2 nd Quarter 2017 Highlights:
  • Earnings of $38.9 million, or $0.28 per share
  • Commercial and commercial real estate loan growth of 10.0% annualized from 1 st quarter 2017
  • Tangible book value 1 increase of 3.6% from 1 st quarter 2017

1 Non-GAAP measure - refer to Table 10 for Non-GAAP reconciliation

EVANSVILLE, Ind., July 25, 2017 (GLOBE NEWSWIRE) -- Today Old National Bancorp (the "Company" or "Old National") (NASDAQ:ONB) reported 2 nd quarter 2017 net income of $38.9 million, or $0.28 per diluted share.  Included in the current quarter were $0.5 million in pre-tax net branch consolidation charges and a $1.0 million pre-tax charge for a client experience improvement initiative.  This current quarter net income represents an increase of 8.0% over the 1 st quarter of 2017 net income of $36.0 million.  During the 1 st quarter, Old National incurred $1.4 million in pre-tax branch consolidation charges related to the 15 banking centers that were consolidated by the Company in January 2017.

"Our strong 2 nd quarter results are reflective of our transformation into higher growth markets and executing on our stated initiatives," said Old National Chairman and CEO Bob Jones. "With strong commercial loan growth and low credit costs, coupled with revenue growth and well-maintained expenses, this was a successful quarter of execution for Old National."

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 June 30, 2017, totaled $9.259 billion, an increase of $110.4 million, or 4.8% annualized, from the $9.149 billion at March 31, 2017.  Importantly, Old National's portfolio of commercial and commercial real estate loans grew by 10.0%, annualized, from the 1 st quarter to the 2 nd quarter of 2017. 

Total period-end core deposits, including demand and interest-bearing deposits, decreased $142.7 million to $10.561 billion at June 30, 2017, compared to $10.704 billion at March 31, 2017.    

Net interest income for the 2 nd quarter of 2017 totaled $104.3 million compared to $105.8 million in the 1 st quarter of 2017, and $99.3 million in the 2 nd quarter of 2016.  On a fully taxable equivalent basis, net interest income was $110.0 million for the 2 nd quarter of 2017 and represented a net interest margin on total average earning assets of 3.42%.  These results compare to net interest income on a fully taxable equivalent basis of $111.5 million and a margin of 3.50% in the 1 st quarter of 2017.   In the 2 nd quarter of 2016, Old National reported net interest income on a fully taxable equivalent basis of $104.6 million and a margin of 3.57%.  Refer to Table 3 for Non-GAAP taxable equivalent reconciliations.

In the 2 nd quarter of 2017, Old National recorded $9.7 million in accretion income as part of net interest income, which represents 30 basis points of the Company's net interest margin.  Accretion income is related to purchase accounting discounts from the Company's various acquisitions.  Total accretion income in the 1 st quarter of 2017 and the 2 nd quarter of 2016 reported by Old National was $12.6 million, or 40 basis points of the net interest margin, and $14.2 million, or 49 basis points of the net interest margin, respectively. 

Noninterest Income

Total noninterest income for the 2 nd quarter of 2017 amounted to $49.3 million and compares to $42.9 million reported in the 1 st quarter of 2017 and $93.4 million in the 2 nd quarter of 2016.  The current quarter included $1.6 million of recoveries on loans originated by AnchorBank, fsb that had been fully charged-off prior to the acquisition; the 1 st quarter of 2017 included $1.5 million of such recoveries.  During the 2 nd quarter of 2016, Old National recognized a $41.9 million pre-tax gain on the sale of its insurance subsidiary.  The 2 nd quarter of 2016 also included $7.1 million in insurance income, compared to essentially none in both the 1 st quarter of 2017 and the 2 nd quarter of 2017.

Noninterest Expenses

Noninterest expenses for Old National totaled $102.8 million for the 2 nd quarter of 2017.  The current quarter included $1.7 million in pre-tax charges: $0.7 million related to branch consolidations and $1.0 million related to a client-experience improvement initiative currently in process at the Company.  Noninterest expenses for the 1 st quarter of 2017 totaled $101.9 million and included $1.4 million in pre-tax charges related to branch consolidations.  In the 2 nd quarter of 2016, noninterest expenses totaled $121.5 million and included the following pre-tax charges:  $7.2 million for merger and integration, $4.9 million for the Old National Bank Foundation and community support and $1.1 million for branch consolidations.  Old National currently operates 188 branches throughout its franchise.

Capital

Old National's capital position at June 30, 2017, remained well above regulatory guideline minimums with regulatory tier 1 and total risk-based capital ratios of 11.8% and 12.3%, respectively, compared to 11.7% and 12.2% at March 31, 2017, and 11.8% and 12.4% at June 30, 2016.  Old National did not repurchase any stock in the open market during the 2 nd 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 June 30, 2017
Tier 1 Risk-Based Capital Ratio > 8.5% 11.8%
Total Risk-Based Capital Ratio > 10.5% 12.3%
Common Equity Tier 1 Capital Ratio   > 7.0% 11.5%
Tier 1 Leverage Capital Ratio > 4.0% 8.7%

Old National's ratio of tangible common equity to tangible assets was 8.41% at June 30, 2017, compared to 8.16% at March 31, 2017, and 8.10% at June 30, 2016.  Refer to Table 10 for Non-GAAP reconciliations. 

Credit

Old National recorded a provision expense of $1.4 million and had net charge-offs of $0.2 million in the 2 nd quarter of 2017.  These results compare to $0.3 million in provision expense and net charge-offs of $0.3 million, and provision expense of $1.3 million and net charge-offs of $0.2 million, in the 1 st quarter of 2017 and the 2 nd quarter of 2016, respectively.  Net charge-offs for the 2 nd quarter of 2017 were 0.01% of average total loans on an annualized basis, compared to net charge-offs of 0.01% of average total loans in both the 1 st quarter of 2017 and the 2 nd quarter of 2016, respectively.

Delinquencies remained low as Old National reported 30+ day delinquent loans of 0.32% in the 2 nd quarter of 2017 compared to 0.32% in the 1 st quarter of 2017.  Old National's 90+ day delinquent loans for the 2 nd quarter of 2017 were near zero compared to 0.01% for the 2 nd quarter of 2016.

At June 30, 2017, Old National's allowance for loan losses was $51.0 million, or 0.55% of total loans, compared to an allowance of $49.8 million, or 0.55% of total loans at March 31, 2017, and $51.8 million, or 0.59% of total loans, at June 30, 2016.  The coverage ratio (allowance to non-performing loans) stood at 37% at June 30, 2017, compared to 38% at March 31, 2017, and 30% at June 30, 2016.

In accordance with current accounting practices, the loans acquired from recent acquisitions were recorded at fair value with no allowance recorded at the acquisition date.  As of June 30, 2017, the remaining discount on these acquired loans was $107.6 million. 

The following table presents certain credit quality metrics related to Old National's loan portfolio:
Table 2 ($ in millions) 2Q17 1Q17 2Q16
Non-Performing Loans (NPLs) $139.6   $130.3   $174.2  
Problem Loans (Including NPLs)   238.0     219.9     250.2  
Special Mention Loans   99.5     95.9     106.9  
Net Charge-Off (Recoveries) Ratio   0.01 %   0.01 %   0.01 %
Provision for Loan Losses $1.4   $0.3   $1.3  
Allowance for Loan Losses   51.0     49.8     51.8  
Remaining Loan Discount on Acquired Loans   107.6     117.1     159.4  

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 $15.0 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, July 25, 2017, to discuss 2 nd 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 July 25 through August 8.  To access the replay, dial 1-855-859-2056, Conference ID Code 49543317.

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 3 - N on-GAAP Reconciliations-Fully Taxable Equivalent Net Interest Margin

($ in millions) 2Q17 1Q17 2Q16
Net Interest Income $ 104.3   $ 105.8   $ 99.3  
Taxable Equivalent Adjustment   5.7     5.7     5.3  
Net Interest Income - Taxable Equivalent $ 110.0   $ 111.5   $ 104.6  
Average Earning Assets $ 12,844.5   $ 12,742.9   $ 11,726.4  
Net Interest Margin   3.42 %   3.50 %   3.57 %    

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 4                
  Financial Highlights (unaudited)    
  ($ and shares in thousands, except per share data)    
                   
    Three Months Ended    Six Months Ended   
    June 30, March 31, June 30,   June 30, June 30,    
      2017     2017     2016       2017     2016      
  Income Statement                
  Net interest income $   104,333   $   105,801   $   99,340     $   210,134   $   184,983      
  Provision for loan losses   1,355     347     1,319       1,702     1,410      
  Noninterest income   49,271     42,920     93,385       92,191     142,836      
  Noninterest expense     102,811       101,891       121,472         204,702       219,827      
  Net income   38,854     35,992     39,122       74,846     66,099      
                   
                   
  Per Common Share Data (Diluted)                
  Net income available to common shareholders $   0.28   $   0.27   $   0.31     $   0.55   $   0.55      
  Average diluted shares outstanding   135,697     135,431     127,973       135,641     121,273      
  Book value   13.92     13.63     13.42       13.92     13.42      
  Stock price   17.25     17.35     12.53       17.25     12.53      
  Dividend payout ratio   46 %   48 %   42 %     47 %   47 %    
  Tangible common book value (1)     8.85       8.54       8.23         8.85       8.23      
                   
                   
  Performance Ratios                
  Return on average assets   1.05 %   0.98 %   1.16 %     1.01 %   1.04 %    
  Return on average common equity   8.33 %   7.89 %   9.22 %     8.11 %   8.26 %    
  Net interest margin (FTE)   3.42 %   3.50 %   3.57 %     3.46 %   3.54 %    
  Efficiency ratio (2)   64.05 %   64.66 %   60.22 %     64.35 %   63.76 %    
  Net charge-offs (recoveries) to average loans   0.01 %   0.01 %   0.01 %     0.01 %   0.05 %    
  Allowance for loan losses to ending loans   0.55 %   0.55 %   0.59 %     0.55 %   0.59 %    
  Non-performing loans to ending loans   1.51 %   1.43 %   1.97 %     1.51 %   1.97 %    
                   
                   
  Balance Sheet                
  Total loans $   9,232,040   $   9,131,773   $   8,830,158     $   9,232,040   $   8,830,158      
  Total assets   14,957,281     14,869,645     14,420,262       14,957,281     14,420,262      
  Total deposits   10,683,714     10,821,352     10,451,602       10,683,714     10,451,602      
  Total borrowed funds   2,259,918     2,066,617     1,935,555       2,259,918     1,935,555      
  Total shareholders' equity   1,886,594     1,846,359     1,811,117       1,886,594     1,811,117      
                   
                   
  Capital Ratios (1)                
  Risk-based capital ratios (EOP):                
    Tier 1 common equity   11.5 %   11.4 %   11.6 %     11.5 %   11.6 %    
    Tier 1   11.8 %   11.7 %   11.8 %     11.8 %   11.8 %    
    Total   12.3 %   12.2 %   12.4 %     12.3 %   12.4 %    
  Leverage ratio (to average assets)   8.7 %   8.5 %   8.9 %     8.7 %   9.5 %    
                   
  Total equity to assets (averages)   12.56 %   12.36 %   12.56 %     12.46 %   12.59 %    
  Tangible common equity to tangible assets   8.41 %   8.16 %   8.10 %     8.41 %   8.10 %    
                   
                   
  Nonfinancial Data                
  Full-time equivalent employees    2,652     2,659     2,919       2,652     2,919      
  Number of branches   188     188     206       188     206      
                   
  (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 5                
    Income Statement (unaudited)    
   ($ and shares in thousands, except per share data)   
                   
    Three Months Ended    Six Months Ended     
    June 30, March 31, June 30,   June 30, June 30,    
      2017   2017   2016       2017   2016    
  Interest income $   118,209 $   118,468 $   110,243     $   236,677 $   205,572    
  Less:  interest expense   13,876   12,667   10,903         26,543   20,589    
    Net interest income   104,333   105,801   99,340         210,134   184,983    
  Provision for loan losses   1,355   347   1,319         1,702   1,410    
    Net interest income after provision for loan losses   102,978   105,454   98,021         208,432   183,573    
                   
  Wealth management fees   9,679   8,999   9,355         18,678   17,476    
  Service charges on deposit accounts   10,040   9,843   10,437         19,883   20,076    
  Debit card and ATM fees   4,436   4,236   4,471         8,672   8,256    
  Mortgage banking revenue   5,186   4,226   5,203         9,412   8,123    
  Insurance premiums and commissions   160   107   7,122         267   20,243    
  Investment product fees   5,004   4,989   4,724         9,993   8,629    
  Capital markets income   2,747   1,031   794         3,778   1,413    
  Company-owned life insurance   2,117   2,149   2,080         4,266   4,118    
  Change in Indemnification Asset     -      -    888         -    233    
  Other income   6,776   5,794   4,621         12,570   9,426    
  Net gain on sale of ONB Insurance Group, Inc.     -      -      41,864         -      41,864    
  Gains (losses) on sales of securities   3,075   1,500   1,856         4,575   2,962    
  Gains (losses) on derivatives   51   46   (30 )       97   17    
    Total noninterest income   49,271   42,920   93,385         92,191   142,836    
                   
  Salaries and employee benefits   57,606   56,564   62,715         114,170   119,687    
  Occupancy   10,539   12,134   13,568         22,673   26,412    
  Equipment   3,350   3,227   3,316         6,577   6,209    
  Marketing   3,673   3,050   5,111         6,723   7,597    
  Data processing   8,226   7,608   8,676         15,834   15,799    
  Communication   2,288   2,414   2,535         4,702   4,399    
  Professional fees   4,077   2,651   5,181         6,728   8,549    
  Loan expenses   1,693   1,631   2,123         3,324   3,456    
  Supplies   594   579   598         1,173   1,181    
  FDIC assessment   2,130   2,487   2,030         4,617   3,949    
  Other real estate owned expense   1,009   1,115   2,099         2,124   2,523    
  Intangible amortization   2,781   3,020   3,365         5,801   6,012    
  Other expense     4,845     5,411     10,155         10,256   14,054    
    Total noninterest expense     102,811     101,891     121,472         204,702   219,827    
                   
    Income before income taxes     49,438     46,483     69,934         95,921     106,582    
    Income tax expense   10,584   10,491   30,812         21,075     40,483    
    Net income $   38,854 $   35,992 $   39,122     $   74,846 $   66,099    
                   
  Diluted Earnings Per Share                  
  Net income $   0.28 $   0.27 $   0.31     $   0.55 $   0.55    
                   
  Average Common Shares Outstanding                
    Basic     135,085     134,912     127,508         134,999     120,753    
    Diluted     135,697     135,431     127,973         135,641     121,273    
                   
  Common shares outstanding at end of period     135,516     135,435     135,005         135,516     135,005    
                   
                   

 
                     
    TABLE 6    
    Balance Sheet (unaudited)  
    ($ in thousands)  
                     
        June 30,   March 31,   June 30,    
          2017       2017       2016      
      Assets              
        Federal Reserve Bank account $   22,117     $   24,460     $   56,433      
        Money market investments     9,815         7,601         5,514      
        Investments:              
        Treasury and government sponsored agencies     586,258         595,172         694,264      
        Mortgage-backed securities     1,470,687         1,484,561         1,349,805      
        States and political subdivisions     1,118,437         1,144,412         1,128,700      
        Other securities     449,045         446,830         437,669      
        Total investments     3,624,427         3,670,975         3,610,438      
        Loans held for sale     27,425         17,373         44,422      
        Loans:              
        Commercial     2,001,621         1,910,536         1,893,700      
        Commercial and agriculture real estate     3,259,998         3,222,865         2,943,525      
        Consumer:               
        Home equity     472,198         464,911         473,550      
        Other consumer loans     1,398,849         1,421,199         1,419,613      
        Subtotal of commercial and consumer loans     7,132,666         7,019,511         6,730,388      
        Residential real estate     2,099,374         2,112,262         2,099,770      
        Total loans     9,232,040         9,131,773         8,830,158      
        Total earning assets     12,915,824         12,852,182         12,546,965      
                     
      Allowance for loan losses     (50,986 )       (49,834 )       (51,804 )    
      Non-earning Assets:              
        Cash and due from banks     230,809         184,974         205,973      
        Premises and equipment     413,933         420,866         231,656      
        Goodwill and intangible assets     686,894         689,675         699,760      
        Company-owned life insurance     354,875         353,786         350,193      
        Net deferred tax assets     146,780         165,376         179,448      
        Loan servicing rights     25,023         25,446         25,756      
        Other real estate owned     11,071         12,547         24,254      
        Other assets      223,058         214,627         208,061      
        Total non-earning assets     2,092,443         2,067,297         1,925,101      
        Total assets $   14,957,281     $   14,869,645     $   14,420,262      
                     
      Liabilities and Equity              
        Noninterest-bearing demand deposits $   3,011,156     $   3,024,111     $   2,883,917      
        NOW accounts     2,639,813         2,635,317         2,456,963      
        Savings accounts     2,924,689         2,997,919         2,616,365      
        Money market accounts     672,391         697,287         1,015,336      
        Other time deposits     1,313,199         1,349,303         1,300,611      
        Total core deposits     10,561,248         10,703,937         10,273,192      
        Brokered CD's     122,466         117,415         178,410      
        Total deposits     10,683,714         10,821,352         10,451,602      
                     
        Federal funds purchased and interbank borrowings     227,029         61,016         263,536      
        Securities sold under agreements to repurchase     298,094         345,550         354,123      
        Federal Home Loan Bank advances     1,515,628         1,441,030         1,099,240      
        Other borrowings     219,167         219,021         218,656      
        Total borrowed funds     2,259,918         2,066,617         1,935,555      
      Accrued expenses and other liabilities     127,055         135,317         221,988      
        Total liabilities     13,070,687         13,023,286         12,609,145      
                     
      Common stock, surplus, and retained earnings     1,917,714         1,894,924         1,834,734      
      Other comprehensive income     (31,120 )       (48,565 )       (23,617 )    
        Total shareholders' equity     1,886,594         1,846,359         1,811,117      
        Total liabilities and shareholders' equity $   14,957,281     $   14,869,645     $   14,420,262      
                   
                     

 
                               
   TABLE 7                            
  Average Balance Sheet and Interest Rates (unaudited)    
  ($ in thousands)    
                               
                               
      Three Months Ended   Three Months Ended   Three Months Ended    
      June 30, 2017   March 31, 2017   June 30, 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 $   27,222   $   55   0.80 %   $   27,482   $   31   0.46 %   $   23,604   $   21   0.36 %    
    Investments:                            
    Treasury and gov't sponsored agencies     575,940       2,798   1.94 %       540,422       2,780   2.06 %       738,642       3,586   1.94 %    
    Mortgage-backed securities     1,485,582       7,590   2.04 %       1,511,388       7,818   2.07 %       1,209,231       5,562   1.84 %    
    States and political subdivisions     1,122,769       13,375   4.76 %       1,133,373       13,607   4.80 %       1,117,367       13,207   4.73 %    
    Other securities       446,521       2,866   2.57 %       445,235       2,828   2.54 %       434,089       2,119   1.95 %    
    Total investments       3,630,812       26,629   2.93 %       3,630,418       27,033   2.98 %       3,499,329       24,474   2.80 %    
    Loans: (2)                            
    Commercial       1,938,751       19,352   3.95 %       1,887,929       19,088   4.04 %       1,825,627       17,709   3.84 %    
    Commercial and agriculture real estate     3,240,318       39,830   4.86 %       3,171,005       40,324   5.09 %       2,589,342       35,273   5.39 %    
    Consumer:                            
    Home equity       474,308       4,837   4.09 %       476,353       4,659   3.97 %       454,581       6,586   5.83 %    
    Other consumer loans     1,405,226       11,881   3.39 %       1,408,100       11,767   3.39 %       1,344,288       11,438   3.42 %    
    Subtotal commercial and consumer loans     7,058,603       75,900   4.31 %       6,943,387       75,838   4.43 %       6,213,838       71,006   4.60 %    
    Residential real estate loans     2,127,867       21,268   4.00 %       2,141,571       21,254   3.97 %       1,989,612       20,009   4.03 %    
                               
    Total loans       9,186,470       97,168   4.21 %       9,084,958       97,092   4.29 %       8,203,450       91,015   4.42 %    
                               
    Total earning assets $   12,844,504   $   123,852   3.84 %   $   12,742,858   $   124,156   3.91 %   $   11,726,383   $   115,510   3.93 %    
                               
  Less: Allowance for loan losses     (50,937 )           (50,710 )           (51,269 )        
                               
  Non-earning Assets:                            
  Cash and due from banks $   200,209         $   195,620         $   187,974          
  Other assets       1,860,676             1,877,849             1,655,720          
                               
    Total assets   $   14,854,452         $   14,765,617         $   13,518,808          
                               
  Interest-Bearing Liabilities:                          
    NOW accounts   $   2,643,123   $   511   0.08 %   $   2,585,814   $   456   0.07 %   $   2,416,761   $   405   0.07 %    
    Savings accounts       2,944,314       1,209   0.16 %       2,969,866       1,157   0.16 %       2,492,202       843   0.14 %    
    Money market accounts     684,911       146   0.09 %       706,990       149   0.09 %       861,791       282   0.13 %    
    Other time deposits       1,330,026       2,536   0.76 %       1,332,912       2,368   0.72 %       1,175,435       2,367   0.81 %    
    Total interest-bearing deposits     7,602,374       4,402   0.23 %       7,595,582       4,130   0.22 %       6,946,189       3,897   0.23 %    
    Brokered CD's        111,972       322   1.15 %       107,519       253   0.95 %       174,338       357   0.82 %    
    Total interest-bearing deposits and CD's     7,714,346       4,724   0.25 %       7,703,101       4,383   0.23 %       7,120,527       4,254   0.24 %    
                               
    Federal funds purchased and interbank borrowings     166,690       422   1.02 %       189,070       356   0.76 %       183,115       217   0.48 %    
    Securities sold under agreements to repurchase     329,182       334   0.41 %       331,400       256   0.31 %       378,838       391   0.42 %    
    Federal Home Loan Bank advances      1,443,453       6,017   1.67 %       1,429,977       5,312   1.51 %       983,174       3,610   1.48 %    
    Other borrowings        219,085       2,379   4.34 %       218,965       2,360   4.31 %       235,022       2,431   4.14 %    
    Total borrowed funds     2,158,410       9,152   1.70 %       2,169,412       8,284   1.55 %       1,780,149       6,649   1.50 %    
                               
    Total interest-bearing liabilities $   9,872,756   $   13,876   0.56 %   $   9,872,513   $   12,667   0.52 %   $   8,900,676   $   10,903   0.49 %    
                               
  Noninterest-Bearing Liabilities                          
  Demand deposits   $   2,988,147         $   2,917,053         $   2,725,417          
  Other liabilities       128,231             150,392             195,091          
  Shareholders' equity       1,865,318             1,825,659             1,697,624          
                               
  Total liabilities and shareholders' equity $   14,854,452         $   14,765,617         $   13,518,808          
                               
  Net interest rate spread         3.28 %         3.39 %         3.44 %    
                               
  Net interest margin (FTE)       3.42 %         3.50 %         3.57 %    
                               
  FTE adjustment     $   5,643       $   5,688       $   5,267      
                               
  (1) Interest income is reflected on a fully taxable equivalent basis (FTE).                      
  (2) Includes loans held for sale.                          

 
                     
   TABLE 8                  
  Average Balance Sheet and Interest Rates (unaudited)  
  ($ in thousands)  
                     
                     
      Six Months Ended   Six Months Ended  
      June 30, 2017   June 30, 2016  
      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 $   27,352   $   86   0.63 %   $   34,051   $   70   0.41 %  
    Investments:                  
    Treasury and gov't sponsored agencies     558,279       5,579   2.00 %       734,511       7,063   1.92 %  
    Mortgage-backed securities     1,498,414       15,408   2.06 %       1,129,876       10,639   1.88 %  
    States and political subdivisions     1,128,042       26,981   4.78 %       1,110,417       26,216   4.72 %  
    Other securities       445,881       5,694   2.55 %       431,206       4,956   2.30 %  
    Total investments       3,630,616       53,662   2.96 %       3,406,010       48,874   2.87 %  
    Loans: (2)                  
    Commercial       1,913,480       38,440   4.00 %       1,803,669       34,871   3.82 %  
    Commercial and agriculture real estate     3,205,853       80,154   4.97 %       2,243,147       63,311   5.58 %  
    Consumer:                  
    Home equity       475,325       9,496   4.03 %       434,189       10,865   5.03 %  
    Other consumer loans      1,406,655       23,648   3.39 %       1,277,640       21,118   3.32 %  
    Subtotal commercial and consumer loans     7,001,313       151,738   4.37 %       5,758,645       130,165   4.55 %  
    Residential real estate loans     2,134,681       42,522   3.98 %       1,830,000       36,930   4.05 %  
                     
    Total loans       9,135,994       194,260   4.25 %       7,588,645       167,095   4.39 %  
                     
    Total earning assets $   12,793,962   $   248,008   3.87 %   $   11,028,706   $   216,039   3.91 %  
                     
  Less: Allowance for loan losses     (50,824 )           (51,673 )      
                     
  Non-earning Assets:                  
  Cash and due from banks $   197,927         $   177,162        
  Other assets       1,869,215             1,557,129        
                     
    Total assets   $   14,810,280         $   12,711,324        
                     
  Interest-bearing Liabilities:                
    NOW accounts   $   2,614,627   $   967   0.07 %   $   2,265,779   $   643   0.06 %  
    Savings accounts       2,957,020       2,367   0.16 %       2,358,177       1,623   0.14 %  
    Money market accounts     695,890       295   0.09 %       707,133       372   0.11 %  
    Other time deposits       1,331,460       4,903   0.74 %       1,044,391       4,481   0.86 %  
    Total interest-bearing deposits     7,598,997       8,532   0.23 %       6,375,480       7,119   0.22 %  
    Brokered CD's        109,758       575   1.06 %       150,812       628   0.84 %  
    Total interest-bearing deposits and CD's     7,708,755       9,107   0.24 %       6,526,292       7,747   0.24 %  
                     
    Federal funds purchased and interbank borrowings     177,818       778   0.88 %       146,747       340   0.47 %  
    Securities sold under agreements to repurchase     330,285       590   0.36 %       382,441       764   0.40 %  
    Federal Home Loan Bank advances      1,436,752       11,329   1.59 %       1,044,933       7,027   1.35 %  
    Other borrowings        219,025       4,739   4.33 %       226,671       4,711   4.16 %  
    Total borrowed funds     2,163,880       17,436   1.62 %       1,800,792       12,842   1.43 %  
                     
    Total interest-bearing liabilities $   9,872,635   $   26,543   0.54 %   $   8,327,084   $   20,589   0.50 %  
                     
  Noninterest-Bearing Liabilities                
  Demand deposits       2,952,797             2,599,253        
  Other liabilities       139,250             184,694        
  Shareholders' equity       1,845,598             1,600,293        
                     
  Total liabilities and shareholders' equity $   14,810,280         $   12,711,324        
  Net interest rate spread         3.33 %         3.41 %  
                     
  Net interest margin (FTE)       3.46 %         3.54 %  
                     
  FTE adjustment      $   11,331       $   10,467    
                     
  (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   Six Months Ended  
    June 30, March 31, June 30,   June 30, June 30,  
      2017     2017     2016       2017     2016    
                 
  Beginning allowance for loan losses $   49,834   $   49,808   $   50,700     $   49,808   $   52,233    
                 
    Provision for loan losses     1,355       347       1,319         1,702       1,410    
                 
    Gross charge-offs     (3,380 )     (3,239 )     (2,677 )       (6,619 )     (6,619 )  
    Gross recoveries     3,177       2,918       2,462         6,095       4,780    
    Net (charge-offs) recoveries     (203 )     (321 )     (215 )       (524 )     (1,839 )  
                 
  Ending allowance for loan losses $   50,986   $   49,834   $   51,804     $   50,986   $   51,804    
                 
  Net charge-offs (recoveries) / average loans (1)   0.01 %   0.01 %   0.01 %     0.01 %   0.05 %  
                 
  Average loans outstanding (1) $   9,180,987   $   9,078,672   $   8,191,544     $   9,130,112   $   7,581,061    
                 
  EOP loans outstanding (1) $   9,232,040   $   9,131,773   $   8,830,158     $   9,232,040   $   8,830,158    
                 
  Allowance for loan losses / EOP loans (1)   0.55 %   0.55 %   0.59 %     0.55 %   0.59 %  
                 
  Underperforming Assets:              
    Loans 90 Days and over (still accruing) $   201   $   381   $   670     $   201   $   670    
                 
    Non-performing loans:              
    Nonaccrual loans (2)     125,519       115,377       160,340         125,519       160,340    
    Renegotiated loans     14,123       14,969       13,904         14,123       13,904    
    Total non-performing loans     139,642       130,346       174,244         139,642       174,244    
                 
    Foreclosed properties     11,071       12,547       24,254         11,071       24,254    
                 
  Total underperforming assets $   150,914   $   143,274   $   199,168     $   150,914   $   199,168    
                 
  Classified loans - "problem loans" $   237,997   $   219,929   $   250,214     $   237,997   $   250,214    
  Other classified assets     7,449       7,306       6,392         7,449       6,392    
  Criticized loans - "special mention loans"     99,502       95,881       106,886         99,502       106,886    
  Total classified and criticized assets $   344,948   $   323,116   $   363,492     $   344,948   $   363,492    
                 
  Non-performing loans / EOP loans (1)   1.51 %   1.43 %   1.97 %     1.51 %   1.97 %  
                 
  Allowance to non-performing loans (3)   37 %   38 %   30 %     37 %   30 %  
                 
  Under-performing assets / EOP loans (1)   1.63 %   1.57 %   2.26 %     1.63 %   2.26 %  
                 
  EOP total assets $   14,957,281   $   14,869,645   $   14,420,262     $   14,957,281   $   14,420,262    
                 
  Under-performing assets / EOP assets   1.01 %   0.96 %   1.38 %     1.01 %   1.38 %  
                 
   EOP - End of period actual balances               
   (1) Excludes loans held for sale.               
   (2) Includes renegotiated loans totaling $46.2 million at June 30, 2017, $34.2 million at March 31, 2017 and $38.1 million     
    at June 30, 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.   
                 
                 

 
                     
  TABLE 10                    
  Non-GAAP Measures (unaudited)    
  ($ in thousands)    
                     
      Three Months Ended    Six Months Ended     
      June 30, March 31, June 30,   June 30, June 30,    
        2017     2017     2016       2017     2016      
                     
    Actual End of Period Balances                
    GAAP shareholders' equity  $   1,886,594   $   1,846,359   $   1,811,117     $   1,886,594   $   1,811,117      
                     
    Deduct:                
    Goodwill      655,018       655,018       655,523         655,018       655,523      
    Intangibles      31,876       34,657       44,237         31,876       44,237      
          686,894       689,675       699,760         686,894       699,760      
                     
    Tangible shareholders' equity   $   1,199,700   $   1,156,684   $   1,111,357     $   1,199,700   $   1,111,357      
                     
    Average Balances                
    GAAP shareholders' equity  $   1,865,318   $   1,825,659   $   1,697,624     $   1,845,598   $   1,600,293      
                     
    Deduct:                
    Goodwill      655,018       655,018       646,131         655,018       615,383      
    Intangibles      33,189       36,097       45,710         34,635       39,747      
          688,207       691,115       691,841         689,653       655,130      
                     
    Average tangible shareholders' equity   $   1,177,111   $   1,134,544   $   1,005,783     $   1,155,945   $   945,163      
                     
    Actual End of Period Balances                
    GAAP assets  $   14,957,281   $   14,869,645   $   14,420,262     $   14,957,281   $   14,420,262      
                     
    Add:                
    Trust overdrafts     31       86       337         31       337      
                     
    Deduct:                
    Goodwill      655,018       655,018       655,523         655,018       655,523      
    Intangibles      31,876       34,657       44,237         31,876       44,237      
          686,894       689,675       699,760         686,894       699,760      
                     
    Tangible assets   $   14,270,418   $   14,180,056   $   13,720,839     $   14,270,418   $   13,720,839      
                     
    Risk-weighted assets $   10,367,804   $   10,171,517   $   9,624,966     $   10,367,804   $   9,624,966      
                     
    GAAP net income $   38,854   $   35,992   $   39,122     $   74,846   $   66,099      
                     
    Add:                
    Intangible amortization (net of tax)     1,807       1,963       2,188         3,770       3,908      
                     
    Tangible net income $   40,661   $   37,955   $   41,310     $   78,616   $   70,007      
                     
    Tangible Ratios                  
    Return on tangible common equity   13.56 %   13.13 %   14.87 %     13.11 %   12.60 %    
    Return on average tangible common equity   13.82 %   13.38 %   16.43 %     13.60 %   14.81 %    
    Return on tangible assets    1.14 %   1.07 %   1.20 %     1.10 %   1.02 %    
    Tangible common equity to tangible assets    8.41 %   8.16 %   8.10 %     8.41 %   8.10 %    
    Tangible common equity to risk-weighted assets    11.57 %   11.37 %   11.55 %     11.57 %   11.55 %    
    Tangible common book value (1)     8.85       8.54       8.23         8.85       8.23      
                     
    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 $   1,222,250   $   1,191,735   $   1,134,978     $   1,222,250   $   1,134,978      
                     
    Deduct:                
    Trust Preferred Securities     45,000       45,000       45,000         45,000       45,000      
    Additional Tier 1 capital deductions     (14,977 )     (16,100 )     (30,760 )       (14,977 )     (30,760 )    
          30,023       28,900       14,240         30,023       14,240      
                     
    Tier 1 common equity   $   1,192,227   $   1,162,835   $   1,120,738     $   1,192,227   $   1,120,738      
                     
    Risk-weighted assets     10,367,804       10,171,517       9,624,966         10,367,804       9,624,966      
                     
    Tier 1 common equity to risk-weighted assets     11.50 %   11.43 %   11.64 %     11.50 %   11.64 %    
                     
                     

 
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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