Old National Bancorp (ONB) 8-K Old National’s 3rd quarter results highlighted by continued loan

Exhibit 99.1

NASDAQ: ONB

oldnational.com

FOR IMMEDIATE RELEASE

October 31, 2016

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 3^rd quarter results highlighted by continued loan

growth and increase in tangible book value¹

3^RD QUARTERVS. 2^ND QUARTER 2016 HIGHLIGHTS:

• Earnings of $34.7 million, or $0.25 per common share

• Loan growth of 4.1% annualized

• Tangible book value¹ increase of 2.4%

• Stable Core Net Interest Margin¹

• Decline in Noninterest Expenses

• Successful conversion of Anchor BanCorp

• Current dividend yield of 3.6%

¹ Non-GAAP measures – refer to Tables 4 & 11 for Non-GAAP reconciliations

Evansville, Ind. (October 31, 2016) – Today Old National Bancorp (the “Company” or “Old National”) (NASDAQ: ONB) reported 3^rd quarter 2016 net income of $34.7 million, or $0.25 per share. Included in the current quarter were pre-tax merger and integration charges of $5.5 million related to the recently completed partnership with Anchor BanCorp Wisconsin Inc. (“Anchor”). These quarterly results compare to net income of $39.1 million in the 2^nd quarter of 2016 and $37.7 million recorded in the 3^rd quarter of 2015. The 2^nd quarter of 2016 contained $7.2 million in pre-tax merger and integration charges.

Also today, the Company announced its quarterly cash dividend of $0.13 per share. The dividend is payable December 15, 2016, to shareholders of record on December 1, 2016. For purposes of broker trading, the ex-date of the cash dividend is November 29, 2016.

“Our 3^rd quarter results represent a continuation of several positive trends from previous quarters, including meaningful organic loan growth, increased tangible book value, well controlled operating expenses and strong credit metrics,” said Chairman and CEO Bob Jones. “The fact that we achieved these gains in a challenging, low-rate environment while also successfully completing the conversion of Anchor is a testament to our ability to execute our growth plan. We remain focused on improving efficiencies, as evidenced by our recent decision to consolidate an additional 15 banking centers in the 1^st quarter of 2017.”

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

Total period-end loans, including loans held for sale, increased $90.9 million to $8.966 billion at September 30, 2016, from $8.875 billion at June 30, 2016. This increase represents a 4.1% annualized growth rate. Old National’s new Wisconsin region, the Louisville, Kentucky market, including the Company’s new Lexington office, and the Western Kentucky region all experienced nice growth in their loan portfolios during the 3^rd quarter.

Total period-end core deposits, including demand and interest-bearing deposits, increased $208.9 million to $10.482 billion at September 30, 2016, compared to $10.273 billion at June 30, 2016.

For the 3^rd quarter of 2016, net interest income totaled $107.8 million compared to $99.3 million in the 2^nd quarter of 2016, and $97.1 million in the 3^rd quarter of 2015. On a fully taxable equivalent basis, net interest income was $113.1 million for the 3^rd quarter of 2016 and represented a net interest margin on total average earning assets of 3.60%. These results compare to net interest income on a fully taxable equivalent basis of $104.6 million and a margin of 3.57% in the 2^nd quarter of 2016. In the 3^rd quarter of 2015, Old National reported net interest income on a fully taxable equivalent basis of $102.1 million and a margin of 3.94%.Refer to Table 4 for Non-GAAP taxable equivalent reconciliations.

As part of net interest income, Old National recorded $15.9 million, or a 51 basis point contribution to net interest margin, from accretion income in the 3^rd quarter of 2016 related to purchase accounting discounts from various acquisitions. Total accretion income in the 2^nd quarter of 2016 and the 3^rd quarter of 2015 reported by Old National was $14.2 million, or a 49 basis point net interest margin contribution, and $20.6 million, or an 80 basis point net interest margin contribution, respectively. Excluding accretion income, the core net interest margin was 3.09% in the 3^rd quarter of 2016, compared to 3.08% in the 2^nd quarter of 2016 and 3.14% in the 3^rd quarter of 2015.Refer to Table 4 for Non-GAAP reconciliations.

Noninterest Income

Total noninterest income amounted to $47.2 million in the 3^rd quarter of 2016 and compares to $93.4 million reported in the 2^nd quarter of 2016 and $59.7 million in the 3^rd quarter of 2015. Included in the 2^nd quarter of 2016 was a $41.9 million pre-tax gain on the sale of ONB Insurance Group, Inc. Included in the 3^rd quarter of 2015 was a $15.4 million gain relating to branch sales.

Improve Operating Leverage

For the 3^rd quarter of 2016, Old National’s noninterest expenses totaled $108.1 million. Included in this total are $5.5 million in merger and integration charges related to the partnership with Anchor. Noninterest expenses for the 2^nd quarter of 2016 were $121.5 million and for the 3^rd quarter of 2015 were $102.6 million. Items impacting noninterest expenses for the 2^nd quarter of 2016 include foundation/community support, branch consolidation and severance expenses totaling $6.2 million, as well as merger and integration charges of $7.2 million. As of September 30, 2016, Old National has 201 branches throughout its franchise.

Prudent Use of Capital

Old National’s capital position remained well above regulatory guideline minimums at September 30, 2016, with regulatory tier 1 and total risk-based capital ratios of 11.9% and 12.5%, respectively, compared to 11.8% and 12.4% at June 30, 2016, and 12.5% and 13.2% at September 30, 2015. Old National did not repurchase any stock in the open market during the 3^rd quarter of 2016.

The following table presents Old National’s risk-based and leverage ratios compared to industry requirements:

Table 1	Fully Phased-In Regulatory Guidelines Minimum			Consolidated ONB at September 30, 2016
Tier 1 Risk-Based Capital Ratio		> 8.5	%		11.9	%
Total Risk-Based Capital Ratio		> 10.5	%		12.5	%
Common Equity Tier 1 Capital Ratio		> 7.0	%		11.8	%
Tier 1 Leverage Capital Ratio		> 4.0	%		8.4	%

Old National’s ratio of tangible common equity to tangible assets was 8.13% at September 30, 2016, compared to 8.10% at June 30, 2016, and 7.56% at September 30, 2015.Refer to Table 11 for Non-GAAP reconciliations.

Maintain a Strong Credit Culture

In the 3^rd quarter of 2016, Old National recorded provision expense of $1.3 million and had net charge-offs of $1.6 million. These results compare to $1.3 million in provision expense and net charge-offs of $0.2 million, and provision expense of $0.2 million and net recoveries of $0.9 million, in the 2^nd quarter of 2016 and the 3^rd quarter of 2015, respectively. Net charge-offs for the 3^rd quarter of 2016 were 0.07% of average total loans on an annualized basis, compared to net charge-offs of 0.01% of average total loans in the 2^nd quarter of 2016 and net recoveries of 0.05% of average total loans in the 3^rd quarter of 2015.

Old National continues to report low delinquencies, with 30+ day delinquent loans of 0.36% in the 3^rd quarter of 2016 compared to 0.34% in the 2^nd quarter of 2016. Old National’s 90+ day delinquent loans for the 3^rd quarter were near zero compared to 0.01% in the 2^nd quarter of 2016.

At September 30, 2016, Old National’s allowance for loan losses was $51.5 million, or 0.58% of total loans, compared to an allowance of $51.8 million, or 0.59% of total loans at June 30, 2016, and $51.2 million, or 0.75% of total loans, at September 30, 2015. The coverage ratio (allowance to non-performing loans) stood at 31% at September 30, 2016, compared to 30% at June 30, 2016, and 33% at September 30, 2015.

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

Table 2 – At September 30, 2016 ($ in millions)	ONB Excluding Anchor1			Anchor			ONB Consolidated
Allowance for Loan Losses (ALLL)	$	51.5		$	0.0		$	51.5
Remaining Loan Discount		78.8			65.5			144.3
Total ALLL + Remaining Loan Discount	$	130.3		$	65.5		$	195.8
Pre-Discount Loan Balance	$	7,469.8		$	1,579.5		$	9,049.3
ALLL/Pre-Discount Loan Balance		0.69	%		0.0	%		0.57	%
Mark/Pre-Discount Loan Balance		1.05	%		4.15	%		1.59	%
Combined ALLL & Discount/Pre-Discount Loan Balance		1.74	%		4.15	%		2.16	%

¹ Includes discount on loans acquired through previous partnerships.

The following table presents certain credit quality metrics related to Old National’s loan portfolio:

Table 3 ($ in millions)	3Q16 ONB Excluding Anchor			3Q16 Anchor			3Q16 ONB Consolidated			2Q16			3Q15
Non-Performing Loans (NPLs)	$	130.7		$	34.6		$	165.3		$	174.2		$	154.8
Problem Loans (Including NPLs)		194.2			39.3			233.5			250.2			252.4
Special Mention Loans		109.1			16.7			125.8			106.9			141.2
Net Charge-Off (Recoveries) Ratio		0.06	%		0.1	%		0.07	%		0.01	%		(0.05	)%
Provision for Loan Losses	$	0.8		$	0.5		$	1.3		$	1.3		$	0.2
Allowance for Loan Losses		51.5			0.0			51.5			51.8			51.2

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 $14.7 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, October 31, 2016, to discuss 3^rd 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 October 31 through November 14. To access the replay, dial 1-855-859-2056, Conference ID Code 93788114.

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Table 4 – Non-GAAP Reconciliations-Core Net Interest Margin

($ in millions)	3Q16			2Q16			3Q15
Net Interest Income	$	107.8		$	99.3		$	97.1
Taxable Equivalent Adjustment		5.3			5.3			5.0
Net Interest Income – Taxable Equivalent	$	113.1		$	104.6		$	102.1
Less Accretion1		15.9			14.2			20.6
Core Net Interest Income – Taxable Equivalent Less Accretion	$	97.2		$	90.4		$	81.5
Average Earning Assets	$	12,575.5		$	11,726.4		$	10,364.7
Core Net Interest Margin – Fully Taxable Equivalent		3.09	%		3.08	%		3.14	%

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 5

Financial Highlights

($ and shares in thousands, except per share data)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2016			2016			2015			2016			2015
Income Statement
Net interest income	$	107,803		$	99,340		$	97,104		$	292,786		$	280,194
Provision for loan losses		1,306			1,319			167			2,716			2,439
Noninterest income		47,243			93,385			59,744			190,079			170,018
Noninterest expense		108,062			121,472			102,617			327,889			328,463
Net income		34,709			39,122			37,669			100,808			84,731
Per Common Share Data(Diluted)
Net income available to common shareholders	$	0.25		$	0.31		$	0.33		$	0.80		$	0.73
Average diluted shares outstanding		135,011			127,973			115,153			125,839			116,800
Book value		13.59			13.42			12.89			13.59			12.89
Stock price		14.06			12.53			13.93			14.06			13.93
Dividend payout ratio		52	%		42	%		36	%		49	%		49	%
Tangible common book value (1)		8.43			8.23			7.45			8.43			7.45
Performance Ratios
Return on average assets		0.96	%		1.16	%		1.26	%		1.01	%		0.95	%
Return on average common equity		7.62	%		9.22	%		10.27	%		8.03	%		7.63	%
Net interest margin (FTE)		3.60	%		3.57	%		3.94	%		3.56	%		3.80	%
Efficiency ratio (2)		66.05	%		60.22	%		61.97	%		64.50	%		69.38	%
Net charge-offs (recoveries) to average loans		0.07	%		0.01	%		-0.05	%		0.06	%		-0.02	%
Allowance for loan losses to ending loans		0.58	%		0.59	%		0.75	%		0.58	%		0.75	%
Non-performing loans to ending loans		1.86	%		1.97	%		2.26	%		1.86	%		2.26	%
Balance Sheet
Total loans	$	8,904,985		$	8,830,158		$	6,847,898		$	8,904,985		$	6,847,898
Total assets		14,703,071			14,420,262			11,913,786			14,703,071			11,913,786
Total deposits		10,646,708			10,451,602			8,621,325			10,646,708			8,621,325
Total borrowed funds		2,023,099			1,935,555			1,593,843			2,023,099			1,593,843
Total shareholders’ equity		1,834,457			1,811,117			1,476,002			1,834,457			1,476,002
Capital Ratios (1)
Risk-based capital ratios (EOP):
Tier 1 common equity		11.8	%		11.6	%		12.1	%		11.8	%		12.1	%
Tier 1		11.9	%		11.8	%		12.5	%		11.9	%		12.5	%
Total		12.5	%		12.4	%		13.2	%		12.5	%		13.2	%
Leverage ratio (to average assets)		8.4	%		8.9	%		8.4	%		9.2	%		8.4	%
Total equity to assets (averages)		12.60	%		12.56	%		12.30	%		12.59	%		12.42	%
Tangible common equity to tangible assets		8.13	%		8.10	%		7.56	%		8.13	%		7.56	%
Nonfinancial Data
Full-time equivalent employees		2,910			2,919			2,675			2,910			2,675
Number of branches		201			206			164			201			164

(1) See non-GAAP measures on Table 11.

(2) Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions. This presentation excludes intangible amortization and net securities gains, as is common in other company releases, and better aligns with true operating performance.

FTE - Fully taxable equivalent basis                EOP - End of period actual balances

TABLE 6

Income Statement

($ and shares in thousands, except per share data)

	Three Months Ended								Nine Months Ended
	September 30,		June 30,			September 30,			September 30,		September 30,
	2016		2016			2015			2016		2015
Interest income	$	119,713	$	110,243		$	105,671			325,285	$	304,229
Less: interest expense		11,910		10,903			8,567			32,499		24,035
Net interest income		107,803		99,340			97,104			292,786		280,194
Provision for loan losses		1,306		1,319			167			2,716		2,439
Net interest income after provision for loan losses		106,497		98,021			96,937			290,070		277,755
Wealth management fees		8,572		9,355			8,290			26,048		26,253
Service charges on deposit accounts		11,054		10,437			11,010			31,130		33,333
Debit card and ATM fees		4,330		4,471			3,887			12,586		17,694
Mortgage banking revenue		7,718		5,203			3,170			15,841		10,395
Insurance premiums and commissions		132		7,122			9,938			20,375		32,223
Investment product fees		5,038		4,724			4,427			13,667		13,549
Company-owned life insurance		2,163		2,080			2,195			6,281		6,540
Change in Indemnification Asset		—		888			(6,582	)		233		(9,091	)
Other income		6,517		5,415			7,122			17,356		19,539
Net gain on sale of ONB Insurance Group, Inc.		—		41,864			—			41,864		—
Net gain on branch divestitures		—		—			15,355			—		15,355
Gains (losses) on sales of securities		1,647		1,856			861			4,609		4,056
Gains (losses) on derivatives		72		(30	)		71			89		172
Total noninterest income		47,243		93,385			59,744			190,079		170,018
Salaries and employee benefits		60,861		62,715			58,151			180,548		187,093
Occupancy		12,944		13,568			13,009			39,356		41,443
Equipment		3,564		3,316			2,977			9,773		10,327
Marketing		3,528		5,111			2,727			11,125		8,641
Data processing		8,242		8,676			6,622			24,041		21,289
Communication		2,755		2,535			2,301			7,154		7,480
Professional fees		3,252		5,181			2,435			11,801		8,948
Loan expenses		2,213		2,123			1,420			5,669		4,562
Supplies		799		598			445			1,980		1,710
FDIC assessment		2,149		2,030			1,733			6,098		5,590
Other real estate owned expense		728		2,099			584			3,251		2,221
Intangible amortization		3,233		3,365			2,872			9,245		8,930
Other expense		3,794		10,155			7,341			17,848		20,229
Total noninterest expense		108,062		121,472			102,617			327,889		328,463
Income before income taxes		45,678		69,934			54,064			152,260		119,310
Income tax expense		10,969		30,812			16,395			51,452		34,579
Net income	$	34,709	$	39,122		$	37,669		$	100,808	$	84,731
Diluted Earnings Per Share
Net income	$	0.25	$	0.31		$	0.33		$	0.80	$	0.73
Average Common Shares Outstanding
Basic		134,492		127,508			114,590			125,366		116,272
Diluted		135,011		127,973			115,153			125,839		116,800
Common shares outstanding at end of period		134,985		135,005			114,523			134,985		114,523

TABLE 7

Balance Sheet

($ in thousands)

	September 30,			June 30,			September 30,
	2016			2016			2015
Assets
Federal Reserve Bank account	$	31,634		$	56,433		$	10,901
Money market investments		4,513			5,514			4,590
Investments:
Treasury and government sponsored agencies		622,726			694,264			797,713
Mortgage-backed securities		1,495,683			1,349,805			1,154,134
States and political subdivisions		1,148,147			1,128,700			1,079,678
Other securities		449,614			437,669			429,392
Total investments		3,716,170			3,610,438			3,460,917
Loans held for sale		60,465			44,422			18,783
Loans:
Commercial		1,836,380			1,893,700			1,740,394
Commercial and agriculture real estate		3,092,575			2,943,525			1,845,889
Consumer:
Home equity		481,995			473,550			362,055
Other consumer loans		1,388,803			1,419,613			1,145,232
Subtotal of commercial and consumer loans		6,799,753			6,730,388			5,093,570
Residential real estate		2,105,232			2,099,770			1,640,289
Covered loans		—			—			114,039
Total loans		8,904,985			8,830,158			6,847,898
Total earning assets		12,717,767			12,546,965			10,343,089
Allowance for loan losses		(51,547	)		(51,804	)		(51,226	)
Nonearning Assets:
Cash and due from banks		224,893			205,973			157,919
Premises and equipment		333,266			231,656			130,341
Goodwill and intangible assets		696,128			699,760			622,758
Company-owned life insurance		351,431			350,193			339,352
Net deferred tax assets		169,466			179,448			117,374
Loan servicing rights		25,920			25,756			10,283
FDIC Indemnification Asset		—			—			8,905
Other real estate owned		23,719			24,254			13,705
Other assets		212,028			208,061			221,286
Total nonearning assets		2,036,851			1,925,101			1,621,923
Total assets	$	14,703,071		$	14,420,262		$	11,913,786
Liabilities and Equity
Noninterest-bearing demand deposits	$	2,944,331		$	2,883,917		$	2,388,854
NOW accounts		2,486,190			2,456,963			2,001,077
Savings accounts		2,963,637			2,616,365			2,201,066
Money market accounts		687,895			1,015,336			1,043,135
Other time deposits		1,400,068			1,300,611			926,982
Total core deposits		10,482,121			10,273,192			8,561,114
Brokered CD’s		164,587			178,410			60,211
Total deposits		10,646,708			10,451,602			8,621,325
Short-term borrowings		422,924			567,659			474,894
Other borrowings		1,600,175			1,367,896			1,118,949
Total borrowed funds		2,023,099			1,935,555			1,593,843
Accrued expenses and other liabilities		198,807			221,988			222,616
Total liabilities		12,868,614			12,609,145			10,437,784
Common stock, surplus, and retained earnings		1,853,286			1,834,734			1,510,382
Other comprehensive income		(18,829	)		(23,617	)		(34,380	)
Total shareholders’ equity		1,834,457			1,811,117			1,476,002
Total liabilities and shareholders’ equity	$	14,703,071		$	14,420,262		$	11,913,786

TABLE 8

Average Balance Sheet and Interest Rates

($ in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2016								June 30, 2016								September 30, 2015
	Average			Income (1)/		Yield/			Average			Income (1)/		Yield/			Average			Income (1)/		Yield/
Earning Assets:	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Fed Funds sold, resell agr, Fed Reserve Bank account, and money market	$	21,923		$	23		0.42	%	$	23,604		$	21		0.36	%	$	33,215		$	4		0.05	%
Investments:
Treasury and gov’t sponsored agencies		671,295			3,390		2.02	%		738,642			3,586		1.94	%		820,424			3,926		1.91	%
Mortgage-backed securities		1,414,753			6,353		1.80	%		1,209,231			5,562		1.84	%		1,123,701			5,179		1.84	%
States and political subdivisions		1,139,983			13,329		4.68	%		1,117,367			13,207		4.73	%		1,052,494			12,610		4.79	%
Other securities		446,870			2,566		2.30	%		434,089			2,119		1.98	%		440,588			2,773		2.52	%
Totalinvestments		3,672,901			25,638		2.79	%		3,499,329			24,474		2.80	%		3,437,207			24,488		2.85	%
Loans:
Commercial (2)		1,861,906			18,268		3.84	%		1,825,627			17,709		3.84	%		1,765,028			20,106		4.46	%
Commercial and agriculture real estate (2)		2,975,029			41,906		5.51	%		2,589,342			35,273		5.39	%		1,856,893			34,303		7.23	%
Consumer:
Home equity (2)		483,678			4,895		4.03	%		454,581			6,586		5.83	%		433,517			4,230		3.87	%
Other consumer loans (2)		1,404,947			11,960		3.39	%		1,344,288			11,438		3.42	%		1,140,330			9,976		3.47	%
Subtotal commercial and consumer loans		6,725,560			77,029		4.56	%		6,213,838			71,006		4.60	%		5,195,768			68,615		5.24	%
Residential real estate loans (2)		2,155,070			22,343		4.14	%		1,989,612			20,009		4.03	%		1,698,501			17,529		4.13	%
Total loans (2)		8,880,630			99,372		4.41	%		8,203,450			91,015		4.42	%		6,894,269			86,144		4.93	%
Total earning assets	$	12,575,454		$	125,033		3.94	%	$	11,726,383		$	115,510		3.93	%	$	10,364,691		$	110,636		4.22	%
Less: Allowance for loan losses		(52,809	)							(51,269	)							(51,418	)
Non-Earning Assets:
Cash and due from banks	$	204,991							$	187,974							$	168,229
Other assets		1,721,772								1,655,720								1,444,911
Total assets		14,449,408							$	13,518,808							$	11,926,413
Interest-Bearing Liabilities:
NOW accounts	$	2,461,799		$	456		0.07	%	$	2,416,761		$	405		0.07	%	$	2,099,658		$	148		0.03	%
Savings accounts		2,708,307			962		0.14	%		2,492,202			843		0.14	%		2,278,466			797		0.14	%
Money market accounts		936,232			326		0.14	%		861,791			282		0.13	%		607,060			104		0.07	%
Other time deposits		1,352,876			2,704		0.79	%		1,175,435			2,367		0.81	%		973,729			2,351		0.96	%
Total interest-bearing deposits		7,459,214			4,448		0.24	%		6,946,189			3,897		0.23	%		5,958,913			3,400		0.23	%
Brokered CD’s		174,375			371		0.85	%		174,338			357		0.82	%		43,201			74		0.68	%
Total interest-bearing deposits and CD’s		7,633,589			4,819		0.25	%		7,120,527			4,254		0.24	%		6,002,114			3,474		0.23	%
Short-term borrowings		484,505			324		0.27	%		528,437			410		0.31	%		527,368			141		0.11	%
Other borrowings		1,398,475			6,767		1.92	%		1,251,712			6,239		2.00	%		1,230,541			4,952		1.59	%
Total borrowed funds		1,882,980			7,091		1.50	%		1,780,149			6,649		1.50	%		1,757,909			5,093		1.15	%
Total interest-bearing liabilities	$	9,516,569		$	11,910		0.50	%	$	8,900,676		$	10,903		0.49	%	$	7,760,023		$	8,567		0.44	%
Noninterest-Bearing Liabilities
Demand deposits		2,895,945								2,725,417								2,500,495
Other liabilities		215,620								195,091								199,218
Shareholders’ equity		1,821,274								1,697,624								1,466,677
Total liabilities and shareholders’ equity	$	14,449,408							$	13,518,808							$	11,926,413
Net interest rate spread							3.44	%							3.44	%							3.78	%
Net interest margin (FTE)							3.60	%							3.57	%							3.94	%
FTE adjustment				$	5,320							$	5,267							$	4,965

(1) Interest income is reflected on a fully taxable equivalent basis (FTE).

(2) Includes loans held for sale.

TABLE 9

Average Balance Sheet and Interest Rates

($ in Thousands)

	Nine Months Ended								Nine Months Ended
	September 30, 2016								September 30, 2015
	Average			Income (1)/		Yield/			Average			Income (1)/		Yield/
Earning Assets:	Balance			Expense		Rate			Balance			Expense		Rate
Fed Funds sold, resell agr, Fed Reserve Bank account, and money market	$	29,979		$	93		0.42	%	$	26,103		$	18		0.09	%
Investments:
Treasury and gov’t sponsored agencies		713,285			10,454		1.95	%		849,697			12,423		1.95	%
Mortgage-backed securities		1,225,528			16,992		1.85	%		1,138,591			15,289		1.79	%
States and political subdivisions		1,120,344			39,545		4.71	%		1,002,100			36,227		4.82	%
Other securities		436,466			7,522		2.33	%		448,893			8,267		2.46	%
Total investments		3,495,623			74,513		2.85	%		3,439,281			72,206		2.80	%
Loans:
Commercial (2)		1,823,223			53,138		3.83	%		1,747,199			59,039		4.46	%
Commercial and agriculture real estate (2)		2,488,888			105,217		5.55	%		1,862,351			90,741		6.43	%
Consumer:
Home equity (2)		450,805			15,759		4.67	%		444,814			13,262		3.99	%
Other consumer loans (2)		1,320,386			33,078		3.35	%		1,099,912			29,622		3.60	%
Subtotal commercial and consumer loans		6,083,302			207,192		4.55	%		5,154,276			192,664		5.00	%
Residential real estate loans (2)		1,939,148			59,274		4.08	%		1,726,006			53,721		4.15	%
Total loans (2)		8,022,450			266,466		4.40	%		6,880,282			246,385		4.75	%
Total earning assets	$	11,548,052		$	341,072		3.92	%	$	10,345,666		$	318,609		4.08	%
Less: Allowance for loan losses		(52,054	)							(49,817	)
Non-Earning Assets:
Cash and due from banks	$	186,506							$	178,366
Other assets		1,612,410								1,447,875
Total assets	$	13,294,914							$	11,922,090
Interest-bearing Liabilities:
NOW accounts	$	2,331,596		$	1,099		0.06	%	$	2,192,440		$	469		0.03	%
Savings accounts		2,475,739			2,585		0.14	%		2,330,265			2,415		0.14	%
Money market accounts		784,057			698		0.12	%		626,498			313		0.07	%
Other time deposits		1,147,969			7,184		0.84	%		1,032,254			7,148		0.93	%
Total interest-bearing deposits		6,739,361			11,566		0.23	%		6,181,457			10,345		0.22	%
Brokered CD’s		158,724			1,000		0.84	%		56,076			223		0.53	%
Total interest-bearing deposits and CD’s		6,898,085			12,566		0.24	%		6,237,533			10,568		0.23	%
Short-term borrowings		486,447			916		0.25	%		483,076			349		0.10	%
Other borrowings		1,341,940			19,017		1.89	%		1,016,361			13,118		1.73	%
Total borrowed funds		1,828,387			19,933		1.46	%		1,499,437			13,467		1.20	%
Total interest-bearing liabilities	$	8,726,472		$	32,499		0.50	%	$	7,736,970		$	24,035		0.42	%
Noninterest-Bearing Liabilities
Demand deposits		2,698,873								2,506,414
Other liabilities		195,078								198,398
Shareholders’ equity		1,674,491								1,480,308
Total liabilities and shareholders’ equity	$	13,294,914							$	11,922,090
Net interest rate spread							3.42	%							3.66	%
Net interest margin (FTE)							3.56	%							3.80	%
FTE adjustment				$	15,787							$	14,380

(1) Interest income is reflected on a fully taxable equivalent basis (FTE).

(2) Includes loans held for sale.

TABLE 10

Asset Quality (EOP)

($ in thousands)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2016			2016			2015			2016			2015
Beginning allowance for loan losses	$	51,804		$	50,700		$	50,191		$	52,233		$	47,849
Provision for loan losses		1,306			1,319			167			2,716			2,439
Gross charge-offs		(4,519	)		(2,677	)		(2,508	)		(11,138	)		(8,524	)
Gross recoveries		2,956			2,462			3,376			7,736			9,462
Net (charge-offs) recoveries		(1,563	)		(215	)		868			(3,402	)		938
Ending allowance for loan losses	$	51,547		$	51,804		$	51,226		$	51,547		$	51,226
Net charge-offs (recoveries) / average loans (1)		0.07	%		0.01	%		-0.05	%		0.06	%		-0.02	%
Average loans outstanding (1)	$	8,865,400		$	8,191,544		$	6,791,601		$	8,012,299		$	6,711,061
EOP loans outstanding (1)	$	8,904,985		$	8,830,158		$	6,847,898		$	8,904,985		$	6,847,898
Allowance for loan losses / EOP loans (1)		0.58	%		0.59	%		0.75	%		0.58	%		0.75	%
Underperforming Assets:
Loans 90 Days and over (still accruing)	$	443		$	670		$	569		$	443		$	569
Non-performing loans:
Nonaccrual loans (2)		151,484			160,340			140,664			151,484			140,664
Renegotiated loans		13,860			13,904			14,121			13,860			14,121
Total non-performing loans		165,344			174,244			154,785			165,344			154,785
Foreclosed properties		23,719			24,254			13,705			23,719			13,705
Total underperforming assets	$	189,506		$	199,168		$	169,059		$	189,506		$	169,059
Classified loans - “problem loans”	$	233,469		$	250,214		$	252,397		$	233,469		$	252,397
Other classified assets		6,634			6,392			11,310			6,634			11,310
Criticized loans - “special mention loans”		125,840			106,886			141,187			125,840			141,187
Total classified and criticized assets	$	365,943		$	363,492		$	404,894		$	365,943		$	404,894
Non-performing loans / EOP loans (1)		1.86	%		1.97	%		2.26	%		1.86	%		2.26	%
Allowance to non-performing loans (3)		31	%		30	%		33	%		31	%		33	%
Under-performing assets / EOP loans (1)		2.13	%		2.26	%		2.47	%		2.13	%		2.47	%
EOP total assets	$	14,703,071		$	14,420,262		$	11,913,786		$	14,703,071		$	11,913,786
Under-performing assets / EOP assets		1.29	%		1.38	%		1.42	%		1.29	%		1.42	%

EOP - End of period actual balances

(1) Excludes loans held for sale.

(2) Includes renegotiated loans totaling $29.9 million at September 30, 2016, $38.1 million at June 30, 2016 and $38.6 million at September 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 11

Non-GAAP Measures

($ in thousands)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2016			2016			2015			2016			2015
Actual End of Period Balances
GAAP shareholders’ equity	$	1,834,457		$	1,811,117		$	1,476,002		$	1,834,457		$	1,476,002
Deduct:
Goodwill		655,210			655,523			584,634			655,210			584,634
Intangibles		40,918			44,237			38,124			40,918			38,124
		696,128			699,760			622,758			696,128			622,758
Tangible shareholders’ equity	$	1,138,329		$	1,111,357		$	853,244		$	1,138,329		$	853,244
Actual End of Period Balances
GAAP assets	$	14,703,071		$	14,420,262		$	11,913,786		$	14,703,071		$	11,913,786
Add:
Trust overdrafts		47			337			127			47			127
Deduct:
Goodwill		655,210			655,523			584,634			655,210			584,634
Intangibles		40,918			44,237			38,124			40,918			38,124
		696,128			699,760			622,758			696,128			622,758
Tangible assets	$	14,006,990		$	13,720,839		$	11,291,155		$	14,006,990		$	11,291,155
Risk-weighted assets	$	9,703,233		$	9,624,966		$	7,597,349		$	9,703,233		$	7,597,349
GAAP net income	$	34,709		$	39,122		$	37,669		$	100,808		$	84,731
Add:
Intangible amortization (net of tax)		3,213			3,171			2,596			8,788			8,071
Tangible net income	$	37,922		$	42,293		$	40,265		$	109,596		$	92,802
Tangible Ratios
Return on tangible common equity		13.33	%		15.22	%		18.88	%		12.84	%		14.50	%
Return on tangible assets		1.08	%		1.23	%		1.43	%		1.04	%		1.10	%
Tangible common equity to tangible assets		8.13	%		8.10	%		7.56	%		8.13	%		7.56	%
Tangible common equity to risk-weighted assets		11.73	%		11.55	%		11.23	%		11.73	%		11.23	%
Tangible common book value (1)		8.43			8.23			7.45			8.43			7.45
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	$	1,156,274		$	1,134,978		$	950,915		$	1,156,274		$	950,915
Deduct:
Trust Preferred Securities		45,000			45,000			45,000			45,000			45,000
Additional Tier 1 capital deductions		(30,466	)		(30,760	)		(11,392	)		(30,466	)		(11,392	)
		14,534			14,240			33,608			14,534			33,608
Tier 1 common equity	$	1,141,740		$	1,120,738		$	917,307		$	1,141,740		$	917,307
Risk-weighted assets		9,703,233			9,624,966			7,597,349			9,703,233			7,597,349
Tier 1 common equity to risk-weighted assets		11.77	%		11.64	%		12.07	%		11.77	%		12.07	%