2,517 0.73%
    Federal Home Loan Bank advances 2,055,155  27,274 1.33% 1,775,987  37,452 2.11%
    Other borrowings 242,642  9,621 3.96% 251,194  11,125 4.43%
    Total borrowed funds 2,812,015  39,045 1.39% 2,611,453  56,750 2.17%
             
    Total interest-bearing liabilities 13,677,983  67,214 0.49% 13,103,409  126,114 0.96%
             
    Noninterest-Bearing Liabilities and Shareholders' Equity        
    Demand deposits $4,945,506     $3,887,470    
    Other liabilities 286,066     261,403    
    Shareholders' equity 2,875,460     2,781,132    
             
    Total liabilities and shareholders' equity $21,785,015     $20,033,414    
             
    Net interest rate spread   3.04%   3.32%
             
    Net interest margin (FTE)   3.18%   3.55%
             
    FTE adjustment  $13,586    $12,940  
             
    (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 Twelve Months Ended
     December 31,September 30,December 31, December 31,December 31,
     202020202019 20202019
           
    Beginning allowance for loan losses$131,388  $128,394  $56,910   $54,619  $55,461  
    Impact of adopting ASC 326 on 1/1/2020 (1)—  —   N/A   41,347   N/A  
           
    Provision for loan losses (1)(1,100) —  1,264   38,395  4,747  
           
    Gross charge-offs(707) (4,169) (6,304)  (15,553) (14,789) 
    Gross recoveries1,807  7,163  2,749   12,580  9,200  
    Net (charge-offs) recoveries1,100  2,994  (3,555)  (2,973) (5,589) 
           
    Ending allowance for loan losses (1)$131,388  $131,388  $54,619   $131,388  $54,619  
           
    Net charge-offs (recoveries) / average loans (2)(0.03)%(0.09)%0.12 % 0.02 %0.05 %
           
    Average loans outstanding (2)$13,910,145  $13,827,019  $12,058,109   $13,341,677  $12,087,429  
           
    EOP loans outstanding (2)13,786,479  13,892,509  12,117,524   13,786,479  12,117,524  
           
    Allowance for loan losses / EOP loans (1)(2)0.95 %0.95 %0.45 % 0.95 %0.45 %
           
    Underperforming Assets:      
    Loans 90 Days and over (still accruing)$167  $90  $570   $167  $570  
           
    Non-performing loans:      
    Nonaccrual loans (3)147,339  137,611  126,412   147,339  126,412  
    TDRs still accruing17,749  22,037  18,338   17,749  18,338  
    Total non-performing loans165,088  159,648  144,750   165,088  144,750  
           
    Foreclosed properties1,324  1,248  2,169   1,324  2,169  
           
    Total underperforming assets$166,579  $160,986  $147,489   $166,579  $147,489  
           
    Classified and Criticized Assets:      
    Nonaccrual loans (3)147,339  137,611  126,412   147,339  126,412  
    Substandard accruing loans157,276  189,524  169,689   157,276  169,689  
    Loans 90 days and over (still accruing)167  90  570   167  570  
    Total classified loans - "problem loans"$304,782  $327,225  $296,671   $304,782  $296,671  
           
    Other classified assets3,706  3,860  2,933   3,706  2,933  
    Criticized loans - "special mention loans"287,192  272,859  234,841   287,192  234,841  
           
    Total classified and criticized assets$595,680  $603,944  $534,445   $595,680  $534,445  
           
    Non-performing loans / EOP loans (2)1.20 %1.15 %1.19 % 1.20 %1.19 %
           
    Allowance to non-performing loans (1)(4)80 %82 %38 % 80 %38 %
           
    Under-performing assets / EOP loans (2)1.21 %1.16 %1.22 % 1.21 %1.22 %
           
    EOP total assets$22,960,622  $22,460,476  $20,411,667   $22,960,622  $20,411,667  
           
    Under-performing assets / EOP assets0.73 %0.72 %0.72 % 0.73 %0.72 %
           
    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 non-accruing TDRs totaling $14.9 million at December 31, 2020, $7.7 million at September 30, 2020, and $13.8 million at December 31, 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 Twelve Months Ended
     December 31,September 30,December 31, December 31,December 31,
     202020202019 20202019
    Actual End of Period Balances      
    GAAP shareholders' equity$2,972,656 $2,921,149 $2,852,453  $2,972,656 $2,852,453 
           
    Deduct:      
    Goodwill 1,036,994  1,036,994  1,036,994   1,036,994  1,036,994 
    Intangibles 46,014  49,258  60,105   46,014  60,105 
      1,083,008  1,086,252  1,097,099   1,083,008  1,097,099 
           
    Tangible shareholders' equity $1,889,648 $1,834,897 $1,755,354  $1,889,648 $1,755,354 
           
    Average Balances      
    GAAP shareholders' equity$2,932,590 $2,889,545 $2,832,938  $2,875,460 $2,781,132 
           
    Deduct:      
    Goodwill 1,036,994  1,036,994  1,036,994   1,036,994  1,036,456 
    Intangibles 47,536  50,926  61,963   52,740  68,244 
      1,084,530  1,087,920  1,098,957   1,089,734  1,104,700 
           
    Average tangible shareholders' equity $1,848,060 $1,801,625 $1,733,981  $1,785,726 $1,676,432 
           
    Actual End of Period Balances      
    GAAP assets$22,960,622 $22,460,476 $20,411,667  $22,960,622 $20,411,667 
           
    Add:      
    Trust overdrafts 26  17  31   26  31 
           
    Deduct:      
    Goodwill 1,036,994  1,036,994  1,036,994   1,036,994  1,036,994 
    Intangibles 46,014  49,258  60,105   46,014  60,105 
      1,083,008  1,086,252  1,097,099   1,083,008  1,097,099 
           
    Tangible assets $21,877,640 $21,374,241 $19,314,599  $21,877,640 $19,314,599 
           
    Risk-weighted assets (2)$15,369,076 $14,770,750 $14,073,929  $15,369,076 $14,073,929 
           
    GAAP net income$74,120 $77,944 $49,185  $226,409 $238,206 
           
    Add:      
    Amortization of intangibles (net of tax) 2,433  2,595  2,976   10,585  12,756 
           
    Tangible net income$76,553 $80,539 $52,161  $236,994 $250,962 
           
    Tangible Ratios       
    Return on tangible common equity 16.20% 17.56% 11.89%  12.54% 14.30%
    Return on average tangible common equity 16.57% 17.88% 12.03%  13.27% 14.97%
    Return on tangible assets 1.40% 1.51% 1.08%  1.08% 1.30%
    Tangible common equity to tangible assets 8.64% 8.58% 9.09%  8.64% 9.09%
    Tangible common equity to risk-weighted assets (2) 12.30% 12.42% 12.47%  12.30% 12.47%
    Tangible common book value (1) 11.43  11.10  10.35   11.43  10.35 
           
    Tangible common equity presentation includes other comprehensive income as is common in other company releases.
    (1) Tangible common shareholders' equity divided by common shares issued and outstanding at period-end.
           
    Tier 1 common equity (2)$1,805,194 $1,748,150 $1,706,727  $1,805,194 $1,706,727 
           
    Risk-weighted assets (2) 15,369,076  14,770,750  14,073,929   15,369,076  14,073,929 
           
    Tier 1 common equity to risk-weighted assets (2) 11.75% 11.84% 12.13%  11.75% 12.13%
           
    (2) December 31, 2020 figures are preliminary.      


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


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