4 th vs. 3 rd Quarter 2015 Highlights:
  • Earnings of $32.0 million, or $.27 per common share
  • Organic loan growth of $102.0 million, or 6.0% annualized, excluding covered loans
  • 5.3% decline in operational noninterest expenses 1
  • Tangible book value 1 increase of 2.3%

2015 Highlights:
  • Earnings of $116.7 million represent a 12.6%  increase over 2014 ($103.7 million)
  • Organic loan growth of $324.1 million or 5.1%, excluding covered, acquired & sold loans
  • Loan production of $2.8 billion is 39.2% over 2014 production
  • Credit quality remains strong
  • Transformation strategy reflects successful partnership integrations

1 Non-GAAP measures - refer to Tables 1 and 9 for Non-GAAP reconciliations

EVANSVILLE, Ind., Feb. 01, 2016 (GLOBE NEWSWIRE) -- Today Old National Bancorp (the "Company" or "Old National") (NASDAQ:ONB) reported 4 th quarter 2015 net income of $32.0 million, or $.27 per share. These reported quarterly results compare to net income of $37.7 million in the 3 rd quarter of 2015 and $29.3 million recorded in the 4 th quarter of 2014.

Included in 4 th quarter 2015 results were $11.1 million in pre-tax gains related primarily to the repurchase of 14 banking properties.  Also included in the current quarter were $2.4 million in pre-tax charges related to continued efficiency initiatives as well as a $4.8 million pre-tax charge for a litigation settlement.  Excluding the impact of these items, Old National would have reported net income of $29.4 million, or $.25 per share.  Refer to Table 2 for Non-GAAP reconciliation.

For the twelve months ended December 31, 2015, net income was $116.7 million, or $1.00 per share.  This net income represents an increase of 12.6% to full-year 2014 net income of $103.7 million, or $.95 per share.

Old National Bancorp President & CEO Bob Jones stated, "Our strong 4 th quarter performance provides a fitting ending to 2015 - a year focused on execution.  Our continued loan growth, lower expenses and excellent credit quality metrics, combined with our latest partnership and entry into the state of Wisconsin, should position us for continued success in 2016."

Committed to our Strategic Imperatives and 2015 Initiatives

Old National's continued steady performance and strong credit and capital positions can be attributed to the Company's unwavering commitment to the three strategic imperatives that have guided Old National for 10 years: 

     1. Strengthen the risk profile; 2. Enhance management discipline; and 3. Achieve consistent quality earnings.

Guided by these three strategic imperatives, Old National's primary initiatives for 2015 were: 1. Continue to grow organic revenue; 2. Improve operating leverage; and 3. Prudent use of capital, all while maintaining a strong credit culture.

Grow Organic Revenue

Balance Sheet and Net Interest Margin

Total period-end loans, including loans held for sale, increased $95.5 million to $6.962 billion from $6.867 billion at September 30, 2015.  Excluding the change in covered loans, Old National had organic loan growth of $102.0 million, or 6.0% annualized, in the 4 th quarter.  The Louisville, Kentucky market, including the Company's new Lexington office, and the Indianapolis and Vincennes, Indiana markets were the best producing regions, increasing $21.1 million, $20.2 million and $14.5 million, respectively, over September 30, 2015, loan balances. 

At December 31, 2015, total core deposits, including demand and interest-bearing deposits, decreased $259.0 million to $8.302 billion, compared to the $8.561 billion at September 30, 2015. 

Net interest income in the 4 th quarter of 2015 totaled $85.9 million compared to $97.1 million in the 3 rd quarter of 2015, and $90.0 million in the 4 th quarter of 2014.  Net interest income on a fully taxable equivalent basis was $91.1 million for the 4 th quarter of 2015 and represented a net interest margin on total average earning assets of 3.50%.  These results compare to net interest income on a fully taxable equivalent basis of $102.1 million and a margin of 3.94% in the 3 rd quarter of 2015.   In the 4 th quarter of 2014, Old National reported net interest income on a fully taxable equivalent basis of $94.4 million and a margin of 3.83%.  Refer to Table 6 for Non-GAAP taxable equivalent reconciliations.

As part of net interest income, Old National recorded $12.3 million, or a 48 basis point contribution to net interest margin, in accretion income in the 4 th quarter of 2015 related to purchase accounting discounts from various acquisitions.  Total accretion income in the 3 rd quarter of 2015 and the 4 th quarter of 2014 reported by Old National was $20.6 million, or an 80 basis point net interest margin contribution, and $16.6 million, or a 68 basis point net interest margin contribution, respectively.  Excluding accretion income, the core net interest margin was 3.02%, 3.14% and 3.15%, for the 4 th quarter of 2015, the 3 rd quarter of 2015 and the 4 th quarter of 2014, respectively.

Fees, Service Charges and Other Revenue

Total fees, service charges and other revenue represent an important component of Old National's revenue stream and amounted to $58.9 million for the 4 th quarter of 2015.  This compares to $58.8 million in the 3 rd quarter of 2015 and $45.6 million in the 4 th quarter of 2014.  Included in the 4 th quarter of 2015 is a $10.8 million gain relating to the repurchase of 14 banking properties.  Impacting the 3 rd quarter of 2015 was a $15.4 million net gain relating to branch sales as well as a $6.6 million unfavorable change in the indemnification asset relating to the 2011 FDIC-assisted acquisition of Integra Bank.  Impacting year-over-year comparisons is the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  This Amendment became effective for Old National beginning July 1, 2015, resulting in a decline in interchange income of $2.7 million in both the 3 rd and 4 th quarters of 2015 as compared to the 4 th quarter of 2014.     

Improve Operating Leverage

Old National reported total noninterest expenses of $102.5 million in the 4 th quarter of 2015 compared to $102.6 million in the 3 rd quarter of 2015 and $100.1 million recorded in the 4 th quarter of 2014.  Included in the 4 th quarter of 2015 are $2.4 million in pre-tax charges related to various efficiency initiatives (including branch consolidations and divestitures and severance) as well as a $4.8 million pre-tax charge for the estimated full cost of the anticipated settlement of the previously disclosed overdraft class action litigation.  This compares to pre-tax charges of $2.0 million relating to branch sales and consolidations and integration charges in the 3 rd quarter of 2015 and $3.1 million relating to integration activity in the 4 th quarter of 2014.  Also impacting year-over-year comparisons are the operational costs associated with the United Bancorp, Inc., LSB Financial Corp., and Founders Financial Corporation acquisitions, which closed in July and November of 2014, and January of 2015, respectively, adding 27 branches to the Old National franchise.  As of December 31, 2015, Old National has 160 branches throughout its franchise.

Prudent Use of Capital

Old National's capital position remained well above regulatory guideline minimums at December 31, 2015, with regulatory tier 1 and total risk-based capital ratios of 12.6% and 13.3%, respectively, compared to 12.5% and 13.2% at September 30, 2015, and 12.9% and 13.6% at December 30, 2014.  Old National repurchased 306 thousand shares of stock in the open market during the 4 th quarter of 2015.

The following table presents Old National's risk-based and leverage ratios compared to industry requirements:
  Fully Phased-In Regulatory Guidelines Minimum Consolidated ONB  at December 31, 2015
Tier 1 Risk-Based Capital Ratio > 8.5%   12.6 %
Total Risk-Based Capital Ratio > 10.5%   13.3 %
Common Equity Tier 1 Capital Ratio   > 7.0%   12.1 %
Tier 1 Leverage Capital Ratio > 4.0%   8.5 %

Old National's ratio of tangible common equity to tangible assets was 7.66% at December 31, 2015, compared to 7.56% at September 30, 2015, and 8.09% at December 31, 2014.  Refer to Table 9 for Non-GAAP reconciliations. 

Maintain a Strong Credit Culture

During the 4 th quarter of 2015, Old National recorded provision expense of $.5 million and had net recoveries of $.5 million.  These results compare to $.2 million in provision expense and net recoveries of $.9 million, and a provision expense of $.9 million and net charge-offs of $1.3 million, in the 3 rd quarter of 2015 and the 4 th quarter of 2014, respectively.  Net recoveries for the 4 th quarter of 2015 were .03% of average total loans on an annualized basis, compared to net recoveries of .05% of average total loans in the 3 rd quarter of 2015 and net charge-offs of .08% of average total loans in the 4 th quarter of 2014. 

Delinquencies remained low as Old National reported 30+ day delinquent loans of .31% in the 4 th quarter compared to .41% in the 3 rd quarter of 2015.  Old National's 90+ day delinquent loans for the 4 th quarter were .01% compared to .01% in the 3 rd quarter of 2015.

For the full year of 2015, Old National reported net recoveries of $1.5 million, or .02% of average total loans, and recorded provision expense of $2.9 million.  This compares to the full year of 2014 with net charge-offs of $2.4 million, or .04% of average total loans, and provision expense of $3.1 million. 

Old National's allowance for loan losses at December 31, 2015, was $52.2 million, or .75% of total loans, compared to an allowance of $51.2 million, or .75% of total loans at September 30, 2015, and $47.8 million, or .76% of total loans, at December 31, 2014.  The coverage ratio (allowance to non-performing loans) stood at 36% at December 31, 2015, compared to 33% at September 30, 2015, and 31% at December 31, 2014.  Impacting these ratios are the Company's recent acquisitions in which the loan portfolios were booked at fair value in accordance with ASC 805.  Therefore, no allowance for loan losses is recorded on the acquisition date. 

The following table presents certain credit quality metrics related to Old National's loan portfolio:
($ in millions)   4Q15 3Q15 4Q14
Non-Performing Loans (NPLs) $ 146.7   $ 154.8   $ 153.7  
Problem Loans (Including NPLs)   213.3     252.4     250.9  
Special Mention Loans   134.3     141.2     199.3  
Net Charge-Off(Recoveries) Ratio   (0.03 )%   (0.05 )%   0.08 %
Provision for Loan Losses $ 0.5   $ 0.2   $ 0.9  
Allowance for Loan Losses   52.2     51.2     47.8  

Anchor Partnership and 2016 Initiatives

"Our initial integration efforts in Wisconsin have reinforced our belief that not only is Old National entering dynamic markets, but we are doing so with a high quality team," stated CEO Bob Jones.  "This expansion of our footprint will be supported through the continued focus on execution in our current markets, which will continue to be guided by the same strategic initiatives that led to our successful 2015: 1. Continue to grow organic revenue; 2. Improve the operating leverage of the Company; and 3. Prudent use of capital.  We believe the partnerships we have closed to date position the franchise in growth markets where our community bank brand and style bode well for our future performance."

About Old National

Old National Bancorp (NASDAQ:ONB), the holding company of Old National Bank, is the largest financial services holding company headquartered in Indiana and, with $12.0 billion in assets, ranks among the top 100 banking companies in the U.S. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients. Today, Old National's footprint includes Indiana, Kentucky and Michigan.  In addition to providing extensive services in retail and commercial banking, wealth management, investments and brokerage, Old National also owns Old National Insurance, one of the 100 largest brokers in the U.S. For more information and financial data, please visit Investor Relations at oldnational.com.

Conference Call

Old National will hold a conference call at 10:00 a.m. Central Time on Monday, February 1, 2016, to discuss 4 th quarter and full-year 2015 financial results, strategic developments, and the Company's financial outlook.  The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Company's Investor Relations web page at oldnational.com and will be archived there for 12 months.  A replay of the call will also be available from 7:00 a.m. Central Time on February 2 through February 16.  To access the replay, dial 1-855-859-2056, Conference ID Code 24105575.

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National's results of operations or financial position.  Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this release or the Quarterly Financial Trends supplement to this earnings release, which can be found on Investor Relations at oldnational.com.

Table 1 :  N on-GAAP Reconciliation-Operational Noninterest Expenses

($ in millions) 4Q15 3Q15
Total Noninterest Expenses As Reported $ 102.5   $ 102.6  
Anticipated Settlement of Previously Disclosed Overdraft Litigation   (4.8 )   -  
Branch Consolidation/Divestiture, Integration and Severance Charges   (2.4 )   (2.0 )
Operational Noninterest Expenses $ 95.3   $ 100.6  

Table 2 :  N on-GAAP Reconciliation-Adjusted Net Income
($ in millions, shares in 000s) Reported 4Q15 Adjustments Adjusted 4Q15
Total Revenues (FTE Basis) $ 151.7   $ (11.1 ) $ 140.6  
Less: Provision for Loan Losses   (0.5 )   -     (0.5 )
Less: Noninterest Expenses   (102.5 )   7.2     (95.3 )
Income before Income Taxes $ 48.7   $ (3.9 ) $ 44.8  
Income Taxes   (16.7 )   1.3     (15.4 )
Net Income $ 32.0   $ (2.6 ) $ 29.4  
Average Shares Outstanding   114,716     -     114,716  
Earnings Per Share $ 0.27   $ (0.02 ) $ 0.25    

Forward-Looking Statement

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about the expected timing, completion, financial benefits and other effects of the proposed merger between ONB and Anchor. Forward-looking statements can be identified by the use of the words "anticipate," "believe," "expect," "intend," "could" and "should," and other words of similar meaning. These forward-looking statements express management's current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: expected cost savings, synergies and other financial benefits from the proposed merger might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the requisite shareholder and regulatory approvals for the proposed merger might not be obtained; satisfaction of other closing conditions; delay in closing the proposed merger; the reaction to the transaction of the companies' customers and employees; market, economic, operational, liquidity, credit and interest rate risks associated with ONB's and Anchor's businesses; competition; government legislation and policies (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations); ability of ONB and Anchor to execute their respective business plans (including integrating the ONB and Anchor businesses); changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; failure or disruption of our information systems; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions of litigations; other matters discussed in this press release and other factors identified in ONB's Annual Report on Form 10-K and other periodic filings with the SEC. These forward-looking statements are made only as of the date of this press release, and neither ONB nor Anchor undertakes an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.

Additional Information About the Old National Bancorp/Anchor BanCorp Wisconsin Inc. Transaction

Communications in this press release do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, ONB will file with the SEC a Registration Statement on Form S-4 that will include a Proxy Statement of Anchor and a Prospectus of ONB, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the Registration Statement and the Proxy Statement/Prospectus regarding the merger when it becomes available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information.  A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about ONB and Anchor, may be obtained at the SEC's Internet site (http://www.sec.gov).  You will also be able to obtain these documents, free of charge, from ONB at www.oldnational.com under the tab "Investor Relations" and then under the heading "Financial Information" or from Anchor by accessing Anchor's website at www.anchorbank.com under the tab "About Us."

ONB and Anchor and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Anchor in connection with the proposed merger.  Information about the directors and executive officers of ONB is set forth in the proxy statement for ONB's 2015 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 13, 2015.  Information about the directors and executive officers of Anchor is set forth in the proxy statement for Anchor's 2015 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 27, 2015.  Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the proposed merger when it becomes available.  Free copies of this document may be obtained as described in the preceding paragraph.
                 
  TABLE 3  
  Financial Highlights  
  ($ and shares in thousands, except per share data)  
                 
    Three Months Ended    Twelve Months Ended   
    December 31, September 30, December 31,   December 31, December 31,  
      2015     2015     2014       2015     2014    
  Income Statement              
  Net interest income $   85,922   $   97,104   $   90,043     $   366,116   $   366,370    
  Provision for loan losses   484     167     869       2,923     3,097    
  Noninterest income   60,614     59,744     50,495       230,632     165,129    
  Net income   31,985     37,669     29,250       116,716     103,667    
                 
                 
  Per Common Share Data (Diluted)              
  Net income available to common shareholders $   0.27   $   0.33   $   0.25     $   1.00   $   0.95    
  Average diluted shares outstanding   114,716     115,153     116,592       116,255     108,365    
  Book value   13.05     12.89     12.54       13.05     12.54    
  Stock price   13.56     13.93     14.88       13.56     14.88    
  Dividend payout ratio   43 %   36 %   44 %     48 %   46 %  
  Tangible common book value (1)   7.62     7.45     7.67       7.62     7.67    
                 
                 
  Performance Ratios              
  Return on average assets   1.07 %   1.26 %   1.03 %     0.98 %   0.99 %  
  Return on average common equity   8.63 %   10.27 %   8.06 %     7.88 %   7.91 %  
  Net interest margin (FTE)   3.50 %   3.94 %   3.83 %     3.72 %   4.22 %  
  Efficiency ratio (2)   66.42 %   61.97 %   69.54 %     68.65 %   70.03 %  
  Net charge-offs (recoveries) to average loans   -0.03 %   -0.05 %   0.08 %     -0.02 %   0.04 %  
  Allowance for loan losses to ending loans   0.75 %   0.75 %   0.76 %     0.75 %   0.76 %  
  Non-performing loans to ending loans   2.11 %   2.26 %   2.43 %     2.11 %   2.43 %  
                 
                 
  Balance Sheet              
  Total loans $   6,948,405   $   6,847,898   $   6,318,201     $   6,948,405   $   6,318,201    
  Total assets   11,991,527     11,913,786     11,646,051       11,991,527     11,646,051    
  Total deposits   8,400,860     8,621,325     8,490,664       8,400,860     8,490,664    
  Total borrowed funds   1,920,246     1,593,843     1,469,911       1,920,246     1,469,911    
  Total shareholders' equity   1,491,170     1,476,002     1,465,764       1,491,170     1,465,764    
                 
                 
  Capital Ratios (1)              
  Risk-based capital ratios (EOP):              
    Tier 1 common equity   12.1 %   12.1 %   N/A       12.1 %   N/A    
    Tier 1   12.6 %   12.5 %   12.9 %     12.6 %   12.9 %  
    Total   13.3 %   13.2 %   13.6 %     13.3 %   13.6 %  
  Leverage ratio (to average assets)   8.5 %   8.4 %   8.8 %     8.5 %   8.8 %  
                 
  Total equity to assets (averages)   12.42 %   12.30 %   12.79 %     12.42 %   12.57 %  
  Tangible common equity to tangible assets   7.66 %   7.56 %   8.09 %     7.66 %   8.09 %  
                 
                 
  Nonfinancial Data              
  Full-time equivalent employees    2,652     2,675     2,938       2,652     2,938    
  Number of branches   160     164     195       160     195    
                 
  (1) See non-GAAP measures on Table 9.     
  (2) Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions.  This presentation excludes intangible amortization and net securities gains, as is common in other company releases, and better aligns with true operating performance.  
  FTE - Fully taxable equivalent basis  EOP - End of period actual balances    N/A - Not applicable    
                 

 
                   
    TABLE 4    
    Income Statement    
   ($ and shares in thousands, except per share data)   
                   
    Three Months Ended    Twelve Months Ended     
    December 31, September 30, December 31,   December 31, December 31,    
      2015     2015     2014       2015     2014      
  Interest income $   94,960   $   105,671   $   97,318     $   399,189   $   389,729      
  Less:  interest expense   9,038     8,567     7,275       33,073     23,359      
    Net interest income   85,922     97,104     90,043       366,116     366,370      
                   
  Wealth management fees   8,142     8,290     8,251       34,395     28,737      
  Service charges on deposit accounts   10,039     11,010     11,997       43,372     47,433      
  Debit card and ATM fees   3,646     3,887     6,818       21,340     25,835      
  Mortgage banking revenue   2,145     3,170     2,390       12,540     6,017      
  Insurance premiums and commissions   10,491     9,938     9,932       42,714     41,466      
  Investment product fees   4,375     4,427     4,467       17,924     17,136      
  Company-owned life insurance   2,064     2,195     1,982       8,604     6,924      
  Change in Indemnification Asset   57     (6,582 )   (6,246 )     (9,034 )   (43,162 )    
  Other income   17,958     22,477     5,963       52,851     24,650      
    Total fees, service charges and other revenue   58,917     58,812     45,554       224,706     155,036      
                   
  Gains (losses) on sales of securities (1)   1,662     861     4,869       5,718     9,730      
  Gains (losses) on derivatives   35     71     72       208     363      
    Total noninterest income   60,614     59,744     50,495       230,632     165,129      
                   
    Total revenues   146,536     156,848     140,538       596,748     531,499      
                   
  Salaries and employee benefits   56,782     58,151     58,237       243,875     219,301      
  Occupancy   11,796     13,009     12,722       53,239     49,099      
  Equipment   2,856     2,977     2,933       13,183     12,453      
  Marketing   1,769     2,727     2,590       10,410     9,591      
  Data processing   6,020     6,622     6,918       27,309     25,382      
  Communication   2,106     2,301     2,907       9,586     10,476      
  Professional fees   2,808     2,435     3,733       11,756     16,390      
  Loan expenses   1,811     1,420     1,696       6,373     6,107      
  Supplies   565     445     688       2,275     2,958      
  FDIC assessment   1,913     1,733     1,704       7,503     6,261      
  Other real estate owned expense   482     584     330       2,703     3,101      
  Intangible amortization   2,816     2,872     2,761       11,746     9,120      
  Other expense   10,745     7,341     2,897       30,974     16,199      
    Total noninterest expense   102,469     102,617     100,116       430,932     386,438      
                   
  Provision for loan losses   484     167     869       2,923     3,097      
    Income before income taxes   43,583     54,064     39,552       162,893     141,964      
    Total taxes   11,598     16,395     10,302       46,177     38,297      
    Net income $   31,985   $   37,669   $   29,250     $   116,716   $   103,667      
                   
  Diluted Earnings Per Share                  
  Net income $   0.27   $   0.33   $   0.25     $   1.00   $   0.95      
                   
  Average Common Shares Outstanding                
    Basic     114,103       114,590       115,924         115,726       107,818      
    Diluted     114,716       115,153       116,592         116,255       108,365      
                   
  Common shares outstanding (EOP)     114,297       114,523       116,847         114,297       116,847      
                   
   (1) Includes $0.1 million other-than-temporary impairment (OTTI) in the twelve months ended December 31, 2014.     
                   

                     
    TABLE 5              
    Balance Sheet (EOP)  
    ($ in thousands)  
                     
        December 31,   September 30,   December 31,    
          2015       2015       2014      
      Assets              
        Federal Reserve Bank account $   125,724     $   10,901     $   19,954      
        Money market investments     2,783         4,590         12,138      
        Investments:              
        Treasury and government sponsored agencies     768,564         797,713         868,324      
        Mortgage-backed securities     1,082,403         1,154,134         1,265,310      
        States and political subdivisions     1,100,501         1,079,678         967,740      
        Other securities     428,951         429,392         445,567      
        Total investments     3,380,419         3,460,917         3,546,941      
        Loans held for sale     13,810         18,783         213,490      
        Loans:              
        Commercial     1,804,615         1,740,394         1,629,600      
        Commercial and agriculture real estate     1,847,821         1,845,889         1,711,110      
        Consumer:               
        Home equity     359,954         362,055         360,320      
        Other consumer loans     1,183,814         1,145,232         950,307      
        Subtotal of commercial and consumer loans     5,196,204         5,093,570         4,651,337      
        Residential real estate     1,644,614         1,640,289         1,519,156      
           Covered loans     107,587         114,039         147,708      
        Total loans     6,948,405         6,847,898         6,318,201      
        Total earning assets     10,471,141         10,343,089         10,110,724      
                     
      Allowance for loan losses     (52,233 )       (51,226 )       (47,849 )    
      Nonearning Assets:              
        Cash and due from banks     91,311         157,919         207,871      
        Premises and equipment     196,676         130,341         135,892      
        Goodwill and intangible assets     619,942         622,758         569,539      
        Company-owned life insurance     341,294         339,352         325,617      
        FDIC Indemnification Asset     9,030         8,905         20,603      
        Other real estate owned     12,498         13,705         16,362      
        Other assets      301,868         348,943         307,292      
        Total nonearning assets     1,572,619         1,621,923         1,583,176      
        Total assets $   11,991,527     $   11,913,786     $   11,646,051      
                     
      Liabilities and Equity              
        Noninterest-bearing demand deposits $   2,488,855     $   2,388,854     $   2,427,748      
        NOW accounts     2,133,536         2,001,077         2,176,879      
        Savings accounts     2,201,352         2,201,066         2,222,557      
        Money market accounts     577,050         1,043,135         574,462      
        Other time deposits     901,352         926,981         1,052,508      
        Total core deposits     8,302,145         8,561,113         8,454,154      
        Brokered CD's     98,715         60,212         36,510      
        Total deposits     8,400,860         8,621,325         8,490,664      
                     
        Short-term borrowings     628,499         474,894         551,309      
        Other borrowings     1,291,747         1,118,949         918,603      
        Total borrowed funds     1,920,246         1,593,843         1,469,911      
      Accrued expenses and other liabilities     179,251         222,616         219,712      
        Total liabilities     10,500,357         10,437,784         10,180,287      
                     
      Common stock, surplus, and retained earnings     1,525,967         1,510,382         1,497,319      
      Other comprehensive income     (34,797 )       (34,380 )       (31,555 )    
        Total shareholders' equity     1,491,170         1,476,002         1,465,764      
        Total liabilities and shareholders' equity $   11,991,527     $   11,913,786     $   11,646,051      
                     
      EOP - End of period actual balances     
                     

                             
  TABLE 6        
  Average Balance Sheet and Interest Rates  
  ($ in thousands)  
                             
                             
      Three Months Ended   Three Months Ended   Three Months Ended  
      December 31, 2015   September 30, 2015   December 31, 2014  
      Average Income (1)/ Yield/   Average Income (1)/ Yield/   Average Income (1)/ Yield/  
  Earning Assets:   Balance Expense Rate   Balance Expense Rate   Balance Expense Rate  
    Fed Funds sold, resell agr, Fed Reserve                         
    Bank account, and money market $   94,660   $   29     0.12 %   $   33,215   $   4     0.05 %   $   21,398   $   20     0.38 %  
    Investments:                          
    Treasury and gov't sponsored agencies     770,472       3,658     1.90 %       820,424       3,926     1.91 %       839,774       4,171     1.99 %  
    Mortgage-backed securities     1,134,521       5,356     1.89 %       1,123,701       5,179     1.84 %       1,255,051       5,297     1.69 %  
    States and political subdivisions     1,088,917       12,935     4.75 %       1,052,494       12,610     4.79 %       908,662       11,325     4.99 %  
    Other securities       431,541       2,635     2.44 %       440,588       2,773     2.52 %       433,442       2,766     2.54 %  
    Total investments       3,425,451       24,584     2.87 %       3,437,207       24,488     2.85 %       3,436,929       23,558     2.73 %  
    Loans:                          
    Commercial (2)       1,773,804       16,861     3.72 %       1,765,028       20,106     4.46 %       1,661,863       18,919     4.45 %  
    Commercial and agriculture real estate (2)     1,860,536       27,496     5.78 %       1,873,068       34,303     7.23 %       1,737,031       29,566     6.66 %  
    Consumer:                          
    Home equity (2)       424,013       4,218     3.95 %       433,517       4,230     3.87 %       423,370       3,501     3.28 %  
    Other consumer loans (2)     1,160,652       9,747     3.33 %       1,140,330       9,976     3.47 %       965,511       9,467     3.89 %  
    Subtotal commercial and consumer loans     5,219,005       58,322     4.43 %       5,195,768       68,615     5.24 %       4,787,775       61,453     5.09 %  
    Residential real estate loans (2)     1,675,707       17,188     4.10 %       1,698,501       17,529     4.13 %       1,612,419       16,611     4.10 %  
                             
    Total loans (2)       6,894,712       75,510     4.32 %       6,894,269       86,144     4.92 %       6,400,194       78,064     4.81 %  
                             
    Total earning assets $   10,414,823   $   100,123     3.80 %   $   10,364,691   $   110,636     4.22 %   $   9,858,522   $   101,642     4.09 %  
                             
  Interest-bearing Liabilities:                        
    NOW accounts   $   2,063,815   $   289     0.06 %   $   2,099,658   $   148     0.03 %   $   2,190,919   $   184     0.03 %  
    Savings accounts       2,207,640       784     0.14 %       2,278,466       797     0.14 %       2,204,138       751     0.14 %  
    Money market accounts     828,501       263     0.13 %       607,060       104     0.07 %       557,842       72     0.05 %  
    Other time deposits       909,985       2,123     0.93 %       973,729       2,351     0.96 %       1,048,183       2,331     0.88 %  
    Total interest-bearing deposits     6,009,941       3,459     0.23 %       5,958,913       3,401     0.23 %       6,001,083       3,338     0.22 %  
    Brokered CD's        80,951       141     0.69 %       43,201       74     0.68 %       38,004       43     0.45 %  
    Total interest-bearing deposits and CD's     6,090,892       3,600     0.23 %       6,002,114       3,474     0.23 %       6,039,087       3,381     0.22 %  
                             
    Short-term borrowings        479,760       144     0.12 %       527,368       140     0.11 %       437,388       84     0.08 %  
    Other borrowings        1,196,166       5,294     1.75 %       1,230,541       4,952     1.59 %       827,658       3,811     1.81 %  
    Total borrowed funds     1,675,926       5,438     1.29 %       1,757,909       5,092     1.15 %       1,265,047       3,895     1.19 %  
                             
    Total interest-bearing liabilities $   7,766,818   $   9,038     0.46 %   $   7,760,023   $   8,567     0.44 %   $   7,304,134   $   7,276     0.40 %  
                             
  Net interest rate spread         3.34 %         3.78 %         3.69 %  
                             
  Net interest margin (FTE)       3.50 %         3.94 %         3.83 %  
                             
  FTE adjustment     $   5,163         $   4,965         $   4,324      
                             
  (1) Interest income is reflected on a fully taxable equivalent basis (FTE).     
  (2) Includes loans held for sale.   
                             

                   
  TABLE 7      
  Average Balance Sheet and Interest Rates
  ($ in Thousands)
                   
                   
      Twelve Months Ended   Twelve Months Ended
      December 31, 2015   December 31, 2014
      Average Income (1)/ Yield/   Average Income (1)/ Yield/
  Earning Assets:   Balance Expense Rate   Balance Expense Rate
    Fed Funds sold, resell agr, Fed Reserve               
    Bank account, and money market $   43,383   $   47     0.11 %   $   20,148   $   42     0.21 %
   Investments:                
    Treasury and gov't sponsored agencies     829,728       16,080     1.94 %       760,566       15,612     2.05 %
    Mortgage-backed securities     1,137,565       20,645     1.81 %       1,281,412       23,130     1.81 %
    States and political subdivisions     1,023,983       49,162     4.80 %       889,343       45,112     5.07 %
    Other securities       444,520       10,903     2.45 %       418,714       11,322     2.70 %
    Total investments       3,435,796       96,790     2.82 %       3,350,035       95,176     2.84 %
   Loans:                
    Commercial (2)       1,754,141       75,900     4.33 %       1,527,436       70,471     4.61 %
    Commercial and agriculture real estate (2)     1,862,055       118,237     6.35 %       1,474,136       130,780     8.87 %
    Consumer:                
    Home equity (2)       439,657       17,480     3.98 %       374,320       15,281     4.08 %
    Other consumer loans (2)     1,115,430       39,370     3.53 %       839,571       34,074     4.06 %
    Subtotal commercial and consumer loans     5,170,591       250,987     4.85 %       4,215,463       250,606     5.94 %
    Residential real estate loans (2)     1,712,636       70,908     4.14 %       1,497,122       60,904     4.07 %
                   
    Total loans (2)       6,883,919       321,895     4.68 %       5,712,585       311,510     5.45 %
                   
    Total earning assets $   10,363,098   $   418,732     4.04 %   $   9,082,768   $   406,728     4.48 %
                   
  Interest-bearing Liabilities:              
    NOW accounts   $   2,160,019   $   758     0.04 %   $   1,989,794   $   595     0.03 %
    Savings accounts       2,299,357       3,199     0.14 %       2,104,076       2,875     0.14 %
    Money market accounts     677,414       577     0.09 %       490,247       250     0.05 %
    Other time deposits       1,001,436       9,270     0.93 %       996,405       9,453     0.91 %
    Total interest-bearing deposits     6,138,226       13,804     0.23 %       5,580,522       13,173     0.24 %
    Brokered CD's        62,346       364     0.58 %       27,973       153     0.55 %
    Total interest-bearing deposits and CD's     6,200,572       14,168     0.23 %       5,608,494       13,326     0.24 %
                   
    Short-term borrowings        482,241       493     0.10 %       404,919       310     0.08 %
    Other borrowings        1,061,681       18,412     1.73 %       753,358       9,723     1.29 %
    Total borrowed funds     1,543,922       18,905     1.22 %       1,158,277       10,033     0.86 %
                   
    Total interest-bearing liabilities $   7,744,494   $   33,073     0.43 %   $   6,766,771   $   23,359     0.35 %
                   
  Net interest rate spread         3.61 %         4.12 %
                   
  Net interest margin (FTE)       3.72 %         4.22 %
                   
  FTE adjustment      $   19,543         $   16,999    
                   
  (1) Interest income is reflected on a fully taxable equivalent basis (FTE). 
  (2) Includes loans held for sale.   
                   

               
  TABLE 8
  Asset Quality (EOP)
  ($ in thousands)
               
    Three Months Ended   Twelve Months Ended
    December 31, September 30, December 31,   December 31, December 31,
      2015     2015     2014       2015     2014  
               
  Beginning allowance for loan losses $   51,226   $   50,191   $   48,279     $   47,849   $   47,145  
               
    Provision for loan losses     484       167       869         2,923       3,097  
               
    Gross charge-offs     (3,499 )     (2,468 )     (3,524 )       (10,818 )     (11,216 )
    Gross recoveries     4,022       3,336       2,225         12,279       8,823  
    Net (charge-offs) recoveries     523       869       (1,298 )       1,461       (2,393 )
               
  Ending allowance for loan losses $   52,233   $   51,226   $   47,849     $   52,233   $   47,849  
               
  Net charge-offs (recoveries) / average loans (1)   -0.03 %   -0.05 %   0.08 %     -0.02 %   0.04 %
               
  Average loans outstanding (1) $   6,891,197   $   6,791,601   $   6,387,085     $   6,756,135   $   5,703,294  
               
  EOP loans outstanding (1) $   6,948,405   $   6,847,898   $   6,318,201     $   6,948,405   $   6,318,201  
               
  Allowance for loan loss / EOP loans (1)   0.75 %   0.75 %   0.76 %     0.75 %   0.76 %
               
  Underperforming Assets:            
    Loans 90 Days and over (still accruing) $   916   $   575   $   457     $   916   $   457  
               
    Non-performing loans:            
    Nonaccrual loans (2)     132,373       140,666       140,860         132,373       140,860  
    Renegotiated loans     14,285       14,121       12,858         14,285       12,858  
    Total non-performing loans     146,658       154,787       153,718         146,658       153,718  
               
    Foreclosed properties     12,498       13,705       16,362         12,498       16,362  
               
  Total underperforming assets $   160,072   $   169,067   $   170,537     $   160,072   $   170,537  
               
  Classified loans - "problem loans" $   213,294   $   252,397   $   250,899     $   213,294   $   250,899  
  Other classified assets     6,857       22,111       26,479         6,857       26,479  
  Criticized loans - "special mention loans"     134,347       141,187       199,334         134,347       199,334  
  Total classified and criticized assets $   354,498   $   415,695   $   476,712     $   354,498   $   476,712  
               
  Non-performing loans / EOP loans (1)   2.11 %   2.26 %   2.43 %     2.11 %   2.43 %
               
  Allowance to non-performing loans (3)   36 %   33 %   31 %     36 %   31 %
               
  Under-performing assets / EOP loans (1)   2.30 %   2.47 %   2.70 %     2.30 %   2.70 %
               
  EOP total assets $   11,991,527   $   11,913,786   $   11,646,051     $   11,991,527   $   11,646,051  
               
  Under-performing assets / EOP assets   1.33 %   1.42 %   1.46 %     1.33 %   1.46 %
               
   EOP - End of period actual balances   
   (1) Excludes loans held for sale.   
   (2) Includes renegotiated loans totaling $30.0 million at December 31, 2015, $38.6 million at September 30, 2015, and $22.1 million at December 31, 2014. 
   (3) Includes acquired loans that were recorded at fair value in accordance with ASC 805 at the date of acquisition.  As such, the credit risk was incorporated in the fair value recorded and no allowance for loan losses was recorded on the acquisition date. 
               
               

                 
    TABLE 9
  Non-GAAP Measures
  ($ in thousands)
                 
      Three Months Ended    Twelve Months Ended 
      December 31, September 30, December 31,   December 31, December 31,
        2015     2015     2014       2015     2014  
                 
    Actual EOP Balances            
    GAAP shareholders' equity  $   1,491,170   $   1,476,002   $   1,465,764     $   1,491,170   $   1,465,764  
                 
    Deduct:            
    Goodwill      584,634       584,634       530,845         584,634       530,845  
    Intangibles      35,308       38,124       38,694         35,308       38,694  
          619,942       622,758       569,539         619,942       569,539  
                 
    Tangible shareholders' equity   $   871,228   $   853,244   $   896,225     $   871,228   $   896,225  
                 
    Actual EOP Balances            
    GAAP assets  $   11,991,527   $   11,913,786   $   11,646,051     $   11,991,527   $   11,646,051  
                 
    Add:            
    Trust overdrafts     29       127       227         29       227  
                 
    Deduct:            
    Goodwill      584,634       584,634       530,845         584,634       530,845  
    Intangibles      35,308       38,124       38,694         35,308       38,694  
          619,942       622,758       569,539         619,942       569,539  
                 
    Tangible Assets   $   11,371,614   $   11,291,155   $   11,076,739     $   11,371,614   $   11,076,739  
                 
    Risk weighted assets     7,718,065       7,597,349       7,334,027         7,718,065       7,334,027  
                 
    Actual EOP Balances            
    GAAP net income $   31,985   $   37,669   $   29,250     $   116,716   $   103,667  
                 
    Add:            
    Intangible amortization (net of tax)     2,545       2,596       2,461         10,593       7,797  
                 
    Tangible net income $   34,530   $   40,265   $   31,711     $   127,309   $   111,464  
                 
    Tangible Ratios              
    Return on tangible common equity   15.85 %   18.88 %   14.15 %     14.61 %   12.44 %
    Return on tangible assets    1.21 %   1.43 %   1.15 %     1.12 %   1.01 %
    Tangible common equity to tangible assets    7.66 %   7.56 %   8.09 %     7.66 %   8.09 %
    Tangible common equity to risk weighted assets    11.29 %   11.23 %   12.22 %     11.29 %   12.22 %
    Tangible common book value (1)     7.62       7.45       7.67         7.62       7.67  
                 
    Tangible common equity presentation includes other comprehensive income as is common in other company releases. 
    (1) Tangible common shareholders' equity divided by common shares issued and outstanding at period-end. 
                 
    Tier 1 capital $   968,772   $   950,915   $   944,649     $   968,772   $   944,649  
                 
    Deduct:            
    Trust Preferred Securities     45,000       45,000       45,000         45,000       45,000  
    Additional Tier 1 capital deductions     (10,725 )     (11,392 )     -          (10,725 )     -   
          34,275       33,608       45,000         34,275       45,000  
                 
    Tier 1 common equity   $   934,497   $   917,307   $   899,649     $   934,497   $   899,649  
                 
    Risk weighted assets     7,718,065       7,597,349       7,334,027         7,718,065       7,334,027  
                 
    Tier 1 common equity to risk weighted assets     12.11 %   12.07 %   12.27 %     12.11 %   12.27 %
                 
Contacts:Media:Kathy A. Schoettlin - (812) 465-7269Executive Vice President - CommunicationsFinancial Community:Lynell J. Walton - (812) 464-1366Senior Vice President - Investor Relations

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