Old National Bancorp (ONB) 8-K Results of Operations and Financial Condition

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 1^st quarter earnings,

announces $1.2 million commitment toCOVID-19 relief efforts

and support programs for clients

Evansville, Ind. (April 20, 2020)

Old National Bancorp (NASDAQ: ONB) reports 1Q20 net income of $22.6 million, diluted EPS of $0.13.

Adjusted¹ net income of $42.1 million, or $0.25 per diluted share.

CEO COMMENTARY:

“While we are pleased with our 1^st quarter progress and the implementation of the ONB Way strategic initiatives,

our commitment and focus today is on supporting our clients, team members and communities during the COVID-

19 pandemic,” said Chairman & CEO Jim Ryan. “With this goal in mind, we are giving $1.2 million to COVID-19 relief

efforts - both immediate and near-term - while also working diligently to help our clients take advantage of our own

internal relief programs and the various government support programs. I’d also like to thank our team members for

their hard work and unwavering commitment to serving our clients and communities during this difficult time.”

FIRST QUARTER HIGHLIGHTS²:

Net Income	•  Net income of $22.6 million •  Earnings per share of $0.13
Net Interest Income/NIM	•  Net interest income on a fully taxable equivalent basis was $147.1 million compared to $152.2 million •  Net interest margin on a fully taxable equivalent basis was 3.31% compared to 3.46%
Operating Performance	•  Pre-provision net revenue1 (“PPNR”) was $45.9 million •  Adjusted PPNR1 was $77.4 million, up 2.9% over first quarter of 2019 •  Noninterest expense was $158.7 million •  Adjusted noninterest expense1 was $122.0 million •  Efficiency ratio1 was 77.71% •  Adjusted efficiency ratio1 was 59.31%, a 166 basis point improvement
Loans and Credit Quality	•  End-of-period total loans3 were $12,438.8 million compared to $12,164.4 million •  Represents 9.0% annualized growth •  End-of-period commercial and commercial real estate loans were $8,330.0 million •  Represents 13.6% annualized growth •  First-quarter total commercial production was $647.3 million; March 31 pipeline was $2.8 billion •  Provision for credit losses was $17.0 million •  Net charge-offs were $6.5 million, or 0.21% annualized, compared to net charge-offs of $3.6 million •  Non-performing loans were 1.16% of total loans compared to 1.19%
Return Profile & Capital	•  Return on average common equity was 3.20% •  Return on average tangible common equity1 was 5.86% •  Adjusted return on average tangible common equity1 was 10.35% •  Repurchased 4.9 million shares of common stock during the current quarter
Notable Items	•  Day one increase to the allowance for credit losses was $41.3 million and to the unfunded commitment liability was $4.5 million due to the adoption of CECL •  $31.2 million in ONB Way charges •  $5.5 million in tax credit amortization

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

OLD NATIONAL’S RESPONSE TOCOVID-19

COMMITTING $1.2 MILLION TOCOVID-19 RELIEF EFFORTS WITHIN OUR COMMUNITIES

To best serve our communities during this time of need, Old National is committing $1.2 million forCOVID-19 relief.

This includes:

• $600,000 in funding focused on meeting the immediate needs in our communities, with an emphasis onlow-to-moderate income communities.

• $600,000 in Old National Bank Foundation grant funding that will focus on longer-term restorative and transformational needs within our communities.

SUPPORTING OUR CLIENTS THROUGH RELIEF MEASURES

To assist our consumer and business clients during this time of need, Old National is providing relief in several ways:

• Approving loan payment extensions and waiving or refunding certain banking fees for clients experiencing aCOVID-19-related hardship.

• Aiding thousands of our clients by administering the Small Business Administration’s Paycheck Protection Program (PPP). Through April 16, 2020,we have approved approximately $1.35 billion in total loan volume through the PPP.

THE ONB WAY: OLD NATIONAL’S NEW STRATEGIC PLAN

Old National is implementing a new strategic plan – and overall way of doing business – designed to keep our clients at the center of all we do. Known asThe ONB Way, it includes:

• Realigning the organization into clearly defined segments to align leaders and relationship managers with the client segment they can best serve (while not wavering on our commitment to community).

• Deepening client relationships through integrated Commercial, Community Banking and Wealth teams.

• Simplifying and improving theend-to-end banking/borrowing journey while adhering to strong risk management principles.

• Creating a new Wealth Division that combines wealth management, investments and private banking for a simplified, highly consultative client experience firmly rooted in financial planning.

• Investing in our operational and IT infrastructure to meet our clients “where they are” and ensure that we keep pace with technology and client digital expectations.

BRANCH NETWORK OPTIMIZATION

Another component of The ONB Way is the optimization of our branch network. This optimization, which includes 31 banking center consolidations scattered throughout the footprint, reflects an ongoing shift among our clients toward digital banking solutions. The consolidation of 12 of these banking centers occurred on April 13, 2020, and the remaining 19 are anticipated to be consolidated on April 24, 2020. Many of the facilities to be consolidated are in smaller markets, several of which were added in recent years through partnership activity. By state, these consolidations include 10 banking centers in both Wisconsin and Indiana, five in Michigan, four in Minnesota and two in Kentucky.

RESULTS OF OPERATIONS

Old National Bancorp reported first-quarter 2020 net income of $22.6 million, or $0.13 per diluted share.

Included in the first quarter werepre-tax charges of $31.2 million for ONB Way. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $42.1 million, or $0.25 per diluted share.

LOANS

Strong commercial activity resulted in double-digit commercial loan growth.

• Period-end total loans were $12,438.8 million at March 31, 2020, compared to $12,164.4 million at December 31, 2019, and represents an increase of 9.0% annualized growth.

• Commercial and industrial loans increased $156.3 million to $3,046.6 million, or 21.6% annualized growth; commercial real estate loans increased $116.7 million to $5,283.5 million, or 9.0% annualized growth; consumer loans increased $0.6 million to $1,726.7 million and residential mortgage loans increased $0.9 million to $2,382.1 million.

• Commercial loan production in the first quarter was $647.3 million;period-end pipeline totaled $2.8 billion.

• Average total loans in the first quarter were $12,192.3 million, an increase of $123.2 million from the fourth quarter of 2019.

DEPOSITS

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

• Period-end total deposits were $14,305.4 million at March 31, 2020, a decrease of $248.0 million from the fourth quarter of 2019.

• On average, total deposits in the first quarter were $14,327.8 million, compared to $14,602.9 million in the fourth quarter of 2019.

NET INTEREST INCOME AND MARGIN

Net interest income and margin lower with decline in accretion income and fewer days.

• Net interest income decreased to $143.8 million in the first quarter of 2020 from $148.9 million in the fourth quarter of 2019.

• The net interest margin on a fully taxable equivalent basis decreased 15 basis points to 3.31% compared to 3.46% in the fourth quarter of 2019.

• Accretion income was $6.7 million, or 15 basis points of net interest margin, in the first quarter of 2020 compared to $9.5 million, or 21 basis points of net interest margin, in the fourth quarter of 2019. In the first quarter of 2020, accretion income was 3.4% of adjusted total revenue.

• Interest collected on nonaccrual loans was $0.7 million, or 1 basis point of net interest margin, in the first quarter of 2020 compared to $2.4 million, or 5 basis points of net interest margin, in the fourth quarter of 2019.

• The cost of total deposits declined 9 basis points to 0.34% in the first quarter of 2020 while the cost of total interest-bearing deposits decreased 11 basis points to 0.48%.

CREDIT QUALITY AND CECL

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

• Day one increase to the allowance for credit losses was $41.3 million due to the adoption of CECL. Of this day one amount, $27.1 million applies to previously acquired loans.

• Day one increase to the unfunded commitment liability was $4.5 million due to the adoption of CECL.

• Provision for credit losses was $17.0 million in the first quarter of 2020, driven higher by the economic forecast which now includes the impact of novel coronavirus pandemic.

• Net charge-offs in the first quarter were $6.5 million, or 0.21% of total average loans, and30-89 day delinquencies of 0.26%.

• Non-performing loans decreased as a percentage of total loans to 1.16%.

• Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of March 31, 2020, the remaining discount on these acquired loans was $67.0 million.

• The allowance for credit losses was $106.4 million, or 0.86% of total loans at March 31, 2020.

NONINTEREST INCOME

Noninterest income increased due to strong mortgage banking revenue and an increase in capital markets income.

• Total noninterest income for the first quarter of 2020 was $57.5 million, an increase of $9.8 million from the fourth quarter of 2019.

• Mortgage banking revenue increased $5.5 million and capital markets income increased $1.3 million when compared to the fourth quarter of 2019.

NONINTEREST EXPENSE

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

• Noninterest expense for the first quarter of 2020 was $158.7 million and included $31.2 million in ONB Way charges and $5.5 million in tax credit amortization.

• Excluding these items, adjusted noninterest expense for the first quarter was $122.0 million, compared to the $125.6 million in adjusted noninterest expense in the fourth quarter of 2019.

• The first quarter efficiency ratio was 77.71%, while the adjusted efficiency ratio was 59.31%.

• Adjusted operating leverage¹ was +102 basis points for the first quarter of 2020 as compared to the first quarter of 2019.

INCOME TAXES

• On a fully taxable-equivalent basis, income tax expense in the first quarter was $6.3 million, resulting in a 21.7% FTE tax rate.

• Income tax expense included $1.8 million in tax credit benefit.

CAPITAL AND LIQUIDITY

Capital ratios remain strong.

• At the end of the first quarter, total risk-based capital was 12.3% and regulatory tier 1 capital was 11.4%.

• Tangible common equity to tangible assets was 8.81% at the end of the first quarter compared to 9.09% in the fourth quarter of 2019.

• The Company repurchased 4.9 million shares of common stock during the first quarter of 2020 at a weighted average price of $16.05, excluding commissions.

• A low loan to deposit ratio of 87%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.

NON-GAAP RECONCILIATIONS

($ in millions, except EPS, shares in 000s)	1Q20			Adjustments4			Adjusted 1Q20
Total Revenues (FTE)	$	204.6		($	5.2	)	$	199.4
Less: Provision for Credit Losses		(17.0	)		—			(17.0	)
Less: Noninterest Expenses		(158.7	)		31.2			(127.5	)
Income before Income Taxes (FTE)	$	28.9		$	26.0		$	54.9
Income Taxes		6.3			6.5			12.8
Net Income	$	22.6		$	19.5		$	42.1
Average Shares Outstanding		168,404			—			168,404
Earnings Per Share - Diluted	$	0.13		$	0.12		$	0.25

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

($ in millions)	1Q20			4Q19
Net Interest Income	$	143.8		$	148.9
Add: FTE Adjustment		3.3			3.3
Net Interest Income (FTE)	$	147.1		$	152.2
Average Earning Assets	$	17,774.0		$	17,577.8
Net Interest Margin (FTE)		3.31	%		3.46	%

($ in millions)	1Q20			1Q19
Net Interest Income	$	143.8		$	147.0
Add: FTE Adjustment		3.3			3.2
Net Interest Income (FTE)	$	147.1		$	150.2
Add: Total Noninterest Income		57.5			46.4
Less: Noninterest Expense		(158.7	)		(123.0	)
Pre-Provision Net Revenue	$	45.9		$	73.6
Less: Debt Securities Gains/Losses		(5.2	)		0.1
Add: ONB Way Charges		31.2			—
Add: Merger and Integration Charges		—			1.2
Add: Amortization of Tax Credit Investments		5.5			0.3
AdjustedPre-Provision Net Revenue	$	77.4		$	75.2

($ in millions)	1Q20			4Q19			1Q19
Noninterest Expense	$	158.7		$	134.7		$	123.0
Less: ONB Way Charges		(31.2	)		(8.2	)		—
Less: Merger and Integration Charges		—			(0.2	)		(1.2	)
Noninterest Expense less Charges	$	127.5		$	126.3		$	121.8
Less: Amortization of Tax Credit Investments		(5.5	)		(0.7	)		(0.3	)
Adjusted Noninterest Expense	$	122.0		$	125.6		$	121.5
Less: Intangible Amortization		(3.8	)		(3.9	)		(4.5	)
Adjusted Noninterest Expense Less Intangible Amortization	$	118.2		$	121.7		$	117.0
Net Interest Income	$	143.8		$	148.9		$	147.0
FTE Adjustment		3.3			3.3			3.2
Net Interest Income (FTE)	$	147.1		$	152.2		$	150.2
Total Noninterest Income		57.5			47.7			46.4
Total Revenue (FTE)	$	204.6		$	199.9		$	196.6
Less: Debt Securities Gains/Losses		(5.2	)		(0.4	)		0.1
Adjusted Total Revenue (FTE)	$	199.4		$	199.5		$	196.7
Efficiency Ratio		77.71	%		65.57	%		60.26	%
Adjusted Efficiency Ratio		59.31	%		60.97	%		59.51	%
Operating Leverage5 (basis points)		(2,498	)
Adjusted Operating Leverage6 (basis points)		102

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)	1Q20			4Q19
Net Income	$	22.6		$	49.2
Add: Intangible Amortization (net of tax7)		2.9			3.0
Tangible Net Income	$	25.5		$	52.2
Less: Securities Gains/Losses (net of tax7)		(3.9	)		(0.3	)
Add: ONB Way Charges (net of tax7)		23.4			6.2
Add: Merger & Integration Charges (net of tax7)		—			0.1
Adjusted Tangible Net Income	$	45.0		$	58.2
Average Total Shareholders’ Equity	$	2,833.5		$	2,832.9
Less: Average Goodwill		(1,037.0	)		(1,037.0	)
Less: Average Intangibles		(58.1	)		(61.9	)
Average Tangible Shareholders’ Equity	$	1,738.4		$	1,734.0
Return on Average Tangible Common Equity		5.86	%		12.03	%
Adjusted Return on Average Tangible Common Equity		10.35	%		13.44	%

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

CONFERENCE CALL AND WEBCAST

Old National will host a conference call and live webcast at 8:00 a.m. Central Time on Monday, April 20, 2020, to review first-quarter 2020 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 11:00 a.m. Central Time on April 20 through May 4. To access the replay, dial1-855-859-2056, Conference ID Code 9178738.

ABOUT OLD NATIONAL

Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $20.7 billion in assets, it ranks among the top 100 banking companies in the U.S.and has been recognized as a World’s Most Ethical Company by theEthisphere Institute for nine consecutive years. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships and keeping our clients at the center of all we do. This is an approach to business that we callThe ONB Way. Today, Old National’s footprint includes Indiana, Kentucky, Michigan, Wisconsin and Minnesota. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment and capital market services. For more 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, such as statements about the potential impacts of theCOVID-19 pandemic. 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: the severity, magnitude and duration of theCOVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses; market, economic, operational, liquidity, credit and interest rate risks associated with Old National’s business(including developments and volatility arising from theCOVID-19 pandemic); 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 the anticipated impact from the ONB Way strategic plan that may differ from current estimates; 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, including the impact of the new CECL standard as well as changes to address the impact ofCOVID-19; 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
	March 31,			December 31,			March 31,
	2020			2019			2019
Income Statement
Net interest income	$	143,771		$	148,899		$	147,048
Provision for loan losses (1)		16,950			1,264			1,043
Noninterest income		57,502			47,726			46,416
Noninterest expense		158,744			134,743			123,041
Net income		22,640			49,185			56,276
Per Common Share Data
Net income (diluted)	$	0.13		$	0.29		$	0.32
Average diluted shares outstanding		168,404			170,186			175,368
Book value		17.10			16.82			15.82
Stock price		13.19			18.29			16.40
Dividend payout ratio		108	%		45	%		41	%
Tangible common book value (2)		10.48			10.35			9.44
Performance Ratios
Return on average assets		0.44	%		0.97	%		1.14	%
Return on average common equity		3.20	%		6.94	%		8.29	%
Return on average tangible common equity (2)		5.86	%		12.03	%		14.88	%
Net interest margin (FTE)		3.31	%		3.46	%		3.51	%
Efficiency ratio (3)		77.71	%		65.57	%		60.26	%
Net charge-offs (recoveries) to average loans		0.21	%		0.12	%		0.03	%
Allowance for loan losses to ending loans (1)		0.86	%		0.45	%		0.46	%
Non-performing loans to ending loans		1.16	%		1.19	%		1.41	%
Balance Sheet
Total loans	$	12,384,612		$	12,117,524		$	12,068,977
Total assets		20,741,141			20,411,667			20,084,420
Total deposits		14,305,362			14,553,397			14,429,270
Total borrowed funds		3,245,214			2,744,728			2,639,038
Total shareholders’ equity		2,823,435			2,852,453			2,751,872
Capital Ratios (2)
Risk-based capital ratios (EOP):
Tier 1 common equity		11.4	%		12.1	%		11.8	%
Tier 1		11.4	%		12.1	%		11.8	%
Total		12.3	%		13.0	%		12.7	%
Leverage ratio (to average assets)		8.5	%		8.9	%		8.8	%
Total equity to assets (averages)		13.91	%		14.01	%		13.70	%
Tangible common equity to tangible assets		8.81	%		9.09	%		8.66	%
Nonfinancial Data
Full-time equivalent employees		2,736			2,709			2,908
Number of branches		192			192			193

(1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology.

(2) See“Non-GAAP Measures” table. Ratios are estimated at March 31, 2020.

(3) 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 debt securities transactions. This presentation excludes amortization of intangibles and net debt 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                 N/A - Not applicable

Income Statement (unaudited)

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

	Three Months Ended
	March 31,			December 31,		March 31,
	2020			2019		2019
Interest income	$	167,999		$	176,553	$	178,918
Less: interest expense		24,228			27,654		31,870
Net interest income		143,771			148,899		147,048
Provision for loan losses (1)		16,950			1,264		1,043
Net interest income after provision for loan losses		126,821			147,635		146,005
Wealth management fees		8,884			9,468		8,535
Service charges on deposit accounts		10,077			10,714		10,826
Debit card and ATM fees		4,998			5,360		5,503
Mortgage banking revenue		11,119			5,626		5,011
Investment product fees		5,874			5,679		5,271
Capital markets income		4,328			3,043		2,517
Company-owned life insurance		3,080			2,937		3,188
Other income		4,452			4,329		5,702
Gains (losses) on sales of debt securities		5,174			437		(103	)
Gains (losses) on derivatives		(484	)		133		(34	)
Total noninterest income		57,502			47,726		46,416
Salaries and employee benefits		79,173			74,974		71,183
Occupancy		15,133			14,184		14,578
Equipment		5,305			3,958		4,474
Marketing		3,097			3,631		3,723
Data processing		9,467			9,080		9,341
Communication		2,798			2,450		3,054
Professional fees		4,293			9,986		2,910
Loan expenses		1,771			1,873		1,912
FDIC assessment		1,609			1,529		2,087
Amortization of intangibles		3,776			3,946		4,472
Amortization of tax credit investments		5,515			710		260
Other expense		26,807			8,422		5,047
Total noninterest expense		158,744			134,743		123,041
Income before income taxes		25,579			60,618		69,380
Income tax expense		2,939			11,433		13,104
Net income	$	22,640		$	49,185	$	56,276
Diluted Earnings Per Share
Net income	$	0.13		$	0.29	$	0.32
Average Common Shares Outstanding
Basic		167,748			169,235		174,734
Diluted		168,404			170,186		175,368
Common shares outstanding at end of period		165,109			169,616		173,979

(1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology.

Balance Sheet (unaudited)

($ in thousands)

	March 31,			December 31,			March 31,
	2020			2019			2019
Assets
Federal Reserve Bank account	$	130,295		$	29,141		$	101,033
Money market investments		9,349			12,430			10,909
Investments:
Treasury and government-sponsored agencies		530,904			610,666			782,486
Mortgage-backed securities		3,210,000			3,183,861			2,684,330
States and political subdivisions		1,302,395			1,275,643			1,252,448
Other securities		497,709			485,862			498,977
Total investments		5,541,008			5,556,032			5,218,241
Loans held for sale, at fair value		54,209			46,898			14,082
Loans:
Commercial		3,046,579			2,890,296			3,042,790
Commercial and agriculture real estate		5,283,464			5,166,792			5,023,620
Consumer:
Home equity		561,789			559,021			553,264
Other consumer loans		1,164,929			1,167,126			1,205,418
Subtotal of commercial and consumer loans		10,056,761			9,783,235			9,825,092
Residential real estate		2,327,851			2,334,289			2,243,885
Total loans		12,384,612			12,117,524			12,068,977
Total earning assets		18,119,473			17,762,025			17,413,242
Allowance for loan losses (1)		(106,380	)		(54,619	)		(55,559	)
Non-earning Assets:
Cash and due from banks		203,533			234,766			211,174
Premises and equipment, net		462,364			490,925			490,216
Operating leaseright-of-use assets		86,819			95,477			109,916
Goodwill and other intangible assets		1,093,323			1,097,099			1,108,802
Company-owned life insurance		450,148			448,967			444,551
Net deferred tax assets		17,576			29,705			59,430
Loan servicing rights		24,132			25,368			24,254
Other assets		390,153			281,954			278,394
Totalnon-earning assets		2,728,048			2,704,261			2,726,737
Total assets	$	20,741,141		$	20,411,667		$	20,084,420
Liabilities and Equity
Noninterest-bearing demand deposits	$	4,058,559		$	4,042,286		$	3,903,314
Interest-bearing:
Checking and NOW accounts		4,105,006			4,149,639			3,742,241
Savings accounts		2,853,305			2,845,423			2,941,361
Money market accounts		1,746,798			1,833,819			1,780,756
Other time deposits		1,469,185			1,589,988			1,835,110
Total core deposits		14,232,853			14,461,155			14,202,782
Brokered CD’s		72,509			92,242			226,488
Total deposits		14,305,362			14,553,397			14,429,270
Federal funds purchased and interbank borrowings		560,770			350,414			325,030
Securities sold under agreements to repurchase		318,067			327,782			342,480
Federal Home Loan Bank advances		2,130,263			1,822,847			1,719,944
Other borrowings		236,114			243,685			251,584
Total borrowed funds		3,245,214			2,744,728			2,639,038
Operating lease liabilities		95,830			99,500			114,040
Accrued expenses and other liabilities		271,300			161,589			150,200
Total liabilities		17,917,706			17,559,214			17,332,548
Common stock, surplus, and retained earnings		2,685,278			2,796,246			2,749,252
Accumulated other comprehensive income (loss), net of tax		138,157			56,207			2,620
Total shareholders’ equity		2,823,435			2,852,453			2,751,872
Total liabilities and shareholders’ equity	$	20,741,141		$	20,411,667		$	20,084,420

(1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020,calculation was based on incurred loss methodology.

Average Balance Sheet and Interest Rates (unaudited)

($ in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	March 31, 2020								December 31, 2019								March 31, 2019
	Average			Income (1)/		Yield/			Average			Income (1)/		Yield/			Average			Income (1)/		Yield/
Earning Assets:	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Money market and other interest-earning investments	$	58,406		$	349		2.41	%	$	87,835		$	530		2.39	%	$	58,701		$	278		1.92	%
Investments:
Treasury and government-sponsored agencies		583,971			3,697		2.53	%		546,266			3,547		2.60	%		705,417			3,902		2.21	%
Mortgage-backed securities		3,171,650			19,065		2.40	%		3,172,818			18,844		2.38	%		2,497,368			17,603		2.82	%
States and political subdivisions		1,273,156			11,409		3.58	%		1,211,850			11,133		3.67	%		1,232,355			11,453		3.72	%
Other securities		494,500			3,216		2.60	%		489,889			3,585		2.93	%		497,604			4,440		3.57	%
Total investments		5,523,277			37,387		2.71	%		5,420,823			37,109		2.74	%		4,932,744			37,398		3.03	%
Loans: (2)
Commercial		2,907,297			29,053		3.95	%		2,891,641			31,925		4.32	%		3,122,402			36,035		4.62	%
Commercial and agriculture real estate		5,188,597			62,439		4.76	%		5,129,638			66,959		5.11	%		4,989,622			65,076		5.22	%
Consumer:
Home equity		558,356			5,631		4.06	%		561,125			6,426		4.54	%		588,366			7,596		5.24	%
Other consumer loans		1,167,802			12,219		4.21	%		1,153,924			12,245		4.21	%		1,192,496			11,802		4.01	%
Subtotal commercial and consumer loans		9,822,052			109,342		4.48	%		9,736,328			117,555		4.79	%		9,892,886			120,509		4.94	%
Residential real estate loans		2,370,295			24,244		4.09	%		2,332,835			24,641		4.23	%		2,259,243			23,931		4.24	%
Total loans		12,192,347			133,586		4.35	%		12,069,163			142,196		4.64	%		12,152,129			144,440		4.76	%
Total earning assets	$	17,774,030		$	171,322		3.84	%	$	17,577,821		$	179,835		4.05	%	$	17,143,574		$	182,116		4.26	%
Less: Allowance for loan losses (3)		(83,244	)							(57,162	)							(55,789	)
Non-earning Assets:
Cash and due from banks	$	287,601							$	278,324							$	229,957
Other assets		2,388,092								2,419,792								2,490,524
Total assets	$	20,366,479							$	20,218,775							$	19,808,266
Interest-Bearing Liabilities:
Checking and NOW accounts	$	4,104,778		$	2,860		0.28	%	$	4,121,021		$	3,812		0.37	%	$	3,693,886		$	3,142		0.34	%
Savings accounts		2,828,177			1,298		0.18	%		2,842,996			1,586		0.22	%		2,935,710			2,283		0.32	%
Money market accounts		1,784,169			2,507		0.57	%		1,839,258			3,558		0.77	%		1,702,655			2,826		0.67	%
Other time deposits		1,562,074			5,186		1.34	%		1,642,773			6,101		1.47	%		1,840,514			7,102		1.56	%
Total interest-bearing deposits		10,279,198			11,851		0.46	%		10,446,048			15,057		0.57	%		10,172,765			15,353		0.61	%
Brokered CD’s		84,099			447		2.14	%		109,504			637		2.31	%		191,443			1,091		2.31	%
Total interest-bearing deposits and CD’s		10,363,297			12,298		0.48	%		10,555,552			15,694		0.59	%		10,364,208			16,444		0.64	%
Federal funds purchased and interbank borrowings		392,857			1,240		1.27	%		95,973			437		1.80	%		316,998			1,918		2.45	%
Securities sold under agreements to repurchase		329,091			384		0.47	%		337,786			469		0.55	%		361,261			662		0.74	%
Federal Home Loan Bank advances		1,965,130			7,768		1.59	%		1,843,357			8,359		1.80	%		1,672,376			9,931		2.41	%
Other borrowings		240,276			2,538		4.23	%		251,565			2,695		4.29	%		249,794			2,915		4.67	%
Total borrowed funds		2,927,354			11,930		1.64	%		2,528,681			11,960		1.88	%		2,600,429			15,426		2.41	%
Total interest-bearing liabilities	$	13,290,651		$	24,228		0.73	%	$	13,084,233		$	27,654		0.84	%	$	12,964,637		$	31,870		1.00	%
Noninterest-Bearing Liabilities and Shareholders’ Equity
Demand deposits	$	3,964,493							$	4,047,308							$	3,846,828
Other liabilities		277,812								254,296								282,615
Shareholders’ equity		2,833,523								2,832,938								2,714,186
Total liabilities and shareholders’ equity	$	20,366,479							$	20,218,775							$	19,808,266
Net interest rate spread							3.11	%							3.21	%							3.26	%
Net interest margin (FTE)							3.31	%							3.46	%							3.51	%
FTE adjustment				$	3,323							$	3,282							$	3,198

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

(2) Includes loans held for sale.                

(3) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology.

Asset Quality (EOP) (unaudited)

($ in thousands)

	Three Months Ended
	March 31,			December 31,			March 31,
	2020			2019			2019
Beginning allowance for loan losses	$	54,619		$	56,910		$	55,461
Impact of adopting ASC 326 on 1/1/2020 (1)		41,347			N/A			N/A
Provision for loan losses (1)		16,950			1,264			1,043
Gross charge-offs		(8,445	)		(6,304	)		(2,892	)
Gross recoveries		1,909			2,749			1,947
Net (charge-offs) recoveries		(6,536	)		(3,555	)		(945	)
Ending allowance for loan losses (1)	$	106,380		$	54,619		$	55,559
Net charge-offs (recoveries) / average loans (2)		0.21	%		0.12	%		0.03	%
Average loans outstanding (2)	$	12,182,704		$	12,058,109		$	12,147,560
EOP loans outstanding (2)		12,384,612		$	12,117,524		$	12,068,977
Allowance for loan losses / EOP loans (1)(2)		0.86	%		0.45	%		0.46	%
Underperforming Assets:
Loans 90 Days and over (still accruing)	$	658		$	570		$	560
Non-performing loans:
Nonaccrual loans (3)		126,987			126,412			152,881
Renegotiated loans		17,040			18,338			17,123
Totalnon-performing loans		144,027			144,750			170,004
Foreclosed properties		2,163			2,169			3,279
Total underperforming assets	$	146,848		$	147,489		$	173,843
Classified and Criticized Assets:
Nonaccrual loans (3)		126,987			126,412			152,881
Substandard accruing loans		181,157			169,689			210,680
Loans 90 days and over (still accruing)		658			570			560
Total classified loans - “problem loans”	$	308,802		$	296,671		$	364,121
Other classified assets		2,616			2,933			2,715
Criticized loans - “special mention loans”		238,011			234,841			268,836
Total classified and criticized assets	$	549,429		$	534,445		$	635,672
Non-performing loans / EOP loans (2)		1.16	%		1.19	%		1.41	%
Allowance tonon-performing loans (1)(4)		74	%		38	%		33	%
Under-performing assets / EOP loans (2)		1.19	%		1.22	%		1.44	%
EOP total assets	$	20,741,141		$	20,411,667		$	20,084,420
Under-performing assets / EOP assets		0.71	%		0.72	%		0.87	%

EOP - End of period actual balances

(1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology.

(2) Excludes loans held for sale.

(3) Includes renegotiated loans totaling $11.8 million at March 31, 2020, $13.8 million at December 31, 2019 and $27.0 million at March 31, 2019.

(4) 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 for 2019 quarter ends.

Non-GAAP Measures (unaudited)

($ in thousands)

	Three Months Ended
	March 31, 2020			December 31, 2019			March 31, 2019
Actual End of Period Balances
GAAP shareholders’ equity	$	2,823,435		$	2,852,453		$	2,751,872
Deduct:
Goodwill		1,036,994			1,036,994			1,036,258
Intangibles		56,329			60,105			72,544
		1,093,323			1,097,099			1,108,802
Tangible shareholders’ equity	$	1,730,112		$	1,755,354		$	1,643,070
Average Balances
GAAP shareholders’ equity	$	2,833,523		$	2,832,938		$	2,714,186
Deduct:
Goodwill		1,036,994			1,036,994			1,036,258
Intangibles		58,127			61,963			74,849
		1,095,121			1,098,957			1,111,107
Average tangible shareholders’ equity	$	1,738,402		$	1,733,981		$	1,603,079
Actual End of Period Balances
GAAP assets	$	20,741,141		$	20,411,667		$	20,084,420
Add:
Trust overdrafts		119			31			28
Deduct:
Goodwill		1,036,994			1,036,994			1,036,258
Intangibles		56,329			60,105			72,544
		1,093,323			1,097,099			1,108,802
Tangible assets	$	19,647,937		$	19,314,599		$	18,975,646
Risk-weighted assets	$	14,420,130		$	14,073,929		$	13,966,569
GAAP net income	$	22,640		$	49,185		$	56,276
Add:
Amortization of intangibles (net of tax)		2,849			2,976			3,373
Tangible net income	$	25,489		$	52,161		$	59,649
Tangible Ratios
Return on tangible common equity		5.89	%		11.89	%		14.52	%
Return on average tangible common equity		5.86	%		12.03	%		14.88	%
Return on tangible assets		0.52	%		1.08	%		1.26	%
Tangible common equity to tangible assets		8.81	%		9.09	%		8.66	%
Tangible common equity to risk-weighted assets		12.00	%		12.47	%		11.76	%
Tangible common book value (1)		10.48			10.35			9.44
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 common equity (2)	$	1,643,912		$	1,706,727		$	1,643,496
Risk-weighted assets		14,420,130			14,073,929			13,966,569
Tier 1 common equity to risk-weighted assets (2)		11.40	%		12.13	%		11.77	%
(2)   Amounts are estimated at March 31, 2020.