Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-15817 | |
Entity Registrant Name | Old National Bancorp | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1539838 | |
Entity Address, Address Line One | One Main Street | |
Entity Address, City or Town | Evansville, | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47708 | |
City Area Code | (800) | |
Local Phone Number | 731-2265 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 292,599,000 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000707179 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | ONB | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A | |
Trading Symbol | ONBPP | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C | |
Trading Symbol | ONBPO | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 386,879 | $ 453,432 |
Money market and other interest-earning investments | 727,056 | 274,980 |
Total cash and cash equivalents | 1,113,935 | 728,412 |
Equity securities, at fair value | 72,158 | 52,507 |
Investment securities - available-for-sale, at fair value (amortized cost $7,592,765 and $7,772,603, respectively) | 6,687,066 | 6,773,712 |
Investment securities - held-to-maturity, at amortized cost (fair value $2,663,374 and $2,643,682, respectively) | 3,071,190 | 3,089,147 |
Federal Home Loan Bank/Federal Reserve Bank stock, at cost | 413,326 | 314,168 |
Loans held for sale, at fair value | 10,584 | 11,926 |
Loans: | ||
Total loans | 31,822,374 | 31,123,641 |
Allowance for credit losses on loans | (298,711) | (303,671) |
Net loans | 31,523,663 | 30,819,970 |
Premises and equipment, net | 566,758 | 557,307 |
Operating lease right-of-use assets | 183,687 | 189,714 |
Accrued interest receivable | 188,988 | 190,521 |
Goodwill | 1,998,716 | 1,998,716 |
Other intangible assets | 120,219 | 126,405 |
Company-owned life insurance | 770,471 | 768,552 |
Other assets | 1,121,883 | 1,142,315 |
Total assets | 47,842,644 | 46,763,372 |
Deposits: | ||
Noninterest-bearing demand | 10,995,083 | 11,930,798 |
Interest-bearing: | ||
Checking and NOW | 7,903,520 | 8,340,955 |
Savings | 6,030,255 | 6,326,158 |
Money market | 5,867,239 | 5,389,139 |
Time deposits | 4,121,695 | 3,013,780 |
Total deposits | 34,917,792 | 35,000,830 |
Federal funds purchased and interbank borrowings | 618,955 | 581,489 |
Securities sold under agreements to repurchase | 393,018 | 432,804 |
Federal Home Loan Bank advances | 4,981,612 | 3,829,018 |
Other borrowings | 746,869 | 743,003 |
Operating lease liabilities | 205,249 | 211,964 |
Accrued expenses and other liabilities | 701,723 | 835,669 |
Total liabilities | 42,565,218 | 41,634,777 |
Shareholders' Equity | ||
Preferred stock, 2,000 shares authorized, 231 shares issued and outstanding | 230,500 | 230,500 |
Common stock, no par value, $1.00 per share stated value, 600,000 shares authorized, 291,922 and 292,903 shares issued and outstanding, respectively | 291,922 | 292,903 |
Capital surplus | 4,144,730 | 4,174,265 |
Retained earnings | 1,318,632 | 1,217,349 |
Accumulated other comprehensive income (loss), net of tax | (708,358) | (786,422) |
Total shareholders' equity | 5,277,426 | 5,128,595 |
Total liabilities and shareholders' equity | $ 47,842,644 | $ 46,763,372 |
Preferred stock, shares outstanding (in shares) | 231 | 231 |
Preferred stock, shares issued (in shares) | 231 | 231 |
Commercial | ||
Loans: | ||
Total loans | $ 9,751,875 | $ 9,508,904 |
Allowance for credit losses on loans | (125,768) | (120,612) |
Commercial real estate | ||
Loans: | ||
Total loans | 12,908,380 | 12,457,070 |
Allowance for credit losses on loans | (135,348) | (138,244) |
Residential real estate | ||
Loans: | ||
Total loans | 6,568,666 | 6,460,441 |
Allowance for credit losses on loans | (20,207) | (21,916) |
Consumer credit, net of unearned income | ||
Loans: | ||
Total loans | $ 2,593,453 | $ 2,697,226 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Investment securities-available-for-sale, fair value | $ 7,592,765 | $ 7,772,603 |
Investment securities - held-to-maturity, fair value | $ 2,663,374 | $ 2,643,682 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares issued (in shares) | 231 | 231 |
Preferred stock, shares outstanding (in shares) | 231 | 231 |
Common stock, stated value (in dollars per share) | $ 1 | $ 1 |
Authorized and unissued common shares reserved for issuance (in shares) | 600,000 | 600,000 |
Common stock, shares issued (in shares) | 291,922 | 292,903 |
Common stock, shares outstanding (in shares) | 291,922 | 292,903 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Loans including fees: | ||
Taxable | $ 410,375 | $ 184,015 |
Nontaxable | 10,212 | 3,507 |
Investment securities: | ||
Taxable | 60,801 | 37,409 |
Nontaxable | 11,163 | 10,266 |
Money market and other interest-earning investments | 3,098 | 308 |
Total interest income | 495,649 | 235,505 |
Interest Expense | ||
Deposits | 62,593 | 3,194 |
Federal funds purchased and interbank borrowings | 4,839 | 0 |
Securities sold under agreements to repurchase | 779 | 96 |
Federal Home Loan Bank advances | 37,996 | 5,963 |
Other borrowings | 7,954 | 3,467 |
Total interest expense | 114,161 | 12,720 |
Net interest income | 381,488 | 222,785 |
Provision for credit losses | 13,437 | 108,736 |
Net interest income after provision for credit losses | 368,051 | 114,049 |
Noninterest Income | ||
Wealth management fees | 18,760 | 14,630 |
Service charges on deposit accounts | 17,003 | 14,026 |
Debit card and ATM fees | 9,982 | 7,599 |
Mortgage banking revenue | 3,400 | 7,245 |
Investment product fees | 8,160 | 7,322 |
Capital markets income | 6,939 | 4,442 |
Company-owned life insurance | 3,186 | 3,524 |
Debt securities gains (losses), net | (5,216) | 342 |
Other income | 8,467 | 6,110 |
Total noninterest income | 70,681 | 65,240 |
Noninterest Expense | ||
Salaries and employee benefits | 137,364 | 124,147 |
Occupancy | 28,282 | 21,019 |
Equipment | 7,389 | 5,168 |
Marketing | 9,417 | 4,276 |
Technology | 19,202 | 18,762 |
Communication | 4,461 | 3,417 |
Professional fees | 6,732 | 19,791 |
FDIC assessment | 10,404 | 2,575 |
Amortization of intangibles | 6,186 | 4,811 |
Amortization of tax credit investments | 2,761 | 1,516 |
Property optimization | 1,317 | 0 |
Other expense | 17,196 | 10,107 |
Total noninterest expense | 250,711 | 215,589 |
Income (loss) before income taxes | 188,021 | (36,300) |
Income tax expense (benefit) | 41,421 | (8,714) |
Net income (loss) | 146,600 | (27,586) |
Preferred dividends | (4,034) | (2,017) |
Net income (loss) applicable to common shareholders | $ 142,566 | $ (29,603) |
Net income (loss) per common share - basic (in dollars per share) | $ 0.49 | $ (0.13) |
Net income (loss) per common share - diluted (in dollars per share) | $ 0.49 | $ (0.13) |
Weighted average number of common shares outstanding - basic (in shares) | 291,088 | 227,002 |
Weighted average number of common shares outstanding - diluted (in shares) | 292,756 | 227,002 |
Dividends per common share (in dollars per share) | $ 0.14 | $ 0.14 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 146,600 | $ (27,586) |
Change in debt securities available-for-sale: | ||
Unrealized holding gains (losses) for the period | 24,724 | (429,470) |
Reclassification for securities transferred to held-to-maturity | 0 | 22,163 |
Reclassification adjustment for securities (gains) losses realized in income | 5,216 | (342) |
Income tax effect | 1,146 | 96,235 |
Unrealized gains (losses) on available-for-sale securities | 31,086 | (311,414) |
Change in securities held-to-maturity: | ||
Adjustment for securities transferred from available-for-sale | 0 | (22,163) |
Amortization of unrealized losses on securities transferred from available-for-sale | 5,829 | 310 |
Income tax effect | (131) | 5,126 |
Changes from securities held-to-maturity | 5,698 | (16,727) |
Change in hedges: | ||
Net unrealized derivative gains (losses) on hedges | 47,849 | (9,506) |
Reclassification adjustment for (gains) losses realized in net income | 7,292 | (669) |
Income tax effect | (13,720) | 2,500 |
Changes from hedges | 41,421 | (7,675) |
Change in defined benefit pension plans: | ||
Amortization of net (gains) losses recognized in income | (188) | (11) |
Income tax effect | 47 | 3 |
Changes from defined benefit pension plans | (141) | (8) |
Other comprehensive income (loss), net of tax | 78,064 | (335,824) |
Comprehensive income (loss) | $ 224,664 | $ (363,410) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Dec. 31, 2021 | $ 3,012,018 | $ 0 | $ 165,838 | $ 1,880,545 | $ 968,010 | $ (2,375) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (27,586) | (27,586) | ||||
Other comprehensive income (loss) | (335,824) | (335,824) | ||||
First Midwest Bancorp, Inc. merger: | ||||||
Issuance of common stock | 2,446,312 | 243,870 | 129,365 | 2,316,947 | ||
Issuance of preferred stock, net of issuance costs | 243,719 | 230,500 | 13,219 | |||
Cash dividends: | ||||||
Dividends - common stock | (40,782) | (40,782) | ||||
Preferred dividends | (2,017) | (2,017) | ||||
Common stock issued | 165 | 10 | 155 | |||
Common stock repurchased | (70,078) | (3,890) | (66,188) | |||
Share-based compensation expense | 6,284 | 6,284 | ||||
Stock activity under incentive compensation plans | (97) | 1,636 | (1,368) | (365) | ||
Balance at end of period at Mar. 31, 2022 | 5,232,114 | 230,500 | 292,959 | 4,149,594 | 897,260 | (338,199) |
Balance at beginning of period at Dec. 31, 2022 | 5,128,595 | 230,500 | 292,903 | 4,174,265 | 1,217,349 | (786,422) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 146,600 | 146,600 | ||||
Other comprehensive income (loss) | 78,064 | 78,064 | ||||
First Midwest Bancorp, Inc. merger: | ||||||
Issuance of common stock | 0 | 0 | ||||
Cash dividends: | ||||||
Dividends - common stock | (41,088) | (41,088) | ||||
Preferred dividends | (4,034) | (4,034) | ||||
Common stock issued | 262 | 15 | 247 | |||
Common stock repurchased | (43,710) | (2,598) | (41,112) | |||
Share-based compensation expense | 12,742 | 12,742 | ||||
Stock activity under incentive compensation plans | (5) | 1,602 | (1,412) | (195) | ||
Balance at end of period at Mar. 31, 2023 | $ 5,277,426 | $ 230,500 | $ 291,922 | $ 4,144,730 | $ 1,318,632 | $ (708,358) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per common share (in dollars per share) | $ 0.14 | $ 0.14 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 146,600 | $ (27,586) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation | 9,121 | 7,790 |
Amortization of other intangible assets | 6,186 | 4,811 |
Amortization of tax credit investments | 2,761 | 1,516 |
Net premium amortization on investment securities | 3,603 | 4,462 |
Accretion income related to acquired loans | (6,410) | (14,241) |
Share-based compensation expense | 12,742 | 6,284 |
Provision for credit losses | 13,437 | 108,736 |
Debt securities (gains) losses, net | 5,216 | (342) |
Net (gains) losses on sales of loans and other assets | 829 | (2,381) |
Increase in cash surrender value of company-owned life insurance | (3,186) | (3,524) |
Residential real estate loans originated for sale | (65,148) | (205,945) |
Proceeds from sales of residential real estate loans | 67,468 | 220,534 |
(Increase) decrease in interest receivable | 1,533 | 635 |
(Increase) decrease in other assets | (3,833) | 98,413 |
Increase (decrease) in accrued expenses and other liabilities | (137,230) | (38,102) |
Net cash flows provided by (used in) operating activities | 53,689 | 161,060 |
Cash Flows From Investing Activities | ||
Cash received from merger, net | 0 | 1,912,629 |
Purchases of investment securities available-for-sale | (44,413) | (814,796) |
Purchases of investment securities held-to-maturity | (1,941) | (30,418) |
Purchases of Federal Home Loan Bank/Federal Reserve Bank stock | (99,158) | (69,818) |
Purchases of equity securities | (20,807) | (904) |
Proceeds from maturities, prepayments, and calls of investment securities available-for-sale | 164,893 | 342,435 |
Proceeds from sales of investment securities available-for-sale | 51,522 | 10,839 |
Proceeds from maturities, prepayments, and calls of investment securities held-to-maturity | 24,744 | 2,752 |
Proceeds from sales of Federal Home Loan Bank/Federal Reserve Bank stock | 0 | 54,897 |
Proceeds from sales of equity securities | 615 | 41,313 |
Loan originations and payments, net | (708,752) | (336,091) |
Proceeds from company-owned life insurance death benefits | 2,257 | 1,582 |
Proceeds from sales of premises and equipment and other assets | 1,410 | 2,751 |
Purchases of premises and equipment and other assets | (10,456) | (9,588) |
Net cash flows provided by (used in) investing activities | (640,086) | 1,107,583 |
Net increase (decrease) in: | ||
Deposits | (83,038) | (211,209) |
Federal funds purchased and interbank borrowings | 37,466 | 1,445 |
Securities sold under agreements to repurchase | (39,786) | (18,194) |
Other borrowings | (4,002) | 26,566 |
Payments for maturities of Federal Home Loan Bank advances | (750,150) | (6) |
Proceeds from Federal Home Loan Bank advances | 1,900,000 | 200,000 |
Cash dividends paid | (45,122) | (42,799) |
Common stock repurchased | (43,710) | (70,078) |
Common stock issued | 262 | 165 |
Net cash flows provided by (used in) financing activities | 971,920 | (114,110) |
Net increase (decrease) in cash and cash equivalents | 385,523 | 1,154,533 |
Cash and cash equivalents at beginning of period | 728,412 | 822,019 |
Cash and cash equivalents at end of period | 1,113,935 | 1,976,552 |
Supplemental cash flow information: | ||
Total interest paid | 104,917 | 17,854 |
Total income taxes paid (net of refunds) | 1,182 | 1,471 |
Issuance of common stock | 0 | 2,446,312 |
Investment securities purchased but not settled | 0 | 22,183 |
Securities transferred from available-for-sale to held-to-maturity | 0 | 2,038,900 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 222 | 2,249 |
Finance lease right-of-use assets obtained in exchange for lease obligations | 9,141 | 0 |
Preferred Stock | ||
Supplemental cash flow information: | ||
Issuance of common stock | $ 0 | $ 243,870 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned subsidiaries (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of March 31, 2023 and December 31, 2022, and the results of its operations for the three months ended March 31, 2023 and 2022. Interim results do not necessarily represent annual results. Certain information and disclosures normally included in notes to consolidated annual financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q pursuant to SEC rules and regulations. These financial statements should be read in conjunction with Old National’s Annual Report on Form 10-K for the year ended December 31, 2022. All intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior period net income or shareholders’ equity and were insignificant amounts. Financial Difficulty Modifications Any loans that are modified are reviewed by Old National to identify if a financial difficulty modification has occurred, which is when Old National Bank modifies a loan related to a borrower experiencing financial difficulties. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status. The modification of the terms of such loans includes one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the maturity date, a permanent reduction of the recorded investment of the loan, or an other-than-insignificant payment delay. As a result of the adoption of ASU 2022-02 on January 1, 2023, the TDR classification is no longer applicable subsequent to December 31, 2022. See Note 2 to the consolidated financial statements for additional detail regarding the adoption of ASU 2022-02. Other than the changes for financial difficulty modifications, there have been no material changes from the significant accounting policies disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2023 FASB ASC 805 – In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities From Contracts With Customers , to address diversity in practice and inconsistency related to the accounting for revenue contracts with customers acquired in a business combination. The amendments require that the acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The ASU also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and liabilities. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Entities should apply the amendments prospectively to business combinations that occur after the effective date. The adoption of this guidance on January 1, 2023 did not have a material impact on the consolidated financial statements. FASB ASC 815 – In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method , to expand the current single-layer method of electing hedge accounting to allow multiple hedged layers of a single closed portfolio under the method and renames the last-of-layer method the portfolio layer method. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The adoption of this guidance on January 1, 2023 did not have a material impact on the consolidated financial statements. FASB ASC 326 – In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , to eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The amendments require that an entity disclose current-period gross charge-offs by year of origination for financing receivables and net investment in leases within the vintage disclosures required by ASC 326. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Old National adopted the provision in ASU 2022-02 related to the recognition and measurement of TDRs on a prospective basis on January 1, 2023, which did not have a material impact on the consolidated financial statements. FASB ASC 848 – In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rate on financial reporting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period. The amendments in this ASU are effective March 12, 2020 through December 31, 2024. Old National believes the adoption of this guidance on activities subsequent to March 31, 2023 will not have a material impact on the consolidated financial statements. Accounting Guidance Pending Adoption FASB ASC 820 – In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions , to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB ASC 842 – In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements , which requires all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. Transition can be done either retrospectively or prospectively. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB ASC 323 – In March 2023, the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method , which allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. |
Acquisition and Divestiture Act
Acquisition and Divestiture Activity | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition and Divestiture Activity | ACQUISITION AND DIVESTITURE ACTIVITY Merger First Midwest Bancorp, Inc. On February 15, 2022, Old National completed its previously announced merger of equals transaction with First Midwest pursuant to an agreement and plan of merger, dated as of May 30, 2021, to combine in an all-stock transaction. The combined organization has a presence in additional Midwestern markets, strong commercial banking capabilities, a robust retail footprint, a significant wealth platform, and an enhanced ability to attract talent. The combined organization also creates the scale and profitability to accelerate digital and technology capabilities to drive future investments in consumer and commercial banking, as well as wealth management services. As of December 31, 2022, Old National finalized its valuation of all assets acquired and liabilities assumed. Transaction costs totaling $14.6 million associated with the merger have been expensed for the three months ended March 31, 2023, compared to $41.3 million during the three months ended March 31, 2022. Additional transaction and integration costs will be expensed in future periods as incurred. Divestiture On November 18, 2022, Old National completed its previously announced transaction with UMB, pursuant to which UMB acquired Old National’s business of acting as a qualified custodian for, and administering, health savings accounts. Old National served as custodian for health savings accounts comprised of both investment accounts and deposit accounts. At closing, the health savings accounts held in deposit accounts that were transferred totaled approximately $382 million and the transaction resulted in a $90.7 million pre-tax gain. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | NET INCOME (LOSS) PER COMMON SHARE Basic and diluted net income (loss) per common share are calculated using the two-class method. Net income (loss) applicable to common shares is divided by the weighted-average number of common shares outstanding during the period. Adjustments to the weighted average number of common shares outstanding are made only when such adjustments will dilute net income per common share. Net income (loss) applicable to common shares is then divided by the weighted-average number of common shares and common share equivalents during the period. The following table presents the calculation of basic and diluted net income (loss) per common share: Three Months Ended (dollars and shares in thousands, except per share data) 2023 2022 Net income (loss) $ 146,600 $ (27,586) Preferred dividends (4,034) (2,017) Net income (loss) applicable to common shares $ 142,566 $ (29,603) Weighted average common shares outstanding: Weighted average common shares outstanding (basic) 291,088 227,002 Effect of dilutive securities: Restricted stock 1,666 — Stock appreciation rights 2 — Weighted average diluted shares outstanding 292,756 227,002 Basic Net Income (Loss) Per Common Share $ 0.49 $ (0.13) Diluted Net Income (Loss) Per Common Share $ 0.49 $ (0.13) |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolios and the corresponding amounts of gross unrealized gains, unrealized losses, and basis adjustments in AOCI and gross unrecognized gains and losses. (dollars in thousands) Amortized Unrealized Unrealized Basis Adjustments (1) Fair March 31, 2023 Available-for-Sale U.S. Treasury $ 268,894 $ 34 $ (10,755) $ (36,301) $ 221,872 U.S. government-sponsored entities and agencies 1,450,300 — (201,717) (54,892) 1,193,691 Mortgage-backed securities - Agency 4,861,624 641 (553,490) — 4,308,775 States and political subdivisions 641,317 2,138 (21,968) — 621,487 Pooled trust preferred securities 13,787 — (2,938) — 10,849 Other securities 356,843 277 (26,728) — 330,392 Total available-for-sale securities $ 7,592,765 $ 3,090 $ (817,596) $ (91,193) $ 6,687,066 Held-to-Maturity U.S. government-sponsored entities and agencies $ 820,849 $ — $ (157,226) $ — $ 663,623 Mortgage-backed securities - Agency 1,086,905 — (113,419) — 973,486 States and political subdivisions 1,163,586 744 (137,915) — 1,026,415 Allowance for securities held-to-maturity (150) — — — (150) Total held-to-maturity securities $ 3,071,190 $ 744 $ (408,560) $ — $ 2,663,374 December 31, 2022 Available-for-Sale U.S. Treasury $ 253,148 $ 5 $ (5,189) $ (47,037) $ 200,927 U.S. government-sponsored entities and agencies 1,451,736 — (169,248) (107,408) 1,175,080 Mortgage-backed securities - Agency 4,986,354 976 (617,428) — 4,369,902 States and political subdivisions 688,159 1,789 (26,096) — 663,852 Pooled trust preferred securities 13,783 — (2,972) — 10,811 Other securities 379,423 258 (26,541) — 353,140 Total available-for-sale securities $ 7,772,603 $ 3,028 $ (847,474) $ (154,445) $ 6,773,712 Held-to-Maturity U.S. government-sponsored entities and agencies $ 819,168 $ — $ (162,810) $ — $ 656,358 Mortgage-backed securities - Agency 1,106,817 — (123,854) — 982,963 States and political subdivisions 1,163,312 221 (159,022) — 1,004,511 Allowance for securities held-to-maturity (150) — — — (150) Total held-to-maturity securities $ 3,089,147 $ 221 $ (445,686) $ — $ 2,643,682 (1) Basis adjustments represent the cumulative fair value adjustments included in the carrying amounts of fixed-rate investment securities assets in fair value hedging arrangements . Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows: Three Months Ended (dollars in thousands) 2023 2022 Proceeds $ 57,955 $ 50,113 Realized gains 909 463 Realized losses (6,125) (121) Substantially all of the mortgage-backed securities in the investment portfolio are residential mortgage-backed securities. The table below shows the amortized cost and fair value of the investment securities portfolio by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Weighted average yield is based on amortized cost. March 31, 2023 (dollars in thousands) Amortized Fair Weighted Maturity Available-for-Sale Within one year $ 141,160 $ 138,855 3.10 % One to five years 1,751,081 1,635,833 2.79 Five to ten years 4,031,392 3,556,971 2.34 Beyond ten years 1,669,132 1,355,407 2.41 Total $ 7,592,765 $ 6,687,066 2.47 % Held-to-Maturity One to five years 162,300 141,113 2.74 % Five to ten years 928,090 838,844 2.67 Beyond ten years 1,980,800 1,683,417 2.73 Total $ 3,071,190 $ 2,663,374 2.71 % The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position: Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Losses March 31, 2023 Available-for-Sale U.S. Treasury $ 23,229 $ (106) $ 190,653 $ (10,649) $ 213,882 $ (10,755) U.S. government-sponsored entities 96,117 (2,554) 1,097,574 (199,163) 1,193,691 (201,717) Mortgage-backed securities - Agency 758,680 (26,422) 3,513,804 (527,068) 4,272,484 (553,490) States and political subdivisions 112,958 (1,576) 233,172 (20,392) 346,130 (21,968) Pooled trust preferred securities — — 10,849 (2,938) 10,849 (2,938) Other securities 42,014 (1,404) 273,603 (25,324) 315,617 (26,728) Total available-for-sale $ 1,032,998 $ (32,062) $ 5,319,655 $ (785,534) $ 6,352,653 $ (817,596) December 31, 2022 Available-for-Sale U.S. Treasury $ 130,967 $ (3,264) $ 66,992 $ (1,925) $ 197,959 $ (5,189) U.S. government-sponsored entities 454,854 (75,795) 720,226 (93,453) 1,175,080 (169,248) Mortgage-backed securities - Agency 3,207,319 (358,507) 1,116,205 (258,921) 4,323,524 (617,428) States and political subdivisions 414,813 (25,555) 2,703 (541) 417,516 (26,096) Pooled trust preferred securities — — 10,811 (2,972) 10,811 (2,972) Other securities 257,775 (17,045) 75,309 (9,496) 333,084 (26,541) Total available-for-sale $ 4,465,728 $ (480,166) $ 1,992,246 $ (367,308) $ 6,457,974 $ (847,474) The following table summarizes the held-to-maturity investment securities with unrecognized losses aggregated by major security type and length of time in a continuous loss position: Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrecognized Fair Unrecognized Fair Unrecognized March 31, 2023 Held-to-Maturity U.S. government-sponsored entities $ 82,080 $ (7,003) $ 581,543 $ (150,223) $ 663,623 $ (157,226) Mortgage-backed securities - Agency 254,788 (18,775) 718,698 (94,644) 973,486 (113,419) States and political subdivisions 40,220 (2,238) 931,463 (135,677) 971,683 (137,915) Total held-to-maturity $ 377,088 $ (28,016) $ 2,231,704 $ (380,544) $ 2,608,792 $ (408,560) December 31, 2022 Held-to-Maturity U.S. government-sponsored entities 354,293 (110,523) 302,066 (52,287) 656,359 (162,810) Mortgage-backed securities - Agency 367,849 (42,438) 615,114 (81,416) 982,963 (123,854) States and political subdivisions 838,689 (127,355) 135,573 (31,667) 974,262 (159,022) Total available-for-sale $ 1,560,831 $ (280,316) $ 1,052,753 $ (165,370) $ 2,613,584 $ (445,686) The unrecognized losses on held-to-maturity investment securities presented in the table above do not include unrecognized losses on securities that were transferred from available-for-sale to held-to-maturity totaling $143.0 million at March 31, 2023 that are included as a separate component of shareholders’ equity and are being amortized over the remaining term of the securities. No allowance for credit losses on available-for-sale debt securities was needed at March 31, 2023 or December 31, 2022. An allowance on held-to-maturity debt securities is maintained for certain municipal bonds to account for expected lifetime credit losses. Substantially all of the U.S. government-sponsored entities and agencies and agency mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. The allowance for credit losses on held-to-maturity debt securities was $0.2 million at March 31, 2023 and December 31, 2022. Accrued interest receivable on the securities portfolio is excluded from the estimate of credit losses and totaled $39.1 million at March 31, 2023 and $50.9 million at December 31, 2022. At March 31, 2023, Old National’s securities portfolio consisted of 3,093 securities, 2,688 of which were in an unrealized loss position. The unrealized losses attributable to our U.S. Treasury, U.S. government-sponsored entities and agencies, agency mortgage-backed securities, states and political subdivisions, and other securities are the result of fluctuations in interest rates and temporary market movements. Old National’s pooled trust preferred securities are evaluated using collateral-specific assumptions to estimate the expected future interest and principal cash flows. At March 31, 2023, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery. Old National’s two pooled trust preferred securities with fair values totaling $10.8 million and unrealized losses totaling $2.9 million have experienced credit defaults. However, we believe that the value of the instruments lies in the full and timely interest payments that will be received through maturity, the steady amortization that will be experienced until maturity, and the full return of principal by the final maturity of the collateralized debt obligations. Old National did not recognize any losses on these securities for the three months ended March 31, 2023 or 2022. Equity Securities Old National’s equity securities with readily determinable fair values totaled $72.2 million at March 31, 2023 and $52.5 million at December 31, 2022. There were losses on equity securities of $0.8 million during the three months ended March 31, 2023, compared to losses of $1.9 million during the three months ended March 31, 2022. Alternative Investments Old National has alternative investments without readily determinable fair values that are included in other assets totaling $395.9 million at March 31, 2023, consisting of $243.4 million of illiquid investments in partnerships, limited liability companies, and other ownership interests that support affordable housing and $152.5 million of economic development and community revitalization initiatives in low-to-moderate income neighborhoods. These alternative investments totaled $396.8 million at December 31, 2022. There have been no impairments or adjustments on equity securities without readily determinable fair values, except for amortization of tax credit investments in the three months ended March 31, 2023 and 2022. See Note 9 to the consolidated financial statements for detail regarding these investments. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Old National’s loans consist primarily of loans made to consumers and commercial clients in many diverse industries, including real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture, among others. Most of Old National’s lending activity occurs within our principal geographic markets in the Midwest region. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size. The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses on loans. The allowance for credit losses was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The four loan portfolios used to monitor and analyze interest income and yields – commercial, commercial real estate, residential real estate, and consumer – are reclassified into seven segments of loans – commercial, commercial real estate, BBCC, residential real estate, indirect, direct, and home equity for purposes of determining the allowance for credit losses on loans. The commercial and commercial real estate loan categories shown on the balance sheet include the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet is comprised of the same loans in the indirect, direct, and home equity portfolio segments. The portfolio segment reclassifications follow: Balance Sheet Portfolio After (dollars in thousands) March 31, 2023 Loans: Commercial $ 9,751,875 $ (213,187) $ 9,538,688 Commercial real estate 12,908,380 (160,041) 12,748,339 BBCC N/A 373,228 373,228 Residential real estate 6,568,666 — 6,568,666 Consumer 2,593,453 (2,593,453) N/A Indirect N/A 1,003,287 1,003,287 Direct N/A 580,726 580,726 Home equity N/A 1,009,440 1,009,440 Total $ 31,822,374 $ — $ 31,822,374 December 31, 2022 Loans: Commercial $ 9,508,904 $ (210,280) $ 9,298,624 Commercial real estate 12,457,070 (158,322) 12,298,748 BBCC N/A 368,602 368,602 Residential real estate 6,460,441 — 6,460,441 Consumer 2,697,226 (2,697,226) N/A Indirect N/A 1,034,257 1,034,257 Direct N/A 629,186 629,186 Home equity N/A 1,033,783 1,033,783 Total $ 31,123,641 $ — $ 31,123,641 The composition of loans by portfolio segment follows: (dollars in thousands) March 31, December 31, Commercial (1) $ 9,538,688 $ 9,298,624 Commercial real estate 12,748,339 12,298,748 BBCC 373,228 368,602 Residential real estate 6,568,666 6,460,441 Indirect 1,003,287 1,034,257 Direct 580,726 629,186 Home equity 1,009,440 1,033,783 Total loans 31,822,374 31,123,641 Allowance for credit losses on loans (298,711) (303,671) Net loans $ 31,523,663 $ 30,819,970 (1) Includes direct finance leases of $178.7 million at March 31, 2023 and $188.1 million at December 31, 2022. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are classified primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its clients. Commercial Real Estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing Old National’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography, and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Included with commercial real estate are construction loans, which are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, financial analysis of the developers and property owners, and feasibility studies, if available. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders (including Old National), sales of developed property, or an interim loan commitment from Old National until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing. At 234%, Old National Bank’s commercial real estate loans as a percentage of its risk-based capital remained below the regulatory guideline limit of 300% at March 31, 2023. BBCC BBCC loans are typically granted to small businesses with gross revenues of less than $5 million and aggregate debt of less than $1 million. Old National has established minimum debt service coverage ratios, minimum FICO scores for owners and guarantors, and the ability to show relatively stable earnings as criteria to help mitigate risk. Repayment of these loans depends on the personal income of the borrowers and the cash flows of the business. These factors can be affected by factors such as changes in economic conditions and unemployment levels. Residential With respect to residential loans that are secured by 1 - 4 family residences and are generally owner occupied, Old National typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Portfolio risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Indirect Indirect loans are secured by automobile collateral, generally new and used cars and trucks from auto dealers that operate within our footprint. Old National typically mitigates the risk of indirect loans by establishing minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers, conservative credit policies, and ongoing reviews of dealer relationships. Direct Direct loans are typically secured by collateral such as auto or real estate or are unsecured. Old National has established conservative underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers along with conservative credit policies. Home Equity Home equity loans are generally secured by 1 - 4 family residences that are owner occupied. Old National has established conservative underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers, along with conservative credit policies as well as monitoring of updated borrower credit scores. Allowance for Credit Losses Loans Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses on loans. The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment portfolio. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and in our process for estimating expected credit losses. Expected credit loss inherent in non-cancelable off-balance-sheet credit exposures is accounted for as a separate liability included in other liabilities on the balance sheet. The allowance for credit losses on loans held for investment is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Old National has made a policy election to report accrued interest receivable as a separate line item on the balance sheet. Accrued interest receivable on loans is excluded from the estimate of credit losses and totaled $144.1 million at March 31, 2023 and $137.7 million at December 31, 2022. The allowance for credit loss estimation process involves procedures to appropriately consider the unique characteristics of our loan portfolio segments. These segments are further disaggregated into loan classes based on the level at which credit risk is monitored. When computing the level of expected credit losses, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods. The allowance level is influenced by loan volumes, loan AQR migration or delinquency status, changes in historical loss experience, and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses has two basic components: first, an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and second, a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics. The base forecast scenario considers unemployment, gross domestic product, and the BBB ratio (BBB spread to the 10-year U.S. Treasury rate). In addition to the quantitative inputs, several qualitative factors are considered. These factors include the risk that unemployment, gross domestic product, housing product index, and the BBB ratio prove to be more severe and/or prolonged than our baseline forecast due to a variety of factors including monetary actions to control inflation, recent instability in the banking sector, conflict in Ukraine, and global supply chain issues. Old National’s activity in the allowance for credit losses on loans by portfolio segment was as follows: (dollars in thousands) Balance at Allowance Charge-offs Recoveries Provision Balance at Three Months Ended Commercial $ 120,612 $ — $ (12,423) $ 283 $ 17,296 $ 125,768 Commercial real estate 138,244 — (1,189) 263 (1,970) 135,348 BBCC 2,431 — (28) 73 (160) 2,316 Residential real estate 21,916 — (23) 72 (1,758) 20,207 Indirect 1,532 — (1,197) 412 687 1,434 Direct 12,116 — (3,238) 581 (2,693) 6,766 Home equity 6,820 — (82) 67 67 6,872 Total $ 303,671 $ — $ (18,180) $ 1,751 $ 11,469 $ 298,711 Three Months Ended Commercial $ 27,232 $ 35,040 $ (1,880) $ 325 $ 38,754 $ 99,471 Commercial real estate 64,004 42,601 (507) 182 34,210 140,490 BBCC 2,458 — (28) 57 (418) 2,069 Residential real estate 9,347 136 (185) 440 7,514 17,252 Indirect 1,743 — (483) 222 166 1,648 Direct 528 31 (1,530) 582 14,839 14,450 Home equity 2,029 723 (51) 82 2,344 5,127 Total $ 107,341 $ 78,531 $ (4,664) $ 1,890 $ 97,409 $ 280,507 Unfunded Loan Commitments Old National maintains an allowance for credit losses on unfunded loan commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses on loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet within accrued expenses and other liabilities, while the corresponding provision for unfunded loan commitments is included in the provision for credit losses. Old National’s activity in the allowance for credit losses on unfunded loan commitments was as follows: Three Months Ended (dollars in thousands) 2023 2022 Allowance for credit losses on unfunded loan commitments: Balance at beginning of period $ 32,188 $ 10,879 Provision for credit losses on unfunded commitments — 11,013 Provision for unfunded loan commitments 1,968 154 Balance at end of period $ 34,156 $ 22,046 Credit Quality Old National’s management monitors the credit quality of its loans on an ongoing basis with the AQR for commercial loans reviewed annually or at renewal and the performance of its residential and consumer loans based upon the accrual status refreshed at least quarterly. Internally, management assigns an AQR to each non-homogeneous commercial, commercial real estate, and BBCC loan in the portfolio. The primary determinants of the AQR are the reliability of the primary source of repayment and the past, present, and projected financial condition of the borrower. The AQR will also consider current industry conditions. Major factors used in determining the AQR can vary based on the nature of the loan, but commonly include factors such as debt service coverage, internal cash flow, liquidity, leverage, operating performance, debt burden, FICO scores, occupancy, interest rate sensitivity, and expense burden. Old National uses the following definitions for risk ratings: Criticized . Special mention loans that have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Classified – Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Classified – Nonaccrual . Loans classified as nonaccrual have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection in full, on the basis of currently existing facts, conditions, and values, in doubt. Classified – Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as nonaccrual, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Pass rated loans are those loans that are other than criticized, classified – substandard, classified – nonaccrual, or classified – doubtful. The following table summarizes the amortized cost of term loans by risk category and gross charge-offs of commercial, commercial real estate, and BBCC loans by loan portfolio segment, class of loan, and origination year: Origination Year Revolving to Term (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Total March 31, 2023 Commercial: Risk Rating: Pass $ 673,613 $ 2,299,378 $ 1,517,883 $ 712,011 $ 629,196 $ 694,970 $ 2,041,109 $ 433,838 $ 9,001,998 Criticized 24,476 38,369 26,289 52,907 31,378 6,538 56,784 10,792 247,533 Classified: Substandard 5,879 16,596 75,646 15,505 21,896 3,401 40,883 47,187 226,993 Nonaccrual — — 1,462 2,049 1,468 — 6,436 5,172 16,587 Doubtful — 20,828 11,687 3,633 73 9,356 — — 45,577 Total $ 703,968 $ 2,375,171 $ 1,632,967 $ 786,105 $ 684,011 $ 714,265 $ 2,145,212 $ 496,989 $ 9,538,688 Gross charge-offs $ — $ — $ 5,230 $ — $ 6,789 $ 239 $ 165 $ — $ 12,423 Commercial real estate: Risk Rating: Pass $ 600,890 $ 3,129,239 $ 2,833,471 $ 1,942,417 $ 1,171,555 $ 1,560,183 $ 74,982 $ 643,987 $ 11,956,724 Criticized 217 56,997 40,407 22,202 70,931 105,130 — 42,466 338,350 Classified: Substandard 8,653 89,716 22,101 20,207 98,147 82,928 — 18,138 339,890 Nonaccrual — 648 9,785 4,879 — 21,708 — 3,151 40,171 Doubtful — 2,627 35,723 9,919 4,507 20,428 — — 73,204 Total $ 609,760 $ 3,279,227 $ 2,941,487 $ 1,999,624 $ 1,345,140 $ 1,790,377 $ 74,982 $ 707,742 $ 12,748,339 Gross charge-offs $ — $ 54 $ 735 $ 400 $ — $ — $ — $ — $ 1,189 BBCC: Risk Rating: Pass $ 25,194 $ 86,881 $ 59,220 $ 48,866 $ 35,291 $ 27,217 $ 59,846 $ 17,644 $ 360,159 Criticized 50 1,843 479 265 1,023 57 2,047 1,660 7,424 Classified: Substandard 10 986 641 33 415 — 603 658 3,346 Nonaccrual — 39 36 130 — 626 — 836 1,667 Doubtful — 39 73 276 108 136 — — 632 Total $ 25,254 $ 89,788 $ 60,449 $ 49,570 $ 36,837 $ 28,036 $ 62,496 $ 20,798 $ 373,228 Gross charge-offs $ — $ — $ 28 $ — $ — $ — $ — $ — $ 28 Origination Year Revolving to Term (dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Commercial: Risk Rating: Pass $ 2,388,618 $ 1,754,364 $ 796,340 $ 738,208 $ 362,986 $ 388,617 $ 1,988,763 $ 329,119 $ 8,747,015 Criticized 40,856 30,661 63,557 33,490 9,195 5,312 61,036 4,327 248,434 Classified: Substandard 37,223 47,522 16,540 22,925 4,844 21,204 67,402 25,143 242,803 Nonaccrual 3,627 1,453 566 — — — 1,634 6,623 13,903 Doubtful 2,821 17,604 3,720 8,005 5,968 8,351 — — 46,469 Total $ 2,473,145 $ 1,851,604 $ 880,723 $ 802,628 $ 382,993 $ 423,484 $ 2,118,835 $ 365,212 $ 9,298,624 Commercial real estate: Risk Rating: Pass $ 3,066,960 $ 2,828,758 $ 1,989,000 $ 1,219,025 $ 675,572 $ 1,018,719 $ 57,818 $ 689,553 $ 11,545,405 Criticized 75,306 34,422 22,569 82,637 86,504 56,864 — 23,282 381,584 Classified: Substandard 46,231 16,928 24,319 78,468 57,824 21,591 — 4,108 249,469 Nonaccrual 3,151 9,541 5,014 — 2,312 22,155 — 3,257 45,430 Doubtful 1,934 38,386 10,011 4,605 1,523 20,401 — — 76,860 Total $ 3,193,582 $ 2,928,035 $ 2,050,913 $ 1,384,735 $ 823,735 $ 1,139,730 $ 57,818 $ 720,200 $ 12,298,748 BBCC: Risk Rating: Pass $ 90,341 $ 64,161 $ 52,304 $ 36,868 $ 23,618 $ 11,333 $ 60,016 $ 18,881 $ 357,522 Criticized 1,504 525 368 692 353 — 1,006 1,603 6,051 Classified: Substandard 811 143 — 421 — — 543 682 2,600 Nonaccrual 42 37 118 — 429 284 — 639 1,549 Doubtful 40 107 439 157 64 73 — — 880 Total $ 92,738 $ 64,973 $ 53,229 $ 38,138 $ 24,464 $ 11,690 $ 61,565 $ 21,805 $ 368,602 For residential real estate and consumer loan classes, Old National evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost of term residential real estate and consumer loans based on payment activity and origination year: Origination Year Revolving to Term (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Total March 31, 2023 Residential real estate: Risk Rating: Performing $ 92,032 $ 1,419,736 $ 1,975,809 $ 1,749,348 $ 472,547 $ 823,622 $ — $ 84 $ 6,533,178 Nonperforming — 1,272 2,373 2,421 2,796 26,620 — 6 35,488 Total $ 92,032 $ 1,421,008 $ 1,978,182 $ 1,751,769 $ 475,343 $ 850,242 $ — $ 90 $ 6,568,666 Gross charge-offs $ — $ — $ — $ — $ — $ 23 $ — $ — $ 23 Indirect: Risk Rating: Performing $ 74,980 $ 465,805 $ 225,377 $ 126,788 $ 69,147 $ 37,704 $ — $ 58 $ 999,859 Nonperforming — 505 1,286 627 467 543 — — 3,428 Total $ 74,980 $ 466,310 $ 226,663 $ 127,415 $ 69,614 $ 38,247 $ — $ 58 $ 1,003,287 Gross charge-offs $ — $ 514 $ 430 $ 93 $ 111 $ 49 $ — $ — $ 1,197 Direct: Risk Rating: Performing $ 27,097 $ 121,525 $ 141,746 $ 68,407 $ 48,981 $ 92,285 $ 74,520 $ 2,118 $ 576,679 Nonperforming — 401 554 580 636 1,863 7 6 4,047 Total $ 27,097 $ 121,926 $ 142,300 $ 68,987 $ 49,617 $ 94,148 $ 74,527 $ 2,124 $ 580,726 Gross charge-offs $ — $ 471 $ 794 $ 286 $ 327 $ 195 $ 1,165 $ — $ 3,238 Home equity: Risk Rating: Performing $ — $ 1,273 $ 876 $ 1,382 $ 1,068 $ 7,938 $ 962,911 $ 20,456 $ 995,904 Nonperforming — 162 133 161 930 5,470 1,924 4,756 13,536 Total $ — $ 1,435 $ 1,009 $ 1,543 $ 1,998 $ 13,408 $ 964,835 $ 25,212 $ 1,009,440 Gross charge-offs $ — $ — $ — $ — $ — $ 82 $ — $ — $ 82 Origination Year Revolving to Term 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Residential real estate: Risk Rating: Performing $ 1,327,168 $ 1,945,792 $ 1,825,762 $ 478,529 $ 136,260 $ 712,175 $ 7 $ 88 $ 6,425,781 Nonperforming 59 529 861 873 1,826 30,512 — — 34,660 Total $ 1,327,227 $ 1,946,321 $ 1,826,623 $ 479,402 $ 138,086 $ 742,687 $ 7 $ 88 $ 6,460,441 Indirect: Risk Rating: Performing $ 504,410 $ 249,407 $ 144,265 $ 82,304 $ 31,484 $ 19,095 $ — $ 62 $ 1,031,027 Nonperforming 348 1,074 645 531 304 328 — — 3,230 Total $ 504,758 $ 250,481 $ 144,910 $ 82,835 $ 31,788 $ 19,423 $ — $ 62 $ 1,034,257 Direct: Risk Rating: Performing $ 132,934 $ 164,126 $ 77,406 $ 57,919 $ 45,299 $ 59,212 $ 87,622 $ 671 $ 625,189 Nonperforming 115 851 614 205 327 1,526 5 354 3,997 Total $ 133,049 $ 164,977 $ 78,020 $ 58,124 $ 45,626 $ 60,738 $ 87,627 $ 1,025 $ 629,186 Home equity: Risk Rating: Performing $ 919 $ 896 $ 1,849 $ 1,497 $ 983 $ 11,646 $ 990,001 $ 14,792 $ 1,022,583 Nonperforming 166 160 166 446 794 4,308 1,698 3,462 11,200 Total $ 1,085 $ 1,056 $ 2,015 $ 1,943 $ 1,777 $ 15,954 $ 991,699 $ 18,254 $ 1,033,783 Nonaccrual and Past Due Loans Old National does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured. The following table presents the aging of the amortized cost basis in past due loans by class of loans: (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Current Total March 31, 2023 Commercial $ 8,463 $ 3,397 $ 9,333 $ 21,193 $ 9,517,495 $ 9,538,688 Commercial real estate 14,648 256 26,659 41,563 12,706,776 12,748,339 BBCC 1,618 552 430 2,600 370,628 373,228 Residential 19,495 310 9,725 29,530 6,539,136 6,568,666 Indirect 4,229 1,141 511 5,881 997,406 1,003,287 Direct 3,759 955 1,511 6,225 574,501 580,726 Home equity 6,279 1,923 4,802 13,004 996,436 1,009,440 Total $ 58,491 $ 8,534 $ 52,971 $ 119,996 $ 31,702,378 $ 31,822,374 December 31, 2022 Commercial $ 14,147 $ 4,801 $ 11,080 $ 30,028 $ 9,268,596 $ 9,298,624 Commercial real estate 47,240 1,312 32,892 81,444 12,217,304 12,298,748 BBCC 730 365 603 1,698 366,904 368,602 Residential 24,181 5,033 11,753 40,967 6,419,474 6,460,441 Indirect 6,302 2,118 958 9,378 1,024,879 1,034,257 Direct 5,404 2,118 1,928 9,450 619,736 629,186 Home equity 6,585 1,966 4,707 13,258 1,020,525 1,033,783 Total $ 104,589 $ 17,713 $ 63,921 $ 186,223 $ 30,937,418 $ 31,123,641 The following table presents the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan: March 31, 2023 December 31, 2022 (dollars in thousands) Nonaccrual Nonaccrual Past Due Nonaccrual Nonaccrual Past Due Commercial $ 62,164 $ 14,695 $ — $ 60,372 $ 7,873 $ 152 Commercial real estate 113,375 36,495 — 122,290 33,445 — BBCC 2,299 — — 2,429 — — Residential 35,488 — 1,070 34,660 — 1,808 Indirect 3,428 — — 3,230 — 28 Direct 4,047 — 119 3,997 — 133 Home equity 13,536 — 42 11,200 — 529 Total $ 234,337 $ 51,190 $ 1,231 $ 238,178 $ 41,318 $ 2,650 Interest income recognized on nonaccrual loans was insignificant during the three months ended March 31, 2023 and 2022. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant quarter-over-quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of collateral dependent loans by class of loan: Type of Collateral (dollars in thousands) Real Blanket Investment Auto Other March 31, 2023 Commercial $ 13,899 $ 41,674 $ 2,219 $ 1,103 $ 124 Commercial real estate 100,490 — 1,661 — 6,334 BBCC 1,823 464 — 12 — Residential 35,488 — — — — Indirect — — — 3,428 — Direct 2,961 2 — 253 34 Home equity 13,536 — — — Total loans $ 168,197 $ 42,140 $ 3,880 $ 4,796 $ 6,492 December 31, 2022 Commercial $ 8,962 $ 42,754 $ 2,690 $ 1,611 $ 980 Commercial real estate 108,871 — 1,718 — 6,411 BBCC 1,939 478 — 12 — Residential 34,660 — — — — Indirect — — — 3,230 — Direct 2,991 13 — 232 23 Home equity 11,200 — — — — Total loans $ 168,623 $ 43,245 $ 4,408 $ 5,085 $ 7,414 Loan Participations Old National has loan participations, which qualify as participating interests, with other financial institutions. At March 31, 2023, these loans totaled $2.6 billion, of which $1.2 billion had been sold to other financial institutions and $1.4 billion was retained by Old National. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involve no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree. Financial Difficulty Modifications Occasionally, Old National modifies loans to borrowers experiencing financial difficulty in the form of principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction (or a combination thereof). When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses on loans. The following table presents the amortized cost basis of loans with modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2023 by class of loans and type of modification: (dollars in thousands) Term Total Commercial $ 17,342 0.2 % Commercial real estate 9,926 0.1 % Total $ 27,268 0.1 % Old National closely monitors the performance of loan modifications to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that have been modified during the three months ended March 31, 2023: (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Current Total March 31, 2023 Commercial $ — $ 2,637 $ — $ 2,637 $ 14,705 $ 17,342 Commercial real estate — — — — 9,926 9,926 Total $ — $ 2,637 $ — $ 2,637 $ 24,631 $ 27,268 The following table summarizes the nature of the loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2023 by class of loans: (dollars in thousands) Weighted- Commercial 6.8 Commercial real estate 4.1 Total 5.6 There were no payment defaults on these loans subsequent to their modifications during the three months ended March 31, 2023. At March 31, 2023, Old National had not committed to lend any material additional funds to the borrowers whose loans were modified due to financial difficulties. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | LEASES Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 5 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements. The components of lease expense were as follows: Affected Line Three Months Ended (dollars in thousands) 2023 2022 Operating lease cost Occupancy/Equipment expense $ 8,638 $ 5,108 Finance lease cost: Amortization of right-of-use assets Occupancy expense 691 675 Interest on lease liabilities Interest expense 169 107 Sub-lease income Occupancy expense (60) (128) Total $ 9,438 $ 5,762 Supplemental balance sheet information related to leases was as follows: (dollars in thousands) March 31, December 31, Operating Leases Operating lease right-of-use assets $ 183,687 $ 189,714 Operating lease liabilities 205,249 211,964 Finance Leases Premises and equipment, net 21,173 10,799 Other borrowings 21,983 13,469 Weighted-Average Remaining Lease Term (in Years) Operating leases 8.9 9.1 Finance leases 10.6 7.2 Weighted-Average Discount Rate Operating leases 2.90 % 2.88 % Finance leases 3.82 % 3.30 % Supplemental cash flow information related to leases was as follows: Three Months Ended (dollars in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,932 $ 5,341 Operating cash flows from finance leases 169 107 Financing cash flows from finance leases 628 616 The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2023: (dollars in thousands) Operating Finance 2023 $ 22,933 $ 2,432 2024 29,819 3,278 2025 28,513 3,301 2026 27,600 2,075 2027 26,668 2,078 Thereafter 98,709 13,964 Total undiscounted lease payments 234,242 27,128 Amounts representing interest (28,993) (5,145) Lease liability $ 205,249 $ 21,983 |
Leases | LEASES Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 5 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements. The components of lease expense were as follows: Affected Line Three Months Ended (dollars in thousands) 2023 2022 Operating lease cost Occupancy/Equipment expense $ 8,638 $ 5,108 Finance lease cost: Amortization of right-of-use assets Occupancy expense 691 675 Interest on lease liabilities Interest expense 169 107 Sub-lease income Occupancy expense (60) (128) Total $ 9,438 $ 5,762 Supplemental balance sheet information related to leases was as follows: (dollars in thousands) March 31, December 31, Operating Leases Operating lease right-of-use assets $ 183,687 $ 189,714 Operating lease liabilities 205,249 211,964 Finance Leases Premises and equipment, net 21,173 10,799 Other borrowings 21,983 13,469 Weighted-Average Remaining Lease Term (in Years) Operating leases 8.9 9.1 Finance leases 10.6 7.2 Weighted-Average Discount Rate Operating leases 2.90 % 2.88 % Finance leases 3.82 % 3.30 % Supplemental cash flow information related to leases was as follows: Three Months Ended (dollars in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,932 $ 5,341 Operating cash flows from finance leases 169 107 Financing cash flows from finance leases 628 616 The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2023: (dollars in thousands) Operating Finance 2023 $ 22,933 $ 2,432 2024 29,819 3,278 2025 28,513 3,301 2026 27,600 2,075 2027 26,668 2,078 Thereafter 98,709 13,964 Total undiscounted lease payments 234,242 27,128 Amounts representing interest (28,993) (5,145) Lease liability $ 205,249 $ 21,983 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the changes in the carrying amount of goodwill: Three Months Ended (dollars in thousands) 2023 2022 Balance at beginning of period $ 1,998,716 $ 1,036,994 Acquisitions and adjustments — 960,163 Balance at end of period $ 1,998,716 $ 1,997,157 The increase in goodwill for the three months ended March 31, 2022 was due to the First Midwest merger. See Note 3 to the consolidated financial statements for additional detail regarding this transaction. Old National performed the required annual goodwill impairment test as of August 31, 2022 and there was no impairment. No events or circumstances since the August 31, 2022 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists. The gross carrying amounts and accumulated amortization of other intangible assets were as follows: (dollars in thousands) Gross Accumulated Net March 31, 2023 Core deposit $ 170,642 $ (85,861) $ 84,781 Customer trust relationships 56,243 (20,805) 35,438 Total other intangible assets $ 226,885 $ (106,666) $ 120,219 December 31, 2022 Core deposit $ 170,642 $ (80,951) $ 89,691 Customer trust relationships 56,243 (19,529) 36,714 Total other intangible assets $ 226,885 $ (100,480) $ 126,405 Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years. Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the three months ended March 31, 2023 or 2022. Total amortization expense associated with intangible assets was $6.2 million for the three months ended March 31, 2023, compared to $4.8 million for the three months ended March 31, 2022. Estimated amortization expense for future years is as follows: (dollars in thousands) 2023 remaining $ 17,969 2024 21,239 2025 18,358 2026 15,555 2027 12,867 Thereafter 34,231 Total $ 120,219 |
Qualified Affordable Housing Pr
Qualified Affordable Housing Projects and Other Tax Credit Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments in Affordable Housing Projects [Abstract] | |
Qualified Affordable Housing Projects and Other Tax Credit Investments | QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. As of March 31, 2023, Old National expects to recover its remaining investments through the use of the tax credits that are generated by the investments. The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments: (dollars in thousands) March 31, 2023 December 31, 2022 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded LIHTC Proportional amortization $ 82,950 $ 46,743 $ 84,428 $ 55,754 FHTC Equity 18,892 9,019 19,316 9,588 NMTC Consolidation 49,820 — 51,912 — Renewable Energy Equity 854 — 1,099 — Total $ 152,516 $ 55,762 $ 156,755 $ 65,342 (1) All commitments will be paid by Old National by December 31, 2027. The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments: (dollars in thousands) Amortization Expense (1) Tax Expense (Benefit) Recognized (2) Three Months Ended March 31, 2023 LIHTC $ 1,463 $ (1,908) FHTC 424 (512) NMTC 2,091 (2,611) Renewable Energy 246 — Total $ 4,224 $ (5,031) Three Months Ended March 31, 2022 LIHTC $ 1,253 $ (1,650) FHTC 205 (251) NMTC 1,101 (1,375) Renewable Energy 210 — Total $ 2,769 $ (3,276) (1) The amortization expense for the LIHTC investments is included in our income tax expense. The amortization expense for the FHTC, NMTC, and Renewable Energy tax credits is included in noninterest expense. (2) All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the FHTC, NMTC, and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss). |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 3 Months Ended |
Mar. 31, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Securities Sold Under Agreements to Repurchase | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase are secured borrowings. Old National pledges investment securities to secure these borrowings. The following table presents securities sold under agreements to repurchase and related weighted-average interest rates: At or for the Three Months Ended March 31, At December 31, At or for the Three Months Ended March 31, (dollars in thousands) Outstanding at period end $ 393,018 $ 432,804 $ 509,275 Average amount outstanding during the period 412,819 N/A 449,939 Maximum amount outstanding at any month-end during the period 430,537 N/A 509,275 Weighted-average interest rate: During the period 0.77 % N/A 0.09 % At period end 0.88 % 1.31 % 0.08 % The following table presents the contractual maturity of our secured borrowings and class of collateral pledged: At March 31, 2023 Remaining Contractual Maturity of the Agreements (dollars in thousands) Overnight and Continuous Up to 30-90 Days Greater Than 90 days Total Repurchase Agreements: U.S. Treasury and agency securities $ 393,018 $ — $ — $ — $ 393,018 Total $ 393,018 $ — $ — $ — $ 393,018 The fair value of securities pledged to secure repurchase agreements may decline. Old National has pledged securities valued at 125% of the gross outstanding balance of repurchase agreements at March 31, 2023 to manage this risk. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 3 Months Ended |
Mar. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | FEDERAL HOME LOAN BANK ADVANCES The following table summarizes Old National Bank’s FHLB advances: (dollars in thousands) March 31, December 31, FHLB advances (fixed rates 0.00% to 5.11% and variable rates 4.57% to 5.24%) maturing April 2023 to September 2042 $ 5,000,528 $ 3,850,677 Fair value hedge basis adjustments and unamortized (18,916) (21,659) Total $ 4,981,612 $ 3,829,018 FHLB advances had weighted-average rates of 3.45% at March 31, 2023 and 3.15% at December 31, 2022. Certain FHLB advances are collateralized with residential real estate loans at 148%. At March 31, 2023, total unamortized prepayment fees related to debt modifications completed in prior years totaled $18.7 million, compared to $20.2 million at December 31, 2022. Contractual maturities of FHLB advances at March 31, 2023 were as follows: (dollars in thousands) Due in 2023 $ 1,250,000 Due in 2024 25,243 Due in 2025 550,285 Due in 2026 100,000 Thereafter 3,075,000 Fair value hedge basis adjustments and unamortized prepayment fees (18,916) Total $ 4,981,612 |
Other Borrowings
Other Borrowings | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Borrowings | OTHER BORROWINGS The following table summarizes Old National’s other borrowings: (dollars in thousands) March 31, December 31, Old National Bancorp: Senior unsecured notes (fixed rate 4.125%) maturing August 2024 $ 175,000 $ 175,000 Unamortized debt issuance costs related to senior unsecured notes (208) (247) Subordinated debentures (fixed rate 5.875%) maturing September 2026 150,000 150,000 Junior subordinated debentures (variable rates of 6.27% to 8.41%) maturing July 2031 to September 2037 136,643 136,643 Other basis adjustments 22,073 23,363 Old National Bank: Finance lease liabilities 21,983 13,469 Subordinated debentures (variable rate 9.16%) maturing October 2025 12,000 12,000 Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%) maturing December 2046 to June 2060 143,745 143,187 Other (1) 85,633 89,588 Total other borrowings $ 746,869 $ 743,003 (1) Includes overnight borrowings to collateralize certain derivative positions totaling $84.4 million at March 31, 2023 and $88.0 million at December 31, 2022. Contractual maturities of other borrowings at March 31, 2023 were as follows: (dollars in thousands) Due in 2023 $ 86,291 Due in 2024 177,609 Due in 2025 14,696 Due in 2026 151,529 Due in 2027 1,587 Thereafter 292,059 Unamortized debt issuance costs and other basis adjustments 23,098 Total $ 746,869 Senior Notes In August 2014, Old National issued $175.0 million of senior unsecured notes with a 4.125% interest rate. These notes pay interest on February 15 and August 15 and mature on August 15, 2024. Junior Subordinated Debentures Junior subordinated debentures related to trust preferred securities are classified in “other borrowings.” Junior subordinated debentures qualify as Tier 2 capital for regulatory purposes, subject to certain limitations. Through various mergers and acquisitions, Old National assumed junior subordinated debenture obligations related to various trusts that issued trust preferred securities. Old National guarantees the payment of distributions on the trust preferred securities issued by the trusts. Proceeds from the issuance of each of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by the trusts. Old National, at any time, may redeem the junior subordinated debentures at par and, thereby cause a redemption of the trust preferred securities in whole or in part. The following table summarizes the terms of our outstanding junior subordinated debentures at March 31, 2023: (dollars in thousands) Rate at March 31, Name of Trust Issuance Date Issuance Rate Maturity Date Bridgeview Statutory Trust I July 2001 $ 15,464 3-month LIBOR plus 3.58% 8.41% July 31, 2031 Bridgeview Capital Trust II December 2002 15,464 3-month LIBOR plus 3.35% 8.18% January 7, 2033 First Midwest Capital Trust I November 2003 37,825 6.95% fixed 6.95% December 1, 2033 St. Joseph Capital Trust II March 2005 5,155 3-month LIBOR plus 1.75% 6.66% March 17, 2035 Northern States Statutory Trust I September 2005 10,310 3-month LIBOR plus 1.80% 6.67% September 15, 2035 Anchor Capital Trust III August 2005 5,000 3-month LIBOR plus 1.55% 6.71% September 30, 2035 Great Lakes Statutory Trust II December 2005 6,186 3-month LIBOR plus 1.40% 6.27% December 15, 2035 Home Federal Statutory September 2006 15,464 3-month LIBOR plus 1.65% 6.52% September 15, 2036 Monroe Bancorp Capital July 2006 3,093 3-month LIBOR plus 1.60% 6.43% October 7, 2036 Tower Capital Trust 3 December 2006 9,279 3-month LIBOR plus 1.69% 6.65% March 1, 2037 Monroe Bancorp Statutory March 2007 5,155 3-month LIBOR plus 1.60% 6.47% June 15, 2037 Great Lakes Statutory Trust III June 2007 8,248 3-month LIBOR plus 1.70% 6.57% September 15, 2037 Total $ 136,643 Subordinated Debentures Old National assumed $12.0 million of subordinated fixed-to-floating notes related to the acquisition of Anchor Bancorp, Inc. (MN). The subordinated debentures had a 5.75% fixed rate of interest through October 29, 2020. From October 30, 2020 to the October 30, 2025 maturity date, the debentures have a floating rate of interest equal to the three-month LIBOR rate plus 4.356%. Old National assumed $150.0 million of subordinated fixed rate notes related to the First Midwest merger. The subordinated debentures have a 5.875% fixed rate of interest through the September 29, 2026 maturity date. Leveraged Loans The leveraged loans are directly related to the NMTC structure. As part of the transaction structure, Old National has the right to sell its interest in the entity that received the leveraged loans at an agreed upon price to the leveraged lender at the end of the NMTC seven-year compliance period. See Note 9 to the consolidated financial statements for additional information on the Company’s NMTC investments. Finance Lease Liabilities Old National has long-term finance lease liabilities for certain banking centers and equipment totaling $22.0 million at March 31, 2023. See Note 7 to the consolidated financial statements for a maturity analysis of the Company’s finance lease liabilities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes within each classification of AOCI, net of tax: (dollars in thousands) Unrealized Unrealized Gains and Defined Total Three Months Ended March 31, 2023 Balance at beginning of period $ (642,346) $ (112,664) $ (31,549) $ 137 $ (786,422) Other comprehensive income (loss) before 27,219 1,325 35,985 — 64,529 Amounts reclassified from AOCI to income (1) 3,867 4,373 5,436 (141) 13,535 Balance at end of period $ (611,260) $ (106,966) $ 9,872 $ (4) $ (708,358) Three Months Ended March 31, 2022 Balance at beginning of period $ (2,950) $ — $ 543 $ 32 $ (2,375) Other comprehensive income (loss) before (311,153) (16,963) (7,170) — (335,286) Amounts reclassified from AOCI to income (1) (261) 236 (505) (8) (538) Balance at end of period $ (314,364) $ (16,727) $ (7,132) $ 24 $ (338,199) (1) See table below for details about reclassifications to income. The following table summarizes the significant amounts reclassified out of each component of AOCI for the three months ended March 31, 2023 and 2022: Three Months Ended (dollars in thousands) 2023 2022 Details about AOCI Components Amount Reclassified Affected Line Item in the Unrealized gains and losses on $ (5,216) $ 342 Debt securities gains (losses), net 1,349 (81) Income tax (expense) benefit $ (3,867) $ 261 Net income (loss) Unrealized gains and losses on $ (5,829) $ (310) Interest income (expense) 1,456 74 Income tax (expense) benefit $ (4,373) $ (236) Net income (loss) Gains and losses on hedges $ (7,292) $ 669 Interest income (expense) 1,856 (164) Income tax (expense) benefit $ (5,436) $ 505 Net income (loss) Amortization of defined benefit Actuarial gains (losses) $ 188 $ 11 Salaries and employee benefits (47) (3) Income tax (expense) benefit $ 141 $ 8 Net income (loss) Total reclassifications for the period $ (13,535) $ 538 Net income (loss) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income: Three Months Ended (dollars in thousands) 2023 2022 Provision at statutory rate of 21% $ 39,484 $ (7,623) Tax-exempt income: Tax-exempt interest (4,486) (2,992) Section 291/265 interest disallowance 386 28 Company-owned life insurance income (627) (718) Tax-exempt income (4,727) (3,682) State income taxes 8,142 (3,327) Interim period effective rate adjustment (1,717) 7,040 Tax credit investments - federal (2,526) (1,270) Officer compensation limitation 1,040 — Other, net 1,725 148 Income tax expense (benefit) $ 41,421 $ (8,714) Effective tax rate 22.0 % 24.0 % The provision for income taxes was recorded at March 31, 2023 and 2022 based on the current estimate of the effective annual rate. The lower effective tax rate during the three months ended March 31, 2023 compared to the same period in 2022 was primarily the result of higher tax-exempt income and tax credits and a decrease in non-deductible merger-related expenses. These benefits were partially offset by increases in non-deductible officer compensation and non-deductible FDIC premiums. Net Deferred Tax Assets Net deferred tax assets are included in other assets on the balance sheet. At March 31, 2023, net deferred tax assets totaled $391.4 million, compared to $435.8 million at December 31, 2022. The decrease in net deferred tax assets was driven by $27.4 million of payouts on benefit plans, such as bonus compensation, and a $13.2 million reduction in deferred taxes on the market valuation of certain investments. The Company’s retained earnings at March 31, 2023 included an appropriation for acquired thrifts’ tax bad debt allowances totaling $58.6 million for which no provision for federal or state income taxes has been made. If in the future, this portion of retained earnings were distributed as a result of the liquidation of the Company or its subsidiaries, federal and state income taxes would be imposed at the then applicable rates. No valuation allowance was recorded at March 31, 2023 or December 31, 2022 because, based on current expectations, Old National believes it will generate sufficient income in future years to realize deferred tax assets. Old National has federal net operating loss carryforwards totaling $77.1 million at March 31, 2023 and $81.5 million at December 31, 2022. This federal net operating loss was acquired from the acquisition of Anchor BanCorp Wisconsin Inc. in 2016 and First Midwest in 2022. If not used, the federal net operating loss carryforwards will begin expiring in 2030 and later. Old National has recorded state net operating loss carryforwards totaling $121.4 million at March 31, 2023 and $124.4 million at December 31, 2022. If not used, the state net operating loss carryforwards will expire from 2027 to 2036. The federal and recorded state net operating loss carryforwards are subject to an annual limitation under Internal Revenue Code section 382. Old National believes that all of the federal and recorded state net operating loss carryforwards will be used prior to expiration. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS As part of our overall interest rate risk management, Old National uses derivative instruments, including interest rate swaps, collars, caps, and floors. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. Old National’s exposure is limited to the termination value of the contracts rather than the notional, principal, or contract amounts. There are provisions in our agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, we minimize credit risk through credit approvals, limits, and monitoring procedures. Derivatives Designated as Hedges Subsequent changes in fair value for a hedging instrument that has been designated and qualifies as part of a hedging relationship are accounted for in the following manner: Cash flow hedges : changes in fair value are recognized as a component in other comprehensive income (loss). Fair value hedges : changes in fair value are recognized concurrently in earnings. As long as a hedging instrument is designated and the results of the effectiveness testing support that the instrument qualifies for hedge accounting treatment, 100% of the periodic changes in fair value of the hedging instrument are accounted for as outlined above. This is the case whether or not economic mismatches exist in the hedging relationship. As a result, there is no periodic measurement or recognition of ineffectiveness. Rather, the full impact of hedge gains and losses is recognized in the period in which the hedged transactions impact earnings. The change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness is presented in the same income statement line item that is used to present the earnings effect of the hedged item. Cash Flow Hedges Interest rate swaps of certain borrowings were designated as cash flow hedges totaling $150.0 million notional amount at both March 31, 2023 and December 31, 2022. Interest rate collars and floors related to variable-rate commercial loan pools were designated as cash flow hedges totaling $1.9 billion notional amount at both March 31, 2023 and December 31, 2022. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms. Old National has designated its interest rate collars as cash flow hedges. The structure of these instruments is such that Old National pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, Old National receives an incremental amount if the index falls below the floor rate. No payments are required if the collar index falls between the cap and floor rates. Old National has designated its interest rate floor transactions as cash flow hedges. The structure of these instruments is such that Old National receives an incremental amount if the index falls below the floor strike rate. No payments are required if the index remains above the floor strike rate. Fair Value Hedges Interest rate swaps of certain borrowings were designated as fair value hedges totaling $200.0 million notional amount at March 31, 2023 and $300.0 million notional amount at December 31, 2022. Interest rate swaps of certain available-for-sale investment securities were designated as fair value hedges totaling $910.0 million notional amount at both March 31, 2023 and December 31, 2022. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms. The following table summarizes Old National’s derivatives designated as hedges: March 31, 2023 December 31, 2022 Fair Value Fair Value (dollars in thousands) Notional Assets (1) Liabilities (2) Notional Assets (1) Liabilities (2) Cash flow hedges Interest rate collars and floors on loan pools $ 1,900,000 $ 17,328 $ 38,276 $ 1,900,000 $ 11,764 $ 47,859 Interest rate swaps on borrowings (3) 150,000 — — 150,000 — — Fair value hedges Interest rate swaps on investment securities (3) 909,957 — 4,833 909,957 — — Interest rate swaps on borrowings (3) 200,000 — — 300,000 — — Total $ 17,328 $ 43,109 $ 11,764 $ 47,859 (1) Derivative assets are included in other assets on the balance sheet. (2) Derivative liabilities are included in other liabilities on the balance sheet. (3) The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules. The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows: (dollars in thousands) Gain (Loss) Derivatives in Location of Gain or Gain (Loss) Hedged Items Location of Gain or Three Months Ended March 31, 2023 Interest rate contracts Interest income/(expense) $ 2,153 Fixed-rate debt Interest income/(expense) $ (2,218) Interest rate contracts Interest income/(expense) (63,115) Fixed-rate Interest income/(expense) 63,251 Total $ (60,962) $ 61,033 Three Months Ended Interest rate contracts Interest income/(expense) $ (4,833) Fixed-rate debt Interest income/(expense) $ 4,956 Interest rate contracts Interest income/(expense) 57,654 Fixed-rate Interest income/(expense) (58,029) Total $ 52,821 $ (53,073) The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows: Three Months Ended Three Months Ended (dollars in thousands) 2023 2022 2023 2022 Derivatives in Location of Gain or Gain (Loss) Gain (Loss) Interest rate contracts Interest income/(expense) $ 6,603 $ (9,506) $ (7,637) $ 669 Amounts reported in AOCI related to cash flow hedges will be reclassified to interest income or interest expense as interest payments are received or paid on Old National’s derivative instruments. During the next 12 months, we estimate that $4.4 million will be reclassified to interest income and $23.1 million will be reclassified to interest expense. Derivatives Not Designated as Hedges Commitments to fund certain mortgage loans (interest rate lock commitments) and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. These derivative contracts do not qualify for hedge accounting. At March 31, 2023, the notional amounts of the interest rate lock commitments were $38.9 million and forward commitments were $45.0 million. At December 31, 2022, the notional amounts of the interest rate lock commitments were $21.4 million and forward commitments were $30.3 million. It is our practice to enter into forward commitments for the future delivery of residential mortgage loans to third party investors when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from our commitment to fund the loans. Old National also enters into derivative instruments for the benefit of its clients. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $5.6 billion at March 31, 2023 and $5.2 billion at December 31, 2022. These derivative contracts do not qualify for hedge accounting. These instruments include interest rate swaps, caps, and collars. Commonly, Old National will economically hedge significant exposures related to these derivative contracts entered into for the benefit of clients by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. Old National enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative instruments consist of foreign currency forward contracts to accommodate the business needs of its clients. Old National does not designate these foreign currency forward contracts for hedge accounting treatment. The following table summarizes Old National’s derivatives not designated as hedges: March 31, 2023 December 31, 2022 Fair Value Fair Value (dollars in thousands) Notional Assets (1) Liabilities (2) Notional Assets (1) Liabilities (2) Interest rate lock commitments $ 38,945 $ 380 $ — $ 21,401 $ 93 $ — Forward mortgage loan contracts 45,047 — 148 30,330 32 — Customer interest rate swaps 5,575,403 19,470 257,902 5,220,363 5,676 326,924 Counterparty interest rate swaps (3) 5,575,403 128,487 19,610 5,220,363 151,111 5,711 Customer foreign currency forward contracts 14,165 382 21 8,341 253 42 Counterparty foreign currency forward contracts 14,143 22 205 8,297 72 168 Total $ 148,741 $ 277,886 $ 157,237 $ 332,845 (1) Derivative assets are included in other assets on the balance sheet. (2) Derivative liabilities are included in other liabilities on the balance sheet. (3) The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules. The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows: Three Months Ended (dollars in thousands) 2023 2022 Derivatives Not Designated as Location of Gain or (Loss) Gain (Loss) Interest rate contracts (1) Other income/(expense) $ (138) $ 501 Mortgage contracts Mortgage banking revenue 107 130 Foreign currency contracts Other income/(expense) (1) (28) Total $ (32) $ 603 (1) Includes the valuation differences between the customer and offsetting swaps. |
Commitments, Contingencies, and
Commitments, Contingencies, and Financial Guarantees | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Financial Guarantees | COMMITMENTS, CONTINGENCIES, AND FINANCIAL GUARANTEES Litigation In the normal course of business, Old National Bancorp and its subsidiaries are subject to pending and threatened litigation, claims, investigations, and legal and administrative cases and proceedings. Certain of the actual or threatened legal actions may include claims for compensatory damages or claims for indeterminate amounts of damages. Old National contests liability and/or the amount of damages as appropriate in each pending matter. In view of the inherent difficulty of predicting the outcome of such matters, particularly in cases where claimants seek indeterminate damages or where investigations and proceedings are in the early stages, Old National cannot predict with certainty the loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, or other relief, if any, might be. Subject to the foregoing, Old National believes, based on current knowledge and after consultation with counsel, that the outcome of such pending matters will not have a material adverse effect on the consolidated financial condition of Old National, although the outcome of such matters could be material to Old National’s operating results and cash flows for a particular future period, depending on, among other things, the level of Old National’s revenues or income for such period. Old National will accrue for a loss contingency if (1) it is probable that a future event will occur and confirm the loss and (2) the amount of the loss can be reasonably estimated. Credit-Related Financial Instruments Old National holds instruments, in the normal course of business with clients, that are considered financial guarantees and are recorded at fair value. Standby letters of credit guarantees are issued in connection with agreements made by clients to counterparties. Standby letters of credit are contingent upon failure of the client to perform the terms of the underlying contract. Credit risk associated with standby letters of credit is essentially the same as that associated with extending loans to clients and is subject to normal credit policies. The term of these standby letters of credit is typically one year or less. These commitments are not recorded in the consolidated financial statements. The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit: (dollars in thousands) March 31, December 31, Unfunded loan commitments $ 9,386,866 $ 8,979,334 Standby letters of credit (1) 181,476 174,070 (1) Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $0.9 million at March 31, 2023 and $0.8 million at December 31, 2022. At March 31, 2023, approximately 6% of the unfunded loan commitments had fixed rates, with the remainder having floating rates ranging from 0% to 22%. The allowance for unfunded loan commitments totaled $34.2 million at March 31, 2023 and $32.2 million at December 31, 2022. Old National is a party in risk participation transactions of interest rate swaps, which had total notional amounts of $381.8 million at March 31, 2023 and $398.9 million at December 31, 2022. Visa Class B Restricted Shares In 2008, Old National received Visa Class B restricted shares as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into the publicly traded Class A common shares. This conversion will not occur until the final settlement of certain litigation for which Visa is indemnified by the holders of Visa’s Class B shares, including Old National. Visa funded an escrow account from its initial public offering to settle these litigation claims. Increases in litigation claims requiring Visa to fund the escrow account due to insufficient funds will result in a reduction of the conversion ratio of each Visa Class B share to unrestricted Class A shares. As of March 31, 2023, the conversion ratio was 1.5991. Based on the existing transfer restriction and the uncertainty of the outcome of the Visa litigation, the 65,466 Class B shares that Old National owns at March 31, 2023 are carried at a zero cost basis and are included in other assets with our equity securities that have no readily determinable fair value. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: • Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Old National used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment securities and equity securities : The fair values for investment securities and equity securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using swap and LIBOR curves plus spreads that adjust for loss severities, volatility, credit risk, and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations. Residential loans held for sale : The fair value of loans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2). Derivative financial instruments : The fair values of derivative financial instruments are based on derivative valuation models using market data inputs as of the valuation date (Level 2). Recurring Basis Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: Fair Value Measurements at March 31, 2023 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Equity securities $ 72,158 $ 72,158 $ — $ — Investment securities available-for-sale: U.S. Treasury 221,872 221,872 — — U.S. government-sponsored entities and agencies 1,193,691 — 1,193,691 — Mortgage-backed securities - Agency 4,308,775 — 4,308,775 — States and political subdivisions 621,487 — 621,487 — Pooled trust preferred securities 10,849 — 10,849 — Other securities 330,392 — 330,392 — Residential loans held for sale 10,584 — 10,584 — Derivative assets 166,069 — 166,069 — Financial Liabilities Derivative liabilities 320,995 — 320,995 — Fair Value Measurements at December 31, 2022 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Equity securities $ 52,507 $ 52,507 $ — $ — Investment securities available-for-sale: U.S. Treasury 200,927 200,927 — — U.S. government-sponsored entities and agencies 1,175,080 — 1,175,080 — Mortgage-backed securities - Agency 4,369,902 — 4,369,902 — States and political subdivisions 663,852 — 663,852 — Pooled trust preferred securities 10,811 — 10,811 — Other securities 353,140 — 353,140 — Residential loans held for sale 11,926 — 11,926 — Derivative assets 169,001 — 169,001 — Financial Liabilities Derivative liabilities 380,704 — 380,704 — Non-Recurring Basis Assets measured at fair value at March 31, 2023 on a non-recurring basis are summarized below: Fair Value Measurements at March 31, 2023 Using (dollars in thousands) Carrying Quoted Prices in Significant Significant Collateral Dependent Loans: Commercial loans $ 16,686 $ — $ — $ 16,686 Commercial real estate loans 43,924 — — 43,924 Foreclosed Assets: Commercial 240 — — 240 Residential 511 — — 511 Commercial and commercial real estate loans that are deemed collateral dependent are valued using the discounted cash flows. The liquidation amounts are based on the fair value of the underlying collateral using the most recently available appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral. These commercial and commercial real estate loans had a principal amount of $85.4 million, with a valuation allowance of $24.8 million at March 31, 2023. Old National recorded provision expense associated with these loans totaling $11.9 million for the three months ended March 31, 2023. Old National recorded provision expense associated with commercial and commercial real estate loans that were deemed collateral dependent totaling $15.8 million for the three months ended March 31, 2022. Other real estate owned and other repossessed property is measured at fair value less costs to sell on a non-recurring basis and had a net carrying amount of $0.8 million at March 31, 2023. There were $27 thousand of write-downs on other real estate owned for the three months ended March 31, 2023 and $0.2 million for the three months ended March 31, 2022. Loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on market prices for comparable mortgage servicing contracts when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes a discount rate, weighted average prepayment speed, and other economic factors that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2). There was no valuation allowance for loan servicing rights with impairments at March 31, 2023 and no impairments or recoveries recorded during the three months ended March 31, 2023. Old National recorded recoveries associated with these loan servicing rights totaling $45 thousand during the three months ended March 31, 2022. Assets measured at fair value at December 31, 2022 on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2022 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Collateral Dependent Loans: Commercial loans $ 22,562 $ — $ — $ 22,562 Commercial real estate loans 48,026 — — 48,026 At December 31, 2022, commercial and commercial real estate loans that are deemed collateral dependent had a principal amount of $92.0 million, with a valuation allowance of $21.5 million. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy: (dollars in thousands) Fair Value Valuation Techniques Unobservable Input Range (Weighted Average) (1) March 31, 2023 Collateral Dependent Loans Commercial loans $ 16,686 Discounted Discount for type of property, 10% - 40% (33%) cash flow age of appraisal, and current status Commercial real estate loans 43,924 Discounted Discount for type of property, 0% - 30% (14%) cash flow age of appraisal, and current status Foreclosed Assets Commercial real estate (2) 240 Fair value of Discount for type of property, —% collateral age of appraisal, and current status Residential (2) 511 Fair value of Discount for type of property, 5% collateral age of appraisal, and current status December 31, 2022 Collateral Dependent Loans Commercial loans $ 22,562 Discounted Discount for type of property, 10% - 47% (28%) cash flow age of appraisal, and current status Commercial real estate loans 48,026 Discounted Discount for type of property, 1% - 26% (11%) cash flow age of appraisal, and current status (1) Unobservable inputs were weighted by the relative fair value of the instruments. (2) There were no writedowns on foreclosed commercial real estate and only one residential real estate property written down during the three months ended March 31, 2023, so no range or weighted average is reported. Fair Value Option Old National may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made. Residential Loans Held For Sale Old National has elected the fair value option for residential loans held for sale. For these loans, interest income is recorded in the consolidated statements of income based on the contractual amount of interest income earned on the financial assets (except any that are on nonaccrual status). None of these loans are 90 days or more past due, nor are any on nonaccrual status. Included in the income statement is interest income for loans held for sale totaling $0.2 million for the three months ended March 31, 2023, compared to $0.5 million for the three months ended March 31, 2022. Newly originated conforming fixed-rate and adjustable-rate first mortgage loans are intended for sale and are hedged with derivative instruments. Old National has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The fair value option was not elected for loans held for investment. The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows: (dollars in thousands) Aggregate Fair Value Difference Contractual Principal March 31, 2023 Residential loans held for sale $ 10,584 $ 165 $ 10,419 December 31, 2022 Residential loans held for sale $ 11,926 $ 221 $ 11,705 Accrued interest at period end is included in the fair value of the instruments. The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value: (dollars in thousands) Other Interest Income Interest (Expense) Total Changes Three Months Ended March 31, 2023 Residential loans held for sale $ (53) $ — $ (3) $ (56) Three Months Ended March 31, 2022 Residential loans held for sale $ (1,343) $ — $ (3) $ (1,346) Financial Instruments Not Carried at Fair Value The carrying amounts and estimated exit price fair values of financial instruments not carried at fair value were as follows: Fair Value Measurements at March 31, 2023 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Cash, due from banks, money market, $ 1,113,935 $ 1,113,935 $ — $ — Investment securities held-to-maturity: U.S. government-sponsored entities and agencies 820,849 — 663,623 — Mortgage-backed securities - Agency 1,086,905 — 973,486 — State and political subdivisions 1,163,436 — 1,026,265 — Loans, net: Commercial 9,624,779 — — 9,477,212 Commercial real estate 12,772,044 — — 12,477,217 Residential real estate 6,548,459 — — 5,760,254 Consumer credit 2,578,381 — — 2,481,269 Accrued interest receivable 188,988 1,046 43,858 144,084 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 10,995,083 $ 10,995,083 $ — $ — Checking, NOW, savings, and money market 19,801,014 19,801,014 — — Time deposits 4,121,695 — 4,066,499 — Federal funds purchased and interbank borrowings 618,955 618,955 — — Securities sold under agreements to repurchase 393,018 393,018 — — FHLB advances 4,981,612 — 4,764,172 — Other borrowings 746,869 — 717,801 — Accrued interest payable 28,792 — 28,792 — Standby letters of credit 846 — — 846 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 3,649 Fair Value Measurements at December 31, 2022 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Cash, due from banks, money market, $ 728,412 $ 728,412 $ — $ — Investment securities held-to-maturity: U.S. government-sponsored entities and agencies 819,168 — 656,358 — Mortgage-backed securities - Agency 1,106,817 — 982,963 — State and political subdivisions 1,163,162 — 1,004,361 — Loans, net: Commercial 9,386,862 — — 9,066,583 Commercial real estate 12,317,825 — — 11,867,851 Residential real estate 6,438,525 — — 5,372,491 Consumer credit 2,676,758 — — 2,557,115 Accrued interest receivable 190,521 758 52,081 137,682 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 11,930,798 $ 11,930,798 $ — $ — Checking, NOW, savings, and money market 20,056,252 20,056,252 — — Time deposits 3,013,780 — 2,976,389 — Federal funds purchased and interbank borrowings 581,489 581,489 — — Securities sold under agreements to repurchase 432,804 432,804 — — FHLB advances 3,829,018 — 3,739,780 — Other borrowings 743,003 — 703,156 — Accrued interest payable 19,547 — 19,547 — Standby letters of credit 755 — — 755 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 3,666 The methods utilized to measure the fair value of financial instruments at March 31, 2023 and December 31, 2022 represent an approximation of exit price, however, an actual exit price may differ. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned subsidiaries (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of March 31, 2023 and December 31, 2022, and the results of its operations for the three months ended March 31, 2023 and 2022. Interim results do not necessarily represent annual results. Certain information and disclosures normally included in notes to consolidated annual financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q pursuant to SEC rules and regulations. These financial statements should be read in conjunction with Old National’s Annual Report on Form 10-K for the year ended December 31, 2022. All intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior period net income or shareholders’ equity and were insignificant amounts. |
Financial Difficulty Modifications | Financial Difficulty Modifications Any loans that are modified are reviewed by Old National to identify if a financial difficulty modification has occurred, which is when Old National Bank modifies a loan related to a borrower experiencing financial difficulties. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status. The modification of the terms of such loans includes one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the maturity date, a permanent reduction of the recorded investment of the loan, or an other-than-insignificant payment delay. As a result of the adoption of ASU 2022-02 on January 1, 2023, the TDR classification is no longer applicable subsequent to December 31, 2022. See Note 2 to the consolidated financial statements for additional detail regarding the adoption of ASU 2022-02. Other than the changes for financial difficulty modifications, there have been no material changes from the significant accounting policies disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2023 FASB ASC 805 – In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities From Contracts With Customers , to address diversity in practice and inconsistency related to the accounting for revenue contracts with customers acquired in a business combination. The amendments require that the acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The ASU also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and liabilities. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Entities should apply the amendments prospectively to business combinations that occur after the effective date. The adoption of this guidance on January 1, 2023 did not have a material impact on the consolidated financial statements. FASB ASC 815 – In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method , to expand the current single-layer method of electing hedge accounting to allow multiple hedged layers of a single closed portfolio under the method and renames the last-of-layer method the portfolio layer method. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The adoption of this guidance on January 1, 2023 did not have a material impact on the consolidated financial statements. FASB ASC 326 – In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , to eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The amendments require that an entity disclose current-period gross charge-offs by year of origination for financing receivables and net investment in leases within the vintage disclosures required by ASC 326. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Old National adopted the provision in ASU 2022-02 related to the recognition and measurement of TDRs on a prospective basis on January 1, 2023, which did not have a material impact on the consolidated financial statements. FASB ASC 848 – In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rate on financial reporting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period. The amendments in this ASU are effective March 12, 2020 through December 31, 2024. Old National believes the adoption of this guidance on activities subsequent to March 31, 2023 will not have a material impact on the consolidated financial statements. Accounting Guidance Pending Adoption FASB ASC 820 – In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions , to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB ASC 842 – In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements , which requires all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. Transition can be done either retrospectively or prospectively. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB ASC 323 – In March 2023, the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method , which allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Table Reconciling Basic and Diluted Net Income Per Share | The following table presents the calculation of basic and diluted net income (loss) per common share: Three Months Ended (dollars and shares in thousands, except per share data) 2023 2022 Net income (loss) $ 146,600 $ (27,586) Preferred dividends (4,034) (2,017) Net income (loss) applicable to common shares $ 142,566 $ (29,603) Weighted average common shares outstanding: Weighted average common shares outstanding (basic) 291,088 227,002 Effect of dilutive securities: Restricted stock 1,666 — Stock appreciation rights 2 — Weighted average diluted shares outstanding 292,756 227,002 Basic Net Income (Loss) Per Common Share $ 0.49 $ (0.13) Diluted Net Income (Loss) Per Common Share $ 0.49 $ (0.13) |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Available-for-Sale Investment Securities Portfolio | The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolios and the corresponding amounts of gross unrealized gains, unrealized losses, and basis adjustments in AOCI and gross unrecognized gains and losses. (dollars in thousands) Amortized Unrealized Unrealized Basis Adjustments (1) Fair March 31, 2023 Available-for-Sale U.S. Treasury $ 268,894 $ 34 $ (10,755) $ (36,301) $ 221,872 U.S. government-sponsored entities and agencies 1,450,300 — (201,717) (54,892) 1,193,691 Mortgage-backed securities - Agency 4,861,624 641 (553,490) — 4,308,775 States and political subdivisions 641,317 2,138 (21,968) — 621,487 Pooled trust preferred securities 13,787 — (2,938) — 10,849 Other securities 356,843 277 (26,728) — 330,392 Total available-for-sale securities $ 7,592,765 $ 3,090 $ (817,596) $ (91,193) $ 6,687,066 Held-to-Maturity U.S. government-sponsored entities and agencies $ 820,849 $ — $ (157,226) $ — $ 663,623 Mortgage-backed securities - Agency 1,086,905 — (113,419) — 973,486 States and political subdivisions 1,163,586 744 (137,915) — 1,026,415 Allowance for securities held-to-maturity (150) — — — (150) Total held-to-maturity securities $ 3,071,190 $ 744 $ (408,560) $ — $ 2,663,374 December 31, 2022 Available-for-Sale U.S. Treasury $ 253,148 $ 5 $ (5,189) $ (47,037) $ 200,927 U.S. government-sponsored entities and agencies 1,451,736 — (169,248) (107,408) 1,175,080 Mortgage-backed securities - Agency 4,986,354 976 (617,428) — 4,369,902 States and political subdivisions 688,159 1,789 (26,096) — 663,852 Pooled trust preferred securities 13,783 — (2,972) — 10,811 Other securities 379,423 258 (26,541) — 353,140 Total available-for-sale securities $ 7,772,603 $ 3,028 $ (847,474) $ (154,445) $ 6,773,712 Held-to-Maturity U.S. government-sponsored entities and agencies $ 819,168 $ — $ (162,810) $ — $ 656,358 Mortgage-backed securities - Agency 1,106,817 — (123,854) — 982,963 States and political subdivisions 1,163,312 221 (159,022) — 1,004,511 Allowance for securities held-to-maturity (150) — — — (150) Total held-to-maturity securities $ 3,089,147 $ 221 $ (445,686) $ — $ 2,643,682 (1) Basis adjustments represent the cumulative fair value adjustments included in the carrying amounts of fixed-rate investment securities assets in fair value hedging arrangements . |
Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-Sale Investment Securities and Other Securities | Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows: Three Months Ended (dollars in thousands) 2023 2022 Proceeds $ 57,955 $ 50,113 Realized gains 909 463 Realized losses (6,125) (121) |
Expected Maturities of Investment Securities Portfolio | Weighted average yield is based on amortized cost. March 31, 2023 (dollars in thousands) Amortized Fair Weighted Maturity Available-for-Sale Within one year $ 141,160 $ 138,855 3.10 % One to five years 1,751,081 1,635,833 2.79 Five to ten years 4,031,392 3,556,971 2.34 Beyond ten years 1,669,132 1,355,407 2.41 Total $ 7,592,765 $ 6,687,066 2.47 % Held-to-Maturity One to five years 162,300 141,113 2.74 % Five to ten years 928,090 838,844 2.67 Beyond ten years 1,980,800 1,683,417 2.73 Total $ 3,071,190 $ 2,663,374 2.71 % |
Available-for-Sale and Held-to-Maturity Investment Securities with Unrealized Losses by Aggregated Major Security Type and Length of Time in Continuous Unrealized Loss Position | The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position: Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Losses March 31, 2023 Available-for-Sale U.S. Treasury $ 23,229 $ (106) $ 190,653 $ (10,649) $ 213,882 $ (10,755) U.S. government-sponsored entities 96,117 (2,554) 1,097,574 (199,163) 1,193,691 (201,717) Mortgage-backed securities - Agency 758,680 (26,422) 3,513,804 (527,068) 4,272,484 (553,490) States and political subdivisions 112,958 (1,576) 233,172 (20,392) 346,130 (21,968) Pooled trust preferred securities — — 10,849 (2,938) 10,849 (2,938) Other securities 42,014 (1,404) 273,603 (25,324) 315,617 (26,728) Total available-for-sale $ 1,032,998 $ (32,062) $ 5,319,655 $ (785,534) $ 6,352,653 $ (817,596) December 31, 2022 Available-for-Sale U.S. Treasury $ 130,967 $ (3,264) $ 66,992 $ (1,925) $ 197,959 $ (5,189) U.S. government-sponsored entities 454,854 (75,795) 720,226 (93,453) 1,175,080 (169,248) Mortgage-backed securities - Agency 3,207,319 (358,507) 1,116,205 (258,921) 4,323,524 (617,428) States and political subdivisions 414,813 (25,555) 2,703 (541) 417,516 (26,096) Pooled trust preferred securities — — 10,811 (2,972) 10,811 (2,972) Other securities 257,775 (17,045) 75,309 (9,496) 333,084 (26,541) Total available-for-sale $ 4,465,728 $ (480,166) $ 1,992,246 $ (367,308) $ 6,457,974 $ (847,474) |
Schedule of Held-to-Maturity Investment Securities with Unrecognized Losses | The following table summarizes the held-to-maturity investment securities with unrecognized losses aggregated by major security type and length of time in a continuous loss position: Less than 12 months 12 months or longer Total (dollars in thousands) Fair Unrecognized Fair Unrecognized Fair Unrecognized March 31, 2023 Held-to-Maturity U.S. government-sponsored entities $ 82,080 $ (7,003) $ 581,543 $ (150,223) $ 663,623 $ (157,226) Mortgage-backed securities - Agency 254,788 (18,775) 718,698 (94,644) 973,486 (113,419) States and political subdivisions 40,220 (2,238) 931,463 (135,677) 971,683 (137,915) Total held-to-maturity $ 377,088 $ (28,016) $ 2,231,704 $ (380,544) $ 2,608,792 $ (408,560) December 31, 2022 Held-to-Maturity U.S. government-sponsored entities 354,293 (110,523) 302,066 (52,287) 656,359 (162,810) Mortgage-backed securities - Agency 367,849 (42,438) 615,114 (81,416) 982,963 (123,854) States and political subdivisions 838,689 (127,355) 135,573 (31,667) 974,262 (159,022) Total available-for-sale $ 1,560,831 $ (280,316) $ 1,052,753 $ (165,370) $ 2,613,584 $ (445,686) |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Composition of Loans and Impact of Adoption | The portfolio segment reclassifications follow: Balance Sheet Portfolio After (dollars in thousands) March 31, 2023 Loans: Commercial $ 9,751,875 $ (213,187) $ 9,538,688 Commercial real estate 12,908,380 (160,041) 12,748,339 BBCC N/A 373,228 373,228 Residential real estate 6,568,666 — 6,568,666 Consumer 2,593,453 (2,593,453) N/A Indirect N/A 1,003,287 1,003,287 Direct N/A 580,726 580,726 Home equity N/A 1,009,440 1,009,440 Total $ 31,822,374 $ — $ 31,822,374 December 31, 2022 Loans: Commercial $ 9,508,904 $ (210,280) $ 9,298,624 Commercial real estate 12,457,070 (158,322) 12,298,748 BBCC N/A 368,602 368,602 Residential real estate 6,460,441 — 6,460,441 Consumer 2,697,226 (2,697,226) N/A Indirect N/A 1,034,257 1,034,257 Direct N/A 629,186 629,186 Home equity N/A 1,033,783 1,033,783 Total $ 31,123,641 $ — $ 31,123,641 |
Schedule of Composition of Loans | The composition of loans by portfolio segment follows: (dollars in thousands) March 31, December 31, Commercial (1) $ 9,538,688 $ 9,298,624 Commercial real estate 12,748,339 12,298,748 BBCC 373,228 368,602 Residential real estate 6,568,666 6,460,441 Indirect 1,003,287 1,034,257 Direct 580,726 629,186 Home equity 1,009,440 1,033,783 Total loans 31,822,374 31,123,641 Allowance for credit losses on loans (298,711) (303,671) Net loans $ 31,523,663 $ 30,819,970 (1) Includes direct finance leases of $178.7 million at March 31, 2023 and $188.1 million at December 31, 2022. |
Schedule of Activity in Allowance for Loan Losses | Old National’s activity in the allowance for credit losses on loans by portfolio segment was as follows: (dollars in thousands) Balance at Allowance Charge-offs Recoveries Provision Balance at Three Months Ended Commercial $ 120,612 $ — $ (12,423) $ 283 $ 17,296 $ 125,768 Commercial real estate 138,244 — (1,189) 263 (1,970) 135,348 BBCC 2,431 — (28) 73 (160) 2,316 Residential real estate 21,916 — (23) 72 (1,758) 20,207 Indirect 1,532 — (1,197) 412 687 1,434 Direct 12,116 — (3,238) 581 (2,693) 6,766 Home equity 6,820 — (82) 67 67 6,872 Total $ 303,671 $ — $ (18,180) $ 1,751 $ 11,469 $ 298,711 Three Months Ended Commercial $ 27,232 $ 35,040 $ (1,880) $ 325 $ 38,754 $ 99,471 Commercial real estate 64,004 42,601 (507) 182 34,210 140,490 BBCC 2,458 — (28) 57 (418) 2,069 Residential real estate 9,347 136 (185) 440 7,514 17,252 Indirect 1,743 — (483) 222 166 1,648 Direct 528 31 (1,530) 582 14,839 14,450 Home equity 2,029 723 (51) 82 2,344 5,127 Total $ 107,341 $ 78,531 $ (4,664) $ 1,890 $ 97,409 $ 280,507 Three Months Ended (dollars in thousands) 2023 2022 Allowance for credit losses on unfunded loan commitments: Balance at beginning of period $ 32,188 $ 10,879 Provision for credit losses on unfunded commitments — 11,013 Provision for unfunded loan commitments 1,968 154 Balance at end of period $ 34,156 $ 22,046 |
Schedule of Risk Category of Loans and Amortized Cost | The following table summarizes the amortized cost of term loans by risk category and gross charge-offs of commercial, commercial real estate, and BBCC loans by loan portfolio segment, class of loan, and origination year: Origination Year Revolving to Term (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Total March 31, 2023 Commercial: Risk Rating: Pass $ 673,613 $ 2,299,378 $ 1,517,883 $ 712,011 $ 629,196 $ 694,970 $ 2,041,109 $ 433,838 $ 9,001,998 Criticized 24,476 38,369 26,289 52,907 31,378 6,538 56,784 10,792 247,533 Classified: Substandard 5,879 16,596 75,646 15,505 21,896 3,401 40,883 47,187 226,993 Nonaccrual — — 1,462 2,049 1,468 — 6,436 5,172 16,587 Doubtful — 20,828 11,687 3,633 73 9,356 — — 45,577 Total $ 703,968 $ 2,375,171 $ 1,632,967 $ 786,105 $ 684,011 $ 714,265 $ 2,145,212 $ 496,989 $ 9,538,688 Gross charge-offs $ — $ — $ 5,230 $ — $ 6,789 $ 239 $ 165 $ — $ 12,423 Commercial real estate: Risk Rating: Pass $ 600,890 $ 3,129,239 $ 2,833,471 $ 1,942,417 $ 1,171,555 $ 1,560,183 $ 74,982 $ 643,987 $ 11,956,724 Criticized 217 56,997 40,407 22,202 70,931 105,130 — 42,466 338,350 Classified: Substandard 8,653 89,716 22,101 20,207 98,147 82,928 — 18,138 339,890 Nonaccrual — 648 9,785 4,879 — 21,708 — 3,151 40,171 Doubtful — 2,627 35,723 9,919 4,507 20,428 — — 73,204 Total $ 609,760 $ 3,279,227 $ 2,941,487 $ 1,999,624 $ 1,345,140 $ 1,790,377 $ 74,982 $ 707,742 $ 12,748,339 Gross charge-offs $ — $ 54 $ 735 $ 400 $ — $ — $ — $ — $ 1,189 BBCC: Risk Rating: Pass $ 25,194 $ 86,881 $ 59,220 $ 48,866 $ 35,291 $ 27,217 $ 59,846 $ 17,644 $ 360,159 Criticized 50 1,843 479 265 1,023 57 2,047 1,660 7,424 Classified: Substandard 10 986 641 33 415 — 603 658 3,346 Nonaccrual — 39 36 130 — 626 — 836 1,667 Doubtful — 39 73 276 108 136 — — 632 Total $ 25,254 $ 89,788 $ 60,449 $ 49,570 $ 36,837 $ 28,036 $ 62,496 $ 20,798 $ 373,228 Gross charge-offs $ — $ — $ 28 $ — $ — $ — $ — $ — $ 28 Origination Year Revolving to Term (dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Commercial: Risk Rating: Pass $ 2,388,618 $ 1,754,364 $ 796,340 $ 738,208 $ 362,986 $ 388,617 $ 1,988,763 $ 329,119 $ 8,747,015 Criticized 40,856 30,661 63,557 33,490 9,195 5,312 61,036 4,327 248,434 Classified: Substandard 37,223 47,522 16,540 22,925 4,844 21,204 67,402 25,143 242,803 Nonaccrual 3,627 1,453 566 — — — 1,634 6,623 13,903 Doubtful 2,821 17,604 3,720 8,005 5,968 8,351 — — 46,469 Total $ 2,473,145 $ 1,851,604 $ 880,723 $ 802,628 $ 382,993 $ 423,484 $ 2,118,835 $ 365,212 $ 9,298,624 Commercial real estate: Risk Rating: Pass $ 3,066,960 $ 2,828,758 $ 1,989,000 $ 1,219,025 $ 675,572 $ 1,018,719 $ 57,818 $ 689,553 $ 11,545,405 Criticized 75,306 34,422 22,569 82,637 86,504 56,864 — 23,282 381,584 Classified: Substandard 46,231 16,928 24,319 78,468 57,824 21,591 — 4,108 249,469 Nonaccrual 3,151 9,541 5,014 — 2,312 22,155 — 3,257 45,430 Doubtful 1,934 38,386 10,011 4,605 1,523 20,401 — — 76,860 Total $ 3,193,582 $ 2,928,035 $ 2,050,913 $ 1,384,735 $ 823,735 $ 1,139,730 $ 57,818 $ 720,200 $ 12,298,748 BBCC: Risk Rating: Pass $ 90,341 $ 64,161 $ 52,304 $ 36,868 $ 23,618 $ 11,333 $ 60,016 $ 18,881 $ 357,522 Criticized 1,504 525 368 692 353 — 1,006 1,603 6,051 Classified: Substandard 811 143 — 421 — — 543 682 2,600 Nonaccrual 42 37 118 — 429 284 — 639 1,549 Doubtful 40 107 439 157 64 73 — — 880 Total $ 92,738 $ 64,973 $ 53,229 $ 38,138 $ 24,464 $ 11,690 $ 61,565 $ 21,805 $ 368,602 Origination Year Revolving to Term (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Total March 31, 2023 Residential real estate: Risk Rating: Performing $ 92,032 $ 1,419,736 $ 1,975,809 $ 1,749,348 $ 472,547 $ 823,622 $ — $ 84 $ 6,533,178 Nonperforming — 1,272 2,373 2,421 2,796 26,620 — 6 35,488 Total $ 92,032 $ 1,421,008 $ 1,978,182 $ 1,751,769 $ 475,343 $ 850,242 $ — $ 90 $ 6,568,666 Gross charge-offs $ — $ — $ — $ — $ — $ 23 $ — $ — $ 23 Indirect: Risk Rating: Performing $ 74,980 $ 465,805 $ 225,377 $ 126,788 $ 69,147 $ 37,704 $ — $ 58 $ 999,859 Nonperforming — 505 1,286 627 467 543 — — 3,428 Total $ 74,980 $ 466,310 $ 226,663 $ 127,415 $ 69,614 $ 38,247 $ — $ 58 $ 1,003,287 Gross charge-offs $ — $ 514 $ 430 $ 93 $ 111 $ 49 $ — $ — $ 1,197 Direct: Risk Rating: Performing $ 27,097 $ 121,525 $ 141,746 $ 68,407 $ 48,981 $ 92,285 $ 74,520 $ 2,118 $ 576,679 Nonperforming — 401 554 580 636 1,863 7 6 4,047 Total $ 27,097 $ 121,926 $ 142,300 $ 68,987 $ 49,617 $ 94,148 $ 74,527 $ 2,124 $ 580,726 Gross charge-offs $ — $ 471 $ 794 $ 286 $ 327 $ 195 $ 1,165 $ — $ 3,238 Home equity: Risk Rating: Performing $ — $ 1,273 $ 876 $ 1,382 $ 1,068 $ 7,938 $ 962,911 $ 20,456 $ 995,904 Nonperforming — 162 133 161 930 5,470 1,924 4,756 13,536 Total $ — $ 1,435 $ 1,009 $ 1,543 $ 1,998 $ 13,408 $ 964,835 $ 25,212 $ 1,009,440 Gross charge-offs $ — $ — $ — $ — $ — $ 82 $ — $ — $ 82 Origination Year Revolving to Term 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Residential real estate: Risk Rating: Performing $ 1,327,168 $ 1,945,792 $ 1,825,762 $ 478,529 $ 136,260 $ 712,175 $ 7 $ 88 $ 6,425,781 Nonperforming 59 529 861 873 1,826 30,512 — — 34,660 Total $ 1,327,227 $ 1,946,321 $ 1,826,623 $ 479,402 $ 138,086 $ 742,687 $ 7 $ 88 $ 6,460,441 Indirect: Risk Rating: Performing $ 504,410 $ 249,407 $ 144,265 $ 82,304 $ 31,484 $ 19,095 $ — $ 62 $ 1,031,027 Nonperforming 348 1,074 645 531 304 328 — — 3,230 Total $ 504,758 $ 250,481 $ 144,910 $ 82,835 $ 31,788 $ 19,423 $ — $ 62 $ 1,034,257 Direct: Risk Rating: Performing $ 132,934 $ 164,126 $ 77,406 $ 57,919 $ 45,299 $ 59,212 $ 87,622 $ 671 $ 625,189 Nonperforming 115 851 614 205 327 1,526 5 354 3,997 Total $ 133,049 $ 164,977 $ 78,020 $ 58,124 $ 45,626 $ 60,738 $ 87,627 $ 1,025 $ 629,186 Home equity: Risk Rating: Performing $ 919 $ 896 $ 1,849 $ 1,497 $ 983 $ 11,646 $ 990,001 $ 14,792 $ 1,022,583 Nonperforming 166 160 166 446 794 4,308 1,698 3,462 11,200 Total $ 1,085 $ 1,056 $ 2,015 $ 1,943 $ 1,777 $ 15,954 $ 991,699 $ 18,254 $ 1,033,783 |
Schedule of Past Due Financing Receivables | The following table presents the aging of the amortized cost basis in past due loans by class of loans: (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Current Total March 31, 2023 Commercial $ 8,463 $ 3,397 $ 9,333 $ 21,193 $ 9,517,495 $ 9,538,688 Commercial real estate 14,648 256 26,659 41,563 12,706,776 12,748,339 BBCC 1,618 552 430 2,600 370,628 373,228 Residential 19,495 310 9,725 29,530 6,539,136 6,568,666 Indirect 4,229 1,141 511 5,881 997,406 1,003,287 Direct 3,759 955 1,511 6,225 574,501 580,726 Home equity 6,279 1,923 4,802 13,004 996,436 1,009,440 Total $ 58,491 $ 8,534 $ 52,971 $ 119,996 $ 31,702,378 $ 31,822,374 December 31, 2022 Commercial $ 14,147 $ 4,801 $ 11,080 $ 30,028 $ 9,268,596 $ 9,298,624 Commercial real estate 47,240 1,312 32,892 81,444 12,217,304 12,298,748 BBCC 730 365 603 1,698 366,904 368,602 Residential 24,181 5,033 11,753 40,967 6,419,474 6,460,441 Indirect 6,302 2,118 958 9,378 1,024,879 1,034,257 Direct 5,404 2,118 1,928 9,450 619,736 629,186 Home equity 6,585 1,966 4,707 13,258 1,020,525 1,033,783 Total $ 104,589 $ 17,713 $ 63,921 $ 186,223 $ 30,937,418 $ 31,123,641 |
Schedule of Nonaccrual and Past Due Loans | The following table presents the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan: March 31, 2023 December 31, 2022 (dollars in thousands) Nonaccrual Nonaccrual Past Due Nonaccrual Nonaccrual Past Due Commercial $ 62,164 $ 14,695 $ — $ 60,372 $ 7,873 $ 152 Commercial real estate 113,375 36,495 — 122,290 33,445 — BBCC 2,299 — — 2,429 — — Residential 35,488 — 1,070 34,660 — 1,808 Indirect 3,428 — — 3,230 — 28 Direct 4,047 — 119 3,997 — 133 Home equity 13,536 — 42 11,200 — 529 Total $ 234,337 $ 51,190 $ 1,231 $ 238,178 $ 41,318 $ 2,650 Type of Collateral (dollars in thousands) Real Blanket Investment Auto Other March 31, 2023 Commercial $ 13,899 $ 41,674 $ 2,219 $ 1,103 $ 124 Commercial real estate 100,490 — 1,661 — 6,334 BBCC 1,823 464 — 12 — Residential 35,488 — — — — Indirect — — — 3,428 — Direct 2,961 2 — 253 34 Home equity 13,536 — — — Total loans $ 168,197 $ 42,140 $ 3,880 $ 4,796 $ 6,492 December 31, 2022 Commercial $ 8,962 $ 42,754 $ 2,690 $ 1,611 $ 980 Commercial real estate 108,871 — 1,718 — 6,411 BBCC 1,939 478 — 12 — Residential 34,660 — — — — Indirect — — — 3,230 — Direct 2,991 13 — 232 23 Home equity 11,200 — — — — Total loans $ 168,623 $ 43,245 $ 4,408 $ 5,085 $ 7,414 |
Schedule of Activity in Trouble Debt Restructurings | The following table presents the amortized cost basis of loans with modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2023 by class of loans and type of modification: (dollars in thousands) Term Total Commercial $ 17,342 0.2 % Commercial real estate 9,926 0.1 % Total $ 27,268 0.1 % Old National closely monitors the performance of loan modifications to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that have been modified during the three months ended March 31, 2023: (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Current Total March 31, 2023 Commercial $ — $ 2,637 $ — $ 2,637 $ 14,705 $ 17,342 Commercial real estate — — — — 9,926 9,926 Total $ — $ 2,637 $ — $ 2,637 $ 24,631 $ 27,268 The following table summarizes the nature of the loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2023 by class of loans: (dollars in thousands) Weighted- Commercial 6.8 Commercial real estate 4.1 Total 5.6 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Affected Line Three Months Ended (dollars in thousands) 2023 2022 Operating lease cost Occupancy/Equipment expense $ 8,638 $ 5,108 Finance lease cost: Amortization of right-of-use assets Occupancy expense 691 675 Interest on lease liabilities Interest expense 169 107 Sub-lease income Occupancy expense (60) (128) Total $ 9,438 $ 5,762 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: (dollars in thousands) March 31, December 31, Operating Leases Operating lease right-of-use assets $ 183,687 $ 189,714 Operating lease liabilities 205,249 211,964 Finance Leases Premises and equipment, net 21,173 10,799 Other borrowings 21,983 13,469 Weighted-Average Remaining Lease Term (in Years) Operating leases 8.9 9.1 Finance leases 10.6 7.2 Weighted-Average Discount Rate Operating leases 2.90 % 2.88 % Finance leases 3.82 % 3.30 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Three Months Ended (dollars in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,932 $ 5,341 Operating cash flows from finance leases 169 107 Financing cash flows from finance leases 628 616 |
Schedule of Maturity Analysis of Lease Liability by Lease Classification | The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2023: (dollars in thousands) Operating Finance 2023 $ 22,933 $ 2,432 2024 29,819 3,278 2025 28,513 3,301 2026 27,600 2,075 2027 26,668 2,078 Thereafter 98,709 13,964 Total undiscounted lease payments 234,242 27,128 Amounts representing interest (28,993) (5,145) Lease liability $ 205,249 $ 21,983 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The following table presents the changes in the carrying amount of goodwill: Three Months Ended (dollars in thousands) 2023 2022 Balance at beginning of period $ 1,998,716 $ 1,036,994 Acquisitions and adjustments — 960,163 Balance at end of period $ 1,998,716 $ 1,997,157 |
Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets | The gross carrying amounts and accumulated amortization of other intangible assets were as follows: (dollars in thousands) Gross Accumulated Net March 31, 2023 Core deposit $ 170,642 $ (85,861) $ 84,781 Customer trust relationships 56,243 (20,805) 35,438 Total other intangible assets $ 226,885 $ (106,666) $ 120,219 December 31, 2022 Core deposit $ 170,642 $ (80,951) $ 89,691 Customer trust relationships 56,243 (19,529) 36,714 Total other intangible assets $ 226,885 $ (100,480) $ 126,405 |
Schedule of Estimated Amortization Expense for Future Years | Estimated amortization expense for future years is as follows: (dollars in thousands) 2023 remaining $ 17,969 2024 21,239 2025 18,358 2026 15,555 2027 12,867 Thereafter 34,231 Total $ 120,219 |
Qualified Affordable Housing _2
Qualified Affordable Housing Projects and Other Tax Credit Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments in Affordable Housing Projects [Abstract] | |
Schedule of Qualified Affordable Housing Projects and Other Tax Credit Investments | The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments: (dollars in thousands) March 31, 2023 December 31, 2022 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded LIHTC Proportional amortization $ 82,950 $ 46,743 $ 84,428 $ 55,754 FHTC Equity 18,892 9,019 19,316 9,588 NMTC Consolidation 49,820 — 51,912 — Renewable Energy Equity 854 — 1,099 — Total $ 152,516 $ 55,762 $ 156,755 $ 65,342 (1) All commitments will be paid by Old National by December 31, 2027. The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments: (dollars in thousands) Amortization Expense (1) Tax Expense (Benefit) Recognized (2) Three Months Ended March 31, 2023 LIHTC $ 1,463 $ (1,908) FHTC 424 (512) NMTC 2,091 (2,611) Renewable Energy 246 — Total $ 4,224 $ (5,031) Three Months Ended March 31, 2022 LIHTC $ 1,253 $ (1,650) FHTC 205 (251) NMTC 1,101 (1,375) Renewable Energy 210 — Total $ 2,769 $ (3,276) (1) The amortization expense for the LIHTC investments is included in our income tax expense. The amortization expense for the FHTC, NMTC, and Renewable Energy tax credits is included in noninterest expense. (2) All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the FHTC, NMTC, and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss). |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of Securities Sold Under Agreements to Repurchase and Weighted-Average Interest Rates | The following table presents securities sold under agreements to repurchase and related weighted-average interest rates: At or for the Three Months Ended March 31, At December 31, At or for the Three Months Ended March 31, (dollars in thousands) Outstanding at period end $ 393,018 $ 432,804 $ 509,275 Average amount outstanding during the period 412,819 N/A 449,939 Maximum amount outstanding at any month-end during the period 430,537 N/A 509,275 Weighted-average interest rate: During the period 0.77 % N/A 0.09 % At period end 0.88 % 1.31 % 0.08 % |
Schedule of Remaining Contractual Maturity of Secured Borrowings and Class of Collateral Pledged Under Repurchase Agreements | The following table presents the contractual maturity of our secured borrowings and class of collateral pledged: At March 31, 2023 Remaining Contractual Maturity of the Agreements (dollars in thousands) Overnight and Continuous Up to 30-90 Days Greater Than 90 days Total Repurchase Agreements: U.S. Treasury and agency securities $ 393,018 $ — $ — $ — $ 393,018 Total $ 393,018 $ — $ — $ — $ 393,018 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
Summary of FHLB Advances | The following table summarizes Old National Bank’s FHLB advances: (dollars in thousands) March 31, December 31, FHLB advances (fixed rates 0.00% to 5.11% and variable rates 4.57% to 5.24%) maturing April 2023 to September 2042 $ 5,000,528 $ 3,850,677 Fair value hedge basis adjustments and unamortized (18,916) (21,659) Total $ 4,981,612 $ 3,829,018 |
Summary of Contractual Maturities of FHLB Advances | Contractual maturities of FHLB advances at March 31, 2023 were as follows: (dollars in thousands) Due in 2023 $ 1,250,000 Due in 2024 25,243 Due in 2025 550,285 Due in 2026 100,000 Thereafter 3,075,000 Fair value hedge basis adjustments and unamortized prepayment fees (18,916) Total $ 4,981,612 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Borrowings | The following table summarizes Old National’s other borrowings: (dollars in thousands) March 31, December 31, Old National Bancorp: Senior unsecured notes (fixed rate 4.125%) maturing August 2024 $ 175,000 $ 175,000 Unamortized debt issuance costs related to senior unsecured notes (208) (247) Subordinated debentures (fixed rate 5.875%) maturing September 2026 150,000 150,000 Junior subordinated debentures (variable rates of 6.27% to 8.41%) maturing July 2031 to September 2037 136,643 136,643 Other basis adjustments 22,073 23,363 Old National Bank: Finance lease liabilities 21,983 13,469 Subordinated debentures (variable rate 9.16%) maturing October 2025 12,000 12,000 Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%) maturing December 2046 to June 2060 143,745 143,187 Other (1) 85,633 89,588 Total other borrowings $ 746,869 $ 743,003 (1) Includes overnight borrowings to collateralize certain derivative positions totaling $84.4 million at March 31, 2023 and $88.0 million at December 31, 2022. The following table summarizes the terms of our outstanding junior subordinated debentures at March 31, 2023: (dollars in thousands) Rate at March 31, Name of Trust Issuance Date Issuance Rate Maturity Date Bridgeview Statutory Trust I July 2001 $ 15,464 3-month LIBOR plus 3.58% 8.41% July 31, 2031 Bridgeview Capital Trust II December 2002 15,464 3-month LIBOR plus 3.35% 8.18% January 7, 2033 First Midwest Capital Trust I November 2003 37,825 6.95% fixed 6.95% December 1, 2033 St. Joseph Capital Trust II March 2005 5,155 3-month LIBOR plus 1.75% 6.66% March 17, 2035 Northern States Statutory Trust I September 2005 10,310 3-month LIBOR plus 1.80% 6.67% September 15, 2035 Anchor Capital Trust III August 2005 5,000 3-month LIBOR plus 1.55% 6.71% September 30, 2035 Great Lakes Statutory Trust II December 2005 6,186 3-month LIBOR plus 1.40% 6.27% December 15, 2035 Home Federal Statutory September 2006 15,464 3-month LIBOR plus 1.65% 6.52% September 15, 2036 Monroe Bancorp Capital July 2006 3,093 3-month LIBOR plus 1.60% 6.43% October 7, 2036 Tower Capital Trust 3 December 2006 9,279 3-month LIBOR plus 1.69% 6.65% March 1, 2037 Monroe Bancorp Statutory March 2007 5,155 3-month LIBOR plus 1.60% 6.47% June 15, 2037 Great Lakes Statutory Trust III June 2007 8,248 3-month LIBOR plus 1.70% 6.57% September 15, 2037 Total $ 136,643 The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit: (dollars in thousands) March 31, December 31, Unfunded loan commitments $ 9,386,866 $ 8,979,334 Standby letters of credit (1) 181,476 174,070 (1) Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $0.9 million at March 31, 2023 and $0.8 million at December 31, 2022. |
Summary of Contractual Maturities of Other Borrowings | Contractual maturities of other borrowings at March 31, 2023 were as follows: (dollars in thousands) Due in 2023 $ 86,291 Due in 2024 177,609 Due in 2025 14,696 Due in 2026 151,529 Due in 2027 1,587 Thereafter 292,059 Unamortized debt issuance costs and other basis adjustments 23,098 Total $ 746,869 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of AOCI | The following table summarizes the changes within each classification of AOCI, net of tax: (dollars in thousands) Unrealized Unrealized Gains and Defined Total Three Months Ended March 31, 2023 Balance at beginning of period $ (642,346) $ (112,664) $ (31,549) $ 137 $ (786,422) Other comprehensive income (loss) before 27,219 1,325 35,985 — 64,529 Amounts reclassified from AOCI to income (1) 3,867 4,373 5,436 (141) 13,535 Balance at end of period $ (611,260) $ (106,966) $ 9,872 $ (4) $ (708,358) Three Months Ended March 31, 2022 Balance at beginning of period $ (2,950) $ — $ 543 $ 32 $ (2,375) Other comprehensive income (loss) before (311,153) (16,963) (7,170) — (335,286) Amounts reclassified from AOCI to income (1) (261) 236 (505) (8) (538) Balance at end of period $ (314,364) $ (16,727) $ (7,132) $ 24 $ (338,199) (1) See table below for details about reclassifications to income. |
Reclassifications out of AOCI | The following table summarizes the significant amounts reclassified out of each component of AOCI for the three months ended March 31, 2023 and 2022: Three Months Ended (dollars in thousands) 2023 2022 Details about AOCI Components Amount Reclassified Affected Line Item in the Unrealized gains and losses on $ (5,216) $ 342 Debt securities gains (losses), net 1,349 (81) Income tax (expense) benefit $ (3,867) $ 261 Net income (loss) Unrealized gains and losses on $ (5,829) $ (310) Interest income (expense) 1,456 74 Income tax (expense) benefit $ (4,373) $ (236) Net income (loss) Gains and losses on hedges $ (7,292) $ 669 Interest income (expense) 1,856 (164) Income tax (expense) benefit $ (5,436) $ 505 Net income (loss) Amortization of defined benefit Actuarial gains (losses) $ 188 $ 11 Salaries and employee benefits (47) (3) Income tax (expense) benefit $ 141 $ 8 Net income (loss) Total reclassifications for the period $ (13,535) $ 538 Net income (loss) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate | Following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income: Three Months Ended (dollars in thousands) 2023 2022 Provision at statutory rate of 21% $ 39,484 $ (7,623) Tax-exempt income: Tax-exempt interest (4,486) (2,992) Section 291/265 interest disallowance 386 28 Company-owned life insurance income (627) (718) Tax-exempt income (4,727) (3,682) State income taxes 8,142 (3,327) Interim period effective rate adjustment (1,717) 7,040 Tax credit investments - federal (2,526) (1,270) Officer compensation limitation 1,040 — Other, net 1,725 148 Income tax expense (benefit) $ 41,421 $ (8,714) Effective tax rate 22.0 % 24.0 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Interest Rate Derivatives | The following table summarizes Old National’s derivatives designated as hedges: March 31, 2023 December 31, 2022 Fair Value Fair Value (dollars in thousands) Notional Assets (1) Liabilities (2) Notional Assets (1) Liabilities (2) Cash flow hedges Interest rate collars and floors on loan pools $ 1,900,000 $ 17,328 $ 38,276 $ 1,900,000 $ 11,764 $ 47,859 Interest rate swaps on borrowings (3) 150,000 — — 150,000 — — Fair value hedges Interest rate swaps on investment securities (3) 909,957 — 4,833 909,957 — — Interest rate swaps on borrowings (3) 200,000 — — 300,000 — — Total $ 17,328 $ 43,109 $ 11,764 $ 47,859 (1) Derivative assets are included in other assets on the balance sheet. (2) Derivative liabilities are included in other liabilities on the balance sheet. (3) The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules. |
Schedule of Derivative Instruments Effect on Consolidated Statement of Income | The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows: (dollars in thousands) Gain (Loss) Derivatives in Location of Gain or Gain (Loss) Hedged Items Location of Gain or Three Months Ended March 31, 2023 Interest rate contracts Interest income/(expense) $ 2,153 Fixed-rate debt Interest income/(expense) $ (2,218) Interest rate contracts Interest income/(expense) (63,115) Fixed-rate Interest income/(expense) 63,251 Total $ (60,962) $ 61,033 Three Months Ended Interest rate contracts Interest income/(expense) $ (4,833) Fixed-rate debt Interest income/(expense) $ 4,956 Interest rate contracts Interest income/(expense) 57,654 Fixed-rate Interest income/(expense) (58,029) Total $ 52,821 $ (53,073) The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows: Three Months Ended Three Months Ended (dollars in thousands) 2023 2022 2023 2022 Derivatives in Location of Gain or Gain (Loss) Gain (Loss) Interest rate contracts Interest income/(expense) $ 6,603 $ (9,506) $ (7,637) $ 669 The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows: Three Months Ended (dollars in thousands) 2023 2022 Derivatives Not Designated as Location of Gain or (Loss) Gain (Loss) Interest rate contracts (1) Other income/(expense) $ (138) $ 501 Mortgage contracts Mortgage banking revenue 107 130 Foreign currency contracts Other income/(expense) (1) (28) Total $ (32) $ 603 (1) Includes the valuation differences between the customer and offsetting swaps. |
Summary of Derivatives Not Designated as Hedging Instruments | The following table summarizes Old National’s derivatives not designated as hedges: March 31, 2023 December 31, 2022 Fair Value Fair Value (dollars in thousands) Notional Assets (1) Liabilities (2) Notional Assets (1) Liabilities (2) Interest rate lock commitments $ 38,945 $ 380 $ — $ 21,401 $ 93 $ — Forward mortgage loan contracts 45,047 — 148 30,330 32 — Customer interest rate swaps 5,575,403 19,470 257,902 5,220,363 5,676 326,924 Counterparty interest rate swaps (3) 5,575,403 128,487 19,610 5,220,363 151,111 5,711 Customer foreign currency forward contracts 14,165 382 21 8,341 253 42 Counterparty foreign currency forward contracts 14,143 22 205 8,297 72 168 Total $ 148,741 $ 277,886 $ 157,237 $ 332,845 (1) Derivative assets are included in other assets on the balance sheet. (2) Derivative liabilities are included in other liabilities on the balance sheet. (3) The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules. |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Financial Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Loan Commitments | The following table summarizes Old National’s other borrowings: (dollars in thousands) March 31, December 31, Old National Bancorp: Senior unsecured notes (fixed rate 4.125%) maturing August 2024 $ 175,000 $ 175,000 Unamortized debt issuance costs related to senior unsecured notes (208) (247) Subordinated debentures (fixed rate 5.875%) maturing September 2026 150,000 150,000 Junior subordinated debentures (variable rates of 6.27% to 8.41%) maturing July 2031 to September 2037 136,643 136,643 Other basis adjustments 22,073 23,363 Old National Bank: Finance lease liabilities 21,983 13,469 Subordinated debentures (variable rate 9.16%) maturing October 2025 12,000 12,000 Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%) maturing December 2046 to June 2060 143,745 143,187 Other (1) 85,633 89,588 Total other borrowings $ 746,869 $ 743,003 (1) Includes overnight borrowings to collateralize certain derivative positions totaling $84.4 million at March 31, 2023 and $88.0 million at December 31, 2022. The following table summarizes the terms of our outstanding junior subordinated debentures at March 31, 2023: (dollars in thousands) Rate at March 31, Name of Trust Issuance Date Issuance Rate Maturity Date Bridgeview Statutory Trust I July 2001 $ 15,464 3-month LIBOR plus 3.58% 8.41% July 31, 2031 Bridgeview Capital Trust II December 2002 15,464 3-month LIBOR plus 3.35% 8.18% January 7, 2033 First Midwest Capital Trust I November 2003 37,825 6.95% fixed 6.95% December 1, 2033 St. Joseph Capital Trust II March 2005 5,155 3-month LIBOR plus 1.75% 6.66% March 17, 2035 Northern States Statutory Trust I September 2005 10,310 3-month LIBOR plus 1.80% 6.67% September 15, 2035 Anchor Capital Trust III August 2005 5,000 3-month LIBOR plus 1.55% 6.71% September 30, 2035 Great Lakes Statutory Trust II December 2005 6,186 3-month LIBOR plus 1.40% 6.27% December 15, 2035 Home Federal Statutory September 2006 15,464 3-month LIBOR plus 1.65% 6.52% September 15, 2036 Monroe Bancorp Capital July 2006 3,093 3-month LIBOR plus 1.60% 6.43% October 7, 2036 Tower Capital Trust 3 December 2006 9,279 3-month LIBOR plus 1.69% 6.65% March 1, 2037 Monroe Bancorp Statutory March 2007 5,155 3-month LIBOR plus 1.60% 6.47% June 15, 2037 Great Lakes Statutory Trust III June 2007 8,248 3-month LIBOR plus 1.70% 6.57% September 15, 2037 Total $ 136,643 The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit: (dollars in thousands) March 31, December 31, Unfunded loan commitments $ 9,386,866 $ 8,979,334 Standby letters of credit (1) 181,476 174,070 (1) Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $0.9 million at March 31, 2023 and $0.8 million at December 31, 2022. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: Fair Value Measurements at March 31, 2023 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Equity securities $ 72,158 $ 72,158 $ — $ — Investment securities available-for-sale: U.S. Treasury 221,872 221,872 — — U.S. government-sponsored entities and agencies 1,193,691 — 1,193,691 — Mortgage-backed securities - Agency 4,308,775 — 4,308,775 — States and political subdivisions 621,487 — 621,487 — Pooled trust preferred securities 10,849 — 10,849 — Other securities 330,392 — 330,392 — Residential loans held for sale 10,584 — 10,584 — Derivative assets 166,069 — 166,069 — Financial Liabilities Derivative liabilities 320,995 — 320,995 — Fair Value Measurements at December 31, 2022 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Equity securities $ 52,507 $ 52,507 $ — $ — Investment securities available-for-sale: U.S. Treasury 200,927 200,927 — — U.S. government-sponsored entities and agencies 1,175,080 — 1,175,080 — Mortgage-backed securities - Agency 4,369,902 — 4,369,902 — States and political subdivisions 663,852 — 663,852 — Pooled trust preferred securities 10,811 — 10,811 — Other securities 353,140 — 353,140 — Residential loans held for sale 11,926 — 11,926 — Derivative assets 169,001 — 169,001 — Financial Liabilities Derivative liabilities 380,704 — 380,704 — |
Schedule of Assets Measured at Fair Value on a Non-Recurring Basis | Assets measured at fair value at March 31, 2023 on a non-recurring basis are summarized below: Fair Value Measurements at March 31, 2023 Using (dollars in thousands) Carrying Quoted Prices in Significant Significant Collateral Dependent Loans: Commercial loans $ 16,686 $ — $ — $ 16,686 Commercial real estate loans 43,924 — — 43,924 Foreclosed Assets: Commercial 240 — — 240 Residential 511 — — 511 Assets measured at fair value at December 31, 2022 on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2022 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Collateral Dependent Loans: Commercial loans $ 22,562 $ — $ — $ 22,562 Commercial real estate loans 48,026 — — 48,026 |
Schedule of Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements | The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy: (dollars in thousands) Fair Value Valuation Techniques Unobservable Input Range (Weighted Average) (1) March 31, 2023 Collateral Dependent Loans Commercial loans $ 16,686 Discounted Discount for type of property, 10% - 40% (33%) cash flow age of appraisal, and current status Commercial real estate loans 43,924 Discounted Discount for type of property, 0% - 30% (14%) cash flow age of appraisal, and current status Foreclosed Assets Commercial real estate (2) 240 Fair value of Discount for type of property, —% collateral age of appraisal, and current status Residential (2) 511 Fair value of Discount for type of property, 5% collateral age of appraisal, and current status December 31, 2022 Collateral Dependent Loans Commercial loans $ 22,562 Discounted Discount for type of property, 10% - 47% (28%) cash flow age of appraisal, and current status Commercial real estate loans 48,026 Discounted Discount for type of property, 1% - 26% (11%) cash flow age of appraisal, and current status (1) Unobservable inputs were weighted by the relative fair value of the instruments. (2) There were no writedowns on foreclosed commercial real estate and only one residential real estate property written down during the three months ended March 31, 2023, so no range or weighted average is reported. |
Schedule of Difference Between the Aggregate Fair Value and the Aggregate Remaining Principal Balance | The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows: (dollars in thousands) Aggregate Fair Value Difference Contractual Principal March 31, 2023 Residential loans held for sale $ 10,584 $ 165 $ 10,419 December 31, 2022 Residential loans held for sale $ 11,926 $ 221 $ 11,705 The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value: (dollars in thousands) Other Interest Income Interest (Expense) Total Changes Three Months Ended March 31, 2023 Residential loans held for sale $ (53) $ — $ (3) $ (56) Three Months Ended March 31, 2022 Residential loans held for sale $ (1,343) $ — $ (3) $ (1,346) |
Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Carried at Fair Value | The carrying amounts and estimated exit price fair values of financial instruments not carried at fair value were as follows: Fair Value Measurements at March 31, 2023 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Cash, due from banks, money market, $ 1,113,935 $ 1,113,935 $ — $ — Investment securities held-to-maturity: U.S. government-sponsored entities and agencies 820,849 — 663,623 — Mortgage-backed securities - Agency 1,086,905 — 973,486 — State and political subdivisions 1,163,436 — 1,026,265 — Loans, net: Commercial 9,624,779 — — 9,477,212 Commercial real estate 12,772,044 — — 12,477,217 Residential real estate 6,548,459 — — 5,760,254 Consumer credit 2,578,381 — — 2,481,269 Accrued interest receivable 188,988 1,046 43,858 144,084 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 10,995,083 $ 10,995,083 $ — $ — Checking, NOW, savings, and money market 19,801,014 19,801,014 — — Time deposits 4,121,695 — 4,066,499 — Federal funds purchased and interbank borrowings 618,955 618,955 — — Securities sold under agreements to repurchase 393,018 393,018 — — FHLB advances 4,981,612 — 4,764,172 — Other borrowings 746,869 — 717,801 — Accrued interest payable 28,792 — 28,792 — Standby letters of credit 846 — — 846 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 3,649 Fair Value Measurements at December 31, 2022 Using (dollars in thousands) Carrying Value Quoted Prices in Significant Significant Financial Assets Cash, due from banks, money market, $ 728,412 $ 728,412 $ — $ — Investment securities held-to-maturity: U.S. government-sponsored entities and agencies 819,168 — 656,358 — Mortgage-backed securities - Agency 1,106,817 — 982,963 — State and political subdivisions 1,163,162 — 1,004,361 — Loans, net: Commercial 9,386,862 — — 9,066,583 Commercial real estate 12,317,825 — — 11,867,851 Residential real estate 6,438,525 — — 5,372,491 Consumer credit 2,676,758 — — 2,557,115 Accrued interest receivable 190,521 758 52,081 137,682 Financial Liabilities Deposits: Noninterest-bearing demand deposits $ 11,930,798 $ 11,930,798 $ — $ — Checking, NOW, savings, and money market 20,056,252 20,056,252 — — Time deposits 3,013,780 — 2,976,389 — Federal funds purchased and interbank borrowings 581,489 581,489 — — Securities sold under agreements to repurchase 432,804 432,804 — — FHLB advances 3,829,018 — 3,739,780 — Other borrowings 743,003 — 703,156 — Accrued interest payable 19,547 — 19,547 — Standby letters of credit 755 — — 755 Off-Balance Sheet Financial Instruments Commitments to extend credit $ — $ — $ — $ 3,666 |
Acquisition and Divestiture A_2
Acquisition and Divestiture Activity (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 18, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | |||
Deposits, health savings accounts | $ 382 | ||
Gain on sale of health savings accounts business | $ 90.7 | ||
First Midwest | |||
Business Acquisition [Line Items] | |||
Transaction costs, expensed | $ 14.6 | $ 41.3 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 146,600 | $ (27,586) |
Preferred dividends | (4,034) | (2,017) |
Net income (loss) applicable to common shareholders | $ 142,566 | $ (29,603) |
Weighted average common shares outstanding: | ||
Weighted average common shares outstanding (basic) (in shares) | 291,088 | 227,002 |
Effect of dilutive securities: | ||
Restricted stock (in shares) | 1,666 | 0 |
Stock appreciation rights (in shares) | 2 | 0 |
Weighted average diluted shares outstanding (in shares) | 292,756 | 227,002 |
Basic Net Income (Loss) Per Common Share (in dollars per share) | $ 0.49 | $ (0.13) |
Diluted Net Income (Loss) Per Common Share (in dollars per share) | $ 0.49 | $ (0.13) |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Available-for-Sale Investment Securities Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale | ||
Total | $ 7,592,765 | $ 7,772,603 |
Unrealized Gains | 3,090 | 3,028 |
Unrealized Losses | (817,596) | (847,474) |
Basis adjustments | (91,193) | (154,445) |
Fair Value | 6,687,066 | 6,773,712 |
Held-to-Maturity | ||
Allowance for securities held-to-maturity | (150) | (150) |
Total held-to-maturity securities | 3,071,190 | 3,089,147 |
Unrealized Gains | 744 | 221 |
Unrealized Losses | (408,560) | (445,686) |
Basis adjustments | 0 | 0 |
Fair Value | 2,663,374 | 2,643,682 |
U.S. Treasury | ||
Available-for-Sale | ||
Total | 268,894 | 253,148 |
Unrealized Gains | 34 | 5 |
Unrealized Losses | (10,755) | (5,189) |
Basis adjustments | (36,301) | (47,037) |
Fair Value | 221,872 | 200,927 |
U.S. government-sponsored entities and agencies | ||
Available-for-Sale | ||
Total | 1,450,300 | 1,451,736 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (201,717) | (169,248) |
Basis adjustments | (54,892) | (107,408) |
Fair Value | 1,193,691 | 1,175,080 |
Held-to-Maturity | ||
Amortized Cost | 820,849 | 819,168 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (157,226) | (162,810) |
Basis adjustments | 0 | 0 |
Fair Value | 663,623 | 656,358 |
Mortgage-backed securities | ||
Available-for-Sale | ||
Total | 4,861,624 | 4,986,354 |
Unrealized Gains | 641 | 976 |
Unrealized Losses | (553,490) | (617,428) |
Basis adjustments | 0 | 0 |
Fair Value | 4,308,775 | 4,369,902 |
Held-to-Maturity | ||
Amortized Cost | 1,086,905 | 1,106,817 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (113,419) | (123,854) |
Basis adjustments | 0 | 0 |
Fair Value | 973,486 | 982,963 |
States and political subdivisions | ||
Available-for-Sale | ||
Total | 641,317 | 688,159 |
Unrealized Gains | 2,138 | 1,789 |
Unrealized Losses | (21,968) | (26,096) |
Basis adjustments | 0 | 0 |
Fair Value | 621,487 | 663,852 |
Held-to-Maturity | ||
Amortized Cost | 1,163,586 | 1,163,312 |
Unrealized Gains | 744 | 221 |
Unrealized Losses | (137,915) | (159,022) |
Basis adjustments | 0 | 0 |
Fair Value | 1,026,415 | 1,004,511 |
Pooled trust preferred securities | ||
Available-for-Sale | ||
Total | 13,787 | 13,783 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (2,938) | (2,972) |
Basis adjustments | 0 | 0 |
Fair Value | 10,849 | 10,811 |
Other securities | ||
Available-for-Sale | ||
Total | 356,843 | 379,423 |
Unrealized Gains | 277 | 258 |
Unrealized Losses | (26,728) | (26,541) |
Basis adjustments | 0 | 0 |
Fair Value | $ 330,392 | $ 353,140 |
Investment Securities - Schedul
Investment Securities - Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-sale Investment Securities and Other Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Proceeds from Sale, Maturity and Collection of Investments [Abstract] | ||
Proceeds | $ 57,955 | $ 50,113 |
Realized gains | 909 | 463 |
Realized losses | $ (6,125) | $ (121) |
Investment Securities - Expecte
Investment Securities - Expected Maturities of Investment Securities Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-sale, Amortized Cost | ||
Within one year | $ 141,160 | |
One to five years | 1,751,081 | |
Five to ten years | 4,031,392 | |
Beyond ten years | 1,669,132 | |
Total | 7,592,765 | $ 7,772,603 |
Available-for-sale, Fair Value | ||
Within one year | 138,855 | |
One to five years | 1,635,833 | |
Five to ten years | 3,556,971 | |
Beyond ten years | 1,355,407 | |
Total | $ 6,687,066 | 6,773,712 |
Available-for-sale, Weighted Average Yield | ||
Within one year | 3.10% | |
One to five years | 2.79% | |
Five to ten years | 2.34% | |
Beyond ten years | 2.41% | |
Total | 2.47% | |
Held-to-Maturity, Amortized Cost | ||
One to five years | $ 162,300 | |
Five to ten years | 928,090 | |
Beyond ten years | 1,980,800 | |
Total held-to-maturity securities | 3,071,190 | 3,089,147 |
Held-to-Maturity, Fair Value | ||
One to five years | 141,113 | |
Five to ten years | 838,844 | |
Beyond ten years | 1,683,417 | |
Total | $ 2,663,374 | $ 2,643,682 |
Held-to-Maturity, Weighted Average Yield | ||
One to five years | 2.74% | |
Five to ten years | 2.67% | |
Beyond ten years | 2.73% | |
Total | 2.71% |
Investment Securities - Availab
Investment Securities - Available-for-Sale and Held-to-Maturity Investment Securities with Unrealized Losses by Aggregated Major Security Type and Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale, less than 12 months, fair value | $ 1,032,998 | $ 4,465,728 |
Available-for-sale, less than 12 months, unrealized losses | (32,062) | (480,166) |
Available-for-sale, 12 months or longer, fair value | 5,319,655 | 1,992,246 |
Available-for-sale, 12 months or longer, unrealized losses | (785,534) | (367,308) |
Available-for-sale, fair value | 6,352,653 | 6,457,974 |
Available-for-sale, unrealized losses | (817,596) | (847,474) |
U.S. Treasury | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 23,229 | 130,967 |
Available-for-sale, less than 12 months, unrealized losses | (106) | (3,264) |
Available-for-sale, 12 months or longer, fair value | 190,653 | 66,992 |
Available-for-sale, 12 months or longer, unrealized losses | (10,649) | (1,925) |
Available-for-sale, fair value | 213,882 | 197,959 |
Available-for-sale, unrealized losses | (10,755) | (5,189) |
U.S. government-sponsored entities and agencies | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 96,117 | 454,854 |
Available-for-sale, less than 12 months, unrealized losses | (2,554) | (75,795) |
Available-for-sale, 12 months or longer, fair value | 1,097,574 | 720,226 |
Available-for-sale, 12 months or longer, unrealized losses | (199,163) | (93,453) |
Available-for-sale, fair value | 1,193,691 | 1,175,080 |
Available-for-sale, unrealized losses | (201,717) | (169,248) |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 758,680 | 3,207,319 |
Available-for-sale, less than 12 months, unrealized losses | (26,422) | (358,507) |
Available-for-sale, 12 months or longer, fair value | 3,513,804 | 1,116,205 |
Available-for-sale, 12 months or longer, unrealized losses | (527,068) | (258,921) |
Available-for-sale, fair value | 4,272,484 | 4,323,524 |
Available-for-sale, unrealized losses | (553,490) | (617,428) |
States and political subdivisions | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 112,958 | 414,813 |
Available-for-sale, less than 12 months, unrealized losses | (1,576) | (25,555) |
Available-for-sale, 12 months or longer, fair value | 233,172 | 2,703 |
Available-for-sale, 12 months or longer, unrealized losses | (20,392) | (541) |
Available-for-sale, fair value | 346,130 | 417,516 |
Available-for-sale, unrealized losses | (21,968) | (26,096) |
Pooled trust preferred securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 0 | 0 |
Available-for-sale, less than 12 months, unrealized losses | 0 | 0 |
Available-for-sale, 12 months or longer, fair value | 10,849 | 10,811 |
Available-for-sale, 12 months or longer, unrealized losses | (2,938) | (2,972) |
Available-for-sale, fair value | 10,849 | 10,811 |
Available-for-sale, unrealized losses | (2,938) | (2,972) |
Other securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 42,014 | 257,775 |
Available-for-sale, less than 12 months, unrealized losses | (1,404) | (17,045) |
Available-for-sale, 12 months or longer, fair value | 273,603 | 75,309 |
Available-for-sale, 12 months or longer, unrealized losses | (25,324) | (9,496) |
Available-for-sale, fair value | 315,617 | 333,084 |
Available-for-sale, unrealized losses | $ (26,728) | $ (26,541) |
Investment Securities - Held-to
Investment Securities - Held-to-Maturity with Unrecognized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 months | $ 377,088 | $ 1,560,831 |
12 months or longer | 2,231,704 | 1,052,753 |
Total | 2,608,792 | 2,613,584 |
Unrecognized Losses | ||
Less than 12 months | (28,016) | (280,316) |
12 months or longer | (380,544) | (165,370) |
Total | (408,560) | (445,686) |
U.S. government-sponsored entities and agencies | ||
Fair Value | ||
Less than 12 months | 82,080 | 354,293 |
12 months or longer | 581,543 | 302,066 |
Total | 663,623 | 656,359 |
Unrecognized Losses | ||
Less than 12 months | (7,003) | (110,523) |
12 months or longer | (150,223) | (52,287) |
Total | (157,226) | (162,810) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 254,788 | 367,849 |
12 months or longer | 718,698 | 615,114 |
Total | 973,486 | 982,963 |
Unrecognized Losses | ||
Less than 12 months | (18,775) | (42,438) |
12 months or longer | (94,644) | (81,416) |
Total | (113,419) | (123,854) |
States and political subdivisions | ||
Fair Value | ||
Less than 12 months | 40,220 | 838,689 |
12 months or longer | 931,463 | 135,573 |
Total | 971,683 | 974,262 |
Unrecognized Losses | ||
Less than 12 months | (2,238) | (127,355) |
12 months or longer | (135,677) | (31,667) |
Total | $ (137,915) | $ (159,022) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) security instrument | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Summary of Investment Holdings [Line Items] | |||
Transferred from available-for-sale to held-for-maturity | $ 143,000,000 | ||
Allowance for credit losses for available-for-sale debt securities | 0 | $ 0 | |
Allowance for securities held-to-maturity | (150,000) | (150,000) | |
Accrued interest receivable | $ 39,100,000 | 50,900,000 | |
Number of securities in security portfolio | security | 3,093 | ||
Number of securities in unrealized loss position | security | 2,688 | ||
Fair Value | $ 6,687,066,000 | 6,773,712,000 | |
Unrealized losses | 817,596,000 | 847,474,000 | |
Equity securities, at fair value | 72,158,000 | 52,507,000 | |
Losses on equity securities | (800,000) | $ (1,900,000) | |
Impairments on equity securities without readily determinable fair value | 0 | $ 0 | |
Other Assets | |||
Summary of Investment Holdings [Line Items] | |||
Equity securities without readily determinable fair value | 395,900,000 | 396,800,000 | |
Other Assets | Partnership Interest | |||
Summary of Investment Holdings [Line Items] | |||
Equity securities without readily determinable fair value | 243,400,000 | ||
Other Assets | Initiatives in Low-to-Moderate Income Neighborhoods | |||
Summary of Investment Holdings [Line Items] | |||
Equity securities without readily determinable fair value | $ 152,500,000 | ||
Pooled trust preferred securities | |||
Summary of Investment Holdings [Line Items] | |||
Number of instruments held | instrument | 2 | ||
Fair Value | $ 10,849,000 | 10,811,000 | |
Unrealized losses | $ 2,938,000 | $ 2,972,000 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Additional Information (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 USD ($) portfolio segment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Number of loan portfolios | portfolio | 4 | |||
Number of loan segments | segment | 7 | |||
Accrued interest receivable on loans | $ 144,100 | $ 137,700 | ||
Provision for loan losses | 0 | $ 78,531 | ||
Allowance for credit losses | $ 298,711 | 280,507 | 303,671 | $ 107,341 |
Loan placed on nonaccrual when past due, number of days | 90 days | |||
Loan participations | $ 2,600,000 | |||
Loan participations sold | 1,200,000 | |||
Loan participations retained | 1,400,000 | |||
Unfunded commitments on TDRs | $ 0 | |||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Percentage of risk-based capital | 234% | |||
Regulatory guideline limit | 300% | |||
Provision for loan losses | $ 0 | 42,601 | ||
Allowance for credit losses | $ 135,348 | $ 140,490 | $ 138,244 | $ 64,004 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Schedule of Composition of Loans and Impact of Adoption (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | $ 31,822,374 | $ 31,123,641 | ||
Allowance for credit losses on loans | (298,711) | (303,671) | $ (280,507) | $ (107,341) |
Net loans | 31,523,663 | 30,819,970 | ||
Portfolio Segment Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 0 | 0 | ||
After Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 31,822,374 | 31,123,641 | ||
Allowance for credit losses on loans | (298,711) | (303,671) | ||
Net loans | 31,523,663 | 30,819,970 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 9,751,875 | 9,508,904 | ||
Allowance for credit losses on loans | (125,768) | (120,612) | (99,471) | (27,232) |
Commercial | Portfolio Segment Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | (213,187) | (210,280) | ||
Commercial | After Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 9,538,688 | 9,298,624 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 12,908,380 | 12,457,070 | ||
Allowance for credit losses on loans | (135,348) | (138,244) | (140,490) | (64,004) |
Commercial real estate | Portfolio Segment Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | (160,041) | (158,322) | ||
Commercial real estate | After Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 12,748,339 | 12,298,748 | ||
BBCC | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses on loans | (2,316) | (2,431) | (2,069) | (2,458) |
BBCC | Portfolio Segment Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 373,228 | 368,602 | ||
BBCC | After Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 373,228 | 368,602 | ||
Residential real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 6,568,666 | 6,460,441 | ||
Allowance for credit losses on loans | (20,207) | (21,916) | (17,252) | (9,347) |
Residential real estate | Portfolio Segment Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 0 | 0 | ||
Residential real estate | After Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 6,568,666 | 6,460,441 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 2,593,453 | 2,697,226 | ||
Consumer | Portfolio Segment Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | (2,593,453) | (2,697,226) | ||
Indirect | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 1,003,287 | 1,034,257 | ||
Allowance for credit losses on loans | (1,434) | (1,532) | (1,648) | (1,743) |
Indirect | Portfolio Segment Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 1,003,287 | 1,034,257 | ||
Indirect | After Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 1,003,287 | 1,034,257 | ||
Direct | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 580,726 | 629,186 | ||
Allowance for credit losses on loans | (6,766) | (12,116) | (14,450) | (528) |
Direct | Portfolio Segment Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 580,726 | 629,186 | ||
Direct | After Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 580,726 | 629,186 | ||
Home equity | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 1,009,440 | 1,033,783 | ||
Allowance for credit losses on loans | (6,872) | (6,820) | $ (5,127) | $ (2,029) |
Home equity | Portfolio Segment Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 1,009,440 | 1,033,783 | ||
Home equity | After Reclassifications | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 1,009,440 | 1,033,783 | ||
Direct Finance Leases | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | $ 178,700 | $ 188,100 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Schedule of Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 303,671 | $ 107,341 |
Allowance established for acquired PCD loans | 0 | 78,531 |
Charge-offs | (18,180) | (4,664) |
Recoveries | 1,751 | 1,890 |
Provision for Loan Losses | 11,469 | 97,409 |
Balance at End of Period | 298,711 | 280,507 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 120,612 | 27,232 |
Allowance established for acquired PCD loans | 0 | 35,040 |
Charge-offs | (12,423) | (1,880) |
Recoveries | 283 | 325 |
Provision for Loan Losses | 17,296 | 38,754 |
Balance at End of Period | 125,768 | 99,471 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 138,244 | 64,004 |
Allowance established for acquired PCD loans | 0 | 42,601 |
Charge-offs | (1,189) | (507) |
Recoveries | 263 | 182 |
Provision for Loan Losses | (1,970) | 34,210 |
Balance at End of Period | 135,348 | 140,490 |
BBCC | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 2,431 | 2,458 |
Allowance established for acquired PCD loans | 0 | 0 |
Charge-offs | (28) | (28) |
Recoveries | 73 | 57 |
Provision for Loan Losses | (160) | (418) |
Balance at End of Period | 2,316 | 2,069 |
Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 21,916 | 9,347 |
Allowance established for acquired PCD loans | 0 | 136 |
Charge-offs | (23) | (185) |
Recoveries | 72 | 440 |
Provision for Loan Losses | (1,758) | 7,514 |
Balance at End of Period | 20,207 | 17,252 |
Indirect | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 1,532 | 1,743 |
Allowance established for acquired PCD loans | 0 | 0 |
Charge-offs | (1,197) | (483) |
Recoveries | 412 | 222 |
Provision for Loan Losses | 687 | 166 |
Balance at End of Period | 1,434 | 1,648 |
Direct | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 12,116 | 528 |
Allowance established for acquired PCD loans | 0 | 31 |
Charge-offs | (3,238) | (1,530) |
Recoveries | 581 | 582 |
Provision for Loan Losses | (2,693) | 14,839 |
Balance at End of Period | 6,766 | 14,450 |
Home equity | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 6,820 | 2,029 |
Allowance established for acquired PCD loans | 0 | 723 |
Charge-offs | (82) | (51) |
Recoveries | 67 | 82 |
Provision for Loan Losses | 67 | 2,344 |
Balance at End of Period | $ 6,872 | $ 5,127 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses on Unfunded Loan Commitments (Details) - Unfunded Loan Commitment - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Balance at beginning of period | $ 32,188 | $ 10,879 |
Provision for credit losses on unfunded commitments acquired during the period | 0 | 11,013 |
Provision for unfunded loan commitments | 1,968 | 154 |
Balance at end of period | $ 34,156 | $ 22,046 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Schedule of Risk Rating and Payment Performance (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | $ 31,822,374 | $ 31,123,641 | |
Total | 18,180 | $ 4,664 | |
Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 31,822,374 | 31,123,641 | |
Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 9,751,875 | 9,508,904 | |
Total | 12,423 | 1,880 | |
Commercial | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 703,968 | 2,473,145 | |
2022 | 2,375,171 | 1,851,604 | |
2021 | 1,632,967 | 880,723 | |
2020 | 786,105 | 802,628 | |
2019 | 684,011 | 382,993 | |
Prior | 714,265 | 423,484 | |
Revolving | 2,145,212 | 2,118,835 | |
Revolving to Term | 496,989 | 365,212 | |
Total loans | 9,538,688 | 9,298,624 | |
2023 | 0 | ||
2022 | 0 | ||
2021 | 5,230 | ||
2020 | 0 | ||
2019 | 6,789 | ||
Prior | 239 | ||
Revolving | 165 | ||
Revolving to Term | 0 | ||
Total | 12,423 | ||
Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 12,908,380 | 12,457,070 | |
Total | 1,189 | 507 | |
Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 609,760 | 3,193,582 | |
2022 | 3,279,227 | 2,928,035 | |
2021 | 2,941,487 | 2,050,913 | |
2020 | 1,999,624 | 1,384,735 | |
2019 | 1,345,140 | 823,735 | |
Prior | 1,790,377 | 1,139,730 | |
Revolving | 74,982 | 57,818 | |
Revolving to Term | 707,742 | 720,200 | |
Total loans | 12,748,339 | 12,298,748 | |
2023 | 0 | ||
2022 | 54 | ||
2021 | 735 | ||
2020 | 400 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving | 0 | ||
Revolving to Term | 0 | ||
Total | 1,189 | ||
BBCC | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 28 | 28 | |
BBCC | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 25,254 | 92,738 | |
2022 | 89,788 | 64,973 | |
2021 | 60,449 | 53,229 | |
2020 | 49,570 | 38,138 | |
2019 | 36,837 | 24,464 | |
Prior | 28,036 | 11,690 | |
Revolving | 62,496 | 61,565 | |
Revolving to Term | 20,798 | 21,805 | |
Total loans | 373,228 | 368,602 | |
2023 | 0 | ||
2022 | 0 | ||
2021 | 28 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving | 0 | ||
Revolving to Term | 0 | ||
Total | 28 | ||
Residential real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 92,032 | 1,327,227 | |
2022 | 1,421,008 | 1,946,321 | |
2021 | 1,978,182 | 1,826,623 | |
2020 | 1,751,769 | 479,402 | |
2019 | 475,343 | 138,086 | |
Prior | 850,242 | 742,687 | |
Revolving | 0 | 7 | |
Revolving to Term | 90 | 88 | |
Total loans | 6,568,666 | 6,460,441 | |
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 23 | ||
Revolving | 0 | ||
Revolving to Term | 0 | ||
Total | 23 | 185 | |
Residential real estate | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 6,568,666 | 6,460,441 | |
Residential real estate | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 92,032 | 1,327,168 | |
2022 | 1,419,736 | 1,945,792 | |
2021 | 1,975,809 | 1,825,762 | |
2020 | 1,749,348 | 478,529 | |
2019 | 472,547 | 136,260 | |
Prior | 823,622 | 712,175 | |
Revolving | 0 | 7 | |
Revolving to Term | 84 | 88 | |
Total loans | 6,533,178 | 6,425,781 | |
Residential real estate | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 59 | |
2022 | 1,272 | 529 | |
2021 | 2,373 | 861 | |
2020 | 2,421 | 873 | |
2019 | 2,796 | 1,826 | |
Prior | 26,620 | 30,512 | |
Revolving | 0 | 0 | |
Revolving to Term | 6 | 0 | |
Total loans | 35,488 | 34,660 | |
Indirect | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 74,980 | 504,758 | |
2022 | 466,310 | 250,481 | |
2021 | 226,663 | 144,910 | |
2020 | 127,415 | 82,835 | |
2019 | 69,614 | 31,788 | |
Prior | 38,247 | 19,423 | |
Revolving | 0 | 0 | |
Revolving to Term | 58 | 62 | |
Total loans | 1,003,287 | 1,034,257 | |
2023 | 0 | ||
2022 | 514 | ||
2021 | 430 | ||
2020 | 93 | ||
2019 | 111 | ||
Prior | 49 | ||
Revolving | 0 | ||
Revolving to Term | 0 | ||
Total | 1,197 | 483 | |
Indirect | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,003,287 | 1,034,257 | |
Indirect | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 74,980 | 504,410 | |
2022 | 465,805 | 249,407 | |
2021 | 225,377 | 144,265 | |
2020 | 126,788 | 82,304 | |
2019 | 69,147 | 31,484 | |
Prior | 37,704 | 19,095 | |
Revolving | 0 | 0 | |
Revolving to Term | 58 | 62 | |
Total loans | 999,859 | 1,031,027 | |
Indirect | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 348 | |
2022 | 505 | 1,074 | |
2021 | 1,286 | 645 | |
2020 | 627 | 531 | |
2019 | 467 | 304 | |
Prior | 543 | 328 | |
Revolving | 0 | 0 | |
Revolving to Term | 0 | 0 | |
Total loans | 3,428 | 3,230 | |
Direct | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 27,097 | 133,049 | |
2022 | 121,926 | 164,977 | |
2021 | 142,300 | 78,020 | |
2020 | 68,987 | 58,124 | |
2019 | 49,617 | 45,626 | |
Prior | 94,148 | 60,738 | |
Revolving | 74,527 | 87,627 | |
Revolving to Term | 2,124 | 1,025 | |
Total loans | 580,726 | 629,186 | |
2023 | 0 | ||
2022 | 471 | ||
2021 | 794 | ||
2020 | 286 | ||
2019 | 327 | ||
Prior | 195 | ||
Revolving | 1,165 | ||
Revolving to Term | 0 | ||
Total | 3,238 | 1,530 | |
Direct | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 580,726 | 629,186 | |
Direct | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 27,097 | 132,934 | |
2022 | 121,525 | 164,126 | |
2021 | 141,746 | 77,406 | |
2020 | 68,407 | 57,919 | |
2019 | 48,981 | 45,299 | |
Prior | 92,285 | 59,212 | |
Revolving | 74,520 | 87,622 | |
Revolving to Term | 2,118 | 671 | |
Total loans | 576,679 | 625,189 | |
Direct | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 115 | |
2022 | 401 | 851 | |
2021 | 554 | 614 | |
2020 | 580 | 205 | |
2019 | 636 | 327 | |
Prior | 1,863 | 1,526 | |
Revolving | 7 | 5 | |
Revolving to Term | 6 | 354 | |
Total loans | 4,047 | 3,997 | |
Home equity | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 1,085 | |
2022 | 1,435 | 1,056 | |
2021 | 1,009 | 2,015 | |
2020 | 1,543 | 1,943 | |
2019 | 1,998 | 1,777 | |
Prior | 13,408 | 15,954 | |
Revolving | 964,835 | 991,699 | |
Revolving to Term | 25,212 | 18,254 | |
Total loans | 1,009,440 | 1,033,783 | |
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 82 | ||
Revolving | 0 | ||
Revolving to Term | 0 | ||
Total | 82 | $ 51 | |
Home equity | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,009,440 | 1,033,783 | |
Home equity | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 919 | |
2022 | 1,273 | 896 | |
2021 | 876 | 1,849 | |
2020 | 1,382 | 1,497 | |
2019 | 1,068 | 983 | |
Prior | 7,938 | 11,646 | |
Revolving | 962,911 | 990,001 | |
Revolving to Term | 20,456 | 14,792 | |
Total loans | 995,904 | 1,022,583 | |
Home equity | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 166 | |
2022 | 162 | 160 | |
2021 | 133 | 166 | |
2020 | 161 | 446 | |
2019 | 930 | 794 | |
Prior | 5,470 | 4,308 | |
Revolving | 1,924 | 1,698 | |
Revolving to Term | 4,756 | 3,462 | |
Total loans | 13,536 | 11,200 | |
Pass | Commercial | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 673,613 | 2,388,618 | |
2022 | 2,299,378 | 1,754,364 | |
2021 | 1,517,883 | 796,340 | |
2020 | 712,011 | 738,208 | |
2019 | 629,196 | 362,986 | |
Prior | 694,970 | 388,617 | |
Revolving | 2,041,109 | 1,988,763 | |
Revolving to Term | 433,838 | 329,119 | |
Total loans | 9,001,998 | 8,747,015 | |
Pass | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 600,890 | 3,066,960 | |
2022 | 3,129,239 | 2,828,758 | |
2021 | 2,833,471 | 1,989,000 | |
2020 | 1,942,417 | 1,219,025 | |
2019 | 1,171,555 | 675,572 | |
Prior | 1,560,183 | 1,018,719 | |
Revolving | 74,982 | 57,818 | |
Revolving to Term | 643,987 | 689,553 | |
Total loans | 11,956,724 | 11,545,405 | |
Pass | BBCC | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 25,194 | 90,341 | |
2022 | 86,881 | 64,161 | |
2021 | 59,220 | 52,304 | |
2020 | 48,866 | 36,868 | |
2019 | 35,291 | 23,618 | |
Prior | 27,217 | 11,333 | |
Revolving | 59,846 | 60,016 | |
Revolving to Term | 17,644 | 18,881 | |
Total loans | 360,159 | 357,522 | |
Criticized | Commercial | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 24,476 | 40,856 | |
2022 | 38,369 | 30,661 | |
2021 | 26,289 | 63,557 | |
2020 | 52,907 | 33,490 | |
2019 | 31,378 | 9,195 | |
Prior | 6,538 | 5,312 | |
Revolving | 56,784 | 61,036 | |
Revolving to Term | 10,792 | 4,327 | |
Total loans | 247,533 | 248,434 | |
Criticized | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 217 | 75,306 | |
2022 | 56,997 | 34,422 | |
2021 | 40,407 | 22,569 | |
2020 | 22,202 | 82,637 | |
2019 | 70,931 | 86,504 | |
Prior | 105,130 | 56,864 | |
Revolving | 0 | 0 | |
Revolving to Term | 42,466 | 23,282 | |
Total loans | 338,350 | 381,584 | |
Criticized | BBCC | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 50 | 1,504 | |
2022 | 1,843 | 525 | |
2021 | 479 | 368 | |
2020 | 265 | 692 | |
2019 | 1,023 | 353 | |
Prior | 57 | 0 | |
Revolving | 2,047 | 1,006 | |
Revolving to Term | 1,660 | 1,603 | |
Total loans | 7,424 | 6,051 | |
Substandard | Commercial | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 5,879 | 37,223 | |
2022 | 16,596 | 47,522 | |
2021 | 75,646 | 16,540 | |
2020 | 15,505 | 22,925 | |
2019 | 21,896 | 4,844 | |
Prior | 3,401 | 21,204 | |
Revolving | 40,883 | 67,402 | |
Revolving to Term | 47,187 | 25,143 | |
Total loans | 226,993 | 242,803 | |
Substandard | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 8,653 | 46,231 | |
2022 | 89,716 | 16,928 | |
2021 | 22,101 | 24,319 | |
2020 | 20,207 | 78,468 | |
2019 | 98,147 | 57,824 | |
Prior | 82,928 | 21,591 | |
Revolving | 0 | 0 | |
Revolving to Term | 18,138 | 4,108 | |
Total loans | 339,890 | 249,469 | |
Substandard | BBCC | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 10 | 811 | |
2022 | 986 | 143 | |
2021 | 641 | 0 | |
2020 | 33 | 421 | |
2019 | 415 | 0 | |
Prior | 0 | 0 | |
Revolving | 603 | 543 | |
Revolving to Term | 658 | 682 | |
Total loans | 3,346 | 2,600 | |
Nonaccrual | Commercial | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 3,627 | |
2022 | 0 | 1,453 | |
2021 | 1,462 | 566 | |
2020 | 2,049 | 0 | |
2019 | 1,468 | 0 | |
Prior | 0 | 0 | |
Revolving | 6,436 | 1,634 | |
Revolving to Term | 5,172 | 6,623 | |
Total loans | 16,587 | 13,903 | |
Nonaccrual | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 3,151 | |
2022 | 648 | 9,541 | |
2021 | 9,785 | 5,014 | |
2020 | 4,879 | 0 | |
2019 | 0 | 2,312 | |
Prior | 21,708 | 22,155 | |
Revolving | 0 | 0 | |
Revolving to Term | 3,151 | 3,257 | |
Total loans | 40,171 | 45,430 | |
Nonaccrual | BBCC | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 42 | |
2022 | 39 | 37 | |
2021 | 36 | 118 | |
2020 | 130 | 0 | |
2019 | 0 | 429 | |
Prior | 626 | 284 | |
Revolving | 0 | 0 | |
Revolving to Term | 836 | 639 | |
Total loans | 1,667 | 1,549 | |
Doubtful | Commercial | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 2,821 | |
2022 | 20,828 | 17,604 | |
2021 | 11,687 | 3,720 | |
2020 | 3,633 | 8,005 | |
2019 | 73 | 5,968 | |
Prior | 9,356 | 8,351 | |
Revolving | 0 | 0 | |
Revolving to Term | 0 | 0 | |
Total loans | 45,577 | 46,469 | |
Doubtful | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 1,934 | |
2022 | 2,627 | 38,386 | |
2021 | 35,723 | 10,011 | |
2020 | 9,919 | 4,605 | |
2019 | 4,507 | 1,523 | |
Prior | 20,428 | 20,401 | |
Revolving | 0 | 0 | |
Revolving to Term | 0 | 0 | |
Total loans | 73,204 | 76,860 | |
Doubtful | BBCC | Segment Portfolio Reclassification, Adjusted Balance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 40 | |
2022 | 39 | 107 | |
2021 | 73 | 439 | |
2020 | 276 | 157 | |
2019 | 108 | 64 | |
Prior | 136 | 73 | |
Revolving | 0 | 0 | |
Revolving to Term | 0 | 0 | |
Total loans | $ 632 | $ 880 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Schedule of Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 31,822,374 | $ 31,123,641 |
Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 31,822,374 | 31,123,641 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,751,875 | 9,508,904 |
Commercial | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,538,688 | 9,298,624 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12,908,380 | 12,457,070 |
Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12,748,339 | 12,298,748 |
BBCC | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 373,228 | 368,602 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,568,666 | 6,460,441 |
Residential real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,568,666 | 6,460,441 |
Indirect | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,003,287 | 1,034,257 |
Indirect | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,003,287 | 1,034,257 |
Direct | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 580,726 | 629,186 |
Direct | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 580,726 | 629,186 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,009,440 | 1,033,783 |
Home equity | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,009,440 | 1,033,783 |
Total Past Due | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 119,996 | 186,223 |
Total Past Due | Commercial | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 21,193 | 30,028 |
Total Past Due | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 41,563 | 81,444 |
Total Past Due | BBCC | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,600 | 1,698 |
Total Past Due | Residential real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 29,530 | 40,967 |
Total Past Due | Indirect | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 5,881 | 9,378 |
Total Past Due | Direct | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,225 | 9,450 |
Total Past Due | Home equity | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 13,004 | 13,258 |
30-59 Days Past Due | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 58,491 | 104,589 |
30-59 Days Past Due | Commercial | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 8,463 | 14,147 |
30-59 Days Past Due | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 14,648 | 47,240 |
30-59 Days Past Due | BBCC | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,618 | 730 |
30-59 Days Past Due | Residential real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 19,495 | 24,181 |
30-59 Days Past Due | Indirect | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 4,229 | 6,302 |
30-59 Days Past Due | Direct | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 3,759 | 5,404 |
30-59 Days Past Due | Home equity | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,279 | 6,585 |
60-89 Days Past Due | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 8,534 | 17,713 |
60-89 Days Past Due | Commercial | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 3,397 | 4,801 |
60-89 Days Past Due | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 256 | 1,312 |
60-89 Days Past Due | BBCC | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 552 | 365 |
60-89 Days Past Due | Residential real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 310 | 5,033 |
60-89 Days Past Due | Indirect | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,141 | 2,118 |
60-89 Days Past Due | Direct | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 955 | 2,118 |
60-89 Days Past Due | Home equity | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,923 | 1,966 |
Past Due 90 Days or More | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 52,971 | 63,921 |
Past Due 90 Days or More | Commercial | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,333 | 11,080 |
Past Due 90 Days or More | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 26,659 | 32,892 |
Past Due 90 Days or More | BBCC | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 430 | 603 |
Past Due 90 Days or More | Residential real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,725 | 11,753 |
Past Due 90 Days or More | Indirect | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 511 | 958 |
Past Due 90 Days or More | Direct | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,511 | 1,928 |
Past Due 90 Days or More | Home equity | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 4,802 | 4,707 |
Current | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 31,702,378 | 30,937,418 |
Current | Commercial | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,517,495 | 9,268,596 |
Current | Commercial real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12,706,776 | 12,217,304 |
Current | BBCC | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 370,628 | 366,904 |
Current | Residential real estate | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,539,136 | 6,419,474 |
Current | Indirect | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 997,406 | 1,024,879 |
Current | Direct | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 574,501 | 619,736 |
Current | Home equity | Segment Portfolio Reclassification, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 996,436 | $ 1,020,525 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | $ 234,337 | $ 238,178 |
Nonaccrual With No Related Allowance | 51,190 | 41,318 |
Past Due 90 Days or More and Accruing | 1,231 | 2,650 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 62,164 | 60,372 |
Nonaccrual With No Related Allowance | 14,695 | 7,873 |
Past Due 90 Days or More and Accruing | 0 | 152 |
Commercial real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 113,375 | 122,290 |
Nonaccrual With No Related Allowance | 36,495 | 33,445 |
Past Due 90 Days or More and Accruing | 0 | 0 |
BBCC | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 2,299 | 2,429 |
Nonaccrual With No Related Allowance | 0 | 0 |
Past Due 90 Days or More and Accruing | 0 | 0 |
Residential real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 35,488 | 34,660 |
Nonaccrual With No Related Allowance | 0 | 0 |
Past Due 90 Days or More and Accruing | 1,070 | 1,808 |
Indirect | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 3,428 | 3,230 |
Nonaccrual With No Related Allowance | 0 | 0 |
Past Due 90 Days or More and Accruing | 0 | 28 |
Direct | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 4,047 | 3,997 |
Nonaccrual With No Related Allowance | 0 | 0 |
Past Due 90 Days or More and Accruing | 119 | 133 |
Home equity | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Amortized Cost | 13,536 | 11,200 |
Nonaccrual With No Related Allowance | 0 | 0 |
Past Due 90 Days or More and Accruing | $ 42 | $ 529 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Schedule of Types of Collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 31,822,374 | $ 31,123,641 |
Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 168,197 | 168,623 |
Blanket Lien | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 42,140 | 43,245 |
Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 3,880 | 4,408 |
Auto | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 4,796 | 5,085 |
Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 6,492 | 7,414 |
Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 9,751,875 | 9,508,904 |
Commercial | Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 13,899 | 8,962 |
Commercial | Blanket Lien | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 41,674 | 42,754 |
Commercial | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 2,219 | 2,690 |
Commercial | Auto | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 1,103 | 1,611 |
Commercial | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 124 | 980 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 12,908,380 | 12,457,070 |
Commercial real estate | Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 100,490 | 108,871 |
Commercial real estate | Blanket Lien | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 1,661 | 1,718 |
Commercial real estate | Auto | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 6,334 | 6,411 |
BBCC | Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 1,823 | 1,939 |
BBCC | Blanket Lien | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 464 | 478 |
BBCC | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
BBCC | Auto | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 12 | 12 |
BBCC | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Residential real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 6,568,666 | 6,460,441 |
Residential real estate | Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 35,488 | 34,660 |
Residential real estate | Blanket Lien | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Residential real estate | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Residential real estate | Auto | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Residential real estate | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Indirect | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 1,003,287 | 1,034,257 |
Indirect | Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Indirect | Blanket Lien | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Indirect | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Indirect | Auto | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 3,428 | 3,230 |
Indirect | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Direct | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 580,726 | 629,186 |
Direct | Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 2,961 | 2,991 |
Direct | Blanket Lien | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 2 | 13 |
Direct | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Direct | Auto | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 253 | 232 |
Direct | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 34 | 23 |
Home equity | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 1,009,440 | 1,033,783 |
Home equity | Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 13,536 | 11,200 |
Home equity | Blanket Lien | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Home equity | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Home equity | Auto | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | |
Home equity | Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Schedule of Amortized Cost Basis of Loans with Modifications (Details) - Extended Maturity $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Term Extension | $ 27,268 |
Total Class of Loans | 0.10% |
Commercial | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Term Extension | $ 17,342 |
Total Class of Loans | 0.20% |
Commercial real estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Term Extension | $ 9,926 |
Total Class of Loans | 0.10% |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Schedule of Monitors the Performance of Loan Modifications to Borrowers Experiencing Financial Difficulty to Understand the Effectiveness of its Modification Efforts (Details) - Extended Maturity - Segment Portfolio Reclassification, Adjusted Balance $ in Thousands | Mar. 31, 2023 USD ($) |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | $ 27,268 |
30-59 Days Past Due | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 0 |
60-89 Days Past Due | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 2,637 |
Past Due 90 Days or More | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 0 |
Total Past Due | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 2,637 |
Current | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 24,631 |
Commercial | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 17,342 |
Commercial | 30-59 Days Past Due | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 0 |
Commercial | 60-89 Days Past Due | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 2,637 |
Commercial | Past Due 90 Days or More | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 0 |
Commercial | Total Past Due | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 2,637 |
Commercial | Current | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 14,705 |
Commercial real estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 9,926 |
Commercial real estate | 30-59 Days Past Due | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 0 |
Commercial real estate | 60-89 Days Past Due | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 0 |
Commercial real estate | Past Due 90 Days or More | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 0 |
Commercial real estate | Total Past Due | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 0 |
Commercial real estate | Current | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | $ 9,926 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Schedule of the nature of the Loan Modifications to Borrowers Experiencing Financial Difficulty (Details) - Extended Maturity | 3 Months Ended |
Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Weighted- Average Term Extension (in months) | 6 months |
Commercial | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Weighted- Average Term Extension (in months) | 7 months 6 days |
Commercial real estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Weighted- Average Term Extension (in months) | 3 months 18 days |
Leases - Additional Information
Leases - Additional Information (Details) | Mar. 31, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 5 years |
Finance lease term | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 20 years |
Finance lease term | 20 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Finance lease cost: | ||
Total | $ 9,438 | $ 5,762 |
Occupancy/Equipment expense | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 8,638 | 5,108 |
Occupancy expense | ||
Finance lease cost: | ||
Amortization of right-of-use assets | 691 | 675 |
Sub-lease income | (60) | (128) |
Interest expense | ||
Finance lease cost: | ||
Interest on lease liabilities | $ 169 | $ 107 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating lease right-of-use assets | $ 183,687 | $ 189,714 |
Operating lease liabilities | 205,249 | 211,964 |
Finance Leases | ||
Premises and equipment, net | 21,173 | 10,799 |
Other borrowings | $ 21,983 | $ 13,469 |
Finance lease, right-of-use asset, statement of financial position [extensible enumeration] | Premises and equipment, net | Premises and equipment, net |
Finance lease, liability, statement of financial position [extensible enumeration] | Other borrowings | Other borrowings |
Weighted-Average Remaining Lease Term (in Years) | ||
Operating leases | 8 years 10 months 24 days | 9 years 1 month 6 days |
Finance leases | 10 years 7 months 6 days | 7 years 2 months 12 days |
Weighted-Average Discount Rate | ||
Operating leases | 2.90% | 2.88% |
Finance leases | 3.82% | 3.30% |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 7,932 | $ 5,341 |
Operating cash flows from finance leases | 169 | 107 |
Financing cash flows from finance leases | $ 628 | $ 616 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Lease Liability by Lease Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2023 | $ 22,933 | |
2024 | 29,819 | |
2025 | 28,513 | |
2026 | 27,600 | |
2027 | 26,668 | |
Thereafter | 98,709 | |
Total undiscounted lease payments | 234,242 | |
Amounts representing interest | (28,993) | |
Lease liability | 205,249 | $ 211,964 |
Finance Leases | ||
2023 | 2,432 | |
2024 | 3,278 | |
2025 | 3,301 | |
2026 | 2,075 | |
2027 | 2,078 | |
Thereafter | 13,964 | |
Total undiscounted lease payments | 27,128 | |
Amounts representing interest | (5,145) | |
Lease liability | $ 21,983 | $ 13,469 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 1,998,716 | $ 1,036,994 |
Acquisitions and adjustments | 0 | 960,163 |
Balance at end of period | $ 1,998,716 | $ 1,997,157 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Aug. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | ||
Impairment charges | $ 0 | $ 0 | |
Amortization of intangibles | $ 6,186,000 | $ 4,811,000 | |
Minimum | Core Deposits and Other Intangible Assets | |||
Goodwill [Line Items] | |||
Estimated useful lives | 5 years | ||
Maximum | Core Deposits and Other Intangible Assets | |||
Goodwill [Line Items] | |||
Estimated useful lives | 15 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 226,885 | $ 226,885 |
Accumulated Amortization and Impairment | (106,666) | (100,480) |
Net Carrying Amount | 120,219 | 126,405 |
Core deposit | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 170,642 | 170,642 |
Accumulated Amortization and Impairment | (85,861) | (80,951) |
Net Carrying Amount | 84,781 | 89,691 |
Customer trust relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 56,243 | 56,243 |
Accumulated Amortization and Impairment | (20,805) | (19,529) |
Net Carrying Amount | $ 35,438 | $ 36,714 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future Years (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2023 remaining | $ 17,969 | |
2024 | 21,239 | |
2025 | 18,358 | |
2026 | 15,555 | |
2027 | 12,867 | |
Thereafter | 34,231 | |
Net Carrying Amount | $ 120,219 | $ 126,405 |
Qualified Affordable Housing _3
Qualified Affordable Housing Projects and Other Tax Credit Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Investment Holdings [Line Items] | |||
Investment | $ 152,516 | $ 156,755 | |
Unfunded commitment | 55,762 | 65,342 | |
Amortization expense | 4,224 | $ 2,769 | |
Tax expense (benefit) recognized | (5,031) | (3,276) | |
LIHTC | |||
Investment Holdings [Line Items] | |||
Investment, proportional amortization | 82,950 | 84,428 | |
Unfunded commitment, proportional amortization | 46,743 | 55,754 | |
Amortization expense | 1,463 | 1,253 | |
Tax expense (benefit) recognized | (1,908) | (1,650) | |
FHTC | |||
Investment Holdings [Line Items] | |||
Investment, equity | 18,892 | 19,316 | |
Unfunded commitment, equity | 9,019 | 9,588 | |
Amortization expense | 424 | 205 | |
Tax expense (benefit) recognized | (512) | (251) | |
NMTC | |||
Investment Holdings [Line Items] | |||
Investment, equity | 49,820 | 51,912 | |
Unfunded commitment, equity | 0 | 0 | |
Amortization expense | 2,091 | 1,101 | |
Tax expense (benefit) recognized | (2,611) | (1,375) | |
Renewable Energy | |||
Investment Holdings [Line Items] | |||
Investment, equity | 854 | 1,099 | |
Unfunded commitment, equity | 0 | $ 0 | |
Amortization expense | 246 | 210 | |
Tax expense (benefit) recognized | $ 0 | $ 0 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase - Schedule of Securities Sold under Agreements to Repurchase and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Securities Sold under Agreements to Repurchase [Abstract] | |||
Outstanding at period end | $ 393,018 | $ 509,275 | $ 432,804 |
Average amount outstanding during the period | 412,819 | 449,939 | |
Maximum amount outstanding at any month-end during the period | $ 430,537 | $ 509,275 | |
Weighted average interest rate during period | 0.77% | 0.09% | |
Weighted average interest rate at end of period | 0.88% | 0.08% | 1.31% |
Securities Sold Under Agreeme_4
Securities Sold Under Agreements to Repurchase - Schedule of Remaining Contractual Maturity of Secured Borrowings and Class of Collateral Pledged Under Repurchase Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | $ 393,018 | $ 432,804 | $ 509,275 |
U.S. Treasury and agency securities | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 393,018 | ||
Overnight and Continuous | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 393,018 | ||
Overnight and Continuous | U.S. Treasury and agency securities | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 393,018 | ||
Up to 30 Days | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
Up to 30 Days | U.S. Treasury and agency securities | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
30-90 Days | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
30-90 Days | U.S. Treasury and agency securities | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
Greater Than 90 days | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | 0 | ||
Greater Than 90 days | U.S. Treasury and agency securities | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Secured borrowings and class of collateral pledged under repurchase agreements | $ 0 |
Securities Sold Under Agreeme_5
Securities Sold Under Agreements to Repurchase - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Gross outstanding balance of repurchase agreements collateralized by securities percentage | 125% |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Summary of FHLB Advances (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances (fixed rates 0.00% to 5.11% and variable rates 4.57% to 5.24%) maturing April 2023 to September 2042 | $ 5,000,528 | $ 3,850,677 |
Fair value hedge basis adjustments and unamortized prepayment fees | (18,916) | (21,659) |
Federal Home Loan Bank advances | $ 4,981,612 | $ 3,829,018 |
Minimum | FHLB Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Fixed rate | 0% | |
Variable rate | 4.57% | |
Maximum | FHLB Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Fixed rate | 5.11% | |
Variable rate | 5.24% |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted-average rates of FHLB advances | 3.45% | 3.15% |
Modifications, unamortized prepayment fees | $ 18.7 | $ 20.2 |
FHLB Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Percentage of borrowings collateralized by investment securities and residential real estate loans | 148% |
Federal Home Loan Bank Advanc_5
Federal Home Loan Bank Advances - Summary of Contractual Maturities of FHLB Advances (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Banks [Abstract] | ||
Due in 2023 | $ 1,250,000 | |
Due in 2024 | 25,243 | |
Due in 2025 | 550,285 | |
Due in 2026 | 100,000 | |
Thereafter | 3,075,000 | |
Fair value hedge basis adjustments and unamortized prepayment fees | (18,916) | $ (21,659) |
Federal Home Loan Bank advances | $ 4,981,612 | $ 3,829,018 |
Other Borrowings - Summary of O
Other Borrowings - Summary of Other Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | |||
Lease liability | $ 21,983 | $ 13,469 | |
Other borrowings | 746,869 | 743,003 | |
Old National Bank | |||
Debt Instrument [Line Items] | |||
Other basis adjustments | 85,633 | 89,588 | |
Lease liability | 21,983 | 13,469 | |
Derivative collateralize position amount | 84,400 | 88,000 | |
Old National Bancorp | |||
Debt Instrument [Line Items] | |||
Other basis adjustments | $ 22,073 | 23,363 | |
Senior Unsecured Notes | Old National Bancorp | |||
Debt Instrument [Line Items] | |||
Fixed rate | 4.125% | 4.125% | |
Senior unsecured notes (fixed rate 4.125%) maturing August 2024 | $ 175,000 | 175,000 | $ 175,000 |
Unamortized debt issuance costs related to senior unsecured notes | $ (208) | (247) | |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Fixed rate | 5.875% | ||
Subordinated Debt | Old National Bank | |||
Debt Instrument [Line Items] | |||
Variable rate | 9.16% | ||
Subordinated debentures | $ 12,000 | 12,000 | |
Subordinated Debt | Old National Bancorp | |||
Debt Instrument [Line Items] | |||
Subordinated debentures | 150,000 | 150,000 | |
Junior Subordinated Debentures | Old National Bancorp | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures (variable rates of 6.27% to 8.41%) maturing July 2031 to September 2037 | 136,643 | 136,643 | |
Notes Payable to Banks | Old National Bank | |||
Debt Instrument [Line Items] | |||
Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%) maturing December 2046 to June 2060 | $ 143,745 | $ 143,187 | |
Minimum | Junior Subordinated Debentures | Old National Bancorp | |||
Debt Instrument [Line Items] | |||
Variable rate | 6.27% | ||
Minimum | Notes Payable to Banks | Old National Bank | |||
Debt Instrument [Line Items] | |||
Fixed rate | 1% | ||
Maximum | Junior Subordinated Debentures | Old National Bancorp | |||
Debt Instrument [Line Items] | |||
Variable rate | 8.41% | ||
Maximum | Notes Payable to Banks | Old National Bank | |||
Debt Instrument [Line Items] | |||
Fixed rate | 1.43% |
Other Borrowings - Contractual
Other Borrowings - Contractual Maturities of Other Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Due in 2023 | $ 86,291 | |
Due in 2024 | 177,609 | |
Due in 2025 | 14,696 | |
Due in 2026 | 151,529 | |
Due in 2027 | 1,587 | |
Thereafter | 292,059 | |
Unamortized debt issuance costs and other basis adjustments | 23,098 | |
Total | $ 746,869 | $ 743,003 |
Other Borrowings - Additional I
Other Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2022 | Feb. 15, 2022 | Oct. 29, 2020 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Lease liability | $ 21,983 | $ 13,469 | |||
Old National Bank | |||||
Debt Instrument [Line Items] | |||||
Lease liability | $ 21,983 | 13,469 | |||
First Midwest | |||||
Debt Instrument [Line Items] | |||||
Subordinated debentures | $ 150,000 | ||||
Subordinated Debentures | Anchor Bank (MN) | Subordinated Fixed-to-Floating Notes | |||||
Debt Instrument [Line Items] | |||||
Fixed rate | 5.75% | ||||
Value of subordinated fixed-to-floating notes assumed | $ 12,000 | ||||
Subordinated Debentures | Anchor Bank (MN) | Subordinated Fixed-to-Floating Notes | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 4.356% | ||||
Old National Bancorp | Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 175,000 | $ 175,000 | $ 175,000 | ||
Fixed rate | 4.125% | 4.125% |
Other Borrowings - Summary of T
Other Borrowings - Summary of Terms of Outstanding Junior Subordinated Debentures (Details) - Trust Preferred Securities - Junior Subordinated Debentures | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 136,643,000 |
Bridgeview Statutory Trust I | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 15,464,000 |
Rate | 8.41% |
Bridgeview Statutory Trust I | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 3.58% |
Bridgeview Capital Trust II | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 15,464,000 |
Rate | 8.18% |
Bridgeview Capital Trust II | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 3.35% |
First Midwest Capital Trust I | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 37,825,000 |
Rate | 6.95% |
First Midwest Capital Trust I | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 6.95% |
St. Joseph Capital Trust II | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 5,155,000 |
Rate | 6.66% |
St. Joseph Capital Trust II | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.75% |
Northern States Statutory Trust I | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 10,310,000 |
Rate | 6.67% |
Northern States Statutory Trust I | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.80% |
Anchor Capital Trust III | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 5,000,000 |
Rate | 6.71% |
Anchor Capital Trust III | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.55% |
Great Lakes Statutory Trust II | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 6,186,000 |
Rate | 6.27% |
Great Lakes Statutory Trust II | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.40% |
Home Federal Statutory Trust I | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 15,464,000 |
Rate | 6.52% |
Home Federal Statutory Trust I | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.65% |
Monroe Bancorp Capital Trust I | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 3,093,000 |
Rate | 6.43% |
Monroe Bancorp Capital Trust I | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.60% |
Tower Capital Trust 3 | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 9,279,000 |
Rate | 6.65% |
Tower Capital Trust 3 | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.69% |
Monroe Bancorp Statutory Trust II | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 5,155,000 |
Rate | 6.47% |
Monroe Bancorp Statutory Trust II | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.60% |
Great Lakes Statutory Trust III | |
Debt Instrument [Line Items] | |
Issuance Amount | $ 8,248,000 |
Rate | 6.57% |
Great Lakes Statutory Trust III | LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.70% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 5,128,595 | $ 3,012,018 |
Other comprehensive income (loss) before reclassifications | 64,529 | (335,286) |
Amounts reclassified from AOCI to income | 13,535 | (538) |
Balance at end of period | 5,277,426 | 5,232,114 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (786,422) | (2,375) |
Balance at end of period | (708,358) | (338,199) |
Unrealized Gains and Losses on Available- for-Sale Debt Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (642,346) | (2,950) |
Other comprehensive income (loss) before reclassifications | 27,219 | (311,153) |
Amounts reclassified from AOCI to income | 3,867 | (261) |
Balance at end of period | (611,260) | (314,364) |
Unrealized Gains and Losses on Held-to- Maturity Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (112,664) | 0 |
Other comprehensive income (loss) before reclassifications | 1,325 | (16,963) |
Amounts reclassified from AOCI to income | 4,373 | 236 |
Balance at end of period | (106,966) | (16,727) |
Gains and Losses on Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (31,549) | 543 |
Other comprehensive income (loss) before reclassifications | 35,985 | (7,170) |
Amounts reclassified from AOCI to income | 5,436 | (505) |
Balance at end of period | 9,872 | (7,132) |
Defined Benefit Pension Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 137 | 32 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI to income | (141) | (8) |
Balance at end of period | $ (4) | $ 24 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Debt securities gains (losses), net | $ 5,216 | $ (342) |
Interest income (expense) | (381,488) | (222,785) |
Salaries and employee benefits | 137,364 | 124,147 |
Income tax (expense) benefit | (41,421) | 8,714 |
Net income (loss) | (146,600) | 27,586 |
Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | (13,535) | 538 |
Amount Reclassified from AOCI | Unrealized gains and losses on available-for-sale securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Debt securities gains (losses), net | (5,216) | 342 |
Income tax (expense) benefit | 1,349 | (81) |
Net income (loss) | (3,867) | 261 |
Amount Reclassified from AOCI | Unrealized gains and losses on held-to-maturity securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest income (expense) | (5,829) | (310) |
Income tax (expense) benefit | 1,456 | 74 |
Net income (loss) | 4,373 | 236 |
Amount Reclassified from AOCI | Gains and losses on hedges Interest rate contracts | Interest rate contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest income (expense) | (7,292) | 669 |
Income tax (expense) benefit | 1,856 | (164) |
Net income (loss) | (5,436) | 505 |
Amount Reclassified from AOCI | Actuarial gains (losses) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | 188 | 11 |
Income tax (expense) benefit | (47) | (3) |
Net income (loss) | $ 141 | $ 8 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Provision at statutory rate of 21% | $ 39,484 | $ (7,623) |
Tax-exempt income: | ||
Tax-exempt interest | (4,486) | (2,992) |
Section 291/265 interest disallowance | 386 | 28 |
Company-owned life insurance income | (627) | (718) |
Tax-exempt income | (4,727) | (3,682) |
State income taxes | 8,142 | (3,327) |
Interim period effective rate adjustment | (1,717) | 7,040 |
Tax credit investments - federal | (2,526) | (1,270) |
Officer compensation limitation | 1,040 | 0 |
Other, net | 1,725 | 148 |
Income tax expense (benefit) | $ 41,421 | $ (8,714) |
Effective tax rate | 22% | 24% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Line Items] | ||
Net deferred tax assets | $ 391,400,000 | $ 435,800,000 |
Benefits paid | 27,400,000 | |
Deferred tax assets related to the market value | 13,200,000 | |
Bad debt reserves, created for tax purposes | 58,600,000 | |
Valuation allowance recorded | 0 | 0 |
Federal | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | 77,100,000 | 81,500,000 |
State | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | $ 121,400,000 | $ 124,400,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Percentage of periodic changes in fair value qualifies for hedge accounting treatment | 100% | |
Interest Income | ||
Derivative [Line Items] | ||
Reclassified interest income (expense) | $ 4,400 | |
Interest Expense | ||
Derivative [Line Items] | ||
Reclassified interest income (expense) | 23,100 | |
Interest rate swaps on borrowings | Cash flow hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 150,000 | $ 150,000 |
Interest rate swaps on borrowings | Fair value hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 200,000 | 300,000 |
Interest rate collars and floors on loan pools | Cash flow hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 1,900,000 | 1,900,000 |
Interest rate swaps on investment securities | Fair value hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 909,957 | 909,957 |
Interest rate lock commitments | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 38,945 | 21,401 |
Forward mortgage loan contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 45,047 | 30,330 |
Counterparty interest rate swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 5,575,403 | 5,220,363 |
Customer interest rate swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | $ 5,575,403 | $ 5,220,363 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Assets | $ 17,328 | $ 11,764 |
Liabilities | 43,109 | 47,859 |
Designated as Hedging Instrument | Cash flow hedges | Interest rate collars and floors on loan pools | ||
Derivative [Line Items] | ||
Notional | 1,900,000 | 1,900,000 |
Assets | 17,328 | 11,764 |
Liabilities | 38,276 | 47,859 |
Designated as Hedging Instrument | Cash flow hedges | Interest rate swaps on borrowings | ||
Derivative [Line Items] | ||
Notional | 150,000 | 150,000 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Designated as Hedging Instrument | Fair value hedges | Interest rate swaps on borrowings | ||
Derivative [Line Items] | ||
Notional | 200,000 | 300,000 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Designated as Hedging Instrument | Fair value hedges | Interest rate swaps on investment securities | ||
Derivative [Line Items] | ||
Notional | 909,957 | 909,957 |
Assets | 0 | 0 |
Liabilities | 4,833 | 0 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Assets | 148,741 | 157,237 |
Liabilities | 277,886 | 332,845 |
Not Designated as Hedging Instrument | Interest rate lock commitments | ||
Derivative [Line Items] | ||
Notional | 38,945 | 21,401 |
Assets | 380 | 93 |
Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Forward mortgage loan contracts | ||
Derivative [Line Items] | ||
Notional | 45,047 | 30,330 |
Assets | 0 | 32 |
Liabilities | 148 | 0 |
Not Designated as Hedging Instrument | Customer interest rate swaps | ||
Derivative [Line Items] | ||
Notional | 5,575,403 | 5,220,363 |
Assets | 19,470 | 5,676 |
Liabilities | 257,902 | 326,924 |
Not Designated as Hedging Instrument | Counterparty interest rate swaps | ||
Derivative [Line Items] | ||
Notional | 5,575,403 | 5,220,363 |
Assets | 128,487 | 151,111 |
Liabilities | 19,610 | 5,711 |
Not Designated as Hedging Instrument | Customer foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional | 14,165 | 8,341 |
Assets | 382 | 253 |
Liabilities | 21 | 42 |
Not Designated as Hedging Instrument | Counterparty foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional | 14,143 | 8,297 |
Assets | 22 | 72 |
Liabilities | $ 205 | $ 168 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on the Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income on Derivative | $ 47,849 | $ (9,506) |
Gain (Loss) Reclassified from AOCI into Income | (7,292) | 669 |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | (32) | 603 |
Fair value hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | (60,962) | 52,821 |
Gain (Loss) Recognized in Income on Related Hedged Items | 61,033 | (53,073) |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income on Derivative | 6,603 | (9,506) |
Gain (Loss) Reclassified from AOCI into Income | (7,637) | 669 |
Interest rate contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | (138) | 501 |
Mortgage contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | 107 | 130 |
Foreign currency contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | (1) | (28) |
Interest rate swaps on borrowings | Fair value hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | 2,153 | (4,833) |
Gain (Loss) Recognized in Income on Related Hedged Items | (2,218) | 4,956 |
Interest rate swaps on investment securities | Fair value hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | (63,115) | 57,654 |
Gain (Loss) Recognized in Income on Related Hedged Items | $ 63,251 | $ (58,029) |
Commitments, Contingencies, a_3
Commitments, Contingencies, and Financial Guarantees - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | |
Loss Contingencies [Line Items] | ||
Term of standby letters of credit, years | 1 year | |
Percent of unfunded loan commitments with fixed rates | 6% | |
Loan commitments floating rate, minimum | 0% | |
Loan commitments floating rate, maximum | 22% | |
Allowance for unfunded loan commitments | $ 34,200,000 | $ 32,200,000 |
Class B Restricted Shares | Visa | ||
Loss Contingencies [Line Items] | ||
Restricted stock conversion ratio | 1.5991 | |
Investment owned, balance, shares (in shares) | shares | 65,466 | |
Investment owned, at cost | $ 0 | |
Interest Rate Swap | ||
Loss Contingencies [Line Items] | ||
Notional amount | $ 381,800,000 | $ 398,900,000 |
Commitments, Contingencies, a_4
Commitments, Contingencies, and Financial Guarantees - Loan Commitments and Standby Letters of Credit (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded loan commitments | $ 9,386,866 | $ 8,979,334 |
Standby letters of credit | 181,476 | 174,070 |
Carrying value of letters of credit | $ 900 | $ 800 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | $ 72,158 | $ 52,507 |
Investment securities available for sale | 6,687,066 | 6,773,712 |
U.S. Treasury | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 221,872 | 200,927 |
U.S. government-sponsored entities and agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 1,193,691 | 1,175,080 |
Mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 4,308,775 | 4,369,902 |
States and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 621,487 | 663,852 |
Pooled trust preferred securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 10,849 | 10,811 |
Other securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 330,392 | 353,140 |
Fair Value on Recurring Basis | Carrying Value | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | 72,158 | 52,507 |
Residential loans held for sale | 10,584 | 11,926 |
Derivative assets | 166,069 | 169,001 |
Derivative liabilities | 320,995 | 380,704 |
Fair Value on Recurring Basis | Carrying Value | U.S. Treasury | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 221,872 | 200,927 |
Fair Value on Recurring Basis | Carrying Value | U.S. government-sponsored entities and agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 1,193,691 | 1,175,080 |
Fair Value on Recurring Basis | Carrying Value | Mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 4,308,775 | 4,369,902 |
Fair Value on Recurring Basis | Carrying Value | States and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 621,487 | 663,852 |
Fair Value on Recurring Basis | Carrying Value | Pooled trust preferred securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 10,849 | 10,811 |
Fair Value on Recurring Basis | Carrying Value | Other securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 330,392 | 353,140 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | 72,158 | 52,507 |
Residential loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | 0 | 0 |
Residential loans held for sale | 10,584 | 11,926 |
Derivative assets | 166,069 | 169,001 |
Derivative liabilities | 320,995 | 380,704 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity securities | 0 | 0 |
Residential loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. Treasury | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 221,872 | 200,927 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. Treasury | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. Treasury | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. government-sponsored entities and agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. government-sponsored entities and agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 1,193,691 | 1,175,080 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | U.S. government-sponsored entities and agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 4,308,775 | 4,369,902 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | States and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | States and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 621,487 | 663,852 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | States and political subdivisions | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Pooled trust preferred securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Pooled trust preferred securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 10,849 | 10,811 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Pooled trust preferred securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Other securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Other securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | 330,392 | 353,140 |
Fair Value on Recurring Basis | Estimate of Fair Value Measurement | Other securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment securities available for sale | $ 0 | $ 0 |
Fair Value - Assets Measured at
Fair Value - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - Fair Value on Non-recurring Basis - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Commercial Foreclosed Assets | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 240 | |
Commercial Foreclosed Assets | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 0 | |
Commercial Foreclosed Assets | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 0 | |
Commercial Foreclosed Assets | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 240 | |
Residential Foreclosed Assets | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 511 | |
Residential Foreclosed Assets | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 0 | |
Residential Foreclosed Assets | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 0 | |
Residential Foreclosed Assets | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 511 | |
Commercial | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 16,686 | $ 22,562 |
Commercial | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 0 | 0 |
Commercial | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 0 | 0 |
Commercial | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 16,686 | 22,562 |
Commercial real estate | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 43,924 | 48,026 |
Commercial real estate | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 0 | 0 |
Commercial real estate | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 0 | 0 |
Commercial real estate | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 43,924 | $ 48,026 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Allowance for credit losses | $ 298,711,000 | $ 280,507,000 | $ 303,671,000 | $ 107,341,000 |
Provision for credit losses | 13,437,000 | 108,736,000 | ||
Other real estate owned property write-downs | 27,000 | 200,000 | ||
Valuation allowance for loan servicing rights with impairments | 0 | |||
Valuation allowance for loan servicing rights with impairments, impairments (recoveries) during period | $ 0 | (45,000) | ||
Past due period of mortgage loans held for sale | 90 days | |||
Interest income for residential loans held for sale | $ 200,000 | 500,000 | ||
Fair Value on Non-recurring Basis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other real estate | 800,000 | |||
Impaired Commercial and Commercial Real Estate Loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Principal amount of impaired commercial and commercial real estate loans | 85,400,000 | 92,000,000 | ||
Allowance for credit losses | 24,800,000 | $ 21,500,000 | ||
Provision for credit losses | $ 11,900,000 | $ 15,800,000 |
Fair Value - Quantitative Infor
Fair Value - Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Collateral Dependent Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 16,686 | $ 22,562 |
Collateral Dependent Loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 43,924 | $ 48,026 |
Collateral Dependent Loans | Minimum | Discount for type of property, age of appraisal, and current status | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.10 | 0.10 |
Collateral Dependent Loans | Minimum | Discount for type of property, age of appraisal, and current status | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0 | 0.01 |
Collateral Dependent Loans | Maximum | Discount for type of property, age of appraisal, and current status | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.40 | 0.47 |
Collateral Dependent Loans | Maximum | Discount for type of property, age of appraisal, and current status | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.30 | 0.26 |
Collateral Dependent Loans | Weighted Average | Discount for type of property, age of appraisal, and current status | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.33 | 0.28 |
Collateral Dependent Loans | Weighted Average | Discount for type of property, age of appraisal, and current status | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.14 | 0.11 |
Foreclosed Assets | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 240 | |
Foreclosed Assets | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 511 | |
Foreclosed Assets | Discount for type of property, age of appraisal, and current status | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0 | |
Foreclosed Assets | Discount for type of property, age of appraisal, and current status | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input | 0.05 |
Fair Value - Schedule of Differ
Fair Value - Schedule of Difference between the Aggregate Fair Value and the Aggregate Remaining Principal Balance (Details) - Residential loans held for sale - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | $ 10,584 | $ 11,926 |
Difference | 165 | 221 |
Contractual Principal | $ 10,419 | $ 11,705 |
Fair Value - Changes in Fair Va
Fair Value - Changes in Fair Value for Items Measured at Fair Value Pursuant to Election of the Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Interest Income | $ 381,488 | $ 222,785 |
Interest (Expense) | (114,161) | (12,720) |
Residential loans held for sale | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Gains and (Losses) | (53) | (1,343) |
Interest Income | 0 | 0 |
Interest (Expense) | (3) | (3) |
Total Changes in Fair Values Included in Current Period Earnings | $ (56) | $ (1,346) |
Fair Value - Carrying Amounts a
Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | $ 1,113,935 | $ 728,412 | |
Loans, net | 31,523,663 | 30,819,970 | |
Accrued interest receivable | 188,988 | 190,521 | |
Noninterest-bearing demand deposits | 10,995,083 | 11,930,798 | |
Time deposits | 4,121,695 | 3,013,780 | |
Federal funds purchased and interbank borrowings | 618,955 | 581,489 | |
Outstanding at period end | 393,018 | 432,804 | $ 509,275 |
Federal Home Loan Bank advances | 4,981,612 | 3,829,018 | |
Other borrowings | 746,869 | 743,003 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government-sponsored entities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Significant Other Observable Inputs (Level 2) | U.S. government-sponsored entities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 656,358 | ||
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 982,963 | ||
Significant Other Observable Inputs (Level 2) | States and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 1,004,361 | ||
Significant Unobservable Inputs (Level 3) | U.S. government-sponsored entities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Significant Unobservable Inputs (Level 3) | States and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | 1,113,935 | 728,412 | |
Accrued interest receivable | 188,988 | 190,521 | |
Noninterest-bearing demand deposits | 10,995,083 | 11,930,798 | |
Checking, NOW, savings, and money market interest-bearing deposits | 19,801,014 | 20,056,252 | |
Time deposits | 4,121,695 | 3,013,780 | |
Federal funds purchased and interbank borrowings | 618,955 | 581,489 | |
Outstanding at period end | 393,018 | 432,804 | |
Federal Home Loan Bank advances | 4,981,612 | 3,829,018 | |
Other borrowings | 746,869 | 743,003 | |
Accrued interest payable | 28,792 | 19,547 | |
Standby letters of credit | 846 | 755 | |
Commitments to extend credit | 0 | 0 | |
Carrying Value | U.S. government-sponsored entities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 820,849 | 819,168 | |
Carrying Value | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 1,086,905 | 1,106,817 | |
Carrying Value | States and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 1,163,436 | 1,163,162 | |
Carrying Value | Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 9,624,779 | 9,386,862 | |
Carrying Value | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 12,772,044 | 12,317,825 | |
Carrying Value | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 6,548,459 | 6,438,525 | |
Carrying Value | Consumer credit | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 2,578,381 | 2,676,758 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | 1,113,935 | 728,412 | |
Accrued interest receivable | 1,046 | 758 | |
Noninterest-bearing demand deposits | 10,995,083 | 11,930,798 | |
Checking, NOW, savings, and money market interest-bearing deposits | 19,801,014 | 20,056,252 | |
Time deposits | 0 | 0 | |
Federal funds purchased and interbank borrowings | 618,955 | 581,489 | |
Outstanding at period end | 393,018 | 432,804 | |
Federal Home Loan Bank advances | 0 | 0 | |
Other borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Standby letters of credit | 0 | 0 | |
Commitments to extend credit | 0 | 0 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government-sponsored entities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 0 | 0 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 0 | 0 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 0 | 0 | |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer credit | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | 0 | 0 | |
Accrued interest receivable | 43,858 | 52,081 | |
Noninterest-bearing demand deposits | 0 | 0 | |
Checking, NOW, savings, and money market interest-bearing deposits | 0 | 0 | |
Time deposits | 4,066,499 | 2,976,389 | |
Federal funds purchased and interbank borrowings | 0 | 0 | |
Outstanding at period end | 0 | 0 | |
Federal Home Loan Bank advances | 4,764,172 | 3,739,780 | |
Other borrowings | 717,801 | 703,156 | |
Accrued interest payable | 28,792 | 19,547 | |
Standby letters of credit | 0 | 0 | |
Commitments to extend credit | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | U.S. government-sponsored entities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 663,623 | ||
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 973,486 | ||
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | States and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 1,026,265 | ||
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Consumer credit | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 0 | 0 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, due from banks, money market, and other interest-earning investments | 0 | 0 | |
Accrued interest receivable | 144,084 | 137,682 | |
Noninterest-bearing demand deposits | 0 | 0 | |
Checking, NOW, savings, and money market interest-bearing deposits | 0 | 0 | |
Time deposits | 0 | 0 | |
Federal funds purchased and interbank borrowings | 0 | 0 | |
Outstanding at period end | 0 | 0 | |
Federal Home Loan Bank advances | 0 | 0 | |
Other borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Standby letters of credit | 846 | 755 | |
Commitments to extend credit | 3,649 | 3,666 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | U.S. government-sponsored entities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | States and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities held to maturity | 0 | ||
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 9,477,212 | 9,066,583 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 12,477,217 | 11,867,851 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | 5,760,254 | 5,372,491 | |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Consumer credit | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, net | $ 2,481,269 | $ 2,557,115 |