Old National Bancorp (ONB) 8-K Old National reports record 3rd quarter net income of $51.3 million, a 30.4% increase from a year ago

Exhibit 99.1

Old National Bancorp     One Main Street Evansville, IN 47708 oldnational.com Media: Kathy A. Schoettlin (812)465-7269 Investors: Lynell J. Walton (812)464-1366

Old National reports record 3^rd quarter net income of $51.3 million, a 30.4% increase from a year ago

Evansville, Ind. (October 22, 2018)

Old National Bancorp (NASDAQ: ONB) reports record 3Q18 net income of $51.3 million, diluted EPS of $0.34. Adjusted¹net income of $52.4 million, or $0.34 per share.

CEO COMMENTARY:

“Our record earnings for the quarter were highlighted by positive operating leverage, a modest increase in core deposit costs, stable credit, and a continued focus on expense control,” stated Chairman and CEO Bob Jones. “We were also pleased to see a 21% increase in year-over-year adjustedpre-provision net revenue. While loan balances were stable for the quarter, our loan pipeline atquarter-end remained strong. These strong 3^rdquarter results position Old National very well for continued growth.”

THIRD-QUARTER HIGHLIGHTS²:

Net Income	•   Net income of $51.3 million, an increase of 30.4% from third quarter of 2017
	•   Earnings per share of $0.34, an increase of 17.2% from third quarter of 2017
Net Interest Income/NIM	•   Net interest income on a fully taxable equivalent basis was $133.6 million, down 0.9%
	•   Net interest margin on a fully taxable equivalent basis was 3.51% compared to 3.55%
Operating Performance	•   Pre-provision net revenue1(“PPNR”) was $60.2 million
	•   Adjusted PPNR1was $70.9 million, up 8.1%
	•   Noninterest expense was $119.4 million
	•   Adjusted noninterest expense1was $108.4 million, compared to $114.5 million
	•   Efficiency ratio1was 64.71%
	•   Adjusted efficiency ratio1was 58.67%, a251-basis point improvement from third quarter of 2017
Loans and Credit Quality	•   End-of-period total loans3were $11,314.0 million compared to $11,321.8 million
	•   End-of-period commercial and industrial loans were $2,949.3 million compared to $2,962.9 million
	•   Third quarter total commercial production was $455.2 million; September 30 pipeline was $1.7 billion
	•   Provision for loan losses of $0.8 million compared to $2.4 million in the second quarter
	•   Net charge-offs were $1.7 million, or 0.06% annualized, compared to net recoveries of $0.8 million
	•   Non-performing loans were 1.47% of total loans compared to 1.38%
Capital Returns	•   Return on average equity was 9.28%
	•   Return on average tangible common equity1was 16.10%
	•   Adjusted return on average tangible common equity1 was 16.42%
Notable Items	•   $1.7 million in merger/integration charges and a $0.1 million net gain in branch actions
	•   $9.2 million in tax credit amortization
	•   Footprint rationalization continues with the pending sale of 10 branches, expected to close October 26, 2018

¹ Non-GAAP financial measure that Management believes is useful in evaluating the financial results of the Company – please refer to theNon-GAAP reconciliations contained in this release

²  Comparisons are on a linked-quarter basis, unless otherwise noted

³  Includes loans held for sale

RESULTS OF OPERATIONS

Old National Bancorp reported record third-quarter 2018 net income of $51.3 million, or $0.34 per diluted share.

Included in the third quarter werepre-tax charges of $1.7 million for merger and integration and a $0.1 million net gain for branch actions. Excluding these items from the current quarter and netting out securities gains, Old National would have reported net income of $52.4 million, or $0.34 per share.

As was previously disclosed, Old National entered into a branch purchase and assumption agreement for the sale of 10 Old National branches in Wisconsin to Marine Credit Union of La Crosse, Wisconsin. The sale is expected to close October 26, 2018.

LOANS

Period-end pipeline remains strong; quarterly balances stable.

• Period-end total loans decreased slightly to $11,314.0 million at September 30, 2018 from $11,321.8 million at June 30, 2018.

• Third quarter commercial loan production was $455.2 million, whileperiod-end pipeline totaled $1.7 billion.

• On average, total loans in the third quarter were $11,291.7 million, up from $11,262.0 million in the second quarter of 2018.

• Average total loans increased $29.7 million, or 1.1% annualized.

• Average commercial and industrial loan growth was $55.0 million, or 7.7% on an annualized basis.

DEPOSITS

Alow-cost core deposit franchise continues to be one of Old National’s strengths.

• Period-end total deposits increased to $12,598.2 million at September 30, 2018, from $12,596.4 million at June 30, 2018.

• On average, total deposits in the third quarter were $12,597.8 million, down from the $12,650.8 million in the second quarter of 2018.

NET INTEREST INCOME AND MARGIN

Controlled deposit costs and higher levels of interest collected on nonaccruals benefited both net interest income and margin in the third quarter.

• Net interest income decreased to $130.8 million in the third quarter of 2018 from $132.0 million in the second quarter of 2018, primarily the result of a smaller balance sheet and slightly lower accretion income.

• The net interest margin on a fully taxable equivalent basis decreased 4 basis points to 3.51% compared to 3.55% in the second quarter of 2018.

• Accretion income was $7.3 million, or 19 basis points of net interest margin, in the third quarter of 2018 compared to $11.5 million, or 30 basis points of net interest margin, in the second quarter of 2018. In the third quarter of 2018, accretion income was just 4.1% of adjusted total revenue.

• The cost of total deposits rose 7 basis points to 0.36% in the third quarter of 2018 while the cost of total interest-bearing deposits rose 8 basis points to 0.49%.

CREDIT QUALITY

Exceptional credit quality remains a hallmark of the Old National franchise.

• Asset quality remained strong with net charge-offs in the third quarter of $1.7 million, or 0.06% of total average loans, and30-89 day delinquencies of 0.35%.

• Provision expense for the third quarter was $0.8 million, reflected limited growth in the commercial portfolio this quarter, stable credit in the organic book, and improvement in acquired loan grades.

• Non-performing loans as a percentage of total loans was 1.47%.

• In accordance with current accounting practices, the loans acquired from recent acquisitions were recorded at fair value with no allowance recorded at the acquisition date. As of September 30, 2018, the remaining discount on these acquired loans was $103.1 million.

• The allowance for loan losses was $52.7 million, or 0.47% of total loans at September 30, 2018.

NONINTEREST INCOME

Noninterest income declined compared to second quarter and demonstrated normal seasonal patterns in several fee income businesses.

• Total noninterest income for the third quarter of 2018 was $46.0 million, a decrease of $3.3 million from the second quarter of 2018.

• Included in noninterest income in the second quarter was a gain of $2.2 million from the sale of Old National’s student loan portfolio.

• Higher capital markets income (up $1.8 million) was offset by seasonal declines in mortgage banking revenue (down $0.8 million) and wealth management fees (down $0.7 million).

• Securities gains were $0.1 million, down $1.4 million from the second quarter of 2018.

NONINTEREST EXPENSE

Third quarter results demonstrated continued discipline with respect to expense management, helping to drive positive operating leverage¹.

• Noninterest expense for the third quarter of 2018 was $119.4 million and included $1.7 million in merger and integration charges, $0.1 million in branch action charges, and $9.2 million in tax credit amortization.

• Excluding these items, adjusted noninterest expense for the third quarter was $108.4 million, compared to the $114.5 million in adjusted noninterest expense in the second quarter of 2018.

• Adjusted operating leverage¹ was +434 basis points in the third quarter compared to a year ago.

• The third quarter efficiency ratio was 64.71%, while the adjusted efficiency ratio was 58.67%.

INCOME TAXES

• On a fully taxable-equivalent basis, income tax expense in the third quarter was $8.1 million, resulting in a 13.6% FTE tax rate.

CAPITAL

Strong quarterly earnings drove capital ratios higher.

• At the end of the third quarter, total risk-based capital was 12.1% and regulatory tier 1 capital was 11.1%.

• Tangible common equity to tangible assets was 8.08% at the end of the third quarter compared to 7.98% in the second quarter of 2018.

NON-GAAP RECONCILIATIONS

($ in millions, except EPS, shares in 000s)	3Q18			Adjustments4			Adjusted 3Q18
Total Revenues (FTE)	$	179.6		($	0.3	)	$	179.3
Less: Provision for Loan Losses		(0.8	)		—			(0.8	)
Less: Noninterest Expenses		(119.4	)		1.8			(117.6	)
Income before Income Taxes (FTE)	$	59.4		$	1.5		$	60.9
Income Taxes		(8.1	)		(0.4	)		(8.5	)
Net Income	$	51.3		$	1.1		$	52.4
Average Shares Outstanding		152,784			—			152,784
Earnings Per Share	$	0.34		$	0.0		$	0.34

⁴ Tax-effect calculations use the 2018 statutory FTE tax rates (federal + state)

($ in millions)	3Q18			2Q18
Net Interest Income	$	130.8		$	132.0
FTE Adjustment		2.8			2.8
Net Interest Income (FTE)	$	133.6		$	134.8
Average Earning Assets	$	15,213.4		$	15,176.7
Net Interest Margin (FTE)		3.51	%		3.55	%
($ in millions)	3Q18			2Q18
Net Interest Income	$	130.8		$	132.0
FTE Adjustment		2.8			2.8
Net Interest Income (FTE)	$	133.6		$	134.8
Total Noninterest Income	$	46.0		$	49.3
Noninterest Expense		119.4			130.5
Pre-Provision Net Revenue	$	60.2		$	53.6
Less: Securities Gains		(0.1	)		(1.5	)
Less: Gain on Student Loan Sale		—			(2.2	)
Less: Gain on Branch Actions		(0.2	)		(0.3	)
Add: Merger and Integration Charges		1.7			2.5
Add: Branch Action Charges and Severance		.1			1.6
Add: Amortization of Tax Credit Investments		9.2			11.9
AdjustedPre-Provision Net Revenue	$	70.9		$	65.6

($ in millions)	3Q18			2Q18			3Q17
Noninterest Expense	$	119.4		$	130.5		$	103.7
Less: Merger and Integration Charges		(1.7	)		(2.5	)		(0.4	)
Less: Branch Action Charges, Severance, Foundation Funding and Client Experience Initiative Charges		(.1	)		(1.6	)		(4.3	)
Noninterest Expense less Charges	$	117.6		$	126.4		$	99.0
Less: Amortization of Tax Credit Investments		(9.2	)		(11.9	)		—
Adjusted Noninterest Expense	$	108.4		$	114.5		$	99.0
Less: Intangible Amortization		(3.3	)		(3.4	)		(2.6	)
Adjusted Noninterest Expense Less Intangible Amortization	$	105.1		$	111.1		$	96.4
Net Interest Income	$	130.8		$	132.0		$	108.5
FTE Adjustment		2.8			2.8			5.6
Net Interest Income (FTE)	$	133.6		$	134.8		$	114.1
Total Noninterest Income	$	46.0		$	49.3		$	46.4
Total Revenue (FTE)	$	179.6		$	184.1		$	160.5
Less: Securities Gains		(0.1	)		(1.5	)		(3.0	)
Less: Gain on Student Loan Sale		—			(2.2	)		—
Less: Gain on Branch Actions		(0.2	)		(0.3	)		—
Adjusted Total Revenue (FTE)	$	179.3		$	180.1		$	157.5
Efficiency Ratio		64.71	%		69.58	%		64.17	%
Adjusted Efficiency Ratio		58.67	%		61.68	%		61.18	%
Operating Leverage5 (basis points)		(322	)
Adjusted Operating Leverage6 (basis points)		434

⁵ Year-over-year basis point change in noninterest expenses plus change in total revenue

⁶ Year-over-year basis point change in adjusted noninterest expense plus change in adjusted total revenue

($ in millions)	3Q18			2Q18
Net Income (Loss)	$	51.3		$	44.0
Add: Intangible Amortization (net of tax7)		2.6			2.7
Tangible Net Income (Loss)	$	53.9		$	46.7
Less: Securities Gains (net of tax7)		(0.1	)		(1.1	)
Less: Gain on Sale of Student Loans (net of tax7)		—			(1.7	)
Add: Merger & Integration Charges (net of tax7)		1.3			1.9
Add: Branch Action Charges (net of gains) and Severance (net of tax7)		(0.1	)		1.0
Adjusted Tangible Net Income (Loss)	$	55.0		$	46.8
Average Total Shareholders’ Equity	$	2,212.7		$	2,183.6
Less: Average Goodwill		(828.8	)		(828.8	)
Less: Average Intangibles		(43.7	)		(47.1	)
Average Tangible Shareholders’ Equity	$	1,340.2		$	1,307.7
Return on Average Tangible Common Equity		16.10	%		14.28	%
Adjusted Return on Average Tangible Common Equity		16.42	%		14.32	%

⁷  Tax-effect calculations use the 2018 statutory FTE tax rates (federal + state)

CONFERENCE CALL AND WEBCAST

Old National will host a conference call and live webcast at 7:00 a.m. Central Time on Monday, October 22, 2018, to review third-quarter 2018 financial results. 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 10:00 a.m. Central Time on October 22 through November 5. To access the replay, dial1-855-859-2056, Conference ID Code 8898768.

ABOUT OLD NATIONAL

Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. Headquartered in Evansville with $17.6 billion in assets, it is a top 100 U.S. bank, the largest Indiana-based bank andhas been recognized as a World’s Most Ethical Company by the Ethisphere Institute for seven consecutive years. For nearly 185 years, Old National has been a community bank committed to building long-term, highly valued relationships with clients. With locations in Indiana, Kentucky, Michigan, Minnesota and Wisconsin, Old National provides retail and commercial banking services along with comprehensive wealth management, investment and capital markets services. For information and financial data, please visit Investor Relations atoldnational.com.

USE OFNON-GAAP FINANCIAL MEASURES

This earnings release contains GAAP financial measures andnon-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Wherenon-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.

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. 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 merger with Klein that 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 Form10-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.

Financial Highlights (unaudited)

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

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2018			2018			2017			2018			2017
Income Statement
Net interest income	$	130,842		$	131,963		$	108,478		$	391,377		$	318,612
Provision for loan losses		750			2,446			311			3,576			2,013
Noninterest income		45,957			49,289			46,366			137,151			138,557
Noninterest expense		119,376			130,460			103,702			366,993			308,404
Net income		51,348			44,001			39,372			143,332			114,218
Per Common Share Data(Diluted)
Net income available to common shareholders	$	0.34		$	0.29		$	0.29		$	0.94		$	0.84
Average diluted shares outstanding		152,784			152,568			135,796			152,616			135,693
Book value		14.58			14.44			14.07			14.58			14.07
Stock price		19.30			18.60			18.30			19.30			18.30
Dividend payout ratio		38	%		45	%		43	%		41	%		46	%
Tangible common book value (1)		8.86			8.70			9.02			8.86			9.02
Performance Ratios
Return on average assets		1.18	%		1.01	%		1.05	%		1.10	%		1.02	%
Return on average common equity		9.28	%		8.06	%		8.31	%		8.74	%		8.18	%
Return on average tangible common equity (1)		16.10	%		14.28	%		13.58	%		15.40	%		13.59	%
Net interest margin (FTE)		3.51	%		3.55	%		3.52	%		3.51	%		3.48	%
Efficiency ratio (2)		64.71	%		69.58	%		64.17	%		66.74	%		64.29	%
Net charge-offs (recoveries) to average loans		0.06	%		-0.03	%		0.05	%		0.01	%		0.02	%
Allowance for loan losses to ending loans		0.47	%		0.48	%		0.53	%		0.47	%		0.53	%
Non-performing loans to ending loans		1.47	%		1.38	%		1.46	%		1.47	%		1.46	%
Balance Sheet
Total loans	$	11,292,659		$	11,295,629		$	9,398,124		$	11,292,659		$	9,398,124
Total assets		17,567,759			17,482,990			15,065,800			17,567,759			15,065,800
Total deposits		12,598,200			12,596,376			10,606,784			12,598,200			10,606,784
Total borrowed funds		2,576,039			2,530,104			2,411,111			2,576,039			2,411,111
Total shareholders’ equity		2,220,680			2,200,215			1,906,823			2,220,680			1,906,823
Capital Ratios (1)
Risk-based capital ratios (EOP):
Tier 1 common equity		11.1	%		10.9	%		11.7	%		11.1	%		11.7	%
Tier 1		11.1	%		10.9	%		12.0	%		11.1	%		12.0	%
Total		12.1	%		11.9	%		12.5	%		12.1	%		12.5	%
Leverage ratio (to average assets)		8.6	%		8.3	%		8.8	%		8.6	%		8.8	%
Total equity to assets (averages)		12.69	%		12.54	%		12.65	%		12.55	%		12.53	%
Tangible common equity to tangible assets		8.08	%		7.98	%		8.50	%		8.08	%		8.50	%
Nonfinancial Data
Full-time equivalent employees		2,554			2,683			2,592			2,554			2,592
Number of branches		182			183			188			182			188

(1) See“Non-GAAP Measures” table.

(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 amortization of intangibles 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

Income Statement (unaudited)

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

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2018		2018		2017		2018		2017
Interest income	$	155,369	$	153,736	$	123,525	$	456,811	$	360,202
Less: interest expense		24,527		21,773		15,047		65,434		41,590
Net interest income		130,842		131,963		108,478		391,377		318,612
Provision for loan losses		750		2,446		311		3,576		2,013
Net interest income after provision for loan losses		130,092		129,517		108,167		387,801		316,599
Wealth management fees		9,022		9,746		8,837		27,794		27,515
Service charges on deposit accounts		11,028		10,765		10,535		32,552		30,418
Debit card and ATM fees		4,706		5,080		4,248		14,651		12,920
Mortgage banking revenue		4,348		5,189		5,104		13,729		14,516
Investment product fees		5,073		5,066		5,193		15,170		15,186
Capital markets income		2,700		896		1,843		4,094		5,621
Company-owned life insurance		2,958		2,430		2,022		7,993		6,288
Other income		5,986		8,586		5,570		18,702		18,407
Gains (losses) on sales of securities		135		1,494		2,972		2,417		7,547
Gains (losses) on derivatives		1		37		42		49		139
Total noninterest income		45,957		49,289		46,366		137,151		138,557
Salaries and employee benefits		63,158		66,592		57,783		193,929		171,953
Occupancy		12,578		12,873		11,670		38,731		34,343
Equipment		3,652		3,728		3,485		10,945		10,062
Marketing		3,406		3,962		2,646		11,065		9,369
Data processing		8,628		9,724		7,696		26,752		23,530
Communication		2,473		2,772		2,163		8,309		6,865
Professional fees		3,235		2,923		4,589		8,888		11,317
Loan expenses		1,564		1,843		1,542		5,151		4,866
Supplies		707		903		547		2,332		1,720
FDIC assessment		2,722		3,161		2,197		8,528		6,814
Other real estate owned expense		157		196		511		702		2,635
Amortization of intangibles		3,283		3,416		2,641		10,308		8,442
Amortization of tax credit investments		9,233		11,858		—		21,807		—
Other expense		4,580		6,509		6,232		19,546		16,488
Total noninterest expense		119,376		130,460		103,702		366,993		308,404
Income before income taxes		56,673		48,346		50,831		157,959		146,752
Income tax expense		5,325		4,345		11,459		14,627		32,534
Net income	$	51,348	$	44,001	$	39,372	$	143,332	$	114,218
Diluted Earnings Per Share
Net income	$	0.34	$	0.29	$	0.29	$	0.94	$	0.84
Average Common Shares Outstanding
Basic		151,930		151,878		135,120		151,844		135,040
Diluted		152,784		152,568		135,796		152,616		135,693
Common shares outstanding at end of period		152,352		152,351		135,523		152,352		135,523

Balance Sheet (unaudited)

($ in thousands)

	September 30,			June 30,			September 30,
	2018			2018			2017
Assets
Federal Reserve Bank account	$	65,878		$	43,889		$	32,333
Money market investments		5,859			10,359			17,382
Investments:
Treasury and government-sponsored agencies		690,709			647,058			582,051
Mortgage-backed securities		1,640,254			1,588,120			1,458,385
States and political subdivisions		1,099,535			1,110,087			1,095,975
Other securities		496,199			503,920			451,082
Total investments		3,926,697			3,849,185			3,587,493
Loans held for sale, at fair value		21,384			26,198			30,221
Loans:
Commercial		2,949,277			2,962,895			2,049,054
Commercial and agriculture real estate		4,481,554			4,451,772			3,370,211
Consumer:
Home equity		498,325			488,038			477,100
Other consumer loans		1,197,300			1,238,951			1,382,639
Subtotal of commercial and consumer loans		9,126,456			9,141,656			7,279,004
Residential real estate		2,166,203			2,153,973			2,119,120
Total loans		11,292,659			11,295,629			9,398,124
Total earning assets		15,312,477			15,225,260			13,065,553
Allowance for loan losses		(52,713	)		(53,660	)		(50,169	)
Non-earning Assets:
Cash and due from banks		215,024			219,626			202,652
Premises and equipment, net		450,253			449,304			412,488
Goodwill and other intangible assets		870,938			874,221			684,253
Company-owned life insurance		405,245			405,492			356,897
Net deferred tax assets		94,667			90,187			137,951
Loan servicing rights		24,336			24,303			24,900
Other real estate owned and repossessed personal property		3,563			3,729			10,259
Other assets		243,969			244,528			221,016
Totalnon-earning assets		2,307,995			2,311,390			2,050,416
Total assets	$	17,567,759		$	17,482,990		$	15,065,800
Liabilities and Equity
Noninterest-bearing demand deposits	$	3,588,370		$	3,600,793		$	3,034,696
Interest-bearing:
Checking and NOW accounts		3,011,544			3,054,302			2,539,233
Savings accounts		2,920,712			3,026,110			2,932,488
Money market accounts		1,185,439			1,090,621			648,378
Other time deposits		1,667,055			1,648,390			1,337,156
Total core deposits		12,373,120			12,420,216			10,491,951
Brokered CD’s		225,080			176,160			114,833
Total deposits		12,598,200			12,596,376			10,606,784
Federal funds purchased and interbank borrowings		450,031			175,044			317,021
Securities sold under agreements to repurchase		319,831			347,511			285,409
Federal Home Loan Bank advances		1,554,515			1,757,308			1,589,367
Other borrowings		251,662			250,241			219,314
Total borrowed funds		2,576,039			2,530,104			2,411,111
Accrued expenses and other liabilities		172,840			156,295			141,082
Total liabilities		15,347,079			15,282,775			13,158,977
Common stock, surplus, and retained earnings		2,300,610			2,266,918			1,941,020
Accumulated other comprehensive income (loss), net of tax		(79,930	)		(66,703	)		(34,197	)
Total shareholders’ equity		2,220,680			2,200,215			1,906,823
Total liabilities and shareholders’ equity	$	17,567,759		$	17,482,990		$	15,065,800

Average Balance Sheet and Interest Rates (unaudited)

($ in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2018								June 30, 2018								September 30, 2017
	Average			Income (1)/		Yield/			Average			Income (1)/		Yield/			Average			Income (1)/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Earning Assets:
Money market and other interest-earning investments	$	35,928		$	140		1.54	%	$	51,724		$	117		0.91	%	$	32,755		$	85		1.03	%
Investments:
Treasury and government-sponsored agencies		685,919			3,748		2.19	%		648,778			3,387		2.09	%		585,354			2,844		1.94	%
Mortgage-backed securities		1,595,630			9,381		2.35	%		1,588,140			8,904		2.24	%		1,456,034			7,235		1.99	%
States and political subdivisions		1,103,347			10,110		3.67	%		1,118,395			10,591		3.79	%		1,103,721			13,065		4.73	%
Other securities		500,837			4,116		3.29	%		507,646			3,909		3.08	%		453,782			3,043		2.68	%
Total investments		3,885,733			27,355		2.82	%		3,862,959			26,791		2.77	%		3,598,891			26,187		2.91	%
Loans: (2)
Commercial		2,928,744			33,381		4.46	%		2,873,781			32,527		4.48	%		2,021,614			20,731		4.01	%
Commercial and agriculture real estate		4,465,105			57,377		5.03	%		4,449,839			57,251		5.09	%		3,298,435			43,646		5.18	%
Consumer:
Home equity		495,161			6,070		4.86	%		492,151			6,076		4.95	%		479,492			5,065		4.19	%
Other consumer loans		1,215,583			11,263		3.68	%		1,268,670			11,591		3.66	%		1,384,057			12,242		3.51	%
Subtotal commercial and consumer loans		9,104,593			108,091		4.71	%		9,084,441			107,445		4.74	%		7,183,598			81,684		4.51	%
Residential real estate loans		2,187,130			22,536		4.12	%		2,177,587			22,208		4.08	%		2,144,478			21,190		3.95	%
Total loans		11,291,723			130,627		4.56	%		11,262,028			129,653		4.57	%		9,328,076			102,874		4.35	%
Total earning assets	$	15,213,384		$	158,122		4.11	%	$	15,176,711		$	156,561		4.11	%	$	12,959,722		$	129,146		3.95	%
Less: Allowance for loan losses		(53,734	)							(51,493	)							(51,130	)
Non-earning Assets:
Cash and due from banks	$	205,446							$	205,617							$	233,017
Other assets		2,068,469								2,086,822								1,845,612
Total assets	$	17,433,565							$	17,417,657							$	14,987,221
Interest-Bearing Liabilities:
Checking and NOW accounts	$	3,026,289		$	1,180		0.15	%	$	3,097,635		$	969		0.13	%	$	2,570,321		$	544		0.08	%
Savings accounts		2,974,147			2,119		0.28	%		3,036,936			1,777		0.23	%		2,934,445			1,289		0.17	%
Money market accounts		1,153,906			1,254		0.43	%		1,103,177			702		0.26	%		661,635			142		0.09	%
Other time deposits		1,669,039			5,780		1.37	%		1,615,527			4,813		1.20	%		1,347,095			2,800		0.82	%
Total interest-bearing deposits		8,823,381			10,333		0.46	%		8,853,275			8,261		0.37	%		7,513,496			4,775		0.25	%
Brokered CD’s		178,283			856		1.90	%		194,801			878		1.81	%		119,707			350		1.16	%
Total interest-bearing deposits and CD’s		9,001,664			11,189		0.49	%		9,048,076			9,139		0.41	%		7,633,203			5,125		0.27	%
Federal funds purchased and interbank borrowings		238,514			1,191		1.98	%		140,471			647		1.85	%		220,918			655		1.18	%
Securities sold under agreements to repurchase		352,998			535		0.60	%		332,599			434		0.52	%		315,285			280		0.35	%
Federal Home Loan Bank advances		1,624,661			8,880		2.17	%		1,713,832			8,824		2.07	%		1,506,606			6,618		1.74	%
Other borrowings		250,255			2,732		4.37	%		249,291			2,729		4.38	%		219,241			2,369		4.32	%
Total borrowed funds		2,466,428			13,338		2.15	%		2,436,193			12,634		2.08	%		2,262,050			9,922		1.74	%
Total interest-bearing liabilities	$	11,468,092		$	24,527		0.85	%	$	11,484,269		$	21,773		0.76	%	$	9,895,253		$	15,047		0.61	%
Noninterest-Bearing Liabilities
Demand deposits	$	3,596,159							$	3,602,732							$	3,049,503
Other liabilities		156,614								147,052								146,271
Shareholders’ equity		2,212,700								2,183,604								1,896,194
Total liabilities and shareholders’ equity	$	17,433,565							$	17,417,657							$	14,987,221
Net interest rate spread							3.26	%							3.35	%							3.34	%
Net interest margin (FTE)							3.51	%							3.55	%							3.52	%
FTE adjustment				$	2,753							$	2,825							$	5,621

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

(2) Includes loans held for sale.

Average Balance Sheet and Interest Rates (unaudited)

($ in thousands)

	Nine Months Ended								Nine Months Ended
	September 30, 2018								September 30, 2017
	Average			Income (1)/		Yield/			Average			Income (1)/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
Earning Assets:
Money market and other interest-earning investments	$	51,284		$	347		0.90	%	$	29,172		$	171		0.78	%
Investments:
Treasury and government-sponsored agencies		666,015			10,559		2.11	%		567,403			8,422		1.98	%
Mortgage-backed securities		1,605,324			27,805		2.31	%		1,484,132			22,643		2.03	%
States and political subdivisions		1,141,827			31,179		3.64	%		1,119,846			40,047		4.77	%
Other securities		489,465			11,694		3.19	%		448,544			8,738		2.60	%
Total investments		3,902,631			81,237		2.78	%		3,619,925			79,850		2.94	%
Loans: (2)
Commercial		2,854,691			94,114		4.35	%		1,949,921			59,171		4.00	%
Commercial and agriculture real estate		4,436,576			170,414		5.07	%		3,237,053			123,800		5.04	%
Consumer:
Home equity		496,365			17,834		4.80	%		476,729			14,560		4.08	%
Other consumer loans		1,276,727			34,994		3.66	%		1,399,040			35,890		3.43	%
Subtotal commercial and consumer loans		9,064,359			317,356		4.68	%		7,062,743			233,421		4.42	%
Residential real estate loans		2,180,416			66,216		4.05	%		2,137,982			63,712		3.97	%
Total loans		11,244,775			383,572		4.52	%		9,200,725			297,133		4.28	%
Total earning assets	$	15,198,690		$	465,156		4.06	%	$	12,849,822		$	377,154		3.90	%
Less: Allowance for loan losses		(52,070	)							(50,927	)
Non-earning Assets:
Cash and due from banks	$	203,421							$	209,752
Other assets		2,081,615								1,861,261
Total assets	$	17,431,656							$	14,869,908
Interest-Bearing Liabilities:
Checking and NOW accounts	$	3,063,636		$	2,969		0.13	%	$	2,599,696		$	1,511		0.08	%
Savings accounts		3,020,955			5,239		0.23	%		2,949,412			3,655		0.17	%
Money market accounts		1,138,679			2,502		0.29	%		684,346			437		0.09	%
Other time deposits		1,615,896			14,493		1.20	%		1,336,729			7,704		0.77	%
Total interest-bearing deposits		8,839,166			25,203		0.38	%		7,570,183			13,307		0.24	%
Brokered CD’s		182,720			2,380		1.74	%		113,111			925		1.09	%
Total interest-bearing deposits and CD’s		9,021,886			27,583		0.41	%		7,683,294			14,232		0.25	%
Federal funds purchased and interbank borrowings		213,362			2,855		1.79	%		192,343			1,433		1.00	%
Securities sold under agreements to repurchase		342,797			1,328		0.52	%		325,230			870		0.36	%
Federal Home Loan Bank advances		1,671,211			25,484		2.04	%		1,460,293			17,947		1.64	%
Other borrowings		249,464			8,184		4.37	%		219,097			7,108		4.33	%
Total borrowed funds		2,476,834			37,851		2.04	%		2,196,963			27,358		1.66	%
Total interest-bearing liabilities	$	11,498,720		$	65,434		0.76	%	$	9,880,257		$	41,590		0.56	%
Noninterest-Bearing Liabilities
Demand deposits	$	3,587,453							$	2,985,386
Other liabilities		157,859								141,616
Shareholders’ equity		2,187,624								1,862,649
Total liabilities and shareholders’ equity	$	17,431,656							$	14,869,908
Net interest rate spread							3.30	%							3.34	%
Net interest margin (FTE)							3.51	%							3.48	%
FTE adjustment				$	8,345							$	16,952

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

(2) Includes loans held for sale.

Asset Quality (EOP) (unaudited)

($ in thousands)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2018			2018			2017			2018			2017
Beginning allowance for loan losses	$	53,660		$	50,381		$	50,986		$	50,381		$	49,808
Provision for loan losses		750			2,446			311			3,576			2,013
Gross charge-offs		(4,261	)		(3,054	)		(2,821	)		(10,000	)		(9,440	)
Gross recoveries		2,564			3,887			1,693			8,756			7,788
Net (charge-offs) recoveries		(1,697	)		833			(1,128	)		(1,244	)		(1,652	)
Ending allowance for loan losses	$	52,713		$	53,660		$	50,169		$	52,713		$	50,169
Net charge-offs (recoveries) / average loans (1)		0.06	%		-0.03	%		0.05	%		0.01	%		0.02	%
Average loans outstanding (1)	$	11,284,531		$	11,257,585		$	9,320,868		$	11,239,549		$	9,194,396
EOP loans outstanding (1)		11,292,659		$	11,295,629		$	9,398,124		$	11,292,659		$	9,398,124
Allowance for loan losses / EOP loans (1)		0.47	%		0.48	%		0.53	%		0.47	%		0.53	%
Underperforming Assets:
Loans 90 Days and over (still accruing)	$	980		$	1,575		$	879		$	980		$	879
Non-performing loans:
Nonaccrual loans (2)		148,816			139,082			119,256			148,816			119,256
Renegotiated loans		17,547			17,139			17,886			17,547			17,886
Totalnon-performing loans		166,363			156,221			137,142			166,363			137,142
Foreclosed properties		3,563			3,729			10,259			3,563			10,259
Total underperforming assets	$	170,906		$	161,525		$	148,280		$	170,906		$	148,280
Classified and Criticized Assets:
Nonaccrual loans (2)		148,816			139,082			119,256			148,816			119,256
Substandard accruing loans		107,257			109,051			89,389			107,257			89,389
Loans 90 days and over (still accruing)		980			1,575			879			980			879
Total classified loans - “problem loans”	$	257,053		$	249,708		$	209,524		$	257,053		$	209,524
Other classified assets		3,070			3,149			7,526			3,070			7,526
Criticized loans - “special mention loans”		181,165			154,891			130,197			181,165			130,197
Total classified and criticized assets	$	441,288		$	407,748		$	347,247		$	441,288		$	347,247
Non-performing loans / EOP loans (1)		1.47	%		1.38	%		1.46	%		1.47	%		1.46	%
Allowance tonon-performing loans (3)		32	%		34	%		37	%		32	%		37	%
Under-performing assets / EOP loans (1)		1.51	%		1.43	%		1.58	%		1.51	%		1.58	%
EOP total assets	$	17,567,759		$	17,482,990		$	15,065,800		$	17,567,759		$	15,065,800
Under-performing assets / EOP assets		0.97	%		0.92	%		0.98	%		0.97	%		0.98	%

EOP - End of period actual balances

(1) Excludes loans held for sale.

(2) Includes renegotiated loans totaling $29.9 million at September 30, 2018, $34.0 million at June 30, 2018, and $43.7 million at September 30, 2017.

(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.

Non-GAAP Measures (unaudited)

($ in thousands)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2018			2018			2017			2018			2017
Actual End of Period Balances
GAAP shareholders’ equity	$	2,220,680		$	2,200,215		$	1,906,823		$	2,220,680		$	1,906,823
Deduct:
Goodwill		828,804			828,804			655,018			828,804			655,018
Intangibles		42,134			45,417			29,235			42,134			29,235
		870,938			874,221			684,253			870,938			684,253
Tangible shareholders’ equity	$	1,349,742		$	1,325,994		$	1,222,570		$	1,349,742		$	1,222,570
Average Balances
GAAP shareholders’ equity	$	2,212,700		$	2,183,604		$	1,896,194		$	2,187,624		$	1,862,649
Deduct:
Goodwill		828,804			828,804			655,018			828,585			655,018
Intangibles		43,685			47,052			30,502			47,249			33,242
		872,489			875,856			685,520			875,834			688,260
Average tangible shareholders’ equity	$	1,340,211		$	1,307,748		$	1,210,674		$	1,311,790		$	1,174,389
Actual End of Period Balances
GAAP assets	$	17,567,759		$	17,482,990		$	15,065,800		$	17,567,759		$	15,065,800
Add:
Trust overdrafts		118			46			45			118			45
Deduct:
Goodwill		828,804			828,804			655,018			828,804			655,018
Intangibles		42,134			45,417			29,235			42,134			29,235
		870,938			874,221			684,253			870,938			684,253
Tangible assets	$	16,696,939		$	16,608,815		$	14,381,592		$	16,696,939		$	14,381,592
Risk-weighted assets	$	12,715,665		$	12,648,732		$	10,495,407		$	12,715,665		$	10,495,407
GAAP net income	$	51,348		$	44,001		$	39,372		$	143,332		$	114,218
Add:
Amortization of intangibles (net of tax)		2,593			2,699			1,717			8,143			5,487
Tangible net income	$	53,941		$	46,700		$	41,089		$	151,475		$	119,705
Tangible Ratios
Return on tangible common equity		15.99	%		14.09	%		13.44	%		14.96	%		13.06	%
Return on average tangible common equity		16.10	%		14.28	%		13.58	%		15.40	%		13.59	%
Return on tangible assets		1.29	%		1.12	%		1.14	%		1.21	%		1.11	%
Tangible common equity to tangible assets		8.08	%		7.98	%		8.50	%		8.08	%		8.50	%
Tangible common equity to risk-weighted assets		10.61	%		10.48	%		11.65	%		10.61	%		11.65	%
Tangible common book value (1)		8.86			8.70			9.02			8.86			9.02

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 atperiod-end.

Tier 1 capital	$	1,409,775		$	1,371,918		$	1,254,790		$	1,409,775		$	1,254,790
Deduct:
Trust Preferred Securities (2)		—			—			45,000			—			45,000
Additional Tier 1 capital deductions		—			—			(13,498	)		—			(13,498	)
		—			—			31,502			—			31,502
Tier 1 common equity	$	1,409,775		$	1,371,918		$	1,223,288		$	1,409,775		$	1,223,288
Risk-weighted assets		12,715,665			12,648,732			10,495,407			12,715,665			10,495,407
Tier 1 common equity to risk-weighted assets		11.09	%		10.85	%		11.66	%		11.09	%		11.66	%

(2) Trust Preferred Securities are now included in Tier 2 capital as a result of exceeding the $15 billion asset threshold from the

Anchor-Minnesota acquisition.