Indiana | 001-15817 | 35-1539838 | ||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.)
|
One Main Street | ||||||||
Evansville, | Indiana | 47708 | ||||||
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading
Symbol(s)
|
Name of each exchange on which registered | ||||||||||||
Common stock, no par value | ONB | The NASDAQ Stock Market LLC | ||||||||||||
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A | ONBPP | The NASDAQ Stock Market LLC | ||||||||||||
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C | ONBPO | The NASDAQ Stock Market LLC |
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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. | ||
"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." |
Net Income | •Net income applicable to common shares of $117.2 million; adjusted net income applicable to common shares1 of $144.1 million |
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•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 |
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•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 |
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•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")
|
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•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
|
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•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 | |||||
•30+ day delinquencies of 0.16% and non-performing loans of 0.94% of total loans | |||||
Return Profile & Capital | •Return on average tangible common equity1 of 14.1%; adjusted return on average tangible common equity1 of 17.2% |
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Notable Items |
•Closing of CapStar partnership on April 1, 2024
•$19.4 million of pre-tax merger-related charges
•$15.3 million of pre-tax CECL Day 1 non-PCD provision expense5
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CONTACTS: | ||||||||
Media: Kathy Schoettlin | Investors: Lynell Durchholz | |||||||
(812) 465-7269 | (812) 464-1366 | |||||||
Kathy.Schoettlin@oldnational.com |
Lynell.Durchholz@oldnational.com |
Financial Highlights (unaudited) | ||||||||||||||||||||||||||
($ 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. |
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2 Cash dividends per common share divided by net income per common share (basic). |
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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.
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4 Includes the allowance for credit losses on loans and unfunded loan commitments. |
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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) | 0.00% | 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. |