EVANSVILLE, Ind., Jan. 23, 2024 (GLOBE NEWSWIRE) --
Old National Bancorp (NASDAQ: ONB)
reports 4Q23 net income applicable to common shares of $128.4
million, diluted EPS of $0.44; $134.6 million and $0.46 on an
adjusted1 basis,
respectively. Full-year net income applicable to common shares of
$565.9 million, diluted EPS of $1.94; $599.2 million and $2.05 on
an adjusted1 basis,
respectively.
CEO COMMENTARY:
"Old National finished 2023 with strong reported results and record
performance on an adjusted basis for EPS, return on average
tangible equity and efficiency ratio. Tangible book value per share
grew by 17% year-over-year and, when combined with a 3.7% average
dividend yield, provided shareholders with a strong return for the
year," said CEO Jim Ryan. "Our peer-leading deposit franchise,
disciplined loan growth, strong credit quality, well-managed
expenses, and dedicated team members who are committed to our
clients and communities drove these outstanding results."
"As planned, Mike Scudder will retire as Executive Chairman of Old
National Bancorp at the end of January. I want to thank Mike for
his 38 combined years of outstanding leadership and dedication to
First Midwest and Old National. His contributions to the board were
invaluable as we completed our transformational partnership." |
FOURTH QUARTER
HIGHLIGHTS2:
Net Income
|
- Net income
applicable to common shares of $128.4 million; adjusted net income
applicable to common shares1 of
$134.6 million
- Earnings per
diluted common share ("EPS") of $0.44; adjusted EPS1 of
$0.46
|
|
|
Net Interest
Income/NIM
|
- Net interest
income on a fully taxable equivalent basis1 of $370.5
million
- Net interest
margin on a fully taxable equivalent basis1 ("NIM") of
3.39%, down 10 basis points ("bps")
|
|
|
Operating
Performance
|
- Pre-provision
net revenue1 (“PPNR”) of $186.4 million; adjusted
PPNR1 of $194.6 million
- Noninterest
expense of $284.2 million; adjusted noninterest expense1
of $255.2 million
- Efficiency
ratio1 of 59.0%; adjusted efficiency ratio1
of 53.8%
|
|
|
Deposits and
Funding
|
- Period-end
total deposits of $37.2 billion, consistent with September 30,
2023; core deposits up 0.4%
- Granular
low-cost deposit franchise; total deposit costs of 185 bps and a
cycle to date (2Q22-4Q23) total deposit beta of 35%
(interest-bearing deposit beta of 47%)
|
|
|
Loans and
Credit
Quality
|
- End-of-period
total loans3 of $33.0 billion, up 1.0%
- Provision for
credit losses4 ("provision") of $11.6 million
- Net charge-offs
of $9.7 million, or 12 bps of average loans; 3 bps excluding
purchased credit deteriorated ("PCD") loans that had an allowance
at acquisition
- 30+ day
delinquencies of 0.22% and non-performing loans of 0.83% of total
loans
|
|
|
Return
Profile &
Capital |
- Return on average tangible common equity1 of 18.1%;
adjusted return on average tangible common equity1 of
19.0%
|
|
|
Notable
Items |
- $21.6 million pre-tax gain on sale of Visa Class B restricted
shares
- $19.1 million pre-tax FDIC special assessment
- $9.9 million of pre-tax merger-related and other charges
|
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
RESULTS OF OPERATIONS
Old National reported fourth quarter 2023 net income applicable to
common shares of $128.4 million, or $0.44 per diluted common
share.
Included in fourth quarter results was a $21.6 million pre-tax
gain on sale of Visa Class B restricted shares, as well as pre-tax
charges of $19.1 million for the FDIC special assessment and
$9.9 million of merger-related and other expenses. Excluding
these transactions and realized debt securities losses from the
current quarter, adjusted net income1 was
$134.6 million, or $0.46 per diluted common share.
DEPOSITS AND FUNDING
Stable low-cost deposits including normal seasonal patterns in
public funds.
- Period-end total deposits were $37.2 billion at
December 31, 2023, consistent with prior quarter; core
deposits increased 0.4%; include normal seasonal patterns in public
funds which decreased ~$340 million.
- On average, total deposits for the fourth quarter were
$37.2 billion, an increase of 1.4%.
- Granular low-cost deposit franchise; total deposit costs of 185
bps and a cycle to date total deposit beta of 35% (interest-bearing
deposit beta of 47%).
- A loan to deposit ratio of 89% at December 31, 2023,
combined with existing funding sources, provides strong
liquidity.
LOANS
Broad-based disciplined commercial loan growth.
- Period-end total loans3 were $33.0 billion at
December 31, 2023, up 1.0% from September 30, 2023.
- Total commercial loan production in the fourth quarter was $1.3
billion; period-end commercial pipeline totaled
$1.7 billion.
- Average total loans in the fourth quarter were $32.8 billion,
an increase of $116.9 million from the third quarter of
2023.
CREDIT QUALITY
Strong credit quality continues to be a hallmark of Old
National.
- Provision4 expense in the fourth quarter of 2023 was
$11.6 million, compared to $19.1 million in the third
quarter of 2023, reflecting net charge-offs, loan growth, as well
as economic factors.
- Net charge-offs in the fourth quarter were $9.7 million, or 12
bps of average loans compared to net charge-offs of 24 bps of
average loans in the third quarter of 2023.
- Excluding PCD loans that had an allowance for credit losses
established at acquisition, net charge-offs to average loans were 3
bps for the fourth quarter of 2023.
- 30+ day delinquencies as a percentage of loans were 0.22% at
December 31, 2023, compared to 0.18% at September 30,
2023.
- Non-performing loans as a percentage of total loans were 0.83%
compared to 0.80% for the third quarter of 2023.
- Loans acquired from previous acquisitions were recorded at fair
value at the acquisition date. As of December 31, 2023, the
remaining discount on these acquired loans was $79.0 million.
- The allowance for credit losses, including the allowance for
credit losses on unfunded commitments, stood at $338.8 million, or
1.03% of total loans at December 31, 2023, compared to $336.9
million, or 1.03% of total loans at September 30, 2023.
NET INTEREST INCOME AND
MARGIN
Lower net interest income and margin compression reflective of
the rate environment.
- Net interest income on a fully taxable equivalent
basis1 decreased to $370.5 million in the fourth quarter
of 2023 compared to $380.9 million in the third quarter of
2023, driven by higher funding costs, partly offset by loan growth
and higher rates on interest-earning assets.
- Net interest margin on a fully taxable equivalent
basis1 decreased 10 bps to 3.39% compared to the third
quarter of 2023.
- Accretion income on loans and borrowings was $6.2 million,
or 6 bps of net interest margin1, in the fourth quarter
of 2023 compared to $7.5 million, or 7 bps of net interest
margin1, in the third quarter of 2023.
- Cost of total deposits was 1.85%, increasing 24 bps and the
cost of total interest-bearing deposits increased 31 bps to 2.53%
in the fourth quarter of 2023.
NONINTEREST INCOME
Increased wealth fees offset by lower mortgage fees, capital
markets income, and other income.
- Total noninterest income for the fourth quarter of 2023 was
$100.1 million and included a $21.6 million pre-tax gain on the
sale of VISA B restricted shares.
- Excluding realized debt securities gains/losses for both
periods and gain on sale of Visa Class B restricted shares for the
fourth quarter of 2023, adjusted noninterest income for the fourth
quarter was down 2.3% compared to the third quarter of 2023, due to
lower mortgage fees, capital markets income, and other income,
partially offset by an increase in wealth fees.
NONINTEREST EXPENSE
Disciplined expense management.
- Noninterest expense for the fourth quarter of 2023 was $284.2
million and included $19.1 million of FDIC special assessment
charges and $9.9 million of merger-related and other
charges.
- Excluding these items, adjusted noninterest expense for the
fourth quarter was $255.2 million, compared to $238.5 million for
the third quarter of 2023; increase was driven by $10 million in
higher performance-driven incentive accruals and $5 million in
higher amortization of tax credit investments.
- The efficiency ratio1 was 59.0%, while the adjusted
efficiency ratio1 was 53.8% for the fourth quarter of
2023 compared to 51.7% and 49.7%, respectively, for the third
quarter of 2023.
INCOME TAXES
- Income tax expense in the fourth quarter of 2023 was $36.2
million, resulting in an effective tax rate of 21.5% compared to
23.1% in the third quarter of 2023. On an adjusted fully taxable
equivalent ("FTE") basis, the effective tax rate was 24.2% in the
fourth quarter compared to 25.3% in the third quarter.
- Income tax expense included $6.7 million of tax credit
benefit.
CAPITAL
Capital ratios remain strong.
- All regulatory capital ratios grew in the quarter with
preliminary total risk-based capital up 32 bps to 12.64% and
preliminary regulatory Tier 1 capital up 29 bps to 11.35%, driven
by retained earnings.
- Tangible common equity to tangible assets was 6.85% at the end
of the fourth quarter compared to 6.15% in the third quarter of
2023.
VISA CLASS B RESTRICTED SHARES GAIN
During the fourth quarter of 2023, the Company recognized a $21.6
million pre-tax gain on sale of Visa Class B restricted shares in
noninterest income. Prior to the sale, the shares were carried at
zero cost basis due to uncertainty surrounding the ability of the
Company to transfer or otherwise liquidate the shares. At December
31, 2023, the Company does not hold any remaining Visa Class B
restricted shares.
FDIC SPECIAL ASSESSMENT
On November 16, 2023, the FDIC finalized a rule that imposes
special assessments to recover the losses to the Deposit Insurance
Fund (“DIF”) resulting from the FDIC’s use, in March 2023, of the
systemic risk exception to the least-cost resolution test under the
Federal Deposit Insurance Act in connection with the receiverships
of Silicon Valley Bank and Signature Bank. The total of the
assessments for Old National Bank is estimated at
$19.1 million, and such amount was recorded as an expense in
the quarter ending December 31, 2023.
RETIREMENT OF MIKE SCUDDER
Mike Scudder will retire as Executive Chairman and as a director of
the Company as of January 31, 2024, and Jim Ryan will succeed to
the position of Chairman of the Board of Directors, as contemplated
by the Bylaws of the Company. Mr. Ryan will continue to serve
as Chief Executive Officer of the Company as well as Chairman of
the Board and Chief Executive Officer of Old National Bank.
CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00
a.m. Central Time on Tuesday, January 23, 2024, to review
fourth quarter financial results. The live audio webcast link and
corresponding presentation slides will be available on the
Company’s Investor Relations web page at oldnational.com and
will be archived there for 12 months. To listen to the live
conference call, dial U.S. (888) 300-3045 or International (646)
568-1027, access code 5258325. A replay of the call will also be
available from approximately noon Central Time on January 23,
2024 through February 6, 2024. To access the replay, dial U.S.
(800) 770-2030 or International (647) 362-9199, Access code
5258325.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old
National Bank, which is the sixth largest commercial bank
headquartered in the Midwest. With approximately $49 billion of
assets and $29 billion of assets under management, Old National
ranks among the top 30 banking companies headquartered in the
U.S. Tracing our roots to 1834, Old National Bank has focused
on community banking by building long-term, highly valued
partnerships with clients and in the communities it serves. In
addition to providing extensive services in retail and commercial
banking, Old National offers comprehensive wealth management,
investment, and capital market services. For more information and
financial data, please visit Investor Relations at
oldnational.com.
USE OF NON-GAAP FINANCIAL MEASURES
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 gain on sale of Visa
Class B restricted shares, FDIC special assessment expense,
contract termination charges, merger-related charges associated
with completed and pending acquisitions, gains/losses on sales of
debt securities, expenses related to the tragic April 10 event at
our downtown Louisville location ("Louisville expenses"), property
optimization charges, gain on sale of health savings accounts and
the current expected credit loss ("CECL") Day 1 non-PCD provision
expense. 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 and the CECL Day 1
non-PCD provision expense 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 FDIC special assessment expense, contract termination
charges, merger-related charges, property optimization charges,
Louisville expenses, as well as adjusted noninterest income, which
excludes the gain on sale of Visa Class B restricted shares, gain
on sale of health savings accounts and gains/losses on sales of
debt securities. 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 previously provided tables and 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 SEC, in press
releases, and in oral and written statements made by us or with our
approval 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 the words "anticipate," "believe," "contemplate,"
"continue," "could," "estimate," "expect," "intend," "may,"
"outlook," "plan," "potential," "predict," "should," 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 ability to complete, or any delays
in completing, the pending merger (the “Merger”) between Old
National and CapStar Financial Holdings, Inc. (“CapStar”),
including the ability of CapStar to obtain the necessary approval
by its shareholders, the ability of Old National and CapStar to
obtain required governmental approvals of the Merger and the
ability to satisfy all of the closing conditions in the definitive
merger agreement; the expected cost savings, synergies and other
financial benefits from the Merger 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, 2022 and other
filings with the Securities and Exchange Commission. 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 |
|
Twelve Months Ended |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
December 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Income Statement |
|
|
|
|
|
|
|
|
Net
interest income |
$ |
364,408 |
|
$ |
375,086 |
|
$ |
382,171 |
|
$ |
381,488 |
|
$ |
391,090 |
|
|
$ |
1,503,153 |
|
$ |
1,327,936 |
|
FTE
adjustment1,2 |
|
6,100 |
|
|
5,837 |
|
|
5,825 |
|
|
5,666 |
|
|
5,378 |
|
|
|
23,428 |
|
|
18,414 |
|
Net
interest income - tax equivalent basis3 |
|
370,508 |
|
|
380,923 |
|
|
387,996 |
|
|
387,154 |
|
|
396,468 |
|
|
|
1,526,581 |
|
|
1,346,350 |
|
Provision
for credit losses |
|
11,595 |
|
|
19,068 |
|
|
14,787 |
|
|
13,437 |
|
|
11,408 |
|
|
|
58,887 |
|
|
144,799 |
|
Noninterest income |
|
100,094 |
|
|
80,938 |
|
|
81,629 |
|
|
70,681 |
|
|
165,037 |
|
|
|
333,342 |
|
|
399,779 |
|
Noninterest expense3 |
|
284,235 |
|
|
244,776 |
|
|
246,584 |
|
|
250,711 |
|
|
282,675 |
|
|
|
1,026,306 |
|
|
1,038,183 |
|
Net
income available to common shareholders |
$ |
128,446 |
|
$ |
143,842 |
|
$ |
151,003 |
|
$ |
142,566 |
|
$ |
196,701 |
|
|
$ |
565,857 |
|
$ |
414,169 |
|
Per Common Share Data |
|
|
|
|
|
|
|
|
Weighted
average diluted shares |
|
292,029 |
|
|
291,717 |
|
|
291,266 |
|
|
292,756 |
|
|
293,131 |
|
|
|
291,855 |
|
|
276,688 |
|
EPS,
diluted |
$ |
0.44 |
|
$ |
0.49 |
|
$ |
0.52 |
|
$ |
0.49 |
|
$ |
0.67 |
|
|
$ |
1.94 |
|
$ |
1.50 |
|
Cash
dividends |
|
0.14 |
|
|
0.14 |
|
|
0.14 |
|
|
0.14 |
|
|
0.14 |
|
|
|
0.56 |
|
|
0.56 |
|
Dividend
payout ratio2 |
|
32 |
% |
|
29 |
% |
|
27 |
% |
|
29 |
% |
|
21 |
% |
|
|
29 |
% |
|
37 |
% |
Book
value |
$ |
18.18 |
|
$ |
17.07 |
|
$ |
17.25 |
|
$ |
17.24 |
|
$ |
16.68 |
|
|
$ |
18.18 |
|
$ |
16.68 |
|
Stock
price |
|
16.89 |
|
|
14.54 |
|
|
13.94 |
|
|
14.42 |
|
|
17.98 |
|
|
|
16.89 |
|
|
17.98 |
|
Tangible book value3 |
|
11.00 |
|
|
9.87 |
|
|
10.03 |
|
|
9.98 |
|
|
9.42 |
|
|
|
11.00 |
|
|
9.42 |
|
Performance Ratios |
|
|
|
|
|
|
|
|
ROAA |
|
1.09 |
% |
|
1.22 |
% |
|
1.29 |
% |
|
1.25 |
% |
|
1.74 |
% |
|
|
1.21 |
% |
|
0.99 |
% |
ROAE |
|
10.2 |
% |
|
11.4 |
% |
|
12.0 |
% |
|
11.6 |
% |
|
16.8 |
% |
|
|
11.3 |
% |
|
8.9 |
% |
ROATCE3 |
|
18.1 |
% |
|
20.2 |
% |
|
21.4 |
% |
|
21.0 |
% |
|
31.5 |
% |
|
|
20.2 |
% |
|
16.3 |
% |
NIM
(FTE) |
|
3.39 |
% |
|
3.49 |
% |
|
3.60 |
% |
|
3.69 |
% |
|
3.85 |
% |
|
|
3.54 |
% |
|
3.47 |
% |
Efficiency ratio3 |
|
59.0 |
% |
|
51.7 |
% |
|
51.2 |
% |
|
52.8 |
% |
|
49.1 |
% |
|
|
53.7 |
% |
|
58.0 |
% |
NCOs to
average loans |
|
0.12 |
% |
|
0.24 |
% |
|
0.13 |
% |
|
0.21 |
% |
|
0.05 |
% |
|
|
0.17 |
% |
|
0.06 |
% |
ACL on
loans to EOP loans |
|
0.93 |
% |
|
0.93 |
% |
|
0.93 |
% |
|
0.94 |
% |
|
0.98 |
% |
|
|
0.93 |
% |
|
0.98 |
% |
ACL5 to EOP loans |
|
1.03 |
% |
|
1.03 |
% |
|
1.04 |
% |
|
1.05 |
% |
|
1.08 |
% |
|
|
1.03 |
% |
|
1.08 |
% |
NPLs to EOP loans |
|
0.83 |
% |
|
0.80 |
% |
|
0.91 |
% |
|
0.74 |
% |
|
0.81 |
% |
|
|
0.83 |
% |
|
0.81 |
% |
Balance Sheet (EOP) |
|
|
|
|
|
|
|
|
Total
loans |
$ |
32,991,927 |
|
$ |
32,577,834 |
|
$ |
32,432,473 |
|
$ |
31,822,374 |
|
$ |
31,123,641 |
|
|
$ |
32,991,927 |
|
$ |
31,123,641 |
|
Total
assets |
|
49,089,836 |
|
|
49,059,448 |
|
|
48,496,755 |
|
|
47,842,644 |
|
|
46,763,372 |
|
|
|
49,089,836 |
|
|
46,763,372 |
|
Total
deposits |
|
37,235,180 |
|
|
37,252,676 |
|
|
36,231,315 |
|
|
34,917,792 |
|
|
35,000,830 |
|
|
|
37,235,180 |
|
|
35,000,830 |
|
Total
borrowed funds |
|
5,331,147 |
|
|
5,556,010 |
|
|
6,034,008 |
|
|
6,740,454 |
|
|
5,586,314 |
|
|
|
5,331,147 |
|
|
5,586,314 |
|
Total shareholders' equity |
|
5,562,900 |
|
|
5,239,537 |
|
|
5,292,095 |
|
|
5,277,426 |
|
|
5,128,595 |
|
|
|
5,562,900 |
|
|
5,128,595 |
|
Capital Ratios |
|
|
|
|
|
|
|
|
Risk-based capital ratios (EOP): |
|
|
|
|
|
|
|
|
Tier 1 common equity |
|
10.70 |
% |
|
10.41 |
% |
|
10.14 |
% |
|
9.98 |
% |
|
10.03 |
% |
|
|
10.70 |
% |
|
10.03 |
% |
Tier 1 capital |
|
11.35 |
% |
|
11.06 |
% |
|
10.79 |
% |
|
10.64 |
% |
|
10.71 |
% |
|
|
11.35 |
% |
|
10.71 |
% |
Total capital |
|
12.64 |
% |
|
12.32 |
% |
|
12.14 |
% |
|
11.96 |
% |
|
12.02 |
% |
|
|
12.64 |
% |
|
12.02 |
% |
Leverage
ratio (average assets) |
|
8.83 |
% |
|
8.70 |
% |
|
8.59 |
% |
|
8.53 |
% |
|
8.52 |
% |
|
|
8.83 |
% |
|
8.52 |
% |
Equity to
assets (averages)4 |
|
10.81 |
% |
|
10.88 |
% |
|
10.96 |
% |
|
11.00 |
% |
|
10.70 |
% |
|
|
10.91 |
% |
|
11.23 |
% |
TCE to TA3 |
|
6.85 |
% |
|
6.15 |
% |
|
6.33 |
% |
|
6.37 |
% |
|
6.18 |
% |
|
|
6.85 |
% |
|
6.18 |
% |
Nonfinancial Data |
|
|
|
|
|
|
|
|
Full-time
equivalent employees |
|
3,940 |
|
|
3,981 |
|
|
4,021 |
|
|
4,023 |
|
|
3,967 |
|
|
|
3,940 |
|
|
3,967 |
|
Banking
centers |
|
258 |
|
|
257 |
|
|
256 |
|
|
256 |
|
|
263 |
|
|
|
258 |
|
|
263 |
|
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.
December 31, 2023 capital ratios are
preliminary. |
4 Includes the allowance for credit losses on loans and
unfunded 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 ALL - Allowance for loan losses 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 |
|
Twelve Months Ended |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
December 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Interest
income |
$ |
589,751 |
|
$ |
576,519 |
|
$ |
544,902 |
|
$ |
495,649 |
|
$ |
457,821 |
|
|
$ |
2,206,821 |
|
$ |
1,454,202 |
|
Less:
interest expense |
|
225,343 |
|
|
201,433 |
|
|
162,731 |
|
|
114,161 |
|
|
66,731 |
|
|
|
703,668 |
|
|
126,266 |
|
Net interest income |
|
364,408 |
|
|
375,086 |
|
|
382,171 |
|
|
381,488 |
|
|
391,090 |
|
|
|
1,503,153 |
|
|
1,327,936 |
|
Provision
for credit losses |
|
11,595 |
|
|
19,068 |
|
|
14,787 |
|
|
13,437 |
|
|
11,408 |
|
|
|
58,887 |
|
|
144,799 |
|
Net interest income
after provision for credit losses |
|
352,813 |
|
|
356,018 |
|
|
367,384 |
|
|
368,051 |
|
|
379,682 |
|
|
|
1,444,266 |
|
|
1,183,137 |
|
Wealth
and investment services fees |
|
27,656 |
|
|
26,687 |
|
|
26,521 |
|
|
26,920 |
|
|
25,668 |
|
|
|
107,784 |
|
|
100,851 |
|
Service
charges on deposit accounts |
|
18,667 |
|
|
18,524 |
|
|
17,751 |
|
|
17,003 |
|
|
18,109 |
|
|
|
71,945 |
|
|
72,501 |
|
Debit
card and ATM fees |
|
10,700 |
|
|
10,818 |
|
|
10,653 |
|
|
9,982 |
|
|
10,798 |
|
|
|
42,153 |
|
|
40,227 |
|
Mortgage
banking revenue |
|
3,691 |
|
|
5,063 |
|
|
4,165 |
|
|
3,400 |
|
|
3,888 |
|
|
|
16,319 |
|
|
23,015 |
|
Capital
markets income |
|
5,416 |
|
|
5,891 |
|
|
6,173 |
|
|
6,939 |
|
|
5,377 |
|
|
|
24,419 |
|
|
25,986 |
|
Company-owned life insurance |
|
3,773 |
|
|
3,740 |
|
|
4,698 |
|
|
3,186 |
|
|
3,108 |
|
|
|
15,397 |
|
|
14,564 |
|
Gain on
sale of Visa Class B restricted shares |
|
21,635 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
21,635 |
|
|
— |
|
Gain on
sale of health savings accounts |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
90,673 |
|
|
|
— |
|
|
90,673 |
|
Other
income |
|
9,381 |
|
|
10,456 |
|
|
11,651 |
|
|
8,467 |
|
|
7,589 |
|
|
|
39,955 |
|
|
32,050 |
|
Gains
(losses) on sales of debt securities |
|
(825 |
) |
|
(241 |
) |
|
17 |
|
|
(5,216 |
) |
|
(173 |
) |
|
|
(6,265 |
) |
|
(88 |
) |
Total noninterest income |
|
100,094 |
|
|
80,938 |
|
|
81,629 |
|
|
70,681 |
|
|
165,037 |
|
|
|
333,342 |
|
|
399,779 |
|
Salaries
and employee benefits |
|
141,649 |
|
|
131,541 |
|
|
135,810 |
|
|
137,364 |
|
|
142,459 |
|
|
|
546,364 |
|
|
575,626 |
|
Occupancy |
|
26,514 |
|
|
25,795 |
|
|
26,085 |
|
|
28,282 |
|
|
26,488 |
|
|
|
106,676 |
|
|
100,421 |
|
Equipment |
|
8,769 |
|
|
8,284 |
|
|
7,721 |
|
|
7,389 |
|
|
7,591 |
|
|
|
32,163 |
|
|
27,637 |
|
Marketing |
|
10,813 |
|
|
9,448 |
|
|
9,833 |
|
|
9,417 |
|
|
8,508 |
|
|
|
39,511 |
|
|
32,264 |
|
Technology |
|
20,493 |
|
|
20,592 |
|
|
20,056 |
|
|
19,202 |
|
|
19,951 |
|
|
|
80,343 |
|
|
84,865 |
|
Communication |
|
4,212 |
|
|
4,075 |
|
|
4,232 |
|
|
4,461 |
|
|
4,159 |
|
|
|
16,980 |
|
|
18,846 |
|
Professional fees |
|
8,250 |
|
|
5,956 |
|
|
6,397 |
|
|
6,732 |
|
|
6,360 |
|
|
|
27,335 |
|
|
39,046 |
|
FDIC
assessment |
|
27,702 |
|
|
9,000 |
|
|
9,624 |
|
|
10,404 |
|
|
5,809 |
|
|
|
56,730 |
|
|
19,332 |
|
Amortization of intangibles |
|
5,869 |
|
|
6,040 |
|
|
6,060 |
|
|
6,186 |
|
|
6,787 |
|
|
|
24,155 |
|
|
25,857 |
|
Amortization of tax credit investments |
|
7,200 |
|
|
2,644 |
|
|
2,762 |
|
|
2,761 |
|
|
5,258 |
|
|
|
15,367 |
|
|
10,961 |
|
Property
optimization |
|
— |
|
|
— |
|
|
242 |
|
|
1,317 |
|
|
26,818 |
|
|
|
1,559 |
|
|
26,818 |
|
Other
expense |
|
22,764 |
|
|
21,401 |
|
|
17,762 |
|
|
17,196 |
|
|
22,487 |
|
|
|
79,123 |
|
|
76,510 |
|
Total noninterest expense |
|
284,235 |
|
|
244,776 |
|
|
246,584 |
|
|
250,711 |
|
|
282,675 |
|
|
|
1,026,306 |
|
|
1,038,183 |
|
Income before income taxes |
|
168,672 |
|
|
192,180 |
|
|
202,429 |
|
|
188,021 |
|
|
262,044 |
|
|
|
751,302 |
|
|
544,733 |
|
Income tax expense |
|
36,192 |
|
|
44,304 |
|
|
47,393 |
|
|
41,421 |
|
|
61,309 |
|
|
|
169,310 |
|
|
116,446 |
|
Net income |
$ |
132,480 |
|
$ |
147,876 |
|
$ |
155,036 |
|
$ |
146,600 |
|
$ |
200,735 |
|
|
$ |
581,992 |
|
$ |
428,287 |
|
Preferred dividends |
|
(4,034 |
) |
|
(4,034 |
) |
|
(4,033 |
) |
|
(4,034 |
) |
|
(4,034 |
) |
|
|
(16,135 |
) |
|
(14,118 |
) |
Net income applicable to common shares |
$ |
128,446 |
|
$ |
143,842 |
|
$ |
151,003 |
|
$ |
142,566 |
|
$ |
196,701 |
|
|
$ |
565,857 |
|
$ |
414,169 |
|
|
|
|
|
|
|
|
|
|
EPS,
diluted |
$ |
0.44 |
|
$ |
0.49 |
|
$ |
0.52 |
|
$ |
0.49 |
|
$ |
0.67 |
|
|
$ |
1.94 |
|
$ |
1.50 |
|
Weighted Average Common Shares Outstanding |
|
|
|
|
|
|
|
|
Basic |
|
290,701 |
|
|
290,648 |
|
|
290,559 |
|
|
291,088 |
|
|
291,012 |
|
|
|
290,748 |
|
|
275,179 |
|
Diluted |
|
292,029 |
|
|
291,717 |
|
|
291,266 |
|
|
292,756 |
|
|
293,131 |
|
|
|
291,855 |
|
|
276,688 |
|
Common
shares outstanding (EOP) |
|
292,655 |
|
|
292,586 |
|
|
292,597 |
|
|
291,922 |
|
|
292,903 |
|
|
|
292,655 |
|
|
292,903 |
|
|
|
|
|
|
|
|
|
|
|
End of Period Balance Sheet
(unaudited) |
($ in thousands) |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Assets |
|
|
|
|
|
Cash and
due from banks |
$ |
430,866 |
|
$ |
381,343 |
|
$ |
473,023 |
|
$ |
386,879 |
|
$ |
453,432 |
|
Money
market and other interest-earnings investments |
|
744,192 |
|
|
1,282,087 |
|
|
724,863 |
|
|
727,056 |
|
|
274,980 |
|
Investments: |
|
|
|
|
|
Treasury and government-sponsored agencies |
|
2,453,949 |
|
|
2,515,249 |
|
|
2,309,285 |
|
|
2,236,412 |
|
|
2,195,175 |
|
Mortgage-backed securities |
|
5,245,691 |
|
|
4,906,290 |
|
|
5,168,458 |
|
|
5,395,680 |
|
|
5,476,719 |
|
States and political subdivisions |
|
1,693,819 |
|
|
1,705,200 |
|
|
1,760,725 |
|
|
1,785,073 |
|
|
1,827,164 |
|
Other securities |
|
779,049 |
|
|
751,404 |
|
|
802,323 |
|
|
826,575 |
|
|
730,476 |
|
Total investments |
|
10,172,508 |
|
|
9,878,143 |
|
|
10,040,791 |
|
|
10,243,740 |
|
|
10,229,534 |
|
Loans
held-for-sale, at fair value |
|
32,006 |
|
|
122,033 |
|
|
114,369 |
|
|
10,584 |
|
|
11,926 |
|
Loans: |
|
|
|
|
|
Commercial |
|
9,512,230 |
|
|
9,333,448 |
|
|
9,698,241 |
|
|
9,751,875 |
|
|
9,508,904 |
|
Commercial and agriculture real estate |
|
14,140,629 |
|
|
13,916,221 |
|
|
13,450,209 |
|
|
12,908,380 |
|
|
12,457,070 |
|
Residential real estate |
|
6,699,443 |
|
|
6,696,288 |
|
|
6,684,480 |
|
|
6,568,666 |
|
|
6,460,441 |
|
Consumer |
|
2,639,625 |
|
|
2,631,877 |
|
|
2,599,543 |
|
|
2,593,453 |
|
|
2,697,226 |
|
Total loans |
|
32,991,927 |
|
|
32,577,834 |
|
|
32,432,473 |
|
|
31,822,374 |
|
|
31,123,641 |
|
Allowance
for credit losses on loans |
|
(307,610 |
) |
|
(303,982 |
) |
|
(300,555 |
) |
|
(298,711 |
) |
|
(303,671 |
) |
Premises
and equipment, net |
|
565,396 |
|
|
565,607 |
|
|
564,299 |
|
|
566,758 |
|
|
557,307 |
|
Goodwill
and other intangible assets |
|
2,100,966 |
|
|
2,106,835 |
|
|
2,112,875 |
|
|
2,118,935 |
|
|
2,125,121 |
|
Company-owned life insurance |
|
767,902 |
|
|
774,517 |
|
|
771,753 |
|
|
770,471 |
|
|
768,552 |
|
Accrued
interest receivable and other assets |
|
1,591,683 |
|
|
1,675,031 |
|
|
1,562,864 |
|
|
1,494,558 |
|
|
1,522,550 |
|
Total assets |
$ |
49,089,836 |
|
$ |
49,059,448 |
|
$ |
48,496,755 |
|
$ |
47,842,644 |
|
$ |
46,763,372 |
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
9,664,247 |
|
$ |
10,091,352 |
|
$ |
10,532,838 |
|
$ |
10,995,083 |
|
$ |
11,930,798 |
|
Interest-bearing: |
|
|
|
|
|
Checking
and NOW accounts |
|
7,331,487 |
|
|
7,495,417 |
|
|
7,654,202 |
|
|
7,903,520 |
|
|
8,340,955 |
|
Savings
accounts |
|
5,099,186 |
|
|
5,296,985 |
|
|
5,578,323 |
|
|
6,030,255 |
|
|
6,326,158 |
|
Money
market accounts |
|
9,561,116 |
|
|
8,793,218 |
|
|
7,200,288 |
|
|
5,867,239 |
|
|
5,389,139 |
|
Other
time deposits |
|
4,565,137 |
|
|
4,398,182 |
|
|
4,012,813 |
|
|
3,361,979 |
|
|
2,775,991 |
|
Total core deposits |
|
36,221,173 |
|
|
36,075,154 |
|
|
34,978,464 |
|
|
34,158,076 |
|
|
34,763,041 |
|
Brokered
deposits |
|
1,014,007 |
|
|
1,177,522 |
|
|
1,252,851 |
|
|
759,716 |
|
|
237,789 |
|
Total deposits |
|
37,235,180 |
|
|
37,252,676 |
|
|
36,231,315 |
|
|
34,917,792 |
|
|
35,000,830 |
|
|
|
|
|
|
|
Federal
funds purchased and interbank borrowings |
|
390 |
|
|
918 |
|
|
136,060 |
|
|
618,955 |
|
|
581,489 |
|
Securities sold under agreements to repurchase |
|
285,206 |
|
|
279,061 |
|
|
311,447 |
|
|
393,018 |
|
|
432,804 |
|
Federal
Home Loan Bank advances |
|
4,280,681 |
|
|
4,412,576 |
|
|
4,771,183 |
|
|
4,981,612 |
|
|
3,829,018 |
|
Other
borrowings |
|
764,870 |
|
|
863,455 |
|
|
815,318 |
|
|
746,869 |
|
|
743,003 |
|
Total borrowed funds |
|
5,331,147 |
|
|
5,556,010 |
|
|
6,034,008 |
|
|
6,740,454 |
|
|
5,586,314 |
|
Accrued
expenses and other liabilities |
|
960,609 |
|
|
1,011,225 |
|
|
939,337 |
|
|
906,972 |
|
|
1,047,633 |
|
Total liabilities |
|
43,526,936 |
|
|
43,819,911 |
|
|
43,204,660 |
|
|
42,565,218 |
|
|
41,634,777 |
|
Preferred
stock, common stock, surplus, and retained earnings |
|
6,301,709 |
|
|
6,208,352 |
|
|
6,100,728 |
|
|
5,985,784 |
|
|
5,915,017 |
|
Accumulated other comprehensive income (loss), net of tax |
|
(738,809 |
) |
|
(968,815 |
) |
|
(808,633 |
) |
|
(708,358 |
) |
|
(786,422 |
) |
Total shareholders' equity |
|
5,562,900 |
|
|
5,239,537 |
|
|
5,292,095 |
|
|
5,277,426 |
|
|
5,128,595 |
|
Total liabilities and shareholders' equity |
$ |
49,089,836 |
|
$ |
49,059,448 |
|
$ |
48,496,755 |
|
$ |
47,842,644 |
|
$ |
46,763,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet and Interest Rates
(unaudited) |
($ in thousands) |
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
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 |
|
$ |
1,094,196 |
|
$ |
14,425 |
|
5.23 |
% |
|
$ |
980,813 |
|
$ |
13,194 |
|
5.34 |
% |
|
$ |
324,801 |
|
$ |
(259 |
) |
(0.32 |
)% |
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Treasury and government-sponsored agencies |
|
|
2,490,793 |
|
|
25,848 |
|
4.15 |
% |
|
|
2,376,864 |
|
|
23,037 |
|
3.88 |
% |
|
|
2,151,746 |
|
|
14,683 |
|
2.73 |
% |
Mortgage-backed securities |
|
|
4,913,151 |
|
|
34,209 |
|
2.79 |
% |
|
|
5,079,091 |
|
|
33,237 |
|
2.62 |
% |
|
|
5,470,753 |
|
|
35,344 |
|
2.58 |
% |
States and political subdivisions |
|
|
1,686,119 |
|
|
14,541 |
|
3.45 |
% |
|
|
1,737,037 |
|
|
14,220 |
|
3.27 |
% |
|
|
1,818,431 |
|
|
14,849 |
|
3.27 |
% |
Other securities |
|
|
749,697 |
|
|
10,440 |
|
5.57 |
% |
|
|
793,196 |
|
|
10,127 |
|
5.11 |
% |
|
|
702,730 |
|
|
7,741 |
|
4.41 |
% |
Total investments |
|
|
9,839,760 |
|
|
85,038 |
|
3.46 |
% |
|
|
9,986,188 |
|
|
80,621 |
|
3.23 |
% |
|
|
10,143,660 |
|
|
72,617 |
|
2.86 |
% |
Loans:2 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
9,351,344 |
|
|
163,921 |
|
7.01 |
% |
|
|
9,612,102 |
|
|
163,869 |
|
6.82 |
% |
|
|
9,330,906 |
|
|
132,711 |
|
5.69 |
% |
Commercial and agriculture real estate |
|
|
14,074,908 |
|
|
226,716 |
|
6.44 |
% |
|
|
13,711,156 |
|
|
219,575 |
|
6.41 |
% |
|
|
12,317,057 |
|
|
161,766 |
|
5.25 |
% |
Residential real estate loans |
|
|
6,706,425 |
|
|
62,054 |
|
3.70 |
% |
|
|
6,712,269 |
|
|
62,775 |
|
3.74 |
% |
|
|
6,373,819 |
|
|
59,532 |
|
3.74 |
% |
Consumer |
|
|
2,634,650 |
|
|
43,697 |
|
6.58 |
% |
|
|
2,614,928 |
|
|
42,322 |
|
6.42 |
% |
|
|
2,716,452 |
|
|
36,832 |
|
5.38 |
% |
Total loans |
|
|
32,767,327 |
|
|
496,388 |
|
6.06 |
% |
|
|
32,650,455 |
|
|
488,541 |
|
5.98 |
% |
|
|
30,738,234 |
|
|
390,841 |
|
5.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earning assets |
|
$ |
43,701,283 |
|
$ |
595,851 |
|
5.45 |
% |
|
$ |
43,617,456 |
|
$ |
582,356 |
|
5.34 |
% |
|
$ |
41,206,695 |
|
$ |
463,199 |
|
4.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Allowance for credit losses on loans |
|
|
(304,195 |
) |
|
|
|
|
(300,071 |
) |
|
|
|
|
(303,009 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
415,266 |
|
|
|
|
$ |
382,755 |
|
|
|
|
$ |
368,874 |
|
|
|
Other assets |
|
|
5,027,892 |
|
|
|
|
|
4,960,383 |
|
|
|
|
|
4,861,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
48,840,246 |
|
|
|
|
$ |
48,660,523 |
|
|
|
|
$ |
46,133,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Checking and NOW accounts |
|
$ |
7,280,268 |
|
$ |
25,015 |
|
1.36 |
% |
|
$ |
7,515,439 |
|
$ |
25,531 |
|
1.35 |
% |
|
$ |
8,482,651 |
|
$ |
13,189 |
|
0.62 |
% |
Savings accounts |
|
|
5,184,712 |
|
|
5,196 |
|
0.40 |
% |
|
|
5,414,775 |
|
|
4,268 |
|
0.31 |
% |
|
|
6,482,369 |
|
|
1,558 |
|
0.10 |
% |
Money market accounts |
|
|
9,244,117 |
|
|
85,717 |
|
3.68 |
% |
|
|
7,979,999 |
|
|
65,549 |
|
3.26 |
% |
|
|
5,382,254 |
|
|
8,091 |
|
0.60 |
% |
Other time deposits |
|
|
4,516,432 |
|
|
44,396 |
|
3.90 |
% |
|
|
4,229,692 |
|
|
37,110 |
|
3.48 |
% |
|
|
2,540,619 |
|
|
5,688 |
|
0.89 |
% |
Total interest-bearing core deposits |
|
|
26,225,529 |
|
|
160,324 |
|
2.43 |
% |
|
|
25,139,905 |
|
|
132,458 |
|
2.09 |
% |
|
|
22,887,893 |
|
|
28,526 |
|
0.49 |
% |
Brokered
deposits |
|
|
1,012,647 |
|
|
13,041 |
|
5.11 |
% |
|
|
1,183,228 |
|
|
14,970 |
|
5.02 |
% |
|
|
129,745 |
|
|
1,366 |
|
4.18 |
% |
Total interest-bearing deposits |
|
|
27,238,176 |
|
|
173,365 |
|
2.53 |
% |
|
|
26,323,133 |
|
|
147,428 |
|
2.22 |
% |
|
|
23,017,638 |
|
|
29,892 |
|
0.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
funds purchased and interbank borrowings |
|
|
620 |
|
|
8 |
|
5.12 |
% |
|
|
62,921 |
|
|
910 |
|
5.74 |
% |
|
|
475,431 |
|
|
4,299 |
|
3.59 |
% |
Securities sold under agreements to repurchase |
|
|
277,927 |
|
|
910 |
|
1.30 |
% |
|
|
302,305 |
|
|
710 |
|
0.93 |
% |
|
|
409,916 |
|
|
556 |
|
0.54 |
% |
Federal
Home Loan Bank advances |
|
|
4,182,877 |
|
|
38,394 |
|
3.64 |
% |
|
|
4,537,250 |
|
|
40,382 |
|
3.53 |
% |
|
|
3,266,896 |
|
|
25,609 |
|
3.11 |
% |
Other
borrowings |
|
|
869,644 |
|
|
12,666 |
|
5.78 |
% |
|
|
841,307 |
|
|
12,003 |
|
5.66 |
% |
|
|
753,401 |
|
|
6,375 |
|
3.36 |
% |
Total borrowed funds |
|
|
5,331,068 |
|
|
51,978 |
|
3.87 |
% |
|
|
5,743,783 |
|
|
54,005 |
|
3.73 |
% |
|
|
4,905,644 |
|
|
36,839 |
|
2.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
$ |
32,569,244 |
|
$ |
225,343 |
|
2.74 |
% |
|
$ |
32,066,916 |
|
$ |
201,433 |
|
2.49 |
% |
|
$ |
27,923,282 |
|
$ |
66,731 |
|
0.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits |
|
$ |
9,949,616 |
|
|
|
|
$ |
10,338,267 |
|
|
|
|
$ |
12,373,495 |
|
|
|
Other
liabilities |
|
|
1,039,899 |
|
|
|
|
|
961,268 |
|
|
|
|
|
900,448 |
|
|
|
Shareholders' equity |
|
|
5,281,487 |
|
|
|
|
|
5,294,072 |
|
|
|
|
|
4,936,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
48,840,246 |
|
|
|
|
$ |
48,660,523 |
|
|
|
|
$ |
46,133,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest rate spread |
|
|
|
2.71 |
% |
|
|
|
2.85 |
% |
|
|
|
3.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin (GAAP) |
|
|
|
3.34 |
% |
|
|
|
3.44 |
% |
|
|
|
3.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin (FTE)3 |
|
|
|
3.39 |
% |
|
|
|
3.49 |
% |
|
|
|
3.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
FTE
adjustment |
|
|
$ |
6,100 |
|
|
|
|
$ |
5,837 |
|
|
|
|
$ |
5,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet and Interest Rates
(unaudited) |
($ in thousands) |
|
|
Twelve Months Ended |
|
Twelve Months Ended |
|
|
December 31, 2023 |
|
December 31, 2022 |
|
|
Average |
Income1/ |
Yield/ |
|
Average |
Income1/ |
Yield/ |
Earning
Assets: |
|
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
Money market and other interest-earning investments |
|
$ |
826,453 |
|
$ |
39,683 |
|
4.80 |
% |
|
$ |
812,296 |
|
$ |
2,814 |
|
0.35 |
% |
Investments: |
|
|
|
|
|
|
|
|
Treasury and government-sponsored agencies |
|
|
2,322,792 |
|
|
84,771 |
|
3.65 |
% |
|
|
2,290,229 |
|
|
47,932 |
|
2.09 |
% |
Mortgage-backed securities |
|
|
5,178,940 |
|
|
136,827 |
|
2.64 |
% |
|
|
5,562,442 |
|
|
129,411 |
|
2.33 |
% |
States and political subdivisions |
|
|
1,749,722 |
|
|
57,847 |
|
3.31 |
% |
|
|
1,805,433 |
|
|
57,688 |
|
3.20 |
% |
Other securities |
|
|
776,456 |
|
|
39,166 |
|
5.04 |
% |
|
|
687,926 |
|
|
24,133 |
|
3.51 |
% |
Total investments |
|
$ |
10,027,910 |
|
$ |
318,611 |
|
3.18 |
% |
|
$ |
10,346,030 |
|
$ |
259,164 |
|
2.50 |
% |
Loans:2 |
|
|
|
|
|
|
|
|
Commercial |
|
|
9,570,639 |
|
|
639,131 |
|
6.68 |
% |
|
|
8,252,237 |
|
|
397,228 |
|
4.81 |
% |
Commercial and agriculture real estate |
|
|
13,405,946 |
|
|
825,053 |
|
6.15 |
% |
|
|
11,147,967 |
|
|
489,499 |
|
4.39 |
% |
Residential real estate loans |
|
|
6,646,684 |
|
|
243,646 |
|
3.67 |
% |
|
|
5,622,901 |
|
|
201,637 |
|
3.59 |
% |
Consumer |
|
|
2,618,098 |
|
|
164,125 |
|
6.27 |
% |
|
|
2,570,355 |
|
|
122,274 |
|
4.76 |
% |
Total loans |
|
|
32,241,367 |
|
|
1,871,955 |
|
5.81 |
% |
|
|
27,593,460 |
|
|
1,210,638 |
|
4.39 |
% |
|
|
|
|
|
|
|
|
|
Total earning assets |
|
$ |
43,095,730 |
|
$ |
2,230,249 |
|
5.18 |
% |
|
$ |
38,751,786 |
|
$ |
1,472,616 |
|
3.80 |
% |
|
|
|
|
|
|
|
|
|
Less:
Allowance for credit losses on loans |
|
|
(302,486 |
) |
|
|
|
|
(261,534 |
) |
|
|
|
|
|
|
|
|
|
|
|
Non-earning Assets: |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
413,569 |
|
|
|
|
$ |
355,391 |
|
|
|
Other assets |
|
|
4,945,394 |
|
|
|
|
|
4,404,057 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
48,152,207 |
|
|
|
|
$ |
43,249,700 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
Checking and NOW accounts |
|
$ |
7,664,183 |
|
$ |
94,263 |
|
1.23 |
% |
|
$ |
8,104,844 |
|
$ |
21,321 |
|
0.26 |
% |
Savings accounts |
|
|
5,638,766 |
|
|
14,941 |
|
0.26 |
% |
|
|
6,342,697 |
|
|
3,367 |
|
0.05 |
% |
Money market accounts |
|
|
7,249,497 |
|
|
206,634 |
|
2.85 |
% |
|
|
4,961,159 |
|
|
11,882 |
|
0.24 |
% |
Other time deposits |
|
|
3,875,984 |
|
|
123,428 |
|
3.18 |
% |
|
|
2,312,935 |
|
|
10,801 |
|
0.47 |
% |
Total interest-bearing core deposits |
|
|
24,428,430 |
|
|
439,266 |
|
1.80 |
% |
|
|
21,721,635 |
|
|
47,371 |
|
0.22 |
% |
Brokered
deposits |
|
|
913,349 |
|
|
45,094 |
|
4.94 |
% |
|
|
45,796 |
|
|
1,722 |
|
3.76 |
% |
Total interest-bearing deposits |
|
|
25,341,779 |
|
|
484,360 |
|
1.91 |
% |
|
|
21,767,431 |
|
|
49,093 |
|
0.23 |
% |
|
|
|
|
|
|
|
|
|
Federal
funds purchased and interbank borrowings |
|
|
229,386 |
|
|
11,412 |
|
4.98 |
% |
|
|
151,243 |
|
|
5,021 |
|
3.32 |
% |
Securities sold under agreements to repurchase |
|
|
332,853 |
|
|
3,299 |
|
0.99 |
% |
|
|
440,619 |
|
|
843 |
|
0.19 |
% |
Federal
Home Loan Bank advances |
|
|
4,568,964 |
|
|
161,860 |
|
3.54 |
% |
|
|
2,986,006 |
|
|
51,524 |
|
1.73 |
% |
Other
borrowings |
|
|
822,471 |
|
|
42,737 |
|
5.20 |
% |
|
|
619,659 |
|
|
19,785 |
|
3.19 |
% |
Total borrowed funds |
|
|
5,953,674 |
|
|
219,308 |
|
3.68 |
% |
|
|
4,197,527 |
|
|
77,173 |
|
1.84 |
% |
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
|
31,295,453 |
|
|
703,668 |
|
2.25 |
% |
|
|
25,964,958 |
|
|
126,266 |
|
0.49 |
% |
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
Demand
deposits |
|
$ |
10,633,806 |
|
|
|
|
$ |
11,750,306 |
|
|
|
Other
liabilities |
|
|
968,635 |
|
|
|
|
|
676,940 |
|
|
|
Shareholders' equity |
|
|
5,254,313 |
|
|
|
|
|
4,857,496 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
48,152,207 |
|
|
|
|
$ |
43,249,700 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest rate spread |
|
|
|
2.93 |
% |
|
|
|
3.31 |
% |
|
|
|
|
|
|
|
|
|
Net
interest margin (GAAP) |
|
|
|
3.49 |
% |
|
|
|
3.43 |
% |
|
|
|
|
|
|
|
|
|
Net
interest margin (FTE)3 |
|
|
|
3.54 |
% |
|
|
|
3.47 |
% |
|
|
|
|
|
|
|
|
|
FTE
adjustment |
|
|
$ |
23,428 |
|
|
|
|
$ |
18,414 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Twelve Months Ended |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
December 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
Beginning
allowance for credit losses on loans |
$ |
303,982 |
|
$ |
300,555 |
|
$ |
298,711 |
|
$ |
303,671 |
|
$ |
302,254 |
|
|
$ |
303,671 |
|
$ |
107,341 |
|
Allowance established for acquired PCD loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
89,089 |
|
Provision for credit losses on loans |
|
13,329 |
|
|
23,115 |
|
|
11,936 |
|
|
11,469 |
|
|
5,389 |
|
|
|
59,849 |
|
|
123,340 |
|
Gross charge-offs |
|
(13,202 |
) |
|
(22,750 |
) |
|
(14,331 |
) |
|
(18,180 |
) |
|
(7,081 |
) |
|
|
(68,463 |
) |
|
(27,281 |
) |
Gross recoveries |
|
3,501 |
|
|
3,062 |
|
|
4,239 |
|
|
1,751 |
|
|
3,109 |
|
|
|
12,553 |
|
|
11,182 |
|
NCOs |
|
(9,701 |
) |
|
(19,688 |
) |
|
(10,092 |
) |
|
(16,429 |
) |
|
(3,972 |
) |
|
|
(55,910 |
) |
|
(16,099 |
) |
Ending
allowance for credit losses on loans |
$ |
307,610 |
|
$ |
303,982 |
|
$ |
300,555 |
|
$ |
298,711 |
|
$ |
303,671 |
|
|
$ |
307,610 |
|
$ |
303,671 |
|
Beginning
allowance for credit losses on unfunded commitments |
$ |
32,960 |
|
$ |
37,007 |
|
$ |
34,156 |
|
$ |
32,188 |
|
$ |
26,169 |
|
|
$ |
32,188 |
|
$ |
10,879 |
|
Provision (release) for credit losses on unfunded commitments |
|
(1,734 |
) |
|
(4,047 |
) |
|
2,851 |
|
|
1,968 |
|
|
6,019 |
|
|
|
(962 |
) |
|
21,309 |
|
Ending
allowance for credit losses on unfunded commitments |
$ |
31,226 |
|
$ |
32,960 |
|
$ |
37,007 |
|
$ |
34,156 |
|
$ |
32,188 |
|
|
$ |
31,226 |
|
$ |
32,188 |
|
Allowance
for credit losses |
$ |
338,836 |
|
$ |
336,942 |
|
$ |
337,562 |
|
$ |
332,867 |
|
$ |
335,859 |
|
|
$ |
338,836 |
|
$ |
335,859 |
|
Provision
for credit losses on loans |
$ |
13,329 |
|
$ |
23,115 |
|
$ |
11,936 |
|
$ |
11,469 |
|
$ |
5,389 |
|
|
$ |
59,849 |
|
$ |
123,340 |
|
Provision
(release) for credit losses on unfunded
commitments1 |
|
(1,734 |
) |
|
(4,047 |
) |
|
2,851 |
|
|
1,968 |
|
|
6,019 |
|
|
|
(962 |
) |
|
21,309 |
|
Provision for credit losses1 |
$ |
11,595 |
|
$ |
19,068 |
|
$ |
14,787 |
|
$ |
13,437 |
|
$ |
11,408 |
|
|
$ |
58,887 |
|
$ |
144,649 |
|
NCOs /
average loans2 |
|
0.12 |
% |
|
0.24 |
% |
|
0.13 |
% |
|
0.21 |
% |
|
0.05 |
% |
|
|
0.17 |
% |
|
0.06 |
% |
Average
loans2 |
$ |
32,752,406 |
|
$ |
32,639,812 |
|
$ |
32,251,242 |
|
$ |
31,267,836 |
|
$ |
30,732,473 |
|
|
$ |
32,233,020 |
|
$ |
27,582,530 |
|
EOP
loans2 |
|
32,991,927 |
|
|
32,577,834 |
|
|
32,432,473 |
|
|
31,822,374 |
|
|
31,123,641 |
|
|
|
32,991,927 |
|
|
31,123,641 |
|
ACL on
loans / EOP loans2 |
|
0.93 |
% |
|
0.93 |
% |
|
0.93 |
% |
|
0.94 |
% |
|
0.98 |
% |
|
|
0.93 |
% |
|
0.98 |
% |
ACL / EOP
loans2 |
|
1.03 |
% |
|
1.03 |
% |
|
1.04 |
% |
|
1.05 |
% |
|
1.08 |
% |
|
|
1.03 |
% |
|
1.08 |
% |
Underperforming Assets: |
|
|
|
|
|
|
|
|
Loans 90
days and over (still accruing) |
$ |
961 |
|
$ |
1,192 |
|
$ |
303 |
|
$ |
1,231 |
|
$ |
2,650 |
|
|
$ |
961 |
|
$ |
2,650 |
|
NPLs: |
|
|
|
|
|
|
|
|
Nonaccrual loans3,4 |
|
274,821 |
|
|
261,346 |
|
|
295,509 |
|
|
234,337 |
|
|
238,178 |
|
|
|
274,821 |
|
|
238,178 |
|
TDRs
still accruing4 |
N/A |
N/A |
N/A |
N/A |
|
15,313 |
|
|
N/A |
|
15,313 |
|
Total
NPLs |
|
274,821 |
|
|
261,346 |
|
|
295,509 |
|
|
234,337 |
|
|
253,491 |
|
|
|
274,821 |
|
|
253,491 |
|
Foreclosed assets |
|
9,434 |
|
|
9,761 |
|
|
9,824 |
|
|
10,817 |
|
|
10,845 |
|
|
|
9,434 |
|
|
10,845 |
|
Total
underperforming assets |
$ |
285,216 |
|
$ |
272,299 |
|
$ |
305,636 |
|
$ |
246,385 |
|
$ |
266,986 |
|
|
$ |
285,216 |
|
$ |
266,986 |
|
Classified and Criticized Assets: |
|
|
|
|
|
|
|
|
Nonaccrual loans3 |
$ |
274,821 |
|
$ |
261,346 |
|
$ |
295,509 |
|
$ |
234,337 |
|
$ |
238,178 |
|
|
$ |
274,821 |
|
$ |
238,178 |
|
Substandard loans (still accruing) |
|
599,358 |
|
|
563,427 |
|
|
524,709 |
|
|
570,229 |
|
|
504,657 |
|
|
|
599,358 |
|
|
504,657 |
|
Loans 90
days and over (still accruing) |
|
961 |
|
|
1,192 |
|
|
303 |
|
|
1,231 |
|
|
2,650 |
|
|
|
961 |
|
|
2,650 |
|
Total classified loans - "problem loans" |
|
875,140 |
|
|
825,965 |
|
|
820,521 |
|
|
805,797 |
|
|
745,485 |
|
|
|
875,140 |
|
|
745,485 |
|
Other
classified assets |
|
48,930 |
|
|
48,998 |
|
|
40,942 |
|
|
26,441 |
|
|
24,735 |
|
|
|
48,930 |
|
|
24,735 |
|
Criticized loans - "special mention loans" |
|
843,920 |
|
|
775,526 |
|
|
614,547 |
|
|
593,307 |
|
|
636,069 |
|
|
|
843,920 |
|
|
636,069 |
|
Total classified and criticized assets |
$ |
1,767,990 |
|
$ |
1,650,489 |
|
$ |
1,476,010 |
|
$ |
1,425,545 |
|
$ |
1,406,289 |
|
|
$ |
1,767,990 |
|
$ |
1,406,289 |
|
Loans
30-89 days past due |
$ |
71,868 |
|
$ |
56,772 |
|
$ |
39,748 |
|
$ |
42,071 |
|
$ |
55,522 |
|
|
$ |
71,868 |
|
$ |
55,522 |
|
NPLs /
EOP loans2 |
|
0.83 |
% |
|
0.80 |
% |
|
0.91 |
% |
|
0.74 |
% |
|
0.81 |
% |
|
|
0.83 |
% |
|
0.81 |
% |
ACL to
NPLs |
|
123 |
% |
|
129 |
% |
|
114 |
% |
|
142 |
% |
|
132 |
% |
|
|
123 |
% |
|
132 |
% |
Under-performing assets/EOP loans2 |
|
0.86 |
% |
|
0.84 |
% |
|
0.94 |
% |
|
0.77 |
% |
|
0.86 |
% |
|
|
0.86 |
% |
|
0.86 |
% |
Under-performing assets/EOP assets |
|
0.58 |
% |
|
0.56 |
% |
|
0.63 |
% |
|
0.51 |
% |
|
0.57 |
% |
|
|
0.58 |
% |
|
0.57 |
% |
30+ day
delinquencies/EOP loans2 |
|
0.22 |
% |
|
0.18 |
% |
|
0.12 |
% |
|
0.14 |
% |
|
0.19 |
% |
|
|
0.22 |
% |
|
0.19 |
% |
1 Excludes $0.2 million of expense to establish an
allowance on held-to-maturity securities during the first quarter
of 2022. |
2 Excludes loans held-for-sale. |
3 Includes non-accruing TDRs totaling $24.0 million at
December 31, 2022. |
4 As a result of accounting guidance adopted in 2023,
the TDR classification is no longer applicable subsequent to
December 31, 2022. |
PCD -
Purchased credit deteriorated TDR - Troubled debt
restructuring |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures (unaudited) |
($ and shares in thousands, except per share data) |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
December 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Earnings Per Share: |
|
|
|
|
|
|
|
|
Net
income applicable to common shares |
$ |
128,446 |
|
$ |
143,842 |
|
$ |
151,003 |
|
$ |
142,566 |
|
$ |
196,701 |
|
|
$ |
565,857 |
|
$ |
414,169 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Gain on sale of Visa Class B restricted shares |
|
(21,635 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(21,635 |
) |
|
— |
|
Tax effect1 |
|
5,255 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
5,255 |
|
|
— |
|
Gain on sale of Visa Class B restricted shares, net |
|
(16,380 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(16,380 |
) |
|
— |
|
FDIC special assessment |
|
19,052 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
19,052 |
|
|
— |
|
Tax effect1 |
|
(4,628 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(4,628 |
) |
|
— |
|
FDIC special assessment, net |
|
14,424 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
14,424 |
|
|
— |
|
Merger-related charges2 |
|
5,529 |
|
|
6,257 |
|
|
2,372 |
|
|
14,558 |
|
|
20,314 |
|
|
|
28,716 |
|
|
131,941 |
|
Tax effect1 |
|
(1,343 |
) |
|
(1,042 |
) |
|
(277 |
) |
|
(3,172 |
) |
|
(5,160 |
) |
|
|
(5,834 |
) |
|
(36,280 |
) |
Merger-related charges, net |
|
4,186 |
|
|
5,215 |
|
|
2,095 |
|
|
11,386 |
|
|
15,154 |
|
|
|
22,882 |
|
|
95,661 |
|
Contract termination charge |
|
4,413 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
4,413 |
|
|
— |
|
Tax effect1 |
|
(1,072 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(1,072 |
) |
|
— |
|
Contract termination charge, net |
|
3,341 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
3,341 |
|
|
— |
|
Debt Securities (gains) losses |
|
825 |
|
|
241 |
|
|
(17 |
) |
|
5,216 |
|
|
173 |
|
|
|
6,265 |
|
|
88 |
|
Tax effect1 |
|
(200 |
) |
|
(40 |
) |
|
2 |
|
|
(1,137 |
) |
|
(44 |
) |
|
|
(1,375 |
) |
|
(76 |
) |
Debt securities (gains) losses, net |
|
625 |
|
|
201 |
|
|
(15 |
) |
|
4,079 |
|
|
129 |
|
|
|
4,890 |
|
|
12 |
|
Louisville expenses |
|
— |
|
|
— |
|
|
3,361 |
|
|
— |
|
|
— |
|
|
|
3,361 |
|
|
— |
|
Tax effect1 |
|
— |
|
|
— |
|
|
(392 |
) |
|
— |
|
|
— |
|
|
|
(392 |
) |
|
— |
|
Louisville expenses, net |
|
— |
|
|
— |
|
|
2,969 |
|
|
— |
|
|
— |
|
|
|
2,969 |
|
|
— |
|
Property optimization charges |
|
— |
|
|
— |
|
|
242 |
|
|
1,317 |
|
|
26,818 |
|
|
|
1,559 |
|
|
26,818 |
|
Tax effect1 |
|
— |
|
|
— |
|
|
(28 |
) |
|
(287 |
) |
|
(6,812 |
) |
|
|
(315 |
) |
|
(6,812 |
) |
Property optimization charges, net |
|
— |
|
|
— |
|
|
214 |
|
|
1,030 |
|
|
20,006 |
|
|
|
1,244 |
|
|
20,006 |
|
Gain on sale of health savings accounts |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(90,673 |
) |
|
|
— |
|
|
(90,673 |
) |
Tax effect1 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
23,031 |
|
|
|
— |
|
|
23,031 |
|
Gain on sale of health savings accounts, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(67,642 |
) |
|
|
— |
|
|
(67,642 |
) |
Day 1 non-PCD |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
96,270 |
|
Tax effect1 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(17,550 |
) |
Day 1 non-PCD, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
78,720 |
|
Total adjustments, net |
|
6,196 |
|
|
5,416 |
|
|
5,263 |
|
|
16,495 |
|
|
(32,353 |
) |
|
|
33,370 |
|
|
126,757 |
|
Net income applicable to common shares, adjusted |
$ |
134,642 |
|
$ |
149,258 |
|
$ |
156,266 |
|
$ |
159,061 |
|
$ |
164,348 |
|
|
$ |
599,227 |
|
$ |
540,926 |
|
Weighted
average diluted common shares outstanding |
|
292,029 |
|
|
291,717 |
|
|
291,266 |
|
|
292,756 |
|
|
293,131 |
|
|
|
291,855 |
|
|
276,688 |
|
EPS,
diluted |
$ |
0.44 |
|
$ |
0.49 |
|
$ |
0.52 |
|
$ |
0.49 |
|
$ |
0.67 |
|
|
$ |
1.94 |
|
$ |
1.50 |
|
Adjusted
EPS, diluted |
$ |
0.46 |
|
$ |
0.51 |
|
$ |
0.54 |
|
$ |
0.54 |
|
$ |
0.56 |
|
|
$ |
2.05 |
|
$ |
1.96 |
|
NIM: |
|
|
|
|
|
|
|
|
Net
interest income |
$ |
364,408 |
|
$ |
375,086 |
|
$ |
382,171 |
|
$ |
381,488 |
|
$ |
391,090 |
|
|
$ |
1,503,153 |
|
$ |
1,327,936 |
|
Add: FTE
adjustment3 |
|
6,100 |
|
|
5,837 |
|
|
5,825 |
|
|
5,666 |
|
|
5,378 |
|
|
|
23,428 |
|
|
18,414 |
|
Net interest income (FTE) |
$ |
370,508 |
|
$ |
380,923 |
|
$ |
387,996 |
|
$ |
387,154 |
|
$ |
396,468 |
|
|
$ |
1,526,581 |
|
$ |
1,346,350 |
|
Average
earning assets |
$ |
43,701,283 |
|
$ |
43,617,456 |
|
$ |
43,097,198 |
|
$ |
41,941,913 |
|
$ |
41,206,695 |
|
|
$ |
43,095,730 |
|
$ |
38,751,786 |
|
NIM
(GAAP) |
|
3.34 |
% |
|
3.44 |
% |
|
3.55 |
% |
|
3.64 |
% |
|
3.80 |
% |
|
|
3.49 |
% |
|
3.43 |
% |
NIM
(FTE) |
|
3.39 |
% |
|
3.49 |
% |
|
3.60 |
% |
|
3.69 |
% |
|
3.85 |
% |
|
|
3.54 |
% |
|
3.47 |
% |
|
|
|
|
|
|
|
|
|
Refer to last page of Non-GAAP reconciliations for footnotes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures (unaudited) |
($ in thousands) |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
December 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
PPNR: |
|
|
|
|
|
|
|
|
Net
interest income (FTE)3 |
$ |
370,508 |
|
$ |
380,923 |
|
$ |
387,996 |
|
$ |
387,154 |
|
$ |
396,468 |
|
|
$ |
1,526,581 |
|
$ |
1,346,350 |
|
Add:
Noninterest income |
|
100,094 |
|
|
80,938 |
|
|
81,629 |
|
|
70,681 |
|
|
165,037 |
|
|
|
333,342 |
|
|
399,779 |
|
Total revenue (FTE) |
|
470,602 |
|
|
461,861 |
|
|
469,625 |
|
|
457,835 |
|
|
561,505 |
|
|
|
1,859,923 |
|
|
1,746,129 |
|
Less:
Noninterest expense |
|
(284,235 |
) |
|
(244,776 |
) |
|
(246,584 |
) |
|
(250,711 |
) |
|
(282,675 |
) |
|
|
(1,026,306 |
) |
|
(1,038,183 |
) |
PPNR |
$ |
186,367 |
|
$ |
217,085 |
|
$ |
223,041 |
|
$ |
207,124 |
|
$ |
278,830 |
|
|
$ |
833,617 |
|
$ |
707,946 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Gain on sale of Visa Class B restricted shares |
$ |
(21,635 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
(21,635 |
) |
$ |
— |
|
Debt securities (gains) losses |
|
825 |
|
|
241 |
|
|
(17 |
) |
|
5,216 |
|
|
173 |
|
|
|
6,265 |
|
|
88 |
|
Gain on sale of health savings accounts |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(90,673 |
) |
|
|
— |
|
|
(90,673 |
) |
Noninterest income adjustments |
|
(20,810 |
) |
|
241 |
|
|
(17 |
) |
|
5,216 |
|
|
(90,500 |
) |
|
|
(15,370 |
) |
|
(90,585 |
) |
Adjusted noninterest income |
|
79,284 |
|
|
81,179 |
|
|
81,612 |
|
|
75,897 |
|
|
74,537 |
|
|
|
317,972 |
|
|
309,194 |
|
Adjusted revenue |
$ |
449,792 |
|
$ |
462,102 |
|
$ |
469,608 |
|
$ |
463,051 |
|
$ |
471,005 |
|
|
$ |
1,844,553 |
|
$ |
1,655,544 |
|
Adjustments: |
|
|
|
|
|
|
|
|
FDIC Special Assessment |
$ |
19,052 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
19,052 |
|
$ |
— |
|
Merger-related charges4 |
|
5,529 |
|
|
6,257 |
|
|
2,372 |
|
|
14,558 |
|
|
20,314 |
|
|
|
28,716 |
|
|
120,928 |
|
Contract termination charges |
|
4,413 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
4,413 |
|
|
— |
|
Louisville expenses |
|
— |
|
|
— |
|
|
3,361 |
|
|
— |
|
|
— |
|
|
|
3,361 |
|
|
— |
|
Property optimization charges |
|
— |
|
|
— |
|
|
242 |
|
|
1,317 |
|
|
26,818 |
|
|
|
1,559 |
|
|
26,818 |
|
Noninterest expense adjustments |
|
28,994 |
|
|
6,257 |
|
|
5,975 |
|
|
15,875 |
|
|
47,132 |
|
|
|
57,101 |
|
|
147,746 |
|
Adjusted total noninterest expense |
|
(255,241 |
) |
|
(238,519 |
) |
|
(240,609 |
) |
|
(234,836 |
) |
|
(235,543 |
) |
|
|
(969,205 |
) |
|
(890,437 |
) |
Adjusted PPNR |
$ |
194,551 |
|
$ |
223,583 |
|
$ |
228,999 |
|
$ |
228,215 |
|
$ |
235,462 |
|
|
$ |
875,348 |
|
$ |
765,107 |
|
Efficiency Ratio: |
|
|
|
|
|
|
|
|
Noninterest expense |
$ |
284,235 |
|
$ |
244,776 |
|
$ |
246,584 |
|
$ |
250,711 |
|
$ |
282,675 |
|
|
$ |
1,026,306 |
|
$ |
1,038,183 |
|
Less:
Amortization of intangibles |
|
(5,869 |
) |
|
(6,040 |
) |
|
(6,060 |
) |
|
(6,186 |
) |
|
(6,787 |
) |
|
|
(24,155 |
) |
|
(25,857 |
) |
Noninterest expense, excl. amortization of intangibles |
|
278,366 |
|
|
238,736 |
|
|
240,524 |
|
|
244,525 |
|
|
275,888 |
|
|
|
1,002,151 |
|
|
1,012,326 |
|
Less:
Amortization of tax credit investments |
|
(7,200 |
) |
|
(2,644 |
) |
|
(2,762 |
) |
|
(2,761 |
) |
|
(5,258 |
) |
|
|
(15,367 |
) |
|
(10,961 |
) |
Less:
Noninterest expense adjustments |
|
(28,994 |
) |
|
(6,257 |
) |
|
(5,975 |
) |
|
(15,875 |
) |
|
(47,132 |
) |
|
|
(57,101 |
) |
|
(147,746 |
) |
Adjusted noninterest expense, excluding amortization |
$ |
242,172 |
|
$ |
229,835 |
|
$ |
231,787 |
|
$ |
225,889 |
|
$ |
223,498 |
|
|
$ |
929,683 |
|
$ |
853,619 |
|
Total
revenue (FTE)3 |
$ |
470,602 |
|
$ |
461,861 |
|
$ |
469,625 |
|
$ |
457,835 |
|
$ |
561,505 |
|
|
$ |
1,859,923 |
|
$ |
1,746,129 |
|
Less:
Debt securities (gains) losses |
|
825 |
|
|
241 |
|
|
(17 |
) |
|
5,216 |
|
|
173 |
|
|
|
6,265 |
|
|
88 |
|
Total revenue excl. debt securities (gains) losses |
|
471,427 |
|
|
462,102 |
|
|
469,608 |
|
|
463,051 |
|
|
561,678 |
|
|
|
1,866,188 |
|
|
1,746,217 |
|
Less:
Gain on sale of Visa Class B restricted shares |
|
(21,635 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(21,635 |
) |
|
— |
|
Less:
Gain on sale of health savings accounts |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(90,673 |
) |
|
|
— |
|
|
(90,673 |
) |
Total adjusted revenue |
$ |
449,792 |
|
$ |
462,102 |
|
$ |
469,608 |
|
$ |
463,051 |
|
$ |
471,005 |
|
|
$ |
1,844,553 |
|
$ |
1,655,544 |
|
Efficiency Ratio |
|
59.0 |
% |
|
51.7 |
% |
|
51.2 |
% |
|
52.8 |
% |
|
49.1 |
% |
|
|
53.7 |
% |
|
58.0 |
% |
Adjusted
Efficiency Ratio |
|
53.8 |
% |
|
49.7 |
% |
|
49.4 |
% |
|
48.8 |
% |
|
47.5 |
% |
|
|
50.4 |
% |
|
51.6 |
% |
|
|
|
|
|
|
|
|
|
Refer to last page of Non-GAAP reconciliations for footnotes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures (unaudited) |
($ in thousands) |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
December 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
ROAE
and ROATCE: |
|
|
|
|
|
|
|
|
Net
income applicable to common shares |
$ |
128,446 |
|
$ |
143,842 |
|
$ |
151,003 |
|
$ |
142,566 |
|
$ |
196,701 |
|
|
$ |
565,857 |
|
$ |
414,169 |
|
Amortization of intangibles |
|
5,869 |
|
|
6,040 |
|
|
6,060 |
|
|
6,186 |
|
|
6,787 |
|
|
|
24,155 |
|
|
25,857 |
|
Tax
effect1 |
|
(1,467 |
) |
|
(1,510 |
) |
|
(1,515 |
) |
|
(1,547 |
) |
|
(1,697 |
) |
|
|
(6,039 |
) |
|
(6,139 |
) |
Amortization of intangibles, net |
|
4,402 |
|
|
4,530 |
|
|
4,545 |
|
|
4,639 |
|
|
5,090 |
|
|
|
18,116 |
|
|
19,718 |
|
Net income applicable to common shares, excluding intangibles
amortization |
|
132,848 |
|
|
148,372 |
|
|
155,548 |
|
|
147,205 |
|
|
201,791 |
|
|
|
583,973 |
|
|
433,887 |
|
Total
adjustments, net (see pg.12) |
|
6,196 |
|
|
5,416 |
|
|
5,263 |
|
|
16,495 |
|
|
(32,353 |
) |
|
|
33,370 |
|
|
126,757 |
|
Adjusted net income applicable to common shares, excluding
intangibles amortization |
$ |
139,044 |
|
$ |
153,788 |
|
$ |
160,811 |
|
$ |
163,700 |
|
$ |
169,438 |
|
|
$ |
617,343 |
|
$ |
560,644 |
|
Average
shareholders' equity |
$ |
5,281,487 |
|
$ |
5,294,072 |
|
$ |
5,273,802 |
|
$ |
5,166,188 |
|
$ |
4,936,582 |
|
|
$ |
5,254,313 |
|
$ |
4,857,496 |
|
Less:
Average preferred equity |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
|
(243,719 |
) |
|
(212,525 |
) |
Average shareholders' common equity |
$ |
5,037,768 |
|
$ |
5,050,353 |
|
$ |
5,030,083 |
|
$ |
4,922,469 |
|
$ |
4,692,863 |
|
|
$ |
5,010,594 |
|
$ |
4,644,971 |
|
Average
goodwill and other intangible assets |
|
(2,103,935 |
) |
|
(2,109,944 |
) |
|
(2,115,894 |
) |
|
(2,122,157 |
) |
|
(2,132,480 |
) |
|
|
(2,112,924 |
) |
|
(1,989,466 |
) |
Average tangible shareholder's common equity |
$ |
2,933,833 |
|
$ |
2,940,409 |
|
$ |
2,914,189 |
|
$ |
2,800,312 |
|
$ |
2,560,383 |
|
|
$ |
2,897,670 |
|
$ |
2,655,505 |
|
ROAE |
|
10.2 |
% |
|
11.4 |
% |
|
12.0 |
% |
|
11.6 |
% |
|
16.8 |
% |
|
|
11.3 |
% |
|
8.9 |
% |
ROAE,
adjusted |
|
10.7 |
% |
|
11.8 |
% |
|
12.4 |
% |
|
12.9 |
% |
|
14.0 |
% |
|
|
12.0 |
% |
|
11.6 |
% |
ROATCE |
|
18.1 |
% |
|
20.2 |
% |
|
21.4 |
% |
|
21.0 |
% |
|
31.5 |
% |
|
|
20.2 |
% |
|
16.3 |
% |
ROATCE,
adjusted |
|
19.0 |
% |
|
20.9 |
% |
|
22.1 |
% |
|
23.4 |
% |
|
26.5 |
% |
|
|
21.3 |
% |
|
21.1 |
% |
|
|
|
|
|
|
|
|
|
Refer to last page of Non-GAAP reconciliations for footnotes. |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures (unaudited) |
($ in thousands) |
|
|
|
|
|
|
|
As of |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Tangible Common Equity: |
|
|
|
|
|
Shareholders' equity |
$ |
5,562,900 |
|
$ |
5,239,537 |
|
$ |
5,292,095 |
|
$ |
5,277,426 |
|
$ |
5,128,595 |
|
Less:
Preferred equity |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
|
(243,719 |
) |
Shareholders' common equity |
$ |
5,319,181 |
|
$ |
4,995,818 |
|
$ |
5,048,376 |
|
$ |
5,033,707 |
|
$ |
4,884,876 |
|
Less:
Goodwill and other intangible assets |
|
(2,100,966 |
) |
|
(2,106,835 |
) |
|
(2,112,875 |
) |
|
(2,118,935 |
) |
|
(2,125,121 |
) |
Tangible shareholders' common equity |
$ |
3,218,215 |
|
$ |
2,888,983 |
|
$ |
2,935,501 |
|
$ |
2,914,772 |
|
$ |
2,759,755 |
|
|
|
|
|
|
|
Total
assets |
$ |
49,089,836 |
|
$ |
49,059,448 |
|
$ |
48,496,755 |
|
$ |
47,842,644 |
|
$ |
46,763,372 |
|
Less:
Goodwill and other intangible assets |
|
(2,100,966 |
) |
|
(2,106,835 |
) |
|
(2,112,875 |
) |
|
(2,118,935 |
) |
|
(2,125,121 |
) |
Tangible assets |
$ |
46,988,870 |
|
$ |
46,952,613 |
|
$ |
46,383,880 |
|
$ |
45,723,709 |
|
$ |
44,638,251 |
|
|
|
|
|
|
|
Risk-weighted assets5 |
$ |
37,407,347 |
|
$ |
37,501,646 |
|
$ |
37,414,177 |
|
$ |
36,801,707 |
|
$ |
35,950,900 |
|
|
|
|
|
|
|
Tangible
common equity to tangible assets |
|
6.85 |
% |
|
6.15 |
% |
|
6.33 |
% |
|
6.37 |
% |
|
6.18 |
% |
Tangible
common equity to risk-weighted assets5 |
|
8.60 |
% |
|
7.70 |
% |
|
7.85 |
% |
|
7.92 |
% |
|
7.68 |
% |
Tangible Common Book Value: |
|
|
|
|
|
Common
shares outstanding |
|
292,655 |
|
|
292,586 |
|
|
292,597 |
|
|
291,922 |
|
|
292,903 |
|
Tangible
common book value |
$ |
11.00 |
|
$ |
9.87 |
|
$ |
10.03 |
|
$ |
9.98 |
|
$ |
9.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Tax-effect calculations use management's estimate of
the full year FTE tax rates (federal + state).
2 Includes $11.0 million of provision for unfunded
commitments for the twelve months ended December 31, 2022.
3 Calculated using the federal statutory tax rate in
effect of 21% for all periods.
4 Excludes $11.0 million of provision for unfunded
commitments that is included in provision for credit losses for the
twelve months ended December 31, 2022.
5 December 31, 2023 figures are preliminary. |
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