Exhibit 99.1
 |  |
| NASDAQ: ONB | ||
| oldnational.com | ||
| FOR IMMEDIATE RELEASE | ||
| January 24, 2017 | 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 2016 net income is highest in the
Company’s history increasing 15% over 2015 with
organic loan growth exceeding 7%
2016 HIGHLIGHTS:
| • | Earnings of $134.3 million, or $1.05 per share |
| • | Organic loan growth1 of 7.1%; organic commercial and commercial real estate growth of 10.7% |
| • | Tangible book value2 increase of 8.9% over 2015 |
4th QUARTERVS. 3rd QUARTER 2016 HIGHLIGHTS:
| • | Earnings of $33.5 million, or $0.25 per share |
| • | Organic loan growth1 of 6.1% annualized; organic commercial and commercial real estate growth of 9.7% annualized |
| • | Stable Core Net Interest Margin2 |
| 1 | Excludes acquired loans; includes loans held for sale |
| 2 | Non-GAAP measures – refer to Tables 4 & 11 for Non-GAAP reconciliations |
Evansville, Ind. (January 24, 2017) – Today Old National Bancorp (the “Company” or “Old National”) (NASDAQ: ONB) reported full-year 2016 net income of $134.3 million, or $1.05 per diluted share. This net income represents an increase of 15.0% over full-year 2015 net income of $116.7 million, or $1.00 per diluted share, and represents the highest yearly earnings in the Company’s history. The successful conversion and integration of the Company’s largest partnership, strong loan growth and consistently low credit metrics all contributed to this positive year-over-year performance.
For the 4th quarter of 2016, Old National reported net income of $33.5 million, or $0.25 per diluted share. During the current quarter, Old National recognized $12.8 million in pre-tax deferred gains related to the repurchase of various bank properties. Also included in the 4th quarter of 2016 were pre-tax pension termination charges of $9.8 million, pre-tax branch consolidation charges of $5.1 million, pre-tax merger and integration charges of $1.8 million and severance of $1.6 million. These quarterly results compare to net income of $34.7 million in the 3rd quarter of 2016 and $32.0 million recorded in the 4th quarter of 2015. The 3rd quarter of 2016 contained $5.5 million in pre-tax merger and integration charges.
“A strong fourth quarter, driven by 6.1% annualized organic loan growth, capped a year of excellent growth for Old National,” said Chairman and CEO Bob Jones. “Not only did we increase our net income by 15% over 2015 while maintaining exceptional credit quality and increasing our tangible book value by nearly 9%, we accomplished all of this while expanding our franchise into Wisconsin with the largest partnership in our history.”
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 were: 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 December 31, 2016, period-end loans, including loans held for sale, totaled $9.101 billion, an increase of $135.7 million from the $8.966 billion at September 30, 2016. This increase represents a 6.1% annualized organic growth rate. Old National’s Louisville, Kentucky market, including the Company’s new Lexington office, the South Bend market and the Ft. Wayne region all contributed significantly to this loan portfolio growth during the 4th quarter. Old National’s portfolio of commercial and commercial real estate loans grew by 9.7%, annualized, from the 3rd quarter to the 4th quarter of 2016. On an annual basis, period-end loans, including loans held for sale, increased $2.139 billion from December 31, 2015. Excluding the $1.647 billion in loan balances acquired from the Anchor partnership, organic loan growth was $491.9 million, or 7.1%. Commercial and commercial real estate loans grew $395.5 million on an organic basis, net of the $968.6 million acquired from Anchor.
Total period-end core deposits, including demand and interest-bearing deposits, increased $146.6 million, or 5.6% annualized, to $10.629 billion at December 30, 2016, compared to $10.482 billion at September 30, 2016. On an annual basis, period-end deposits, including demand and interest-bearing deposits, increased $2.327 billion from December 31, 2015. Excluding the $1.853 billion in deposit balances assumed from the Anchor partnership, organic deposit growth was $473.9 million, or 5.7%.
Net interest income for the 4th quarter of 2016, totaled $109.9 million compared to $107.8 million in the 3rd quarter of 2016, and $85.9 million in the 4th quarter of 2015. On a fully taxable equivalent basis, net interest income was $115.4 million for the 4th quarter of 2016 and represented a net interest margin on total average earning assets of 3.63%. These results compare to net interest income on a fully taxable equivalent basis of $113.1 million and a margin of 3.60% in the 3rd quarter of 2016. In the 4th quarter of 2015, Old National reported net interest income on a fully taxable equivalent basis of $91.1 million and a margin of 3.50%.Refer to Table 4 for Non-GAAP taxable equivalent reconciliations.
Old National recorded $16.8 million in accretion income as part of net interest income, or a 53 basis points contribution to the net interest margin, in the 4th quarter of 2016. Accretion income is related to purchase accounting discounts from the Company’s various acquisitions. Total accretion income in the 3rd quarter of 2016 and the 4th quarter of 2015 reported by Old National was $15.9 million, or a 51 basis point net interest margin contribution, and $12.3 million, or a 48 basis point net interest margin contribution, respectively. Excluding accretion income, the core net interest margin was 3.10% in the 4th quarter of 2016, compared to 3.09% in the 3rd quarter of 2016 and 3.02% in the 4th quarter of 2015.Refer to Table 4 for Non-GAAP reconciliations.
Noninterest Income
For the 4th quarter of 2016, total noninterest income amounted to $62.8 million and compares to $47.2 million reported in the 3rd quarter of 2016 and $60.6 million in the 4th quarter of 2015. During the 4th quarter of 2016 and the 4th quarter of 2015, Old National recognized pre-tax deferred gains relating to the repurchase of various bank properties in the amount of $12.8 million and $10.8 million, respectively.
Improve Operating Leverage
Old National’s noninterest expenses totaled $126.3 million for the 4th quarter of 2016. Included in this total is a $9.8 million pre-tax charge for the termination of the Company’s pension plan, $5.1 million in pretax charges related to branch consolidations, $1.8 million in pre-tax merger and integration charges and $1.6 million in severance. Noninterest expenses for the 3rd quarter of 2016 were $108.1 million and for the 4th quarter of 2015 were $102.5 million. Items impacting noninterest expenses for the 3rd quarter of 2016 include pre-tax merger and integration charges of $5.5 million. Old National consolidated five branches during 2016 and has closed an additional 15 branches in January 2017. As of December 31, 2016, Old National has 202 branches throughout its franchise.
Prudent Use of Capital
At December 31, 2016, Old National’s capital position remained well above regulatory guideline minimums with regulatory tier 1 and total risk-based capital ratios of 11.7% and 12.2%, respectively, compared to 11.9% and 12.5% at September 30, 2016, and 12.6% and 13.3% at December 31, 2015. Old National did not repurchase any stock in the open market during the 4th quarter or during the entire year 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 December 31, 2016 | ||||||
Tier 1 Risk-Based Capital Ratio | >8.5 | % | 11.7 | % | ||||
Total Risk-Based Capital Ratio | >10.5 | % | 12.2 | % | ||||
Common Equity Tier 1 Capital Ratio | >7.0 | % | 11.5 | % | ||||
Tier 1 Leverage Capital Ratio | >4.0 | % | 8.4 | % | ||||
Old National’s ratio of tangible common equity to tangible assets was 7.92% at December 31, 2016, compared to 8.13% at September 30, 2016, and 7.66% at December 31, 2015.Refer to Table 11 for Non-GAAP reconciliations.
Maintain a Strong Credit Culture
Old National recorded a provision recapture of $1.8 million and had net recoveries of $17 thousand in the 4th quarter of 2016. These results compare to $1.3 million in provision expense and net charge-offs of $1.6 million, and provision expense of $0.5 million and net recoveries of $0.5 million, in the 3rd quarter of 2016 and the 4th quarter of 2015, respectively. Net charge-offs for the 4th quarter of 2016 were 0.00% of average total loans on an annualized basis, compared to net charge-offs of 0.07% of average total loans in the 3rd quarter of 2016 and net recoveries of 0.03% of average total loans in the 4th quarter of 2015.
Delinquencies remained low as Old National reported 30+ day delinquent loans of 0.43% in the 4th quarter of 2016 compared to 0.36% in the 3rd quarter of 2016. Old National’s 90+ day delinquent loans for the 4th and 3rd quarters of 2016 were near zero.
For the full year of 2016, Old National reported net charge-offs of $3.4 million, or 0.04% of average total loans, and recorded provision expense of $1.0 million. This compares to the full year of 2015 with net recoveries of $1.5 million, or 0.02% of average total loans, and provision expense of $2.9 million.
Old National’s allowance for loan losses at December 31, 2016, was $49.8 million, or 0.55% of total loans, compared to an allowance of $51.5 million, or 0.58% of total loans at September 30, 2016, and $52.2 million, or 0.75% of total loans, at December 31, 2015. The coverage ratio (allowance to non-performing loans) stood at 34% at December 31, 2016, compared to 31% at September 30, 2016, and 36% at December 31, 2015.
In accordance with current accounting practices, the loans acquired from Anchor during the 2nd quarter of 2016 were recorded at fair value with no allowance recorded at the acquisition date. When considering both the allowance for loan losses plus the purchase accounting marks, Old National believes it remains appropriately reserved, as demonstrated by the table below.
Table 2 – At December 31, 2016 ($ in millions) | ONB Excluding Anchor1 | Anchor | ONB Consolidated | |||||||||
Allowance for Loan Losses (ALLL) | $ | 49.8 | $ | 0.0 | $ | 49.8 | ||||||
Remaining Loan Discount | 70.6 | 59.1 | 129.7 | |||||||||
Total ALLL + Remaining Loan Discount | $ | 120.4 | $ | 59.1 | $ | 179.5 | ||||||
Pre-Discount Loan Balance | $ | 7,660.8 | $ | 1,479.4 | $ | 9,140.2 | ||||||
ALLL/Pre-Discount Loan Balance | 0.65 | % | 0.00 | % | 0.54 | % | ||||||
Mark/Pre-Discount Loan Balance | 0.92 | % | 4.00 | % | 1.42 | % | ||||||
Combined ALLL & Discount/Pre-Discount Loan Balance | 1.57 | % | 4.00 | % | 1.96 | % | ||||||
| 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) | 4Q16 | 3Q16 | 4Q15 | |||||||||
Non-Performing Loans (NPLs) | $ | 145.8 | $ | 165.3 | $ | 146.7 | ||||||
Problem Loans (Including NPLs) | 220.4 | 233.5 | 213.3 | |||||||||
Special Mention Loans | 95.5 | 125.8 | 134.3 | |||||||||
Net Charge-Off (Recoveries) Ratio | 0.0 | % | 0.07 | % | (0.03 | )% | ||||||
Provision for Loan Losses | ($ | 1.8 | ) | $ | 1.3 | $ | 0.5 | |||||
Allowance for Loan Losses | 49.8 | 51.5 | 52.2 | |||||||||
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 $14.9 billion in assets, it ranks among the top 100 banking companies in the U.S. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients. Today, Old National’s footprint includes Indiana, Kentucky, Michigan and Wisconsin. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investments and brokerage services. For more information and financial data, please visit Investor Relations at oldnational.com.
Conference Call
Old National will hold a conference call at 10:00 a.m. Central Time on Tuesday, January 24, 2017, to discuss 4th quarter and full-year 2016 financial results, strategic developments, and the Company’s financial outlook. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. A replay of the call will also be available from 1:00 p.m. Central Time on January 24 through February 7. To access the replay, dial 1-855-859-2056, Conference ID Code 50911607.
Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
Table 4 –Non-GAAP Reconciliations-Core Net Interest Margin
($ in millions) | 4Q16 | 3Q16 | 4Q15 | |||||||||
Net Interest Income | $ | 109.9 | $ | 107.8 | $ | 85.9 | ||||||
Taxable Equivalent Adjustment | 5.5 | 5.3 | 5.2 | |||||||||
Net Interest Income – Taxable Equivalent | $ | 115.4 | $ | 113.1 | $ | 91.1 | ||||||
Less Accretion1 | 16.8 | 15.9 | 12.3 | |||||||||
Core Net Interest Income – Taxable Equivalent Less Accretion | $ | 98.6 | $ | 97.2 | $ | 78.8 | ||||||
Average Earning Assets | $ | 12,713.3 | $ | 12,575.5 | $ | 10,414.8 | ||||||
Core Net Interest Margin – Fully Taxable Equivalent | 3.10 | % | 3.09 | % | 3.02 | % | ||||||
| 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; changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; failure or disruption of our information systems; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions of litigations; disruptive technologies in payment systems and other services traditionally provided by banks; computer hacking and other cybersecurity threats; other matters discussed in this press release and other factors identified in our Annual Report on Form 10-K and other periodic filings with the SEC. These forward-looking statements are made only as of the date of this press release, and Old National does not undertake an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.
| TABLE 5 | Financial Highlights (unaudited) | |||
| ($ and shares in thousands, except per share data) |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Income Statement | ||||||||||||||||||||
Net interest income | $ | 109,917 | $ | 107,803 | $ | 85,922 | $ | 402,703 | $ | 366,116 | ||||||||||
Provision for loan losses | (1,756 | ) | 1,306 | 484 | 960 | 2,923 | ||||||||||||||
Noninterest income | 62,751 | 47,243 | 60,614 | 252,830 | 230,632 | |||||||||||||||
Noninterest expense | 126,258 | 108,062 | 102,469 | 454,147 | 430,932 | |||||||||||||||
Net income | 33,456 | 34,709 | 31,985 | 134,264 | 116,716 | |||||||||||||||
Per Common Share Data(Diluted) | ||||||||||||||||||||
Net income available to common shareholders | $ | 0.25 | $ | 0.25 | $ | 0.27 | $ | 1.05 | $ | 1.00 | ||||||||||
Average diluted shares outstanding | 135,383 | 135,011 | 114,716 | 128,301 | 116,255 | |||||||||||||||
Book value | 13.42 | 13.59 | 13.05 | 13.42 | 13.05 | |||||||||||||||
Stock price | 18.15 | 14.06 | 13.56 | 18.15 | 13.56 | |||||||||||||||
Dividend payout ratio | 52 | % | 52 | % | 43 | % | 50 | % | 48 | % | ||||||||||
Tangible common book value (1) | 8.30 | 8.43 | 7.62 | 8.30 | 7.62 | |||||||||||||||
Performance Ratios | ||||||||||||||||||||
Return on average assets | 0.91 | % | 0.96 | % | 1.07 | % | 0.98 | % | 0.98 | % | ||||||||||
Return on average common equity | 7.33 | % | 7.62 | % | 8.63 | % | 7.84 | % | 7.88 | % | ||||||||||
Net interest margin (FTE) | 3.63 | % | 3.60 | % | 3.50 | % | 3.58 | % | 3.72 | % | ||||||||||
Efficiency ratio (2) | 69.53 | % | 66.05 | % | 66.42 | % | 65.82 | % | 68.65 | % | ||||||||||
Net charge-offs (recoveries) to average loans | 0.00 | % | 0.07 | % | -0.03 | % | 0.04 | % | -0.02 | % | ||||||||||
Allowance for loan losses to ending loans | 0.55 | % | 0.58 | % | 0.75 | % | 0.55 | % | 0.75 | % | ||||||||||
Non-performing loans to ending loans | 1.62 | % | 1.86 | % | 2.11 | % | 1.62 | % | 2.11 | % | ||||||||||
Balance Sheet | ||||||||||||||||||||
Total loans | $ | 9,010,512 | $ | 8,904,985 | $ | 6,948,405 | $ | 9,010,512 | $ | 6,948,405 | ||||||||||
Total assets | 14,860,237 | 14,703,071 | 11,991,527 | 14,860,237 | 11,991,527 | |||||||||||||||
Total deposits | 10,743,253 | 10,646,708 | 8,400,860 | 10,743,253 | 8,400,860 | |||||||||||||||
Total borrowed funds | 2,152,086 | 2,023,099 | 1,920,246 | 2,152,086 | 1,920,246 | |||||||||||||||
Total shareholders’ equity | 1,814,417 | 1,834,457 | 1,491,170 | 1,814,417 | 1,491,170 | |||||||||||||||
Capital Ratios (1) | ||||||||||||||||||||
Risk-based capital ratios (EOP): | ||||||||||||||||||||
Tier 1 common equity | 11.5 | % | 11.8 | % | 12.1 | % | 11.5 | % | 12.1 | % | ||||||||||
Tier 1 | 11.7 | % | 11.9 | % | 12.6 | % | 11.7 | % | 12.6 | % | ||||||||||
Total | 12.2 | % | 12.5 | % | 13.3 | % | 12.2 | % | 13.3 | % | ||||||||||
Leverage ratio (to average assets) | 8.4 | % | 8.4 | % | 8.5 | % | 8.4 | % | 8.5 | % | ||||||||||
Total equity to assets (averages) | 12.44 | % | 12.60 | % | 12.42 | % | 12.55 | % | 12.42 | % | ||||||||||
Tangible common equity to tangible assets | 7.92 | % | 8.13 | % | 7.66 | % | 7.92 | % | 7.66 | % | ||||||||||
Nonfinancial Data | ||||||||||||||||||||
Full-time equivalent employees | 2,733 | 2,910 | 2,652 | 2,733 | 2,652 | |||||||||||||||
Number of branches | 202 | 201 | 160 | 202 | 160 | |||||||||||||||
| (1) | See non-GAAP measures on Table 11. |
| (2) | Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions. This presentation excludes intangible amortization and net securities gains, as is common in other company releases, and better aligns with true operating performance. |
| FTE – Fully taxable equivalent basis | EOP – End of period actual balances |
| TABLE 6 | Income Statement (unaudited) | |||
| ($ and shares in thousands, except per share data) |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Interest income | $ | 121,849 | $ | 119,713 | $ | 94,960 | 447,134 | $ | 399,189 | |||||||||||
Less: interest expense | 11,932 | 11,910 | 9,038 | 44,431 | 33,073 | |||||||||||||||
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Net interest income | 109,917 | 107,803 | 85,922 | 402,703 | 366,116 | |||||||||||||||
Provision for loan losses | (1,756 | ) | 1,306 | 484 | 960 | 2,923 | ||||||||||||||
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Net interest income after provision for loan losses | 111,673 | 106,497 | 85,438 | 401,743 | 363,193 | |||||||||||||||
Wealth management fees | 8,593 | 8,572 | 8,142 | 34,641 | 34,395 | |||||||||||||||
Service charges on deposit accounts | 10,448 | 11,054 | 10,039 | 41,578 | 43,372 | |||||||||||||||
Debit card and ATM fees | 4,183 | 4,330 | 3,646 | 16,769 | 21,340 | |||||||||||||||
Mortgage banking revenue | 4,399 | 7,718 | 2,145 | 20,240 | 12,540 | |||||||||||||||
Insurance premiums and commissions | 152 | 132 | 10,491 | 20,527 | 42,714 | |||||||||||||||
Investment product fees | 5,155 | 5,038 | 4,375 | 18,822 | 17,924 | |||||||||||||||
Company-owned life insurance | 2,198 | 2,163 | 2,064 | 8,479 | 8,604 | |||||||||||||||
Change in Indemnification Asset | — | — | 57 | 233 | (9,034 | ) | ||||||||||||||
Other income | 26,319 | 6,517 | 17,686 | 43,675 | 37,224 | |||||||||||||||
Net gain on sale of ONB Insurance Group, Inc. | — | — | — | 41,864 | — | |||||||||||||||
Net gain on branch divestitures | — | — | 272 | — | 15,627 | |||||||||||||||
Gains (losses) on sales of securities | 1,239 | 1,647 | 1,662 | 5,848 | 5,718 | |||||||||||||||
Gains (losses) on derivatives | 65 | 72 | 35 | 154 | 208 | |||||||||||||||
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Total noninterest income | 62,751 | 47,243 | 60,614 | 252,830 | 230,632 | |||||||||||||||
Salaries and employee benefits | 72,344 | 60,861 | 56,782 | 252,892 | 243,875 | |||||||||||||||
Occupancy | 11,591 | 12,944 | 11,796 | 50,947 | 53,239 | |||||||||||||||
Equipment | 3,675 | 3,564 | 2,856 | 13,448 | 13,183 | |||||||||||||||
Marketing | 3,495 | 3,528 | 1,769 | 14,620 | 10,410 | |||||||||||||||
Data processing | 7,961 | 8,242 | 6,020 | 32,002 | 27,309 | |||||||||||||||
Communication | 2,805 | 2,755 | 2,106 | 9,959 | 9,586 | |||||||||||||||
Professional fees | 3,904 | 3,252 | 2,808 | 15,705 | 11,756 | |||||||||||||||
Loan expenses | 1,963 | 2,213 | 1,811 | 7,632 | 6,373 | |||||||||||||||
Supplies | 885 | 799 | 565 | 2,865 | 2,275 | |||||||||||||||
FDIC assessment | 2,583 | 2,149 | 1,913 | 8,681 | 7,503 | |||||||||||||||
Other real estate owned expense | 944 | 728 | 482 | 4,195 | 2,703 | |||||||||||||||
Intangible amortization | 3,241 | 3,233 | 2,816 | 12,486 | 11,746 | |||||||||||||||
Other expense | 10,867 | 3,794 | 10,745 | 28,715 | 30,974 | |||||||||||||||
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Total noninterest expense | 126,258 | 108,062 | 102,469 | 454,147 | 430,932 | |||||||||||||||
Income before income taxes | 48,166 | 45,678 | 43,583 | 200,426 | 162,893 | |||||||||||||||
Income tax expense | 14,710 | 10,969 | 11,598 | 66,162 | 46,177 | |||||||||||||||
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Net income | $ | 33,456 | $ | 34,709 | $ | 31,985 | $ | 134,264 | $ | 116,716 | ||||||||||
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Diluted Earnings Per Share | ||||||||||||||||||||
Net income | $ | 0.25 | $ | 0.25 | $ | 0.27 | $ | 1.05 | $ | 1.00 | ||||||||||
Average Common Shares Outstanding | ||||||||||||||||||||
Basic | 134,670 | 134,492 | 114,103 | 127,705 | 115,726 | |||||||||||||||
Diluted | 135,383 | 135,011 | 114,716 | 128,301 | 116,255 | |||||||||||||||
Common shares outstanding at end of period | 135,159 | 134,985 | 114,297 | 135,159 | 114,297 | |||||||||||||||
| TABLE 7 | Balance Sheet (unaudited) | |||
| ($ in thousands) |
| December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
Assets | ||||||||||||
Federal Reserve Bank account | $ | 36,496 | $ | 31,634 | $ | 125,724 | ||||||
Money market investments | 9,642 | 4,513 | 2,783 | |||||||||
Investments: | ||||||||||||
Treasury and government sponsored agencies | 541,190 | 622,726 | 768,564 | |||||||||
Mortgage-backed securities | 1,535,659 | 1,495,683 | 1,082,403 | |||||||||
States and political subdivisions | 1,131,003 | 1,148,147 | 1,100,501 | |||||||||
Other securities | 441,110 | 449,614 | 428,951 | |||||||||
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Total investments | 3,648,962 | 3,716,170 | 3,380,419 | |||||||||
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Loans held for sale | 90,682 | 60,465 | 13,810 | |||||||||
Loans: | ||||||||||||
Commercial | 1,917,099 | 1,836,380 | 1,804,615 | |||||||||
Commercial and agriculture real estate | 3,130,853 | 3,092,575 | 1,847,821 | |||||||||
Consumer: | ||||||||||||
Home equity | 476,439 | 481,995 | 359,954 | |||||||||
Other consumer loans | 1,398,591 | 1,388,803 | 1,183,814 | |||||||||
|
|
|
|
|
| |||||||
Subtotal of commercial and consumer loans | 6,922,982 | 6,799,753 | 5,196,204 | |||||||||
Residential real estate | 2,087,530 | 2,105,232 | 1,644,614 | |||||||||
Covered loans | — | — | 107,587 | |||||||||
|
|
|
|
|
| |||||||
Total loans | 9,010,512 | 8,904,985 | 6,948,405 | |||||||||
|
|
|
|
|
| |||||||
Total earning assets | 12,796,294 | 12,717,767 | 10,471,141 | |||||||||
|
|
|
|
|
| |||||||
Allowance for loan losses | (49,808 | ) | (51,547 | ) | (52,233 | ) | ||||||
Nonearning Assets: | ||||||||||||
Cash and due from banks | 209,381 | 224,893 | 91,311 | |||||||||
Premises and equipment | 429,622 | 333,266 | 196,676 | |||||||||
Goodwill and intangible assets | 692,695 | 696,128 | 619,942 | |||||||||
Company-owned life insurance | 352,956 | 351,431 | 341,294 | |||||||||
Net deferred tax assets | 181,863 | 169,466 | 109,984 | |||||||||
Loan servicing rights | 25,561 | 25,920 | 10,468 | |||||||||
FDIC Indemnification Asset | — | — | 9,030 | |||||||||
Other real estate owned | 18,546 | 23,719 | 12,498 | |||||||||
Other assets | 203,127 | 212,028 | 181,416 | |||||||||
|
|
|
|
|
| |||||||
Total nonearning assets | 2,113,751 | 2,036,851 | 1,572,619 | |||||||||
|
|
|
|
|
| |||||||
Total assets | $ | 14,860,237 | $ | 14,703,071 | $ | 11,991,527 | ||||||
|
|
|
|
|
| |||||||
Liabilities and Equity | ||||||||||||
Noninterest-bearing demand deposits | $ | 3,016,093 | $ | 2,944,331 | $ | 2,488,855 | ||||||
NOW accounts | 2,596,595 | 2,486,190 | 2,133,536 | |||||||||
Savings accounts | 2,954,709 | 2,963,637 | 2,201,352 | |||||||||
Money market accounts | 707,748 | 687,895 | 577,050 | |||||||||
Other time deposits | 1,353,614 | 1,400,068 | 901,352 | |||||||||
|
|
|
|
|
| |||||||
Total core deposits | 10,628,759 | 10,482,121 | 8,302,145 | |||||||||
Brokered CD’s | 114,494 | 164,587 | 98,715 | |||||||||
|
|
|
|
|
| |||||||
Total deposits | 10,743,253 | 10,646,708 | 8,400,860 | |||||||||
Federal funds purchased and interbank borrowings | 213,003 | 125,121 | 291,090 | |||||||||
Securities sold under agreements to repurchase | 367,052 | 347,804 | 387,409 | |||||||||
Federal Home Loan Bank advances | 1,353,092 | 1,331,379 | 1,023,491 | |||||||||
Other borrowings | 218,939 | 218,795 | 218,256 | |||||||||
|
|
|
|
|
| |||||||
Total borrowed funds | 2,152,086 | 2,023,099 | 1,920,246 | |||||||||
Accrued expenses and other liabilities | 150,481 | 198,807 | 179,251 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 13,045,820 | 12,868,614 | 10,500,357 | |||||||||
Common stock, surplus, and retained earnings | 1,873,789 | 1,853,286 | 1,525,967 | |||||||||
Other comprehensive income | (59,372 | ) | (18,829 | ) | (34,797 | ) | ||||||
|
|
|
|
|
| |||||||
Total shareholders’ equity | 1,814,417 | 1,834,457 | 1,491,170 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities and shareholders’ equity | $ | 14,860,237 | $ | 14,703,071 | $ | 11,991,527 | ||||||
|
|
|
|
|
| |||||||
| TABLE 8 | Average Balance Sheet and Interest Rates (unaudited) | |||
| ($ in thousands) |
| Three Months Ended December 31, 2016 | Three Months Ended September 30, 2016 | Three Months Ended December 31, 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 | $ | 40,791 | $ | 37 | 0.36 | % | $ | 21,923 | $ | 23 | 0.42 | % | $ | 94,660 | $ | 29 | 0.12 | % | ||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||
Treasury and gov’t sponsored agencies | 551,665 | 2,754 | 2.00 | % | 671,295 | 3,390 | 2.02 | % | 770,472 | 3,658 | 1.90 | % | ||||||||||||||||||||||||
Mortgage-backed securities | 1,504,887 | 7,182 | 1.91 | % | 1,414,753 | 6,353 | 1.80 | % | 1,134,521 | 5,356 | 1.89 | % | ||||||||||||||||||||||||
States and political subdivisions | 1,141,703 | 13,458 | 4.72 | % | 1,139,983 | 13,329 | 4.68 | % | 1,088,917 | 12,935 | 4.75 | % | ||||||||||||||||||||||||
Other securities | 445,877 | 2,868 | 2.57 | % | 446,870 | 2,566 | 2.30 | % | 431,541 | 2,635 | 2.44 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total investments | 3,644,132 | 26,262 | 2.88 | % | 3,672,901 | 25,638 | 2.79 | % | 3,425,451 | 24,584 | 2.87 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Commercial (2) | 1,871,338 | 17,453 | 3.65 | % | 1,861,906 | 18,268 | 3.84 | % | 1,773,804 | 16,861 | 3.72 | % | ||||||||||||||||||||||||
Commercial and agriculture real estate (2) | 3,125,500 | 45,375 | 5.68 | % | 2,975,029 | 41,906 | 5.51 | % | 1,860,536 | 27,496 | 5.78 | % | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||
Home equity (2) | 485,984 | 4,597 | 3.76 | % | 483,678 | 4,895 | 4.03 | % | 424,013 | 4,218 | 3.95 | % | ||||||||||||||||||||||||
Other consumer loans (2) | 1,384,017 | 11,942 | 3.43 | % | 1,404,947 | 11,960 | 3.39 | % | 1,160,652 | 9,747 | 3.33 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Subtotal commercial and consumer loans | 6,866,839 | 79,367 | 4.60 | % | 6,725,560 | 77,029 | 4.56 | % | 5,219,005 | 58,322 | 4.43 | % | ||||||||||||||||||||||||
Residential real estate loans (2) | 2,161,583 | 21,689 | 4.00 | % | 2,155,070 | 22,343 | 4.14 | % | 1,675,707 | 17,188 | 4.10 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total loans (2) | 9,028,422 | 101,056 | 4.42 | % | 8,880,630 | 99,372 | 4.41 | % | 6,894,712 | 75,510 | 4.32 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total earning assets | $ | 12,713,345 | $ | 127,355 | 3.97 | % | $ | 12,575,454 | $ | 125,033 | 3.94 | % | $ | 10,414,823 | $ | 100,123 | 3.80 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Less: Allowance for loan losses | (52,691 | ) | (52,809 | ) | (52,677 | ) | ||||||||||||||||||||||||||||||
Non-Earning Assets: | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 209,957 | $ | 204,991 | $ | 118,494 | ||||||||||||||||||||||||||||||
Other assets | 1,806,507 | 1,721,772 | 1,460,768 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total assets | 14,677,118 | $ | 14,449,408 | $ | 11,941,408 | |||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 2,560,533 | $ | 430 | 0.07 | % | $ | 2,461,799 | $ | 456 | 0.07 | % | $ | 2,063,815 | $ | 289 | 0.06 | % | ||||||||||||||||||
Savings accounts | 2,952,666 | 1,138 | 0.15 | % | 2,708,307 | 962 | 0.14 | % | 2,207,640 | 784 | 0.14 | % | ||||||||||||||||||||||||
Money market accounts | 703,904 | 142 | 0.08 | % | 936,232 | 326 | 0.14 | % | 828,501 | 263 | 0.13 | % | ||||||||||||||||||||||||
Other time deposits | 1,392,410 | 2,714 | 0.78 | % | 1,352,876 | 2,704 | 0.79 | % | 909,985 | 2,123 | 0.93 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total interest-bearing deposits | 7,609,513 | 4,424 | 0.23 | % | 7,459,214 | 4,448 | 0.24 | % | 6,009,941 | 3,459 | 0.23 | % | ||||||||||||||||||||||||
Brokered CD’s | 132,901 | 293 | 0.88 | % | 174,375 | 371 | 0.85 | % | 80,951 | 141 | 0.69 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total interest-bearing deposits and CD’s | 7,742,414 | 4,717 | 0.24 | % | 7,633,589 | 4,819 | 0.25 | % | 6,090,892 | 3,600 | 0.23 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Federal funds purchased and interbank borrowings | 79,913 | 107 | 0.53 | % | 178,770 | 226 | 0.50 | % | 114,174 | 83 | 0.29 | % | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | 354,709 | 370 | 0.41 | % | 355,735 | 375 | 0.42 | % | 415,586 | 378 | 0.36 | % | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 1,264,368 | 4,383 | 1.38 | % | 1,129,756 | 4,137 | 1.46 | % | 927,988 | 2,714 | 1.16 | % | ||||||||||||||||||||||||
Other borrowings | 218,860 | 2,355 | 4.30 | % | 218,719 | 2,353 | 4.30 | % | 218,178 | 2,263 | 4.15 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total borrowed funds | 1,917,850 | 7,215 | 1.50 | % | 1,882,980 | 7,091 | 1.50 | % | 1,675,926 | 5,438 | 1.29 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total interest-bearing liabilities | $ | 9,660,264 | $ | 11,932 | 0.49 | % | $ | 9,516,569 | $ | 11,910 | 0.50 | % | $ | 7,766,818 | $ | 9,038 | 0.46 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Noninterest-Bearing Liabilities | ||||||||||||||||||||||||||||||||||||
Demand deposits | 3,006,263 | 2,895,945 | 2,483,234 | |||||||||||||||||||||||||||||||||
Other liabilities | 184,598 | 215,620 | 208,696 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 1,825,993 | 1,821,274 | 1,482,660 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 14,677,118 | $ | 14,449,408 | $ | 11,941,408 | ||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net interest rate spread | 3.48 | % | 3.44 | % | 3.34 | % | ||||||||||||||||||||||||||||||
Net interest margin (FTE) | 3.63 | % | 3.60 | % | 3.50 | % | ||||||||||||||||||||||||||||||
FTE adjustment | $ | 5,506 | $ | 5,320 | $ | 5,163 | ||||||||||||||||||||||||||||||
| (1) | Interest income is reflected on a fully taxable equivalent basis (FTE). |
| (2) | Includes loans held for sale. |
| TABLE 9 | Average Balance Sheet and Interest Rates (unaudited) | |||
| ($ in thousands) |
| Twelve Months Ended December 31, 2016 | Twelve Months Ended December 31, 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 | $ | 32,697 | $ | 130 | 0.40 | % | $ | 43,383 | $ | 47 | 0.11 | % | ||||||||||||
Investments: | ||||||||||||||||||||||||
Treasury and gov’t sponsored agencies | 672,659 | 13,207 | 1.96 | % | 829,728 | 16,080 | 1.94 | % | ||||||||||||||||
Mortgage-backed securities | 1,295,749 | 24,174 | 1.87 | % | 1,137,565 | 20,645 | 1.81 | % | ||||||||||||||||
States and political subdivisions | 1,125,713 | 53,003 | 4.71 | % | 1,023,983 | 49,162 | 4.80 | % | ||||||||||||||||
Other securities | 438,832 | 10,391 | 2.37 | % | 444,520 | 10,903 | 2.45 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total investments | 3,532,953 | 100,775 | 2.85 | % | 3,435,796 | 96,790 | 2.82 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Loans: | ||||||||||||||||||||||||
Commercial (2) | 1,835,317 | 70,591 | 3.85 | % | 1,754,141 | 75,900 | 4.33 | % | ||||||||||||||||
Commercial and agriculture real estate (2) | 2,648,911 | 150,592 | 5.69 | % | 1,862,055 | 118,237 | 6.35 | % | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity (2) | 459,648 | 20,356 | 4.43 | % | 439,657 | 17,480 | 3.98 | % | ||||||||||||||||
Other consumer loans (2) | 1,336,381 | 45,020 | 3.37 | % | 1,115,430 | 39,370 | 3.53 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Subtotal commercial and consumer loans | 6,280,257 | 286,559 | 4.56 | % | 5,171,283 | 250,987 | 4.85 | % | ||||||||||||||||
Residential real estate loans (2) | 1,995,060 | 80,963 | 4.06 | % | 1,712,636 | 70,908 | 4.14 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans (2) | 8,275,317 | 367,522 | 4.44 | % | 6,883,919 | 321,895 | 4.68 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total earning assets | $ | 11,840,967 | $ | 468,427 | 3.96 | % | $ | 10,363,098 | $ | 418,732 | 4.04 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less: Allowance for loan losses | (52,215 | ) | (50,538 | ) | ||||||||||||||||||||
Non-Earning Assets: | ||||||||||||||||||||||||
Cash and due from banks | $ | 192,401 | $ | 163,275 | ||||||||||||||||||||
Other assets | 1,661,200 | 1,451,125 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 13,642,353 | $ | 11,926,960 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Interest-bearing Liabilities: | ||||||||||||||||||||||||
NOW accounts | $ | 2,389,143 | $ | 1,529 | 0.06 | % | $ | 2,160,019 | $ | 758 | 0.04 | % | ||||||||||||
Savings accounts | 2,595,622 | 3,723 | 0.14 | % | 2,299,357 | 3,199 | 0.14 | % | ||||||||||||||||
Money market accounts | 763,909 | 840 | 0.11 | % | 677,414 | 577 | 0.09 | % | ||||||||||||||||
Other time deposits | 1,209,414 | 9,898 | 0.82 | % | 1,001,436 | 9,270 | 0.93 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing deposits | 6,958,088 | 15,990 | 0.23 | % | 6,138,226 | 13,804 | 0.23 | % | ||||||||||||||||
Brokered CD’s | 152,233 | 1,293 | 0.85 | % | 62,346 | 364 | 0.58 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing deposits and CD’s | 7,110,321 | 17,283 | 0.24 | % | 6,200,572 | 14,168 | 0.23 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Federal funds purchased and interbank borrowings | 137,997 | 673 | 0.49 | % | 126,124 | 265 | 0.21 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 368,757 | 1,509 | 0.41 | % | 406,117 | 1,488 | 0.37 | % | ||||||||||||||||
Federal Home Loan Bank advances | 1,121,413 | 15,547 | 1.39 | % | 793,703 | 8,122 | 1.02 | % | ||||||||||||||||
Other borrowings | 222,708 | 9,419 | 4.23 | % | 217,978 | 9,030 | 4.14 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total borrowed funds | 1,850,875 | 27,148 | 1.47 | % | 1,543,922 | 18,905 | 1.22 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | $ | 8,961,196 | $ | 44,431 | 0.50 | % | $ | 7,744,494 | $ | 33,073 | 0.43 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Noninterest-Bearing Liabilities | ||||||||||||||||||||||||
Demand deposits | 2,776,140 | 2,500,571 | ||||||||||||||||||||||
Other liabilities | 192,443 | 200,994 | ||||||||||||||||||||||
Shareholders’ equity | 1,712,574 | 1,480,901 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 13,642,353 | $ | 11,926,960 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest rate spread | 3.46 | % | 3.61 | % | ||||||||||||||||||||
Net interest margin (FTE) | 3.58 | % | 3.72 | % | ||||||||||||||||||||
FTE adjustment | $ | 21,293 | $ | 19,543 | ||||||||||||||||||||
| (1) | Interest income is reflected on a fully taxable equivalent basis (FTE). |
| (2) | Includes loans held for sale. |
| TABLE 10 | Asset Quality (EOP) (unaudited) | |||
| ($ in thousands) |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Beginning allowance for loan losses | $ | 51,547 | $ | 51,804 | $ | 51,226 | $ | 52,233 | $ | 47,849 | ||||||||||
Provision for loan losses | (1,756 | ) | 1,306 | 484 | 960 | 2,923 | ||||||||||||||
Gross charge-offs | (3,472 | ) | (4,519 | ) | (4,353 | ) | (14,610 | ) | (12,877 | ) | ||||||||||
Gross recoveries | 3,489 | 2,956 | 4,876 | 11,225 | 14,338 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net (charge-offs) recoveries | 17 | (1,563 | ) | 523 | (3,385 | ) | 1,461 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ending allowance for loan losses | $ | 49,808 | $ | 51,547 | $ | 52,233 | $ | 49,808 | $ | 52,233 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net charge-offs (recoveries) / average loans (1) | 0.00 | % | 0.07 | % | -0.03 | % | 0.04 | % | -0.02 | % | ||||||||||
Average loans outstanding (1) | $ | 9,018,280 | $ | 8,865,400 | $ | 6,891,197 | $ | 8,265,169 | $ | 6,756,135 | ||||||||||
EOP loans outstanding (1) | $ | 9,010,512 | $ | 8,904,985 | $ | 6,948,405 | $ | 9,010,512 | $ | 6,948,405 | ||||||||||
Allowance for loan losses / EOP loans (1) | 0.55 | % | 0.58 | % | 0.75 | % | 0.55 | % | 0.75 | % | ||||||||||
Underperforming Assets: | ||||||||||||||||||||
Loans 90 Days and over (still accruing) | $ | 328 | $ | 443 | $ | 916 | $ | 328 | $ | 916 | ||||||||||
Non-performing loans: | ||||||||||||||||||||
Nonaccrual loans (2) | 131,407 | 151,484 | 132,373 | 131,407 | 132,373 | |||||||||||||||
Renegotiated loans | 14,376 | 13,860 | 14,285 | 14,376 | 14,285 | |||||||||||||||
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Total non-performing loans | 145,783 | 165,344 | 146,658 | 145,783 | 146,658 | |||||||||||||||
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Foreclosed properties | 18,546 | 23,719 | 12,498 | 18,546 | 12,498 | |||||||||||||||
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|
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Total underperforming assets | $ | 164,657 | $ | 189,506 | $ | 160,072 | $ | 164,657 | $ | 160,072 | ||||||||||
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Classified loans – “problem loans” | $ | 220,429 | $ | 233,469 | $ | 213,294 | $ | 220,429 | $ | 213,294 | ||||||||||
Other classified assets | 7,063 | 6,634 | 6,857 | 7,063 | 6,857 | |||||||||||||||
Criticized loans – “special mention loans” | 95,462 | 125,840 | 134,347 | 95,462 | 134,347 | |||||||||||||||
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Total classified and criticized assets | $ | 322,954 | $ | 365,943 | $ | 354,498 | $ | 322,954 | $ | 354,498 | ||||||||||
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Non-performing loans / EOP loans (1) | 1.62 | % | 1.86 | % | 2.11 | % | 1.62 | % | 2.11 | % | ||||||||||
Allowance to non-performing loans (3) | 34 | % | 31 | % | 36 | % | 34 | % | 36 | % | ||||||||||
Under-performing assets / EOP loans (1) | 1.83 | % | 2.13 | % | 2.30 | % | 1.83 | % | 2.30 | % | ||||||||||
EOP total assets | $ | 14,860,237 | $ | 14,703,071 | $ | 11,991,527 | $ | 14,860,237 | $ | 11,991,527 | ||||||||||
Under-performing assets / EOP assets | 1.11 | % | 1.29 | % | 1.33 | % | 1.11 | % | 1.33 | % | ||||||||||
EOP – End of period actual balances
| (1) | Excludes loans held for sale. |
| (2) | Includes renegotiated loans totaling $26.3 million at December 31, 2016, $29.9 million at September 30, 2016 and $30.0 million at December 31, 2015. |
| (3) | Includes acquired loans that were recorded at fair value in accordance with ASC 805 at the date of acquisition. As such, the credit risk was incorporated in the fair value recorded and no allowance for loan losses was recorded on the acquisition date. |
| TABLE 11 | Non-GAAP Measures (unaudited) | |||
| ($ in thousands) |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Actual End of Period Balances | ||||||||||||||||||||
GAAP shareholders’ equity | $ | 1,814,417 | $ | 1,834,457 | $ | 1,491,170 | $ | 1,814,417 | $ | 1,491,170 | ||||||||||
Deduct: | ||||||||||||||||||||
Goodwill | 655,018 | 655,210 | 584,634 | 655,018 | 584,634 | |||||||||||||||
Intangibles | 37,677 | 40,918 | 35,308 | 37,677 | 35,308 | |||||||||||||||
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| |||||||||||
| 692,695 | 696,128 | 619,942 | 692,695 | 619,942 | ||||||||||||||||
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Tangible shareholders’ equity | $ | 1,121,722 | $ | 1,138,329 | $ | 871,228 | $ | 1,121,722 | $ | 871,228 | ||||||||||
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Actual End of Period Balances | ||||||||||||||||||||
GAAP assets | $ | 14,860,237 | $ | 14,703,071 | $ | 11,991,527 | $ | 14,860,237 | $ | 11,991,527 | ||||||||||
Add: | ||||||||||||||||||||
Trust overdrafts | 122 | 47 | 29 | 122 | 29 | |||||||||||||||
Deduct: | ||||||||||||||||||||
Goodwill | 655,018 | 655,210 | 584,634 | 655,018 | 584,634 | |||||||||||||||
Intangibles | 37,677 | 40,918 | 35,308 | 37,677 | 35,308 | |||||||||||||||
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| 692,695 | 696,128 | 619,942 | 692,695 | 619,942 | ||||||||||||||||
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Tangible assets | $ | 14,167,664 | $ | 14,006,990 | $ | 11,371,614 | $ | 14,167,664 | $ | 11,371,614 | ||||||||||
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Risk-weighted assets | $ | 10,101,539 | $ | 9,703,233 | $ | 7,718,065 | $ | 10,101,539 | $ | 7,718,065 | ||||||||||
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GAAP net income | $ | 33,456 | $ | 34,709 | $ | 31,985 | $ | 134,264 | $ | 116,716 | ||||||||||
Add: | ||||||||||||||||||||
Intangible amortization (net of tax) | 3,192 | 3,213 | 2,545 | 11,979 | 10,593 | |||||||||||||||
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Tangible net income | $ | 36,648 | $ | 37,922 | $ | 34,530 | $ | 146,243 | $ | 127,309 | ||||||||||
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Tangible Ratios | ||||||||||||||||||||
Return on tangible common equity | 13.07 | % | 13.33 | % | 15.85 | % | 13.04 | % | 14.61 | % | ||||||||||
Return on tangible assets | 1.03 | % | 1.08 | % | 1.21 | % | 1.03 | % | 1.12 | % | ||||||||||
Tangible common equity to tangible assets | 7.92 | % | 8.13 | % | 7.66 | % | 7.92 | % | 7.66 | % | ||||||||||
Tangible common equity to risk-weighted assets | 11.10 | % | 11.73 | % | 11.29 | % | 11.10 | % | 11.29 | % | ||||||||||
Tangible common book value (1) | 8.30 | 8.43 | 7.62 | 8.30 | 7.62 | |||||||||||||||
Tangible common equity presentation includes other comprehensive income as is common in other company releases. |
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(1) Tangible common shareholders’ equity divided by common shares issued and outstanding at period-end. |
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Tier 1 capital | $ | 1,176,849 | $ | 1,156,274 | $ | 968,772 | $ | 1,176,849 | $ | 968,772 | ||||||||||
Deduct: | ||||||||||||||||||||
Trust Preferred Securities | 45,000 | 45,000 | 45,000 | 45,000 | 45,000 | |||||||||||||||
Additional Tier 1 capital deductions | (30,968 | ) | (30,466 | ) | (10,725 | ) | (30,968 | ) | (10,725 | ) | ||||||||||
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| |||||||||||
| 14,032 | 14,534 | 34,275 | 14,032 | 34,275 | ||||||||||||||||
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Tier 1 common equity | $ | 1,162,817 | $ | 1,141,740 | $ | 934,497 | $ | 1,162,817 | $ | 934,497 | ||||||||||
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Risk-weighted assets | 10,101,539 | 9,703,233 | 7,718,065 | 10,101,539 | 7,718,065 | |||||||||||||||
Tier 1 common equity to risk-weighted assets | 11.51 | % | 11.77 | % | 12.11 | % | 11.51 | % | 12.11 | % | ||||||||||