•   Agreement reached to sell Old National Insurance
  •   Anchor BanCorp Wisconsin Inc. partnership closes

1 ST QUARTER 2016 HIGHLIGHTS:
  • Earnings of $27.0 million, or $0.24 per common share
  • Adjusted earnings 1 of $28.1 million, or $0.25 per common share
  • Increase in Core Net Interest Margin 1
  • Organic loan growth of 4.6% annualized, excluding covered loans
  • Tangible book value 1 increase of 2.4%; current dividend yield of 3.9%
  • 7.8% decline in operational noninterest expenses 1 from 1 st quarter 2015

1 Non-GAAP measures - refer to Tables 1, 2, 3 and 9 for Non-GAAP reconciliations

EVANSVILLE, Ind., May 02, 2016 (GLOBE NEWSWIRE) -- Today Old National Bancorp (the "Company" or "Old National") (NASDAQ:ONB) reported 1 st quarter 2016 net income of $27.0 million, or $0.24 per share. These quarterly results compare to net income of $32.0 million in the 4 th quarter of 2015 and $20.9 million recorded in the 1 st quarter of 2015.

Included in 1 st quarter 2016 results were $1.4 million in pre-tax charges relating to the merger and integration of Anchor BanCorp.  Excluding the impact of these charges, Old National would have reported net income of $28.1 million, or $0.25 per share.  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 4 th 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 $0.25 per share in the 4 th quarter of 2015.  Included in 1 st quarter 2015 results were $4.4 million in severance expense and $2.6 million in charges relating to branch consolidations.  Also included in the 1 st quarter of 2015 were $4.0 million of pre-tax merger and integration expenses.  Excluding the impact of these pre-tax charges, Old National would have reported net income of $28.5 million, or $0.24 per share, in the 1 st quarter of 2015.  Refer to Table 1 for Non-GAAP reconciliations.  Impacting Old National's year over year comparison is the sale of 17 banking centers located in the Southern Illinois market and the Central Indiana and Ohio market.  These sales were both completed on August 14, 2015.

Old National also announced today that it has agreed to sell the Company's insurance agency subsidiary, ONB Insurance Group, Inc., d/b/a Old National Insurance, to Prime Risk Partners. Upon the completion of the transaction, Old National Insurance will operate under the name ONI Risk Partners. Included in the sale are Old National Insurance's two third-party administrator subsidiaries, Employee Plans, LLC and JWF Specialty.  The transaction is expected to close in the 2nd quarter of 2016, and is subject to customary closing conditions.

Additionally, Old National announced today that as of May 1, 2016, it has closed on its partnership with Anchor BanCorp Wisconsin Inc. ("Anchor") in Madison, Wisc.  This partnership, which provides an entry point for Old National into the most vibrant communities in the state of Wisconsin, includes 46 banking centers and adds $1.7 billion in total loans and $1.8 billion in total deposits, based on March 31, 2016, balances.

Also today, the Company announced its quarterly cash dividend of $0.13 per share.  The dividend is payable June 15, 2016, to shareholders of record on June 1, 2016.  For purposes of broker trading, the ex-date of the cash dividend is May 27, 2016.

"These actions, when taken together, are examples of how Old National is focusing on creating sustainable long term value for our shareholders," said Old National President and CEO Bob Jones.  "The sale of our insurance group should improve our efficiency ratio, allow us to increase our tangible book value and helps fund the cash portion of the Anchor partnership. Speaking of Anchor, this partnership is off to a great start and our optimism for the benefits that our shareholders will derive is very strong. We feel confident that given the quality of the quarter when combined with these actions, Old National is well positioned for a year of continued growth."

Committed to our Strategic Imperatives and 2016 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 11 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 2016 are: 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

At March 31, 2016, total period-end loans, including loans held for sale, increased $67.4 million to $7.030 billion from $6.962 billion at December 31, 2015.  Excluding the change in covered loans, Old National had organic loan growth of $79.6 million, or 4.6% annualized, in the 1 st quarter.  The Louisville, Kentucky market, including the Company's new Lexington office, the Kalamazoo, Michigan market and the South Bend, Indiana market were the best producing regions, increasing $39.5 million (28.5% annualized), $16.0 million (41.3% annualized) and $15.0 million (30.5% annualized), respectively, over December 31, 2015, loan balances. 

Total core deposits, including demand and interest-bearing deposits, increased $120.1 million to $8.422 billion, compared to $8.302 billion at December 31, 2015.  This increase represents an annualized growth rate of 5.8%. 

For the 1 st quarter of 2016, net interest income totaled $85.6 million compared to $85.9 million in the 4 th quarter of 2015, and $91.0 million in the 1 st quarter of 2015.  Net interest income on a fully taxable equivalent basis was $90.8 million for the 1 st quarter of 2016 and represented a net interest margin on total average earning assets of 3.52%.  These results compare to net interest income on a fully taxable equivalent basis of $91.1 million and a margin of 3.50% in the 4 th quarter of 2015.   In the 1 st quarter of 2015, Old National reported net interest income on a fully taxable equivalent basis of $95.7 million and a margin of 3.70%.  Refer to Table 2 for Non-GAAP taxable equivalent reconciliations.

As part of net interest income, Old National recorded $11.2 million, or a 44 basis point contribution to net interest margin, in accretion income in the 1 st quarter of 2016 related to purchase accounting discounts from various acquisitions.  Total accretion income in the 4 th quarter of 2015 and the 1 st quarter of 2015 reported by Old National was $12.3 million, or a 48 basis point net interest margin contribution, and $14.6 million, or a 56 basis point net interest margin contribution, respectively.  Excluding accretion income, the core net interest margin was 3.08% in the 1 st quarter of 2016, compared to 3.02% in the 4 th quarter of 2015 and 3.14% in the 1 st quarter of 2015.  Refer to Table 2 for Non-GAAP reconciliations.

Noninterest Income

Total noninterest income amounted to $49.5 million for the 1 st quarter of 2016.  This compares to $60.6 million in the 4 th quarter of 2015 and $55.3 million in the 1 st quarter of 2015.  Included in the 4 th quarter of 2015 is a $10.8 million gain relating to the repurchase of 14 banking properties.  Card revenues were impacted by 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 the 1 st quarter of 2016 as compared to the 1 st quarter of 2015.     

Improve Operating Leverage

Noninterest expenses for the 1 st quarter of 2016 totaled $98.4 million for Old National.  This compares to $102.5 million in the 4 th quarter of 2015 and $116.2 million in the 1 st quarter of 2015.  Included in the 1 st quarter of 2016 are $1.4 million in pre-tax charges related to the merger and integration of Anchor.  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 $4.4 million in severance, $2.6 million relating to branch consolidations and $4.0 million in pre-tax merger and integration expenses in the 1 st quarter of 2015.  As of March 31, 2016, Old National has 160 branches throughout its franchise.

Prudent Use of Capital

Old National's capital position remained well above regulatory guideline minimums at March 31, 2016, with regulatory tier 1 and total risk-based capital ratios of 12.5% and 13.2%, respectively, compared to 12.6% and 13.3% at December 31, 2015, and 11.9% and 12.6% at March 31, 2015.  Old National did not repurchase any stock in the open market during the 1 st quarter of 2016.

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 March 31, 2016
Tier 1 Risk-Based Capital Ratio > 8.5%   12.5 %
Total Risk-Based Capital Ratio > 10.5%   13.2 %
Common Equity Tier 1 Capital Ratio   > 7.0%   12.0 %
Tier 1 Leverage Capital Ratio > 4.0%   8.6 %

Old National's ratio of tangible common equity to tangible assets was 7.88% at March 31, 2016, compared to 7.66% at December 31, 2015, and 7.52% at March 31, 2015.  Refer to Table 9 for Non-GAAP reconciliations. 

Maintain a Strong Credit Culture

Old National recorded provision expense of $0.1 million and had net charge-offs of $1.6 million in the 1 st quarter of 2016.  These results compare to $0.5 million in provision expense and net recoveries of $0.5 million, and provision expense of $1 thousand and net recoveries of $1.0 million, in the 4 th quarter of 2015 and the 1 st quarter of 2015, respectively.  Net charge-offs for the 1 st quarter of 2016 were 0.09% of average total loans on an annualized basis, compared to net recoveries of 0.03% of average total loans in the 4 th quarter of 2015 and net recoveries of 0.06% of average total loans in the 1 st quarter of 2015. 

Delinquencies remained low as Old National reported 30+ day delinquent loans of 0.30% in the 1 st quarter of 2016 compared to 0.31% in the 4 th quarter of 2015.  Old National's 90+ day delinquent loans for the 1 st quarter were 0.01% compared to 0.01% in the 4 th quarter of 2015.

At March 31, 2016, Old National's allowance for loan losses was $50.7 million, or 0.72% of total loans, compared to an allowance of $52.2 million, or 0.75% of total loans at December 31, 2015, and $48.9 million, or 0.73% of total loans, at March 31, 2015.  The coverage ratio (allowance to non-performing loans) stood at 38% at March 31, 2016, compared to 36% at December 31, 2015, and 29% at March 31, 2015.  Impacting these ratios are the Company's prior 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)   1Q16 4Q15 1Q15
Non-Performing Loans (NPLs) $ 132.0   $ 146.7   $ 168.4  
Problem Loans (Including NPLs)   200.3     213.3     253.2  
Special Mention Loans   132.5     134.3     190.0  
Net Charge-Off(Recoveries) Ratio   0.09 %   (0.03 )%   (0.06 )%
Provision for Loan Losses $ 0.1   $ 0.5   $ 0.0  
Allowance for Loan Losses   50.7     52.2     48.9  

Strategic Action - Sale of Insurance Subsidiary

The sale of Old National Insurance provides Old National the opportunity to focus on its core community banking business, improve its operating leverage and enhance its overall capital position.  As a result of this transaction, Old National expects to receive approximately $93.0 million in cash and recognize an after-tax gain of approximately $16 million to $18 million.  Based on March 31, 2016, reported results, goodwill and intangible assets of approximately $47.7 million will be eliminated as part of this transaction and result in a $0.56 improvement in the Company's tangible book value per share.  Old National anticipates the redeployment of capital will support ongoing organic loan growth as well as future potential strategic opportunities.  Old National Insurance had total revenues of approximately $42.7 million and direct expenses of approximately $36.3 million in 2015.  As of March 31, 2016, Old National Insurance had 279 employees.

The parties will enter into a marketing services agreement so that Old National and ONI Risk Partners can continue to work closely to provide Old National clients with outstanding insurance products and services.  Current Old National Insurance Chairman and CEO Tom Flynn will remain with ONI Risk Partners.  In addition, ONI Risk Partners will remain an Indiana corporation with its headquarters located in Indianapolis.

"Prime Risk is an excellent partner for the clients and employees of Old National Insurance.  They are committed to investing in the future of Old National Insurance and the communities it serves," said Old National Bancorp CEO Bob Jones. "We anticipate tremendous synergy between our companies as we move forward, which will allow Old National clients to continue to work with the same insurance representatives they have grown to trust and enjoy the same great products and service they have come to expect."

Strategic Action - Closing of Anchor BanCorp Wisconsin Inc. Partnership

The strategic partnership between Old National and Anchor represents the Company's entry into the most vibrant markets in the state of Wisconsin.  Old National's integration activities and cost savings projections remain on track.  Anchor's 1 st quarter 2016 performance also met Old National's modeling assumptions, as Anchor's 1 st quarter net income was $3.1 million.  Included in Anchor's 1 st quarter results were $3.8 million in pre-tax merger and integration charges.  Anchor's end-of-period loan balances grew 12.5% on an annualized basis from December 31, 2015, balances.  At March 31, 2016, Anchor's total shareholders' equity stood at $372.6 million and its tangible common equity ratio was 16.70%.

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. With $11.9 billion in assets at March 31, 2016, it 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, Michigan and Wisconsin. In addition to providing extensive services in retail and commercial banking, investments and brokerage, Old National's Wealth Management Division is a Top 100 Fiduciary.  For more information and financial data, please visit Investor Relations at oldnational.com.

Conference CallOld National will hold a conference call at 10:00 a.m. Central Time on Monday, May 2, 2016, to discuss 1 st quarter 2016 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 May 3 through May 17.  To access the replay, dial 1-855-859-2056, Conference ID Code 86208935. Use of Non-GAAP Financial MeasuresThis earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National's results of operations or financial position.  Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

  Table 1 :  n on-GAAP Reconciliations-Adjusted Net Income
($ in millions, shares in 000s) Reported 1Q16 Adjustments Adjusted 1Q16
Total Revenues (FTE Basis) $ 140.3   $ -   $ 140.3  
Less: Provision for Loan Losses   (0.1 )   -     (0.1 )
Less: Noninterest Expenses   (98.4 )   1.4     (97.0 )
Income before Income Taxes (FTE) $ 41.8   $ 1.4   $ 43.2  
Income Taxes   (14.9 )   (0.2 )   (15.1 )
Net Income $ 26.9   $ 1.2   $ 28.1  
Average Shares Outstanding   114,563     -     114,563  
Earnings Per Share $ 0.24   $ 0.01   $ 0.25  

($ 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 (FTE) $ 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  

($ in millions, shares in 000s) Reported 1Q15 Adjustments Adjusted 1Q15
Total Revenues (FTE Basis) $ 151.0   $ -   $ 151.0  
Less: Provision for Loan Losses   -     -     -  
Less: Noninterest Expenses   (116.2 )   11.0     (105.2 )
Income before Income Taxes (FTE) $ 34.8   $ 11.0   $ 45.8  
Income Taxes   (13.9 )   (3.4 )   (17.3 )
Net Income $ 20.9   $ 7.6   $ 28.5  
Average Shares Outstanding   119,076     -     119,076  
Earnings Per Share $ 0.18   $ 0.06   $ 0.24  

Table 2 :  n on-GAAP Reconciliations-Core Net Interest Margin
($ in millions) 1Q16 4Q15 1Q15
Net Interest Income $ 85.6   $ 85.9   $ 91.0  
Taxable equivalent Adjustment   5.2     5.2     4.7  
Net Interest Income - Taxable Equivalent $ 90.8   $ 91.1   $ 95.7  
Less Accretion 1   11.2     12.3     14.6  
Net Interest Income - Taxable Equivalent Less Accretion $ 79.6   $ 78.8   $ 81.1  
Average Earning Assets $ 10,331.0   $ 10,414.8   $ 10,346.2  
Core Net Interest Margin - Fully Taxable Equivalent   3.08 %   3.02 %   3.14 %
1 Accretion related to purchase accounting discounts on acquired loan portfolios.

Table 3 :  n on-GAAP Reconciliation-Operational Noninterest Expenses
($ in millions) 1Q16 1Q15
Total Noninterest Expenses As Reported $ 98.4   $ 116.2  
Branch Consolidation/Divestiture, Integration and Severance Charges   (1.4 )   (11.0 )
Operational Noninterest Expenses $ 97.0   $ 105.2  

Forward-Looking Statement This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements include, but are not limited to, descriptions of Old National Bancorp's ("Old National's") financial condition, results of operations, asset and credit quality trends and profitability.  Forward-looking statements can be identified by the use of the words "anticipate," "believe," "expect," "intend," "could" and "should," and other words of similar meaning.  These forward-looking statements express management's current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties 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 recently completed mergers might not be realized within the expected timeframes and costs or difficulties relating to integration matters might be greater than expected; market, economic, operational, liquidity, credit and interest rate risks associated with Old National's business; 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 Old National to execute its business plan (including integrating the recently completed merger with Anchor); 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; disruptive technologies in payment systems and other services traditionally provided by banks; computer hacking and other cybersecurity threats; other matters discussed in this press release and other factors identified in our Annual Report on Form 10-K and other periodic filings with the SEC.  These forward-looking statements are made only as of the date of this press release, and Old National does not undertake an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.

  TABLE 4        
  Financial Highlights  
  ($ and shares in thousands, except per share data)  
           
    Three Months Ended  
    March 31, December 31, March 31,  
      2016     2015     2015    
  Income Statement        
  Net interest income $ 85,643   $ 85,922   $ 90,993    
  Provision for loan losses   91     484     1    
  Noninterest income   49,451     60,614     55,295    
  Noninterest expense   98,355     102,469     116,156    
  Net income   26,977     31,985     20,906    
           
           
  Per Common Share Data (Diluted)        
  Net income available to common shareholders $ 0.24   $ 0.27   $ 0.18    
  Average diluted shares outstanding   114,563     114,716     119,076    
  Book value   13.19     13.05     12.68    
  Stock price   12.19     13.56     14.19    
  Dividend payout ratio   54 %   43 %   68 %  
  Tangible common book value (1)   7.80     7.62     7.28    
           
           
  Performance Ratios        
  Return on average assets   0.91 %   1.07 %   0.70 %  
  Return on average common equity   7.18 %   8.63 %   5.56 %  
  Net interest margin (FTE)   3.52 %   3.50 %   3.70 %  
  Efficiency ratio (2)   68.76 %   66.42 %   76.27 %  
  Net charge-offs (recoveries) to average loans   0.09 %   -0.03 %   -0.06 %  
  Allowance for loan losses to ending loans   0.72 %   0.75 %   0.73 %  
  Non-performing loans to ending loans   1.88 %   2.11 %   2.53 %  
           
           
  Balance Sheet        
  Total loans $ 7,007,074   $ 6,948,405   $ 6,652,539    
  Total assets   11,932,326     11,991,527     11,949,850    
  Total deposits   8,588,895     8,400,860     8,927,520    
  Total borrowed funds   1,662,191     1,920,246     1,332,130    
  Total shareholders' equity   1,508,643     1,491,170     1,483,271    
           
           
  Capital Ratios (1)        
  Risk-based capital ratios (EOP):        
  Tier 1 common equity   12.0 %   12.1 %   11.5 %  
  Tier 1   12.5 %   12.6 %   11.9 %  
  Total   13.2 %   13.3 %   12.6 %  
  Leverage ratio (to average assets)   8.6 %   8.5 %   8.3 %  
           
  Total equity to assets (averages)   12.63 %   12.42 %   12.60 %  
  Tangible common equity to tangible assets   7.88 %   7.66 %   7.52 %  
           
           
  Nonfinancial Data        
  Full-time equivalent employees   2,615     2,652     2,983    
  Number of branches   160     160     196    
           
  (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 netsecurities 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 5        
    Income Statement    
   ($ and shares in thousands, except per share data)   
           
    Three Months Ended  
    March 31, December 31, March 31,  
      2016     2015     2015    
  Interest income $   95,329   $   94,960   $   98,594    
  Less:  interest expense   9,686     9,038     7,601    
    Net interest income   85,643     85,922     90,993    
  Provision for loan losses   91     484     1    
    Net interest income after provision for loan losses   85,552     85,438     90,992    
           
  Wealth management fees   8,121     8,142     8,520    
  Service charges on deposit accounts   9,639     10,039     11,045    
  Debit card and ATM fees   3,785     3,646     6,732    
  Mortgage banking revenue   2,920     2,145     2,963    
  Insurance premiums and commissions   13,121     10,491     12,113    
  Investment product fees   3,905     4,375     4,403    
  Company-owned life insurance   2,038     2,064     2,152    
  Change in Indemnification Asset   (655 )   57     (968 )  
  Other income   4,372     5,651     4,068    
  Net gain on branch divestitures     -      272       -     
  Recognition of deferred gain on sale leaseback transactions   1,052     12,035     1,524    
  Gains (losses) on sales of securities   1,106     1,662     2,683    
  Gains (losses) on derivatives   47     35     60    
    Total noninterest income   49,451     60,614     55,295    
           
  Salaries and employee benefits   56,972     56,782     69,694    
  Occupancy   12,844     11,796     14,293    
  Equipment   2,893     2,856     3,904    
  Marketing   2,486     1,769     2,236    
  Data processing   7,123     6,020     6,590    
  Communication   1,864     2,106     2,744    
  Professional fees   3,368     2,808     3,132    
  Loan expenses   1,333     1,811     1,326    
  Supplies   583     565     684    
  FDIC assessment   1,919     1,913     1,885    
  Other real estate owned expense   424     482     1,161    
  Intangible amortization   2,647     2,816     3,081    
  Other expense   3,899     10,745       5,426    
    Total noninterest expense   98,355     102,469       116,156    
           
    Income before income taxes   36,648     43,583       30,131    
    Income tax expense   9,671     11,598     9,225    
    Net income $   26,977   $   31,985   $   20,906    
           
  Diluted Earnings Per Share          
  Net income $   0.24   $   0.27   $   0.18    
           
  Average Common Shares Outstanding        
    Basic     113,998       114,103       118,540    
    Diluted     114,563       114,716       119,076    
           
  Common shares outstanding at end of period     114,352       114,297       116,983    
           

 
    TABLE 6   
    Balance Sheet  
    ($ in thousands)  
                     
        March 31,   December 31,   March 31,    
          2016       2015       2015      
      Assets              
        Federal Reserve Bank account $   20,516     $   125,724     $   12,782      
        Money market investments     1,783         2,783         6,561      
        Investments:              
        Treasury and government sponsored agencies     757,745         768,564         900,900      
        Mortgage-backed securities     1,005,588         1,082,403         1,112,279      
        States and political subdivisions     1,112,599         1,100,501         988,777      
        Other securities     431,368         428,951         458,584      
        Total investments     3,307,300         3,380,419         3,460,540      
        Loans held for sale     22,546         13,810         210,513      
        Loans:              
        Commercial     1,784,970         1,804,615         1,668,275      
        Commercial and agriculture real estate     1,907,834         1,847,821         1,813,579      
        Consumer:               
        Home equity     347,776         359,954         374,079      
        Other consumer loans     1,236,959         1,183,814         1,034,412      
        Subtotal of commercial and consumer loans     5,277,539         5,196,204         4,890,345      
        Residential real estate     1,634,132         1,644,614         1,625,354      
        Covered loans     95,403         107,587         136,840      
        Total loans     7,007,074         6,948,405         6,652,539      
        Total earning assets     10,359,219         10,471,141         10,342,935      
                     
      Allowance for loan losses     (50,700 )       (52,233 )       (48,878 )    
      Nonearning Assets:              
        Cash and due from banks     153,259         91,311         195,970      
        Premises and equipment     198,065         196,676         132,101      
        Goodwill and intangible assets     617,077         619,942         631,642      
        Company-owned life insurance     342,292         341,294         335,976      
        FDIC Indemnification Asset     7,703         9,030         20,024      
        Other real estate owned     13,522         12,498         15,566      
        Other assets      291,889         301,868         324,514      
        Total nonearning assets     1,623,807         1,572,619         1,655,793      
        Total assets $   11,932,326     $   11,991,527     $   11,949,850      
                     
      Liabilities and Equity              
        Noninterest-bearing demand deposits $   2,491,767     $   2,488,855     $   2,553,801      
        NOW accounts     2,178,690         2,133,536         2,218,243      
        Savings accounts     2,271,341         2,201,352         2,384,502      
        Money market accounts     561,250         577,050         636,933      
        Other time deposits     919,213         901,352         1,072,195      
        Total core deposits     8,422,261         8,302,145         8,865,674      
        Brokered CD's     166,634         98,715         61,846      
        Total deposits     8,588,895         8,400,860         8,927,520      
                     
        Short-term borrowings     494,380         628,499         463,007      
        Other borrowings     1,167,811         1,291,747         869,123      
        Total borrowed funds     1,662,191         1,920,246         1,332,130      
      Accrued expenses and other liabilities     172,597         179,251         206,929      
        Total liabilities     10,423,683         10,500,357         10,466,579      
                     
      Common stock, surplus, and retained earnings     1,538,228         1,525,967         1,507,513      
      Other comprehensive income     (29,585 )       (34,797 )       (24,242 )    
        Total shareholders' equity     1,508,643         1,491,170         1,483,271      
        Total liabilities and shareholders' equity $   11,932,326     $   11,991,527     $   11,949,850      
                     
                   

 
   TABLE 7                          
  Average Balance Sheet and Interest Rates  
  ($ in thousands)  
                             
                             
      Three Months Ended   Three Months Ended   Three Months Ended  
      March 31, 2016   December 31, 2015   March 31, 2015  
      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 $ 44,499   $ 49     0.45 %   $ 94,660   $ 29     0.12 %   $ 25,732   $ 6     0.10 %  
  Investments:                          
  Treasury and gov't sponsored agencies   730,379     3,477     1.90 %     770,472     3,658     1.90 %     889,979     4,374     1.97 %  
  Mortgage-backed securities   1,050,520     5,078     1.93 %     1,134,521     5,356     1.89 %     1,153,835     5,051     1.75 %  
  States and political subdivisions   1,103,467     13,009     4.72 %     1,088,917     12,935     4.75 %     976,943     11,592     4.75 %  
  Other securities     428,324     2,837     2.66 %     431,541     2,635     2.44 %     454,070     2,818     2.48 %  
    Total investments     3,312,690     24,401     2.95 %     3,425,451     24,584     2.87 %     3,474,827     23,835     2.74 %  
  Loans:                          
  Commercial (2)     1,781,711     17,161     3.81 %     1,773,804     16,861     3.72 %     1,716,161     19,014     4.43 %  
  Commercial and agriculture real estate (2)   1,896,951     28,038     5.85 %     1,860,536     27,496     5.78 %     1,879,985     28,126     5.98 %  
  Consumer:                          
  Home equity (2)     413,796     4,279     4.16 %     424,013     4,218     3.95 %     453,641     4,580     4.09 %  
  Other consumer loans (2)   1,210,993     9,680     3.22 %     1,160,652     9,747     3.33 %     1,044,141     9,672     3.76 %  
  Subtotal commercial and consumer loans   5,303,451     59,158     4.49 %     5,219,005     58,322     4.43 %     5,093,928     61,392     4.89 %  
  Residential real estate loans (2)   1,670,389     16,921     4.06 %     1,675,707     17,188     4.10 %     1,751,680     18,018     4.11 %  
                             
  Total loans (2)     6,973,840     76,079     4.35 %     6,894,712     75,510     4.32 %     6,845,608     79,410     4.65 %  
                             
  Total earning assets $ 10,331,029   $ 100,529     3.88 %   $ 10,414,823   $ 100,123     3.80 %   $ 10,346,167   $ 103,251     3.99 %  
                             
  Less: Allowance for loan losses   (52,077 )         (52,677 )         (49,418 )      
                             
  Non-Earning Assets:                          
  Cash and due from banks $ 246,212         $ 297,109         $ 212,998        
  Other assets     1,378,676           1,282,153           1,419,945        
                             
  Total assets   $ 11,903,840         $ 11,941,408         $ 11,929,692        
                             
  Interest-Bearing Liabilities:                        
  NOW accounts   $ 2,114,798   $ 237     0.05 %   $ 2,063,815   $ 289     0.06 %   $ 2,207,096   $ 161     0.03 %  
  Savings accounts     2,224,151     780     0.14 %     2,207,640     784     0.14 %     2,343,894     810     0.14 %  
  Money market accounts   552,475     90     0.07 %     828,501     263     0.13 %     656,958     118     0.07 %  
  Other time deposits     913,347     2,115     0.93 %     909,985     2,123     0.93 %     1,075,014     2,383     0.90 %  
    Total interest-bearing deposits   5,804,771     3,222     0.22 %     6,009,941     3,459     0.23 %     6,282,962     3,472     0.22 %  
  Brokered CD's     127,287     272     0.86 %     80,951     141     0.69 %     72,869     92     0.51 %  
    Total interest-bearing deposits and CD's   5,932,058     3,494     0.24 %     6,090,892     3,600     0.23 %     6,355,831     3,564     0.23 %  
                             
  Short-term borrowings     446,422     182     0.16 %     479,760     144     0.12 %     453,611     96     0.09 %  
  Other borrowings     1,375,011     6,010     1.75 %     1,196,166     5,294     1.75 %     918,754     3,941     1.72 %  
    Total borrowed funds   1,821,433     6,192     1.37 %     1,675,926     5,438     1.29 %     1,372,365     4,037     1.19 %  
                             
    Total interest-bearing liabilities $ 7,753,491   $ 9,686     0.50 %   $ 7,766,818   $ 9,038     0.46 %   $ 7,728,196   $ 7,601     0.40 %  
                             
  Noninterest-Bearing Liabilities                        
  Demand deposits     2,473,091           2,483,234           2,503,078        
  Other liabilities     174,296           208,696           195,696        
  Shareholders' equity     1,502,962           1,482,660           1,502,722        
                             
  Total liabilities and shareholders' equity $ 11,903,840         $ 11,941,408         $ 11,929,692        
                             
  Net interest rate spread         3.38 %         3.34 %         3.59 %  
                             
  Net interest margin (FTE)       3.52 %         3.50 %         3.70 %  
                             
  FTE adjustment     $ 5,200         $ 5,163         $ 4,658      
                             
  (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
    March 31, December 31, March 31,
      2016     2015     2015  
         
  Beginning allowance for loan losses $   52,233   $   51,226   $   47,849  
         
    Provision for loan losses     91       484       1  
         
    Gross charge-offs     (3,942 )     (5,559 )     (2,113 )
    Gross recoveries     2,318       6,082       3,141  
    Net (charge-offs) recoveries     (1,624 )     523       1,028  
         
  Ending allowance for loan losses $   50,700   $   52,233   $   48,878  
         
  Net charge-offs (recoveries) / average loans (1)   0.09 %   -0.03 %   -0.06 %
         
  Average loans outstanding (1) $   6,970,578   $   6,891,197   $   6,643,462  
         
  EOP loans outstanding (1) $   7,007,074   $   6,948,405   $   6,652,539  
         
  Allowance for loan losses / EOP loans (1)   0.72 %   0.75 %   0.73 %
         
  Underperforming Assets:      
    Loans 90 Days and over (still accruing) $   357   $   916   $   142  
         
    Non-performing loans:      
    Nonaccrual loans (2)     117,866       132,373       155,892  
    Renegotiated loans     14,155       14,285       12,520  
  Total non-performing loans     132,021       146,658       168,412  
         
    Foreclosed properties     13,522       12,498       15,566  
         
  Total underperforming assets $   145,900   $   160,072   $   184,120  
         
  Classified loans - "problem loans" $   200,297   $   213,294   $   253,237  
  Other classified assets     6,566       6,857       14,816  
  Criticized loans - "special mention loans"     132,475       134,347       189,989  
  Total classified and criticized assets $   339,338   $   354,498   $   458,042  
         
  Non-performing loans / EOP loans (1)   1.88 %   2.11 %   2.53 %
         
  Allowance to non-performing loans (3)   38 %   36 %   29 %
         
  Under-performing assets / EOP loans (1)   2.08 %   2.30 %   2.77 %
         
  EOP total assets $   11,932,326   $   11,991,527   $   11,949,850  
         
  Under-performing assets / EOP assets   1.22 %   1.33 %   1.54 %
         
   EOP - End of period actual balances       
   (1) Excludes loans held for sale.       
   (2) Includes renegotiated loans totaling $35.7 million at March 31, 2016, $30.0 million at December 31, 2015 and $23.1 million 
    at March 31, 2015.       
   (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  
      March 31, December 31, March 31,  
        2016     2015     2015    
             
    Actual End of Period Balances        
    GAAP shareholders' equity  $   1,508,643   $   1,491,170   $   1,483,271    
             
    Deduct:        
    Goodwill      584,634       584,634       587,904    
    Intangibles      32,443       35,308       43,738    
          617,077       619,942       631,642    
             
    Tangible shareholders' equity   $   891,566   $   871,228   $   851,629    
             
    Actual End of Period Balances        
    GAAP assets  $   11,932,326   $   11,991,527   $   11,949,850    
             
    Add:        
    Trust overdrafts     48       29       55    
             
    Deduct:        
    Goodwill      584,634       584,634       587,904    
    Intangibles      32,443       35,308       43,738    
          617,077       619,942       631,642    
             
    Tangible Assets   $   11,315,297   $   11,371,614   $   11,318,263    
             
    Risk-weighted assets     7,795,646       7,718,065       7,864,882    
             
    Actual End of Period Balances        
    GAAP net income $   26,977   $   31,985   $   20,906    
             
    Add:        
    Intangible amortization (net of tax)     2,404       2,545       2,765    
             
    Tangible net income $   29,381   $   34,530   $   23,671    
             
    Tangible Ratios          
    Return on tangible common equity   13.18 %   15.85 %   11.12 %  
    Return on tangible assets    1.04 %   1.21 %   0.84 %  
    Tangible common equity to tangible assets    7.88 %   7.66 %   7.52 %  
    Tangible common equity to risk-weighted assets    11.44 %   11.29 %   10.83 %  
    Tangible common book value (1)     7.80       7.62       7.28    
             
    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 $   975,717   $   968,772   $   939,853    
             
    Deduct:        
    Trust Preferred Securities     45,000       45,000       45,000    
    Additional Tier 1 capital deductions     (7,625 )     (10,725 )     (12,947 )  
          37,375       34,275       32,053    
             
    Tier 1 common equity   $   938,342   $   934,497   $   907,800    
             
    Risk-weighted assets     7,795,646       7,718,065       7,864,882    
             
    Tier 1 common equity to risk-weighted assets     12.04 %   12.11 %   11.54 %  
             

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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