EVANSVILLE, Ind., July 23, 2024 (GLOBE NEWSWIRE)
--
Old National Bancorp (NASDAQ: ONB)
reports 2Q24 net income applicable to common shares of $117.2
million, diluted EPS of $0.37; $144.1 million and $0.46 on an
adjusted1 basis, respectively.
CEO COMMENTARY:
"Old National’s second quarter results exceeded expectations due to
better than expected revenue growth and lower expenses," said
Chairman and CEO Jim Ryan. "We achieved these outstanding results
while also successfully closing on our CapStar Bank partnership and
working to complete the associated systems integration. As a
result, Old National has meaningfully increased our presence in
Nashville, Tenn., while expanding our operations into several other
vibrant Southeastern markets." |
|
|
SECOND QUARTER
HIGHLIGHTS2:
Net Income
|
- Net income
applicable to common shares of $117.2 million; adjusted net income
applicable to common shares1 of $144.1 million
|
- Earnings per
diluted common share ("EPS") of $0.37; adjusted EPS1 of
$0.46
|
|
|
Net Interest
Income/NIM
|
- Net interest
income on a fully taxable equivalent basis1 of $394.8
million
|
- Net interest
margin on a fully taxable equivalent basis1 ("NIM") of
3.33%, up 5 basis points ("bps")
|
|
|
Operating
Performance
|
- Pre-provision
net revenue1 (“PPNR”) of $199.0 million; adjusted
PPNR1 of $218.5 million
|
- Noninterest
expense of $283.0 million; adjusted noninterest expense1
of $263.6 million
|
- Efficiency
ratio1 of 57.2%; adjusted efficiency ratio1
of 52.6%
|
|
|
Deposits and
Funding
|
- Period-end total deposits of $40.0
billion, up $2.3 billion; core deposits up $1.7 billion
- Period-end total deposits up 2.4%
annualized excluding CapStar Financial Holdings, Inc.
("CapStar")
|
- Granular
low-cost deposit franchise; total deposit costs of 216 bps and a
cycle to date (2Q22-2Q24) total deposit beta of 41%
(interest-bearing deposit beta of 53%)
|
|
|
Loans and
Credit Quality
|
- End-of-period total
loans3 of $36.2 billion, up $2.6 billion
- End-of-period total
loans3 up 5.9% annualized excluding CapStar
|
- Provision for
credit losses4 ("provision") of $36.2 million;
$20.9 million excluding $15.3 million of current expected credit
loss ("CECL") Day 1 non-purchased credit deteriorated ("non-PCD")
provision expense5
|
- Net charge-offs
of $14.0 million, or 16 bps of average loans; 11 bps excluding
purchased credit deteriorated ("PCD") loans that had an allowance
at acquisition
|
Return Profile &
Capital |
- 30+ day
delinquencies of 0.16% and non-performing loans of 0.94% of total
loans
|
|
- Return on average tangible common equity1 of 14.1%;
adjusted return on average tangible common equity1 of
17.2%
|
|
|
Notable Items |
- Closing of CapStar partnership on April 1, 2024
- $19.4 million of pre-tax merger-related charges
- $15.3 million of pre-tax CECL Day 1 non-PCD provision
expense5
|
1 Non-GAAP financial measure that
management believes is useful in evaluating the financial results
of the Company – 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
4 Includes the provision for unfunded
commitments 5 Refers to the
initial increase in allowance for credit losses required on
acquired non-PCD loans through the provision for credit
losses |
|
|
RESULTS OF
OPERATIONS2
Old National Bancorp ("Old National") reported second quarter 2024
net income applicable to common shares of $117.2 million, or
$0.37 per diluted common share.
Included in second quarter results were pre-tax charges of
$19.4 million primarily related to the April 1, 2024
acquisition of CapStar Financial Holdings, Inc. ("CapStar") and
$15.3 million of pre-tax CECL Day 1 non-PCD provision expense
related to the allowance for credit losses established on acquired
non-PCD loans. Excluding these transactions and realized debt
securities gains from the current quarter, adjusted net
income1 was $144.1 million, or $0.46 per diluted
common share.
DEPOSITS AND FUNDING
Growth in deposits driven by CapStar including seasonal
outflows of commercial and retail deposits offset by public fund
and brokered deposits increases.
- Period-end total deposits were $40.0 billion, up
$2.3 billion; core deposits up $1.7 billion; includes
$2.1 billion of end of period deposits assumed in the CapStar
transaction.
- Excluding deposits assumed in the CapStar transaction,
period-end total deposits were up 2.4% annualized.
- On average, total deposits for the second quarter were
$40.1 billion, up $3.0 billion.
- Granular low-cost deposit franchise; total deposit costs of 216
bps and a cycle to date total deposit beta of 41% (interest-bearing
deposit beta of 53%).
- A loan to deposit ratio of 91%, combined with existing funding
sources, provides strong liquidity.
LOANS
Broad-based disciplined commercial loan growth.
- Period-end total loans3 were $36.2 billion, up
$2.6 billion; includes $2.1 billion of period end loans
acquired in the CapStar transaction.
- Excluding loans acquired in the CapStar transaction, period-end
total loans3 were up 5.9% annualized.
- Total commercial loan production in the second quarter was $1.5
billion; period-end commercial pipeline totaled
$3.4 billion.
- Average total loans in the second quarter were $36.1 billion,
an increase of $2.8 billion.
CREDIT QUALITY
Strong credit quality continues to be a hallmark of Old
National.
- Provision4 expense was $36.2 million, $20.9
million excluding $15.3 million of CECL Day 1 non-PCD
provision expense related to the allowance for credit losses
established on acquired non-PCD loans in the CapStar transaction,
compared to $18.9 million, reflecting net charge-offs and loan
growth, as well as economic factors.
- Net charge-offs were $14.0 million, or 16 bps of average loans
compared to net charge-offs of 14 bps of average loans.
- Excluding PCD loans that had an allowance for credit losses
established at acquisition, net charge-offs to average loans were
11 bps.
- 30+ day delinquencies as a percentage of loans were consistent
at 0.16%.
- Nonaccrual loans as a percentage of total loans were 0.94%
compared to 0.98%.
- Loans acquired from previous acquisitions were recorded at fair
value at the acquisition date. The remaining discount on these
acquired loans was $190.0 million, of which $119.0 million related
to CapStar.
- The allowance for credit losses, including the allowance for
credit losses on unfunded commitments, stood at $392.1 million, or
1.08% of total loans, compared to $346.0 million, or 1.03% of total
loans, reflecting $15.3 million of CECL Day 1 non-PCD
provision expense related to acquired non-PCD loans and $23.9
million of allowance related to acquired PCD loans.
NET INTEREST INCOME AND
MARGIN
Higher net interest income and margin expansion reflective of
CapStar.
- Net interest income on a fully taxable equivalent
basis1 increased to $394.8 million compared to $362.7
million, driven by CapStar, loan growth and higher asset yields,
partly offset by higher funding costs.
- Net interest margin on a fully taxable equivalent
basis1 increased 5 bps to 3.33%.
- Accretion income on loans and borrowings was
$11.6 million, or 10 bps of net interest margin1,
compared to $5.1 million, or 5 bps of net interest
margin1.
- Cost of total deposits was 2.16%, increasing 15 bps and the
cost of total interest-bearing deposits increased 16 bps to
2.84%.
NONINTEREST INCOME
Increase driven by CapStar, wealth fees, mortgage fees and
capital markets income.
- Total noninterest income was $87.3 million compared to $77.5
million.
- CapStar contributed $6.5 million to noninterest income during
the quarter.
- Noninterest income was up 12.6% driven by CapStar revenue as
well as higher wealth fees, mortgage fees and capital markets
income.
NONINTEREST EXPENSE
Higher due to CapStar; disciplined expense management.
- Noninterest expense was $283.0 million and included
$19.4 million of merger-related charges.
- CapStar contributed $17.7 million to noninterest expense during
the quarter.
- Excluding merger-related charges, adjusted noninterest expense
was $263.6 million, compared to $243.1 million; higher due
primarily to operating costs associated with CapStar as well as
technology and professional fees.
- The efficiency ratio1 was 57.2%, while the adjusted
efficiency ratio1 was 52.6% compared to 58.3% and 53.4%,
respectively.
INCOME TAXES
- Income tax expense was $35.3 million, resulting in an effective
tax rate of 22.5% compared to 21.3%. On an adjusted fully taxable
equivalent ("FTE") basis, the effective tax rate was 25.5% compared
to 24.4%.
- Income tax expense included $3.5 million of tax credit
benefit.
CAPITAL
Capital ratios remain strong.
- Preliminary total risk-based capital down 3 bps to 12.71% and
preliminary regulatory Tier 1 capital down 7 bps to 11.33%, as
strong retained earnings were more than offset by the CapStar
transaction and loan growth.
- Tangible common equity to tangible assets was 6.94% compared to
6.86%.
CAPSTAR TRANSACTION
On April 1, 2024, Old National completed its acquisition of
CapStar, and its wholly-owned subsidiary, CapStar Bank. This
partnership strengthens Old National’s Nashville, Tennessee
presence and adds several new high-growth markets. At closing,
CapStar had approximately $3.1 billion of total assets,
$2.1 billion of total loans, and $2.6 billion of
deposits. The consideration paid totaled $417.6 million and
consisted of 24.0 million shares of Old National common stock. All
system conversions related to the transaction were completed in
early July of 2024.
CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00
a.m. Central Time on Tuesday, July 23, 2024, to review second
quarter financial results. The live audio webcast link and
corresponding presentation slides will be available on the
Company’s Investor Relations website at oldnational.com and
will be archived there for 12 months. To listen to the live
conference call, dial U.S. (800) 715-9871 or International (646)
307-1963, access code 2973663. A replay of the call will also be
available from approximately noon Central Time on July 23,
2024 through August 6, 2024. To access the replay, dial U.S.
(800) 770-2030 or International (647) 362-9199; Access code
2973663.
ABOUT OLD NATIONAL
Old National Bancorp
(NASDAQ: ONB) is the holding company of Old National Bank. As the
sixth largest commercial bank headquartered in the Midwest, Old
National proudly serves clients primarily in the Midwest and
Southeast. With approximately $53 billion of assets and $30 billion
of assets under management, Old National ranks among the top 30
banking companies headquartered in the United States. Tracing
our roots to 1834, Old National focuses on building long-term,
highly valued partnerships with clients while also strengthening
and supporting the communities we serve. In addition to providing
extensive services in consumer and commercial banking, Old National
offers comprehensive wealth management and capital markets
services. For more information and financial data, please visit
Investor Relations at oldnational.com. In 2024, Points of Light
named Old National one of "The Civic 50" - an honor reserved for
the 50 most community-minded companies in the United States.
USE OF NON-GAAP FINANCIAL MEASURES
The Company's accounting and reporting policies conform to U.S.
generally accepted accounting principles ("GAAP") and general
practices within the banking industry. As a supplement to GAAP, the
Company provides non-GAAP performance results, which the Company
believes are useful because they assist investors in assessing the
Company's operating performance. 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 at the end of this release.
The Company presents EPS, the efficiency ratio, return on
average common equity, return on average tangible common equity,
and net income applicable to common shares, all adjusted for
certain notable items. These items include merger-related charges
associated with completed and pending acquisitions, CECL Day 1
non-PCD provision expense, debt securities gains/losses,
distribution of excess pension assets expense, FDIC special
assessment expense, gain on sale of Visa Class B restricted shares,
contract termination charges, expenses related to the tragic April
10, 2023 event at our downtown Louisville location ("Louisville
expenses"), and property optimization charges. Management believes
excluding these items from EPS, the efficiency ratio, return on
average common equity, and return on average tangible common equity
may be useful in assessing the Company's underlying operational
performance since these items do not pertain to its core business
operations and their exclusion may facilitate better comparability
between periods. Management believes that excluding merger-related
charges from these metrics may be useful to the Company, as well as
analysts and investors, since these expenses can vary significantly
based on the size, type, and structure of each acquisition.
Additionally, management believes excluding these items from these
metrics may enhance comparability for peer comparison purposes.
Income tax expense, provision for credit losses, and the certain
notable items listed above are excluded from the calculation of
pre-provision net revenues, adjusted due to the fluctuation in
income before income tax and the level of provision for credit
losses required. Management believes pre-provision net revenues,
adjusted may be useful in assessing the Company's underlying
operating performance and their exclusion may facilitate better
comparability between periods and for peer comparison purposes.
The Company presents adjusted noninterest expense, which
excludes merger-related charges associated with completed and
pending acquisitions, distribution of excess pension assets
expense, FDIC special assessment expense, contract termination
charges, Louisville expenses, and property optimization charges, as
well as adjusted noninterest income, which excludes debt securities
gains/losses and the gain on sale of Visa Class B restricted
shares. Management believes that excluding these items from
noninterest expense and noninterest income may be useful in
assessing the Company’s underlying operational performance as these
items either do not pertain to its core business operations or
their exclusion may facilitate better comparability between periods
and for peer comparison purposes.
The tax-equivalent adjustment to net interest income and net
interest margin recognizes the income tax savings when comparing
taxable and tax-exempt assets. Interest income and yields on
tax-exempt securities and loans are presented using the current
federal income tax rate of 21%. Management believes that it is
standard practice in the banking industry to present net interest
income and net interest margin on a fully tax-equivalent basis and
that it may enhance comparability for peer comparison purposes.
In management's view, tangible common equity measures are
capital adequacy metrics that may be meaningful to the Company, as
well as analysts and investors, in assessing the Company's use of
equity and in facilitating comparisons with peers. These non-GAAP
measures are valuable indicators of a financial institution's
capital strength since they eliminate intangible assets from
stockholders' equity and retain the effect of accumulated other
comprehensive loss in stockholders' equity.
Although intended to enhance investors' understanding of the
Company's business and performance, these non-GAAP financial
measures should not be considered an alternative to GAAP. In
addition, these non-GAAP financial measures may differ from those
used by other financial institutions to assess their business and
performance. See the following reconciliations in the "Non-GAAP
Reconciliations" section for details on the calculation of these
measures to the extent presented herein.
FORWARD-LOOKING STATEMENTS
This communication contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 (the “Act”), notwithstanding that such statements are not
specifically identified as such. In addition, certain statements
may be contained in our future filings with the Securities and
Exchange Commission ("SEC"), in press releases, and in oral and
written statements made by us that are not statements of historical
fact and constitute forward‐looking statements within the meaning
of the Act. These statements include, but are not limited to,
descriptions of Old National’s financial condition, results of
operations, asset and credit quality trends, profitability and
business plans or opportunities. Forward-looking statements can be
identified by the use of words such as "anticipate," "believe,"
"contemplate," "continue," "could," "estimate," "expect," "intend,"
"may," "outlook," "plan," "potential," "predict," "should,"
"would," and "will," and other words of similar meaning. These
forward-looking statements express management’s current
expectations or forecasts of future events and, by their nature,
are subject to risks and uncertainties. There are a number of
factors that could cause actual results or outcomes to differ
materially from those in such statements, including, but not
limited to: competition; government legislation, regulations and
policies; the ability of Old National to execute its business plan;
unanticipated changes in our liquidity position, including but not
limited to changes in our access to sources of liquidity and
capital to address our liquidity needs; changes in economic
conditions and economic and business uncertainty which could
materially impact credit quality trends and the ability to generate
loans and gather deposits; inflation and governmental responses to
inflation, including increasing interest rates; market, economic,
operational, liquidity, credit, and interest rate risks associated
with our business; our ability to successfully manage our credit
risk and the sufficiency of our allowance for credit losses; the
expected cost savings, synergies and other financial benefits from
the merger (the “Merger”) between Old National and CapStar
Financial Holdings, Inc. not being realized within the expected
time frames and costs or difficulties relating to integration
matters being greater than expected; potential adverse reactions or
changes to business or employee relationships, including those
resulting from the completion of the Merger; the potential impact
of future business combinations on our performance and financial
condition, including our ability to successfully integrate the
businesses and the success of revenue-generating and cost reduction
initiatives; failure or circumvention of our internal controls;
operational risks or risk management failures by us or critical
third parties, including without limitation with respect to data
processing, information systems, cybersecurity, technological
changes, vendor issues, business interruption, and fraud risks;
significant changes in accounting, tax or regulatory practices or
requirements; new legal obligations or liabilities; disruptive
technologies in payment systems and other services traditionally
provided by banks; failure or disruption of our information
systems; computer hacking and other cybersecurity threats; the
effects of climate change on Old National and its customers,
borrowers, or service providers; political and economic uncertainty
and instability; the impacts of pandemics, epidemics and other
infectious disease outbreaks; other matters discussed in this
communication; and other factors identified in our Annual Report on
Form 10-K for the year ended December 31, 2023 and other filings
with the SEC. These forward-looking statements are made only as of
the date of this communication and are not guarantees of future
results, performance or outcomes, and Old National does not
undertake an obligation to update these forward-looking statements
to reflect events or conditions after the date of this
communication.
CONTACTS: |
|
Media: Kathy Schoettlin |
Investors: Lynell
Durchholz |
(812) 465-7269 |
(812) 464-1366 |
Kathy.Schoettlin@oldnational.com |
Lynell.Durchholz@oldnational.com |
|
|
|
|
|
|
|
|
|
|
Financial Highlights (unaudited) |
($ and shares in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
June 30, |
June 30, |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Income Statement |
|
|
|
|
|
|
|
|
Net interest income |
$ |
388,421 |
|
$ |
356,458 |
|
$ |
364,408 |
|
$ |
375,086 |
|
$ |
382,171 |
|
|
$ |
744,879 |
|
$ |
763,659 |
|
FTE adjustment1,3 |
|
6,340 |
|
|
6,253 |
|
|
6,100 |
|
|
5,837 |
|
|
5,825 |
|
|
|
12,593 |
|
|
11,491 |
|
Net interest income - tax equivalent basis3 |
|
394,761 |
|
|
362,711 |
|
|
370,508 |
|
|
380,923 |
|
|
387,996 |
|
|
|
757,472 |
|
|
775,150 |
|
Provision for credit losses |
|
36,214 |
|
|
18,891 |
|
|
11,595 |
|
|
19,068 |
|
|
14,787 |
|
|
|
55,105 |
|
|
28,224 |
|
Noninterest income |
|
87,271 |
|
|
77,522 |
|
|
100,094 |
|
|
80,938 |
|
|
81,629 |
|
|
|
164,793 |
|
|
152,310 |
|
Noninterest expense |
|
282,999 |
|
|
262,317 |
|
|
284,235 |
|
|
244,776 |
|
|
246,584 |
|
|
|
545,316 |
|
|
497,295 |
|
Net income available to common shareholders |
$ |
117,196 |
|
$ |
116,250 |
|
$ |
128,446 |
|
$ |
143,842 |
|
$ |
151,003 |
|
|
$ |
233,446 |
|
$ |
293,569 |
|
Per Common Share Data |
|
|
|
|
|
|
|
|
Weighted average diluted shares |
|
316,461 |
|
|
292,207 |
|
|
292,029 |
|
|
291,717 |
|
|
291,266 |
|
|
|
304,207 |
|
|
291,870 |
|
EPS, diluted |
$ |
0.37 |
|
$ |
0.40 |
|
$ |
0.44 |
|
$ |
0.49 |
|
$ |
0.52 |
|
|
$ |
0.77 |
|
$ |
1.01 |
|
Cash dividends |
|
0.14 |
|
|
0.14 |
|
|
0.14 |
|
|
0.14 |
|
|
0.14 |
|
|
|
0.28 |
|
|
0.28 |
|
Dividend payout ratio2 |
|
38 |
% |
|
35 |
% |
|
32 |
% |
|
29 |
% |
|
27 |
% |
|
|
36 |
% |
|
28 |
% |
Book value |
$ |
18.28 |
|
$ |
18.24 |
|
$ |
18.18 |
|
$ |
17.07 |
|
$ |
17.25 |
|
|
$ |
18.28 |
|
$ |
17.25 |
|
Stock price |
|
17.19 |
|
|
17.41 |
|
|
16.89 |
|
|
14.54 |
|
|
13.94 |
|
|
|
17.19 |
|
|
13.94 |
|
Tangible book value3 |
|
11.05 |
|
|
11.10 |
|
|
11.00 |
|
|
9.87 |
|
|
10.03 |
|
|
|
11.05 |
|
|
10.03 |
|
Performance Ratios |
|
|
|
|
|
|
|
|
ROAA |
|
0.92 |
% |
|
0.98 |
% |
|
1.09 |
% |
|
1.22 |
% |
|
1.29 |
% |
|
|
0.95 |
% |
|
1.27 |
% |
ROAE |
|
8.2 |
% |
|
8.7 |
% |
|
10.2 |
% |
|
11.4 |
% |
|
12.0 |
% |
|
|
8.4 |
% |
|
11.8 |
% |
ROATCE3 |
|
14.1 |
% |
|
14.9 |
% |
|
18.1 |
% |
|
20.2 |
% |
|
21.4 |
% |
|
|
14.5 |
% |
|
21.2 |
% |
NIM (FTE) |
|
3.33 |
% |
|
3.28 |
% |
|
3.39 |
% |
|
3.49 |
% |
|
3.60 |
% |
|
|
3.31 |
% |
|
3.65 |
% |
Efficiency ratio3 |
|
57.2 |
% |
|
58.3 |
% |
|
59.0 |
% |
|
51.7 |
% |
|
51.2 |
% |
|
|
57.7 |
% |
|
52.0 |
% |
NCOs to average loans |
|
0.16 |
% |
|
0.14 |
% |
|
0.12 |
% |
|
0.24 |
% |
|
0.13 |
% |
|
|
0.15 |
% |
|
0.17 |
% |
ACL on loans to EOP loans |
|
1.01 |
% |
|
0.95 |
% |
|
0.93 |
% |
|
0.93 |
% |
|
0.93 |
% |
|
|
1.01 |
% |
|
0.93 |
% |
ACL4 to EOP loans |
|
1.08 |
% |
|
1.03 |
% |
|
1.03 |
% |
|
1.03 |
% |
|
1.04 |
% |
|
|
1.08 |
% |
|
1.04 |
% |
NPLs to EOP loans |
|
0.94 |
% |
|
0.98 |
% |
|
0.83 |
% |
|
0.80 |
% |
|
0.91 |
% |
|
|
0.94 |
% |
|
0.91 |
% |
Balance Sheet (EOP) |
|
|
|
|
|
|
|
|
Total loans |
$ |
36,150,513 |
|
$ |
33,623,319 |
|
$ |
32,991,927 |
|
$ |
32,577,834 |
|
$ |
32,432,473 |
|
|
$ |
36,150,513 |
|
$ |
32,432,473 |
|
Total assets |
|
53,119,645 |
|
|
49,534,918 |
|
|
49,089,836 |
|
|
49,059,448 |
|
|
48,496,755 |
|
|
|
53,119,645 |
|
|
48,496,755 |
|
Total deposits |
|
39,999,228 |
|
|
37,699,418 |
|
|
37,235,180 |
|
|
37,252,676 |
|
|
36,231,315 |
|
|
|
39,999,228 |
|
|
36,231,315 |
|
Total borrowed funds |
|
6,085,204 |
|
|
5,331,161 |
|
|
5,331,147 |
|
|
5,556,010 |
|
|
6,034,008 |
|
|
|
6,085,204 |
|
|
6,034,008 |
|
Total shareholders' equity |
|
6,075,072 |
|
|
5,595,408 |
|
|
5,562,900 |
|
|
5,239,537 |
|
|
5,292,095 |
|
|
|
6,075,072 |
|
|
5,292,095 |
|
Capital Ratios |
|
|
|
|
|
|
|
|
Risk-based capital ratios (EOP): |
|
|
|
|
|
|
|
|
Tier 1 common equity |
|
10.73 |
% |
|
10.76 |
% |
|
10.70 |
% |
|
10.41 |
% |
|
10.14 |
% |
|
|
10.73 |
% |
|
10.14 |
% |
Tier 1 capital |
|
11.33 |
% |
|
11.40 |
% |
|
11.35 |
% |
|
11.06 |
% |
|
10.79 |
% |
|
|
11.33 |
% |
|
10.79 |
% |
Total capital |
|
12.71 |
% |
|
12.74 |
% |
|
12.64 |
% |
|
12.32 |
% |
|
12.14 |
% |
|
|
12.71 |
% |
|
12.14 |
% |
Leverage ratio (average assets) |
|
8.90 |
% |
|
8.96 |
% |
|
8.83 |
% |
|
8.70 |
% |
|
8.59 |
% |
|
|
8.90 |
% |
|
8.59 |
% |
Equity to assets (averages)3 |
|
11.31 |
% |
|
11.32 |
% |
|
10.81 |
% |
|
10.88 |
% |
|
10.96 |
% |
|
|
11.31 |
% |
|
10.98 |
% |
TCE to TA3 |
|
6.94 |
% |
|
6.86 |
% |
|
6.85 |
% |
|
6.15 |
% |
|
6.33 |
% |
|
|
6.94 |
% |
|
6.33 |
% |
Nonfinancial Data |
|
|
|
|
|
|
|
|
Full-time equivalent employees |
|
4,267 |
|
|
3,955 |
|
|
3,940 |
|
|
3,981 |
|
|
4,021 |
|
|
|
4,267 |
|
|
4,021 |
|
Banking centers |
|
280 |
|
|
258 |
|
|
258 |
|
|
257 |
|
|
256 |
|
|
|
280 |
|
|
256 |
|
1 Calculated using the federal statutory tax rate in
effect of 21% for all periods. |
2 Cash dividends per common share divided by net income
per common share (basic). |
3 Represents a non-GAAP financial measure. Refer the
"Non-GAAP Measures" table for reconciliations to GAAP financial
measures.
June 30, 2024 capital ratios are preliminary. |
4 Includes the allowance for credit losses on loans and
unfunded loan commitments. |
|
|
|
|
|
|
|
|
|
FTE - Fully taxable equivalent basis ROAA - Return on average
assets ROAE - Return on average equity ROATCE - Return on average
tangible common equity |
NCOs - Net Charge-offs ACL - Allowance for Credit Losses EOP - End
of period actual balances NPLs - Non-performing Loans TCE -
Tangible common equity TA - Tangible assets |
|
|
|
|
|
|
|
|
|
Income Statement (unaudited) |
($ and shares in thousands, except per share data) |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
June 30, |
June 30, |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Interest
income |
$ |
663,663 |
|
$ |
595,981 |
|
$ |
589,751 |
|
$ |
576,519 |
|
$ |
544,902 |
|
|
$ |
1,259,644 |
|
$ |
1,040,551 |
|
Less:
interest expense |
|
275,242 |
|
|
239,523 |
|
|
225,343 |
|
|
201,433 |
|
|
162,731 |
|
|
|
514,765 |
|
|
276,892 |
|
Net interest income |
|
388,421 |
|
|
356,458 |
|
|
364,408 |
|
|
375,086 |
|
|
382,171 |
|
|
|
744,879 |
|
|
763,659 |
|
Provision
for credit losses |
|
36,214 |
|
|
18,891 |
|
|
11,595 |
|
|
19,068 |
|
|
14,787 |
|
|
|
55,105 |
|
|
28,224 |
|
Net interest income
after provision for credit losses |
|
352,207 |
|
|
337,567 |
|
|
352,813 |
|
|
356,018 |
|
|
367,384 |
|
|
|
689,774 |
|
|
735,435 |
|
Wealth
and investment services fees |
|
29,358 |
|
|
28,304 |
|
|
27,656 |
|
|
26,687 |
|
|
26,521 |
|
|
|
57,662 |
|
|
53,441 |
|
Service
charges on deposit accounts |
|
19,350 |
|
|
17,898 |
|
|
18,667 |
|
|
18,524 |
|
|
17,751 |
|
|
|
37,248 |
|
|
34,754 |
|
Debit
card and ATM fees |
|
10,993 |
|
|
10,054 |
|
|
10,700 |
|
|
10,818 |
|
|
10,653 |
|
|
|
21,047 |
|
|
20,635 |
|
Mortgage
banking revenue |
|
7,064 |
|
|
4,478 |
|
|
3,691 |
|
|
5,063 |
|
|
4,165 |
|
|
|
11,542 |
|
|
7,565 |
|
Capital
markets income |
|
4,729 |
|
|
2,900 |
|
|
5,416 |
|
|
5,891 |
|
|
6,173 |
|
|
|
7,629 |
|
|
13,112 |
|
Company-owned life insurance |
|
5,739 |
|
|
3,434 |
|
|
3,773 |
|
|
3,740 |
|
|
4,698 |
|
|
|
9,173 |
|
|
7,884 |
|
Gain on
sale of Visa Class B restricted shares |
|
— |
|
|
— |
|
|
21,635 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Other
income |
|
10,036 |
|
|
10,470 |
|
|
9,381 |
|
|
10,456 |
|
|
11,651 |
|
|
|
20,506 |
|
|
20,118 |
|
Debt
securities gains (losses), net |
|
2 |
|
|
(16 |
) |
|
(825 |
) |
|
(241 |
) |
|
17 |
|
|
|
(14 |
) |
|
(5,199 |
) |
Total noninterest income |
|
87,271 |
|
|
77,522 |
|
|
100,094 |
|
|
80,938 |
|
|
81,629 |
|
|
|
164,793 |
|
|
152,310 |
|
Salaries
and employee benefits |
|
159,193 |
|
|
149,803 |
|
|
141,649 |
|
|
131,541 |
|
|
135,810 |
|
|
|
308,996 |
|
|
273,174 |
|
Occupancy |
|
26,547 |
|
|
27,019 |
|
|
26,514 |
|
|
25,795 |
|
|
26,085 |
|
|
|
53,566 |
|
|
54,367 |
|
Equipment |
|
8,704 |
|
|
8,671 |
|
|
8,769 |
|
|
8,284 |
|
|
7,721 |
|
|
|
17,375 |
|
|
15,110 |
|
Marketing |
|
11,284 |
|
|
10,634 |
|
|
10,813 |
|
|
9,448 |
|
|
9,833 |
|
|
|
21,918 |
|
|
19,250 |
|
Technology |
|
24,002 |
|
|
20,023 |
|
|
20,493 |
|
|
20,592 |
|
|
20,056 |
|
|
|
44,025 |
|
|
39,258 |
|
Communication |
|
4,480 |
|
|
4,000 |
|
|
4,212 |
|
|
4,075 |
|
|
4,232 |
|
|
|
8,480 |
|
|
8,693 |
|
Professional fees |
|
10,552 |
|
|
6,406 |
|
|
8,250 |
|
|
5,956 |
|
|
6,397 |
|
|
|
16,958 |
|
|
13,129 |
|
FDIC
assessment |
|
9,676 |
|
|
11,313 |
|
|
27,702 |
|
|
9,000 |
|
|
9,624 |
|
|
|
20,989 |
|
|
20,028 |
|
Amortization of intangibles |
|
7,425 |
|
|
5,455 |
|
|
5,869 |
|
|
6,040 |
|
|
6,060 |
|
|
|
12,880 |
|
|
12,246 |
|
Amortization of tax credit investments |
|
2,747 |
|
|
2,749 |
|
|
7,200 |
|
|
2,644 |
|
|
2,762 |
|
|
|
5,496 |
|
|
5,523 |
|
Other
expense |
|
18,389 |
|
|
16,244 |
|
|
22,764 |
|
|
21,401 |
|
|
18,004 |
|
|
|
34,633 |
|
|
36,517 |
|
Total noninterest expense |
|
282,999 |
|
|
262,317 |
|
|
284,235 |
|
|
244,776 |
|
|
246,584 |
|
|
|
545,316 |
|
|
497,295 |
|
Income before income taxes |
|
156,479 |
|
|
152,772 |
|
|
168,672 |
|
|
192,180 |
|
|
202,429 |
|
|
|
309,251 |
|
|
390,450 |
|
Income
tax expense |
|
35,250 |
|
|
32,488 |
|
|
36,192 |
|
|
44,304 |
|
|
47,393 |
|
|
|
67,738 |
|
|
88,814 |
|
Net income |
$ |
121,229 |
|
$ |
120,284 |
|
$ |
132,480 |
|
$ |
147,876 |
|
$ |
155,036 |
|
|
$ |
241,513 |
|
$ |
301,636 |
|
Preferred
dividends |
|
(4,033 |
) |
|
(4,034 |
) |
|
(4,034 |
) |
|
(4,034 |
) |
|
(4,033 |
) |
|
|
(8,067 |
) |
|
(8,067 |
) |
Net income applicable to common shares |
$ |
117,196 |
|
$ |
116,250 |
|
$ |
128,446 |
|
$ |
143,842 |
|
$ |
151,003 |
|
|
$ |
233,446 |
|
$ |
293,569 |
|
|
|
|
|
|
|
|
|
|
EPS,
diluted |
$ |
0.37 |
|
$ |
0.40 |
|
$ |
0.44 |
|
$ |
0.49 |
|
$ |
0.52 |
|
|
$ |
0.77 |
|
$ |
1.01 |
|
Weighted Average Common Shares Outstanding |
|
|
|
|
|
|
|
|
Basic |
|
315,585 |
|
|
290,980 |
|
|
290,701 |
|
|
290,648 |
|
|
290,559 |
|
|
|
303,283 |
|
|
290,822 |
|
Diluted |
|
316,461 |
|
|
292,207 |
|
|
292,029 |
|
|
291,717 |
|
|
291,266 |
|
|
|
304,207 |
|
|
291,870 |
|
Common
shares outstanding (EOP) |
|
318,969 |
|
|
293,330 |
|
|
292,655 |
|
|
292,586 |
|
|
292,597 |
|
|
|
318,969 |
|
|
292,597 |
|
|
|
|
|
|
|
|
|
|
|
End of Period Balance Sheet
(unaudited) |
($ in thousands) |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
Assets |
|
|
|
|
|
Cash and
due from banks |
$ |
428,665 |
|
$ |
350,990 |
|
$ |
430,866 |
|
$ |
381,343 |
|
$ |
473,023 |
|
Money
market and other interest-earning investments |
|
804,381 |
|
|
588,509 |
|
|
744,192 |
|
|
1,282,087 |
|
|
724,863 |
|
Investments: |
|
|
|
|
|
Treasury and government-sponsored agencies |
|
2,207,004 |
|
|
2,243,754 |
|
|
2,453,950 |
|
|
2,515,249 |
|
|
2,309,285 |
|
Mortgage-backed securities |
|
5,890,371 |
|
|
5,566,881 |
|
|
5,245,691 |
|
|
4,906,290 |
|
|
5,168,458 |
|
States and political subdivisions |
|
1,678,597 |
|
|
1,672,061 |
|
|
1,693,819 |
|
|
1,705,200 |
|
|
1,760,725 |
|
Other securities |
|
775,623 |
|
|
760,847 |
|
|
779,048 |
|
|
751,404 |
|
|
802,323 |
|
Total investments |
|
10,551,595 |
|
|
10,243,543 |
|
|
10,172,508 |
|
|
9,878,143 |
|
|
10,040,791 |
|
Loans
held-for-sale, at fair value |
|
66,126 |
|
|
19,418 |
|
|
32,006 |
|
|
122,033 |
|
|
114,369 |
|
Loans: |
|
|
|
|
|
Commercial |
|
10,332,631 |
|
|
9,648,269 |
|
|
9,512,230 |
|
|
9,333,448 |
|
|
9,698,241 |
|
Commercial and agriculture real estate |
|
16,016,958 |
|
|
14,653,958 |
|
|
14,140,629 |
|
|
13,916,221 |
|
|
13,450,209 |
|
Residential real estate |
|
6,894,957 |
|
|
6,661,379 |
|
|
6,699,443 |
|
|
6,696,288 |
|
|
6,684,480 |
|
Consumer |
|
2,905,967 |
|
|
2,659,713 |
|
|
2,639,625 |
|
|
2,631,877 |
|
|
2,599,543 |
|
Total loans |
|
36,150,513 |
|
|
33,623,319 |
|
|
32,991,927 |
|
|
32,577,834 |
|
|
32,432,473 |
|
Allowance
for credit losses on loans |
|
(366,335 |
) |
|
(319,713 |
) |
|
(307,610 |
) |
|
(303,982 |
) |
|
(300,555 |
) |
Premises
and equipment, net |
|
601,945 |
|
|
564,007 |
|
|
565,396 |
|
|
565,607 |
|
|
564,299 |
|
Goodwill
and other intangible assets |
|
2,306,204 |
|
|
2,095,511 |
|
|
2,100,966 |
|
|
2,106,835 |
|
|
2,112,875 |
|
Company-owned life insurance |
|
862,032 |
|
|
767,423 |
|
|
767,902 |
|
|
774,517 |
|
|
771,753 |
|
Accrued
interest receivable and other assets |
|
1,714,519 |
|
|
1,601,911 |
|
|
1,591,683 |
|
|
1,675,031 |
|
|
1,562,864 |
|
Total assets |
$ |
53,119,645 |
|
$ |
49,534,918 |
|
$ |
49,089,836 |
|
$ |
49,059,448 |
|
$ |
48,496,755 |
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
9,336,042 |
|
$ |
9,257,709 |
|
$ |
9,664,247 |
|
$ |
10,091,352 |
|
$ |
10,532,838 |
|
Interest-bearing: |
|
|
|
|
|
Checking
and NOW accounts |
|
7,680,865 |
|
|
7,236,667 |
|
|
7,331,487 |
|
|
7,495,417 |
|
|
7,654,202 |
|
Savings
accounts |
|
4,983,811 |
|
|
5,020,095 |
|
|
5,099,186 |
|
|
5,296,985 |
|
|
5,578,323 |
|
Money
market accounts |
|
10,485,491 |
|
|
10,234,113 |
|
|
9,561,116 |
|
|
8,793,218 |
|
|
7,200,288 |
|
Other
time deposits |
|
5,688,432 |
|
|
4,760,659 |
|
|
4,565,137 |
|
|
4,398,182 |
|
|
4,012,813 |
|
Total core deposits |
|
38,174,641 |
|
|
36,509,243 |
|
|
36,221,173 |
|
|
36,075,154 |
|
|
34,978,464 |
|
Brokered
deposits |
|
1,824,587 |
|
|
1,190,175 |
|
|
1,014,007 |
|
|
1,177,522 |
|
|
1,252,851 |
|
Total deposits |
|
39,999,228 |
|
|
37,699,418 |
|
|
37,235,180 |
|
|
37,252,676 |
|
|
36,231,315 |
|
|
|
|
|
|
|
Federal
funds purchased and interbank borrowings |
|
250,154 |
|
|
50,416 |
|
|
390 |
|
|
918 |
|
|
136,060 |
|
Securities sold under agreements to repurchase |
|
240,713 |
|
|
274,493 |
|
|
285,206 |
|
|
279,061 |
|
|
311,447 |
|
Federal
Home Loan Bank advances |
|
4,744,560 |
|
|
4,193,039 |
|
|
4,280,681 |
|
|
4,412,576 |
|
|
4,771,183 |
|
Other
borrowings |
|
849,777 |
|
|
813,213 |
|
|
764,870 |
|
|
863,455 |
|
|
815,318 |
|
Total borrowed funds |
|
6,085,204 |
|
|
5,331,161 |
|
|
5,331,147 |
|
|
5,556,010 |
|
|
6,034,008 |
|
Accrued
expenses and other liabilities |
|
960,141 |
|
|
908,931 |
|
|
960,609 |
|
|
1,011,225 |
|
|
939,337 |
|
Total liabilities |
|
47,044,573 |
|
|
43,939,510 |
|
|
43,526,936 |
|
|
43,819,911 |
|
|
43,204,660 |
|
Preferred
stock, common stock, surplus, and retained earnings |
|
6,866,480 |
|
|
6,375,036 |
|
|
6,301,709 |
|
|
6,208,352 |
|
|
6,100,728 |
|
Accumulated other comprehensive income (loss), net of tax |
|
(791,408 |
) |
|
(779,628 |
) |
|
(738,809 |
) |
|
(968,815 |
) |
|
(808,633 |
) |
Total shareholders' equity |
|
6,075,072 |
|
|
5,595,408 |
|
|
5,562,900 |
|
|
5,239,537 |
|
|
5,292,095 |
|
Total liabilities and shareholders' equity |
$ |
53,119,645 |
|
$ |
49,534,918 |
|
$ |
49,089,836 |
|
$ |
49,059,448 |
|
$ |
48,496,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet and Interest Rates
(unaudited) |
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
Average |
Income1/ |
Yield/ |
|
Average |
Income1/ |
Yield/ |
|
Average |
Income1/ |
Yield/ |
Earning
Assets: |
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
Money market and other interest-earning investments |
$ |
814,944 |
|
$ |
11,311 |
5.58 |
% |
|
$ |
757,244 |
|
$ |
9,985 |
5.30 |
% |
|
$ |
724,601 |
|
$ |
8,966 |
4.96 |
% |
Investments: |
|
|
|
|
|
|
|
|
|
|
|
Treasury and government-sponsored agencies |
|
2,208,935 |
|
|
21,531 |
3.90 |
% |
|
|
2,362,477 |
|
|
23,266 |
3.94 |
% |
|
|
2,222,269 |
|
|
19,355 |
3.48 |
% |
Mortgage-backed securities |
|
5,828,225 |
|
|
47,904 |
3.29 |
% |
|
|
5,357,085 |
|
|
38,888 |
2.90 |
% |
|
|
5,301,084 |
|
|
34,291 |
2.59 |
% |
States and political subdivisions |
|
1,686,994 |
|
|
14,290 |
3.39 |
% |
|
|
1,680,175 |
|
|
13,976 |
3.33 |
% |
|
|
1,768,897 |
|
|
14,396 |
3.26 |
% |
Other securities |
|
788,571 |
|
|
12,583 |
6.38 |
% |
|
|
770,438 |
|
|
12,173 |
6.32 |
% |
|
|
824,482 |
|
|
9,995 |
4.85 |
% |
Total investments |
|
10,512,725 |
|
|
96,308 |
3.66 |
% |
|
|
10,170,175 |
|
|
88,303 |
3.47 |
% |
|
|
10,116,732 |
|
|
78,037 |
3.09 |
% |
Loans:2 |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
10,345,098 |
|
|
183,425 |
7.09 |
% |
|
|
9,540,385 |
|
|
167,263 |
7.01 |
% |
|
|
9,862,728 |
|
|
163,721 |
6.64 |
% |
Commercial and agriculture real estate |
|
15,870,809 |
|
|
260,407 |
6.56 |
% |
|
|
14,368,370 |
|
|
230,086 |
6.41 |
% |
|
|
13,164,390 |
|
|
199,287 |
6.06 |
% |
Residential real estate loans |
|
6,952,942 |
|
|
67,683 |
3.89 |
% |
|
|
6,693,814 |
|
|
63,003 |
3.76 |
% |
|
|
6,643,254 |
|
|
60,717 |
3.66 |
% |
Consumer |
|
2,910,331 |
|
|
50,869 |
7.03 |
% |
|
|
2,645,091 |
|
|
43,594 |
6.63 |
% |
|
|
2,585,493 |
|
|
39,999 |
6.21 |
% |
Total loans |
|
36,079,180 |
|
|
562,384 |
6.24 |
% |
|
|
33,247,660 |
|
|
503,946 |
6.07 |
% |
|
|
32,255,865 |
|
|
463,724 |
5.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total earning assets |
$ |
47,406,849 |
|
$ |
670,003 |
5.66 |
% |
|
$ |
44,175,079 |
|
$ |
602,234 |
5.46 |
% |
|
$ |
43,097,198 |
|
$ |
550,727 |
5.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Allowance for credit losses on loans |
|
(331,043 |
) |
|
|
|
|
(313,470 |
) |
|
|
|
|
(301,311 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
430,256 |
|
|
|
|
$ |
362,676 |
|
|
|
|
$ |
418,972 |
|
|
|
Other assets |
|
5,341,022 |
|
|
|
|
|
4,961,595 |
|
|
|
|
|
4,884,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
52,847,084 |
|
|
|
|
$ |
49,185,880 |
|
|
|
|
$ |
48,099,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Checking and NOW accounts |
$ |
8,189,454 |
|
$ |
34,398 |
1.69 |
% |
|
$ |
7,141,201 |
|
$ |
25,252 |
1.42 |
% |
|
$ |
7,881,863 |
|
$ |
24,358 |
1.24 |
% |
Savings accounts |
|
5,044,800 |
|
|
5,254 |
0.42 |
% |
|
|
5,025,400 |
|
|
5,017 |
0.40 |
% |
|
|
5,785,603 |
|
|
3,247 |
0.23 |
% |
Money market accounts |
|
10,728,156 |
|
|
102,560 |
3.84 |
% |
|
|
9,917,572 |
|
|
94,213 |
3.82 |
% |
|
|
6,084,963 |
|
|
35,358 |
2.33 |
% |
Other time deposits |
|
5,358,103 |
|
|
56,586 |
4.25 |
% |
|
|
4,689,136 |
|
|
47,432 |
4.07 |
% |
|
|
3,680,029 |
|
|
26,633 |
2.90 |
% |
Total interest-bearing core deposits |
|
29,320,513 |
|
|
198,798 |
2.73 |
% |
|
|
26,773,309 |
|
|
171,914 |
2.58 |
% |
|
|
23,432,458 |
|
|
89,596 |
1.53 |
% |
Brokered
deposits |
|
1,244,237 |
|
|
17,008 |
5.50 |
% |
|
|
1,047,140 |
|
|
13,525 |
5.19 |
% |
|
|
948,397 |
|
|
11,378 |
4.81 |
% |
Total interest-bearing deposits |
|
30,564,750 |
|
|
215,806 |
2.84 |
% |
|
|
27,820,449 |
|
|
185,439 |
2.68 |
% |
|
|
24,380,855 |
|
|
100,974 |
1.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Federal
funds purchased and interbank borrowings |
|
148,835 |
|
|
1,986 |
5.37 |
% |
|
|
69,090 |
|
|
961 |
5.59 |
% |
|
|
441,145 |
|
|
5,655 |
5.14 |
% |
Securities sold under agreements to repurchase |
|
249,939 |
|
|
639 |
1.03 |
% |
|
|
296,236 |
|
|
917 |
1.25 |
% |
|
|
340,178 |
|
|
900 |
1.06 |
% |
Federal
Home Loan Bank advances |
|
4,473,978 |
|
|
44,643 |
4.01 |
% |
|
|
4,386,492 |
|
|
41,167 |
3.77 |
% |
|
|
5,283,728 |
|
|
45,088 |
3.42 |
% |
Other
borrowings |
|
891,609 |
|
|
12,168 |
5.49 |
% |
|
|
825,846 |
|
|
11,039 |
5.38 |
% |
|
|
796,536 |
|
|
10,114 |
5.09 |
% |
Total borrowed funds |
|
5,764,361 |
|
|
59,436 |
4.15 |
% |
|
|
5,577,664 |
|
|
54,084 |
3.90 |
% |
|
|
6,861,587 |
|
|
61,757 |
3.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
$ |
36,329,111 |
|
$ |
275,242 |
3.05 |
% |
|
$ |
33,398,113 |
|
$ |
239,523 |
2.88 |
% |
|
$ |
31,242,442 |
|
$ |
162,731 |
2.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits |
$ |
9,558,675 |
|
|
|
|
$ |
9,258,136 |
|
|
|
|
$ |
10,741,646 |
|
|
|
Other
liabilities |
|
980,322 |
|
|
|
|
|
964,089 |
|
|
|
|
|
841,663 |
|
|
|
Shareholders' equity |
|
5,978,976 |
|
|
|
|
|
5,565,542 |
|
|
|
|
|
5,273,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
52,847,084 |
|
|
|
|
$ |
49,185,880 |
|
|
|
|
$ |
48,099,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest rate spread |
|
|
2.61 |
% |
|
|
|
2.58 |
% |
|
|
|
3.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin (GAAP) |
|
|
3.28 |
% |
|
|
|
3.23 |
% |
|
|
|
3.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin (FTE)3 |
|
|
3.33 |
% |
|
|
|
3.28 |
% |
|
|
|
3.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
FTE
adjustment |
|
$ |
6,340 |
|
|
|
$ |
6,253 |
|
|
|
$ |
5,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Interest income is reflected on a FTE basis. |
|
2 Includes loans held-for-sale. |
|
3 Represents a non-GAAP financial measure. Refer the
"Non-GAAP Measures" table for reconciliations to GAAP financial
measures. |
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet and Interest Rates
(unaudited) |
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
Six Months Ended |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
|
Average |
Income1/ |
Yield/ |
|
Average |
Income1/ |
Yield/ |
Earning
Assets: |
|
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
Money market and other interest-earning investments |
|
$ |
786,094 |
|
$ |
21,296 |
5.45 |
% |
|
$ |
611,903 |
|
$ |
12,064 |
3.98 |
% |
Investments: |
|
|
|
|
|
|
|
|
Treasury and government-sponsored agencies |
|
|
2,285,706 |
|
|
44,797 |
3.92 |
% |
|
|
2,209,916 |
|
|
35,886 |
3.25 |
% |
Mortgage-backed securities |
|
|
5,592,655 |
|
|
86,792 |
3.10 |
% |
|
|
5,364,788 |
|
|
69,381 |
2.59 |
% |
States and political subdivisions |
|
|
1,683,585 |
|
|
28,266 |
3.36 |
% |
|
|
1,788,498 |
|
|
29,086 |
3.25 |
% |
Other securities |
|
|
779,504 |
|
|
24,756 |
6.35 |
% |
|
|
781,549 |
|
|
18,599 |
4.76 |
% |
Total investments |
|
$ |
10,341,450 |
|
$ |
184,611 |
3.57 |
% |
|
$ |
10,144,751 |
|
$ |
152,952 |
3.02 |
% |
Loans:2 |
|
|
|
|
|
|
|
|
Commercial |
|
|
9,942,741 |
|
|
350,688 |
7.05 |
% |
|
|
9,661,029 |
|
|
311,341 |
6.45 |
% |
Commercial and agriculture real estate |
|
|
15,119,590 |
|
|
490,493 |
6.49 |
% |
|
|
12,910,787 |
|
|
378,762 |
5.87 |
% |
Residential real estate loans |
|
|
6,823,378 |
|
|
130,686 |
3.83 |
% |
|
|
6,582,982 |
|
|
118,817 |
3.61 |
% |
Consumer |
|
|
2,777,711 |
|
|
94,463 |
6.84 |
% |
|
|
2,611,295 |
|
|
78,106 |
6.03 |
% |
Total loans |
|
|
34,663,420 |
|
|
1,066,330 |
6.16 |
% |
|
|
31,766,093 |
|
|
887,026 |
5.59 |
% |
|
|
|
|
|
|
|
|
|
Total earning assets |
|
$ |
45,790,964 |
|
$ |
1,272,237 |
5.56 |
% |
|
$ |
42,522,747 |
|
$ |
1,052,042 |
4.95 |
% |
|
|
|
|
|
|
|
|
|
Less:
Allowance for credit losses on loans |
|
|
(322,256 |
) |
|
|
|
|
(302,844 |
) |
|
|
|
|
|
|
|
|
|
|
|
Non-earning Assets: |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
396,466 |
|
|
|
|
$ |
428,370 |
|
|
|
Other assets |
|
|
5,151,308 |
|
|
|
|
|
4,895,843 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
51,016,482 |
|
|
|
|
$ |
47,544,116 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
Checking and NOW accounts |
|
$ |
7,665,327 |
|
$ |
59,650 |
1.56 |
% |
|
$ |
7,934,927 |
|
$ |
43,717 |
1.11 |
% |
Savings accounts |
|
|
5,035,100 |
|
|
10,271 |
0.41 |
% |
|
|
5,983,407 |
|
|
5,477 |
0.18 |
% |
Money market accounts |
|
|
10,322,808 |
|
|
196,773 |
3.83 |
% |
|
|
5,864,351 |
|
|
55,368 |
1.90 |
% |
Other time deposits |
|
|
5,023,620 |
|
|
104,018 |
4.16 |
% |
|
|
3,370,668 |
|
|
41,922 |
2.51 |
% |
Total interest-bearing core deposits |
|
|
28,046,855 |
|
|
370,712 |
2.66 |
% |
|
|
23,153,353 |
|
|
146,484 |
1.28 |
% |
Brokered
deposits |
|
|
1,145,744 |
|
|
30,533 |
5.36 |
% |
|
|
725,701 |
|
|
17,083 |
4.75 |
% |
Total interest-bearing deposits |
|
|
29,192,599 |
|
|
401,245 |
2.76 |
% |
|
|
23,879,054 |
|
|
163,567 |
1.38 |
% |
|
|
|
|
|
|
|
|
|
Federal
funds purchased and interbank borrowings |
|
|
108,962 |
|
|
2,947 |
5.44 |
% |
|
|
430,278 |
|
|
10,494 |
4.92 |
% |
Securities sold under agreements to repurchase |
|
|
273,088 |
|
|
1,556 |
1.15 |
% |
|
|
376,298 |
|
|
1,679 |
0.90 |
% |
Federal
Home Loan Bank advances |
|
|
4,430,236 |
|
|
85,810 |
3.90 |
% |
|
|
4,781,326 |
|
|
83,084 |
3.50 |
% |
Other
borrowings |
|
|
858,727 |
|
|
23,207 |
5.43 |
% |
|
|
788,921 |
|
|
18,068 |
4.62 |
% |
Total borrowed funds |
|
|
5,671,013 |
|
|
113,520 |
4.03 |
% |
|
|
6,376,823 |
|
|
113,325 |
3.58 |
% |
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
|
34,863,612 |
|
|
514,765 |
2.97 |
% |
|
|
30,255,877 |
|
|
276,892 |
1.85 |
% |
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
Demand
deposits |
|
$ |
9,408,406 |
|
|
|
|
$ |
11,131,789 |
|
|
|
Other
liabilities |
|
|
972,205 |
|
|
|
|
|
936,158 |
|
|
|
Shareholders' equity |
|
|
5,772,259 |
|
|
|
|
|
5,220,292 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
51,016,482 |
|
|
|
|
$ |
47,544,116 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest rate spread |
|
|
|
2.59 |
% |
|
|
|
3.10 |
% |
|
|
|
|
|
|
|
|
|
Net
interest margin (GAAP) |
|
|
|
3.25 |
% |
|
|
|
3.59 |
% |
|
|
|
|
|
|
|
|
|
Net
interest margin (FTE)3 |
|
|
|
3.31 |
% |
|
|
|
3.65 |
% |
|
|
|
|
|
|
|
|
|
FTE
adjustment |
|
|
$ |
12,593 |
|
|
|
$ |
11,491 |
|
|
|
|
|
|
|
|
|
|
1 Interest income is reflected on a FTE. |
2 Includes loans
held-for-sale. |
3 Represents a non-GAAP financial measure. Refer the
"Non-GAAP Measures" table for reconciliations to GAAP financial
measures. |
|
|
|
|
|
|
|
|
|
|
Asset Quality (EOP) (unaudited) |
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
June 30, |
June 30, |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
Beginning
allowance for credit losses on loans |
$ |
319,713 |
|
$ |
307,610 |
|
$ |
303,982 |
|
$ |
300,555 |
|
$ |
298,711 |
|
|
$ |
307,610 |
|
$ |
303,671 |
|
Allowance established for acquired PCD loans |
|
23,922 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
23,922 |
|
|
— |
|
Provision for credit losses on loans |
|
36,745 |
|
|
23,853 |
|
|
13,329 |
|
|
23,115 |
|
|
11,936 |
|
|
|
60,598 |
|
|
23,405 |
|
Gross charge-offs |
|
(17,041 |
) |
|
(14,020 |
) |
|
(13,202 |
) |
|
(22,750 |
) |
|
(14,331 |
) |
|
|
(31,061 |
) |
|
(32,511 |
) |
Gross recoveries |
|
2,996 |
|
|
2,270 |
|
|
3,501 |
|
|
3,062 |
|
|
4,239 |
|
|
|
5,266 |
|
|
5,990 |
|
NCOs |
|
(14,045 |
) |
|
(11,750 |
) |
|
(9,701 |
) |
|
(19,688 |
) |
|
(10,092 |
) |
|
|
(25,795 |
) |
|
(26,521 |
) |
Ending
allowance for credit losses on loans |
$ |
366,335 |
|
$ |
319,713 |
|
$ |
307,610 |
|
$ |
303,982 |
|
$ |
300,555 |
|
|
$ |
366,335 |
|
$ |
300,555 |
|
Beginning
allowance for credit losses on unfunded commitments |
$ |
26,264 |
|
$ |
31,226 |
|
$ |
32,960 |
|
$ |
37,007 |
|
$ |
34,156 |
|
|
$ |
31,226 |
|
$ |
32,188 |
|
Provision (release) for credit losses on unfunded commitments |
|
(531 |
) |
|
(4,962 |
) |
|
(1,734 |
) |
|
(4,047 |
) |
|
2,851 |
|
|
|
(5,493 |
) |
|
4,819 |
|
Ending
allowance for credit losses on unfunded commitments |
$ |
25,733 |
|
$ |
26,264 |
|
$ |
31,226 |
|
$ |
32,960 |
|
$ |
37,007 |
|
|
$ |
25,733 |
|
$ |
37,007 |
|
Allowance
for credit losses |
$ |
392,068 |
|
$ |
345,977 |
|
$ |
338,836 |
|
$ |
336,942 |
|
$ |
337,562 |
|
|
$ |
392,068 |
|
$ |
337,562 |
|
Provision
for credit losses on loans |
$ |
36,745 |
|
$ |
23,853 |
|
$ |
13,329 |
|
$ |
23,115 |
|
$ |
11,936 |
|
|
$ |
60,598 |
|
$ |
23,405 |
|
Provision
(release) for credit losses on unfunded commitments |
|
(531 |
) |
|
(4,962 |
) |
|
(1,734 |
) |
|
(4,047 |
) |
|
2,851 |
|
|
|
(5,493 |
) |
|
4,819 |
|
Provision for credit losses |
$ |
36,214 |
|
$ |
18,891 |
|
$ |
11,595 |
|
$ |
19,068 |
|
$ |
14,787 |
|
|
$ |
55,105 |
|
$ |
28,224 |
|
NCOs /
average loans1 |
|
0.16 |
% |
|
0.14 |
% |
|
0.12 |
% |
|
0.24 |
% |
|
0.13 |
% |
|
|
0.15 |
% |
|
0.17 |
% |
Average
loans1 |
$ |
36,053,845 |
|
$ |
33,242,739 |
|
$ |
32,752,406 |
|
$ |
32,639,812 |
|
$ |
32,251,242 |
|
|
$ |
34,648,292 |
|
$ |
31,762,256 |
|
EOP
loans1 |
|
36,150,513 |
|
|
33,623,319 |
|
|
32,991,927 |
|
|
32,577,834 |
|
|
32,432,473 |
|
|
|
36,150,513 |
|
|
32,432,473 |
|
ACL on
loans / EOP loans1 |
|
1.01 |
% |
|
0.95 |
% |
|
0.93 |
% |
|
0.93 |
% |
|
0.93 |
% |
|
|
1.01 |
% |
|
0.93 |
% |
ACL / EOP
loans1 |
|
1.08 |
% |
|
1.03 |
% |
|
1.03 |
% |
|
1.03 |
% |
|
1.04 |
% |
|
|
1.08 |
% |
|
1.04 |
% |
Underperforming Assets: |
|
|
|
|
|
|
|
|
Loans 90
days and over (still accruing) |
$ |
5,251 |
|
$ |
2,172 |
|
$ |
961 |
|
$ |
1,192 |
|
$ |
303 |
|
|
$ |
5,251 |
|
$ |
303 |
|
Nonaccrual loans |
|
340,181 |
|
|
328,645 |
|
|
274,821 |
|
|
261,346 |
|
|
295,509 |
|
|
|
340,181 |
|
|
295,509 |
|
Foreclosed assets |
|
8,290 |
|
|
9,344 |
|
|
9,434 |
|
|
9,761 |
|
|
9,824 |
|
|
|
8,290 |
|
|
9,824 |
|
Total underperforming assets |
$ |
353,722 |
|
$ |
340,161 |
|
$ |
285,216 |
|
$ |
272,299 |
|
$ |
305,636 |
|
|
$ |
353,722 |
|
$ |
305,636 |
|
Classified and Criticized Assets: |
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
340,181 |
|
$ |
328,645 |
|
$ |
274,821 |
|
$ |
261,346 |
|
$ |
295,509 |
|
|
$ |
340,181 |
|
$ |
295,509 |
|
Substandard loans (still accruing) |
|
841,087 |
|
|
626,157 |
|
|
599,358 |
|
|
563,427 |
|
|
524,709 |
|
|
|
841,087 |
|
|
524,709 |
|
Loans 90
days and over (still accruing) |
|
5,251 |
|
|
2,172 |
|
|
961 |
|
|
1,192 |
|
|
303 |
|
|
|
5,251 |
|
|
303 |
|
Total classified loans - "problem loans" |
|
1,186,519 |
|
|
956,974 |
|
|
875,140 |
|
|
825,965 |
|
|
820,521 |
|
|
|
1,186,519 |
|
|
820,521 |
|
Other
classified assets |
|
60,772 |
|
|
54,392 |
|
|
48,930 |
|
|
48,998 |
|
|
40,942 |
|
|
|
60,772 |
|
|
40,942 |
|
Special
Mention |
|
967,655 |
|
|
827,419 |
|
|
843,920 |
|
|
775,526 |
|
|
614,547 |
|
|
|
967,655 |
|
|
614,547 |
|
Total classified and criticized assets |
$ |
2,214,946 |
|
$ |
1,838,785 |
|
$ |
1,767,990 |
|
$ |
1,650,489 |
|
$ |
1,476,010 |
|
|
$ |
2,214,946 |
|
$ |
1,476,010 |
|
Loans
30-89 days past due (still accruing) |
$ |
51,712 |
|
$ |
53,112 |
|
$ |
71,868 |
|
$ |
56,772 |
|
$ |
39,748 |
|
|
$ |
51,712 |
|
$ |
39,748 |
|
Nonaccrual loans / EOP loans1 |
|
0.94 |
% |
|
0.98 |
% |
|
0.83 |
% |
|
0.80 |
% |
|
0.91 |
% |
|
|
0.94 |
% |
|
0.91 |
% |
ACL /
nonaccrual loans |
|
115 |
% |
|
105 |
% |
|
123 |
% |
|
129 |
% |
|
114 |
% |
|
|
115 |
% |
|
114 |
% |
Under-performing assets/EOP loans1 |
|
0.98 |
% |
|
1.01 |
% |
|
0.86 |
% |
|
0.84 |
% |
|
0.94 |
% |
|
|
0.98 |
% |
|
0.94 |
% |
Under-performing assets/EOP assets |
|
0.67 |
% |
|
0.69 |
% |
|
0.58 |
% |
|
0.56 |
% |
|
0.63 |
% |
|
|
0.67 |
% |
|
0.63 |
% |
30+ day
delinquencies/EOP loans1 |
|
0.16 |
% |
|
0.16 |
% |
|
0.22 |
% |
|
0.18 |
% |
|
0.12 |
% |
|
|
0.16 |
% |
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
1 Excludes loans held-for-sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures (unaudited) |
($ and shares in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
June 30, |
June 30, |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Earnings Per Share: |
|
|
|
|
|
|
|
|
Net income applicable to common shares |
$ |
117,196 |
|
$ |
116,250 |
|
$ |
128,446 |
|
$ |
143,842 |
|
$ |
151,003 |
|
|
$ |
233,446 |
|
$ |
293,569 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Merger-related charges |
|
19,440 |
|
|
2,908 |
|
|
5,529 |
|
|
6,257 |
|
|
2,372 |
|
|
|
22,348 |
|
|
16,930 |
|
Tax effect1 |
|
(4,413 |
) |
|
(710 |
) |
|
(1,343 |
) |
|
(1,042 |
) |
|
(277 |
) |
|
|
(5,123 |
) |
|
(3,449 |
) |
Merger-related charges, net |
|
15,027 |
|
|
2,198 |
|
|
4,186 |
|
|
5,215 |
|
|
2,095 |
|
|
|
17,225 |
|
|
13,481 |
|
CECL Day 1 non-PCD provision expense |
|
15,312 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
15,312 |
|
|
— |
|
Tax effect1 |
|
(3,476 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(3,476 |
) |
|
— |
|
CECL Day 1 non-PCD provision expense, net |
|
11,836 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
11,836 |
|
|
— |
|
Debt securities (gains) losses |
|
(2 |
) |
|
16 |
|
|
825 |
|
|
241 |
|
|
(17 |
) |
|
|
14 |
|
|
5,199 |
|
Tax effect1 |
|
1 |
|
|
(4 |
) |
|
(200 |
) |
|
(40 |
) |
|
2 |
|
|
|
(3 |
) |
|
(1,135 |
) |
Debt securities (gains) losses, net |
|
(1 |
) |
|
12 |
|
|
625 |
|
|
201 |
|
|
(15 |
) |
|
|
11 |
|
|
4,064 |
|
Distribution of excess pension assets |
|
— |
|
|
13,318 |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
13,318 |
|
|
— |
|
Tax effect1 |
|
— |
|
|
(3,250 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
(3,250 |
) |
|
— |
|
Distribution excess pension assets, net |
|
— |
|
|
10,068 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
10,068 |
|
|
— |
|
FDIC special assessment |
|
— |
|
|
2,994 |
|
|
19,052 |
|
|
— |
|
|
— |
|
|
|
2,994 |
|
|
— |
|
Tax effect1 |
|
— |
|
|
(731 |
) |
|
(4,628 |
) |
|
— |
|
|
— |
|
|
|
(731 |
) |
|
— |
|
FDIC special assessment, net |
|
— |
|
|
2,263 |
|
|
14,424 |
|
|
— |
|
|
— |
|
|
|
2,263 |
|
|
— |
|
Gain on sale of Visa Class B restricted shares |
|
— |
|
|
— |
|
|
(21,635 |
) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Tax effect1 |
|
— |
|
|
— |
|
|
5,255 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Gain on sale of Visa Class B restricted shares, net |
|
— |
|
|
— |
|
|
(16,380 |
) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Contract termination charge |
|
— |
|
|
— |
|
|
4,413 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Tax effect1 |
|
— |
|
|
— |
|
|
(1,072 |
) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Contract termination charge, net |
|
— |
|
|
— |
|
|
3,341 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Louisville expenses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,361 |
|
|
|
— |
|
|
3,361 |
|
Tax effect1 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(392 |
) |
|
|
— |
|
|
(392 |
) |
Louisville expenses, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,969 |
|
|
|
— |
|
|
2,969 |
|
Property optimization charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
242 |
|
|
|
— |
|
|
1,559 |
|
Tax effect1 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(28 |
) |
|
|
— |
|
|
(315 |
) |
Property optimization charges, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
214 |
|
|
|
— |
|
|
1,244 |
|
Total adjustments, net |
|
26,862 |
|
|
14,541 |
|
|
6,196 |
|
|
5,416 |
|
|
5,263 |
|
|
|
41,403 |
|
|
21,758 |
|
Net income applicable to common shares, adjusted |
$ |
144,058 |
|
$ |
130,791 |
|
$ |
134,642 |
|
$ |
149,258 |
|
$ |
156,266 |
|
|
$ |
274,849 |
|
$ |
315,327 |
|
Weighted average diluted common shares outstanding |
|
316,461 |
|
|
292,207 |
|
|
292,029 |
|
|
291,717 |
|
|
291,266 |
|
|
|
304,207 |
|
|
291,870 |
|
EPS, diluted |
$ |
0.37 |
|
$ |
0.40 |
|
$ |
0.44 |
|
$ |
0.49 |
|
$ |
0.52 |
|
|
$ |
0.77 |
|
$ |
1.01 |
|
Adjusted EPS, diluted |
$ |
0.46 |
|
$ |
0.45 |
|
$ |
0.46 |
|
$ |
0.51 |
|
$ |
0.54 |
|
|
$ |
0.90 |
|
$ |
1.08 |
|
NIM: |
|
|
|
|
|
|
|
|
Net interest income |
$ |
388,421 |
|
$ |
356,458 |
|
$ |
364,408 |
|
$ |
375,086 |
|
$ |
382,171 |
|
|
$ |
744,879 |
|
$ |
763,659 |
|
Add: FTE adjustment2 |
|
6,340 |
|
|
6,253 |
|
|
6,100 |
|
|
5,837 |
|
|
5,825 |
|
|
|
12,593 |
|
|
11,491 |
|
Net interest income (FTE) |
$ |
394,761 |
|
$ |
362,711 |
|
$ |
370,508 |
|
$ |
380,923 |
|
$ |
387,996 |
|
|
$ |
757,472 |
|
$ |
775,150 |
|
Average earning assets |
$ |
47,406,849 |
|
$ |
44,175,079 |
|
$ |
43,701,283 |
|
$ |
43,617,456 |
|
$ |
43,097,198 |
|
|
$ |
45,790,964 |
|
$ |
42,522,747 |
|
NIM (GAAP) |
|
3.28 |
% |
|
3.23 |
% |
|
3.34 |
% |
|
3.44 |
% |
|
3.55 |
% |
|
|
3.25 |
% |
|
3.59 |
% |
NIM (FTE) |
|
3.33 |
% |
|
3.28 |
% |
|
3.39 |
% |
|
3.49 |
% |
|
3.60 |
% |
|
|
3.31 |
% |
|
3.65 |
% |
|
|
|
|
|
|
|
|
|
Refer to last page of Non-GAAP reconciliations for
footnotes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures (unaudited) |
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
June 30, |
June 30, |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
PPNR: |
|
|
|
|
|
|
|
|
Net interest income (FTE)2 |
$ |
394,761 |
|
$ |
362,711 |
|
$ |
370,508 |
|
$ |
380,923 |
|
$ |
387,996 |
|
|
$ |
757,472 |
|
$ |
775,150 |
|
Add: Noninterest income |
|
87,271 |
|
|
77,522 |
|
|
100,094 |
|
|
80,938 |
|
|
81,629 |
|
|
|
164,793 |
|
|
152,310 |
|
Total revenue (FTE) |
|
482,032 |
|
|
440,233 |
|
|
470,602 |
|
|
461,861 |
|
|
469,625 |
|
|
|
922,265 |
|
|
927,460 |
|
Less: Noninterest expense |
|
(282,999 |
) |
|
(262,317 |
) |
|
(284,235 |
) |
|
(244,776 |
) |
|
(246,584 |
) |
|
|
(545,316 |
) |
|
(497,295 |
) |
PPNR |
$ |
199,033 |
|
$ |
177,916 |
|
$ |
186,367 |
|
$ |
217,085 |
|
$ |
223,041 |
|
|
$ |
376,949 |
|
$ |
430,165 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Gain on sale of Visa Class B restricted shares |
$ |
— |
|
$ |
— |
|
$ |
(21,635 |
) |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
Debt securities (gains) losses |
|
(2 |
) |
|
16 |
|
|
825 |
|
|
241 |
|
|
(17 |
) |
|
|
14 |
|
|
5,199 |
|
Noninterest income adjustments |
|
(2 |
) |
|
16 |
|
|
(20,810 |
) |
|
241 |
|
|
(17 |
) |
|
|
14 |
|
|
5,199 |
|
Adjusted noninterest income |
|
87,269 |
|
|
77,538 |
|
|
79,284 |
|
|
81,179 |
|
|
81,612 |
|
|
|
164,807 |
|
|
157,509 |
|
Adjusted revenue |
$ |
482,030 |
|
$ |
440,249 |
|
$ |
449,792 |
|
$ |
462,102 |
|
$ |
469,608 |
|
|
$ |
922,279 |
|
$ |
932,659 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Merger-related charges |
$ |
19,440 |
|
$ |
2,908 |
|
$ |
5,529 |
|
$ |
6,257 |
|
$ |
2,372 |
|
|
$ |
22,348 |
|
$ |
16,930 |
|
Distribution of excess pension assets |
|
— |
|
|
13,318 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
13,318 |
|
|
— |
|
FDIC Special Assessment |
|
— |
|
|
2,994 |
|
|
19,052 |
|
|
— |
|
|
— |
|
|
|
2,994 |
|
|
— |
|
Contract termination charges |
|
— |
|
|
— |
|
|
4,413 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Louisville expenses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,361 |
|
|
|
— |
|
|
3,361 |
|
Property optimization charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
242 |
|
|
|
— |
|
|
1,559 |
|
Noninterest expense adjustments |
|
19,440 |
|
|
19,220 |
|
|
28,994 |
|
|
6,257 |
|
|
5,975 |
|
|
|
38,660 |
|
|
21,850 |
|
Adjusted total noninterest expense |
|
(263,559 |
) |
|
(243,097 |
) |
|
(255,241 |
) |
|
(238,519 |
) |
|
(240,609 |
) |
|
|
(506,656 |
) |
|
(475,445 |
) |
Adjusted PPNR |
$ |
218,471 |
|
$ |
197,152 |
|
$ |
194,551 |
|
$ |
223,583 |
|
$ |
228,999 |
|
|
$ |
415,623 |
|
$ |
457,214 |
|
Efficiency Ratio: |
|
|
|
|
|
|
|
|
Noninterest expense |
$ |
282,999 |
|
$ |
262,317 |
|
$ |
284,235 |
|
$ |
244,776 |
|
$ |
246,584 |
|
|
$ |
545,316 |
|
$ |
497,295 |
|
Less:
Amortization of intangibles |
|
(7,425 |
) |
|
(5,455 |
) |
|
(5,869 |
) |
|
(6,040 |
) |
|
(6,060 |
) |
|
|
(12,880 |
) |
|
(12,246 |
) |
Noninterest expense, excl. amortization of intangibles |
|
275,574 |
|
|
256,862 |
|
|
278,366 |
|
|
238,736 |
|
|
240,524 |
|
|
|
532,436 |
|
|
485,049 |
|
Less:
Amortization of tax credit investments |
|
(2,747 |
) |
|
(2,749 |
) |
|
(7,200 |
) |
|
(2,644 |
) |
|
(2,762 |
) |
|
|
(5,496 |
) |
|
(5,523 |
) |
Less:
Noninterest expense adjustments |
|
(19,440 |
) |
|
(19,220 |
) |
|
(28,994 |
) |
|
(6,257 |
) |
|
(5,975 |
) |
|
|
(38,660 |
) |
|
(21,850 |
) |
Adjusted noninterest expense, excluding amortization |
$ |
253,387 |
|
$ |
234,893 |
|
$ |
242,172 |
|
$ |
229,835 |
|
$ |
231,787 |
|
|
$ |
488,280 |
|
$ |
457,676 |
|
Total
revenue (FTE)2 |
$ |
482,032 |
|
$ |
440,233 |
|
$ |
470,602 |
|
$ |
461,861 |
|
$ |
469,625 |
|
|
$ |
922,265 |
|
$ |
927,460 |
|
Less:
Debt securities (gains) losses |
|
(2 |
) |
|
16 |
|
|
825 |
|
|
241 |
|
|
(17 |
) |
|
|
14 |
|
|
5,199 |
|
Total revenue excl. debt securities (gains) losses |
|
482,030 |
|
|
440,249 |
|
|
471,427 |
|
|
462,102 |
|
|
469,608 |
|
|
|
922,279 |
|
|
932,659 |
|
Less:
Gain on sale of Visa Class B restricted shares |
|
— |
|
|
— |
|
|
(21,635 |
) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Total adjusted revenue |
$ |
482,030 |
|
$ |
440,249 |
|
$ |
449,792 |
|
$ |
462,102 |
|
$ |
469,608 |
|
|
$ |
922,279 |
|
$ |
932,659 |
|
Efficiency Ratio |
|
57.2 |
% |
|
58.3 |
% |
|
59.0 |
% |
|
51.7 |
% |
|
51.2 |
% |
|
|
57.7 |
% |
|
52.0 |
% |
Adjusted
Efficiency Ratio |
|
52.6 |
% |
|
53.4 |
% |
|
53.8 |
% |
|
49.7 |
% |
|
49.4 |
% |
|
|
52.9 |
% |
|
49.1 |
% |
|
|
|
|
|
|
|
|
|
Refer to last page of Non-GAAP reconciliations for
footnotes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures (unaudited) |
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
June 30, |
June 30, |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
ROAE
and ROATCE: |
|
|
|
|
|
|
|
|
Net
income applicable to common shares |
$ |
117,196 |
|
$ |
116,250 |
|
$ |
128,446 |
|
$ |
143,842 |
|
$ |
151,003 |
|
|
$ |
233,446 |
|
$ |
293,569 |
|
Amortization of intangibles |
|
7,425 |
|
|
5,455 |
|
|
5,869 |
|
|
6,040 |
|
|
6,060 |
|
|
|
12,880 |
|
|
12,246 |
|
Tax
effect1 |
|
(1,856 |
) |
|
(1,364 |
) |
|
(1,467 |
) |
|
(1,510 |
) |
|
(1,515 |
) |
|
|
(3,220 |
) |
|
(3,062 |
) |
Amortization of intangibles, net |
|
5,569 |
|
|
4,091 |
|
|
4,402 |
|
|
4,530 |
|
|
4,545 |
|
|
|
9,660 |
|
|
9,184 |
|
Net income applicable to common shares, excluding intangibles
amortization |
|
122,765 |
|
|
120,341 |
|
|
132,848 |
|
|
148,372 |
|
|
155,548 |
|
|
|
243,106 |
|
|
302,753 |
|
Total
adjustments, net (see pg.12) |
|
26,862 |
|
|
14,541 |
|
|
6,196 |
|
|
5,416 |
|
|
5,263 |
|
|
|
41,403 |
|
|
21,758 |
|
Adjusted net income applicable to common shares, excluding
intangibles amortization |
$ |
149,627 |
|
$ |
134,882 |
|
$ |
139,044 |
|
$ |
153,788 |
|
$ |
160,811 |
|
|
$ |
284,509 |
|
$ |
324,511 |
|
Average shareholders' equity |
$ |
5,978,976 |
|
$ |
5,565,542 |
|
$ |
5,281,487 |
|
$ |
5,294,072 |
|
$ |
5,273,802 |
|
|
$ |
5,772,259 |
|
$ |
5,220,292 |
|
Less: Average preferred equity |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
|
(243,719 |
) |
|
(243,719 |
) |
Average shareholders' common equity |
$ |
5,735,257 |
|
$ |
5,321,823 |
|
$ |
5,037,768 |
|
$ |
5,050,353 |
|
$ |
5,030,083 |
|
|
$ |
5,528,540 |
|
$ |
4,976,573 |
|
Average
goodwill and other intangible assets |
|
(2,245,405 |
) |
|
(2,098,338 |
) |
|
(2,103,935 |
) |
|
(2,109,944 |
) |
|
(2,115,894 |
) |
|
|
(2,171,872 |
) |
|
(2,119,008 |
) |
Average tangible shareholder's common equity |
$ |
3,489,852 |
|
$ |
3,223,485 |
|
$ |
2,933,833 |
|
$ |
2,940,409 |
|
$ |
2,914,189 |
|
|
$ |
3,356,668 |
|
$ |
2,857,565 |
|
ROAE |
|
8.2 |
% |
|
8.7 |
% |
|
10.2 |
% |
|
11.4 |
% |
|
12.0 |
% |
|
|
8.4 |
% |
|
11.8 |
% |
ROAE,
adjusted |
|
10.0 |
% |
|
9.8 |
% |
|
10.7 |
% |
|
11.8 |
% |
|
12.4 |
% |
|
|
9.9 |
% |
|
12.7 |
% |
ROATCE |
|
14.1 |
% |
|
14.9 |
% |
|
18.1 |
% |
|
20.2 |
% |
|
21.4 |
% |
|
|
14.5 |
% |
|
21.2 |
% |
ROATCE,
adjusted |
|
17.2 |
% |
|
16.7 |
% |
|
19.0 |
% |
|
20.9 |
% |
|
22.1 |
% |
|
|
17.0 |
% |
|
22.7 |
% |
|
|
|
|
|
|
|
|
|
Refer to last page of Non-GAAP reconciliations for
footnotes. |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures (unaudited) |
($ in thousands) |
|
|
|
|
|
|
|
As of |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
Tangible Common Equity: |
|
|
|
|
|
Shareholders' equity |
$ |
6,075,072 |
|
$ |
5,595,408 |
|
$ |
5,562,900 |
|
$ |
5,239,537 |
|
$ |
5,292,095 |
|
Less: Preferred equity |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
Shareholders' common equity |
$ |
5,831,353 |
|
$ |
5,351,689 |
|
$ |
5,319,181 |
|
$ |
4,995,818 |
|
$ |
5,048,376 |
|
Less: Goodwill and other intangible assets |
|
(2,306,204 |
) |
|
(2,095,511 |
) |
|
(2,100,966 |
) |
|
(2,106,835 |
) |
|
(2,112,875 |
) |
Tangible shareholders' common equity |
$ |
3,525,149 |
|
$ |
3,256,178 |
|
$ |
3,218,215 |
|
$ |
2,888,983 |
|
$ |
2,935,501 |
|
|
|
|
|
|
|
Total assets |
$ |
53,119,645 |
|
$ |
49,534,918 |
|
$ |
49,089,836 |
|
$ |
49,059,448 |
|
$ |
48,496,755 |
|
Less: Goodwill and other intangible assets |
|
(2,306,204 |
) |
|
(2,095,511 |
) |
|
(2,100,966 |
) |
|
(2,106,835 |
) |
|
(2,112,875 |
) |
Tangible assets |
$ |
50,813,441 |
|
$ |
47,439,407 |
|
$ |
46,988,870 |
|
$ |
46,952,613 |
|
$ |
46,383,880 |
|
|
|
|
|
|
|
Risk-weighted assets3 |
$ |
40,627,117 |
|
$ |
37,845,139 |
|
$ |
37,407,347 |
|
$ |
37,501,646 |
|
$ |
37,414,177 |
|
|
|
|
|
|
|
Tangible common equity to tangible assets |
|
6.94 |
% |
|
6.86 |
% |
|
6.85 |
% |
|
6.15 |
% |
|
6.33 |
% |
Tangible common equity to risk-weighted assets3 |
|
8.68 |
% |
|
8.60 |
% |
|
8.60 |
% |
|
7.70 |
% |
|
7.85 |
% |
Tangible Common Book Value: |
|
|
|
|
|
Common shares outstanding |
|
318,969 |
|
|
293,330 |
|
|
292,655 |
|
|
292,586 |
|
|
292,597 |
|
Tangible common book value |
$ |
11.05 |
|
$ |
11.10 |
|
$ |
11.00 |
|
$ |
9.87 |
|
$ |
10.03 |
|
|
|
|
|
|
|
1 Tax-effect calculations use management's estimate of
the full year FTE tax rates (federal + state). |
2 Calculated using the federal statutory tax rate in
effect of 21% for all periods. |
3 June 30, 2024 figures are preliminary. |
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Old National Bancorp (NASDAQ:ONB)
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から 7 2023 まで 7 2024