1 ST Quarter 2017 Highlights:
  • Earnings of $36.0 million, or $0.27 per share
  • Commercial and commercial real estate loan growth of 6.8% annualized from 4 th quarter 2016
  • Tangible book value 1 increase of 9.5% from 1 st quarter 2016
  • Strong expense control
  • Consolidation of 15 branches throughout footprint

1 Non-GAAP measures - refer to Tables 4 & 10 for Non-GAAP reconciliations

EVANSVILLE, Ind., April 25, 2017 (GLOBE NEWSWIRE) -- Today Old National Bancorp (the "Company" or "Old National") (NASDAQ: ONB) reported 1 st quarter 2017 net income of $36.0 million, or $0.27 per diluted share.  Included in the current quarter were $1.4 million in pre-tax branch consolidation charges related to the 15 banking centers that were consolidated by the Company in January 2017.  This current quarter net income represents an increase of 33.4% over the 1 st quarter of 2016 net income of $27.0 million and a 7.6% increase over 4 th quarter 2016 net income of $33.5 million.  Contributing to this year-over-year increase was the successful redeployment of the proceeds from the sale of Old National's insurance subsidiary into the more profitable banking business with the Anchor Bank ("Anchor") partnership.  Both transactions closed in the 2 nd quarter of 2016.  During the 4 th quarter, Old National recognized $12.8 million in pre-tax gains related to the repurchase of various bank properties.  Also included in the 4 th quarter of 2016 were pre-tax pension termination charges of $9.8 million, pre-tax branch consolidation charges of $5.1 million, pre-tax merger and integration charges of $1.8 million and severance charges of $1.6 million. 

"With a 33% year-over-year increase in net income, strong commercial loan growth and well-controlled expenses, this was a strong 1 st quarter for Old National and our stakeholders," said Old National Chairman and CEO Bob Jones. "This performance demonstrates our continued focus on execution and our commitment to driving shareholder value."

Committed to our Strategic Imperatives

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 12 years: 

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

Balance Sheet and Net Interest Margin

Old National's period-end loans, including loans held for sale, at March 31, 2017, totaled $9.149 billion, an increase of $47.9 million from the $9.101 billion at December 31, 2016.  The Company's residential mortgage loans held for sale declined $73.3 million during this same period.  Commercial and commercial real estate loans grew by 6.8%, annualized, from the 4 th quarter of 2016 to the 1 st quarter of 2017. 

Total period-end core deposits, including demand and interest-bearing deposits, increased $75.2 million, or 2.8% annualized, to $10.704 billion at March 31, 2017, compared to $10.629 billion at December 31, 2016.    

Net interest income for the 1 st quarter of 2017 totaled $105.8 million compared to $109.9 million in the 4 th quarter of 2016, and $85.6 million in the 1 st quarter of 2016.  On a fully taxable equivalent basis, net interest income was $111.5 million for the 1 st quarter of 2017 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 $115.4 million and a margin of 3.63% in the 4 th quarter of 2016.   In the 1 st quarter of 2016, Old National reported net interest income on a fully taxable equivalent basis of $90.8 million and a margin of 3.52%.  Refer to Table 4 for Non-GAAP taxable equivalent reconciliations.

Old National recorded $12.6 million in accretion income as part of net interest income, or a 40 basis point contribution to the net interest margin, in the 1 st quarter of 2017.  Accretion income is related to purchase accounting discounts from the Company's various acquisitions.  Total accretion income in the 4 th quarter of 2016 and the 1 st quarter of 2016 reported by Old National was $16.8 million, or a 53 basis point net interest margin contribution, and $11.2 million, or a 44 basis point net interest margin contribution, respectively.  Excluding accretion income, the core net interest margin was 3.10% in the 1 st quarter of 2017, compared to 3.10% in the 4 th quarter of 2016 and 3.08% in the 1 st quarter of 2016.  Refer to Table 4 for Non-GAAP reconciliations.

Noninterest Income

Total noninterest income for the 1 st quarter of 2017 amounted to $42.9 million and compares to $62.8 million reported in the 4 th quarter of 2016 and $49.5 million in the 1 st quarter of 2016.  The current quarter included $1.5 million of recoveries on Anchor loans that had been fully charged-off prior to the acquisition.  During the 4 th quarter of 2016, Old National recognized pre-tax gains of $12.8 million relating to the repurchase of various bank properties as well as $6.4 million of recoveries on Anchor loans.  The 1 st quarter of 2016 included $13.1 million in insurance income, compared to relatively none in both the 4 th quarter of 2016 and the 1 st quarter of 2017.

Noninterest Expenses

Noninterest expenses for Old National totaled $101.9 million for the 1 st quarter of 2017 and included $1.4 million in charges relating to the Company's 15 banking centers consolidated in January 2017.  Noninterest expenses for the 4 th quarter of 2016 totaled $126.3 million and included a $9.8 million pre-tax charge for the termination of the Company's pension plan, $5.1 million in pretax charges related to branch consolidations, $1.8 million in pre-tax merger and integration charges and $1.6 million in severance.  The 1 st quarter of 2016 included $1.4 million in pre-tax merger and integration charges.  Following Old National's 15 branch consolidations in January, the Company now operates 188 branches throughout its franchise.

Capital

Old National's capital position at March 31, 2017, remained well above regulatory guideline minimums with regulatory tier 1 and total risk-based capital ratios of 11.7% and 12.2%, respectively, compared to 11.7% and 12.2% at December 31, 2016, and 12.5% and 13.2% at March 31, 2016.  Old National did not repurchase any stock in the open market during the 1 st quarter of 2017.

The following table presents Old National's risk-based and leverage ratios compared to industry requirements:
Table 1 Fully Phased-In Regulatory Guidelines Minimum Consolidated ONB at March 31, 2017
Tier 1 Risk-Based Capital Ratio > 8.5% 11.7%  
Total Risk-Based Capital Ratio > 10.5% 12.2%  
Common Equity Tier 1 Capital Ratio > 7.0% 11.4%  
Tier 1 Leverage Capital Ratio > 4.0% 8.5%  

Old National's ratio of tangible common equity to tangible assets was 8.16% at March 31, 2017, compared to 7.92% at December 31, 2016, and 7.88% at March 31, 2016.  Refer to Table 10 for Non-GAAP reconciliations. 

Credit

Old National recorded a provision expense of $0.3 million and had net charge-offs of $0.3 million in the 1 st quarter of 2017.  These results compare to $1.8 million in provision recapture and net recoveries of $17 thousand, and provision expense of $0.1 million and net charge-offs of $1.6 million, in the 4 th quarter of 2016 and the 1 st quarter of 2016, respectively.  Net charge-offs for the 1 st quarter of 2017 were 0.01% of average total loans on an annualized basis, compared to net charge-offs of 0.00% of average total loans in the 4 th quarter of 2016 and net charge-offs of 0.09% of average total loans in the 1 st quarter of 2016. 

Delinquencies remained low as Old National reported 30+ day delinquent loans of 0.32% in the 1 st quarter of 2017 compared to 0.43% in the 4 th quarter of 2016.  Old National's 90+ day delinquent loans for the 1 st quarter of 2017 and the 4 th quarter of 2016 were near zero.

At March 31, 2017, Old National's allowance for loan losses was $49.8 million, or 0.55% of total loans, compared to an allowance of $49.8 million, or 0.55% of total loans at December 31, 2016, and $50.7 million, or 0.72% of total loans, at March 31, 2016.  The coverage ratio (allowance to non-performing loans) stood at 38% at March 31, 2017, compared to 34% at December 31, 2016, and 38% at March 31, 2016.

In accordance with current accounting practices, the loans acquired from Anchor during the 2 nd quarter of 2016 were recorded at fair value with no allowance recorded at the acquisition date.  When considering both the allowance for loan losses plus the purchase accounting marks, Old National believes it remains appropriately reserved, as demonstrated by the table below.

Table 2 - At March 31, 2017 ($ in millions)   ONB Excluding Anchor 1   Anchor ONB Consolidated
Allowance for Loan Losses (ALLL) $49.8   $0.0   $49.8  
Remaining Loan Discount   62.0     55.1     117.1  
Total ALLL + Remaining Loan Discount $111.8   $55.1   $166.9  
Pre-Discount Loan Balance $7,844.8   $1,404.0   $9,248.8  
ALLL/Pre-Discount Loan Balance   0.64%     0.00%     0.54%  
Mark/Pre-Discount Loan Balance   0.79%     3.93%     1.27%  
Combined ALLL & Discount/Pre-Discount Loan Balance   1.42%     3.93%     1.80%  

1 Includes discount on loans acquired through previous partnerships.

The following table presents certain credit quality metrics related to Old National's loan portfolio:
Table 3 ($ in millions)     1Q17   4Q16 1Q16
Non-Performing Loans (NPLs) $130.3   $145.8   $132.0  
Problem Loans (Including NPLs)   219.9     220.4     200.3  
Special Mention Loans   95.9     95.5     132.5  
Net Charge-Off (Recoveries) Ratio   0.01%     0.00%     0.09%  
Provision for Loan Losses $0.3   ($1.8 ) $0.1  
Allowance for Loan Losses   49.8     49.8     50.7  

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 $14.9 billion in assets, it ranks among the top 100 banking companies in the U.S. and has been recognized as a World's Most Ethical Company by the Ethisphere Institute for six consecutive years.  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, Old National offers comprehensive wealth management, investments and brokerage services. 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 Tuesday, April 25, 2017, to discuss 1st quarter 2017 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 1:00 p.m. Central Time on April 25 through May 9. To access the replay, dial 1-855-859-2056, Conference ID Code 3913117.

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 the tables of this release.

Table 4 - N on-GAAP Reconciliations-Core Net Interest Margin
($ in millions) 1Q17 4Q16 1Q16
Net Interest Income $105.8   $109.9   $85.6  
Taxable Equivalent Adjustment   5.7     5.5     5.2  
Net Interest Income - Taxable Equivalent $111.5   $115.4   $90.8  
Less Accretion 1   12.6     16.8     11.2  
Core Net Interest Income - Taxable Equivalent Less Accretion $98.9   $98.6   $79.6  
Average Earning Assets $12,742.9   $12,713.3   $10,331.0  
Core Net Interest Margin - Fully Taxable Equivalent   3.10%     3.10%     3.08%  

1 Accretion related to purchase accounting discounts on acquired loan portfolios.

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; 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 5        
  Financial Highlights (unaudited)  
  ($ and shares in thousands, except per share data)  
           
    Three Months Ended  
    March 31, December 31, March 31,  
      2017     2016     2016    
  Income Statement        
  Net interest income $ 105,801   $ 109,917   $ 85,643    
  Provision for loan losses   347     (1,756 )   91    
  Noninterest income   42,920     62,751     49,451    
  Noninterest expense   101,891     126,258     98,355    
  Net income   35,992     33,456     26,977    
           
           
  Per Common Share Data (Diluted)        
  Net income available to common shareholders $ 0.27   $ 0.25   $ 0.24    
  Average diluted shares outstanding   135,431     135,383     114,563    
  Book value   13.63     13.42     13.19    
  Stock price   17.35     18.15     12.19    
  Dividend payout ratio   48%     52%     54%    
  Tangible common book value (1)   8.54     8.30     7.80    
           
           
  Performance Ratios        
  Return on average assets   0.98%     0.91%     0.91%    
  Return on average common equity   7.89%     7.33%     7.18%    
  Net interest margin (FTE)   3.50%     3.63%     3.52%    
  Efficiency ratio (2)   64.66%     69.53%     68.76%    
  Net charge-offs (recoveries) to average loans   0.01%     0.00%     0.09%    
  Allowance for loan losses to ending loans   0.55%     0.55%     0.72%    
  Non-performing loans to ending loans   1.43%     1.62%     1.88%    
           
           
  Balance Sheet        
  Total loans $ 9,131,773   $ 9,010,512   $ 7,007,074    
  Total assets   14,869,645     14,860,237     11,932,326    
  Total deposits   10,821,352     10,743,253     8,588,895    
  Total borrowed funds   2,066,617     2,152,086     1,662,191    
  Total shareholders' equity   1,846,359     1,814,417     1,508,643    
           
           
  Capital Ratios (1)        
  Risk-based capital ratios (EOP):        
  Tier 1 common equity   11.4%     11.5%     12.0%    
  Tier 1   11.7%     11.7%     12.5%    
  Total   12.2%     12.2%     13.2%    
  Leverage ratio (to average assets)   8.5%     8.4%     8.6%    
           
  Total equity to assets (averages)   12.36%     12.44%     12.63%    
  Tangible common equity to tangible assets   8.16%     7.92%     7.88%    
           
           
  Nonfinancial Data        
  Full-time equivalent employees   2,659     2,733     2,615    
  Number of branches   188     203     160    
           
  (1) See non-GAAP measures on Table 10.  
  (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  
           

 
           
  TABLE 6        
    Income Statement (unaudited)  
  ($ and shares in thousands, except per share data)
           
    Three Months Ended  
    March 31, December 31, March 31,  
      2017   2016     2016    
  Interest income $ 118,468 $ 121,849   $ 95,329    
  Less:  interest expense   12,667   11,932     9,686    
  Net interest income   105,801   109,917     85,643    
  Provision for loan losses   347   (1,756 )   91    
  Net interest income after provision for loan losses   105,454   111,673     85,552    
           
  Wealth management fees   8,999   8,593     8,121    
  Service charges on deposit accounts   9,843   10,448     9,639    
  Debit card and ATM fees   4,236   4,183     3,785    
  Mortgage banking revenue   4,226   4,399     2,920    
  Insurance premiums and commissions   107   152     13,121    
  Investment product fees   4,989   5,155     3,905    
  Company-owned life insurance   2,149   2,198     2,038    
  Change in Indemnification Asset   -   -     (655 )  
  Other income   6,825   26,319     5,424    
  Gains (losses) on sales of securities   1,500   1,239     1,106    
  Gains (losses) on derivatives   46   65     47    
  Total noninterest income   42,920   62,751     49,451    
           
  Salaries and employee benefits   56,564   72,344     56,972    
  Occupancy   12,134   11,591     12,844    
  Equipment   3,227   3,675     2,893    
  Marketing   3,050   3,495     2,486    
  Data processing   7,608   7,961     7,123    
  Communication   2,414   2,805     1,864    
  Professional fees   2,651   3,904     3,368    
  Loan expenses   1,631   1,963     1,333    
  Supplies   579   885     583    
  FDIC assessment   2,487   2,583     1,919    
  Other real estate owned expense   1,115   944     424    
  Intangible amortization   3,020   3,241     2,647    
  Other expense   5,411   10,867     3,899    
  Total noninterest expense   101,891   126,258     98,355    
           
  Income before income taxes   46,483   48,166     36,648    
  Income tax expense   10,491   14,710     9,671    
  Net income $ 35,992 $ 33,456   $ 26,977    
           
  Diluted Earnings Per Share          
  Net income $ 0.27 $ 0.25   $ 0.24    
           
  Average Common Shares Outstanding        
  Basic   134,912   134,670     113,998    
  Diluted   135,431   135,383     114,563    
           
  Common shares outstanding at end of period   135,435   135,159     114,352    
           
           

 
                   
    TABLE 7  
    Balance Sheet (unaudited)
    ($ in thousands)
                   
        March 31,   December 31,   March 31,  
          2017       2016       2016    
      Assets            
      Federal Reserve Bank account $ 24,460     $ 36,496     $ 20,516    
      Money market investments   7,601       9,642       1,783    
      Investments:            
      Treasury and government sponsored agencies   595,172       541,190       757,745    
      Mortgage-backed securities   1,484,561       1,535,659       1,005,588    
      States and political subdivisions   1,144,412       1,131,003       1,112,599    
      Other securities   446,830       441,110       431,368    
      Total investments   3,670,975       3,648,962       3,307,300    
      Loans held for sale   17,373       90,682       22,546    
      Loans:            
      Commercial   1,910,536       1,917,099       1,792,988    
      Commercial and agriculture real estate   3,222,865       3,130,853       1,922,754    
      Consumer:            
      Home equity   464,911       476,439       347,776    
      Other consumer loans   1,421,199       1,398,591       1,293,560    
      Subtotal of commercial and consumer loans   7,019,511       6,922,982       5,357,078    
      Residential real estate   2,112,262       2,087,530       1,649,996    
      Total loans   9,131,773       9,010,512       7,007,074    
      Total earning assets   12,852,182       12,796,294       10,359,219    
                   
      Allowance for loan losses   (49,834 )     (49,808 )     (50,700 )  
      Non-earning Assets:            
      Cash and due from banks   184,974       209,381       153,259    
      Premises and equipment   420,866       429,622       198,065    
      Goodwill and intangible assets   689,675       692,695       617,077    
      Company-owned life insurance   353,786       352,956       342,292    
      Net deferred tax assets   165,376       181,863       98,712    
      Loan servicing rights   25,446       25,561       10,534    
      FDIC Indemnification Asset   -       -       7,703    
      Other real estate owned   12,547       18,546       13,522    
      Other assets   214,627       203,127       182,643    
      Total non-earning assets   2,067,297       2,113,751       1,623,807    
      Total assets $ 14,869,645     $ 14,860,237     $ 11,932,326    
                   
      Liabilities and Equity            
      Noninterest-bearing demand deposits $ 3,024,111     $ 3,016,093     $ 2,491,767    
      NOW accounts   2,635,317       2,596,595       2,178,690    
      Savings accounts   2,997,919       2,954,709       2,271,341    
      Money market accounts   697,287       707,748       561,250    
      Other time deposits   1,349,303       1,353,614       919,213    
      Total core deposits   10,703,937       10,628,759       8,422,261    
      Brokered CD's   117,415       114,494       166,634    
      Total deposits   10,821,352       10,743,253       8,588,895    
                   
      Federal funds purchased and interbank borrowings   61,016       213,003       165,320    
      Securities sold under agreements to repurchase   345,550       367,052       379,060    
      Federal Home Loan Bank advances   1,441,030       1,353,092       899,418    
      Other borrowings   219,021       218,939       218,393    
      Total borrowed funds   2,066,617       2,152,086       1,662,191    
      Accrued expenses and other liabilities   135,317       150,481       172,597    
      Total liabilities   13,023,286       13,045,820       10,423,683    
                   
      Common stock, surplus, and retained earnings   1,894,924       1,873,789       1,538,228    
      Other comprehensive income   (48,565 )     (59,372 )     (29,585 )  
      Total shareholders' equity   1,846,359       1,814,417       1,508,643    
      Total liabilities and shareholders' equity $ 14,869,645     $ 14,860,237     $ 11,932,326    
                       
                   

 
                               
  TABLE 8                            
  Average Balance Sheet and Interest Rates (unaudited)    
  ($ in thousands)    
                               
                               
      Three Months Ended   Three Months Ended   Three Months Ended    
      March 31, 2017   December 31, 2016   March 31, 2016    
      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 $ 27,482   $ 31 0.46 %   $ 40,791   $ 37 0.36 %   $ 44,499   $ 49 0.45 %    
  Investments:                            
  Treasury and gov't sponsored agencies   540,422     2,780 2.06 %     551,665     2,754 2.00 %     730,379     3,477 1.90 %    
  Mortgage-backed securities   1,511,388     7,818 2.07 %     1,504,887     7,182 1.91 %     1,050,520     5,078 1.93 %    
  States and political subdivisions   1,133,373     13,607 4.80 %     1,141,703     13,458 4.72 %     1,103,467     13,009 4.72 %    
  Other securities     445,235     2,828 2.54 %     445,877     2,868 2.57 %     428,324     2,837 2.66 %    
  Total investments     3,630,418     27,033 2.98 %     3,644,132     26,262 2.88 %     3,312,690     24,401 2.95 %    
  Loans: (2)                            
  Commercial     1,887,929     19,088 4.04 %     1,871,338     17,453 3.65 %     1,781,711     17,161 3.81 %    
  Commercial and agriculture real estate   3,171,005     40,324 5.09 %     3,125,500     45,375 5.68 %     1,896,951     28,038 5.85 %    
  Consumer:                            
  Home equity     476,353     4,659 3.97 %     485,984     4,597 3.76 %     413,796     4,279 4.16 %    
  Other consumer loans   1,408,100     11,767 3.39 %     1,384,017     11,942 3.43 %     1,210,993     9,680 3.22 %    
  Subtotal commercial and consumer loans   6,943,387     75,838 4.43 %     6,866,839     79,367 4.60 %     5,303,451     59,158 4.49 %    
  Residential real estate loans   2,141,571     21,254 3.97 %     2,161,583     21,689 4.00 %     1,670,389     16,921 4.06 %    
                               
  Total loans     9,084,958     97,092 4.29 %     9,028,422     101,056 4.42 %     6,973,840     76,079 4.35 %    
                               
  Total earning assets $ 12,742,858   $ 124,156 3.91 %   $ 12,713,345   $ 127,355 3.97 %   $ 10,331,029   $ 100,529 3.88 %    
                               
  Less: Allowance for loan losses   (50,710 )         (52,691 )         (52,077 )        
                               
  Non-earning Assets:                            
  Cash and due from banks   $ 195,620         $ 209,957         $ 166,351          
  Other assets     1,877,849           1,806,507           1,458,537          
                               
  Total assets   $ 14,765,617         $ 14,677,118         $ 11,903,840          
                               
  Interest-Bearing Liabilities:                          
  NOW accounts   $ 2,585,814   $ 456 0.07 %   $ 2,560,533   $ 430 0.07 %   $ 2,114,798   $ 237 0.05 %    
  Savings accounts     2,969,866     1,157 0.16 %     2,952,666     1,138 0.15 %     2,224,151     780 0.14 %    
  Money market accounts   706,990     149 0.09 %     703,904     142 0.08 %     552,475     90 0.07 %    
  Other time deposits     1,332,912     2,368 0.72 %     1,392,410     2,714 0.78 %     913,347     2,115 0.93 %    
  Total interest-bearing deposits   7,595,582     4,130 0.22 %     7,609,513     4,424 0.23 %     5,804,771     3,222 0.22 %    
  Brokered CD's     107,519     253 0.95 %     132,901     293 0.88 %     127,287     272 0.86 %    
  Total interest-bearing deposits and CD's   7,703,101     4,383 0.23 %     7,742,414     4,717 0.24 %     5,932,058     3,494 0.24 %    
                               
  Federal funds purchased and interbank borrowings   189,070     356 0.76 %     79,913     107 0.53 %     110,378     122 0.45 %    
  Securities sold under agreements to repurchase   331,400     256 0.31 %     354,709     370 0.41 %     386,044     373 0.39 %    
  Federal Home Loan Bank advances   1,429,977     5,312 1.51 %     1,264,368     4,383 1.38 %     1,106,691     3,417 1.24 %    
  Other borrowings     218,965     2,360 4.31 %     218,860     2,355 4.30 %     218,320     2,280 4.18 %    
  Total borrowed funds   2,169,412     8,284 1.55 %     1,917,850     7,215 1.50 %     1,821,433     6,192 1.37 %    
                               
  Total interest-bearing liabilities $ 9,872,513   $ 12,667 0.52 %   $ 9,660,264   $ 11,932 0.49 %   $ 7,753,491   $ 9,686 0.50 %    
                               
  Noninterest-Bearing Liabilities                          
  Demand deposits   $ 2,917,053         $ 3,006,263         $ 2,473,091          
  Other liabilities     150,392           184,598           174,296          
  Shareholders' equity     1,825,659           1,825,993           1,502,962          
                               
  Total liabilities and shareholders' equity $ 14,765,617         $ 14,677,118         $ 11,903,840          
                               
  Net interest rate spread       3.39 %       3.48 %       3.38 %    
                               
  Net interest margin (FTE)     3.50 %       3.63 %       3.52 %    
                               
  FTE adjustment     $ 5,688       $ 5,506       $ 5,200      
                               
  (1) Interest income is reflected on a fully taxable equivalent basis (FTE).                      
  (2) Includes loans held for sale.                          

 
           
  TABLE 9        
  Asset Quality (EOP) (unaudited)  
  ($ in thousands)  
           
    Three Months Ended  
    March 31, December 31, March 31,  
      2017     2016     2016    
           
  Beginning allowance for loan losses $ 49,808   $ 51,547   $ 52,233    
           
  Provision for loan losses   347     (1,756 )   91    
           
  Gross charge-offs   (3,239 )   (3,472 )   (3,942 )  
  Gross recoveries   2,918     3,489     2,318    
  Net (charge-offs) recoveries   (321 )   17     (1,624 )  
           
  Ending allowance for loan losses $ 49,834   $ 49,808   $ 50,700    
           
  Net charge-offs (recoveries) / average loans (1)   0.01 %   0.00 %   0.09 %  
           
  Average loans outstanding (1) $ 9,078,672   $ 9,018,280   $ 6,970,578    
           
  EOP loans outstanding (1) $ 9,131,773   $ 9,010,512   $ 7,007,074    
           
  Allowance for loan losses / EOP loans (1)   0.55 %   0.55 %   0.72 %  
           
  Underperforming Assets:        
  Loans 90 Days and over (still accruing) $ 381   $ 328   $ 357    
           
  Non-performing loans:        
  Nonaccrual loans (2)   115,377     131,407     117,866    
  Renegotiated loans   14,969     14,376     14,155    
  Total non-performing loans   130,346     145,783     132,021    
           
  Foreclosed properties   12,547     18,546     13,522    
           
  Total underperforming assets $ 143,274   $ 164,657   $ 145,900    
           
  Classified loans - "problem loans" $ 219,929   $ 220,429   $ 200,297    
  Other classified assets   7,306     7,063     6,566    
  Criticized loans - "special mention loans"   95,881     95,462     132,475    
  Total classified and criticized assets $ 323,116   $ 322,954   $ 339,338    
           
  Non-performing loans / EOP loans (1)   1.43 %   1.62 %   1.88 %  
           
  Allowance to non-performing loans (3)   38 %   34 %   38 %  
           
  Under-performing assets / EOP loans (1)   1.57 %   1.83 %   2.08 %  
           
  EOP total assets $ 14,869,645   $ 14,860,237   $ 11,932,326    
           
  Under-performing assets / EOP assets   0.96 %   1.11 %   1.22 %  
           
  EOP - End of period actual balances        
  (1) Excludes loans held for sale.        
  (2) Includes renegotiated loans totaling $34.2 million at March 31, 2017, $26.3 million at December 31, 2016 and $35.7 million  
  at March 31, 2016.        
  (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.  
           
           

 
             
             
  Non-GAAP Measures (unaudited)  
  ($ in thousands)  
             
      Three Months Ended  
      March 31, December 31, March 31,  
        2017     2016     2016    
             
    Actual End of Period Balances        
    GAAP shareholders' equity $ 1,846,359   $ 1,814,417   $ 1,508,643    
             
    Deduct:        
    Goodwill   655,018     655,018     584,634    
    Intangibles   34,657     37,677     32,443    
        689,675     692,695     617,077    
             
    Tangible shareholders' equity   $ 1,156,684   $ 1,121,722   $ 891,566    
             
    Average Balances        
    GAAP shareholders' equity $ 1,825,659   $ 1,825,993   $ 1,502,962    
             
    Deduct:        
    Goodwill   655,018     655,041     584,634    
    Intangibles   36,097     39,239     33,783    
        691,115     694,280     618,417    
             
    Average tangible shareholders' equity   $ 1,134,544   $ 1,131,713   $ 884,545    
             
    Actual End of Period Balances        
    GAAP assets $ 14,869,645   $ 14,860,237   $ 11,932,326    
             
    Add:        
    Trust overdrafts   86     122     48    
             
    Deduct:        
    Goodwill   655,018     655,018     584,634    
    Intangibles   34,657     37,677     32,443    
        689,675     692,695     617,077    
             
    Tangible assets   $ 14,180,056   $ 14,167,664   $ 11,315,297    
             
    Risk-weighted assets $ 10,171,517   $ 10,099,613   $ 7,795,646    
             
    GAAP net income $ 35,992   $ 33,456   $ 26,977    
             
    Add:        
    Intangible amortization (net of tax)   1,963     2,107     1,720    
             
    Tangible net income $ 37,955   $ 35,563   $ 28,697    
             
    Tangible Ratios          
    Return on tangible common equity   13.13 %   12.68 %   12.88 %  
    Return on average tangible common equity   13.38 %   12.57 %   12.98 %  
    Return on tangible assets   1.07 %   1.00 %   1.01 %  
    Tangible common equity to tangible assets   8.16 %   7.92 %   7.88 %  
    Tangible common equity to risk-weighted assets   11.37 %   11.11 %   11.44 %  
    Tangible common book value (1)   8.54     8.30     7.80    
             
    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 $ 1,191,735   $ 1,176,849   $ 975,717    
             
    Deduct:        
    Trust Preferred Securities   45,000     45,000     45,000    
    Additional Tier 1 capital deductions   (16,100 )   (30,968 )   (7,625 )  
        28,900     14,032     37,375    
             
    Tier 1 common equity   $ 1,162,835   $ 1,162,817   $ 938,342    
             
    Risk-weighted assets   10,171,517     10,099,613     7,795,646    
             
    Tier 1 common equity to risk-weighted assets     11.43 %   11.51 %   12.04 %  
             
             

Contacts:Media:Kathy A. Schoettlin - (812) 465-7269Executive Vice President - CommunicationsFinancial Community:Lynell J. Walton - (812) 464-1366Senior Vice President - Investor Relations