3 rd Quarter 2017 Highlights:
  • Earnings of $39.4 million, or $0.29 per share
  • Adjusted pre-tax, pre-provision income 1 of $61.1 million
  • Commercial and commercial real estate loan growth of 12.0% annualized from 2 nd quarter 2017
  • Cost of interest-bearing deposits (excluding brokered CD's) increased just 2 basis points to 0.25%
  • Tangible book value 1 increase of 1.9% from 2 nd quarter 2017

1 Non-GAAP measures - refer to Table 3 and Table 11 for Non-GAAP reconciliations

EVANSVILLE, Ind., Oct. 24, 2017 (GLOBE NEWSWIRE) --  Today Old National Bancorp (the "Company" or "Old National") (NASDAQ:ONB) reported 3 rd quarter 2017 net income of $39.4 million, or $0.29 per diluted share.  Included in the current quarter were the following pre-tax charges: $2.1 million for branch consolidations, $1.9 million for a client experience improvement initiative, $0.4 million for merger and integrations, and $0.3 million in severance.  This current quarter net income represents an increase of 1.3% over the 2 nd quarter of 2017 net income of $38.9 million.  During the 2 nd quarter, Old National incurred $0.5 million in pre-tax net branch consolidation charges and $1.0 million in pre-tax charges for the client experience improvement initiative.

"This quarter is a good illustration of the transformation of the Old National franchise." said Old National Chairman and CEO Bob Jones.  "Our recent entry into many of the higher growth markets in the Midwest is reflected in the strong commercial loan growth we have seen now for 10 quarters. This consistent growth, coupled with the ability to fund our balance sheet through core deposits and take advantage of low funding costs provides for stable margins and positions us well for future growth.

"Our transformation continues with the anticipated November 1 closing of our newest partnership with St. Paul, Minnesota-based Anchor Bancorp," Jones continued.  "This entry into yet another vibrant Midwestern market provides Old National with another quality platform to execute our basic bank strategy."  

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 September 30, 2017, totaled $9.428 billion, an increase of $168.8 million, or 7.3% annualized, from the $9.259 billion at June 30, 2017.  Importantly, Old National's portfolio of commercial and commercial real estate loans grew by 12.0%, annualized, from the 2 nd quarter to the 3 rd quarter of 2017. 

Total period-end core deposits, including demand and interest-bearing deposits, decreased $69.3 million to $10.492 billion at September 30, 2017, compared to $10.561 billion at June 30, 2017. Noninterest-bearing deposit balances increased $23.5 million during that same period, from $3.011 billion to $3.035 billion.

Net interest income for the 3 rd quarter of 2017 totaled $108.5 million compared to $104.3 million in the 2 nd quarter of 2017, and $107.8 million in the 3 rd quarter of 2016.  On a fully taxable equivalent basis, net interest income was $114.1 million for the 3 rd quarter of 2017 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 $110.0 million and a margin of 3.42% in the 2 nd quarter of 2017.   In the 3 rd quarter of 2016, Old National reported net interest income on a fully taxable equivalent basis of $113.1 million and a margin of 3.60%.  Refer to Table 4 for Non-GAAP taxable equivalent reconciliations.

In the 3 rd quarter of 2017, Old National recorded $11.1 million in accretion income as part of net interest income, which represents 34 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 2 nd quarter of 2017 and the 3 rd quarter of 2016 reported by Old National was $9.7 million, or 30 basis points of the net interest margin, and $15.9 million, or 51 basis points of the net interest margin, respectively. 

Noninterest Income

Total noninterest income for the 3 rd quarter of 2017 amounted to $46.4 million and compares to $49.3 million reported in the 2 nd quarter of 2017 and $47.2 million in the 3 rd quarter of 2016.  The current quarter included $0.6 million of recoveries on loans originated by AnchorBank, fsb that had been fully charged-off prior to the acquisition; the 2 nd quarter of 2017 included $1.6 million of such recoveries.

Noninterest Expenses

Noninterest expenses for Old National totaled $103.7 million for the 3 rd quarter of 2017.  The current quarter included $4.7 million in pre-tax charges: $2.1 million related to branch consolidations, $1.9 million related to a client-experience improvement initiative, $0.4 million for merger and integrations and $0.3 million in severance.  Old National did not incur any tax credit amortization in noninterest expenses in the 3 rd quarter of 2017 as originally projected.  Noninterest expenses for the 2 nd quarter of 2017 totaled $102.8 million and included $1.7 million in pre-tax charges: $0.7 million related to branch consolidations and $1.0 million related to the client-experience improvement initiative.  In the 3 rd quarter of 2016, noninterest expenses totaled $108.1 million and included $5.5 million in pre-tax merger and integration charges.  Old National consolidated 15 branches in the 1 st quarter of 2017 and plans to consolidate another 14 branches in the 4 th quarter of the current year.  Old National currently operates 188 branches throughout its franchise.

Capital

Old National's capital position at September 30, 2017, remained well above regulatory guideline minimums with regulatory tier 1 and total risk-based capital ratios of 12.0% and 12.5%, respectively, compared to 11.8% and 12.3% at June 30, 2017, and 11.9% and 12.5% at September 30, 2016.  Old National did not repurchase any stock in the open market during the 3 rd 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 September 30, 2017
Tier 1 Risk-Based Capital Ratio > 8.5% 12.0%
Total Risk-Based Capital Ratio > 10.5% 12.5%
Common Equity Tier 1 Capital Ratio   > 7.0% 11.7%
Tier 1 Leverage Capital Ratio > 4.0% 8.8%

Old National's ratio of tangible common equity to tangible assets was 8.50% at September 30, 2017, compared to 8.41% at June 30, 2017, and 8.13% at September 30, 2016.  Refer to Table 11 for Non-GAAP reconciliations. 

As part of the Dodd-Frank Act Stress Test requirements, on October 24, 2017, Old National publicly disclosed the results of its 2017 stress test.  These results can be found on the Company's website at oldnational.com.

Credit

Old National recorded a provision expense of $0.3 million and had net charge-offs of $1.1 million in the 3 rd quarter of 2017.  These results compare to $1.4 million in provision expense and net charge-offs of $0.2 million, and provision expense of $1.3 million and net charge-offs of $1.6 million, in the 2 nd quarter of 2017 and the 3 rd quarter of 2016, respectively.  Net charge-offs for the 3 rd quarter of 2017 were 0.05% of average total loans on an annualized basis, compared to net charge-offs of 0.01% of average total loans in the 2 nd quarter of 2017 and 0.07% in the 3 rd quarter of 2016.  On a year-to-date basis, Old National recorded provision expense of $2.0 million and had net charge-offs of $1.7 million.

Delinquencies remained low as Old National reported 30+ day delinquent loans of 0.34% in the 3 rd quarter of 2017 compared to 0.32% in the 2 nd quarter of 2017.  Old National's 90+ day delinquent loans for the 3 rd quarter of 2017 were 0.01% compared to near zero for the 3 rd quarter of 2016.

At September 30, 2017, Old National's allowance for loan losses was $50.2 million, or 0.53% of total loans, compared to an allowance of $51.0 million, or 0.55% of total loans at June 30, 2017, and $51.5 million, or 0.58% of total loans, at September 30, 2016.  The coverage ratio (allowance to non-performing loans) stood at 37% at September 30, 2017, compared to 37% at June 30, 2017, and 31% at September 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 September 30, 2017, the remaining discount on these acquired loans was $96.5 million. 

The following table presents certain credit quality metrics related to Old National's loan portfolio:
Table 2 ($ in millions) 3Q17 2Q17 3Q16
Non-Performing Loans (NPLs)   $137.1     $139.6     $165.3  
Problem Loans (Including NPLs)   209.5     238.0     233.5  
Special Mention Loans   130.2     99.5     125.8  
Net Charge-Off (Recoveries) Ratio   0.05 %   0.01 %   0.07 %
Provision for Loan Losses   $0.3     $1.4     $1.3  
Allowance for Loan Losses   50.2     51.0     51.5  
Remaining Loan Discount on Acquired Loans   96.5     107.6     144.3  

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 $15.1 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 CallOld National will hold a conference call at 10:00 a.m. Central Time on Tuesday, October 24, 2017, to discuss 3 rd 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 7:00 a.m. Central Time on October 25 through November 7.  To access the replay, dial 1-855-859-2056, Conference ID Code 93364517.

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 3 - Pre-Tax, Pre-Provision Income 
($ in millions) 3Q17
Net Interest Income (FTE Basis) $ 114.1  
Noninterest Income   46.4  
Total Revenue (FTE Basis) $ 160.5  
Noninterest Expense   (103.7 )
Pre-Tax, Pre-Provision Income $ 56.8  
   
Securities Gains $ 3.0  
Branch Consolidations, Severance and Client Experience Initiative Charges   4.3  
Merger and Integration Charges   0.4  
Tax Credit Amortization   -  
Intangible Amortization   2.6  
   
Adjusted Total Revenue (FTE Basis) $ 157.5  
Adjusted Noninterest Expenses ($ 96.4 )
   
Adjusted Pre-Tax, Pre-Provision Income $ 61.1  

Table 4 - N on-GAAP Reconciliations-Fully Taxable Equivalent Net Interest Margin
($ in millions) 3Q17 2Q17 3Q16
Net Interest Income $ 108.5   $ 104.3   $ 107.8  
Taxable Equivalent Adjustment   5.6     5.7     5.3  
Net Interest Income - Taxable Equivalent $ 114.1   $ 110.0   $ 113.1  
Average Earning Assets $ 12,959.7   $ 12,844.5   $ 12,575.5  
Net Interest Margin   3.52 %   3.42 %   3.60 %

           

Additional Information for Shareholders of Anchor Bancorp, Inc. Communications in this document do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, Old National Bancorp ("ONB") has filed with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S-4 (Registration Statement No. 333-220434) that includes a Proxy Statement of Anchor Bancorp, Inc. ("Anchor") and a Prospectus of ONB, as well as other relevant documents concerning the proposed transaction. Anchor shareholders are urged to read the Registration Statement and the Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about ONB and Anchor, may be obtained at the SEC's Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from ONB at www.oldnational.com under the tab "Investor Relations" and then under the heading "Financial Information" or from Anchor by accessing Anchor's website at www.anchorlink.com under the tab "About Us." ONB and Anchor and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Anchor in connection with the proposed merger. Information about the directors and executive officers of ONB is set forth in the proxy statement for ONB's 2017 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 6, 2017. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.

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 proposed merger with Anchor might not be realized within the expected timeframes and costs or difficulties relating to integration matters might be greater than expected; satisfaction of closing conditions for the Anchor merger; 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    Nine Months Ended   
    September 30, June 30, September 30,   September 30, September 30,    
      2017     2017     2016       2017     2016      
  Income Statement                
  Net interest income $   108,478   $   104,333   $   107,803     $   318,612   $   292,786      
  Provision for loan losses   311     1,355     1,306       2,013     2,716      
  Noninterest income   46,366     49,271     47,243       138,557     190,079      
  Noninterest expense     103,702       102,811       108,062         308,404       327,889      
  Net income   39,372     38,854     34,709       114,218     100,808      
                   
                   
  Per Common Share Data (Diluted)                
  Net income available to common shareholders $   0.29   $   0.28   $   0.25     $   0.84   $   0.80      
  Average diluted shares outstanding   135,796     135,697     135,011       135,693     125,839      
  Book value   14.07     13.92     13.59       14.07     13.59      
  Stock price   18.30     17.25     14.06       18.30     14.06      
  Dividend payout ratio   43 %   46 %   52 %     46 %   49 %    
  Tangible common book value (1)     9.02       8.85       8.43         9.02       8.43      
                   
                   
  Performance Ratios                
  Return on average assets   1.05 %   1.05 %   0.96 %     1.02 %   1.01 %    
  Return on average common equity   8.31 %   8.33 %   7.62 %     8.18 %   8.03 %    
  Net interest margin (FTE)   3.52 %   3.42 %   3.60 %     3.48 %   3.56 %    
  Efficiency ratio (2)   64.17 %   64.05 %   66.05 %     64.29 %   64.50 %    
  Net charge-offs (recoveries) to average loans   0.05 %   0.01 %   0.07 %     0.02 %   0.06 %    
  Allowance for loan losses to ending loans   0.53 %   0.55 %   0.58 %     0.53 %   0.58 %    
  Non-performing loans to ending loans   1.46 %   1.51 %   1.86 %     1.46 %   1.86 %    
                   
                   
  Balance Sheet                
  Total loans $   9,398,124   $   9,232,040   $   8,904,985     $   9,398,124   $   8,904,985      
  Total assets   15,065,800     14,957,281     14,703,071       15,065,800     14,703,071      
  Total deposits   10,606,784     10,683,714     10,646,708       10,606,784     10,646,708      
  Total borrowed funds   2,411,111     2,259,918     2,023,099       2,411,111     2,023,099      
  Total shareholders' equity   1,906,823     1,886,594     1,834,457       1,906,823     1,834,457      
                   
                   
  Capital Ratios (1)                
  Risk-based capital ratios (EOP):                
    Tier 1 common equity   11.7 %   11.5 %   11.8 %     11.7 %   11.8 %    
    Tier 1   12.0 %   11.8 %   11.9 %     12.0 %   11.9 %    
    Total   12.5 %   12.3 %   12.5 %     12.5 %   12.5 %    
  Leverage ratio (to average assets)   8.8 %   8.7 %   8.4 %     8.8 %   9.2 %    
                   
  Total equity to assets (averages)   12.65 %   12.56 %   12.60 %     12.53 %   12.59 %    
  Tangible common equity to tangible assets   8.50 %   8.41 %   8.13 %     8.50 %   8.13 %    
                   
                   
  Nonfinancial Data                
  Full-time equivalent employees    2,592     2,652     2,910       2,592     2,910      
  Number of branches   188     188     201       188     201      
                   
  (1) See non-GAAP measures on Table 11.                
  (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    Nine Months Ended     
    September 30, June 30, September 30,   September 30, September 30,    
      2017   2017   2016     2017   2016    
  Interest income $   123,525 $   118,209 $   119,713   $   360,202 $   325,285    
  Less:  interest expense   15,047   13,876   11,910       41,590   32,499    
    Net interest income   108,478   104,333   107,803       318,612   292,786    
  Provision for loan losses   311   1,355   1,306       2,013   2,716    
    Net interest income after provision for loan losses   108,167   102,978   106,497       316,599   290,070    
                   
  Wealth management fees   8,837   9,679   8,572       27,515   26,048    
  Service charges on deposit accounts   10,535   10,040   11,054       30,418   31,130    
  Debit card and ATM fees   4,248   4,436   4,330       12,920   12,586    
  Mortgage banking revenue   5,104   5,186   7,718       14,516   15,841    
  Insurance premiums and commissions   170   160   132       437   20,375    
  Investment product fees   5,193   5,004   5,038       15,186   13,667    
  Capital markets income   1,843   2,747   849       5,621   2,262    
  Company-owned life insurance   2,022   2,117   2,163       6,288   6,281    
  Change in Indemnification Asset     -      -      -        -    233    
  Other income   5,400   6,776   5,668       17,970   15,094    
  Net gain on sale of ONB Insurance Group, Inc.     -      -      -        -      41,864    
  Gains (losses) on sales of securities   2,972   3,075   1,647       7,547   4,609    
  Gains (losses) on derivatives   42   51   72       139   89    
    Total noninterest income   46,366   49,271   47,243       138,557   190,079    
                   
  Salaries and employee benefits   57,783   57,606   60,861       171,953   180,548    
  Occupancy   11,670   10,539   12,944       34,343   39,356    
  Equipment   3,485   3,350   3,564       10,062   9,773    
  Marketing   2,646   3,673   3,528       9,369   11,125    
  Data processing   7,696   8,226   8,242       23,530   24,041    
  Communication   2,163   2,288   2,755       6,865   7,154    
  Professional fees   4,589   4,077   3,252       11,317   11,801    
  Loan expenses   1,542   1,693   2,213       4,866   5,669    
  Supplies   547   594   799       1,720   1,980    
  FDIC assessment   2,197   2,130   2,149       6,814   6,098    
  Other real estate owned expense   511   1,009   728       2,635   3,251    
  Intangible amortization   2,641   2,781   3,233       8,442   9,245    
  Other expense     6,232     4,845     3,794       16,488   17,848    
    Total noninterest expense     103,702     102,811     108,062       308,404     327,889    
                   
    Income before income taxes     50,831     49,438     45,678       146,752     152,260    
    Income tax expense   11,459   10,584   10,969       32,534     51,452    
    Net income $   39,372 $   38,854 $   34,709   $   114,218 $   100,808    
                   
  Diluted Earnings Per Share                  
  Net income $   0.29 $   0.28 $   0.25   $   0.84 $   0.80    
                   
  Average Common Shares Outstanding                
    Basic     135,120     135,085     134,492       135,040     125,366    
    Diluted     135,796     135,697     135,011       135,693     125,839    
                   
  Common shares outstanding at end of period     135,523     135,516     134,985       135,523     134,985    
                   
                   

                     
    TABLE 7  
    Balance Sheet (unaudited)  
    ($ in thousands)  
                     
        September 30,   June 30,   September 30,    
          2017       2017       2016      
      Assets              
        Federal Reserve Bank account $   32,333     $   22,117     $   31,634      
        Money market investments     17,382         9,815         4,513      
        Investments:              
          Treasury and government sponsored agencies     582,051         586,258         622,726      
          Mortgage-backed securities     1,458,385         1,470,687         1,495,683      
          States and political subdivisions     1,095,975         1,118,437         1,148,147      
          Other securities     451,082         449,045         449,614      
            Total investments     3,587,493         3,624,427         3,716,170      
        Loans held for sale     30,221         27,425         60,465      
        Loans:              
          Commercial     2,049,054         2,001,621         1,836,380      
          Commercial and agriculture real estate     3,370,211         3,259,998         3,092,575      
          Consumer:               
            Home equity     477,100         472,198         481,995      
            Other consumer loans     1,382,639         1,398,849         1,388,803      
        Subtotal of commercial and consumer loans     7,279,004         7,132,666         6,799,753      
        Residential real estate     2,119,120         2,099,374         2,105,232      
          Total loans     9,398,124         9,232,040         8,904,985      
            Total earning assets     13,065,553         12,915,824         12,717,767      
                     
      Allowance for loan losses     (50,169 )       (50,986 )       (51,547 )    
      Non-earning Assets:              
         Cash and due from banks     202,652         230,809         224,893      
         Premises and equipment     412,488         413,933         333,266      
         Goodwill and intangible assets     684,253         686,894         696,128      
         Company-owned life insurance     356,897         354,875         351,431      
         Net deferred tax assets     137,951         146,780         169,466      
         Loan servicing rights     24,900         25,023         25,920      
         Other real estate owned     10,259         11,071         23,719      
         Other assets      221,016         223,058         212,028      
            Total non-earning assets     2,050,416         2,092,443         2,036,851      
              Total assets $   15,065,800     $   14,957,281     $   14,703,071      
                     
      Liabilities and Equity              
        Noninterest-bearing demand deposits $   3,034,696     $   3,011,156     $   2,944,331      
        NOW accounts     2,539,233         2,639,813         2,486,190      
        Savings accounts     2,932,488         2,924,689         2,963,637      
        Money market accounts     648,378         672,391         687,895      
        Other time deposits     1,337,156         1,313,199         1,400,068      
          Total core deposits     10,491,951         10,561,248         10,482,121      
        Brokered CD's     114,833         122,466         164,587      
          Total deposits     10,606,784         10,683,714         10,646,708      
                     
        Federal funds purchased and interbank borrowings     317,021         227,029         125,121      
        Securities sold under agreements to repurchase     285,409         298,094         347,804      
        Federal Home Loan Bank advances     1,589,367         1,515,628         1,331,379      
        Other borrowings     219,314         219,167         218,795      
          Total borrowed funds     2,411,111         2,259,918         2,023,099      
      Accrued expenses and other liabilities     141,082         127,055         198,807      
          Total liabilities     13,158,977         13,070,687         12,868,614      
                     
      Common stock, surplus, and retained earnings     1,941,020         1,917,714         1,853,286      
      Other comprehensive income     (34,197 )       (31,120 )       (18,829 )    
          Total shareholders' equity     1,906,823         1,886,594         1,834,457      
            Total liabilities and shareholders' equity $   15,065,800     $   14,957,281     $   14,703,071      
                   
                     

                                 
    TABLE 8                            
    Average Balance Sheet and Interest Rates (unaudited)    
    ($ in thousands)    
                                 
                                 
        Three Months Ended   Three Months Ended   Three Months Ended    
        September 30, 2017   June 30, 2017   September 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    
      Money market and other interest-earning                          
        investments   $   32,755   $   85 1.03 %   $   27,222   $   55 0.80 %   $   21,923   $   23 0.42 %    
      Investments:                            
        Treasury and gov't sponsored agencies     585,354       2,844 1.94 %       575,940       2,798 1.94 %       671,295       3,390 2.02 %    
        Mortgage-backed securities     1,456,034       7,235 1.99 %       1,485,582       7,590 2.04 %       1,414,753       6,353 1.80 %    
        States and political subdivisions     1,103,721       13,065 4.73 %       1,122,769       13,375 4.76 %       1,139,983       13,329 4.68 %    
        Other securities       453,782       3,043 2.68 %       446,521       2,866 2.57 %       446,870       2,566 2.30 %    
          Total investments       3,598,891       26,187 2.91 %       3,630,812       26,629 2.93 %       3,672,901       25,638 2.79 %    
      Loans: (2)                            
        Commercial       2,021,614       20,731 4.01 %       1,938,751       19,352 3.95 %       1,861,906       18,268 3.84 %    
        Commercial and agriculture real estate     3,298,435       43,646 5.18 %       3,240,318       39,830 4.86 %       2,975,029       41,906 5.51 %    
        Consumer:                            
          Home equity       479,492       5,065 4.19 %       474,308       4,837 4.09 %       483,678       4,895 4.03 %    
          Other consumer loans     1,384,057       12,242 3.51 %       1,405,226       11,881 3.39 %       1,404,947       11,960 3.39 %    
        Subtotal commercial and consumer loans     7,183,598       81,684 4.51 %       7,058,603       75,900 4.31 %       6,725,560       77,029 4.56 %    
        Residential real estate loans     2,144,478       21,190 3.95 %       2,127,867       21,268 4.00 %       2,155,070       22,343 4.14 %    
                                 
          Total loans       9,328,076       102,874 4.35 %       9,186,470       97,168 4.21 %       8,880,630       99,372 4.41 %    
                                 
          Total earning assets $   12,959,722   $   129,146 3.95 %   $   12,844,504   $   123,852 3.84 %   $   12,575,454   $   125,033 3.94 %    
                                 
    Less: Allowance for loan losses     (51,130 )           (50,937 )           (52,809 )        
                                 
    Non-earning Assets:                            
      Cash and due from banks $   233,017         $   200,209         $   204,991          
      Other assets       1,845,612             1,860,676             1,721,772          
                                 
            Total assets   $   14,987,221         $   14,854,452         $   14,449,408          
                                 
    Interest-Bearing Liabilities:                          
      NOW accounts   $   2,570,321   $   544 0.08 %   $   2,643,123   $   511 0.08 %   $   2,461,799   $   456 0.07 %    
      Savings accounts       2,934,445       1,289 0.17 %       2,944,314       1,209 0.16 %       2,708,307       962 0.14 %    
      Money market accounts     661,635       142 0.09 %       684,911       146 0.09 %       936,232       326 0.14 %    
      Other time deposits       1,347,095       2,800 0.82 %       1,330,026       2,536 0.76 %       1,352,876       2,704 0.79 %    
          Total interest-bearing deposits     7,513,496       4,775 0.25 %       7,602,374       4,402 0.23 %       7,459,214       4,448 0.24 %    
       Brokered CD's        119,707       350 1.16 %       111,972       322 1.15 %       174,375       371 0.85 %    
          Total interest-bearing deposits and CD's     7,633,203       5,125 0.27 %       7,714,346       4,724 0.25 %       7,633,589       4,819 0.25 %    
                                 
      Federal funds purchased and interbank borrowings     220,918       655 1.18 %       166,690       422 1.02 %       178,770       226 0.50 %    
      Securities sold under agreements to repurchase     315,285       280 0.35 %       329,182       334 0.41 %       355,734       375 0.42 %    
      Federal Home Loan Bank advances      1,506,606       6,618 1.74 %       1,443,453       6,017 1.67 %       1,129,756       4,137 1.46 %    
      Other borrowings        219,241       2,369 4.32 %       219,085       2,379 4.34 %       218,720       2,353 4.30 %    
          Total borrowed funds     2,262,050       9,922 1.74 %       2,158,410       9,152 1.70 %       1,882,980       7,091 1.50 %    
                                 
          Total interest-bearing liabilities $   9,895,253   $   15,047 0.61 %   $   9,872,756   $   13,876 0.56 %   $   9,516,569   $   11,910 0.50 %    
                                 
    Noninterest-Bearing Liabilities                          
     Demand deposits   $   3,049,503         $   2,988,147         $   2,895,945          
     Other liabilities       146,271             128,231             215,620          
     Shareholders' equity       1,896,194             1,865,318             1,821,274          
                                 
     Total liabilities and shareholders' equity $   14,987,221         $   14,854,452         $   14,449,408          
                                 
    Net interest rate spread       3.34 %       3.28 %       3.44 %    
                                 
    Net interest margin (FTE)     3.52 %       3.42 %       3.60 %    
                                 
    FTE adjustment     $   5,621       $   5,643       $   5,320      
                                 
    (1) Interest income is reflected on a fully taxable equivalent basis (FTE).                      
    (2) Includes loans held for sale.                          
                                 

                         
    TABLE 9                    
    Average Balance Sheet and Interest Rates (unaudited)    
    ($ in thousands)    
                         
                         
        Nine Months Ended   Nine Months Ended    
        September 30, 2017   September 30, 2016    
        Average Income (1)/ Yield/   Average Income (1)/ Yield/    
    Earning Assets:   Balance Expense Rate   Balance Expense Rate    
      Money market and other interest-earning                  
        investments   $   29,172   $   171 0.78 %   $   29,979   $   93 0.42 %    
      Investments:                    
        Treasury and gov't sponsored agencies     567,403       8,422 1.98 %       713,285       10,454 1.95 %    
        Mortgage-backed securities     1,484,132       22,643 2.03 %       1,225,528       16,992 1.85 %    
        States and political subdivisions     1,119,846       40,047 4.77 %       1,120,344       39,545 4.71 %    
        Other securities       448,544       8,738 2.60 %       436,466       7,522 2.30 %    
          Total investments       3,619,925       79,850 2.94 %       3,495,623       74,513 2.85 %    
      Loans: (2)                    
        Commercial       1,949,921       59,171 4.00 %       1,823,223       53,138 3.83 %    
        Commercial and agriculture real estate     3,237,053       123,800 5.04 %       2,488,888       105,217 5.55 %    
        Consumer:                    
          Home equity       476,729       14,560 4.08 %       450,805       15,759 4.67 %    
          Other consumer loans     1,399,040       35,890 3.43 %       1,320,386       33,078 3.35 %    
        Subtotal commercial and consumer loans     7,062,743       233,421 4.42 %       6,083,302       207,192 4.55 %    
        Residential real estate loans     2,137,982       63,712 3.97 %       1,939,148       59,274 4.08 %    
                         
          Total loans       9,200,725       297,133 4.28 %       8,022,450       266,466 4.40 %    
                         
          Total earning assets $   12,849,822   $   377,154 3.90 %   $   11,548,052   $   341,072 3.92 %    
                         
    Less: Allowance for loan losses     (50,927 )           (52,054 )        
                         
    Non-earning Assets:                    
     Cash and due from banks $   209,752         $   186,506          
     Other assets       1,861,261             1,612,410          
                         
          Total assets   $   14,869,908         $   13,294,914          
                         
    Interest-Bearing Liabilities:                  
      NOW accounts   $   2,599,696   $   1,511 0.08 %   $   2,331,596   $   1,099 0.06 %    
      Savings accounts       2,949,412       3,655 0.17 %       2,475,739       2,585 0.14 %    
      Money market accounts     684,346       437 0.09 %       784,057       698 0.12 %    
      Other time deposits       1,336,729       7,704 0.77 %       1,147,969       7,184 0.84 %    
        Total interest-bearing deposits     7,570,183       13,307 0.24 %       6,739,361       11,566 0.23 %    
      Brokered CD's        113,111       925 1.09 %       158,724       1,000 0.84 %    
        Total interest-bearing deposits and CD's     7,683,294       14,232 0.25 %       6,898,085       12,566 0.24 %    
                         
      Federal funds purchased and interbank borrowings     192,343       1,433 1.00 %       157,499       566 0.48 %    
      Securities sold under agreements to repurchase     325,230       870 0.36 %       373,474       1,139 0.41 %    
      Federal Home Loan Bank advances      1,460,293       17,947 1.64 %       1,073,414       11,164 1.39 %    
      Other borrowings        219,097       7,108 4.33 %       224,000       7,064 4.20 %    
        Total borrowed funds     2,196,963       27,358 1.66 %       1,828,387       19,933 1.46 %    
                         
        Total interest-bearing liabilities $   9,880,257   $   41,590 0.56 %   $   8,726,472   $   32,499 0.50 %    
                         
    Noninterest-Bearing Liabilities                  
    Demand deposits   $   2,985,386         $   2,698,873          
    Other liabilities       141,616             195,078          
    Shareholders' equity       1,862,649             1,674,491          
                         
    Total liabilities and shareholders' equity $   14,869,908         $   13,294,914          
                         
    Net interest rate spread       3.34 %       3.42 %    
                         
    Net interest margin (FTE)     3.48 %       3.56 %    
                         
    FTE adjustment     $   16,952       $   15,787      
                         
    (1) Interest income is reflected on a fully taxable equivalent basis (FTE).                
    (2) Includes loans held for sale.                  
                         

                 
  TABLE 10              
  Asset Quality (EOP) (unaudited)  
  ($ in thousands)  
                 
    Three Months Ended   Nine Months Ended  
    September 30, June 30, September 30,   September 30, September 30,  
      2017     2017     2016       2017     2016    
                 
  Beginning allowance for loan losses $   50,986   $   49,834   $   51,804     $   49,808   $   52,233    
                 
    Provision for loan losses     311       1,355       1,306         2,013       2,716    
                 
      Gross charge-offs     (2,821 )     (3,380 )     (4,519 )       (9,440 )     (11,138 )  
      Gross recoveries     1,693       3,177       2,956         7,788       7,736    
    Net (charge-offs) recoveries     (1,128 )     (203 )     (1,563 )       (1,652 )     (3,402 )  
                 
  Ending allowance for loan losses $   50,169   $   50,986   $   51,547     $   50,169   $   51,547    
                 
  Net charge-offs (recoveries) / average loans (1)   0.05 %   0.01 %   0.07 %     0.02 %   0.06 %  
                 
  Average loans outstanding (1) $   9,320,868   $   9,180,987   $   8,865,400     $   9,194,396   $   8,012,299    
                 
  EOP loans outstanding (1) $   9,398,124   $   9,232,040   $   8,904,985     $   9,398,124   $   8,904,985    
                 
  Allowance for loan losses / EOP loans (1)   0.53 %   0.55 %   0.58 %     0.53 %   0.58 %  
                 
  Underperforming Assets:              
    Loans 90 Days and over (still accruing) $   879   $   201   $   443     $   879   $   443    
                 
    Non-performing loans:              
      Nonaccrual loans (2)     119,256       125,519       151,484         119,256       151,484    
      Renegotiated loans     17,886       14,123       13,860         17,886       13,860    
        Total non-performing loans     137,142       139,642       165,344         137,142       165,344    
                 
    Foreclosed properties     10,259       11,071       23,719         10,259       23,719    
                 
  Total underperforming assets $   148,280   $   150,914   $   189,506     $   148,280   $   189,506    
                 
  Classified loans - "problem loans" $   209,524   $   237,997   $   233,469     $   209,524   $   233,469    
  Other classified assets     7,526       7,449       6,634         7,526       6,634    
  Criticized loans - "special mention loans"     130,197       99,502       125,840         130,197       125,840    
  Total classified and criticized assets $   347,247   $   344,948   $   365,943     $   347,247   $   365,943    
                 
  Non-performing loans / EOP loans (1)   1.46 %   1.51 %   1.86 %     1.46 %   1.86 %  
                 
  Allowance to non-performing loans (3)   37 %   37 %   31 %     37 %   31 %  
                 
  Under-performing assets / EOP loans (1)   1.58 %   1.63 %   2.13 %     1.58 %   2.13 %  
                 
  EOP total assets $   15,065,800   $   14,957,281   $   14,703,071     $   15,065,800   $   14,703,071    
                 
  Under-performing assets / EOP assets   0.98 %   1.01 %   1.29 %     0.98 %   1.29 %  
                 
   EOP - End of period actual balances               
   (1) Excludes loans held for sale.               
   (2) Includes renegotiated loans totaling $43.7 million at September 30, 2017, $46.2 million at June 30, 2017 and $29.9 million     
    at September 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 11                
  Non-GAAP Measures (unaudited)    
  ($ in thousands)    
                     
      Three Months Ended    Nine Months Ended     
      September 30, June 30, September 30,   September 30, September 30,    
        2017     2017     2016       2017     2016      
                     
    Actual End of Period Balances                
    GAAP shareholders' equity  $   1,906,823   $   1,886,594   $   1,834,457     $   1,906,823   $   1,834,457      
                     
    Deduct:                
    Goodwill      655,018       655,018       655,210         655,018       655,210      
    Intangibles      29,235       31,876       40,918         29,235       40,918      
          684,253       686,894       696,128         684,253       696,128      
                     
    Tangible shareholders' equity   $   1,222,570   $   1,199,700   $   1,138,329     $   1,222,570   $   1,138,329      
                     
    Average Balances                
    GAAP shareholders' equity  $   1,896,194   $   1,865,318   $   1,821,274     $   1,862,649   $   1,674,491      
                     
    Deduct:                
    Goodwill      655,018       655,018       655,519         655,018       628,859      
    Intangibles      30,502       33,189       42,522         33,242       40,679      
          685,520       688,207       698,041         688,260       669,538      
                     
    Average tangible shareholders' equity   $   1,210,674   $   1,177,111   $   1,123,233     $   1,174,389   $   1,004,953      
                     
    Actual End of Period Balances                
    GAAP assets  $   15,065,800   $   14,957,281   $   14,703,071     $   15,065,800   $   14,703,071      
                     
    Add:                
    Trust overdrafts     45       31       47         45       47      
                     
    Deduct:                
    Goodwill      655,018       655,018       655,210         655,018       655,210      
    Intangibles      29,235       31,876       40,918         29,235       40,918      
          684,253       686,894       696,128         684,253       696,128      
                     
    Tangible assets   $   14,381,592   $   14,270,418   $   14,006,990     $   14,381,592   $   14,006,990      
                     
    Risk-weighted assets $   10,495,407   $   10,367,804   $   9,703,233     $   10,495,407   $   9,703,233      
                     
    GAAP net income $   39,372   $   38,854   $   34,709     $   114,218   $   100,808      
                     
    Add:                
    Intangible amortization (net of tax)     1,717       1,807       2,101         5,487       6,009      
                     
    Tangible net income $   41,089   $   40,661   $   36,810     $   119,705   $   106,817      
                     
    Tangible Ratios                  
    Return on tangible common equity   13.44 %   13.56 %   12.93 %     13.06 %   12.51 %    
    Return on average tangible common equity   13.58 %   13.82 %   13.11 %     13.59 %   14.17 %    
    Return on tangible assets    1.14 %   1.14 %   1.05 %     1.11 %   1.02 %    
    Tangible common equity to tangible assets    8.50 %   8.41 %   8.13 %     8.50 %   8.13 %    
    Tangible common equity to risk-weighted assets    11.65 %   11.57 %   11.73 %     11.65 %   11.73 %    
    Tangible common book value (1)     9.02       8.85       8.43         9.02       8.43      
                     
    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 $   1,254,790   $   1,222,250   $   1,156,274     $   1,254,790   $   1,156,274      
                     
    Deduct:                
    Trust Preferred Securities     45,000       45,000       45,000         45,000       45,000      
    Additional Tier 1 capital deductions     (13,498 )     (14,977 )     (30,466 )       (13,498 )     (30,466 )    
          31,502       30,023       14,534         31,502       14,534      
                     
    Tier 1 common equity   $   1,223,288   $   1,192,227   $   1,141,740     $   1,223,288   $   1,141,740      
                     
    Risk-weighted assets     10,495,407       10,367,804       9,703,233         10,495,407       9,703,233      
                     
    Tier 1 common equity to risk-weighted assets     11.66 %   11.50 %   11.77 %     11.66 %   11.77 %    
                     
                     

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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