Old National Bancorp Reports Second Quarter 2024 Results

| Source: Old National Bancorp Old National Bancorp

EVANSVILLE, Ind., July 23, 2024 (GLOBE NEWSWIRE) --

Old National Bancorp (NASDAQ: ONB) reports 2Q24 net income applicable to common shares of $117.2 million, diluted EPS of $0.37; $144.1 million and $0.46 on an adjusted1 basis, respectively.

CEO COMMENTARY:

"Old National’s second quarter results exceeded expectations due to better than expected revenue growth and lower expenses," said Chairman and CEO Jim Ryan. "We achieved these outstanding results while also successfully closing on our CapStar Bank partnership and working to complete the associated systems integration. As a result, Old National has meaningfully increased our presence in Nashville, Tenn., while expanding our operations into several other vibrant Southeastern markets."
  

 

SECOND QUARTER HIGHLIGHTS2:

Net Income
  • Net income applicable to common shares of $117.2 million; adjusted net income applicable to common shares1 of $144.1 million
  • Earnings per diluted common share ("EPS") of $0.37; adjusted EPS1 of $0.46
  
Net Interest
Income/NIM
  • Net interest income on a fully taxable equivalent basis1 of $394.8 million
  • Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.33%, up 5 basis points ("bps")
  
Operating
Performance
  • Pre-provision net revenue1 (“PPNR”) of $199.0 million; adjusted PPNR1 of $218.5 million
  • Noninterest expense of $283.0 million; adjusted noninterest expense1 of $263.6 million
  • Efficiency ratio1 of 57.2%; adjusted efficiency ratio1 of 52.6%
  
Deposits and
Funding
  • Period-end total deposits of $40.0 billion, up $2.3 billion; core deposits up $1.7 billion
    • Period-end total deposits up 2.4% annualized excluding CapStar Financial Holdings, Inc. ("CapStar")
  • Granular low-cost deposit franchise; total deposit costs of 216 bps and a cycle to date (2Q22-2Q24) total deposit beta of 41% (interest-bearing deposit beta of 53%)
  
Loans and
Credit Quality
  • End-of-period total loans3 of $36.2 billion, up $2.6 billion
    • End-of-period total loans3 up 5.9% annualized excluding CapStar
  • Provision for credit losses4 ("provision") of $36.2 million; $20.9 million excluding $15.3 million of current expected credit loss ("CECL") Day 1 non-purchased credit deteriorated ("non-PCD") provision expense5
  • Net charge-offs of $14.0 million, or 16 bps of average loans; 11 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
Return Profile &
Capital
  • 30+ day delinquencies of 0.16% and non-performing loans of 0.94% of total loans
 
  • Return on average tangible common equity1 of 14.1%; adjusted return on average tangible common equity1 of 17.2%
  
Notable Items
  • Closing of CapStar partnership on April 1, 2024
  • $19.4 million of pre-tax merger-related charges
  • $15.3 million of pre-tax CECL Day 1 non-PCD provision expense5
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 Refers to the initial increase in allowance for credit losses required on acquired non-PCD loans through the provision for credit losses
  

RESULTS OF OPERATIONS2
Old National Bancorp ("Old National") reported second quarter 2024 net income applicable to common shares of $117.2 million, or $0.37 per diluted common share.

Included in second quarter results were pre-tax charges of $19.4 million primarily related to the April 1, 2024 acquisition of CapStar Financial Holdings, Inc. ("CapStar") and $15.3 million of pre-tax CECL Day 1 non-PCD provision expense related to the allowance for credit losses established on acquired non-PCD loans. Excluding these transactions and realized debt securities gains from the current quarter, adjusted net income1 was $144.1 million, or $0.46 per diluted common share.

DEPOSITS AND FUNDING
Growth in deposits driven by CapStar including seasonal outflows of commercial and retail deposits offset by public fund and brokered deposits increases.

  • Period-end total deposits were $40.0 billion, up $2.3 billion; core deposits up $1.7 billion; includes $2.1 billion of end of period deposits assumed in the CapStar transaction.
    • Excluding deposits assumed in the CapStar transaction, period-end total deposits were up 2.4% annualized.
  • On average, total deposits for the second quarter were $40.1 billion, up $3.0 billion.
  • Granular low-cost deposit franchise; total deposit costs of 216 bps and a cycle to date total deposit beta of 41% (interest-bearing deposit beta of 53%).
  • A loan to deposit ratio of 91%, combined with existing funding sources, provides strong liquidity.

LOANS
Broad-based disciplined commercial loan growth.

  • Period-end total loans3 were $36.2 billion, up $2.6 billion; includes $2.1 billion of period end loans acquired in the CapStar transaction.
    • Excluding loans acquired in the CapStar transaction, period-end total loans3 were up 5.9% annualized.
  • Total commercial loan production in the second quarter was $1.5 billion; period-end commercial pipeline totaled $3.4 billion.
  • Average total loans in the second quarter were $36.1 billion, an increase of $2.8 billion.

CREDIT QUALITY
Strong credit quality continues to be a hallmark of Old National.

  • Provision4 expense was $36.2 million, $20.9 million excluding $15.3 million of CECL Day 1 non-PCD provision expense related to the allowance for credit losses established on acquired non-PCD loans in the CapStar transaction, compared to $18.9 million, reflecting net charge-offs and loan growth, as well as economic factors.
  • Net charge-offs were $14.0 million, or 16 bps of average loans compared to net charge-offs of 14 bps of average loans.
    • Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 11 bps.
  • 30+ day delinquencies as a percentage of loans were consistent at 0.16%.
  • Nonaccrual loans as a percentage of total loans were 0.94% compared to 0.98%.
  • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $190.0 million, of which $119.0 million related to CapStar.
  • The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $392.1 million, or 1.08% of total loans, compared to $346.0 million, or 1.03% of total loans, reflecting $15.3 million of CECL Day 1 non-PCD provision expense related to acquired non-PCD loans and $23.9 million of allowance related to acquired PCD loans.

NET INTEREST INCOME AND MARGIN
Higher net interest income and margin expansion reflective of CapStar.

  • Net interest income on a fully taxable equivalent basis1 increased to $394.8 million compared to $362.7 million, driven by CapStar, loan growth and higher asset yields, partly offset by higher funding costs.
  • Net interest margin on a fully taxable equivalent basis1 increased 5 bps to 3.33%.
  • Accretion income on loans and borrowings was $11.6 million, or 10 bps of net interest margin1, compared to $5.1 million, or 5 bps of net interest margin1.
  • Cost of total deposits was 2.16%, increasing 15 bps and the cost of total interest-bearing deposits increased 16 bps to 2.84%.

NONINTEREST INCOME
Increase driven by CapStar, wealth fees, mortgage fees and capital markets income.

  • Total noninterest income was $87.3 million compared to $77.5 million.
    • CapStar contributed $6.5 million to noninterest income during the quarter.
  • Noninterest income was up 12.6% driven by CapStar revenue as well as higher wealth fees, mortgage fees and capital markets income.

NONINTEREST EXPENSE
Higher due to CapStar; disciplined expense management.

  • Noninterest expense was $283.0 million and included $19.4 million of merger-related charges.
    • CapStar contributed $17.7 million to noninterest expense during the quarter.
  • Excluding merger-related charges, adjusted noninterest expense was $263.6 million, compared to $243.1 million; higher due primarily to operating costs associated with CapStar as well as technology and professional fees.
  • The efficiency ratio1 was 57.2%, while the adjusted efficiency ratio1 was 52.6% compared to 58.3% and 53.4%, respectively.

INCOME TAXES

  • Income tax expense was $35.3 million, resulting in an effective tax rate of 22.5% compared to 21.3%. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 25.5% compared to 24.4%.
  • Income tax expense included $3.5 million of tax credit benefit.

CAPITAL
Capital ratios remain strong.

  • Preliminary total risk-based capital down 3 bps to 12.71% and preliminary regulatory Tier 1 capital down 7 bps to 11.33%, as strong retained earnings were more than offset by the CapStar transaction and loan growth.
  • Tangible common equity to tangible assets was 6.94% compared to 6.86%.

CAPSTAR TRANSACTION
On April 1, 2024, Old National completed its acquisition of CapStar, and its wholly-owned subsidiary, CapStar Bank. This partnership strengthens Old National’s Nashville, Tennessee presence and adds several new high-growth markets. At closing, CapStar had approximately $3.1 billion of total assets, $2.1 billion of total loans, and $2.6 billion of deposits. The consideration paid totaled $417.6 million and consisted of 24.0 million shares of Old National common stock. All system conversions related to the transaction were completed in early July of 2024.

CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, July 23, 2024, to review second quarter 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 2973663. A replay of the call will also be available from approximately noon Central Time on July 23, 2024 through August 6, 2024. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 2973663.

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 $53 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, CECL Day 1 non-PCD provision expense, debt securities gains/losses, 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 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 associated with completed and pending acquisitions, 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 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," "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 expected cost savings, synergies and other financial benefits from the merger (the “Merger”) between Old National and CapStar Financial Holdings, Inc. 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 potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses and the success of revenue-generating and cost reduction initiatives; 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 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: Kathy SchoettlinInvestors: Lynell Durchholz
(812) 465-7269(812) 464-1366
Kathy.Schoettlin@oldnational.comLynell.Durchholz@oldnational.com
  


        
Financial Highlights (unaudited)
($ and shares in thousands, except per share data)
         
 Three Months Ended Six Months Ended
 June 30,March 31,December 31,September 30,June 30, June 30,June 30,
  2024  2024  2023  2023  2023   2024  2023 
Income Statement        
Net interest income$388,421 $356,458 $364,408 $375,086 $382,171  $744,879 $763,659 
FTE adjustment1,3 6,340  6,253  6,100  5,837  5,825   12,593  11,491 
Net interest income - tax equivalent basis3 394,761  362,711  370,508  380,923  387,996   757,472  775,150 
Provision for credit losses 36,214  18,891  11,595  19,068  14,787   55,105  28,224 
Noninterest income 87,271  77,522  100,094  80,938  81,629   164,793  152,310 
Noninterest expense 282,999  262,317  284,235  244,776  246,584   545,316  497,295 
Net income available to common shareholders$117,196 $116,250 $128,446 $143,842 $151,003  $233,446 $293,569 
Per Common Share Data        
Weighted average diluted shares 316,461  292,207  292,029  291,717  291,266   304,207  291,870 
EPS, diluted$0.37 $0.40 $0.44 $0.49 $0.52  $0.77 $1.01 
Cash dividends 0.14  0.14  0.14  0.14  0.14   0.28  0.28 
Dividend payout ratio2 38% 35% 32% 29% 27%  36% 28%
Book value$18.28 $18.24 $18.18 $17.07 $17.25  $18.28 $17.25 
Stock price 17.19  17.41  16.89  14.54  13.94   17.19  13.94 
Tangible book value3 11.05  11.10  11.00  9.87  10.03   11.05  10.03 
Performance Ratios        
ROAA 0.92% 0.98% 1.09% 1.22% 1.29%  0.95% 1.27%
ROAE 8.2% 8.7% 10.2% 11.4% 12.0%  8.4% 11.8%
ROATCE3 14.1% 14.9% 18.1% 20.2% 21.4%  14.5% 21.2%
NIM (FTE) 3.33% 3.28% 3.39% 3.49% 3.60%  3.31% 3.65%
Efficiency ratio3 57.2% 58.3% 59.0% 51.7% 51.2%  57.7% 52.0%
NCOs to average loans 0.16% 0.14% 0.12% 0.24% 0.13%  0.15% 0.17%
ACL on loans to EOP loans 1.01% 0.95% 0.93% 0.93% 0.93%  1.01% 0.93%
ACL4 to EOP loans 1.08% 1.03% 1.03% 1.03% 1.04%  1.08% 1.04%
NPLs to EOP loans 0.94% 0.98% 0.83% 0.80% 0.91%  0.94% 0.91%
Balance Sheet (EOP)        
Total loans$36,150,513 $33,623,319 $32,991,927 $32,577,834 $32,432,473  $36,150,513 $32,432,473 
Total assets 53,119,645  49,534,918  49,089,836  49,059,448  48,496,755   53,119,645  48,496,755 
Total deposits 39,999,228  37,699,418  37,235,180  37,252,676  36,231,315   39,999,228  36,231,315 
Total borrowed funds 6,085,204  5,331,161  5,331,147  5,556,010  6,034,008   6,085,204  6,034,008 
Total shareholders' equity 6,075,072  5,595,408  5,562,900  5,239,537  5,292,095   6,075,072  5,292,095 
Capital Ratios        
Risk-based capital ratios (EOP):        
Tier 1 common equity 10.73% 10.76% 10.70% 10.41% 10.14%  10.73% 10.14%
Tier 1 capital 11.33% 11.40% 11.35% 11.06% 10.79%  11.33% 10.79%
Total capital 12.71% 12.74% 12.64% 12.32% 12.14%  12.71% 12.14%
Leverage ratio (average assets) 8.90% 8.96% 8.83% 8.70% 8.59%  8.90% 8.59%
Equity to assets (averages)3 11.31% 11.32% 10.81% 10.88% 10.96%  11.31% 10.98%
TCE to TA3 6.94% 6.86% 6.85% 6.15% 6.33%  6.94% 6.33%
Nonfinancial Data        
Full-time equivalent employees 4,267  3,955  3,940  3,981  4,021   4,267  4,021 
Banking centers 280  258  258  257  256   280  256 
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, 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


         
Income Statement (unaudited)
($ and shares in thousands, except per share data)
 Three Months Ended Six Months Ended
 June 30,March 31,December 31,September 30,June 30, June 30,June 30,
  2024  2024  2023  2023  2023   2024  2023 
Interest income$663,663 $595,981 $589,751 $576,519 $544,902  $1,259,644 $1,040,551 
Less: interest expense 275,242  239,523  225,343  201,433  162,731   514,765  276,892 
Net interest income 388,421  356,458  364,408  375,086  382,171   744,879  763,659 
Provision for credit losses 36,214  18,891  11,595  19,068  14,787   55,105  28,224 
Net interest income
after provision for credit losses		 352,207  337,567  352,813  356,018  367,384   689,774  735,435 
Wealth and investment services fees 29,358  28,304  27,656  26,687  26,521   57,662  53,441 
Service charges on deposit accounts 19,350  17,898  18,667  18,524  17,751   37,248  34,754 
Debit card and ATM fees 10,993  10,054  10,700  10,818  10,653   21,047  20,635 
Mortgage banking revenue 7,064  4,478  3,691  5,063  4,165   11,542  7,565 
Capital markets income 4,729  2,900  5,416  5,891  6,173   7,629  13,112 
Company-owned life insurance 5,739  3,434  3,773  3,740  4,698   9,173  7,884 
Gain on sale of Visa Class B restricted shares —  —  21,635  —  —   —  — 
Other income 10,036  10,470  9,381  10,456  11,651   20,506  20,118 
Debt securities gains (losses), net 2  (16) (825) (241) 17   (14) (5,199)
Total noninterest income 87,271  77,522  100,094  80,938  81,629   164,793  152,310 
Salaries and employee benefits 159,193  149,803  141,649  131,541  135,810   308,996  273,174 
Occupancy 26,547  27,019  26,514  25,795  26,085   53,566  54,367 
Equipment 8,704  8,671  8,769  8,284  7,721   17,375  15,110 
Marketing 11,284  10,634  10,813  9,448  9,833   21,918  19,250 
Technology 24,002  20,023  20,493  20,592  20,056   44,025  39,258 
Communication 4,480  4,000  4,212  4,075  4,232   8,480  8,693 
Professional fees 10,552  6,406  8,250  5,956  6,397   16,958  13,129 
FDIC assessment 9,676  11,313  27,702  9,000  9,624   20,989  20,028 
Amortization of intangibles 7,425  5,455  5,869  6,040  6,060   12,880  12,246 
Amortization of tax credit investments 2,747  2,749  7,200  2,644  2,762   5,496  5,523 
Other expense 18,389  16,244  22,764  21,401  18,004   34,633  36,517 
Total noninterest expense 282,999  262,317  284,235  244,776  246,584   545,316  497,295 
Income before income taxes 156,479  152,772  168,672  192,180  202,429   309,251  390,450 
Income tax expense 35,250  32,488  36,192  44,304  47,393   67,738  88,814 
Net income$121,229 $120,284 $132,480 $147,876 $155,036  $241,513 $301,636 
Preferred dividends (4,033) (4,034) (4,034) (4,034) (4,033)  (8,067) (8,067)
Net income applicable to common shares$117,196 $116,250 $128,446 $143,842 $151,003  $233,446 $293,569 
         
EPS, diluted$0.37 $0.40 $0.44 $0.49 $0.52  $0.77 $1.01 
Weighted Average Common Shares Outstanding        
Basic 315,585  290,980  290,701  290,648  290,559   303,283  290,822 
Diluted 316,461  292,207  292,029  291,717  291,266   304,207  291,870 
Common shares outstanding (EOP) 318,969  293,330  292,655  292,586  292,597   318,969  292,597 
         


 
End of Period Balance Sheet (unaudited)
($ in thousands)
 June 30,March 31,December 31,September 30,June 30,
  2024  2024  2023  2023  2023 
Assets     
Cash and due from banks$428,665 $350,990 $430,866 $381,343 $473,023 
Money market and other interest-earning investments 804,381  588,509  744,192  1,282,087  724,863 
Investments:     
Treasury and government-sponsored agencies 2,207,004  2,243,754  2,453,950  2,515,249  2,309,285 
Mortgage-backed securities 5,890,371  5,566,881  5,245,691  4,906,290  5,168,458 
States and political subdivisions 1,678,597  1,672,061  1,693,819  1,705,200  1,760,725 
Other securities 775,623  760,847  779,048  751,404  802,323 
Total investments 10,551,595  10,243,543  10,172,508  9,878,143  10,040,791 
Loans held-for-sale, at fair value 66,126  19,418  32,006  122,033  114,369 
Loans:     
Commercial 10,332,631  9,648,269  9,512,230  9,333,448  9,698,241 
Commercial and agriculture real estate 16,016,958  14,653,958  14,140,629  13,916,221  13,450,209 
Residential real estate 6,894,957  6,661,379  6,699,443  6,696,288  6,684,480 
Consumer 2,905,967  2,659,713  2,639,625  2,631,877  2,599,543 
Total loans 36,150,513  33,623,319  32,991,927  32,577,834  32,432,473 
Allowance for credit losses on loans (366,335) (319,713) (307,610) (303,982) (300,555)
Premises and equipment, net 601,945  564,007  565,396  565,607  564,299 
Goodwill and other intangible assets 2,306,204  2,095,511  2,100,966  2,106,835  2,112,875 
Company-owned life insurance 862,032  767,423  767,902  774,517  771,753 
Accrued interest receivable and other assets 1,714,519  1,601,911  1,591,683  1,675,031  1,562,864 
Total assets$53,119,645 $49,534,918 $49,089,836 $49,059,448 $48,496,755 
      
Liabilities and Equity     
Noninterest-bearing demand deposits$9,336,042 $9,257,709 $9,664,247 $10,091,352 $10,532,838 
Interest-bearing:     
Checking and NOW accounts 7,680,865  7,236,667  7,331,487  7,495,417  7,654,202 
Savings accounts 4,983,811  5,020,095  5,099,186  5,296,985  5,578,323 
Money market accounts 10,485,491  10,234,113  9,561,116  8,793,218  7,200,288 
Other time deposits 5,688,432  4,760,659  4,565,137  4,398,182  4,012,813 
Total core deposits 38,174,641  36,509,243  36,221,173  36,075,154  34,978,464 
Brokered deposits 1,824,587  1,190,175  1,014,007  1,177,522  1,252,851 
Total deposits 39,999,228  37,699,418  37,235,180  37,252,676  36,231,315 
      
Federal funds purchased and interbank borrowings 250,154  50,416  390  918  136,060 
Securities sold under agreements to repurchase 240,713  274,493  285,206  279,061  311,447 
Federal Home Loan Bank advances 4,744,560  4,193,039  4,280,681  4,412,576  4,771,183 
Other borrowings 849,777  813,213  764,870  863,455  815,318 
Total borrowed funds 6,085,204  5,331,161  5,331,147  5,556,010  6,034,008 
Accrued expenses and other liabilities 960,141  908,931  960,609  1,011,225  939,337 
Total liabilities 47,044,573  43,939,510  43,526,936  43,819,911  43,204,660 
Preferred stock, common stock, surplus, and retained earnings 6,866,480  6,375,036  6,301,709  6,208,352  6,100,728 
Accumulated other comprehensive income (loss), net of tax (791,408) (779,628) (738,809) (968,815) (808,633)
Total shareholders' equity 6,075,072  5,595,408  5,562,900  5,239,537  5,292,095 
Total liabilities and shareholders' equity$53,119,645 $49,534,918 $49,089,836 $49,059,448 $48,496,755 
 


            
Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
            
            
 Three Months Ended Three Months Ended Three Months Ended
 June 30, 2024 March 31, 2024 June 30, 2023
 AverageIncome1/Yield/ AverageIncome1/Yield/ AverageIncome1/Yield/
Earning Assets:BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate
Money market and other interest-earning investments$814,944 $11,3115.58% $757,244 $9,9855.30% $724,601 $8,9664.96%
Investments:           
Treasury and government-sponsored agencies 2,208,935  21,5313.90%  2,362,477  23,2663.94%  2,222,269  19,3553.48%
Mortgage-backed securities 5,828,225  47,9043.29%  5,357,085  38,8882.90%  5,301,084  34,2912.59%
States and political subdivisions 1,686,994  14,2903.39%  1,680,175  13,9763.33%  1,768,897  14,3963.26%
Other securities 788,571  12,5836.38%  770,438  12,1736.32%  824,482  9,9954.85%
Total investments 10,512,725  96,3083.66%  10,170,175  88,3033.47%  10,116,732  78,0373.09%
Loans:2           
Commercial 10,345,098  183,4257.09%  9,540,385  167,2637.01%  9,862,728  163,7216.64%
Commercial and agriculture real estate 15,870,809  260,4076.56%  14,368,370  230,0866.41%  13,164,390  199,2876.06%
Residential real estate loans 6,952,942  67,6833.89%  6,693,814  63,0033.76%  6,643,254  60,7173.66%
Consumer 2,910,331  50,8697.03%  2,645,091  43,5946.63%  2,585,493  39,9996.21%
Total loans 36,079,180  562,3846.24%  33,247,660  503,9466.07%  32,255,865  463,7245.75%
            
Total earning assets$47,406,849 $670,0035.66% $44,175,079 $602,2345.46% $43,097,198 $550,7275.11%
            
Less: Allowance for credit losses on loans (331,043)    (313,470)    (301,311)  
            
Non-earning Assets:           
Cash and due from banks$430,256    $362,676    $418,972   
Other assets 5,341,022     4,961,595     4,884,694   
            
Total assets$52,847,084    $49,185,880    $48,099,553   
            
Interest-Bearing Liabilities:           
Checking and NOW accounts$8,189,454 $34,3981.69% $7,141,201 $25,2521.42% $7,881,863 $24,3581.24%
Savings accounts 5,044,800  5,2540.42%  5,025,400  5,0170.40%  5,785,603  3,2470.23%
Money market accounts 10,728,156  102,5603.84%  9,917,572  94,2133.82%  6,084,963  35,3582.33%
Other time deposits 5,358,103  56,5864.25%  4,689,136  47,4324.07%  3,680,029  26,6332.90%
Total interest-bearing core deposits 29,320,513  198,7982.73%  26,773,309  171,9142.58%  23,432,458  89,5961.53%
Brokered deposits 1,244,237  17,0085.50%  1,047,140  13,5255.19%  948,397  11,3784.81%
Total interest-bearing deposits 30,564,750  215,8062.84%  27,820,449  185,4392.68%  24,380,855  100,9741.66%
            
Federal funds purchased and interbank borrowings 148,835  1,9865.37%  69,090  9615.59%  441,145  5,6555.14%
Securities sold under agreements to repurchase 249,939  6391.03%  296,236  9171.25%  340,178  9001.06%
Federal Home Loan Bank advances 4,473,978  44,6434.01%  4,386,492  41,1673.77%  5,283,728  45,0883.42%
Other borrowings 891,609  12,1685.49%  825,846  11,0395.38%  796,536  10,1145.09%
Total borrowed funds 5,764,361  59,4364.15%  5,577,664  54,0843.90%  6,861,587  61,7573.61%
            
Total interest-bearing liabilities$36,329,111 $275,2423.05% $33,398,113 $239,5232.88% $31,242,442 $162,7312.09%
            
Noninterest-Bearing Liabilities and Shareholders' Equity           
Demand deposits$9,558,675    $9,258,136    $10,741,646   
Other liabilities 980,322     964,089     841,663   
Shareholders' equity 5,978,976     5,565,542     5,273,802   
            
Total liabilities and shareholders' equity$52,847,084    $49,185,880    $48,099,553   
            
Net interest rate spread  2.61%   2.58%   3.02%
            
Net interest margin (GAAP)  3.28%   3.23%   3.55%
            
Net interest margin (FTE)3  3.33%   3.28%   3.60%
            
FTE adjustment $6,340   $6,253   $5,825 
            
1 Interest income is reflected on a FTE basis. 
2 Includes loans held-for-sale. 
3 Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. 
 


         
Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
         
         
  Six Months Ended Six Months Ended
  June 30, 2024 June 30, 2023
  AverageIncome1/Yield/ AverageIncome1/Yield/
Earning Assets: BalanceExpenseRate BalanceExpenseRate
Money market and other interest-earning investments $786,094 $21,2965.45% $611,903 $12,0643.98%
Investments:        
Treasury and government-sponsored agencies  2,285,706  44,7973.92%  2,209,916  35,8863.25%
Mortgage-backed securities  5,592,655  86,7923.10%  5,364,788  69,3812.59%
States and political subdivisions  1,683,585  28,2663.36%  1,788,498  29,0863.25%
Other securities  779,504  24,7566.35%  781,549  18,5994.76%
Total investments $10,341,450 $184,6113.57% $10,144,751 $152,9523.02%
Loans:2        
Commercial  9,942,741  350,6887.05%  9,661,029  311,3416.45%
Commercial and agriculture real estate  15,119,590  490,4936.49%  12,910,787  378,7625.87%
Residential real estate loans  6,823,378  130,6863.83%  6,582,982  118,8173.61%
Consumer  2,777,711  94,4636.84%  2,611,295  78,1066.03%
Total loans  34,663,420  1,066,3306.16%  31,766,093  887,0265.59%
         
Total earning assets $45,790,964 $1,272,2375.56% $42,522,747 $1,052,0424.95%
         
Less: Allowance for credit losses on loans  (322,256)    (302,844)  
         
Non-earning Assets:        
Cash and due from banks $396,466    $428,370   
Other assets  5,151,308     4,895,843   
         
Total assets $51,016,482    $47,544,116   
         
Interest-Bearing Liabilities:        
Checking and NOW accounts $7,665,327 $59,6501.56% $7,934,927 $43,7171.11%
Savings accounts  5,035,100  10,2710.41%  5,983,407  5,4770.18%
Money market accounts  10,322,808  196,7733.83%  5,864,351  55,3681.90%
Other time deposits  5,023,620  104,0184.16%  3,370,668  41,9222.51%
Total interest-bearing core deposits  28,046,855  370,7122.66%  23,153,353  146,4841.28%
Brokered deposits  1,145,744  30,5335.36%  725,701  17,0834.75%
Total interest-bearing deposits  29,192,599  401,2452.76%  23,879,054  163,5671.38%
         
Federal funds purchased and interbank borrowings  108,962  2,9475.44%  430,278  10,4944.92%
Securities sold under agreements to repurchase  273,088  1,5561.15%  376,298  1,6790.90%
Federal Home Loan Bank advances  4,430,236  85,8103.90%  4,781,326  83,0843.50%
Other borrowings  858,727  23,2075.43%  788,921  18,0684.62%
Total borrowed funds  5,671,013  113,5204.03%  6,376,823  113,3253.58%
         
Total interest-bearing liabilities  34,863,612  514,7652.97%  30,255,877  276,8921.85%
         
Noninterest-Bearing Liabilities and Shareholders' Equity       
Demand deposits $9,408,406    $11,131,789   
Other liabilities  972,205     936,158   
Shareholders' equity  5,772,259     5,220,292   
         
Total liabilities and shareholders' equity $51,016,482    $47,544,116   
         
Net interest rate spread   2.59%   3.10%
         
Net interest margin (GAAP)   3.25%   3.59%
         
Net interest margin (FTE)3   3.31%   3.65%
         
FTE adjustment  $12,593   $11,491 
         
1 Interest income is reflected on a FTE.
2 Includes loans held-for-sale.        
3 Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.  
 


         
Asset Quality (EOP) (unaudited)
($ in thousands)
         
 Three Months Ended Six Months Ended
 June 30,March 31,December 31,September 30,June 30, June 30,June 30,
  2024  2024  2023  2023  2023   2024  2023 
Allowance for credit losses:        
Beginning allowance for credit losses on loans$319,713 $307,610 $303,982 $300,555 $298,711  $307,610 $303,671 
Allowance established for acquired PCD loans 23,922  —  —  —  —   23,922  — 
Provision for credit losses on loans 36,745  23,853  13,329  23,115  11,936   60,598  23,405 
Gross charge-offs (17,041) (14,020) (13,202) (22,750) (14,331)  (31,061) (32,511)
Gross recoveries 2,996  2,270  3,501  3,062  4,239   5,266  5,990 
NCOs (14,045) (11,750) (9,701) (19,688) (10,092)  (25,795) (26,521)
Ending allowance for credit losses on loans$366,335 $319,713 $307,610 $303,982 $300,555  $366,335 $300,555 
Beginning allowance for credit losses on unfunded commitments$26,264 $31,226 $32,960 $37,007 $34,156  $31,226 $32,188 
Provision (release) for credit losses on unfunded commitments (531) (4,962) (1,734) (4,047) 2,851   (5,493) 4,819 
Ending allowance for credit losses on unfunded commitments$25,733 $26,264 $31,226 $32,960 $37,007  $25,733 $37,007 
Allowance for credit losses$392,068 $345,977 $338,836 $336,942 $337,562  $392,068 $337,562 
Provision for credit losses on loans$36,745 $23,853 $13,329 $23,115 $11,936  $60,598 $23,405 
Provision (release) for credit losses on unfunded commitments (531) (4,962) (1,734) (4,047) 2,851   (5,493) 4,819 
Provision for credit losses$36,214 $18,891 $11,595 $19,068 $14,787  $55,105 $28,224 
NCOs / average loans1 0.16% 0.14% 0.12% 0.24% 0.13%  0.15% 0.17%
Average loans1$36,053,845 $33,242,739 $32,752,406 $32,639,812 $32,251,242  $34,648,292 $31,762,256 
EOP loans1 36,150,513  33,623,319  32,991,927  32,577,834  32,432,473   36,150,513  32,432,473 
ACL on loans / EOP loans1 1.01% 0.95% 0.93% 0.93% 0.93%  1.01% 0.93%
ACL / EOP loans1 1.08% 1.03% 1.03% 1.03% 1.04%  1.08% 1.04%
Underperforming Assets:        
Loans 90 days and over (still accruing)$5,251 $2,172 $961 $1,192 $303  $5,251 $303 
Nonaccrual loans 340,181  328,645  274,821  261,346  295,509   340,181  295,509 
Foreclosed assets 8,290  9,344  9,434  9,761  9,824   8,290  9,824 
Total underperforming assets$353,722 $340,161 $285,216 $272,299 $305,636  $353,722 $305,636 
Classified and Criticized Assets:        
Nonaccrual loans$340,181 $328,645 $274,821 $261,346 $295,509  $340,181 $295,509 
Substandard loans (still accruing) 841,087  626,157  599,358  563,427  524,709   841,087  524,709 
Loans 90 days and over (still accruing) 5,251  2,172  961  1,192  303   5,251  303 
Total classified loans - "problem loans" 1,186,519  956,974  875,140  825,965  820,521   1,186,519  820,521 
Other classified assets 60,772  54,392  48,930  48,998  40,942   60,772  40,942 
Special Mention 967,655  827,419  843,920  775,526  614,547   967,655  614,547 
Total classified and criticized assets$2,214,946 $1,838,785 $1,767,990 $1,650,489 $1,476,010  $2,214,946 $1,476,010 
Loans 30-89 days past due (still accruing)$51,712 $53,112 $71,868 $56,772 $39,748  $51,712 $39,748 
Nonaccrual loans / EOP loans1 0.94% 0.98% 0.83% 0.80% 0.91%  0.94% 0.91%
ACL / nonaccrual loans 115% 105% 123% 129% 114%  115% 114%
Under-performing assets/EOP loans1 0.98% 1.01% 0.86% 0.84% 0.94%  0.98% 0.94%
Under-performing assets/EOP assets 0.67% 0.69% 0.58% 0.56% 0.63%  0.67% 0.63%
30+ day delinquencies/EOP loans1 0.16% 0.16% 0.22% 0.18% 0.12%  0.16% 0.12%
         
1 Excludes loans held-for-sale.      
         

                

         
Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)
         
 Three Months Ended Six Months Ended
 June 30,March 31,December 31,September 30,June 30, June 30,June 30,
  2024  2024  2023  2023  2023   2024  2023 
Earnings Per Share:        
Net income applicable to common shares$117,196 $116,250 $128,446 $143,842 $151,003  $233,446 $293,569 
Adjustments:        
Merger-related charges 19,440  2,908  5,529  6,257  2,372   22,348  16,930 
Tax effect1 (4,413) (710) (1,343) (1,042) (277)  (5,123) (3,449)
Merger-related charges, net 15,027  2,198  4,186  5,215  2,095   17,225  13,481 
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  — 
Debt securities (gains) losses (2) 16  825  241  (17)  14  5,199 
Tax effect1 1  (4) (200) (40) 2   (3) (1,135)
Debt securities (gains) losses, net (1) 12  625  201  (15)  11  4,064 
Distribution of excess pension assets —  13,318  —  —  — — 13,318  — 
Tax effect1 —  (3,250) —  —  — — (3,250) — 
Distribution excess pension assets, net —  10,068  —  —  —   10,068  — 
FDIC special assessment —  2,994  19,052  —  —   2,994  — 
Tax effect1 —  (731) (4,628) —  —   (731) — 
FDIC special assessment, net —  2,263  14,424  —  —   2,263  — 
Gain on sale of Visa Class B restricted shares —  —  (21,635) —  —   —  — 
Tax effect1 —  —  5,255  —  —   —  — 
Gain on sale of Visa Class B restricted shares, net —  —  (16,380) —  —   —  — 
Contract termination charge —  —  4,413  —  —   —  — 
Tax effect1 —  —  (1,072) —  —   —  — 
Contract termination charge, net —  —  3,341  —  —   —  — 
Louisville expenses —  —  —  —  3,361   —  3,361 
Tax effect1 —  —  —  —  (392)  —  (392)
Louisville expenses, net —  —  —  —  2,969   —  2,969 
Property optimization charges —  —  —  —  242   —  1,559 
Tax effect1 —  —  —  —  (28)  —  (315)
Property optimization charges, net —  —  —  —  214   —  1,244 
Total adjustments, net 26,862  14,541  6,196  5,416  5,263   41,403  21,758 
Net income applicable to common shares, adjusted$144,058 $130,791 $134,642 $149,258 $156,266  $274,849 $315,327 
Weighted average diluted common shares outstanding 316,461  292,207  292,029  291,717  291,266   304,207  291,870 
EPS, diluted$0.37 $0.40 $0.44 $0.49 $0.52  $0.77 $1.01 
Adjusted EPS, diluted$0.46 $0.45 $0.46 $0.51 $0.54  $0.90 $1.08 
NIM:        
Net interest income$388,421 $356,458 $364,408 $375,086 $382,171  $744,879 $763,659 
Add: FTE adjustment2 6,340  6,253  6,100  5,837  5,825   12,593  11,491 
Net interest income (FTE)$394,761 $362,711 $370,508 $380,923 $387,996  $757,472 $775,150 
Average earning assets$47,406,849 $44,175,079 $43,701,283 $43,617,456 $43,097,198  $45,790,964 $42,522,747 
NIM (GAAP) 3.28% 3.23% 3.34% 3.44% 3.55%  3.25% 3.59%
NIM (FTE) 3.33% 3.28% 3.39% 3.49% 3.60%  3.31% 3.65%
         
Refer to last page of Non-GAAP reconciliations for footnotes.      


         
Non-GAAP Measures (unaudited)
($ in thousands)
         
 Three Months Ended Six Months Ended
 June 30,March 31,December 31,September 30,June 30, June 30,June 30,
  2024  2024  2023  2023  2023   2024  2023 
PPNR:        
Net interest income (FTE)2$394,761 $362,711 $370,508 $380,923 $387,996  $757,472 $775,150 
Add: Noninterest income 87,271  77,522  100,094  80,938  81,629   164,793  152,310 
Total revenue (FTE) 482,032  440,233  470,602  461,861  469,625   922,265  927,460 
Less: Noninterest expense (282,999) (262,317) (284,235) (244,776) (246,584)  (545,316) (497,295)
PPNR$199,033 $177,916 $186,367 $217,085 $223,041  $376,949 $430,165 
Adjustments:        
Gain on sale of Visa Class B restricted shares$— $— $(21,635)$— $—  $— $— 
Debt securities (gains) losses (2) 16  825  241  (17)  14  5,199 
Noninterest income adjustments (2) 16  (20,810) 241  (17)  14  5,199 
Adjusted noninterest income 87,269  77,538  79,284  81,179  81,612   164,807  157,509 
Adjusted revenue$482,030 $440,249 $449,792 $462,102 $469,608  $922,279 $932,659 
Adjustments:        
Merger-related charges$19,440 $2,908 $5,529 $6,257 $2,372  $22,348 $16,930 
Distribution of excess pension assets —  13,318  —  —  —   13,318  — 
FDIC Special Assessment —  2,994  19,052  —  —   2,994  — 
Contract termination charges —  —  4,413  —  —   —  — 
Louisville expenses —  —  —  —  3,361   —  3,361 
Property optimization charges —  —  —  —  242   —  1,559 
Noninterest expense adjustments 19,440  19,220  28,994  6,257  5,975   38,660  21,850 
Adjusted total noninterest expense (263,559) (243,097) (255,241) (238,519) (240,609)  (506,656) (475,445)
Adjusted PPNR$218,471 $197,152 $194,551 $223,583 $228,999  $415,623 $457,214 
Efficiency Ratio:        
Noninterest expense$282,999 $262,317 $284,235 $244,776 $246,584  $545,316 $497,295 
Less: Amortization of intangibles (7,425) (5,455) (5,869) (6,040) (6,060)  (12,880) (12,246)
Noninterest expense, excl. amortization of intangibles 275,574  256,862  278,366  238,736  240,524   532,436  485,049 
Less: Amortization of tax credit investments (2,747) (2,749) (7,200) (2,644) (2,762)  (5,496) (5,523)
Less: Noninterest expense adjustments (19,440) (19,220) (28,994) (6,257) (5,975)  (38,660) (21,850)
Adjusted noninterest expense, excluding amortization$253,387 $234,893 $242,172 $229,835 $231,787  $488,280 $457,676 
Total revenue (FTE)2$482,032 $440,233 $470,602 $461,861 $469,625  $922,265 $927,460 
Less: Debt securities (gains) losses (2) 16  825  241  (17)  14  5,199 
Total revenue excl. debt securities (gains) losses 482,030  440,249  471,427  462,102  469,608   922,279  932,659 
Less: Gain on sale of Visa Class B restricted shares —  —  (21,635) —  —   —  — 
Total adjusted revenue$482,030 $440,249 $449,792 $462,102 $469,608  $922,279 $932,659 
Efficiency Ratio 57.2% 58.3% 59.0% 51.7% 51.2%  57.7% 52.0%
Adjusted Efficiency Ratio 52.6% 53.4% 53.8% 49.7% 49.4%  52.9% 49.1%
         
Refer to last page of Non-GAAP reconciliations for footnotes.      


         
Non-GAAP Measures (unaudited)
($ in thousands)
         
 Three Months Ended Six Months Ended
 June 30,March 31,December 31,September 30,June 30, June 30,June 30,
  2024  2024  2023  2023  2023   2024  2023 
ROAE and ROATCE:        
Net income applicable to common shares$117,196 $116,250 $128,446 $143,842 $151,003  $233,446 $293,569 
Amortization of intangibles 7,425  5,455  5,869  6,040  6,060   12,880  12,246 
Tax effect1 (1,856) (1,364) (1,467) (1,510) (1,515)  (3,220) (3,062)
Amortization of intangibles, net 5,569  4,091  4,402  4,530  4,545   9,660  9,184 
Net income applicable to common shares, excluding intangibles amortization 122,765  120,341  132,848  148,372  155,548   243,106  302,753 
Total adjustments, net (see pg.12) 26,862  14,541  6,196  5,416  5,263   41,403  21,758 
Adjusted net income applicable to common shares, excluding intangibles amortization$149,627 $134,882 $139,044 $153,788 $160,811  $284,509 $324,511 
Average shareholders' equity$5,978,976 $5,565,542 $5,281,487 $5,294,072 $5,273,802  $5,772,259 $5,220,292 
Less: Average preferred equity (243,719) (243,719) (243,719) (243,719) (243,719)  (243,719) (243,719)
Average shareholders' common equity$5,735,257 $5,321,823 $5,037,768 $5,050,353 $5,030,083  $5,528,540 $4,976,573 
Average goodwill and other intangible assets (2,245,405) (2,098,338) (2,103,935) (2,109,944) (2,115,894)  (2,171,872) (2,119,008)
Average tangible shareholder's common equity$3,489,852 $3,223,485 $2,933,833 $2,940,409 $2,914,189  $3,356,668 $2,857,565 
ROAE 8.2% 8.7% 10.2% 11.4% 12.0%  8.4% 11.8%
ROAE, adjusted 10.0% 9.8% 10.7% 11.8% 12.4%  9.9% 12.7%
ROATCE 14.1% 14.9% 18.1% 20.2% 21.4%  14.5% 21.2%
ROATCE, adjusted 17.2% 16.7% 19.0% 20.9% 22.1%  17.0% 22.7%
         
Refer to last page of Non-GAAP reconciliations for footnotes.      


      
Non-GAAP Measures (unaudited)
($ in thousands)
      
 As of
 June 30,March 31,December 31,September 30,June 30,
  2024  2024  2023  2023  2023 
Tangible Common Equity:     
Shareholders' equity$6,075,072 $5,595,408 $5,562,900 $5,239,537 $5,292,095 
Less: Preferred equity (243,719) (243,719) (243,719) (243,719) (243,719)
Shareholders' common equity$5,831,353 $5,351,689 $5,319,181 $4,995,818 $5,048,376 
Less: Goodwill and other intangible assets (2,306,204) (2,095,511) (2,100,966) (2,106,835) (2,112,875)
Tangible shareholders' common equity$3,525,149 $3,256,178 $3,218,215 $2,888,983 $2,935,501 
      
Total assets$53,119,645 $49,534,918 $49,089,836 $49,059,448 $48,496,755 
Less: Goodwill and other intangible assets (2,306,204) (2,095,511) (2,100,966) (2,106,835) (2,112,875)
Tangible assets$50,813,441 $47,439,407 $46,988,870 $46,952,613 $46,383,880 
      
Risk-weighted assets3$40,627,117 $37,845,139 $37,407,347 $37,501,646 $37,414,177 
      
Tangible common equity to tangible assets 6.94% 6.86% 6.85% 6.15% 6.33%
Tangible common equity to risk-weighted assets3 8.68% 8.60% 8.60% 7.70% 7.85%
Tangible Common Book Value:     
Common shares outstanding 318,969  293,330  292,655  292,586  292,597 
Tangible common book value$11.05 $11.10 $11.00 $9.87 $10.03 
      
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 June 30, 2024 figures are preliminary.

Mot-clé

Old National Bancorp Old National Bank Old National Earnings