Exhibit 99.1
 | |||||||||||
Old National Bancorp Reports Fourth Quarter and
Full-Year 2024 Results
Evansville, Ind. (January 21, 2025)
Old National Bancorp (NASDAQ: ONB) reports 4Q24 net income applicable to common shares of $149.8 million, diluted EPS of $0.47; $156.0 million and $0.49 on an adjusted1 basis, respectively. Full-year net income applicable to common shares of $523.1 million, diluted EPS of $1.68; $578.1 million and $1.86 on an adjusted1 basis, respectively. | ||
CEO COMMENTARY:
| "Old National's successful 4th quarter was driven by continued growth in our peer-leading deposit franchise, disciplined expense and credit management, and solid net interest income and margin performance," said Chairman and CEO Jim Ryan. "These excellent results punctuate a strong year of earnings that included nearly 10% growth in total deposits, 10% total loan growth, and 8% growth in tangible book value." | ||
FOURTH QUARTER HIGHLIGHTS2:
| Net Income | •Net income applicable to common shares of $149.8 million; adjusted net income applicable to common shares1 of $156.0 million | ||||
•Earnings per diluted common share ("EPS") of $0.47; adjusted EPS1 of $0.49 | |||||
| Net Interest Income/NIM | •Net interest income on a fully taxable equivalent basis1 of $400.0 million | ||||
•Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.30%, down 2 basis points ("bps") | |||||
| Operating Performance | •Pre-provision net revenue1 ("PPNR") of $218.9 million; adjusted PPNR1 of $227.1 million | ||||
•Noninterest expense of $276.8 million; adjusted noninterest expense1 of $268.7 million | |||||
•Efficiency ratio1 of 54.4%; adjusted efficiency ratio1 of 51.8% | |||||
| Deposits and Funding | •Period-end total deposits of $40.8 billion, consistent with September 30, 2024; core deposits up 1.9% annualized | ||||
•Granular low-cost deposit franchise; total deposit costs of 208 bps, down 17 bps | |||||
| Loans and Credit Quality | •End-of-period total loans3 of $36.3 billion, down 1.6% annualized | ||||
•Provision for credit losses4 ("provision") of $27.0 million | |||||
•Net charge-offs of $18.7 million, or 21 bps of average loans; 17 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition | |||||
•30+ day delinquencies of 0.27% and nonaccrual loans of 1.23% of total loans | |||||
| Return Profile & Capital | •Return on average tangible common equity1 ("ROATCE") of 16.4%; adjusted ROATCE1 of 17.0% •Preliminary regulatory Tier 1 common equity to risk-weighted assets of 11.38%, up 38 bps | ||||
| Notable Items | •$8.1 million of pre-tax merger-related charges •Announced pending partnership with Bremer Financial Corporation ("Bremer") | ||||
1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release 2 Comparisons are on a linked-quarter basis, unless otherwise noted 3 Includes loans held-for-sale 4 Includes the provision for unfunded commitments 5 Expense associated with a mutual separation agreement with a former Old National executive
RESULTS OF OPERATIONS2
Old National Bancorp ("Old National") reported fourth quarter 2024 net income applicable to common shares of $149.8 million, or $0.47 per diluted common share.
Included in fourth quarter results were pre-tax charges of $8.1 million primarily related to the April 1, 2024 partnership with CapStar Financial Holdings, Inc. ("CapStar") and the recently announced partnership with Bremer. Excluding these transactions and realized debt securities losses from the current quarter, adjusted net income1 was $156.0 million, or $0.49 per diluted common share.
DEPOSITS AND FUNDING
Growth in core deposits driven by increases in private banking and community deposits, partly offset by normal seasonal patterns in public funds.
•Period-end total deposits were $40.8 billion, consistent with September 30, 2024; core deposits up 1.9% annualized.
•On average, total deposits for the fourth quarter were $41.1 billion, up 5.3% annualized.
•Granular low-cost deposit franchise; total deposit costs of 208 bps, down 17 bps.
•A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.
LOANS
Strong commercial loan production offset by approximately $600 million of outsized payoff activity and lower line utilization.
•Period-end total loans3 were $36.3 billion, down 1.6% annualized.
•Total commercial loan production in the fourth quarter was $1.5 billion; period-end commercial pipeline totaled $2.7 billion.
•Average total loans in the fourth quarter were $36.4 billion, an increase of $111.1 million, or 1.2% annualized.
CREDIT QUALITY
Resilient credit quality continues to be a hallmark of Old National.
•Provision4 expense was $27.0 million compared to $28.5 million.
•Net charge-offs were $18.7 million, or 21 bps of average loans compared to 19 bps.
◦Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 17 bps compared to 16 bps.
•30+ day delinquencies as a percentage of loans were 0.27% compared to 0.26%.
•Nonaccrual loans as a percentage of total loans were 1.23% compared to 1.22%.
•Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $159.8 million.
•The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $414.2 million, or 1.14% of total loans, compared to $405.9 million, or 1.12% of total loans.
NET INTEREST INCOME AND MARGIN
Higher net interest income and modestly lower margin reflective of higher accretion and the rate environment.
•Net interest income on a fully taxable equivalent basis1 increased to $400.0 million compared to $397.9 million, driven by higher accretion and lower funding costs, partly offset by earning asset mix.
•Net interest margin on a fully taxable equivalent basis1 modestly decreased 2 bps to 3.30%.
•Accretion income on loans and borrowings was $18.5 million, or 15 bps of net interest margin1, compared to $15.6 million, or 13 bps of net interest margin1.
•Cost of total deposits was 2.08%, decreasing 17 bps and the cost of total interest-bearing deposits decreased 22 bps to 2.71%.
NONINTEREST INCOME
Increase driven by higher wealth fees and other income, partly offset by lower capital markets and mortgage fees.
•Total noninterest income was $95.8 million compared to $94.1 million.
•Noninterest income was up 1.7% driven by higher wealth fees and other income impacted by $8 million of discrete items, partly offset by lower capital markets and mortgage fees.
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NONINTEREST EXPENSE
Disciplined expense management.
•Noninterest expense was $276.8 million and included $8.1 million of merger-related charges.
◦Excluding merger-related charges and $2.6 million of pre-tax separation expense5 in the third quarter of 2024, adjusted noninterest expense1 was $268.7 million, compared to $262.8 million; increase driven by $5 million in higher performance-driven incentive accruals and $1.2 million in higher tax credit amortization.
•The efficiency ratio1 was 54.4%, while the adjusted efficiency ratio1 was 51.8% compared to 53.8% and 51.2%, respectively.
INCOME TAXES
•Income tax expense was $32.2 million, resulting in an effective tax rate of 17.3% compared to 22.3%. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 19.8% compared to 24.8%.
◦Lower effective tax rate driven by $5.9 million for the resolution of tax matters and $1.2 million in higher tax credit benefits.
•Income tax expense included $5.2 million of tax credit benefit compared to $4.0 million.
CAPITAL
Capital ratios remain strong.
•Preliminary total risk-based capital up 43 bps to 13.37% and preliminary regulatory Tier 1 capital up 38 bps to 11.98%, as strong retained earnings drive capital.
•Tangible common equity to tangible assets was 7.41% compared to 7.44%.
MARK SANDER TO RETIRE AS PRESIDENT AND COO
Old National Bancorp President and Chief Operating Officer Mark G. Sander will retire on June 30, 2025, after a distinguished and highly successful career in banking that began in 1980. Prior to the completion of the Old National Bancorp and First Midwest Bancorp partnership in 2022, Mr. Sander served as President, COO, and a Director at First Midwest Bancorp.
Before joining First Midwest in 2011, Mr. Sander held the position of Executive Vice President and head of Commercial Banking at Associated Banc-Corp. He has also previously held leadership roles at Bank of America and LaSalle Bank.
"It has been my privilege to work alongside Mark Sander over the past several years," said Old National Chairman and CEO Jim Ryan. "Thanks to Mark’s strong and steady leadership, Old National is now one of the premier banks in the nation. On behalf of all of us at Old National, I want to thank him for embodying our organizational values of collaboration, inclusion, and integrity every day."
LEAD INDEPENDENT DIRECTOR TRANSITION
Daniel S. Hermann, founding partner of Lechwe Holdings LLC, founder of AmeriQual Group, LLC, and former President and CEO of Black Beauty Coal Co., has been appointed Lead Independent Director of Old National Bancorp. Mr. Hermann has been a member of the Old National Bancorp board since 2020.
Mr. Hermann succeeds Becky Skillman, former Indiana Lt. Governor and former President and CEO of Radius Indiana, who has served as Lead Independent Director since 2016. Ms. Skillman will continue her service as a member of the Old National Bancorp board, a position she has held since 2013.
"On behalf of Old National’s Executive Leadership Team and Board of Directors, I want to thank Becky Skillman for her passionate leadership and invaluable guidance as our Lead Independent Director," said Old National Chairman and CEO Jim Ryan. "I also want to emphasize how grateful we are to have a leader of Dan Hermann’s character, stature, and experience to build upon the significant contributions that Becky has made in this critical role."
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CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, January 21, 2025, to review fourth quarter and full-year financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 9682197. A replay of the call will also be available from approximately noon Central Time on January 21, 2025 through February 4, 2025. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 9682197.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $54 billion of assets and $30 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2024, Points of Light named Old National one of "The Civic 50" - an honor reserved for the 50 most community-minded companies in the United States.
USE OF NON-GAAP FINANCIAL MEASURES
The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. 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 at the end of this release.
The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include merger-related charges associated with completed and pending acquisitions, separation expense, debt securities gains/losses, CECL Day 1 non-PCD provision expense, distribution of excess pension assets expense, FDIC special assessment expense, gain on sale of Visa Class B restricted shares, contract termination charges, expenses related to the tragic April 10, 2023 event at our downtown Louisville location ("Louisville expenses"), and property optimization charges. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.
Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes adjusted pre-provision net revenues may be useful in assessing the Company's underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.
The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, separation expense, distribution of excess pension assets expense, FDIC special assessment expense, contract termination charges, Louisville expenses, and property optimization charges, as well as adjusted noninterest income, which excludes debt securities gains/losses and the gain on sale of Visa Class B restricted shares. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.
The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking
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industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.
In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.
Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.
FORWARD-LOOKING STATEMENTS
This communication contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "guidance," "intend," "may," "outlook," "plan," "potential," "predict," "should," "would," and "will," 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 or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the failure to obtain necessary regulatory approvals for the merger (the “Merger”) between Old National and Bremer (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction) and the possibility that the Merger does not close when expected or at all because required regulatory approvals, the approval by Bremer’s shareholders, or other approvals and the other conditions to closing are not received or satisfied on a timely basis or at all; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Old National and Bremer; the expected cost savings, synergies and other financial benefits from the Merger not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the impact of purchase accounting with respect to the Merger, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks; risks relating to the potential dilutive effect of shares of Old National’s common stock to be issued in the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, the success of revenue-generating and cost reduction initiatives and the diversion of management’s attention from ongoing business operations and opportunities; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; political and economic uncertainty and instability; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2023
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and other filings with the SEC. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results, performance or outcomes, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.
| CONTACTS: | ||||||||
| Media: Rick Vach | Investors: Lynell Durchholz | |||||||
| (904) 535-9489 | (812) 464-1366 | |||||||
| Rick.Vach@oldnational.com | Lynell.Durchholz@oldnational.com | |||||||
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| Financial Highlights (unaudited) | ||||||||||||||||||||||||||
| ($ and shares in thousands, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Income Statement | ||||||||||||||||||||||||||
| Net interest income | $ | 394,180 | $ | 391,724 | $ | 388,421 | $ | 356,458 | $ | 364,408 | $ | 1,530,783 | $ | 1,503,153 | ||||||||||||
FTE adjustment1,3 | 5,777 | 6,144 | 6,340 | 6,253 | 6,100 | 24,514 | 23,428 | |||||||||||||||||||
Net interest income - tax equivalent basis3 | 399,957 | 397,868 | 394,761 | 362,711 | 370,508 | 1,555,297 | 1,526,581 | |||||||||||||||||||
| Provision for credit losses | 27,017 | 28,497 | 36,214 | 18,891 | 11,595 | 110,619 | 58,887 | |||||||||||||||||||
| Noninterest income | 95,766 | 94,138 | 87,271 | 77,522 | 100,094 | 354,697 | 333,342 | |||||||||||||||||||
| Noninterest expense | 276,824 | 272,283 | 282,999 | 262,317 | 284,235 | 1,094,423 | 1,026,306 | |||||||||||||||||||
| Net income available to common shareholders | $ | 149,839 | $ | 139,768 | $ | 117,196 | $ | 116,250 | $ | 128,446 | $ | 523,053 | $ | 565,857 | ||||||||||||
| Per Common Share Data | ||||||||||||||||||||||||||
| Weighted average diluted shares | 318,803 | 317,331 | 316,461 | 292,207 | 292,029 | 311,001 | 291,855 | |||||||||||||||||||
| EPS, diluted | $ | 0.47 | $ | 0.44 | $ | 0.37 | $ | 0.40 | $ | 0.44 | $ | 1.68 | $ | 1.94 | ||||||||||||
| Cash dividends | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.56 | 0.56 | |||||||||||||||||||
Dividend payout ratio2 | 30 | % | 32 | % | 38 | % | 35 | % | 32 | % | 33 | % | 29 | % | ||||||||||||
| Book value | $ | 19.11 | $ | 19.20 | $ | 18.28 | $ | 18.24 | $ | 18.18 | $ | 19.11 | $ | 18.18 | ||||||||||||
| Stock price | 21.71 | 18.66 | 17.19 | 17.41 | 16.89 | 21.71 | 16.89 | |||||||||||||||||||
Tangible book value3 | 11.91 | 11.97 | 11.05 | 11.10 | 11.00 | 11.91 | 11.00 | |||||||||||||||||||
| Performance Ratios | ||||||||||||||||||||||||||
| ROAA | 1.14 | % | 1.08 | % | 0.92 | % | 0.98 | % | 1.09 | % | 1.03 | % | 1.21 | % | ||||||||||||
| ROAE | 9.8 | % | 9.4 | % | 8.2 | % | 8.7 | % | 10.2 | % | 9.1 | % | 11.3 | % | ||||||||||||
ROATCE3 | 16.4 | % | 16.0 | % | 14.1 | % | 14.9 | % | 18.1 | % | 15.4 | % | 20.2 | % | ||||||||||||
NIM (FTE)3 | 3.30 | % | 3.32 | % | 3.33 | % | 3.28 | % | 3.39 | % | 3.31 | % | 3.54 | % | ||||||||||||
Efficiency ratio3 | 54.4 | % | 53.8 | % | 57.2 | % | 58.3 | % | 59.0 | % | 55.9 | % | 53.7 | % | ||||||||||||
| NCOs to average loans | 0.21 | % | 0.19 | % | 0.16 | % | 0.14 | % | 0.12 | % | 0.17 | % | 0.17 | % | ||||||||||||
| ACL on loans to EOP loans | 1.08 | % | 1.05 | % | 1.01 | % | 0.95 | % | 0.93 | % | 1.08 | % | 0.93 | % | ||||||||||||
ACL4 to EOP loans | 1.14 | % | 1.12 | % | 1.08 | % | 1.03 | % | 1.03 | % | 1.14 | % | 1.03 | % | ||||||||||||
| NPLs to EOP loans | 1.23 | % | 1.22 | % | 0.94 | % | 0.98 | % | 0.83 | % | 1.23 | % | 0.83 | % | ||||||||||||
| Balance Sheet (EOP) | ||||||||||||||||||||||||||
| Total loans | $ | 36,285,887 | $ | 36,400,643 | $ | 36,150,513 | $ | 33,623,319 | $ | 32,991,927 | $ | 36,285,887 | $ | 32,991,927 | ||||||||||||
| Total assets | 53,552,272 | 53,602,293 | 53,119,645 | 49,534,918 | 49,089,836 | 53,552,272 | 49,089,836 | |||||||||||||||||||
| Total deposits | 40,823,560 | 40,845,746 | 39,999,228 | 37,699,418 | 37,235,180 | 40,823,560 | 37,235,180 | |||||||||||||||||||
| Total borrowed funds | 5,411,537 | 5,449,096 | 6,085,204 | 5,331,161 | 5,331,147 | 5,411,537 | 5,331,147 | |||||||||||||||||||
| Total shareholders' equity | 6,340,350 | 6,367,298 | 6,075,072 | 5,595,408 | 5,562,900 | 6,340,350 | 5,562,900 | |||||||||||||||||||
Capital Ratios3 | ||||||||||||||||||||||||||
| Risk-based capital ratios (EOP): | ||||||||||||||||||||||||||
| Tier 1 common equity | 11.38 | % | 11.00 | % | 10.73 | % | 10.76 | % | 10.70 | % | 11.38 | % | 10.70 | % | ||||||||||||
| Tier 1 capital | 11.98 | % | 11.60 | % | 11.33 | % | 11.40 | % | 11.35 | % | 11.98 | % | 11.35 | % | ||||||||||||
| Total capital | 13.37 | % | 12.94 | % | 12.71 | % | 12.74 | % | 12.64 | % | 13.37 | % | 12.64 | % | ||||||||||||
| Leverage ratio (average assets) | 9.21 | % | 9.05 | % | 8.90 | % | 8.96 | % | 8.83 | % | 9.21 | % | 8.83 | % | ||||||||||||
| Equity to assets (averages) | 11.78 | % | 11.60 | % | 11.31 | % | 11.32 | % | 10.81 | % | 11.51 | % | 10.91 | % | ||||||||||||
| TCE to TA | 7.41 | % | 7.44 | % | 6.94 | % | 6.86 | % | 6.85 | % | 7.41 | % | 6.85 | % | ||||||||||||
| Nonfinancial Data | ||||||||||||||||||||||||||
| Full-time equivalent employees | 4,066 | 4,105 | 4,267 | 3,955 | 3,940 | 4,066 | 3,940 | |||||||||||||||||||
| Banking centers | 280 | 280 | 280 | 258 | 258 | 280 | 258 | |||||||||||||||||||
1 Calculated using the federal statutory tax rate in effect of 21% for all periods. | ||||||||||||||||||||||||||
2 Cash dividends per common share divided by net income per common share (basic). | ||||||||||||||||||||||||||
3 Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. December 31, 2024 capital ratios are preliminary. | ||||||||||||||||||||||||||
4 Includes the allowance for credit losses on loans and unfunded loan commitments. | ||||||||||||||||||||||||||
| FTE - Fully taxable equivalent basis ROAA - Return on average assets ROAE - Return on average equity ROATCE - Return on average tangible common equity | ||||||||||||||||||||||||||
| NCOs - Net Charge-offs ACL - Allowance for Credit Losses EOP - End of period actual balances NPLs - Non-performing Loans TCE - Tangible common equity TA - Tangible assets | ||||||||||||||||||||||||||
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| Income Statement (unaudited) | ||||||||||||||||||||||||||
| ($ and shares in thousands, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Interest income | $ | 662,082 | $ | 679,925 | $ | 663,663 | $ | 595,981 | $ | 589,751 | $ | 2,601,651 | $ | 2,206,821 | ||||||||||||
| Less: interest expense | 267,902 | 288,201 | 275,242 | 239,523 | 225,343 | 1,070,868 | 703,668 | |||||||||||||||||||
| Net interest income | 394,180 | 391,724 | 388,421 | 356,458 | 364,408 | 1,530,783 | 1,503,153 | |||||||||||||||||||
| Provision for credit losses | 27,017 | 28,497 | 36,214 | 18,891 | 11,595 | 110,619 | 58,887 | |||||||||||||||||||
| Net interest income after provision for credit losses | 367,163 | 363,227 | 352,207 | 337,567 | 352,813 | 1,420,164 | 1,444,266 | |||||||||||||||||||
| Wealth and investment services fees | 30,012 | 29,117 | 29,358 | 28,304 | 27,656 | 116,791 | 107,784 | |||||||||||||||||||
| Service charges on deposit accounts | 20,577 | 20,350 | 19,350 | 17,898 | 18,667 | 78,175 | 71,945 | |||||||||||||||||||
| Debit card and ATM fees | 10,991 | 11,362 | 10,993 | 10,054 | 10,700 | 43,400 | 42,153 | |||||||||||||||||||
| Mortgage banking revenue | 7,026 | 7,669 | 7,064 | 4,478 | 3,691 | 26,237 | 16,319 | |||||||||||||||||||
| Capital markets income | 5,244 | 7,426 | 4,729 | 2,900 | 5,416 | 20,299 | 24,419 | |||||||||||||||||||
| Company-owned life insurance | 6,499 | 5,315 | 5,739 | 3,434 | 3,773 | 20,987 | 15,397 | |||||||||||||||||||
| Gain on sale of Visa Class B restricted shares | — | — | — | — | 21,635 | — | 21,635 | |||||||||||||||||||
| Other income | 15,539 | 12,975 | 10,036 | 10,470 | 9,381 | 49,020 | 39,955 | |||||||||||||||||||
| Debt securities gains (losses), net | (122) | (76) | 2 | (16) | (825) | (212) | (6,265) | |||||||||||||||||||
| Total noninterest income | 95,766 | 94,138 | 87,271 | 77,522 | 100,094 | 354,697 | 333,342 | |||||||||||||||||||
| Salaries and employee benefits | 146,605 | 147,494 | 159,193 | 149,803 | 141,649 | 603,095 | 546,364 | |||||||||||||||||||
| Occupancy | 29,733 | 27,130 | 26,547 | 27,019 | 26,514 | 110,429 | 106,676 | |||||||||||||||||||
| Equipment | 9,325 | 9,888 | 8,704 | 8,671 | 8,769 | 36,588 | 32,163 | |||||||||||||||||||
| Marketing | 12,653 | 11,036 | 11,284 | 10,634 | 10,813 | 45,607 | 39,511 | |||||||||||||||||||
| Technology | 21,429 | 23,343 | 24,002 | 20,023 | 20,493 | 88,797 | 80,343 | |||||||||||||||||||
| Communication | 4,176 | 4,681 | 4,480 | 4,000 | 4,212 | 17,337 | 16,980 | |||||||||||||||||||
| Professional fees | 11,055 | 7,278 | 10,552 | 6,406 | 8,250 | 35,291 | 27,335 | |||||||||||||||||||
| FDIC assessment | 11,970 | 11,722 | 9,676 | 11,313 | 27,702 | 44,681 | 56,730 | |||||||||||||||||||
| Amortization of intangibles | 7,237 | 7,411 | 7,425 | 5,455 | 5,869 | 27,528 | 24,155 | |||||||||||||||||||
| Amortization of tax credit investments | 4,556 | 3,277 | 2,747 | 2,749 | 7,200 | 13,329 | 15,367 | |||||||||||||||||||
| Other expense | 18,085 | 19,023 | 18,389 | 16,244 | 22,764 | 71,741 | 80,682 | |||||||||||||||||||
| Total noninterest expense | 276,824 | 272,283 | 282,999 | 262,317 | 284,235 | 1,094,423 | 1,026,306 | |||||||||||||||||||
| Income before income taxes | 186,105 | 185,082 | 156,479 | 152,772 | 168,672 | 680,438 | 751,302 | |||||||||||||||||||
| Income tax expense | 32,232 | 41,280 | 35,250 | 32,488 | 36,192 | 141,250 | 169,310 | |||||||||||||||||||
| Net income | $ | 153,873 | $ | 143,802 | $ | 121,229 | $ | 120,284 | $ | 132,480 | $ | 539,188 | $ | 581,992 | ||||||||||||
| Preferred dividends | (4,034) | (4,034) | (4,033) | (4,034) | (4,034) | (16,135) | (16,135) | |||||||||||||||||||
| Net income applicable to common shares | $ | 149,839 | $ | 139,768 | $ | 117,196 | $ | 116,250 | $ | 128,446 | $ | 523,053 | $ | 565,857 | ||||||||||||
| EPS, diluted | $ | 0.47 | $ | 0.44 | $ | 0.37 | $ | 0.40 | $ | 0.44 | $ | 1.68 | $ | 1.94 | ||||||||||||
| Weighted Average Common Shares Outstanding | ||||||||||||||||||||||||||
| Basic | 315,673 | 315,622 | 315,585 | 290,980 | 290,701 | 309,499 | 290,748 | |||||||||||||||||||
| Diluted | 318,803 | 317,331 | 316,461 | 292,207 | 292,029 | 311,001 | 291,855 | |||||||||||||||||||
| Common shares outstanding (EOP) | 318,980 | 318,955 | 318,969 | 293,330 | 292,655 | 318,980 | 292,655 | |||||||||||||||||||
8
| End of Period Balance Sheet (unaudited) | |||||||||||||||||
| ($ in thousands) | |||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||
| Assets | |||||||||||||||||
| Cash and due from banks | $ | 394,450 | $ | 498,120 | $ | 428,665 | $ | 350,990 | $ | 430,866 | |||||||
| Money market and other interest-earning investments | 833,518 | 693,450 | 804,381 | 588,509 | 744,192 | ||||||||||||
| Investments: | |||||||||||||||||
| Treasury and government-sponsored agencies | 2,289,903 | 2,335,716 | 2,207,004 | 2,243,754 | 2,453,950 | ||||||||||||
| Mortgage-backed securities | 6,175,103 | 6,085,826 | 5,890,371 | 5,566,881 | 5,245,691 | ||||||||||||
| States and political subdivisions | 1,637,379 | 1,665,128 | 1,678,597 | 1,672,061 | 1,693,819 | ||||||||||||
| Other securities | 781,656 | 783,079 | 775,623 | 760,847 | 779,048 | ||||||||||||
| Total investments | 10,884,041 | 10,869,749 | 10,551,595 | 10,243,543 | 10,172,508 | ||||||||||||
| Loans held-for-sale, at fair value | 34,483 | 62,376 | 66,126 | 19,418 | 32,006 | ||||||||||||
| Loans: | |||||||||||||||||
| Commercial | 10,288,560 | 10,408,095 | 10,332,631 | 9,648,269 | 9,512,230 | ||||||||||||
| Commercial and agriculture real estate | 16,307,486 | 16,356,216 | 16,016,958 | 14,653,958 | 14,140,629 | ||||||||||||
| Residential real estate | 6,797,586 | 6,757,896 | 6,894,957 | 6,661,379 | 6,699,443 | ||||||||||||
| Consumer | 2,892,255 | 2,878,436 | 2,905,967 | 2,659,713 | 2,639,625 | ||||||||||||
| Total loans | 36,285,887 | 36,400,643 | 36,150,513 | 33,623,319 | 32,991,927 | ||||||||||||
| Allowance for credit losses on loans | (392,522) | (380,840) | (366,335) | (319,713) | (307,610) | ||||||||||||
| Premises and equipment, net | 588,970 | 599,528 | 601,945 | 564,007 | 565,396 | ||||||||||||
| Goodwill and other intangible assets | 2,296,098 | 2,305,084 | 2,306,204 | 2,095,511 | 2,100,966 | ||||||||||||
| Company-owned life insurance | 859,851 | 863,723 | 862,032 | 767,423 | 767,902 | ||||||||||||
| Accrued interest receivable and other assets | 1,767,496 | 1,690,460 | 1,714,519 | 1,601,911 | 1,591,683 | ||||||||||||
| Total assets | $ | 53,552,272 | $ | 53,602,293 | $ | 53,119,645 | $ | 49,534,918 | $ | 49,089,836 | |||||||
| Liabilities and Equity | |||||||||||||||||
| Noninterest-bearing demand deposits | $ | 9,399,019 | $ | 9,429,285 | $ | 9,336,042 | $ | 9,257,709 | $ | 9,664,247 | |||||||
| Interest-bearing: | |||||||||||||||||
| Checking and NOW accounts | 7,538,987 | 7,314,245 | 7,680,865 | 7,236,667 | 7,331,487 | ||||||||||||
| Savings accounts | 4,753,279 | 4,781,447 | 4,983,811 | 5,020,095 | 5,099,186 | ||||||||||||
| Money market accounts | 11,807,228 | 11,601,461 | 10,485,491 | 10,234,113 | 9,561,116 | ||||||||||||
| Other time deposits | 5,819,970 | 6,010,070 | 5,688,432 | 4,760,659 | 4,565,137 | ||||||||||||
| Total core deposits | 39,318,483 | 39,136,508 | 38,174,641 | 36,509,243 | 36,221,173 | ||||||||||||
| Brokered deposits | 1,505,077 | 1,709,238 | 1,824,587 | 1,190,175 | 1,014,007 | ||||||||||||
| Total deposits | 40,823,560 | 40,845,746 | 39,999,228 | 37,699,418 | 37,235,180 | ||||||||||||
| Federal funds purchased and interbank borrowings | 385 | 135,263 | 250,154 | 50,416 | 390 | ||||||||||||
| Securities sold under agreements to repurchase | 268,975 | 244,626 | 240,713 | 274,493 | 285,206 | ||||||||||||
| Federal Home Loan Bank advances | 4,452,559 | 4,471,153 | 4,744,560 | 4,193,039 | 4,280,681 | ||||||||||||
| Other borrowings | 689,618 | 598,054 | 849,777 | 813,213 | 764,870 | ||||||||||||
| Total borrowed funds | 5,411,537 | 5,449,096 | 6,085,204 | 5,331,161 | 5,331,147 | ||||||||||||
| Accrued expenses and other liabilities | 976,825 | 940,153 | 960,141 | 908,931 | 960,609 | ||||||||||||
| Total liabilities | 47,211,922 | 47,234,995 | 47,044,573 | 43,939,510 | 43,526,936 | ||||||||||||
| Preferred stock, common stock, surplus, and retained earnings | 7,086,393 | 6,971,054 | 6,866,480 | 6,375,036 | 6,301,709 | ||||||||||||
| Accumulated other comprehensive income (loss), net of tax | (746,043) | (603,756) | (791,408) | (779,628) | (738,809) | ||||||||||||
| Total shareholders' equity | 6,340,350 | 6,367,298 | 6,075,072 | 5,595,408 | 5,562,900 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 53,552,272 | $ | 53,602,293 | $ | 53,119,645 | $ | 49,534,918 | $ | 49,089,836 | |||||||
9
| Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||
| Average | Income1/ | Yield/ | Average | Income1/ | Yield/ | Average | Income1/ | Yield/ | ||||||||||||||||||||||||||||||
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||||||||||
| Money market and other interest-earning investments | $ | 1,072,509 | $ | 12,843 | 4.76 | % | $ | 904,176 | $ | 11,696 | 5.15 | % | $ | 1,094,196 | $ | 14,425 | 5.23 | % | ||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||||||||||||||||
| Treasury and government-sponsored agencies | 2,325,120 | 20,841 | 3.59 | % | 2,255,629 | 21,851 | 3.87 | % | 2,490,793 | 25,848 | 4.15 | % | ||||||||||||||||||||||||||
| Mortgage-backed securities | 6,149,775 | 50,416 | 3.28 | % | 5,977,058 | 48,425 | 3.24 | % | 4,913,151 | 34,209 | 2.79 | % | ||||||||||||||||||||||||||
| States and political subdivisions | 1,654,591 | 13,698 | 3.31 | % | 1,668,454 | 14,042 | 3.37 | % | 1,686,119 | 14,541 | 3.45 | % | ||||||||||||||||||||||||||
| Other securities | 783,708 | 10,518 | 5.37 | % | 785,107 | 12,547 | 6.39 | % | 749,697 | 10,440 | 5.57 | % | ||||||||||||||||||||||||||
| Total investments | 10,913,194 | 95,473 | 3.50 | % | 10,686,248 | 96,865 | 3.63 | % | 9,839,760 | 85,038 | 3.46 | % | ||||||||||||||||||||||||||
Loans:2 | ||||||||||||||||||||||||||||||||||||||
| Commercial | 10,401,056 | 176,996 | 6.81 | % | 10,373,340 | 183,878 | 7.09 | % | 9,351,344 | 163,921 | 7.01 | % | ||||||||||||||||||||||||||
| Commercial and agriculture real estate | 16,326,802 | 263,062 | 6.44 | % | 16,216,842 | 274,832 | 6.78 | % | 14,074,908 | 226,716 | 6.44 | % | ||||||||||||||||||||||||||
| Residential real estate loans | 6,814,829 | 68,346 | 4.01 | % | 6,833,597 | 67,084 | 3.93 | % | 6,706,425 | 62,054 | 3.70 | % | ||||||||||||||||||||||||||
| Consumer | 2,883,413 | 51,139 | 7.06 | % | 2,891,260 | 51,714 | 7.12 | % | 2,634,650 | 43,697 | 6.58 | % | ||||||||||||||||||||||||||
| Total loans | 36,426,100 | 559,543 | 6.14 | % | 36,315,039 | 577,508 | 6.36 | % | 32,767,327 | 496,388 | 6.06 | % | ||||||||||||||||||||||||||
| Total earning assets | $ | 48,411,803 | $ | 667,859 | 5.52 | % | $ | 47,905,463 | $ | 686,069 | 5.73 | % | $ | 43,701,283 | $ | 595,851 | 5.45 | % | ||||||||||||||||||||
| Less: Allowance for credit losses on loans | (382,799) | (366,667) | (304,195) | |||||||||||||||||||||||||||||||||||
| Non-earning Assets: | ||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 370,932 | $ | 413,583 | $ | 415,266 | ||||||||||||||||||||||||||||||||
| Other assets | 5,402,359 | 5,394,032 | 5,027,892 | |||||||||||||||||||||||||||||||||||
| Total assets | $ | 53,802,295 | $ | 53,346,411 | $ | 48,840,246 | ||||||||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||||
| Checking and NOW accounts | $ | 7,338,532 | $ | 23,747 | 1.29 | % | $ | 7,551,264 | $ | 29,344 | 1.55 | % | $ | 7,280,268 | $ | 25,015 | 1.36 | % | ||||||||||||||||||||
| Savings accounts | 4,750,387 | 4,467 | 0.37 | % | 4,860,161 | 5,184 | 0.42 | % | 5,184,712 | 5,196 | 0.40 | % | ||||||||||||||||||||||||||
| Money market accounts | 11,900,305 | 103,818 | 3.47 | % | 11,064,433 | 106,148 | 3.82 | % | 9,244,117 | 85,717 | 3.68 | % | ||||||||||||||||||||||||||
| Other time deposits | 5,985,911 | 61,679 | 4.10 | % | 5,928,241 | 64,435 | 4.32 | % | 4,516,432 | 44,396 | 3.90 | % | ||||||||||||||||||||||||||
| Total interest-bearing core deposits | 29,975,135 | 193,711 | 2.57 | % | 29,404,099 | 205,111 | 2.78 | % | 26,225,529 | 160,324 | 2.43 | % | ||||||||||||||||||||||||||
| Brokered deposits | 1,662,698 | 21,579 | 5.16 | % | 1,829,218 | 24,616 | 5.35 | % | 1,012,647 | 13,041 | 5.11 | % | ||||||||||||||||||||||||||
| Total interest-bearing deposits | 31,637,833 | 215,290 | 2.71 | % | 31,233,317 | 229,727 | 2.93 | % | 27,238,176 | 173,365 | 2.53 | % | ||||||||||||||||||||||||||
| Federal funds purchased and interbank borrowings | 433 | 23 | 21.13 | % | 14,549 | 292 | 7.98 | % | 620 | 8 | 5.12 | % | ||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 249,133 | 584 | 0.93 | % | 239,524 | 612 | 1.02 | % | 277,927 | 910 | 1.30 | % | ||||||||||||||||||||||||||
| Federal Home Loan Bank advances | 4,461,733 | 43,788 | 3.90 | % | 4,572,046 | 47,719 | 4.15 | % | 4,182,877 | 38,394 | 3.64 | % | ||||||||||||||||||||||||||
| Other borrowings | 669,580 | 8,217 | 4.88 | % | 754,544 | 9,851 | 5.19 | % | 869,644 | 12,666 | 5.78 | % | ||||||||||||||||||||||||||
| Total borrowed funds | 5,380,879 | 52,612 | 3.89 | % | 5,580,663 | 58,474 | 4.17 | % | 5,331,068 | 51,978 | 3.87 | % | ||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 37,018,712 | $ | 267,902 | 2.88 | % | $ | 36,813,980 | $ | 288,201 | 3.11 | % | $ | 32,569,244 | $ | 225,343 | 2.74 | % | ||||||||||||||||||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
| Demand deposits | $ | 9,509,446 | $ | 9,371,698 | $ | 9,949,616 | ||||||||||||||||||||||||||||||||
| Other liabilities | 935,184 | 970,662 | 1,039,899 | |||||||||||||||||||||||||||||||||||
| Shareholders' equity | 6,338,953 | 6,190,071 | 5,281,487 | |||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 53,802,295 | $ | 53,346,411 | $ | 48,840,246 | ||||||||||||||||||||||||||||||||
| Net interest rate spread | 2.64 | % | 2.62 | % | 2.71 | % | ||||||||||||||||||||||||||||||||
| Net interest margin (GAAP) | 3.26 | % | 3.27 | % | 3.34 | % | ||||||||||||||||||||||||||||||||
Net interest margin (FTE)3 | 3.30 | % | 3.32 | % | 3.39 | % | ||||||||||||||||||||||||||||||||
| FTE adjustment | $ | 5,777 | $ | 6,144 | $ | 6,100 | ||||||||||||||||||||||||||||||||
1 Interest income is reflected on a FTE basis. | ||||||||||||||||||||||||||||||||||||||
2 Includes loans held-for-sale. | ||||||||||||||||||||||||||||||||||||||
3 Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. | ||||||||||||||||||||||||||||||||||||||
10
| Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
| Average | Income1/ | Yield/ | Average | Income1/ | Yield/ | |||||||||||||||||||||
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||
| Money market and other interest-earning investments | $ | 887,771 | $ | 45,835 | 5.16 | % | $ | 826,453 | $ | 39,683 | 4.80 | % | ||||||||||||||
| Investments: | ||||||||||||||||||||||||||
| Treasury and government-sponsored agencies | 2,288,053 | 87,489 | 3.82 | % | 2,322,792 | 84,771 | 3.65 | % | ||||||||||||||||||
| Mortgage-backed securities | 5,829,322 | 185,633 | 3.18 | % | 5,178,940 | 136,827 | 2.64 | % | ||||||||||||||||||
| States and political subdivisions | 1,672,493 | 56,006 | 3.35 | % | 1,749,722 | 57,847 | 3.31 | % | ||||||||||||||||||
| Other securities | 781,969 | 47,821 | 6.12 | % | 776,456 | 39,166 | 5.04 | % | ||||||||||||||||||
| Total investments | $ | 10,571,837 | $ | 376,949 | 3.57 | % | $ | 10,027,910 | $ | 318,611 | 3.18 | % | ||||||||||||||
Loans:2 | ||||||||||||||||||||||||||
| Commercial | 10,166,184 | 711,562 | 7.00 | % | 9,570,639 | 639,131 | 6.68 | % | ||||||||||||||||||
| Commercial and agriculture real estate | 15,698,854 | 1,028,387 | 6.55 | % | 13,405,946 | 825,053 | 6.15 | % | ||||||||||||||||||
| Residential real estate loans | 6,823,798 | 266,116 | 3.90 | % | 6,646,684 | 243,646 | 3.67 | % | ||||||||||||||||||
| Consumer | 2,832,823 | 197,316 | 6.97 | % | 2,618,098 | 164,125 | 6.27 | % | ||||||||||||||||||
| Total loans | 35,521,659 | 2,203,381 | 6.20 | % | 32,241,367 | 1,871,955 | 5.81 | % | ||||||||||||||||||
| Total earning assets | $ | 46,981,267 | $ | 2,626,165 | 5.59 | % | $ | 43,095,730 | $ | 2,230,249 | 5.18 | % | ||||||||||||||
| Less: Allowance for credit losses on loans | (348,638) | (302,486) | ||||||||||||||||||||||||
| Non-earning Assets: | ||||||||||||||||||||||||||
| Cash and due from banks | $ | 394,350 | $ | 413,569 | ||||||||||||||||||||||
| Other assets | 5,275,427 | 4,945,394 | ||||||||||||||||||||||||
| Total assets | $ | 52,302,406 | $ | 48,152,207 | ||||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||||
| Checking and NOW accounts | $ | 7,554,510 | $ | 112,741 | 1.49 | % | $ | 7,664,183 | $ | 94,263 | 1.23 | % | ||||||||||||||
| Savings accounts | 4,919,559 | 19,922 | 0.40 | % | 5,638,766 | 14,941 | 0.26 | % | ||||||||||||||||||
| Money market accounts | 10,905,756 | 406,739 | 3.73 | % | 7,249,497 | 206,634 | 2.85 | % | ||||||||||||||||||
| Other time deposits | 5,492,898 | 230,132 | 4.19 | % | 3,875,984 | 123,428 | 3.18 | % | ||||||||||||||||||
| Total interest-bearing core deposits | 28,872,723 | 769,534 | 2.67 | % | 24,428,430 | 439,266 | 1.80 | % | ||||||||||||||||||
| Brokered deposits | 1,447,491 | 76,728 | 5.30 | % | 913,349 | 45,094 | 4.94 | % | ||||||||||||||||||
| Total interest-bearing deposits | 30,320,214 | 846,262 | 2.79 | % | 25,341,779 | 484,360 | 1.91 | % | ||||||||||||||||||
| Federal funds purchased and interbank borrowings | 57,950 | 3,262 | 5.63 | % | 229,386 | 11,412 | 4.98 | % | ||||||||||||||||||
| Securities sold under agreements to repurchase | 258,630 | 2,752 | 1.06 | % | 332,853 | 3,299 | 0.99 | % | ||||||||||||||||||
| Federal Home Loan Bank advances | 4,473,800 | 177,317 | 3.96 | % | 4,568,964 | 161,860 | 3.54 | % | ||||||||||||||||||
| Other borrowings | 784,994 | 41,275 | 5.26 | % | 822,471 | 42,737 | 5.20 | % | ||||||||||||||||||
| Total borrowed funds | 5,575,374 | 224,606 | 4.03 | % | 5,953,674 | 219,308 | 3.68 | % | ||||||||||||||||||
| Total interest-bearing liabilities | 35,895,588 | 1,070,868 | 2.98 | % | 31,295,453 | 703,668 | 2.25 | % | ||||||||||||||||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
| Demand deposits | $ | 9,424,577 | $ | 10,633,806 | ||||||||||||||||||||||
| Other liabilities | 962,511 | 968,635 | ||||||||||||||||||||||||
| Shareholders' equity | 6,019,730 | 5,254,313 | ||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 52,302,406 | $ | 48,152,207 | ||||||||||||||||||||||
| Net interest rate spread | 2.61 | % | 2.93 | % | ||||||||||||||||||||||
| Net interest margin (GAAP) | 3.26 | % | 3.49 | % | ||||||||||||||||||||||
Net interest margin (FTE)3 | 3.31 | % | 3.54 | % | ||||||||||||||||||||||
| FTE adjustment | $ | 24,514 | $ | 23,428 | ||||||||||||||||||||||
1 Interest income is reflected on a FTE. | ||||||||||||||||||||||||||
2 Includes loans held-for-sale. | ||||||||||||||||||||||||||
3 Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. | ||||||||||||||||||||||||||
11
| Asset Quality (EOP) (unaudited) | ||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Allowance for credit losses: | ||||||||||||||||||||||||||
| Beginning allowance for credit losses on loans | $ | 380,840 | $ | 366,335 | $ | 319,713 | $ | 307,610 | $ | 303,982 | $ | 307,610 | $ | 303,671 | ||||||||||||
| Allowance established for acquired PCD loans | — | 2,803 | 23,922 | — | — | 26,725 | — | |||||||||||||||||||
| Provision for credit losses on loans | 30,417 | 29,176 | 36,745 | 23,853 | 13,329 | 120,191 | 59,849 | |||||||||||||||||||
| Gross charge-offs | (21,278) | (18,965) | (17,041) | (14,020) | (13,202) | (71,304) | (68,463) | |||||||||||||||||||
| Gross recoveries | 2,543 | 1,491 | 2,996 | 2,270 | 3,501 | 9,300 | 12,553 | |||||||||||||||||||
| NCOs | (18,735) | (17,474) | (14,045) | (11,750) | (9,701) | (62,004) | (55,910) | |||||||||||||||||||
| Ending allowance for credit losses on loans | $ | 392,522 | $ | 380,840 | $ | 366,335 | $ | 319,713 | $ | 307,610 | $ | 392,522 | $ | 307,610 | ||||||||||||
| Beginning allowance for credit losses on unfunded commitments | $ | 25,054 | $ | 25,733 | $ | 26,264 | $ | 31,226 | $ | 32,960 | $ | 31,226 | $ | 32,188 | ||||||||||||
| Provision (release) for credit losses on unfunded commitments | (3,400) | (679) | (531) | (4,962) | (1,734) | (9,572) | (962) | |||||||||||||||||||
| Ending allowance for credit losses on unfunded commitments | $ | 21,654 | $ | 25,054 | $ | 25,733 | $ | 26,264 | $ | 31,226 | $ | 21,654 | $ | 31,226 | ||||||||||||
| Allowance for credit losses | $ | 414,176 | $ | 405,894 | $ | 392,068 | $ | 345,977 | $ | 338,836 | $ | 414,176 | $ | 338,836 | ||||||||||||
| Provision for credit losses on loans | $ | 30,417 | $ | 29,176 | $ | 36,745 | $ | 23,853 | $ | 13,329 | $ | 120,191 | $ | 59,849 | ||||||||||||
| Provision (release) for credit losses on unfunded commitments | (3,400) | (679) | (531) | (4,962) | (1,734) | (9,572) | (962) | |||||||||||||||||||
| Provision for credit losses | $ | 27,017 | $ | 28,497 | $ | 36,214 | $ | 18,891 | $ | 11,595 | $ | 110,619 | $ | 58,887 | ||||||||||||
NCOs / average loans1 | 0.21 | % | 0.19 | % | 0.16 | % | 0.14 | % | 0.12 | % | 0.17 | % | 0.17 | % | ||||||||||||
Average loans1 | $ | 36,410,414 | $ | 36,299,544 | $ | 36,053,845 | $ | 33,242,739 | $ | 32,752,406 | $ | 35,506,298 | $ | 32,233,020 | ||||||||||||
EOP loans1 | 36,285,887 | 36,400,643 | 36,150,513 | 33,623,319 | 32,991,927 | 36,285,887 | 32,991,927 | |||||||||||||||||||
ACL on loans / EOP loans1 | 1.08 | % | 1.05 | % | 1.01 | % | 0.95 | % | 0.93 | % | 1.08 | % | 0.93 | % | ||||||||||||
ACL / EOP loans1 | 1.14 | % | 1.12 | % | 1.08 | % | 1.03 | % | 1.03 | % | 1.14 | % | 1.03 | % | ||||||||||||
| Underperforming Assets: | ||||||||||||||||||||||||||
| Loans 90 days and over (still accruing) | $ | 4,060 | $ | 1,177 | $ | 5,251 | $ | 2,172 | $ | 961 | $ | 4,060 | $ | 961 | ||||||||||||
| Nonaccrual loans | 447,979 | 443,597 | 340,181 | 328,645 | 274,821 | 447,979 | 274,821 | |||||||||||||||||||
| Foreclosed assets | 4,294 | 4,077 | 8,290 | 9,344 | 9,434 | 4,294 | 9,434 | |||||||||||||||||||
| Total underperforming assets | $ | 456,333 | $ | 448,851 | $ | 353,722 | $ | 340,161 | $ | 285,216 | $ | 456,333 | $ | 285,216 | ||||||||||||
| Classified and Criticized Assets: | ||||||||||||||||||||||||||
| Nonaccrual loans | $ | 447,979 | $ | 443,597 | $ | 340,181 | $ | 328,645 | $ | 274,821 | $ | 447,979 | $ | 274,821 | ||||||||||||
| Substandard loans (still accruing) | 1,073,413 | 1,074,243 | 841,087 | 626,157 | 599,358 | 1,073,413 | 599,358 | |||||||||||||||||||
| Loans 90 days and over (still accruing) | 4,060 | 1,177 | 5,251 | 2,172 | 961 | 4,060 | 961 | |||||||||||||||||||
| Total classified loans - "problem loans" | 1,525,452 | 1,519,017 | 1,186,519 | 956,974 | 875,140 | 1,525,452 | 875,140 | |||||||||||||||||||
| Other classified assets | 58,954 | 59,485 | 60,772 | 54,392 | 48,930 | 58,954 | 48,930 | |||||||||||||||||||
| Special Mention | 908,630 | 837,543 | 967,655 | 827,419 | 843,920 | 908,630 | 843,920 | |||||||||||||||||||
| Total classified and criticized assets | $ | 2,493,036 | $ | 2,416,045 | $ | 2,214,946 | $ | 1,838,785 | $ | 1,767,990 | $ | 2,493,036 | $ | 1,767,990 | ||||||||||||
| Loans 30-89 days past due (still accruing) | $ | 93,141 | $ | 91,750 | $ | 51,712 | $ | 53,112 | $ | 71,868 | $ | 93,141 | $ | 71,868 | ||||||||||||
Nonaccrual loans / EOP loans1 | 1.23 | % | 1.22 | % | 0.94 | % | 0.98 | % | 0.83 | % | 1.23 | % | 0.83 | % | ||||||||||||
| ACL / nonaccrual loans | 92 | % | 92 | % | 115 | % | 105 | % | 123 | % | 92 | % | 123 | % | ||||||||||||
Under-performing assets/EOP loans1 | 1.26 | % | 1.23 | % | 0.98 | % | 1.01 | % | 0.86 | % | 1.26 | % | 0.86 | % | ||||||||||||
| Under-performing assets/EOP assets | 0.85 | % | 0.84 | % | 0.67 | % | 0.69 | % | 0.58 | % | 0.85 | % | 0.58 | % | ||||||||||||
30+ day delinquencies/EOP loans1 | 0.27 | % | 0.26 | % | 0.16 | % | 0.16 | % | 0.22 | % | 0.27 | % | 0.22 | % | ||||||||||||
1 Excludes loans held-for-sale. | ||||||||||||||||||||||||||
12
| Non-GAAP Measures (unaudited) | ||||||||||||||||||||||||||
| ($ and shares in thousands, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Earnings Per Share: | ||||||||||||||||||||||||||
| Net income applicable to common shares | $ | 149,839 | $ | 139,768 | $ | 117,196 | $ | 116,250 | $ | 128,446 | $ | 523,053 | $ | 565,857 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Merger-related charges | 8,117 | 6,860 | 19,440 | 2,908 | 5,529 | 37,325 | 28,716 | |||||||||||||||||||
Tax effect1 | (2,058) | (1,528) | (4,413) | (710) | (1,343) | (8,709) | (5,834) | |||||||||||||||||||
| Merger-related charges, net | 6,059 | 5,332 | 15,027 | 2,198 | 4,186 | 28,616 | 22,882 | |||||||||||||||||||
| Debt securities (gains) losses | 122 | 76 | (2) | 16 | 825 | 212 | 6,265 | |||||||||||||||||||
Tax effect1 | (31) | (17) | 1 | (4) | (200) | (51) | (1,375) | |||||||||||||||||||
| Debt securities (gains) losses, net | 91 | 59 | (1) | 12 | 625 | 161 | 4,890 | |||||||||||||||||||
| Separation expense | — | 2,646 | — | — | — | 2,646 | — | |||||||||||||||||||
Tax effect1 | — | (589) | — | — | — | (589) | — | |||||||||||||||||||
| Separation expense, net | — | 2,057 | — | — | — | 2,057 | — | |||||||||||||||||||
| CECL Day 1 non-PCD provision expense | — | — | 15,312 | — | — | 15,312 | — | |||||||||||||||||||
Tax effect1 | — | — | (3,476) | — | — | (3,476) | — | |||||||||||||||||||
| CECL Day 1 non-PCD provision expense, net | — | — | 11,836 | — | — | 11,836 | — | |||||||||||||||||||
| Distribution of excess pension assets | — | — | — | 13,318 | — | 13,318 | 13,318 | — | ||||||||||||||||||
Tax effect1 | — | — | — | (3,250) | — | (3,250) | (3,250) | — | ||||||||||||||||||
| Distribution excess pension assets, net | — | — | — | 10,068 | — | 10,068 | — | |||||||||||||||||||
| FDIC special assessment | — | — | — | 2,994 | 19,052 | 2,994 | 19,052 | |||||||||||||||||||
Tax effect1 | — | — | — | (731) | (4,628) | (731) | (4,628) | |||||||||||||||||||
| FDIC special assessment, net | — | — | — | 2,263 | 14,424 | 2,263 | 14,424 | |||||||||||||||||||
| Gain on sale of Visa Class B restricted shares | — | — | — | — | (21,635) | — | (21,635) | |||||||||||||||||||
Tax effect1 | — | — | — | — | 5,255 | — | 5,255 | |||||||||||||||||||
| Gain on sale of Visa Class B restricted shares, net | — | — | — | — | (16,380) | — | (16,380) | |||||||||||||||||||
| Contract termination charge | — | — | — | — | 4,413 | — | 4,413 | |||||||||||||||||||
Tax effect1 | — | — | — | — | (1,072) | — | (1,072) | |||||||||||||||||||
| Contract termination charge, net | — | — | — | — | 3,341 | — | 3,341 | |||||||||||||||||||
| Louisville expenses | — | — | — | — | — | — | 3,361 | |||||||||||||||||||
Tax effect1 | — | — | — | — | — | — | (392) | |||||||||||||||||||
| Louisville expenses, net | — | — | — | — | — | — | 2,969 | |||||||||||||||||||
| Property optimization charges | — | — | — | — | — | — | 1,559 | |||||||||||||||||||
Tax effect1 | — | — | — | — | — | — | (315) | |||||||||||||||||||
| Property optimization charges, net | — | — | — | — | — | — | 1,244 | |||||||||||||||||||
| Total adjustments, net | 6,150 | 7,448 | 26,862 | 14,541 | 6,196 | 55,001 | 33,370 | |||||||||||||||||||
| Net income applicable to common shares, adjusted | $ | 155,989 | $ | 147,216 | $ | 144,058 | $ | 130,791 | $ | 134,642 | $ | 578,054 | $ | 599,227 | ||||||||||||
| Weighted average diluted common shares outstanding | 318,803 | 317,331 | 316,461 | 292,207 | 292,029 | 311,001 | 291,855 | |||||||||||||||||||
| EPS, diluted | $ | 0.47 | $ | 0.44 | $ | 0.37 | $ | 0.40 | $ | 0.44 | $ | 1.68 | $ | 1.94 | ||||||||||||
| Adjusted EPS, diluted | $ | 0.49 | $ | 0.46 | $ | 0.46 | $ | 0.45 | $ | 0.46 | $ | 1.86 | $ | 2.05 | ||||||||||||
| NIM: | ||||||||||||||||||||||||||
| Net interest income | $ | 394,180 | $ | 391,724 | $ | 388,421 | $ | 356,458 | $ | 364,408 | $ | 1,530,783 | $ | 1,503,153 | ||||||||||||
Add: FTE adjustment2 | 5,777 | 6,144 | 6,340 | 6,253 | 6,100 | 24,514 | 23,428 | |||||||||||||||||||
| Net interest income (FTE) | $ | 399,957 | $ | 397,868 | $ | 394,761 | $ | 362,711 | $ | 370,508 | $ | 1,555,297 | $ | 1,526,581 | ||||||||||||
| Average earning assets | $ | 48,411,803 | $ | 47,905,463 | $ | 47,406,849 | $ | 44,175,079 | $ | 43,701,283 | $ | 46,981,267 | $ | 43,095,730 | ||||||||||||
| NIM (GAAP) | 3.26 | % | 3.27 | % | 3.28 | % | 3.23 | % | 3.34 | % | 3.26 | % | 3.49 | % | ||||||||||||
| NIM (FTE) | 3.30 | % | 3.32 | % | 3.33 | % | 3.28 | % | 3.39 | % | 3.31 | % | 3.54 | % | ||||||||||||
| Refer to last page of Non-GAAP reconciliations for footnotes. | ||||||||||||||||||||||||||
13
| Non-GAAP Measures (unaudited) | ||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| PPNR: | ||||||||||||||||||||||||||
Net interest income (FTE)2 | $ | 399,957 | $ | 397,868 | $ | 394,761 | $ | 362,711 | $ | 370,508 | $ | 1,555,297 | $ | 1,526,581 | ||||||||||||
| Add: Noninterest income | 95,766 | 94,138 | 87,271 | 77,522 | 100,094 | 354,697 | 333,342 | |||||||||||||||||||
| Total revenue (FTE) | 495,723 | 492,006 | 482,032 | 440,233 | 470,602 | 1,909,994 | 1,859,923 | |||||||||||||||||||
| Less: Noninterest expense | (276,824) | (272,283) | (282,999) | (262,317) | (284,235) | (1,094,423) | (1,026,306) | |||||||||||||||||||
| PPNR | $ | 218,899 | $ | 219,723 | $ | 199,033 | $ | 177,916 | $ | 186,367 | $ | 815,571 | $ | 833,617 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Gain on sale of Visa Class B restricted shares | $ | — | $ | — | $ | — | $ | — | $ | (21,635) | $ | — | $ | (21,635) | ||||||||||||
| Debt securities (gains) losses | 122 | 76 | (2) | 16 | 825 | 212 | 6,265 | |||||||||||||||||||
| Noninterest income adjustments | 122 | 76 | (2) | 16 | (20,810) | 212 | (15,370) | |||||||||||||||||||
| Adjusted noninterest income | 95,888 | 94,214 | 87,269 | 77,538 | 79,284 | 354,909 | 317,972 | |||||||||||||||||||
| Adjusted revenue | $ | 495,845 | $ | 492,082 | $ | 482,030 | $ | 440,249 | $ | 449,792 | $ | 1,910,206 | $ | 1,844,553 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Merger-related charges | $ | 8,117 | $ | 6,860 | $ | 19,440 | $ | 2,908 | $ | 5,529 | $ | 37,325 | $ | 28,716 | ||||||||||||
| Separation expense | — | 2,646 | — | — | — | 2,646 | — | |||||||||||||||||||
| Distribution of excess pension assets | — | — | — | 13,318 | — | 13,318 | — | |||||||||||||||||||
| FDIC Special Assessment | — | — | — | 2,994 | 19,052 | 2,994 | 19,052 | |||||||||||||||||||
| Contract termination charges | — | — | — | — | 4,413 | — | 4,413 | |||||||||||||||||||
| Louisville expenses | — | — | — | — | — | — | 3,361 | |||||||||||||||||||
| Property optimization charges | — | — | — | — | — | — | 1,559 | |||||||||||||||||||
| Noninterest expense adjustments | 8,117 | 9,506 | 19,440 | 19,220 | 28,994 | 56,283 | 57,101 | |||||||||||||||||||
| Adjusted total noninterest expense | (268,707) | (262,777) | (263,559) | (243,097) | (255,241) | (1,038,140) | (969,205) | |||||||||||||||||||
| Adjusted PPNR | $ | 227,138 | $ | 229,305 | $ | 218,471 | $ | 197,152 | $ | 194,551 | $ | 872,066 | $ | 875,348 | ||||||||||||
| Efficiency Ratio: | ||||||||||||||||||||||||||
| Noninterest expense | $ | 276,824 | $ | 272,283 | $ | 282,999 | $ | 262,317 | $ | 284,235 | $ | 1,094,423 | $ | 1,026,306 | ||||||||||||
| Less: Amortization of intangibles | (7,237) | (7,411) | (7,425) | (5,455) | (5,869) | (27,528) | (24,155) | |||||||||||||||||||
| Noninterest expense, excl. amortization of intangibles | 269,587 | 264,872 | 275,574 | 256,862 | 278,366 | 1,066,895 | 1,002,151 | |||||||||||||||||||
| Less: Amortization of tax credit investments | (4,556) | (3,277) | (2,747) | (2,749) | (7,200) | (13,329) | (15,367) | |||||||||||||||||||
| Less: Noninterest expense adjustments | (8,117) | (9,506) | (19,440) | (19,220) | (28,994) | (56,283) | (57,101) | |||||||||||||||||||
| Adjusted noninterest expense, excluding amortization | $ | 256,914 | $ | 252,089 | $ | 253,387 | $ | 234,893 | $ | 242,172 | $ | 997,283 | $ | 929,683 | ||||||||||||
Total revenue (FTE)2 | $ | 495,723 | $ | 492,006 | $ | 482,032 | $ | 440,233 | $ | 470,602 | $ | 1,909,994 | $ | 1,859,923 | ||||||||||||
| Less: Debt securities (gains) losses | 122 | 76 | (2) | 16 | 825 | 212 | 6,265 | |||||||||||||||||||
| Total revenue excl. debt securities (gains) losses | 495,845 | 492,082 | 482,030 | 440,249 | 471,427 | 1,910,206 | 1,866,188 | |||||||||||||||||||
| Less: Gain on sale of Visa Class B restricted shares | — | — | — | — | (21,635) | — | (21,635) | |||||||||||||||||||
| Total adjusted revenue | $ | 495,845 | $ | 492,082 | $ | 482,030 | $ | 440,249 | $ | 449,792 | $ | 1,910,206 | $ | 1,844,553 | ||||||||||||
| Efficiency Ratio | 54.4 | % | 53.8 | % | 57.2 | % | 58.3 | % | 59.0 | % | 55.9 | % | 53.7 | % | ||||||||||||
| Adjusted Efficiency Ratio | 51.8 | % | 51.2 | % | 52.6 | % | 53.4 | % | 53.8 | % | 52.2 | % | 50.4 | % | ||||||||||||
| Refer to last page of Non-GAAP reconciliations for footnotes. | ||||||||||||||||||||||||||
14
| Non-GAAP Measures (unaudited) | ||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| ROAE and ROATCE: | ||||||||||||||||||||||||||
| Net income applicable to common shares | $ | 149,839 | $ | 139,768 | $ | 117,196 | $ | 116,250 | $ | 128,446 | $ | 523,053 | $ | 565,857 | ||||||||||||
| Amortization of intangibles | 7,237 | 7,411 | 7,425 | 5,455 | 5,869 | 27,528 | 24,155 | |||||||||||||||||||
Tax effect1 | (1,809) | (1,853) | (1,856) | (1,364) | (1,467) | (6,882) | (6,039) | |||||||||||||||||||
| Amortization of intangibles, net | 5,428 | 5,558 | 5,569 | 4,091 | 4,402 | 20,646 | 18,116 | |||||||||||||||||||
| Net income applicable to common shares, excluding intangibles amortization | 155,267 | 145,326 | 122,765 | 120,341 | 132,848 | 543,699 | 583,973 | |||||||||||||||||||
| Total adjustments, net (see pg.12) | 6,150 | 7,448 | 26,862 | 14,541 | 6,196 | 55,001 | 33,370 | |||||||||||||||||||
| Adjusted net income applicable to common shares, excluding intangibles amortization | $ | 161,417 | $ | 152,774 | $ | 149,627 | $ | 134,882 | $ | 139,044 | $ | 598,700 | $ | 617,343 | ||||||||||||
| Average shareholders' equity | $ | 6,338,953 | $ | 6,190,071 | $ | 5,978,976 | $ | 5,565,542 | $ | 5,281,487 | $ | 6,019,730 | $ | 5,254,313 | ||||||||||||
| Less: Average preferred equity | (243,719) | (243,719) | (243,719) | (243,719) | (243,719) | (243,719) | (243,719) | |||||||||||||||||||
| Average shareholders' common equity | $ | 6,095,234 | $ | 5,946,352 | $ | 5,735,257 | $ | 5,321,823 | $ | 5,037,768 | $ | 5,776,011 | $ | 5,010,594 | ||||||||||||
| Average goodwill and other intangible assets | (2,301,177) | (2,304,597) | (2,245,405) | (2,098,338) | (2,103,935) | (2,237,738) | (2,112,924) | |||||||||||||||||||
| Average tangible shareholder's common equity | $ | 3,794,057 | $ | 3,641,755 | $ | 3,489,852 | $ | 3,223,485 | $ | 2,933,833 | $ | 3,538,273 | $ | 2,897,670 | ||||||||||||
| ROAE | 9.8 | % | 9.4% | 8.2% | 8.7% | 10.2% | 9.1 | % | 11.3 | % | ||||||||||||||||
| ROAE, adjusted | 10.2 | % | 9.9% | 10.0% | 9.8% | 10.7% | 10.0 | % | 12.0 | % | ||||||||||||||||
| ROATCE | 16.4 | % | 16.0% | 14.1% | 14.9% | 18.1% | 15.4 | % | 20.2 | % | ||||||||||||||||
| ROATCE, adjusted | 17.0 | % | 16.8% | 17.2% | 16.7% | 19.0% | 16.9 | % | 21.3 | % | ||||||||||||||||
| Refer to last page of Non-GAAP reconciliations for footnotes. | ||||||||||||||||||||||||||
15
| Non-GAAP Measures (unaudited) | |||||||||||||||||
| ($ in thousands) | |||||||||||||||||
| As of | |||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||
| Tangible Common Equity: | |||||||||||||||||
| Shareholders' equity | $ | 6,340,350 | $ | 6,367,298 | $ | 6,075,072 | $ | 5,595,408 | $ | 5,562,900 | |||||||
| Less: Preferred equity | (243,719) | (243,719) | (243,719) | (243,719) | (243,719) | ||||||||||||
| Shareholders' common equity | $ | 6,096,631 | $ | 6,123,579 | $ | 5,831,353 | $ | 5,351,689 | $ | 5,319,181 | |||||||
| Less: Goodwill and other intangible assets | (2,296,098) | (2,305,084) | (2,306,204) | (2,095,511) | (2,100,966) | ||||||||||||
| Tangible shareholders' common equity | $ | 3,800,533 | $ | 3,818,495 | $ | 3,525,149 | $ | 3,256,178 | $ | 3,218,215 | |||||||
| Total assets | $ | 53,552,272 | $ | 53,602,293 | $ | 53,119,645 | $ | 49,534,918 | $ | 49,089,836 | |||||||
| Less: Goodwill and other intangible assets | (2,296,098) | (2,305,084) | (2,306,204) | (2,095,511) | (2,100,966) | ||||||||||||
| Tangible assets | $ | 51,256,174 | $ | 51,297,209 | $ | 50,813,441 | $ | 47,439,407 | $ | 46,988,870 | |||||||
Risk-weighted assets3 | $ | 40,314,805 | $ | 40,584,608 | $ | 40,627,117 | $ | 37,845,139 | $ | 37,407,347 | |||||||
| Tangible common equity to tangible assets | 7.41 | % | 7.44 | % | 6.94 | % | 6.86 | % | 6.85 | % | |||||||
Tangible common equity to risk-weighted assets3 | 9.43 | % | 9.41 | % | 8.68 | % | 8.60 | % | 8.60 | % | |||||||
| Tangible Common Book Value: | |||||||||||||||||
| Common shares outstanding | 318,980 | 318,955 | 318,969 | 293,330 | 292,655 | ||||||||||||
| Tangible common book value | $ | 11.91 | $ | 11.97 | $ | 11.05 | $ | 11.10 | $ | 11.00 | |||||||
1 Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state). | |||||||||||||||||
2 Calculated using the federal statutory tax rate in effect of 21% for all periods. | |||||||||||||||||
3 December 31, 2024 figures are preliminary. | |||||||||||||||||
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