Exhibit 99.1
 |  | |
FOR IMMEDIATE RELEASE August 1, 2016 | NASDAQ: ONB
oldnational.com
Contacts:
Media: Kathy A. Schoettlin – (812) 465-7269 Executive Vice President – Communications
Financial Community: Lynell J. Walton – (812) 464-1366 Senior Vice President – Investor Relations |
Old National’s 2nd quarter results highlighted by 11.3%
annualized organic loan growth and 5.5% increase in
tangible book value1
| • | Anchor BanCorp Wisconsin Inc. partnership complete |
| • | Old National Insurance sale closes |
2nd QUARTER 2016 HIGHLIGHTS:
| • | Earnings of $39.1 million, or $0.31 per common share |
| • | Organic loan growth of 11.3% annualized |
| • | Tangible book value1 increase of 5.5% even after closing on largest partnership in Company history |
| • | Current dividend yield of 4.0% |
| • | Stable Core Net Interest Margin1 |
| • | Early termination of FDIC Loss Share Agreement |
| 1 | Non-GAAP measures – refer to Tables 5 & 12 for Non-GAAP reconciliations |
Evansville, Ind. (August 1, 2016) – Today Old National Bancorp (the “Company” or “Old National”) (NASDAQ: ONB) reported 2nd quarter 2016 net income of $39.1 million, or $0.31 per share. These quarterly results compare to net income of $27.0 million in the 1st quarter of 2016 and $26.2 million recorded in the 2nd quarter of 2015.
Old National accomplished several strategic milestones during the 2nd quarter. These include the sale of the ONB Insurance Group, Inc., d/b/a Old National Insurance (May 31); closing on the partnership with Anchor BanCorp Wisconsin Inc. (“Anchor”) (May 1); the early termination of our FDIC loss share agreements; and the continuation of rationalizing our branch franchise. Related to some of these actions, the following items were included in Old National’s 2nd quarter financial results:
Table 1 ($ in millions) | After-Tax Impact | |||
Gain on Sale of Insurance Subsidiary | $ | 17.6 | ||
Merger and Integration Expenses | ($ | 4.6 | ) | |
ONB Foundation/Community Support Expenses | ($ | 3.2 | ) | |
Branch Consolidation Expenses | ($ | 0.7 | ) | |
Severance | ($ | 0.4 | ) | |
Also today, the Company announced its quarterly cash dividend of $0.13 per share. The dividend is payable September 16, 2016, to shareholders of record on September 1, 2016. For purposes of broker trading, the ex-date of the cash dividend is August 30, 2016.
“This was a quarter marked by significant milestones for Old National as we closed on our largest partnership to date, completed the sale of our Insurance group and ended our FDIC loss share agreement,” said Chairman and CEO Bob Jones. “These actions – coupled with solid organic loan growth and a continued focus on expense management – allowed us to continue to grow our business in spite of the economic challenges facing all U.S. financial companies. Our shareholders also benefitted by the increase in tangible book value even after the closing of our Anchor partnership.”
Committed to our Strategic Imperatives and 2016 Initiatives
Old National’s continued steady performance and strong credit and capital positions can be attributed to the Company’s unwavering commitment to the three strategic imperatives that have guided Old National for 11 years:
1. Strengthen the risk profile; 2. Enhance management discipline; and 3. Achieve consistent quality earnings.
Guided by these three strategic imperatives, Old National’s primary initiatives for 2016 are: 1. Continue to grow organic revenue; 2. Improve operating leverage; and 3. Prudent use of capital, all while maintaining a strong credit culture.
Grow Organic Revenue
Balance Sheet and Net Interest Margin
At June 30, 2016, total period-end loans, including loans held for sale, increased $1.845 billion to $8.875 billion from $7.030 billion at March 31, 2016. Total loans acquired through the partnership with Anchor totaled $1.646 billion as of the date of closing. Organic loan growth during the 2nd quarter was $199.1 million, or 11.3% on an annualized basis. Old National’s new Wisconsin region experienced the largest increase in loan balances, with $38.9 million, or 14.2% annualized, loan growth during the quarter as compared to their day 1 (May 1) balances. The Louisville, Kentucky market, including the Company’s new Lexington office, the Bloomington, Indiana market and the South Bend, Indiana market also experienced significant loan growth in the Old National franchise, with total loans in these regions increasing $31.8 million (21.4% annualized), $30.4 million (22.9% annualized) and $29.7 million (56.3% annualized), respectively, over March 31, 2016, loan balances.
At June 30, 2016, total period-end core deposits, including demand and interest-bearing deposits, increased $1.851 billion to $10.273 billion, compared to $8.422 billion at March 31, 2016. Total core deposits assumed through the partnership with Anchor were $1.853 billion as of the date of closing.
Net interest income for the 2nd quarter of 2016 totaled $99.3 million compared to $85.6 million in the 1st quarter of 2016, and $92.1 million in the 2nd quarter of 2015. On a fully taxable equivalent basis, net interest income was $104.6 million for the 2nd quarter of 2016 and represented a net interest margin on total average earning assets of 3.57%. These results compare to net interest income on a fully taxable equivalent basis of $90.8 million and a margin of 3.52% in the 1st quarter of 2016. In the 2nd quarter of 2015, Old National reported net interest income on a fully taxable equivalent basis of $96.9 million and a margin of 3.75%.Refer to Table 5 for Non-GAAP taxable equivalent reconciliations.
As part of net interest income, Old National recorded $14.2 million, or a 49 basis point contribution to net interest margin, from accretion income in the 2nd quarter of 2016 related to purchase accounting discounts from various acquisitions. Total accretion income in the 1st quarter of 2016 and the 2nd quarter of 2015 reported by Old National was $11.2 million, or a 44 basis point net interest margin contribution, and $15.6 million, or a 60 basis point net interest margin contribution, respectively. Excluding accretion income, the core net interest margin was 3.08% in the 2nd quarter of 2016, compared to 3.08% in the 1st quarter of 2016 and 3.15% in the 2nd quarter of 2015.Refer to Table 5 for Non-GAAP reconciliations.
Noninterest Income
For the 2nd quarter of 2016, total noninterest income amounted to $93.4 million, and includes the $41.9 million pre-tax gain on the sale of Old National Insurance. Excluding this gain on sale, total noninterest income was $51.5 million. This compares to $49.5 million in the 1st quarter of 2016 and $55.0 million in the 2nd quarter of 2015. Anchor contributed $4.6 million in noninterest income to the 2nd quarter of 2016.
Improve Operating Leverage
Old National’s noninterest expenses for the 2nd quarter of 2016 totaled $121.5 million. Items impacting noninterest expenses for the 2nd quarter are detailed in Table 1. Anchor operational expenses, excluding merger and integration charges, contributed $11.4 million in noninterest expenses during the current quarter. Noninterest expenses for the 1st quarter of 2016 were $98.4 million and for the 2nd quarter of 2015 were $109.7 million. As of June 30, 2016, Old National has 206 branches throughout its franchise.
Prudent Use of Capital
Old National’s capital position remained well above regulatory guideline minimums at June 30, 2016, with regulatory tier 1 and total risk-based capital ratios of 11.8% and 12.4%, respectively, compared to 12.5% and 13.2% at March 31, 2016, and 11.6% and 12.2% at June 30, 2015. Old National did not repurchase any stock in the open market during the 2nd quarter of 2016.
The following table presents Old National’s risk-based and leverage ratios compared to industry requirements:
Table 2 | Fully Phased-In Regulatory Guidelines Minimum | Consolidated ONB at June 30, 2016 | ||||||
Tier 1 Risk-Based Capital Ratio | >8.5 | % | 11.8 | % | ||||
Total Risk-Based Capital Ratio | >10.5 | % | 12.4 | % | ||||
Common Equity Tier 1 Capital Ratio | >7.0 | % | 11.6 | % | ||||
Tier 1 Leverage Capital Ratio | >4.0 | % | 8.9 | % | ||||
Old National’s ratio of tangible common equity to tangible assets was 8.10% at June 30, 2016, compared to 7.88% at March 31, 2016, and 7.23% at June 3, 2015.Refer to Table 12 for Non-GAAP reconciliations.
Maintain a Strong Credit Culture
Old National recorded provision expense of $1.3 million and had net charge-offs of $0.2 million in the 2nd quarter of 2016. These results compare to $0.1 million in provision expense and net charge-offs of $1.6 million, and provision expense of $2.3 million and net charge-offs of $1.0 million, in the 1st quarter of 2016 and the 2nd quarter of 2015, respectively. Net charge-offs for the 2nd quarter of 2016 were 0.01% of average total loans on an annualized basis, compared to net charge-offs of 0.09% of average total loans in the 1st quarter of 2016 and net charge-offs of 0.06% of average total loans in the 2nd quarter of 2015.
Delinquencies remained low as Old National reported 30+ day delinquent loans of 0.34% in the 2nd quarter of 2016 compared to 0.30% in the 1st quarter of 2016. Old National’s 90+ day delinquent loans for the 2nd quarter were 0.01% compared to 0.01% in the 1st quarter of 2016.
Old National’s allowance for loan losses at June 30, 2016, was $51.8 million, or 0.59% of total loans, compared to an allowance of $50.7 million, or 0.72% of total loans at March 31, 2016, and $50.2 million, or 0.74% of total loans, at June 30, 2015. The coverage ratio (allowance to non-performing loans) stood at 30% at June 30, 2016, compared to 38% at March 31, 2016, and 28% at June 30, 2015.
“Our ratio of allowance for loan and lease losses to total loans declined quarter to quarter with the addition of Anchor’s $1.6 billion loan portfolio,” noted Daryl Moore, Chief Credit Executive. “In accordance with current accounting practices, these acquired loans are recorded at fair value with no allowance recorded at the acquisition date. When we consider both our allowance for loan losses plus our purchase accounting marks, we believe we remain appropriately reserved, as demonstrated by the table below.”
Table 3 – At June 30, 2016 ($ in millions) | ONB Excluding Anchor1 | Anchor | ONB Consolidated | |||||||||
Allowance for Loan Losses (ALLL) | $ | 51.8 | $ | 0.0 | $ | 51.8 | ||||||
Remaining Loan Discount | 86.2 | 73.2 | 159.4 | |||||||||
Total ALLL + Remaining Loan Discount | $ | 138.0 | $ | 73.2 | $ | 211.2 | ||||||
Pre-Discount Loan Balance | $ | 7,244.1 | $ | 1,745.5 | $ | 8,989.6 | ||||||
ALLL/Pre-Discount Loan Balance | 0.72 | % | 0.0 | % | 0.58 | % | ||||||
Mark/Pre-Discount Loan Balance | 1.18 | % | 4.20 | % | 1.77 | % | ||||||
Combined ALLL & Discount/Pre-Discount Loan Balance | 1.90 | % | 4.20 | % | 2.35 | % | ||||||
| 1 | Includes discount on loans acquired through previous partnerships. |
The following table presents certain credit quality metrics related to Old National’s loan portfolio:
Table 4 ($ in millions) | 2Q16 ONB Excluding Anchor | 2Q16 Anchor | 2Q16 ONB Consolidated | 1Q16 | 2Q15 | |||||||||||||||
Non-Performing Loans (NPLs) | $ | 139.2 | $ | 35.0 | $ | 174.2 | $ | 132.0 | $ | 181.4 | ||||||||||
Problem Loans (Including NPLs) | 210.9 | 39.3 | 250.2 | 200.3 | 257.1 | |||||||||||||||
Special Mention Loans | 97.5 | 9.4 | 106.9 | 132.5 | 173.9 | |||||||||||||||
Net Charge-Off (Recoveries) Ratio | 0.04 | % | (0.05 | )% | 0.01 | % | 0.09 | % | 0.06 | % | ||||||||||
Provision for Loan Losses | $ | 1.8 | ($ | 0.5 | ) | $ | 1.3 | $ | 0.1 | $ | 2.3 | |||||||||
Allowance for Loan Losses | 51.8 | 0.0 | 51.8 | 50.7 | 50.2 | |||||||||||||||
About Old National
Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest financial services holding company headquartered in Indiana. With $14.4 billion in assets, it ranks among the top 100 banking companies in the U.S. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients. Today, Old National’s footprint includes Indiana, Kentucky, Michigan and Wisconsin. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investments and brokerage services. For more information and financial data, please visit Investor Relations atoldnational.com.
Conference Call
Old National will hold a conference call at 10:00 a.m. Central Time on Monday, August 1, 2016, to discuss 2nd quarter 2016 financial results, strategic developments, and the Company’s financial outlook. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Company’s Investor Relations web page atoldnational.com and will be archived there for 12 months. A replay of the call will also be available from 1:00 p.m. Central Time on August 1 through August 15. To access the replay, dial 1-855-859-2056, Conference ID Code 43576759.
Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
Table 5: Non-GAAP Reconciliations-Core Net Interest Margin
($ in millions) | 2Q16 | 1Q16 | 2Q15 | |||||||||
Net Interest Income | $ | 99.3 | $ | 85.6 | $ | 92.1 | ||||||
Taxable Equivalent Adjustment | 5.3 | 5.2 | 4.8 | |||||||||
Net Interest Income – Taxable Equivalent | $ | 104.6 | $ | 90.8 | $ | 96.9 | ||||||
Less Accretion1 | 14.2 | 11.2 | 15.6 | |||||||||
Net Interest Income – Taxable Equivalent Less Accretion | $ | 90.4 | $ | 79.6 | $ | 81.3 | ||||||
Average Earning Assets | $ | 11,726.4 | $ | 10,331.0 | $ | 10,325.9 | ||||||
Core Net Interest Margin – Fully Taxable Equivalent | 3.08 | % | 3.08 | % | 3.15 | % | ||||||
| 1 | Accretion related to purchase accounting discounts on acquired loan portfolios. |
Forward-Looking Statement
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, descriptions of Old National Bancorp’s (“Old National’s”) financial condition, results of operations, asset and credit quality trends and profitability. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: expected cost savings, synergies and other financial benefits from the recently completed mergers might not be realized within the expected timeframes and costs or difficulties relating to integration matters might be greater than expected; market, economic, operational, liquidity, credit and interest rate risks associated with Old National’s business; competition; government legislation and policies (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations); ability of Old National to execute its business plan (including integrating the recently completed merger with Anchor Bancorp Wisconsin Inc.); changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; failure or disruption of our information systems; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions of litigations; disruptive technologies in payment systems and other services traditionally provided by banks; computer hacking and other cybersecurity threats; other matters discussed in this press release and other factors identified in our Annual Report on Form 10-K and other periodic filings with the SEC. These forward-looking statements are made only as of the date of this press release, and Old National does not undertake an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.
TABLE 6
Financial Highlights
($ and shares in thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||||||
Income Statement | ||||||||||||||||||||
Net interest income | $ | 99,340 | $ | 85,643 | $ | 92,097 | $ | 184,983 | $ | 183,090 | ||||||||||
Provision for loan losses | 1,319 | 91 | 2,271 | 1,410 | 2,272 | |||||||||||||||
Noninterest income | 93,385 | 49,451 | 54,979 | 142,836 | 110,274 | |||||||||||||||
Noninterest expense | 121,472 | 98,355 | 109,690 | 219,827 | 225,846 | |||||||||||||||
Net income | 39,122 | 26,977 | 26,156 | 66,099 | 47,062 | |||||||||||||||
Per Common Share Data(Diluted) | ||||||||||||||||||||
Net income available to common shareholders | $ | 0.31 | $ | 0.24 | $ | 0.22 | $ | 0.55 | $ | 0.40 | ||||||||||
Average diluted shares outstanding | 127,973 | 114,563 | 116,223 | 121,273 | 117,634 | |||||||||||||||
Book value | 13.42 | 13.19 | 12.64 | 13.42 | 12.64 | |||||||||||||||
Stock price | 12.53 | 12.19 | 14.46 | 12.53 | 14.46 | |||||||||||||||
Dividend payout ratio | 42 | % | 54 | % | 53 | % | 47 | % | 60 | % | ||||||||||
Tangible common book value (1) | 8.23 | 7.80 | 7.18 | 8.23 | 7.18 | |||||||||||||||
Performance Ratios | ||||||||||||||||||||
Return on average assets | 1.16 | % | 0.91 | % | 0.88 | % | 1.04 | % | 0.79 | % | ||||||||||
Return on average common equity | 9.22 | % | 7.18 | % | 7.11 | % | 8.26 | % | 6.33 | % | ||||||||||
Net interest margin (FTE) | 3.57 | % | 3.52 | % | 3.75 | % | 3.54 | % | 3.72 | % | ||||||||||
Efficiency ratio (2) | 60.22 | % | 68.76 | % | 70.52 | % | 63.76 | % | 73.36 | % | ||||||||||
Net charge-offs (recoveries) to average loans | 0.01 | % | 0.09 | % | 0.06 | % | 0.05 | % | 0.00 | % | ||||||||||
Allowance for loan losses to ending loans | 0.59 | % | 0.72 | % | 0.74 | % | 0.59 | % | 0.74 | % | ||||||||||
Non-performing loans to ending loans | 1.97 | % | 1.88 | % | 2.68 | % | 1.97 | % | 2.68 | % | ||||||||||
Balance Sheet | ||||||||||||||||||||
Total loans | $ | 8,830,158 | $ | 7,007,074 | $ | 6,766,062 | $ | 8,830,158 | $ | 6,766,062 | ||||||||||
Total assets | 14,420,262 | 11,932,326 | 12,074,404 | 14,420,262 | 12,074,404 | |||||||||||||||
Total deposits | 10,451,602 | 8,588,895 | 8,809,570 | 10,451,602 | 8,809,570 | |||||||||||||||
Total borrowed funds | 1,935,555 | 1,662,191 | 1,598,370 | 1,935,555 | 1,598,370 | |||||||||||||||
Total shareholders’ equity | 1,811,117 | 1,508,643 | 1,456,723 | 1,811,117 | 1,456,723 | |||||||||||||||
Capital Ratios (1) | ||||||||||||||||||||
Risk-based capital ratios (EOP): | ||||||||||||||||||||
Tier 1 common equity | 11.6 | % | 12.0 | % | 11.2 | % | 11.6 | % | 11.2 | % | ||||||||||
Tier 1 | 11.8 | % | 12.5 | % | 11.6 | % | 11.8 | % | 11.6 | % | ||||||||||
Total | 12.4 | % | 13.2 | % | 12.2 | % | 12.4 | % | 12.2 | % | ||||||||||
Leverage ratio (to average assets) | 8.9 | % | 8.6 | % | 8.2 | % | 9.5 | % | 8.2 | % | ||||||||||
Total equity to assets (averages) | 12.56 | % | 12.63 | % | 12.36 | % | 12.59 | % | 12.48 | % | ||||||||||
Tangible common equity to tangible assets | 8.10 | % | 7.88 | % | 7.23 | % | 8.10 | % | 7.23 | % | ||||||||||
Nonfinancial Data | ||||||||||||||||||||
Full-time equivalent employees | 2,919 | 2,615 | 2,865 | 2,919 | 2,865 | |||||||||||||||
Number of branches | 206 | 160 | 180 | 206 | 180 | |||||||||||||||
| (1) | See non-GAAP measures on Table 12. |
| (2) | Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions. This presentation excludes intangible amortization and net securities gains, as is common in other company releases, and better aligns with true operating performance. |
FTE - Fully taxable equivalent basis
EOP - End of period actual balances
TABLE 7
Income Statement
($ and shares in thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||||||
Interest income | $ | 110,243 | $ | 95,329 | $ | 99,964 | $ | 205,572 | $ | 198,558 | ||||||||||
Less: interest expense | 10,903 | 9,686 | 7,867 | 20,589 | 15,468 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net interest income | 99,340 | 85,643 | 92,097 | 184,983 | 183,090 | |||||||||||||||
Provision for loan losses | 1,319 | 91 | 2,271 | 1,410 | 2,272 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net interest income after provision for loan losses | 98,021 | 85,552 | 89,826 | 183,573 | 180,818 | |||||||||||||||
Wealth management fees | 9,355 | 8,121 | 9,443 | 17,476 | 17,963 | |||||||||||||||
Service charges on deposit accounts | 10,437 | 9,639 | 11,278 | 20,076 | 22,323 | |||||||||||||||
Debit card and ATM fees | 4,471 | 3,785 | 7,075 | 8,256 | 13,807 | |||||||||||||||
Mortgage banking revenue | 5,203 | 2,920 | 4,262 | 8,123 | 7,225 | |||||||||||||||
Insurance premiums and commissions | 7,122 | 13,121 | 10,172 | 20,243 | 22,285 | |||||||||||||||
Investment product fees | 4,724 | 3,905 | 4,719 | 8,629 | 9,122 | |||||||||||||||
Company-owned life insurance | 2,080 | 2,038 | 2,193 | 4,118 | 4,345 | |||||||||||||||
Change in Indemnification Asset | 888 | (655 | ) | (1,541 | ) | 233 | (2,509 | ) | ||||||||||||
Other income | 4,377 | 4,372 | 5,356 | 8,749 | 9,425 | |||||||||||||||
Net gain on sale of ONB Insurance Group, Inc. | 41,864 | — | — | 41,864 | — | |||||||||||||||
Recognition of deferred gain on sale leaseback transactions | 1,038 | 1,052 | 1,468 | 2,090 | 2,992 | |||||||||||||||
Gains (losses) on sales of securities | 1,856 | 1,106 | 512 | 2,962 | 3,195 | |||||||||||||||
Gains (losses) on derivatives | (30 | ) | 47 | 42 | 17 | 101 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total noninterest income | 93,385 | 49,451 | 54,979 | 142,836 | 110,274 | |||||||||||||||
Salaries and employee benefits | 62,715 | 56,972 | 59,248 | 119,687 | 128,942 | |||||||||||||||
Occupancy | 13,568 | 12,844 | 14,141 | 26,412 | 28,434 | |||||||||||||||
Equipment | 3,316 | 2,893 | 3,446 | 6,209 | 7,350 | |||||||||||||||
Marketing | 5,111 | 2,486 | 3,678 | 7,597 | 5,914 | |||||||||||||||
Data processing | 8,676 | 7,123 | 8,077 | 15,799 | 14,667 | |||||||||||||||
Communication | 2,535 | 1,864 | 2,435 | 4,399 | 5,179 | |||||||||||||||
Professional fees | 5,181 | 3,368 | 3,381 | 8,549 | 6,513 | |||||||||||||||
Loan expenses | 2,123 | 1,333 | 1,816 | 3,456 | 3,142 | |||||||||||||||
Supplies | 598 | 583 | 581 | 1,181 | 1,265 | |||||||||||||||
FDIC assessment | 2,030 | 1,919 | 1,972 | 3,949 | 3,857 | |||||||||||||||
Other real estate owned expense | 2,099 | 424 | 476 | 2,523 | 1,637 | |||||||||||||||
Intangible amortization | 3,365 | 2,647 | 2,977 | 6,012 | 6,058 | |||||||||||||||
Other expense | 10,155 | 3,899 | 7,462 | 14,054 | 12,888 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total noninterest expense | 121,472 | 98,355 | 109,690 | 219,827 | 225,846 | |||||||||||||||
Income before income taxes | 69,934 | 36,648 | 35,115 | 106,582 | 65,246 | |||||||||||||||
Income tax expense | 30,812 | 9,671 | 8,959 | 40,483 | 18,184 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income | $ | 39,122 | $ | 26,977 | $ | 26,156 | $ | 66,099 | $ | 47,062 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||
Net income | $ | 0.31 | $ | 0.24 | $ | 0.22 | $ | 0.55 | $ | 0.40 | ||||||||||
Average Common Shares Outstanding | ||||||||||||||||||||
Basic | 127,508 | 113,998 | 115,732 | 120,753 | 117,128 | |||||||||||||||
Diluted | 127,973 | 114,563 | 116,223 | 121,273 | 117,634 | |||||||||||||||
Common shares outstanding at end of period | 135,005 | 114,352 | 115,205 | 135,005 | 115,205 | |||||||||||||||
TABLE 8
Balance Sheet
($ in thousands)
| June 30, 2016 | March 31, 2016 | June 30, 2015 | ||||||||||
Assets | ||||||||||||
Federal Reserve Bank account | $ | 56,433 | $ | 20,516 | $ | 11,297 | ||||||
Money market investments | 5,514 | 1,783 | 4,931 | |||||||||
Investments: | ||||||||||||
Treasury and government sponsored agencies | 694,264 | 757,745 | 851,746 | |||||||||
Mortgage-backed securities | 1,349,805 | 1,005,588 | 1,123,692 | |||||||||
States and political subdivisions | 1,128,700 | 1,112,599 | 1,047,246 | |||||||||
Other securities | 437,669 | 431,368 | 448,756 | |||||||||
|
|
|
|
|
| |||||||
Total investments | 3,610,438 | 3,307,300 | 3,471,440 | |||||||||
|
|
|
|
|
| |||||||
Loans held for sale | 44,422 | 22,546 | 217,667 | |||||||||
Loans: | ||||||||||||
Commercial | 1,893,700 | 1,784,970 | 1,775,954 | |||||||||
Commercial and agriculture real estate | 2,943,525 | 1,907,834 | 1,767,341 | |||||||||
Consumer: | ||||||||||||
Home equity | 473,550 | 347,776 | 369,961 | |||||||||
Other consumer loans | 1,419,613 | 1,236,959 | 1,094,580 | |||||||||
|
|
|
|
|
| |||||||
Subtotal of commercial and consumer loans | 6,730,388 | 5,277,539 | 5,007,836 | |||||||||
Residential real estate | 2,099,770 | 1,634,132 | 1,622,819 | |||||||||
Covered loans | — | 95,403 | 135,407 | |||||||||
|
|
|
|
|
| |||||||
Total loans | 8,830,158 | 7,007,074 | 6,766,062 | |||||||||
|
|
|
|
|
| |||||||
Total earning assets | 12,546,965 | 10,359,219 | 10,471,397 | |||||||||
|
|
|
|
|
| |||||||
Allowance for loan losses | (51,804 | ) | (50,700 | ) | (50,191 | ) | ||||||
Nonearning Assets: | ||||||||||||
Cash and due from banks | 205,973 | 153,259 | 178,985 | |||||||||
Premises and equipment | 231,656 | 198,065 | 131,336 | |||||||||
Goodwill and intangible assets | 699,760 | 617,077 | 629,460 | |||||||||
Company-owned life insurance | 350,193 | 342,292 | 337,802 | |||||||||
Net deferred tax assets | 179,448 | 98,712 | 127,622 | |||||||||
Loan servicing rights | 25,756 | 10,534 | 10,027 | |||||||||
FDIC Indemnification Asset | — | 7,703 | 16,475 | |||||||||
Other real estate owned | 24,254 | 13,522 | 14,141 | |||||||||
Other assets | 208,061 | 182,643 | 207,350 | |||||||||
|
|
|
|
|
| |||||||
Total nonearning assets | 1,925,101 | 1,623,807 | 1,653,198 | |||||||||
|
|
|
|
|
| |||||||
Total assets | $ | 14,420,262 | $ | 11,932,326 | $ | 12,074,404 | ||||||
|
|
|
|
|
| |||||||
Liabilities and Equity | ||||||||||||
Noninterest-bearing demand deposits | $ | 2,883,917 | $ | 2,491,767 | $ | 2,557,665 | ||||||
NOW accounts | 2,456,963 | 2,178,690 | 2,213,862 | |||||||||
Savings accounts | 2,616,365 | 2,271,341 | 2,352,916 | |||||||||
Money market accounts | 1,015,336 | 561,250 | 602,287 | |||||||||
Other time deposits | 1,300,611 | 919,213 | 1,036,040 | |||||||||
|
|
|
|
|
| |||||||
Total core deposits | 10,273,192 | 8,422,261 | 8,762,770 | |||||||||
Brokered CD’s | 178,410 | 166,634 | 46,800 | |||||||||
|
|
|
|
|
| �� | ||||||
Total deposits | 10,451,602 | 8,588,895 | 8,809,570 | |||||||||
Short-term borrowings | 567,659 | 494,380 | 530,377 | |||||||||
Other borrowings | 1,367,896 | 1,167,811 | 1,067,993 | |||||||||
|
|
|
|
|
| |||||||
Total borrowed funds | 1,935,555 | 1,662,191 | 1,598,370 | |||||||||
Accrued expenses and other liabilities | 221,988 | 172,597 | 209,741 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 12,609,145 | 10,423,683 | 10,617,681 | |||||||||
Common stock, surplus, and retained earnings | 1,834,734 | 1,538,228 | 1,494,785 | |||||||||
Other comprehensive income | (23,617 | ) | (29,585 | ) | (38,062 | ) | ||||||
|
|
|
|
|
| |||||||
Total shareholders’ equity | 1,811,117 | 1,508,643 | 1,456,723 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities and shareholders’ equity | $ | 14,420,262 | $ | 11,932,326 | $ | 12,074,404 | ||||||
|
|
|
|
|
| |||||||
TABLE 9
Average Balance Sheet and Interest Rates
($ in thousands)
| Three Months Ended June 30, 2016 | Three Months Ended March 31, 2016 | Three Months Ended June 30, 2015 | ||||||||||||||||||||||||||||||||||
| Earning Assets: | Average Balance | Income (1)/ Expense | Yield/ Rate | Average Balance | Income (1)/ Expense | Yield/ Rate | Average Balance | Income (1)/ Expense | Yield/ Rate | |||||||||||||||||||||||||||
Fed Funds sold, resell agr, Fed Reserve Bank account, and money market | $ | 23,604 | $ | 21 | 0.36 | % | $ | 44,499 | $ | 49 | 0.45 | % | $ | 19,282 | $ | 8 | 0.16 | % | ||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||
Treasury and gov’t sponsored agencies | 738,642 | 3,586 | 1.94 | % | 730,379 | 3,477 | 1.90 | % | 839,453 | 4,123 | 1.96 | % | ||||||||||||||||||||||||
Mortgage-backed securities | 1,209,231 | 5,562 | 1.84 | % | 1,050,520 | 5,078 | 1.93 | % | 1,138,567 | 5,060 | 1.78 | % | ||||||||||||||||||||||||
States and political subdivisions | 1,117,367 | 13,207 | 4.73 | % | 1,103,467 | 13,009 | 4.72 | % | 976,034 | 12,025 | 4.93 | % | ||||||||||||||||||||||||
Other securities | 434,089 | 2,119 | 1.98 | % | 428,324 | 2,837 | 2.66 | % | 452,169 | 2,674 | 2.37 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total investments | 3,499,329 | 24,474 | 2.80 | % | 3,312,690 | 24,401 | 2.95 | % | 3,406,223 | 23,882 | 2.81 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Commercial (2) | 1,825,627 | 17,709 | 3.84 | % | 1,781,711 | 17,161 | 3.81 | % | 1,759,870 | 19,919 | 4.48 | % | ||||||||||||||||||||||||
Commercial and agriculture real estate (2) | 2,589,342 | 35,273 | 5.39 | % | 1,896,951 | 28,038 | 5.85 | % | 1,850,428 | 28,312 | 6.05 | % | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||
Home equity (2) | 454,581 | 6,586 | 5.83 | % | 413,796 | 4,279 | 4.16 | % | 447,504 | 4,451 | 3.99 | % | ||||||||||||||||||||||||
Other consumer loans (2) | 1,344,288 | 11,438 | 3.42 | % | 1,210,993 | 9,680 | 3.22 | % | 1,114,210 | 9,976 | 3.59 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Subtotal commercial and consumer loans | 6,213,838 | 71,006 | 4.60 | % | 5,303,451 | 59,158 | 4.49 | % | 5,172,012 | 62,658 | 4.86 | % | ||||||||||||||||||||||||
Residential real estate loans (2) | 1,989,612 | 20,009 | 4.03 | % | 1,670,389 | 16,921 | 4.06 | % | 1,728,421 | 18,173 | 4.21 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total loans (2) | 8,203,450 | 91,015 | 4.42 | % | 6,973,840 | 76,079 | 4.35 | % | 6,900,433 | 80,831 | 4.66 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total earning assets | $ | 11,726,383 | $ | 115,510 | 3.93 | % | $ | 10,331,029 | $ | 100,529 | 3.88 | % | $ | 10,325,938 | $ | 104,721 | 4.03 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Less: Allowance for loan losses | (51,269 | ) | (52,077 | ) | (48,593 | ) | ||||||||||||||||||||||||||||||
Non-Earning Assets: | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 187,974 | $ | 166,351 | $ | 181,326 | ||||||||||||||||||||||||||||||
Other assets | 1,655,720 | 1,458,537 | 1,451,532 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total assets | 13,518,808 | $ | 11,903,840 | $ | 11,910,203 | |||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 2,416,761 | $ | 405 | 0.07 | % | $ | 2,114,798 | $ | 237 | 0.05 | % | $ | 2,271,745 | $ | 160 | 0.03 | % | ||||||||||||||||||
Savings accounts | 2,492,202 | 843 | 0.14 | % | 2,224,151 | 780 | 0.14 | % | 2,369,156 | 808 | 0.14 | % | ||||||||||||||||||||||||
Money market accounts | 861,791 | 282 | 0.13 | % | 552,475 | 90 | 0.07 | % | 616,026 | 91 | 0.06 | % | ||||||||||||||||||||||||
Other time deposits | 1,175,435 | 2,367 | 0.81 | % | 913,347 | 2,115 | 0.93 | % | 1,049,132 | 2,414 | 0.92 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total interest-bearing deposits | 6,946,189 | 3,897 | 0.23 | % | 5,804,771 | 3,222 | 0.22 | % | 6,306,059 | 3,473 | 0.22 | % | ||||||||||||||||||||||||
Brokered CD’s | 174,338 | 357 | 0.82 | % | 127,287 | 272 | 0.86 | % | 52,484 | 58 | 0.44 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total interest-bearing deposits and CD’s | 7,120,527 | 4,254 | 0.24 | % | 5,932,058 | 3,494 | 0.24 | % | 6,358,543 | 3,531 | 0.22 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Short-term borrowings | 528,437 | 410 | 0.31 | % | 446,422 | 182 | 0.16 | % | 467,440 | 112 | 0.10 | % | ||||||||||||||||||||||||
Other borrowings | 1,251,712 | 6,239 | 2.00 | % | 1,375,011 | 6,010 | 1.75 | % | 896,359 | 4,224 | 1.87 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total borrowed funds | 1,780,149 | 6,649 | 1.50 | % | 1,821,433 | 6,192 | 1.37 | % | 1,363,799 | 4,336 | 1.28 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total interest-bearing liabilities | $ | 8,900,676 | $ | 10,903 | 0.49 | % | $ | 7,753,491 | $ | 9,686 | 0.50 | % | $ | 7,722,342 | $ | 7,867 | 0.41 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Noninterest-Bearing Liabilities | ||||||||||||||||||||||||||||||||||||
Demand deposits | 2,725,417 | 2,473,091 | 2,515,696 | |||||||||||||||||||||||||||||||||
Other liabilities | 195,091 | 174,296 | 200,243 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 1,697,624 | 1,502,962 | 1,471,922 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 13,518,808 | $ | 11,903,840 | $ | 11,910,203 | ||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net interest rate spread | 3.44 | % | 3.38 | % | 3.62 | % | ||||||||||||||||||||||||||||||
Net interest margin (FTE) | 3.57 | % | 3.52 | % | 3.75 | % | ||||||||||||||||||||||||||||||
FTE adjustment | $ | 5,267 | $ | 5,200 | $ | 4,757 | ||||||||||||||||||||||||||||||
| (1) | Interest income is reflected on a fully taxable equivalent basis (FTE). |
| (2) | Includes loans held for sale. |
TABLE 10
Average Balance Sheet and Interest Rates
($ in Thousands)
| Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | |||||||||||||||||||||||
| Earning Assets: | Average Balance | Income (1)/ Expense | Yield/ Rate | Average Balance | Income (1)/ Expense | Yield/ Rate | ||||||||||||||||||
Fed Funds sold, resell agr, Fed Reserve Bank account, and money market | $ | 34,051 | $ | 70 | 0.41 | % | $ | 22,489 | $ | 14 | 0.12 | % | ||||||||||||
Investments: | ||||||||||||||||||||||||
Treasury and gov’t sponsored agencies | 734,511 | 7,063 | 1.92 | % | 864,577 | 8,497 | 1.97 | % | ||||||||||||||||
Mortgage-backed securities | 1,129,876 | 10,639 | 1.88 | % | 1,146,159 | 10,110 | 1.76 | % | ||||||||||||||||
States and political subdivisions | 1,110,417 | 26,216 | 4.72 | % | 976,486 | 23,616 | 4.84 | % | ||||||||||||||||
Other securities | 431,206 | 4,956 | 2.34 | % | 453,114 | 5,494 | 2.42 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total investments | 3,406,010 | 48,874 | 2.87 | % | 3,440,336 | 47,717 | 2.77 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Loans: | ||||||||||||||||||||||||
Commercial (2) | 1,803,669 | 34,871 | 3.82 | % | 1,738,137 | 38,933 | 4.46 | % | ||||||||||||||||
Commercial and agriculture real estate (2) | 2,243,147 | 63,311 | 5.58 | % | 1,865,125 | 56,438 | 6.02 | % | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity (2) | 434,189 | 10,865 | 5.03 | % | 450,555 | 9,032 | 4.04 | % | ||||||||||||||||
Other consumer loans (2) | 1,277,640 | 21,118 | 3.32 | % | 1,079,369 | 19,647 | 3.67 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Subtotal commercial and consumer loans | 5,758,645 | 130,165 | 4.55 | % | 5,133,186 | 124,050 | 4.87 | % | ||||||||||||||||
Residential real estate loans (2) | 1,830,000 | 36,930 | 4.05 | % | 1,739,986 | 36,192 | 4.16 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans (2) | 7,588,645 | 167,095 | 4.39 | % | 6,873,172 | 160,242 | 4.66 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total earning assets | $ | 11,028,706 | $ | 216,039 | 3.91 | % | $ | 10,335,997 | $ | 207,973 | 4.02 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less: Allowance for loan losses | (51,673 | ) | (49,003 | ) | ||||||||||||||||||||
Non-Earning Assets: | ||||||||||||||||||||||||
Cash and due from banks | $ | 177,162 | $ | 183,518 | ||||||||||||||||||||
Other assets | 1,557,129 | 1,449,382 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 12,711,324 | $ | 11,919,894 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Interest-bearing Liabilities: | ||||||||||||||||||||||||
NOW accounts | $ | 2,265,779 | $ | 643 | 0.06 | % | $ | 2,239,599 | $ | 321 | 0.03 | % | ||||||||||||
Savings accounts | 2,358,177 | 1,623 | 0.14 | % | 2,356,595 | 1,617 | 0.14 | % | ||||||||||||||||
Money market accounts | 707,133 | 372 | 0.11 | % | 636,379 | 209 | 0.07 | % | ||||||||||||||||
Other time deposits | 1,044,391 | 4,481 | 0.86 | % | 1,062,001 | 4,798 | 0.91 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing deposits | 6,375,480 | 7,119 | 0.22 | % | 6,294,574 | 6,945 | 0.22 | % | ||||||||||||||||
Brokered CD’s | 150,812 | 628 | 0.84 | % | 62,620 | 149 | 0.48 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing deposits and CD’s | 6,526,292 | 7,747 | 0.24 | % | 6,357,194 | 7,094 | 0.23 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Short-term borrowings | 487,430 | 592 | 0.24 | % | 460,563 | 208 | 0.09 | % | ||||||||||||||||
Other borrowings | 1,313,362 | 12,250 | 1.87 | % | 907,495 | 8,166 | 1.81 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total borrowed funds | 1,800,792 | 12,842 | 1.43 | % | 1,368,058 | 8,374 | 1.23 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | $ | 8,327,084 | $ | 20,589 | 0.50 | % | $ | 7,725,252 | $ | 15,468 | 0.40 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Noninterest-Bearing Liabilities | ||||||||||||||||||||||||
Demand deposits | 2,599,253 | 2,509,423 | ||||||||||||||||||||||
Other liabilities | 184,694 | 197,982 | ||||||||||||||||||||||
Shareholders’ equity | 1,600,293 | 1,487,237 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,711,324 | $ | 11,919,894 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest rate spread | 3.41 | % | 3.62 | % | ||||||||||||||||||||
Net interest margin (FTE) | 3.54 | % | 3.72 | % | ||||||||||||||||||||
FTE adjustment | $ | 10,467 | $ | 9,415 | ||||||||||||||||||||
| (1) | Interest income is reflected on a fully taxable equivalent basis (FTE). |
| (2) | Includes loans held for sale. |
TABLE 11
Asset Quality (EOP)
($ in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||||||
Beginning allowance for loan losses | $ | 50,700 | $ | 52,233 | $ | 48,878 | $ | 52,233 | $ | 47,849 | ||||||||||
Provision for loan losses | 1,319 | 91 | 2,271 | 1,410 | 2,272 | |||||||||||||||
Gross charge-offs | (2,677 | ) | (3,942 | ) | (3,902 | ) | (6,619 | ) | (6,016 | ) | ||||||||||
Gross recoveries | 2,462 | 2,318 | 2,944 | 4,780 | 6,086 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net (charge-offs) recoveries | (215 | ) | (1,624 | ) | (958 | ) | (1,839 | ) | 70 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ending allowance for loan losses | $ | 51,804 | $ | 50,700 | $ | 50,191 | $ | 51,804 | $ | 50,191 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net charge-offs (recoveries) / average loans (1) | 0.01 | % | 0.09 | % | 0.06 | % | 0.05 | % | 0.00 | % | ||||||||||
Average loans outstanding (1) | $ | 8,191,544 | $ | 6,970,578 | $ | 6,697,517 | $ | 7,581,061 | $ | 6,668,724 | ||||||||||
EOP loans outstanding (1) | $ | 8,830,158 | $ | 7,007,074 | $ | 6,766,062 | $ | 8,830,158 | $ | 6,766,062 | ||||||||||
Allowance for loan losses / EOP loans (1) | 0.59 | % | 0.72 | % | 0.74 | % | 0.59 | % | 0.74 | % | ||||||||||
Underperforming Assets: | ||||||||||||||||||||
Loans 90 Days and over (still accruing) | $ | 670 | $ | 357 | $ | 598 | $ | 670 | $ | 598 | ||||||||||
Non-performing loans: | ||||||||||||||||||||
Nonaccrual loans (2) | 160,340 | 117,866 | 167,802 | 160,340 | 167,802 | |||||||||||||||
Renegotiated loans | 13,904 | 14,155 | 13,563 | 13,904 | 13,563 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total non-performing loans | 174,244 | 132,021 | 181,365 | 174,244 | 181,365 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Foreclosed properties | 24,254 | 13,522 | 14,141 | 24,254 | 14,141 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total underperforming assets | $ | 199,168 | $ | 145,900 | $ | 196,104 | $ | 199,168 | $ | 196,104 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Classified loans - “problem loans” | $ | 250,214 | $ | 200,297 | $ | 257,106 | $ | 250,214 | $ | 257,106 | ||||||||||
Other classified assets | 6,392 | 6,566 | 11,371 | 6,392 | 11,371 | |||||||||||||||
Criticized loans - “special mention loans” | 106,886 | 132,475 | 173,921 | 106,886 | 173,921 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total classified and criticized assets | $ | 363,492 | $ | 339,338 | $ | 442,398 | $ | 363,492 | $ | 442,398 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Non-performing loans / EOP loans (1) | 1.97 | % | 1.88 | % | 2.68 | % | 1.97 | % | 2.68 | % | ||||||||||
Allowance to non-performing loans (3) | 30 | % | 38 | % | 28 | % | 30 | % | 28 | % | ||||||||||
Under-performing assets / EOP loans (1) | 2.26 | % | 2.08 | % | 2.90 | % | 2.26 | % | 2.90 | % | ||||||||||
EOP total assets | $ | 14,420,262 | $ | 11,932,326 | $ | 12,074,404 | $ | 14,420,262 | $ | 12,074,404 | ||||||||||
Under-performing assets / EOP assets | 1.38 | % | 1.22 | % | 1.62 | % | 1.38 | % | 1.62 | % | ||||||||||
EOP - End of period actual balances
| (1) | Excludes loans held for sale. |
| (2) | Includes renegotiated loans totaling $38.1 million at June 30, 2016, $35.7 million at March 31, 2016 and $25.5 million at June 30, 2015. |
| (3) | Includes acquired loans that were recorded at fair value in accordance with ASC 805 at the date of acquisition. As such, the credit risk was incorporated in the fair value recorded and no allowance for loan losses was recorded on the acquisition date. |
TABLE 12
Non-GAAP Measures
($ in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||||||
Actual End of Period Balances | ||||||||||||||||||||
GAAP shareholders’ equity | $ | 1,811,117 | $ | 1,508,643 | $ | 1,456,723 | $ | 1,811,117 | $ | 1,456,723 | ||||||||||
Deduct: | ||||||||||||||||||||
Goodwill | 655,523 | 584,634 | 588,464 | 655,523 | 588,464 | |||||||||||||||
Intangibles | 44,237 | 32,443 | 40,996 | 44,237 | 40,996 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
| 699,760 | 617,077 | 629,460 | 699,760 | 629,460 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible shareholders’ equity | $ | 1,111,357 | $ | 891,566 | $ | 827,263 | $ | 1,111,357 | $ | 827,263 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Actual End of Period Balances | ||||||||||||||||||||
GAAP assets | $ | 14,420,262 | $ | 11,932,326 | $ | 12,074,404 | $ | 14,420,262 | $ | 12,074,404 | ||||||||||
Add: | ||||||||||||||||||||
Trust overdrafts | 337 | 48 | 72 | 337 | 72 | |||||||||||||||
Deduct: | ||||||||||||||||||||
Goodwill | 655,523 | 584,634 | 588,464 | 655,523 | 588,464 | |||||||||||||||
Intangibles | 44,237 | 32,443 | 40,996 | 44,237 | 40,996 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
| 699,760 | 617,077 | 629,460 | 699,760 | 629,460 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible Assets | $ | 13,720,839 | $ | 11,315,297 | $ | 11,445,016 | $ | 13,720,839 | $ | 11,445,016 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Risk-weighted assets | $ | 9,624,966 | $ | 7,795,646 | $ | 8,023,881 | $ | 9,624,966 | $ | 8,023,881 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
GAAP net income | $ | 39,122 | $ | 26,977 | $ | 26,156 | $ | 66,099 | $ | 47,062 | ||||||||||
Add: | ||||||||||||||||||||
Intangible amortization (net of tax) | 3,171 | 2,404 | 2,687 | 5,575 | 5,468 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible net income | $ | 42,293 | $ | 29,381 | $ | 28,843 | $ | 71,674 | $ | 52,530 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible Ratios | ||||||||||||||||||||
Return on tangible common equity | 15.22 | % | 13.18 | % | 13.95 | % | 12.90 | % | 12.70 | % | ||||||||||
Return on tangible assets | 1.23 | % | 1.04 | % | 1.01 | % | 1.04 | % | 0.92 | % | ||||||||||
Tangible common equity to tangible assets | 8.10 | % | 7.88 | % | 7.23 | % | 8.10 | % | 7.23 | % | ||||||||||
Tangible common equity to risk-weighted assets | 11.55 | % | 11.44 | % | 10.31 | % | 11.55 | % | 10.31 | % | ||||||||||
Tangible common book value (1) | 8.23 | 7.80 | 7.18 | 8.23 | 7.18 | |||||||||||||||
| Tangible common equity presentation includes other comprehensive income as is common in other company releases. | ||||||||||||||||||||
(1) Tangible common shareholders’ equity divided by common shares issued and outstanding at period-end. |
| |||||||||||||||||||
Tier 1 capital | $ | 1,134,978 | $ | 975,717 | $ | 927,247 | $ | 1,134,978 | $ | 927,247 | ||||||||||
Deduct: | ||||||||||||||||||||
Trust Preferred Securities | 45,000 | 45,000 | 45,000 | 45,000 | 45,000 | |||||||||||||||
Additional Tier 1 capital deductions | (30,760 | ) | (7,625 | ) | (13,232 | ) | (30,760 | ) | (13,232 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
| 14,240 | 37,375 | 31,768 | 14,240 | 31,768 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tier 1 common equity | $ | 1,120,738 | $ | 938,342 | $ | 895,479 | $ | 1,120,738 | $ | 895,479 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Risk-weighted assets | 9,624,966 | 7,795,646 | 8,023,881 | 9,624,966 | 8,023,881 | |||||||||||||||
Tier 1 common equity to risk-weighted assets | 11.64 | % | 12.04 | % | 11.16 | % | 11.64 | % | 11.16 | % | ||||||||||