EVANSVILLE, Ind., July 26, 2022 (GLOBE NEWSWIRE) —
| Old National Bancorp (NASDAQ: ONB) reports 2Q22 net income applicable to common shares of $111.0 million, diluted EPS of $0.38. Adjusted net income applicable to common shares1 of $134.6 million, or $0.46 per diluted common share. |
CEO COMMENTARY:
| “As evidenced by a 17% increase in annualized loan growth and strong net interest margin expansion, this was a very robust earnings quarter for Old National,” said CEO Jim Ryan. “We are especially pleased with the growth opportunities that are taking shape in our Chicagoland market as we begin to realize the full potential of our recently completed merger." |
SECOND QUARTER HIGHLIGHTS2:
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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 Certain comparisons to prior period are not meaningful due to the full quarter impact of the merger with First Midwest Bancorp, Inc. ("First Midwest") 3 Includes loans held for sale 4 Includes consumer and residential real estate loans
RESULTS OF OPERATIONS
Old National Bancorp ("Old National") reported second quarter 2022 net income applicable to common shares of $111.0 million, or $0.38 per diluted share.
Included in the second quarter were pre-tax charges of $36.6 million related to the February 15, 2022 merger with First Midwest. Excluding these charges and debt securities gains from the current quarter, adjusted net income was $134.6 million, or $0.46 per diluted share.
LOANS
Robust broad-based commercial and consumer loan growth.
- Period-end total loans3 were $29.6 billion at June 30, 2022, up 17.0% annualized from $28.4 billion at March 31, 2022, driven by strong commercial and consumer loan production.
- PPP loans decreased $123.8 million to $81.6 million at June 30, 2022, compared to $205.3 million at March 31, 2022.
- Excluding PPP loans, total loans increased 19.1%, annualized, and total commercial loans increased 17.9%, annualized.
- Total commercial loan production in the second quarter was $2.2 billion; period-end commercial pipeline totaled $5.9 billion.
- Consumer loans grew $86.0 million, or 12.9% annualized, to $2.8 billion and residential mortgage loans grew $372.9 million, or 26.1% annualized, to $6.1 billion, driven by strong production which was partially offset by acquired transactional portfolio run-off.
- Average total loans in the second quarter were $28.9 billion, an increase of $8.1 billion from the first quarter of 2022, driven by the full quarter impact of the merger with First Midwest, as well as organic loan growth.
DEPOSITS
Strong deposit franchise with stable balances.
- Period-end total deposits were $35.5 billion at June 30, 2022, consistent with $35.6 billion at March 31, 2022.
- The gradual deployment of commercial and retail deposits was partially offset by the seasonal increase in municipal deposits.
- On average, total deposits in the second quarter increased to $35.8 billion, compared to $26.9 billion for the first quarter of 2022, due primarily to the full quarter impact of the merger.
NET INTEREST INCOME AND MARGIN
Strong loan growth, the higher rate environment and the full quarter impact of the merger favorably impact net interest income and margin.
- Net interest income on a fully taxable equivalent basis increased to $341.8 million in the second quarter of 2022 compared to $226.6 million in the first quarter of 2022, driven by the full quarter impact of the merger, loan growth, higher interest rates, higher accretion income, and an additional day in the quarter.
- Net interest margin on a fully taxable equivalent basis increased 45 bps to 3.33% compared to 2.88% in the first quarter of 2022.
- PPP interest and net fees combined were $1.7 million, or less than 1 bp of net interest margin, in the second quarter of 2022 compared to $3.7 million, or 3 bps of net interest margin, in the first quarter of 2022.
- Accretion income on loans and borrowings was $35.0 million, or 34 bps of net interest margin, in the second quarter of 2022 compared to $15.9 million, or 20 bps of net interest margin, in the first quarter of 2022.
- Interest collected on nonaccrual loans was $3.2 million, or 3 bps of net interest margin, in the second quarter of 2022 compared to $1.1 million, or 1 bp of net interest margin, in the first quarter of 2022.
- Cost of total deposits continue to be low at 0.06%, increasing 1 bp in the second quarter of 2022 and the cost of total interest-bearing deposits increased just 2 bps to 0.09%.
CREDIT QUALITY
Strong credit quality continues to be a hallmark of the Old National franchise.
- Provision expense in the second quarter of 2022 was $9.2 million, compared to $97.6 million in the first quarter of 2022, which included $96.3 million of Current Expected Credit Losses ("CECL") Day 1 non-purchased credit deteriorated ("non-PCD") provision expense related to the allowance for credit losses established on acquired non-PCD loans as a result of the merger with First Midwest.
- Net charge-offs in the second quarter were $1.8 million, or 2 bps of average loans, compared to net charge-offs of $2.8 million in the first quarter of 2022, or 5 bps of average loans.
- 30+ day delinquencies were 0.17% at the end of the second quarter, down from 0.34% at the end of the first quarter.
- Non-performing loans improved as a percentage of total loans to 0.78% from 0.88% at the end of the first quarter due to the merger.
- Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of June 30, 2022, the remaining discount on these acquired loans was $131 million.
- The allowance for credit losses stood at $288.0 million, or 0.97% of total loans at June 30, 2022, compared to 0.99% at March 31, 2022.
NONINTEREST INCOME
Increase driven by the full quarter impact of the merger.
- Total noninterest income for the second quarter of 2022 was $89.1 million, an increase of $23.9 million from the first quarter of 2022, driven by the full quarter impact of the merger.
- Mortgage banking revenue was impacted by the higher rate environment, lower gain on sale margins and a higher mix of portfolio production.
- Other income higher primarily due to equity investment returns and recoveries on previously charged-off acquired loans.
NONINTEREST EXPENSE
Increase due primarily to full quarter impact of operating costs associated with the merger; efficiency ratio improved.
- Noninterest expense for the second quarter of 2022 was $277.4 million and included $36.6 million of merger-related charges, as well as $1.5 million of tax credit amortization.
- Excluding these items, adjusted noninterest expense for the second quarter was $239.3 million, compared to $172.9 million in the first quarter of 2022, up due primarily to the full quarter impact of the merger, as well as higher incentive accruals reflective of strong performance.
- The second quarter efficiency ratio was 62.7%, while the adjusted efficiency ratio was 53.9% compared to 57.7% for the first quarter of 2022.
INCOME TAXES
- On a fully taxable equivalent basis, income tax expense in the second quarter was $29.3 million, resulting in a 20.3% FTE tax rate, compared to 15.2% in the first quarter of 2022, reflective of higher pre-tax net income.
- Income tax expense included $1.5 million of tax credit benefit.
CAPITAL AND LIQUIDITY
Capital ratios remain strong.
- Preliminary total risk-based capital was 12.03% and preliminary regulatory Tier 1 capital was 10.63%, impacted by strong loan growth, partly offset by retained earnings.
- Tangible common equity to tangible assets was 6.20% at the end of the second quarter compared to 6.51% in the first quarter of 2022, driven by the higher rate environment’s impact on unrealized losses within the investment portfolio.
- The Company did not repurchase any shares of common stock during the quarter.
- A low loan to deposit ratio of 83.2%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.
HEALTH SAVINGS ACCOUNTS SALE
As previously disclosed on June 27, 2022, Old National Bank, a wholly-owned subsidiary of Old National Bancorp, entered into a Custodial Transfer and Asset Purchase Agreement with UMB Bank, n.a. (“UMB”), pursuant to which UMB will acquire Old National Bank’s business of acting as a qualified custodian for, and administering, health savings accounts. Old National Bank serves as custodian for health savings accounts comprised of both investment accounts and deposit accounts. Upon completion of the sale, UMB will pay Old National a premium on deposit account balances transferred at closing, or approximately $95 million based on June 30, 2022 balances. Subject to customary closing conditions and regulatory approval, the parties anticipate completing the sale in the fourth quarter of 2022.
NON-GAAP RECONCILIATIONS
See the "Use of Non-GAAP Financial Measures" section presented later in this release for a discussion of these non-GAAP financial measures.
| ($ in millions, except EPS, shares in 000s) | 2Q22 | Adjustments4 | Adjusted 2Q22 | ||||||
| Total Revenues (FTE) | $ | 430.9 | $ | 0.1 | $ | 431.0 | |||
| Less: Provision for Credit Losses | 9.2 | — | 9.2 | ||||||
| Less: Noninterest Expenses | (277.4 | ) | 36.6 | (240.8 | ) | ||||
| Income before Income Taxes (FTE) | $ | 144.3 | $ | 36.7 | $ | 181.0 | |||
| Income Taxes (FTE) | (29.3 | ) | (13.1 | ) | (42.4 | ) | |||
| Net Income (loss) | $ | 115.0 | $ | 23.6 | $ | 138.6 | |||
| Preferred Dividends | (4.0 | ) | — | (4.0 | ) | ||||
| Net Income (loss) applicable to common shares | $ | 111.0 | $ | 23.6 | $ | 134.6 | |||
| Weighted Average Diluted Shares Outstanding | 291,881 | — | 291,881 | ||||||
| Earnings Per Common Share – Diluted | $ | 0.38 | $ | 0.08 | $ | 0.46 | |||
4 Tax-effect calculations use management’s estimate of the full year FTE tax rates (federal + state)
| ($ in millions) | 2Q22 | 1Q22 | ||||
| Net Interest Income | $ | 337.5 | $ | 222.8 | ||
| Add: FTE Adjustment | 4.3 | 3.8 | ||||
| Net Interest Income (FTE) | $ | 341.8 | $ | 226.6 | ||
| Average Earning Assets | $ | 41,003.3 | $ | 31,483.6 | ||
| Net Interest Margin (FTE) | 3.33 | % | 2.88 | % | ||
| ($ in millions) | 2Q22 | 1Q22 | |||
| Net Interest Income | $ | 337.5 | $ | 222.8 | |
| Add: FTE Adjustment | 4.3 | 3.8 | |||
| Net Interest Income (FTE) | $ | 341.8 | $ | 226.6 | |
| Add: Total Noninterest Income | 89.1 | 65.2 | |||
| Less: Noninterest Expense | 277.4 | 226.7 | |||
| Pre-Provision Net Revenue | $ | 153.5 | $ | 65.1 | |
| Less: Debt Securities (Gains)/Losses | 0.1 | (0.3 | ) | ||
| Add: Merger-Related Charges | 36.6 | 52.3 | |||
| Add: Amortization of Tax Credit Investments | 1.5 | 1.5 | |||
| Adjusted Pre-Provision Net Revenue | $ | 191.7 | $ | 118.6 | |
| ($ in millions, end of period balances) | 2Q22 | 1Q22 | ||||
| Commercial Loans | $ | 20,721.0 | $ | 19,962.0 | ||
| Less: PPP Loans | (81.6 | ) | (205.3 | ) | ||
| Commercial Loans, excluding PPP Loans | $ | 20,639.4 | $ | 19,756.7 | ||
| Consumer and Residential Real Estate Loans | 8,833.0 | 8,374.3 | ||||
| Total Loans, excluding PPP Loans | $ | 29,472.4 | $ | 28,131.0 | ||
| ($ in millions) | 2Q22 | 1Q22 | ||||
| Noninterest Expense | $ | 277.4 | $ | 226.7 | ||
| Less: Merger-Related Charges | (36.6 | ) | (52.3 | ) | ||
| Noninterest Expense less Charges | $ | 240.8 | $ | 174.4 | ||
| Less: Amortization of Tax Credit Investments | (1.5 | ) | (1.5 | ) | ||
| Adjusted Noninterest Expense | $ | 239.3 | $ | 172.9 | ||
| Less: Intangible Amortization | (7.2 | ) | (4.8 | ) | ||
| Adjusted Noninterest Expense Less Intangible Amortization | $ | 232.1 | $ | 168.1 | ||
| Net Interest Income | $ | 337.5 | $ | 222.8 | ||
| FTE Adjustment | 4.3 | 3.8 | ||||
| Net Interest Income (FTE) | $ | 341.8 | $ | 226.6 | ||
| Total Noninterest Income | 89.1 | 65.2 | ||||
| Total Revenue (FTE) | $ | 430.9 | $ | 291.8 | ||
| Less: Debt Securities (Gains)/Losses | 0.1 | (0.3 | ) | |||
| Adjusted Total Revenue (FTE) | $ | 431.0 | $ | 291.5 | ||
| Efficiency Ratio | 62.7 | % | 76.2 | % | ||
| Adjusted Efficiency Ratio | 53.9 | % | 57.7 | % | ||
| ($ in millions) | 2Q22 | 1Q22 | ||||
| Net (Loss) Income Applicable to Common Shares | $ | 111.0 | $ | (29.6 | ) | |
| Add: Intangible Amortization (net of tax4) | 5.4 | 3.9 | ||||
| Tangible Net (Loss) Income Applicable to Common Shares | $ | 116.3 | $ | (25.7 | ) | |
| Less: Securities (Gains)/Losses (net of tax4) | 0.1 | (0.2 | ) | |||
| Add: Provision for credit losses – CECL Day 1 non-PCD provision expense5 (net of tax4) | — | 78.6 | ||||
| Add: Merger-Related Charges (net of tax4) | 23.5 | 42.8 | ||||
| Adjusted Tangible Net Income Applicable to Common Shares | $ | 139.9 | $ | 95.5 | ||
| Average Shareholders’ Common Equity | 4,886.2 | 4,101.2 | ||||
| Less: Average Goodwill | (1,992.9 | ) | (1,476.7 | ) | ||
| Less: Average Intangibles | (144.1 | ) | (73.9 | ) | ||
| Average Tangible Shareholders’ Common Equity | $ | 2,749.2 | $ | 2,550.6 | ||
| Return on Average Common Equity | 9.1 | % | (2.9) % | |||
| Adjusted Return on Average Common Equity | 11.0 | % | 8.9 | % | ||
| Return on Average Tangible Common Equity | 16.9 | % | (4.0) % | |||
| Adjusted Return on Average Tangible Common Equity | 20.4 | % | 15.0 | % | ||
5 Provision for Credit Losses adjustment refers to the initial increase in allowance for credit losses required
on acquired non-PCD loans through the provision for credit losses as a result of the completed merger
CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, July 26, 2022, to review second quarter 2022 financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (844) 200-6205 or International (929) 526-1599, Access code 498391. A replay of the call will also be available from noon Central Time on July 26 through August 9. To access the replay, dial U.S. (866) 813-9403 or international +44 (204) 525-0658, Access code 946843.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the sixth largest commercial bank headquartered in the Midwest. With approximately $46 billion of assets and $28 billion of assets under management, Old National ranks among the top 35 banking companies based in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for eleven consecutive years. Since its founding in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients and in the communities it serves. 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 at oldnational.com.
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 of this release.
The Company presents EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity, all adjusted for certain notable items. These items include the CECL Day 1 non-PCD provision expense, merger related charges associated with completed acquisitions, and net securities gains. 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 and the CECL Day 1 non-PCD provision expense 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.
The Company presents loans excluding PPP loans. Management believes that excluding PPP loans is useful as it facilitates better comparability between periods. PPP loans are fully guaranteed by the Small Business Administration and are expected to be forgiven if the applicable criteria are met. Additionally, management believes excluding PPP loans from this item may enhance comparability for peer comparison.
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 pre-provision net revenues, adjusted 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, ONB Way charges and amortization of tax credit investments. Management believes that excluding these items from noninterest expense 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 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 previously provided tables and 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. 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 the words "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "should," 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. Factors that might cause such a difference include, but are not limited to: the continued impact of the COVID-19 pandemic on our business as well as the business of our customers; competition; government legislation, regulations and policies; ability of Old National to execute its business plan, including the completion of the integration related to the merger between Old National and First Midwest and the achievement of the synergies and other benefits from the merger; changes in economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations; 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; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2021 and other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results or performance, 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: Kathy Schoettlin | Investors: Lynell Walton | |
| (812) 465-7269 | (812) 464-1366 | |
| Kathy.Schoettlin@oldnational.com | Lynell.Walton@oldnational.com |
| Financial Highlights (unaudited) | ||||||||||||||||
| ($ and shares in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Income Statement | ||||||||||||||||
| Net interest income | $ | 337,472 | $ | 222,785 | $ | 149,927 | $ | 560,257 | $ | 298,047 | ||||||
| Tax equivalent adjustment (1) | 4,314 | 3,772 | 3,470 | 8,086 | 6,970 | |||||||||||
| Net interest income – tax equivalent basis | 341,786 | 226,557 | 153,397 | 568,343 | 305,017 | |||||||||||
| Provision for credit losses | 9,245 | 97,569 | (4,929 | ) | 106,814 | (22,285 | ) | |||||||||
| Noninterest income | 89,117 | 65,240 | 51,508 | 154,357 | 108,220 | |||||||||||
| Noninterest expense | 277,395 | 226,756 | 129,618 | 504,151 | 247,358 | |||||||||||
| Net income (loss) available to common shareholders | 110,952 | (29,603 | ) | 62,786 | 81,349 | 149,604 | ||||||||||
| Per Common Share Data | ||||||||||||||||
| Weighted average diluted shares | 291,881 | 227,002 | 165,934 | 260,253 | 165,821 | |||||||||||
| Net income (loss) (diluted) | $ | 0.38 | $ | (0.13 | ) | $ | 0.38 | $ | 0.31 | $ | 0.90 | |||||
| Cash dividends | 0.14 | 0.14 | 0.14 | 0.28 | 0.28 | |||||||||||
| Common dividend payout ratio (2) | 37 | % | (108) % | 37 | % | 90 | % | 31 | % | |||||||
| Book value | $ | 16.51 | $ | 17.03 | $ | 18.05 | $ | 16.51 | $ | 18.05 | ||||||
| Stock price | 14.79 | 16.38 | 17.61 | 14.79 | 17.61 | |||||||||||
| Tangible common book value (3) | 9.23 | 9.71 | 11.55 | 9.23 | 11.55 | |||||||||||
| Performance Ratios | ||||||||||||||||
| Return on average assets | 1.0 | % | (0.3) % | 1.1 | % | 0.4 | % | 1.3 | % | |||||||
| Return on average common equity | 9.1 | % | (2.9) % | 8.4 | % | 3.6 | % | 10.0 | % | |||||||
| Return on average tangible common equity (3) | 16.9 | % | (4.0) % | 13.6 | % | 6.8 | % | 16.2 | % | |||||||
| Net interest margin (FTE) | 3.33 | % | 2.88 | % | 2.91 | % | 3.13 | % | 2.93 | % | ||||||
| Efficiency ratio (4) | 62.7 | % | 76.2 | % | 62.1 | % | 68.1 | % | 58.8 | % | ||||||
| Net charge-offs (recoveries) to average loans | 0.02 | % | 0.05 | % | (0.01) % | 0.04 | % | 0.00 | % | |||||||
| Allowance for credit losses to ending loans | 0.97 | % | 0.99 | % | 0.79 | % | 0.97 | % | 0.79 | % | ||||||
| Non-performing loans to ending loans | 0.78 | % | 0.88 | % | 1.03 | % | 0.78 | % | 1.03 | % | ||||||
| Balance Sheet (EOP) | ||||||||||||||||
| Total loans | $ | 29,553,648 | $ | 28,336,244 | $ | 13,784,677 | $ | 29,553,648 | $ | 13,784,677 | ||||||
| Total assets | 45,748,355 | 45,834,648 | 23,675,666 | 45,748,355 | 23,675,666 | |||||||||||
| Total deposits | 35,538,975 | 35,607,390 | 17,868,911 | 35,538,975 | 17,868,911 | |||||||||||
| Total borrowed funds | 4,384,411 | 4,347,560 | 2,559,113 | 4,384,411 | 2,559,113 | |||||||||||
| Total shareholders’ equity | 5,078,783 | 5,232,114 | 2,991,118 | 5,078,783 | 2,991,118 | |||||||||||
| Capital Ratios (3) | ||||||||||||||||
| Risk-based capital ratios (EOP): | ||||||||||||||||
| Tier 1 common equity | 9.90 | % | 10.04 | % | 11.95 | % | 9.90 | % | 11.95 | % | ||||||
| Tier 1 | 10.63 | % | 10.79 | % | 11.95 | % | 10.63 | % | 11.95 | % | ||||||
| Total | 12.03 | % | 12.19 | % | 12.73 | % | 12.03 | % | 12.73 | % | ||||||
| Leverage ratio (to average assets) | 8.19 | % | 10.58 | % | 8.38 | % | 8.19 | % | 8.38 | % | ||||||
| Total equity to assets (averages) | 11.22 | % | 12.03 | % | 12.61 | % | 11.57 | % | 12.69 | % | ||||||
| Tangible common equity to tangible assets | 6.20 | % | 6.51 | % | 8.47 | % | 6.20 | % | 8.47 | % | ||||||
| Nonfinancial Data | ||||||||||||||||
| Full-time equivalent employees | 4,196 | 4,333 | 2,465 | 4,196 | 2,465 | |||||||||||
| Banking centers | 266 | 267 | 162 | 266 | 162 | |||||||||||
| (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 the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. | ||||||||||||||||
| June 30, 2022 capital ratios are preliminary. | ||||||||||||||||
| (4) 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 PCD – Purchased credit deteriorated | ||||||||||||||||
| Income Statement (unaudited) | ||||||||||||||||
| ($ and shares in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Interest income | $ | 354,358 | $ | 235,505 | $ | 160,458 | $ | 589,863 | $ | 319,695 | ||||||
| Less: interest expense | 16,886 | 12,720 | 10,531 | 29,606 | 21,648 | |||||||||||
| Net interest income | 337,472 | 222,785 | 149,927 | 560,257 | 298,047 | |||||||||||
| Provision for credit losses | 9,245 | 97,569 | (4,929 | ) | 106,814 | (22,285 | ) | |||||||||
| Net interest income after provision for credit losses | 328,227 | 125,216 | 154,856 | 453,443 | 320,332 | |||||||||||
| Wealth management fees | 19,304 | 14,630 | 10,734 | 33,934 | 20,442 | |||||||||||
| Service charges on deposit accounts | 21,144 | 14,726 | 8,514 | 35,870 | 16,638 | |||||||||||
| Debit card and ATM fees | 10,402 | 6,899 | 5,583 | 17,301 | 10,726 | |||||||||||
| Mortgage banking revenue | 6,522 | 7,245 | 7,827 | 13,767 | 24,352 | |||||||||||
| Investment product fees | 8,568 | 7,322 | 6,042 | 15,890 | 11,906 | |||||||||||
| Capital markets income | 7,261 | 4,442 | 5,871 | 11,703 | 9,586 | |||||||||||
| Company-owned life insurance | 4,571 | 3,524 | 2,783 | 8,095 | 5,497 | |||||||||||
| Other income | 11,430 | 6,110 | 3,462 | 17,540 | 6,388 | |||||||||||
| Gains (losses) on sales of debt securities | (85 | ) | 342 | 692 | 257 | 2,685 | ||||||||||
| Total noninterest income | 89,117 | 65,240 | 51,508 | 154,357 | 108,220 | |||||||||||
| Salaries and employee benefits | 161,817 | 124,147 | 72,640 | 285,964 | 140,757 | |||||||||||
| Occupancy | 26,496 | 21,019 | 14,054 | 47,515 | 28,926 | |||||||||||
| Equipment | 7,550 | 5,168 | 4,506 | 12,718 | 8,475 | |||||||||||
| Marketing | 9,119 | 4,276 | 2,632 | 13,395 | 4,694 | |||||||||||
| Data processing | 25,883 | 18,762 | 11,697 | 44,645 | 24,050 | |||||||||||
| Communication | 5,878 | 3,417 | 2,411 | 9,295 | 5,289 | |||||||||||
| Professional fees | 6,336 | 19,791 | 8,528 | 26,127 | 11,252 | |||||||||||
| FDIC assessment | 4,699 | 2,575 | 1,226 | 7,274 | 2,833 | |||||||||||
| Amortization of intangibles | 7,170 | 4,811 | 2,909 | 11,981 | 5,984 | |||||||||||
| Amortization of tax credit investments | 1,525 | 1,516 | 1,813 | 3,041 | 3,015 | |||||||||||
| Other expense | 20,922 | 21,274 | 7,202 | 42,196 | 12,083 | |||||||||||
| Total noninterest expense | 277,395 | 226,756 | 129,618 | 504,151 | 247,358 | |||||||||||
| Income (loss) before income taxes | 139,949 | (36,300 | ) | 76,746 | 103,649 | 181,194 | ||||||||||
| Income tax expense (benefit) | 24,964 | (8,714 | ) | 13,960 | 16,250 | 31,590 | ||||||||||
| Net income (loss) | $ | 114,985 | $ | (27,586 | ) | $ | 62,786 | $ | 87,399 | $ | 149,604 | |||||
| Preferred dividends | (4,033 | ) | (2,017 | ) | — | (6,050 | ) | — | ||||||||
| Net income (loss) applicable to common shares | $ | 110,952 | $ | (29,603 | ) | $ | 62,786 | $ | 81,349 | $ | 149,604 | |||||
| Diluted Earnings Per Common Share | ||||||||||||||||
| Net income (loss) | $ | 0.38 | $ | (0.13 | ) | $ | 0.38 | $ | 0.31 | $ | 0.90 | |||||
| Average Common Shares Outstanding | ||||||||||||||||
| Basic | 290,862 | 227,002 | 165,175 | 259,108 | 165,086 | |||||||||||
| Diluted | 291,881 | 227,002 | 165,934 | 260,253 | 165,821 | |||||||||||
| Common shares outstanding at end of period | 292,893 | 292,959 | 165,732 | 292,893 | 165,732 | |||||||||||
| End of Period Balance Sheet (unaudited) | |||||||||||
| ($ in thousands) | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| 2022 | 2022 | 2021 | |||||||||
| Assets | |||||||||||
| Federal Reserve Bank account | $ | 334,570 | $ | 1,545,389 | $ | 287,446 | |||||
| Money market investments | 7,774 | 12,419 | 15,294 | ||||||||
| Investments: | |||||||||||
| Treasury and government-sponsored agencies | 2,461,173 | 2,527,568 | 1,657,079 | ||||||||
| Mortgage-backed securities | 5,976,921 | 6,086,853 | 3,280,983 | ||||||||
| States and political subdivisions | 1,839,333 | 1,840,823 | 1,567,931 | ||||||||
| Other securities | 719,223 | 735,550 | 441,037 | ||||||||
| Total investments | 10,996,650 | 11,190,794 | 6,947,030 | ||||||||
| Loans held for sale, at fair value | 26,217 | 39,376 | 50,121 | ||||||||
| Loans: | |||||||||||
| Commercial | 8,923,983 | 8,624,253 | 3,802,943 | ||||||||
| Commercial and agriculture real estate | 11,796,503 | 11,337,735 | 6,187,318 | ||||||||
| Consumer: | |||||||||||
| Home equity | 1,097,852 | 1,080,885 | 549,951 | ||||||||
| Other consumer loans | 1,656,253 | 1,587,216 | 1,029,409 | ||||||||
| Subtotal of commercial and consumer loans | 23,474,591 | 22,630,089 | 11,569,621 | ||||||||
| Residential real estate | 6,079,057 | 5,706,155 | 2,215,056 | ||||||||
| Total loans | 29,553,648 | 28,336,244 | 13,784,677 | ||||||||
| Total earning assets | 40,918,859 | 41,124,222 | 21,084,568 | ||||||||
| Allowance for credit losses on loans | (288,003 | ) | (280,507 | ) | (109,444 | ) | |||||
| Non-earning Assets: | |||||||||||
| Cash and due from banks | 455,620 | 418,744 | 188,391 | ||||||||
| Premises and equipment, net | 586,031 | 584,113 | 484,879 | ||||||||
| Operating lease right-of-use assets | 192,196 | 201,802 | 72,207 | ||||||||
| Goodwill and other intangible assets | 2,131,815 | 2,144,609 | 1,077,024 | ||||||||
| Company-owned life insurance | 769,595 | 766,291 | 459,565 | ||||||||
| Other assets | 982,242 | 875,374 | 418,476 | ||||||||
| Total non-earning assets | 5,117,499 | 4,990,933 | 2,700,542 | ||||||||
| Total assets | $ | 45,748,355 | $ | 45,834,648 | $ | 23,675,666 | |||||
| Liabilities and Equity | |||||||||||
| Noninterest-bearing demand deposits | $ | 12,388,379 | $ | 12,463,136 | $ | 6,142,724 | |||||
| Interest-bearing: | |||||||||||
| Checking and NOW accounts | 8,473,510 | 8,296,337 | 4,921,430 | ||||||||
| Savings accounts | 6,796,152 | 6,871,767 | 3,675,701 | ||||||||
| Money market accounts | 5,373,318 | 5,432,139 | 2,126,537 | ||||||||
| Other time deposits | 2,479,304 | 2,544,011 | 1,002,519 | ||||||||
| Total core deposits | 35,510,663 | 35,607,390 | 17,868,911 | ||||||||
| Brokered deposits | 28,312 | — | — | ||||||||
| Total deposits | 35,538,975 | 35,607,390 | 17,868,911 | ||||||||
| Federal funds purchased and interbank borrowings | 1,561 | 1,721 | 1,523 | ||||||||
| Securities sold under agreements to repurchase | 476,173 | 509,275 | 396,129 | ||||||||
| Federal Home Loan Bank advances | 3,283,963 | 3,239,357 | 1,891,143 | ||||||||
| Other borrowings | 622,714 | 597,207 | 270,318 | ||||||||
| Total borrowed funds | 4,384,411 | 4,347,560 | 2,559,113 | ||||||||
| Operating lease liabilities | 215,188 | 234,049 | 81,333 | ||||||||
| Accrued expenses and other liabilities | 530,998 | 413,535 | 175,191 | ||||||||
| Total liabilities | 40,669,572 | 40,602,534 | 20,684,548 | ||||||||
| Preferred stock, common stock, surplus, and retained earnings | 5,647,916 | 5,570,313 | 2,928,856 | ||||||||
| Accumulated other comprehensive income (loss), net of tax | (569,133 | ) | (338,199 | ) | 62,262 | ||||||
| Total shareholders’ equity | 5,078,783 | 5,232,114 | 2,991,118 | ||||||||
| Total liabilities and shareholders’ equity | $ | 45,748,355 | $ | 45,834,648 | $ | 23,675,666 | |||||
| Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2021 | ||||||||||||||||||||||
| 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 | $ | 1,088,005 | $ | 1,830 | 0.67 | % | $ | 1,336,404 | $ | 308 | 0.09 | % | $ | 232,723 | $ | 48 | 0.08 | % | ||||||
| Investments: | ||||||||||||||||||||||||
| Treasury and government-sponsored agencies | 2,487,717 | 11,818 | 1.90 | % | 2,195,470 | 8,219 | 1.50 | % | 1,637,396 | 5,967 | 1.46 | % | ||||||||||||
| Mortgage-backed securities | 6,008,470 | 33,534 | 2.23 | % | 4,869,038 | 24,377 | 2.00 | % | 3,287,254 | 15,067 | 1.83 | % | ||||||||||||
| States and political subdivisions | 1,834,189 | 14,571 | 3.18 | % | 1,738,652 | 13,637 | 3.14 | % | 1,503,447 | 12,364 | 3.29 | % | ||||||||||||
| Other securities | 723,279 | 5,467 | 3.02 | % | 605,552 | 4,144 | 2.74 | % | 439,197 | 2,690 | 2.45 | % | ||||||||||||
| Total investments | 11,053,655 | 65,390 | 2.37 | % | 9,408,712 | 50,377 | 2.14 | % | 6,867,294 | 36,088 | 2.10 | % | ||||||||||||
| Loans: (2) | ||||||||||||||||||||||||
| Commercial | 8,692,646 | 95,743 | 4.36 | % | 5,893,907 | 55,283 | 3.75 | % | 4,019,553 | 34,715 | 3.42 | % | ||||||||||||
| Commercial and agriculture real estate | 11,547,958 | 113,545 | 3.89 | % | 8,749,162 | 77,408 | 3.54 | % | 6,146,057 | 57,655 | 3.71 | % | ||||||||||||
| Consumer: | ||||||||||||||||||||||||
| Home equity | 1,000,373 | 11,256 | 4.51 | % | 783,729 | 7,355 | 3.81 | % | 538,999 | 4,201 | 3.13 | % | ||||||||||||
| Other consumer loans | 1,715,550 | 19,222 | 4.49 | % | 1,320,923 | 14,560 | 4.47 | % | 1,034,439 | 9,747 | 3.78 | % | ||||||||||||
| Subtotal commercial and consumer loans | 22,956,527 | 239,766 | 4.19 | % | 16,747,721 | 154,606 | 3.74 | % | 11,739,048 | 106,318 | 3.63 | % | ||||||||||||
| Residential real estate loans | 5,905,151 | 51,686 | 3.50 | % | 3,990,716 | 33,986 | 3.41 | % | 2,256,215 | 21,474 | 3.81 | % | ||||||||||||
| Total loans | 28,861,678 | 291,452 | 4.01 | % | 20,738,437 | 188,592 | 3.64 | % | 13,995,263 | 127,792 | 3.62 | % | ||||||||||||
| Total earning assets | $ | 41,003,338 | $ | 358,672 | 3.48 | % | $ | 31,483,553 | $ | 239,277 | 3.04 | % | $ | 21,095,280 | $ | 163,928 | 3.09 | % | ||||||
| Less: Allowance for credit losses on loans | (282,943 | ) | (168,175 | ) | (117,020 | ) | ||||||||||||||||||
| Non-earning Assets: | ||||||||||||||||||||||||
| Cash and due from banks | $ | 277,283 | $ | 268,836 | $ | 238,326 | ||||||||||||||||||
| Other assets | 4,735,701 | 3,480,640 | 2,520,937 | |||||||||||||||||||||
| Total assets | $ | 45,733,379 | $ | 35,064,854 | $ | 23,737,523 | ||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||
| Checking and NOW accounts | $ | 8,445,683 | $ | 1,786 | 0.08 | % | $ | 6,784,653 | $ | 596 | 0.04 | % | $ | 4,948,773 | $ | 513 | 0.04 | % | ||||||
| Savings accounts | 6,835,675 | 673 | 0.04 | % | 5,302,015 | 589 | 0.05 | % | 3,647,952 | 492 | 0.05 | % | ||||||||||||
| Money market accounts | 5,317,300 | 1,027 | 0.08 | % | 3,778,682 | 691 | 0.07 | % | 2,081,286 | 433 | 0.08 | % | ||||||||||||
| Other time deposits | 2,491,998 | 1,627 | 0.26 | % | 1,745,153 | 1,318 | 0.31 | % | 1,024,777 | 1,293 | 0.51 | % | ||||||||||||
| Total interest-bearing core deposits | 23,090,656 | 5,113 | 0.09 | % | 17,610,503 | 3,194 | 0.07 | % | 11,702,788 | 2,731 | 0.09 | % | ||||||||||||
| Brokered deposits | 7,447 | 74 | 0.00 | % | — | — | 0.00 | % | 9,890 | 1 | 0.05 | % | ||||||||||||
| Total interest-bearing deposits | 23,098,103 | 5,187 | 0.09 | % | 17,610,503 | 3,194 | 0.07 | % | 11,712,678 | 2,732 | 0.09 | % | ||||||||||||
| Federal funds purchased and interbank borrowings | 1,222 | 2 | 0.47 | % | 1,113 | — | 0.01 | % | 1,460 | — | 0.02 | % | ||||||||||||
| Securities sold under agreements to repurchase | 466,885 | 85 | 0.07 | % | 449,939 | 96 | 0.09 | % | 406,251 | 95 | 0.09 | % | ||||||||||||
| Federal Home Loan Bank advances | 3,053,423 | 6,925 | 0.91 | % | 2,589,984 | 5,963 | 0.93 | % | 1,906,078 | 5,218 | 1.10 | % | ||||||||||||
| Other borrowings | 611,772 | 4,687 | 3.06 | % | 432,434 | 3,467 | 3.21 | % | 269,259 | 2,486 | 3.69 | % | ||||||||||||
| Total borrowed funds | 4,133,302 | 11,699 | 1.14 | % | 3,473,470 | 9,526 | 1.11 | % | 2,583,048 | 7,799 | 1.21 | % | ||||||||||||
| Total interest-bearing liabilities | $ | 27,231,405 | $ | 16,886 | 0.25 | % | $ | 21,083,973 | $ | 12,720 | 0.24 | % | $ | 14,295,726 | $ | 10,531 | 0.30 | % | ||||||
| Noninterest-Bearing Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
| Demand deposits | $ | 12,714,946 | $ | 9,294,876 | $ | 6,140,424 | ||||||||||||||||||
| Other liabilities | 657,128 | 467,589 | 308,680 | |||||||||||||||||||||
| Shareholders’ equity | 5,129,900 | 4,218,416 | 2,992,693 | |||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 45,733,379 | $ | 35,064,854 | $ | 23,737,523 | ||||||||||||||||||
| Net interest rate spread | 3.23 | % | 2.80 | % | 2.79 | % | ||||||||||||||||||
| Net interest margin (FTE) | 3.33 | % | 2.88 | % | 2.91 | % | ||||||||||||||||||
| FTE adjustment | $ | 4,314 | $ | 3,772 | $ | 3,470 | ||||||||||||||||||
| (1) Interest income is reflected on a FTE. | ||||||||||||||||||||||||
| (2) Includes loans held for sale. | ||||||||||||||||||||||||
| Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Six Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2022 | June 30, 2021 | |||||||||||||||
| Average | Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | |||||||||||
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
| Money market and other interest-earning | ||||||||||||||||
| investments | $ | 1,211,518 | $ | 2,138 | 0.36 | % | $ | 301,025 | $ | 136 | 0.09 | % | ||||
| Investments: | ||||||||||||||||
| Treasury and government-sponsored agencies | 2,342,401 | 20,038 | 1.71 | % | 1,397,791 | 10,852 | 1.55 | % | ||||||||
| Mortgage-backed securities | 5,441,902 | 57,910 | 2.13 | % | 3,299,713 | 30,900 | 1.87 | % | ||||||||
| States and political subdivisions | 1,786,684 | 28,208 | 3.16 | % | 1,490,865 | 24,564 | 3.30 | % | ||||||||
| Other securities | 664,741 | 9,611 | 2.89 | % | 446,266 | 5,433 | 2.44 | % | ||||||||
| Total investments | $ | 10,235,728 | $ | 115,767 | 2.26 | % | $ | 6,634,635 | $ | 71,749 | 2.16 | % | ||||
| Loans: (2) | ||||||||||||||||
| Commercial | 7,301,008 | 151,026 | 4.11 | % | 3,997,281 | 70,282 | 3.50 | % | ||||||||
| Commercial and agriculture real estate | 10,156,292 | 190,952 | 3.74 | % | 6,063,872 | 113,401 | 3.72 | % | ||||||||
| Consumer: | ||||||||||||||||
| Home equity | 892,649 | 18,611 | 4.20 | % | 541,510 | 8,353 | 3.11 | % | ||||||||
| Other consumer loans | 1,519,327 | 33,782 | 4.48 | % | 1,046,518 | 19,923 | 3.84 | % | ||||||||
| Subtotal commercial and consumer loans | 19,869,276 | 394,371 | 4.00 | % | 11,649,181 | 211,959 | 3.67 | % | ||||||||
| Residential real estate loans | 4,953,222 | 85,673 | 3.46 | % | 2,264,988 | 42,821 | 3.78 | % | ||||||||
| Total loans | 24,822,498 | 480,044 | 3.86 | % | 13,914,169 | 254,780 | 3.65 | % | ||||||||
| Total earning assets | $ | 36,269,744 | $ | 597,949 | 3.29 | % | $ | 20,849,829 | $ | 326,665 | 3.13 | % | ||||
| Less: Allowance for credit losses | (225,876 | ) | (125,398 | ) | ||||||||||||
| Non-earning Assets: | ||||||||||||||||
| Cash and due from banks | $ | 273,083 | $ | 263,336 | ||||||||||||
| Other assets | 4,111,637 | 2,503,865 | ||||||||||||||
| Total assets | $ | 40,428,588 | $ | 23,491,632 | ||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||
| Checking and NOW accounts | $ | 7,619,757 | $ | 2,381 | 0.06 | % | $ | 4,906,530 | $ | 1,124 | 0.05 | % | ||||
| Savings accounts | 6,073,081 | 1,262 | 0.04 | % | 3,572,057 | 979 | 0.06 | % | ||||||||
| Money market accounts | 4,552,241 | 1,719 | 0.08 | % | 2,034,577 | 855 | 0.08 | % | ||||||||
| Other time deposits | 2,120,638 | 2,945 | 0.28 | % | 1,052,856 | 2,902 | 0.56 | % | ||||||||
| Total interest-bearing core deposits | 20,365,717 | 8,307 | 0.08 | % | 11,566,020 | 5,860 | 0.10 | % | ||||||||
| Brokered deposits | 3,744 | 74 | 3.99 | % | 83,427 | 31 | 0.08 | % | ||||||||
| Total interest-bearing deposits | 20,369,461 | 8,381 | 0.08 | % | 11,649,447 | 5,891 | 0.10 | % | ||||||||
| Federal funds purchased and interbank borrowings | 1,168 | 2 | 0.25 | % | 1,303 | — | 0.00 | % | ||||||||
| Securities sold under agreements to repurchase | 458,459 | 181 | 0.08 | % | 402,478 | 215 | 0.11 | % | ||||||||
| Federal Home Loan Bank advances | 2,822,984 | 12,888 | 0.92 | % | 1,915,661 | 10,627 | 1.12 | % | ||||||||
| Other borrowings | 522,599 | 8,154 | 3.12 | % | 266,152 | 4,915 | 3.69 | % | ||||||||
| Total borrowed funds | 3,805,210 | 21,225 | 1.12 | % | 2,585,594 | 15,757 | 1.23 | % | ||||||||
| Total interest-bearing liabilities | 24,174,671 | 29,606 | 0.25 | % | 14,235,041 | 21,648 | 0.31 | % | ||||||||
| Noninterest-Bearing Liabilities and Shareholders’ Equity | ||||||||||||||||
| Demand deposits | $ | 11,014,359 | $ | 5,949,412 | ||||||||||||
| Other liabilities | 562,882 | 325,781 | ||||||||||||||
| Shareholders’ equity | 4,676,676 | 2,981,398 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 40,428,588 | $ | 23,491,632 | ||||||||||||
| Net interest rate spread | 3.04 | % | 2.82 | % | ||||||||||||
| Net interest margin (FTE) | 3.13 | % | 2.93 | % | ||||||||||||
| FTE adjustment | $ | 8,086 | $ | 6,970 | ||||||||||||
| (1) Interest income is reflected on a FTE. | ||||||||||||||||
| (2) Includes loans held for sale. | ||||||||||||||||
| Asset Quality (EOP) (unaudited) | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Allowance for credit losses on loans: | ||||||||||||||||
| Beginning allowance for credit losses | $ | 280,507 | $ | 107,341 | $ | 114,037 | $ | 107,341 | $ | 131,388 | ||||||
| Allowance established for acquired PCD loans | — | 78,531 | — | 78,531 | — | |||||||||||
| Provision for credit losses(1) | 9,254 | 97,409 | (4,929 | ) | 106,663 | (22,285 | ) | |||||||||
| Gross charge-offs | (4,096 | ) | (4,664 | ) | (980 | ) | (8,760 | ) | (2,550 | ) | ||||||
| Gross recoveries | 2,338 | 1,890 | 1,316 | 4,228 | 2,891 | |||||||||||
| Net (charge-offs) recoveries | (1,758 | ) | (2,774 | ) | 336 | (4,532 | ) | 341 | ||||||||
| Ending allowance for credit losses | $ | 288,003 | $ | 280,507 | $ | 109,444 | $ | 288,003 | $ | 109,444 | ||||||
| Net charge-offs (recoveries) / average loans(2) | 0.02 | % | 0.05 | % | (0.01) % | 0.04 | % | 0.00 | % | |||||||
| Average loans outstanding(2) | $ | 28,847,003 | $ | 20,725,313 | $ | 13,984,295 | $ | 24,808,593 | $ | 13,900,371 | ||||||
| EOP loans outstanding(2) | 29,553,648 | 28,336,244 | 13,784,677 | 29,553,648 | 13,784,677 | |||||||||||
| Allowance for credit losses / EOP loans(2) | 0.97 | % | 0.99 | % | 0.79 | % | 0.97 | % | 0.79 | % | ||||||
| Underperforming Assets: | ||||||||||||||||
| Loans 90 Days and over (still accruing) | $ | 882 | $ | 1,646 | $ | 9 | $ | 882 | $ | 9 | ||||||
| Non-performing loans: | ||||||||||||||||
| Nonaccrual loans(3) | 214,924 | 227,925 | 128,268 | 214,924 | 128,268 | |||||||||||
| TDRs still accruing | 15,665 | 20,999 | 14,222 | 15,665 | 14,222 | |||||||||||
| Total non-performing loans | 230,589 | 248,924 | 142,490 | 230,589 | 142,490 | |||||||||||
| Foreclosed assets | 12,618 | 19,713 | 520 | 12,618 | 520 | |||||||||||
| Total underperforming assets | $ | 244,089 | $ | 270,283 | $ | 143,019 | $ | 244,089 | $ | 143,019 | ||||||
| Classified and Criticized Assets: | ||||||||||||||||
| Nonaccrual loans(3) | 214,924 | 227,925 | 128,268 | 214,924 | 128,268 | |||||||||||
| Substandard accruing loans | 490,566 | 518,341 | 160,995 | 490,566 | 160,995 | |||||||||||
| Loans 90 days and over (still accruing) | 882 | 1,646 | 9 | 882 | 9 | |||||||||||
| Total classified loans – "problem loans" | $ | 706,372 | $ | 747,912 | $ | 289,272 | $ | 706,372 | $ | 289,272 | ||||||
| Other classified assets | 25,004 | 24,676 | 4,305 | 25,004 | 4,305 | |||||||||||
| Criticized loans – "special mention loans" | 452,835 | 507,689 | 228,264 | 452,835 | 228,264 | |||||||||||
| Total classified and criticized assets | $ | 1,184,211 | $ | 1,280,277 | $ | 521,841 | $ | 1,184,211 | $ | 521,841 | ||||||
| Non-performing loans / EOP loans(2) | 0.78 | % | 0.88 | % | 1.03 | % | 0.78 | % | 1.03 | % | ||||||
| Allowance to non-performing loans | 125 | % | 113 | % | 77 | % | 125 | % | 77 | % | ||||||
| Under-performing assets / EOP loans(2) | 0.83 | % | 0.95 | % | 1.04 | % | 0.83 | % | 1.04 | % | ||||||
| EOP total assets | $ | 45,748,355 | $ | 45,834,648 | $ | 23,675,666 | $ | 45,748,355 | $ | 23,675,666 | ||||||
| Under-performing assets / EOP assets | 0.53 | % | 0.59 | % | 0.60 | % | 0.53 | % | 0.60 | % | ||||||
| EOP – End of period actual balances | ||||||||||||||||
| (1) Excludes $0.2 million of expense to establish an allowance on held-to-maturity securities during the first quarter of 2022. | ||||||||||||||||
| (2) Excludes loans held for sale. | ||||||||||||||||
| (3) Includes non-accruing TDRs totaling $24.3 million at June 30, 2022, $23.8 million at March 31, 2022, and $13.6 million at June 30, 2021. | ||||||||||||||||
| TDR – Troubled debt restructuring | ||||||||||||||||
| Non-GAAP Measures (unaudited) | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Actual End of Period Balances | ||||||||||||||||
| GAAP shareholders’ common equity | $ | 4,835,064 | $ | 4,988,395 | $ | 2,991,118 | $ | 4,835,064 | $ | 2,991,118 | ||||||
| Deduct: | ||||||||||||||||
| Goodwill | 1,991,534 | 1,997,157 | 1,036,994 | 1,991,534 | 1,036,994 | |||||||||||
| Intangibles | 140,281 | 147,452 | 40,030 | 140,281 | 40,030 | |||||||||||
| 2,131,815 | 2,144,609 | 1,077,024 | 2,131,815 | 1,077,024 | ||||||||||||
| Tangible shareholders’ common equity | $ | 2,703,249 | $ | 2,843,786 | $ | 1,914,094 | $ | 2,703,249 | $ | 1,914,094 | ||||||
| Average Balances | ||||||||||||||||
| GAAP shareholders’ common equity | $ | 4,886,181 | $ | 4,101,206 | $ | 2,992,693 | $ | 4,495,862 | $ | 2,981,398 | ||||||
| Deduct: | ||||||||||||||||
| Goodwill | 1,992,860 | 1,476,726 | 1,036,994 | 1,736,227 | 1,036,994 | |||||||||||
| Intangibles | 144,104 | 73,898 | 41,410 | 109,195 | 42,901 | |||||||||||
| 2,136,964 | 1,550,624 | 1,078,404 | 1,845,422 | 1,079,895 | ||||||||||||
| Average tangible shareholders’ common equity | $ | 2,749,217 | $ | 2,550,582 | $ | 1,914,289 | $ | 2,650,440 | $ | 1,901,503 | ||||||
| Actual End of Period Balances | ||||||||||||||||
| GAAP assets | $ | 45,748,355 | $ | 45,834,648 | $ | 23,675,666 | $ | 45,748,355 | $ | 23,675,666 | ||||||
| Add: | ||||||||||||||||
| Trust overdrafts | — | 1 | 24 | — | 24 | |||||||||||
| Deduct: | ||||||||||||||||
| Goodwill | 1,991,534 | 1,997,157 | 1,036,994 | 1,991,534 | 1,036,994 | |||||||||||
| Intangibles | 140,281 | 147,452 | 40,030 | 140,281 | 40,030 | |||||||||||
| 2,131,815 | 2,144,609 | 1,077,024 | 2,131,815 | 1,077,024 | ||||||||||||
| Tangible assets | $ | 43,616,540 | $ | 43,690,040 | $ | 22,598,666 | $ | 43,616,540 | $ | 22,598,666 | ||||||
| Risk-weighted assets (2) | $ | 33,662,205 | $ | 32,341,335 | $ | 15,971,711 | $ | 33,662,205 | $ | 15,971,711 | ||||||
| GAAP net income (loss) applicable to common shares | $ | 110,952 | $ | (29,603 | ) | $ | 62,786 | $ | 81,349 | $ | 149,604 | |||||
| Add: | ||||||||||||||||
| Amortization of intangibles (net of tax) | 5,378 | 3,934 | 2,182 | 9,312 | 4,488 | |||||||||||
| shares | $ | 116,330 | $ | (25,669 | ) | $ | 64,968 | $ | 90,661 | $ | 154,092 | |||||
| Tangible Ratios | ||||||||||||||||
| Return on average tangible common equity | 16.93 | % | (4.03) % | 13.58 | % | 6.84 | % | 16.21 | % | |||||||
| Tangible common equity to tangible assets | 6.20 | % | 6.51 | % | 8.47 | % | 6.20 | % | 8.47 | % | ||||||
| Tangible common equity to risk-weighted assets (2) | 8.03 | % | 8.79 | % | 11.98 | % | 8.03 | % | 11.98 | % | ||||||
| Tangible common book value (1) | 9.23 | 9.71 | 11.55 | 9.23 | 11.55 | |||||||||||
| 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) | $ | 3,333,380 | $ | 3,246,482 | $ | 1,908,053 | $ | 3,333,380 | $ | 1,908,053 | ||||||
| Risk-weighted assets (2) | 33,662,205 | 32,341,335 | 15,971,711 | 33,662,205 | 15,971,711 | |||||||||||
| Tier 1 common equity to risk-weighted assets (2) | 9.90 | % | 10.04 | % | 11.95 | % | 9.90 | % | 11.95 | % | ||||||
| (2) June 30, 2022 figures are preliminary. | ||||||||||||||||
