EVANSVILLE, Ind., Jan. 23, 2024 (GLOBE NEWSWIRE) --
Old National Bancorp (NASDAQ: ONB) reports 4Q23 net income applicable to common shares of $128.4 million, diluted EPS of $0.44; $134.6 million and $0.46 on an adjusted1 basis, respectively. Full-year net income applicable to common shares of $565.9 million, diluted EPS of $1.94; $599.2 million and $2.05 on an adjusted1 basis, respectively.
CEO COMMENTARY:
| "Old National finished 2023 with strong reported results and record performance on an adjusted basis for EPS, return on average tangible equity and efficiency ratio. Tangible book value per share grew by 17% year-over-year and, when combined with a 3.7% average dividend yield, provided shareholders with a strong return for the year," said CEO Jim Ryan. "Our peer-leading deposit franchise, disciplined loan growth, strong credit quality, well-managed expenses, and dedicated team members who are committed to our clients and communities drove these outstanding results." "As planned, Mike Scudder will retire as Executive Chairman of Old National Bancorp at the end of January. I want to thank Mike for his 38 combined years of outstanding leadership and dedication to First Midwest and Old National. His contributions to the board were invaluable as we completed our transformational partnership." |
FOURTH QUARTER HIGHLIGHTS2:
| Net Income |
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| Net Interest Income/NIM |
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| Operating Performance |
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| Deposits and Funding |
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| Loans and Credit Quality |
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| Return Profile & Capital |
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| Notable Items |
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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 Comparisons are on a linked-quarter basis, unless otherwise noted 3 Includes loans held-for-sale
4 Includes the provision for unfunded commitments
RESULTS OF OPERATIONS
Old National reported fourth quarter 2023 net income applicable to common shares of $128.4 million, or $0.44 per diluted common share.
Included in fourth quarter results was a $21.6 million pre-tax gain on sale of Visa Class B restricted shares, as well as pre-tax charges of $19.1 million for the FDIC special assessment and $9.9 million of merger-related and other expenses. Excluding these transactions and realized debt securities losses from the current quarter, adjusted net income1 was $134.6 million, or $0.46 per diluted common share.
DEPOSITS AND FUNDING
Stable low-cost deposits including normal seasonal patterns in public funds.
- Period-end total deposits were $37.2 billion at December 31, 2023, consistent with prior quarter; core deposits increased 0.4%; include normal seasonal patterns in public funds which decreased ~$340 million.
- On average, total deposits for the fourth quarter were $37.2 billion, an increase of 1.4%.
- Granular low-cost deposit franchise; total deposit costs of 185 bps and a cycle to date total deposit beta of 35% (interest-bearing deposit beta of 47%).
- A loan to deposit ratio of 89% at December 31, 2023, combined with existing funding sources, provides strong liquidity.
LOANS
Broad-based disciplined commercial loan growth.
- Period-end total loans3 were $33.0 billion at December 31, 2023, up 1.0% from September 30, 2023.
- Total commercial loan production in the fourth quarter was $1.3 billion; period-end commercial pipeline totaled $1.7 billion.
- Average total loans in the fourth quarter were $32.8 billion, an increase of $116.9 million from the third quarter of 2023.
CREDIT QUALITY
Strong credit quality continues to be a hallmark of Old National.
- Provision4 expense in the fourth quarter of 2023 was $11.6 million, compared to $19.1 million in the third quarter of 2023, reflecting net charge-offs, loan growth, as well as economic factors.
- Net charge-offs in the fourth quarter were $9.7 million, or 12 bps of average loans compared to net charge-offs of 24 bps of average loans in the third quarter of 2023.
- Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 3 bps for the fourth quarter of 2023.
- 30+ day delinquencies as a percentage of loans were 0.22% at December 31, 2023, compared to 0.18% at September 30, 2023.
- Non-performing loans as a percentage of total loans were 0.83% compared to 0.80% for the third quarter of 2023.
- Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of December 31, 2023, the remaining discount on these acquired loans was $79.0 million.
- The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $338.8 million, or 1.03% of total loans at December 31, 2023, compared to $336.9 million, or 1.03% of total loans at September 30, 2023.
NET INTEREST INCOME AND MARGIN
Lower net interest income and margin compression reflective of the rate environment.
- Net interest income on a fully taxable equivalent basis1 decreased to $370.5 million in the fourth quarter of 2023 compared to $380.9 million in the third quarter of 2023, driven by higher funding costs, partly offset by loan growth and higher rates on interest-earning assets.
- Net interest margin on a fully taxable equivalent basis1 decreased 10 bps to 3.39% compared to the third quarter of 2023.
- Accretion income on loans and borrowings was $6.2 million, or 6 bps of net interest margin1, in the fourth quarter of 2023 compared to $7.5 million, or 7 bps of net interest margin1, in the third quarter of 2023.
- Cost of total deposits was 1.85%, increasing 24 bps and the cost of total interest-bearing deposits increased 31 bps to 2.53% in the fourth quarter of 2023.
NONINTEREST INCOME
Increased wealth fees offset by lower mortgage fees, capital markets income, and other income.
- Total noninterest income for the fourth quarter of 2023 was $100.1 million and included a $21.6 million pre-tax gain on the sale of VISA B restricted shares.
- Excluding realized debt securities gains/losses for both periods and gain on sale of Visa Class B restricted shares for the fourth quarter of 2023, adjusted noninterest income for the fourth quarter was down 2.3% compared to the third quarter of 2023, due to lower mortgage fees, capital markets income, and other income, partially offset by an increase in wealth fees.
NONINTEREST EXPENSE
Disciplined expense management.
- Noninterest expense for the fourth quarter of 2023 was $284.2 million and included $19.1 million of FDIC special assessment charges and $9.9 million of merger-related and other charges.
- Excluding these items, adjusted noninterest expense for the fourth quarter was $255.2 million, compared to $238.5 million for the third quarter of 2023; increase was driven by $10 million in higher performance-driven incentive accruals and $5 million in higher amortization of tax credit investments.
- The efficiency ratio1 was 59.0%, while the adjusted efficiency ratio1 was 53.8% for the fourth quarter of 2023 compared to 51.7% and 49.7%, respectively, for the third quarter of 2023.
INCOME TAXES
- Income tax expense in the fourth quarter of 2023 was $36.2 million, resulting in an effective tax rate of 21.5% compared to 23.1% in the third quarter of 2023. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 24.2% in the fourth quarter compared to 25.3% in the third quarter.
- Income tax expense included $6.7 million of tax credit benefit.
CAPITAL
Capital ratios remain strong.
- All regulatory capital ratios grew in the quarter with preliminary total risk-based capital up 32 bps to 12.64% and preliminary regulatory Tier 1 capital up 29 bps to 11.35%, driven by retained earnings.
- Tangible common equity to tangible assets was 6.85% at the end of the fourth quarter compared to 6.15% in the third quarter of 2023.
VISA CLASS B RESTRICTED SHARES GAIN
During the fourth quarter of 2023, the Company recognized a $21.6 million pre-tax gain on sale of Visa Class B restricted shares in noninterest income. Prior to the sale, the shares were carried at zero cost basis due to uncertainty surrounding the ability of the Company to transfer or otherwise liquidate the shares. At December 31, 2023, the Company does not hold any remaining Visa Class B restricted shares.
FDIC SPECIAL ASSESSMENT
On November 16, 2023, the FDIC finalized a rule that imposes special assessments to recover the losses to the Deposit Insurance Fund ("DIF") resulting from the FDIC's use, in March 2023, of the systemic risk exception to the least-cost resolution test under the Federal Deposit Insurance Act in connection with the receiverships of Silicon Valley Bank and Signature Bank. The total of the assessments for Old National Bank is estimated at $19.1 million, and such amount was recorded as an expense in the quarter ending December 31, 2023.
RETIREMENT OF MIKE SCUDDER
Mike Scudder will retire as Executive Chairman and as a director of the Company as of January 31, 2024, and Jim Ryan will succeed to the position of Chairman of the Board of Directors, as contemplated by the Bylaws of the Company. Mr. Ryan will continue to serve as Chief Executive Officer of the Company as well as Chairman of the Board and Chief Executive Officer of Old National Bank.
CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, January 23, 2024, to review fourth quarter 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. (888) 300-3045 or International (646) 568-1027, access code 5258325. A replay of the call will also be available from approximately noon Central Time on January 23, 2024 through February 6, 2024. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199, Access code 5258325.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank, which is the sixth largest commercial bank headquartered in the Midwest. With approximately $49 billion of assets and $29 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the U.S. Tracing our roots to 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 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 gain on sale of Visa Class B restricted shares, FDIC special assessment expense, contract termination charges, merger-related charges associated with completed and pending acquisitions, gains/losses on sales of debt securities, expenses related to the tragic April 10 event at our downtown Louisville location ("Louisville expenses"), property optimization charges, gain on sale of health savings accounts and the current expected credit loss ("CECL") Day 1 non-PCD provision expense. 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.
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 FDIC special assessment expense, contract termination charges, merger-related charges, property optimization charges, Louisville expenses, as well as adjusted noninterest income, which excludes the gain on sale of Visa Class B restricted shares, gain on sale of health savings accounts and gains/losses on sales of debt securities. 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 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 (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 SEC, in press releases, and in oral and written statements made by us or with our approval 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 the words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "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, 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 ability to complete, or any delays in completing, the pending merger (the "Merger") between Old National and CapStar Financial Holdings, Inc. ("CapStar"), including the ability of CapStar to obtain the necessary approval by its shareholders, the ability of Old National and CapStar to obtain required governmental approvals of the Merger and the ability to satisfy all of the closing conditions in the definitive merger agreement; the expected cost savings, synergies and other financial benefits from the Merger not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the 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, 2022 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, 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 Schoettlin | Investors: Lynell Durchholz | |
| (812) 465-7269 | (812) 464-1366 | |
| Kathy.Schoettlin@oldnational.com | Lynell.Durchholz@oldnational.com |
| Financial Highlights (unaudited) | ||||||||||||||||||||||
| ($ and shares in thousands, except per share data) | ||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| Income Statement | ||||||||||||||||||||||
| Net interest income | $ | 364,408 | $ | 375,086 | $ | 382,171 | $ | 381,488 | $ | 391,090 | $ | 1,503,153 | $ | 1,327,936 | ||||||||
| FTE adjustment1,2 | 6,100 | 5,837 | 5,825 | 5,666 | 5,378 | 23,428 | 18,414 | |||||||||||||||
| Net interest income - tax equivalent basis3 | 370,508 | 380,923 | 387,996 | 387,154 | 396,468 | 1,526,581 | 1,346,350 | |||||||||||||||
| Provision for credit losses | 11,595 | 19,068 | 14,787 | 13,437 | 11,408 | 58,887 | 144,799 | |||||||||||||||
| Noninterest income | 100,094 | 80,938 | 81,629 | 70,681 | 165,037 | 333,342 | 399,779 | |||||||||||||||
| Noninterest expense3 | 284,235 | 244,776 | 246,584 | 250,711 | 282,675 | 1,026,306 | 1,038,183 | |||||||||||||||
| Net income available to common shareholders | $ | 128,446 | $ | 143,842 | $ | 151,003 | $ | 142,566 | $ | 196,701 | $ | 565,857 | $ | 414,169 | ||||||||
| Per Common Share Data | ||||||||||||||||||||||
| Weighted average diluted shares | 292,029 | 291,717 | 291,266 | 292,756 | 293,131 | 291,855 | 276,688 | |||||||||||||||
| EPS, diluted | $ | 0.44 | $ | 0.49 | $ | 0.52 | $ | 0.49 | $ | 0.67 | $ | 1.94 | $ | 1.50 | ||||||||
| Cash dividends | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.56 | 0.56 | |||||||||||||||
| Dividend payout ratio2 | 32 | % | 29 | % | 27 | % | 29 | % | 21 | % | 29 | % | 37 | % | ||||||||
| Book value | $ | 18.18 | $ | 17.07 | $ | 17.25 | $ | 17.24 | $ | 16.68 | $ | 18.18 | $ | 16.68 | ||||||||
| Stock price | 16.89 | 14.54 | 13.94 | 14.42 | 17.98 | 16.89 | 17.98 | |||||||||||||||
| Tangible book value3 | 11.00 | 9.87 | 10.03 | 9.98 | 9.42 | 11.00 | 9.42 | |||||||||||||||
| Performance Ratios | ||||||||||||||||||||||
| ROAA | 1.09 | % | 1.22 | % | 1.29 | % | 1.25 | % | 1.74 | % | 1.21 | % | 0.99 | % | ||||||||
| ROAE | 10.2 | % | 11.4 | % | 12.0 | % | 11.6 | % | 16.8 | % | 11.3 | % | 8.9 | % | ||||||||
| ROATCE3 | 18.1 | % | 20.2 | % | 21.4 | % | 21.0 | % | 31.5 | % | 20.2 | % | 16.3 | % | ||||||||
| NIM (FTE) | 3.39 | % | 3.49 | % | 3.60 | % | 3.69 | % | 3.85 | % | 3.54 | % | 3.47 | % | ||||||||
| Efficiency ratio3 | 59.0 | % | 51.7 | % | 51.2 | % | 52.8 | % | 49.1 | % | 53.7 | % | 58.0 | % | ||||||||
| NCOs to average loans | 0.12 | % | 0.24 | % | 0.13 | % | 0.21 | % | 0.05 | % | 0.17 | % | 0.06 | % | ||||||||
| ACL on loans to EOP loans | 0.93 | % | 0.93 | % | 0.93 | % | 0.94 | % | 0.98 | % | 0.93 | % | 0.98 | % | ||||||||
| ACL5 to EOP loans | 1.03 | % | 1.03 | % | 1.04 | % | 1.05 | % | 1.08 | % | 1.03 | % | 1.08 | % | ||||||||
| NPLs to EOP loans | 0.83 | % | 0.80 | % | 0.91 | % | 0.74 | % | 0.81 | % | 0.83 | % | 0.81 | % | ||||||||
| Balance Sheet (EOP) | ||||||||||||||||||||||
| Total loans | $ | 32,991,927 | $ | 32,577,834 | $ | 32,432,473 | $ | 31,822,374 | $ | 31,123,641 | $ | 32,991,927 | $ | 31,123,641 | ||||||||
| Total assets | 49,089,836 | 49,059,448 | 48,496,755 | 47,842,644 | 46,763,372 | 49,089,836 | 46,763,372 | |||||||||||||||
| Total deposits | 37,235,180 | 37,252,676 | 36,231,315 | 34,917,792 | 35,000,830 | 37,235,180 | 35,000,830 | |||||||||||||||
| Total borrowed funds | 5,331,147 | 5,556,010 | 6,034,008 | 6,740,454 | 5,586,314 | 5,331,147 | 5,586,314 | |||||||||||||||
| Total shareholders' equity | 5,562,900 | 5,239,537 | 5,292,095 | 5,277,426 | 5,128,595 | 5,562,900 | 5,128,595 | |||||||||||||||
| Capital Ratios | ||||||||||||||||||||||
| Risk-based capital ratios (EOP): | ||||||||||||||||||||||
| Tier 1 common equity | 10.70 | % | 10.41 | % | 10.14 | % | 9.98 | % | 10.03 | % | 10.70 | % | 10.03 | % | ||||||||
| Tier 1 capital | 11.35 | % | 11.06 | % | 10.79 | % | 10.64 | % | 10.71 | % | 11.35 | % | 10.71 | % | ||||||||
| Total capital | 12.64 | % | 12.32 | % | 12.14 | % | 11.96 | % | 12.02 | % | 12.64 | % | 12.02 | % | ||||||||
| Leverage ratio (average assets) | 8.83 | % | 8.70 | % | 8.59 | % | 8.53 | % | 8.52 | % | 8.83 | % | 8.52 | % | ||||||||
| Equity to assets (averages)4 | 10.81 | % | 10.88 | % | 10.96 | % | 11.00 | % | 10.70 | % | 10.91 | % | 11.23 | % | ||||||||
| TCE to TA3 | 6.85 | % | 6.15 | % | 6.33 | % | 6.37 | % | 6.18 | % | 6.85 | % | 6.18 | % | ||||||||
| Nonfinancial Data | ||||||||||||||||||||||
| Full-time equivalent employees | 3,940 | 3,981 | 4,021 | 4,023 | 3,967 | 3,940 | 3,967 | |||||||||||||||
| Banking centers | 258 | 257 | 256 | 256 | 263 | 258 | 263 | |||||||||||||||
| 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. December 31, 2023 capital ratios are preliminary. | ||||||||||||||||||||||
| 4 Includes the allowance for credit losses on loans and unfunded 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 ALL - Allowance for loan losses 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 | Twelve Months Ended | |||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| Interest income | $ | 589,751 | $ | 576,519 | $ | 544,902 | $ | 495,649 | $ | 457,821 | $ | 2,206,821 | $ | 1,454,202 | ||||||||
| Less: interest expense | 225,343 | 201,433 | 162,731 | 114,161 | 66,731 | 703,668 | 126,266 | |||||||||||||||
| Net interest income | 364,408 | 375,086 | 382,171 | 381,488 | 391,090 | 1,503,153 | 1,327,936 | |||||||||||||||
| Provision for credit losses | 11,595 | 19,068 | 14,787 | 13,437 | 11,408 | 58,887 | 144,799 | |||||||||||||||
| Net interest income after provision for credit losses | 352,813 | 356,018 | 367,384 | 368,051 | 379,682 | 1,444,266 | 1,183,137 | |||||||||||||||
| Wealth and investment services fees | 27,656 | 26,687 | 26,521 | 26,920 | 25,668 | 107,784 | 100,851 | |||||||||||||||
| Service charges on deposit accounts | 18,667 | 18,524 | 17,751 | 17,003 | 18,109 | 71,945 | 72,501 | |||||||||||||||
| Debit card and ATM fees | 10,700 | 10,818 | 10,653 | 9,982 | 10,798 | 42,153 | 40,227 | |||||||||||||||
| Mortgage banking revenue | 3,691 | 5,063 | 4,165 | 3,400 | 3,888 | 16,319 | 23,015 | |||||||||||||||
| Capital markets income | 5,416 | 5,891 | 6,173 | 6,939 | 5,377 | 24,419 | 25,986 | |||||||||||||||
| Company-owned life insurance | 3,773 | 3,740 | 4,698 | 3,186 | 3,108 | 15,397 | 14,564 | |||||||||||||||
| Gain on sale of Visa Class B restricted shares | 21,635 | - | - | - | - | 21,635 | - | |||||||||||||||
| Gain on sale of health savings accounts | - | - | - | - | 90,673 | - | 90,673 | |||||||||||||||
| Other income | 9,381 | 10,456 | 11,651 | 8,467 | 7,589 | 39,955 | 32,050 | |||||||||||||||
| Gains (losses) on sales of debt securities | (825 | ) | (241 | ) | 17 | (5,216 | ) | (173 | ) | (6,265 | ) | (88 | ) | |||||||||
| Total noninterest income | 100,094 | 80,938 | 81,629 | 70,681 | 165,037 | 333,342 | 399,779 | |||||||||||||||
| Salaries and employee benefits | 141,649 | 131,541 | 135,810 | 137,364 | 142,459 | 546,364 | 575,626 | |||||||||||||||
| Occupancy | 26,514 | 25,795 | 26,085 | 28,282 | 26,488 | 106,676 | 100,421 | |||||||||||||||
| Equipment | 8,769 | 8,284 | 7,721 | 7,389 | 7,591 | 32,163 | 27,637 | |||||||||||||||
| Marketing | 10,813 | 9,448 | 9,833 | 9,417 | 8,508 | 39,511 | 32,264 | |||||||||||||||
| Technology | 20,493 | 20,592 | 20,056 | 19,202 | 19,951 | 80,343 | 84,865 | |||||||||||||||
| Communication | 4,212 | 4,075 | 4,232 | 4,461 | 4,159 | 16,980 | 18,846 | |||||||||||||||
| Professional fees | 8,250 | 5,956 | 6,397 | 6,732 | 6,360 | 27,335 | 39,046 | |||||||||||||||
| FDIC assessment | 27,702 | 9,000 | 9,624 | 10,404 | 5,809 | 56,730 | 19,332 | |||||||||||||||
| Amortization of intangibles | 5,869 | 6,040 | 6,060 | 6,186 | 6,787 | 24,155 | 25,857 | |||||||||||||||
| Amortization of tax credit investments | 7,200 | 2,644 | 2,762 | 2,761 | 5,258 | 15,367 | 10,961 | |||||||||||||||
| Property optimization | - | - | 242 | 1,317 | 26,818 | 1,559 | 26,818 | |||||||||||||||
| Other expense | 22,764 | 21,401 | 17,762 | 17,196 | 22,487 | 79,123 | 76,510 | |||||||||||||||
| Total noninterest expense | 284,235 | 244,776 | 246,584 | 250,711 | 282,675 | 1,026,306 | 1,038,183 | |||||||||||||||
| Income before income taxes | 168,672 | 192,180 | 202,429 | 188,021 | 262,044 | 751,302 | 544,733 | |||||||||||||||
| Income tax expense | 36,192 | 44,304 | 47,393 | 41,421 | 61,309 | 169,310 | 116,446 | |||||||||||||||
| Net income | $ | 132,480 | $ | 147,876 | $ | 155,036 | $ | 146,600 | $ | 200,735 | $ | 581,992 | $ | 428,287 | ||||||||
| Preferred dividends | (4,034 | ) | (4,034 | ) | (4,033 | ) | (4,034 | ) | (4,034 | ) | (16,135 | ) | (14,118 | ) | ||||||||
| Net income applicable to common shares | $ | 128,446 | $ | 143,842 | $ | 151,003 | $ | 142,566 | $ | 196,701 | $ | 565,857 | $ | 414,169 | ||||||||
| EPS, diluted | $ | 0.44 | $ | 0.49 | $ | 0.52 | $ | 0.49 | $ | 0.67 | $ | 1.94 | $ | 1.50 | ||||||||
| Weighted Average Common Shares Outstanding | ||||||||||||||||||||||
| Basic | 290,701 | 290,648 | 290,559 | 291,088 | 291,012 | 290,748 | 275,179 | |||||||||||||||
| Diluted | 292,029 | 291,717 | 291,266 | 292,756 | 293,131 | 291,855 | 276,688 | |||||||||||||||
| Common shares outstanding (EOP) | 292,655 | 292,586 | 292,597 | 291,922 | 292,903 | 292,655 | 292,903 | |||||||||||||||
| End of Period Balance Sheet (unaudited) | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 430,866 | $ | 381,343 | $ | 473,023 | $ | 386,879 | $ | 453,432 | |||||
| Money market and other interest-earnings investments | 744,192 | 1,282,087 | 724,863 | 727,056 | 274,980 | ||||||||||
| Investments: | |||||||||||||||
| Treasury and government-sponsored agencies | 2,453,949 | 2,515,249 | 2,309,285 | 2,236,412 | 2,195,175 | ||||||||||
| Mortgage-backed securities | 5,245,691 | 4,906,290 | 5,168,458 | 5,395,680 | 5,476,719 | ||||||||||
| States and political subdivisions | 1,693,819 | 1,705,200 | 1,760,725 | 1,785,073 | 1,827,164 | ||||||||||
| Other securities | 779,049 | 751,404 | 802,323 | 826,575 | 730,476 | ||||||||||
| Total investments | 10,172,508 | 9,878,143 | 10,040,791 | 10,243,740 | 10,229,534 | ||||||||||
| Loans held-for-sale, at fair value | 32,006 | 122,033 | 114,369 | 10,584 | 11,926 | ||||||||||
| Loans: | |||||||||||||||
| Commercial | 9,512,230 | 9,333,448 | 9,698,241 | 9,751,875 | 9,508,904 | ||||||||||
| Commercial and agriculture real estate | 14,140,629 | 13,916,221 | 13,450,209 | 12,908,380 | 12,457,070 | ||||||||||
| Residential real estate | 6,699,443 | 6,696,288 | 6,684,480 | 6,568,666 | 6,460,441 | ||||||||||
| Consumer | 2,639,625 | 2,631,877 | 2,599,543 | 2,593,453 | 2,697,226 | ||||||||||
| Total loans | 32,991,927 | 32,577,834 | 32,432,473 | 31,822,374 | 31,123,641 | ||||||||||
| Allowance for credit losses on loans | (307,610 | ) | (303,982 | ) | (300,555 | ) | (298,711 | ) | (303,671 | ) | |||||
| Premises and equipment, net | 565,396 | 565,607 | 564,299 | 566,758 | 557,307 | ||||||||||
| Goodwill and other intangible assets | 2,100,966 | 2,106,835 | 2,112,875 | 2,118,935 | 2,125,121 | ||||||||||
| Company-owned life insurance | 767,902 | 774,517 | 771,753 | 770,471 | 768,552 | ||||||||||
| Accrued interest receivable and other assets | 1,591,683 | 1,675,031 | 1,562,864 | 1,494,558 | 1,522,550 | ||||||||||
| Total assets | $ | 49,089,836 | $ | 49,059,448 | $ | 48,496,755 | $ | 47,842,644 | $ | 46,763,372 | |||||
| Liabilities and Equity | |||||||||||||||
| Noninterest-bearing demand deposits | $ | 9,664,247 | $ | 10,091,352 | $ | 10,532,838 | $ | 10,995,083 | $ | 11,930,798 | |||||
| Interest-bearing: | |||||||||||||||
| Checking and NOW accounts | 7,331,487 | 7,495,417 | 7,654,202 | 7,903,520 | 8,340,955 | ||||||||||
| Savings accounts | 5,099,186 | 5,296,985 | 5,578,323 | 6,030,255 | 6,326,158 | ||||||||||
| Money market accounts | 9,561,116 | 8,793,218 | 7,200,288 | 5,867,239 | 5,389,139 | ||||||||||
| Other time deposits | 4,565,137 | 4,398,182 | 4,012,813 | 3,361,979 | 2,775,991 | ||||||||||
| Total core deposits | 36,221,173 | 36,075,154 | 34,978,464 | 34,158,076 | 34,763,041 | ||||||||||
| Brokered deposits | 1,014,007 | 1,177,522 | 1,252,851 | 759,716 | 237,789 | ||||||||||
| Total deposits | 37,235,180 | 37,252,676 | 36,231,315 | 34,917,792 | 35,000,830 | ||||||||||
| Federal funds purchased and interbank borrowings | 390 | 918 | 136,060 | 618,955 | 581,489 | ||||||||||
| Securities sold under agreements to repurchase | 285,206 | 279,061 | 311,447 | 393,018 | 432,804 | ||||||||||
| Federal Home Loan Bank advances | 4,280,681 | 4,412,576 | 4,771,183 | 4,981,612 | 3,829,018 | ||||||||||
| Other borrowings | 764,870 | 863,455 | 815,318 | 746,869 | 743,003 | ||||||||||
| Total borrowed funds | 5,331,147 | 5,556,010 | 6,034,008 | 6,740,454 | 5,586,314 | ||||||||||
| Accrued expenses and other liabilities | 960,609 | 1,011,225 | 939,337 | 906,972 | 1,047,633 | ||||||||||
| Total liabilities | 43,526,936 | 43,819,911 | 43,204,660 | 42,565,218 | 41,634,777 | ||||||||||
| Preferred stock, common stock, surplus, and retained earnings | 6,301,709 | 6,208,352 | 6,100,728 | 5,985,784 | 5,915,017 | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | (738,809 | ) | (968,815 | ) | (808,633 | ) | (708,358 | ) | (786,422 | ) | |||||
| Total shareholders' equity | 5,562,900 | 5,239,537 | 5,292,095 | 5,277,426 | 5,128,595 | ||||||||||
| Total liabilities and shareholders' equity | $ | 49,089,836 | $ | 49,059,448 | $ | 48,496,755 | $ | 47,842,644 | $ | 46,763,372 | |||||
| Average Balance Sheet and Interest Rates (unaudited) | |||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
| Average | Income1/ | Yield/ | Average | Income1/ | Yield/ | Average | Income1/ | Yield/ | |||||||||||||||||||
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
| Money market and other interest-earning investments | $ | 1,094,196 | $ | 14,425 | 5.23 | % | $ | 980,813 | $ | 13,194 | 5.34 | % | $ | 324,801 | $ | (259 | ) | (0.32 | )% | ||||||||
| Investments: | |||||||||||||||||||||||||||
| Treasury and government-sponsored agencies | 2,490,793 | 25,848 | 4.15 | % | 2,376,864 | 23,037 | 3.88 | % | 2,151,746 | 14,683 | 2.73 | % | |||||||||||||||
| Mortgage-backed securities | 4,913,151 | 34,209 | 2.79 | % | 5,079,091 | 33,237 | 2.62 | % | 5,470,753 | 35,344 | 2.58 | % | |||||||||||||||
| States and political subdivisions | 1,686,119 | 14,541 | 3.45 | % | 1,737,037 | 14,220 | 3.27 | % | 1,818,431 | 14,849 | 3.27 | % | |||||||||||||||
| Other securities | 749,697 | 10,440 | 5.57 | % | 793,196 | 10,127 | 5.11 | % | 702,730 | 7,741 | 4.41 | % | |||||||||||||||
| Total investments | 9,839,760 | 85,038 | 3.46 | % | 9,986,188 | 80,621 | 3.23 | % | 10,143,660 | 72,617 | 2.86 | % | |||||||||||||||
| Loans:2 | |||||||||||||||||||||||||||
| Commercial | 9,351,344 | 163,921 | 7.01 | % | 9,612,102 | 163,869 | 6.82 | % | 9,330,906 | 132,711 | 5.69 | % | |||||||||||||||
| Commercial and agriculture real estate | 14,074,908 | 226,716 | 6.44 | % | 13,711,156 | 219,575 | 6.41 | % | 12,317,057 | 161,766 | 5.25 | % | |||||||||||||||
| Residential real estate loans | 6,706,425 | 62,054 | 3.70 | % | 6,712,269 | 62,775 | 3.74 | % | 6,373,819 | 59,532 | 3.74 | % | |||||||||||||||
| Consumer | 2,634,650 | 43,697 | 6.58 | % | 2,614,928 | 42,322 | 6.42 | % | 2,716,452 | 36,832 | 5.38 | % | |||||||||||||||
| Total loans | 32,767,327 | 496,388 | 6.06 | % | 32,650,455 | 488,541 | 5.98 | % | 30,738,234 | 390,841 | 5.08 | % | |||||||||||||||
| Total earning assets | $ | 43,701,283 | $ | 595,851 | 5.45 | % | $ | 43,617,456 | $ | 582,356 | 5.34 | % | $ | 41,206,695 | $ | 463,199 | 4.49 | % | |||||||||
| Less: Allowance for credit losses on loans | (304,195 | ) | (300,071 | ) | (303,009 | ) | |||||||||||||||||||||
| Non-earning Assets: | |||||||||||||||||||||||||||
| Cash and due from banks | $ | 415,266 | $ | 382,755 | $ | 368,874 | |||||||||||||||||||||
| Other assets | 5,027,892 | 4,960,383 | 4,861,247 | ||||||||||||||||||||||||
| Total assets | $ | 48,840,246 | $ | 48,660,523 | $ | 46,133,807 | |||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||
| Checking and NOW accounts | $ | 7,280,268 | $ | 25,015 | 1.36 | % | $ | 7,515,439 | $ | 25,531 | 1.35 | % | $ | 8,482,651 | $ | 13,189 | 0.62 | % | |||||||||
| Savings accounts | 5,184,712 | 5,196 | 0.40 | % | 5,414,775 | 4,268 | 0.31 | % | 6,482,369 | 1,558 | 0.10 | % | |||||||||||||||
| Money market accounts | 9,244,117 | 85,717 | 3.68 | % | 7,979,999 | 65,549 | 3.26 | % | 5,382,254 | 8,091 | 0.60 | % | |||||||||||||||
| Other time deposits | 4,516,432 | 44,396 | 3.90 | % | 4,229,692 | 37,110 | 3.48 | % | 2,540,619 | 5,688 | 0.89 | % | |||||||||||||||
| Total interest-bearing core deposits | 26,225,529 | 160,324 | 2.43 | % | 25,139,905 | 132,458 | 2.09 | % | 22,887,893 | 28,526 | 0.49 | % | |||||||||||||||
| Brokered deposits | 1,012,647 | 13,041 | 5.11 | % | 1,183,228 | 14,970 | 5.02 | % | 129,745 | 1,366 | 4.18 | % | |||||||||||||||
| Total interest-bearing deposits | 27,238,176 | 173,365 | 2.53 | % | 26,323,133 | 147,428 | 2.22 | % | 23,017,638 | 29,892 | 0.52 | % | |||||||||||||||
| Federal funds purchased and interbank borrowings | 620 | 8 | 5.12 | % | 62,921 | 910 | 5.74 | % | 475,431 | 4,299 | 3.59 | % | |||||||||||||||
| Securities sold under agreements to repurchase | 277,927 | 910 | 1.30 | % | 302,305 | 710 | 0.93 | % | 409,916 | 556 | 0.54 | % | |||||||||||||||
| Federal Home Loan Bank advances | 4,182,877 | 38,394 | 3.64 | % | 4,537,250 | 40,382 | 3.53 | % | 3,266,896 | 25,609 | 3.11 | % | |||||||||||||||
| Other borrowings | 869,644 | 12,666 | 5.78 | % | 841,307 | 12,003 | 5.66 | % | 753,401 | 6,375 | 3.36 | % | |||||||||||||||
| Total borrowed funds | 5,331,068 | 51,978 | 3.87 | % | 5,743,783 | 54,005 | 3.73 | % | 4,905,644 | 36,839 | 2.98 | % | |||||||||||||||
| Total interest-bearing liabilities | $ | 32,569,244 | $ | 225,343 | 2.74 | % | $ | 32,066,916 | $ | 201,433 | 2.49 | % | $ | 27,923,282 | $ | 66,731 | 0.95 | % | |||||||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||
| Demand deposits | $ | 9,949,616 | $ | 10,338,267 | $ | 12,373,495 | |||||||||||||||||||||
| Other liabilities | 1,039,899 | 961,268 | 900,448 | ||||||||||||||||||||||||
| Shareholders' equity | 5,281,487 | 5,294,072 | 4,936,582 | ||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 48,840,246 | $ | 48,660,523 | $ | 46,133,807 | |||||||||||||||||||||
| Net interest rate spread | 2.71 | % | 2.85 | % | 3.54 | % | |||||||||||||||||||||
| Net interest margin (GAAP) | 3.34 | % | 3.44 | % | 3.80 | % | |||||||||||||||||||||
| Net interest margin (FTE)3 | 3.39 | % | 3.49 | % | 3.85 | % | |||||||||||||||||||||
| FTE adjustment | $ | 6,100 | $ | 5,837 | $ | 5,378 | |||||||||||||||||||||
| 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. | |||||||||||||||||||||||||||
| Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||
| Twelve Months Ended | Twelve Months Ended | |||||||||||||||||
| December 31, 2023 | December 31, 2022 | |||||||||||||||||
| Average | Income1/ | Yield/ | Average | Income1/ | Yield/ | |||||||||||||
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
| Money market and other interest-earning investments | $ | 826,453 | $ | 39,683 | 4.80 | % | $ | 812,296 | $ | 2,814 | 0.35 | % | ||||||
| Investments: | ||||||||||||||||||
| Treasury and government-sponsored agencies | 2,322,792 | 84,771 | 3.65 | % | 2,290,229 | 47,932 | 2.09 | % | ||||||||||
| Mortgage-backed securities | 5,178,940 | 136,827 | 2.64 | % | 5,562,442 | 129,411 | 2.33 | % | ||||||||||
| States and political subdivisions | 1,749,722 | 57,847 | 3.31 | % | 1,805,433 | 57,688 | 3.20 | % | ||||||||||
| Other securities | 776,456 | 39,166 | 5.04 | % | 687,926 | 24,133 | 3.51 | % | ||||||||||
| Total investments | $ | 10,027,910 | $ | 318,611 | 3.18 | % | $ | 10,346,030 | $ | 259,164 | 2.50 | % | ||||||
| Loans:2 | ||||||||||||||||||
| Commercial | 9,570,639 | 639,131 | 6.68 | % | 8,252,237 | 397,228 | 4.81 | % | ||||||||||
| Commercial and agriculture real estate | 13,405,946 | 825,053 | 6.15 | % | 11,147,967 | 489,499 | 4.39 | % | ||||||||||
| Residential real estate loans | 6,646,684 | 243,646 | 3.67 | % | 5,622,901 | 201,637 | 3.59 | % | ||||||||||
| Consumer | 2,618,098 | 164,125 | 6.27 | % | 2,570,355 | 122,274 | 4.76 | % | ||||||||||
| Total loans | 32,241,367 | 1,871,955 | 5.81 | % | 27,593,460 | 1,210,638 | 4.39 | % | ||||||||||
| Total earning assets | $ | 43,095,730 | $ | 2,230,249 | 5.18 | % | $ | 38,751,786 | $ | 1,472,616 | 3.80 | % | ||||||
| Less: Allowance for credit losses on loans | (302,486 | ) | (261,534 | ) | ||||||||||||||
| Non-earning Assets: | ||||||||||||||||||
| Cash and due from banks | $ | 413,569 | $ | 355,391 | ||||||||||||||
| Other assets | 4,945,394 | 4,404,057 | ||||||||||||||||
| Total assets | $ | 48,152,207 | $ | 43,249,700 | ||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||
| Checking and NOW accounts | $ | 7,664,183 | $ | 94,263 | 1.23 | % | $ | 8,104,844 | $ | 21,321 | 0.26 | % | ||||||
| Savings accounts | 5,638,766 | 14,941 | 0.26 | % | 6,342,697 | 3,367 | 0.05 | % | ||||||||||
| Money market accounts | 7,249,497 | 206,634 | 2.85 | % | 4,961,159 | 11,882 | 0.24 | % | ||||||||||
| Other time deposits | 3,875,984 | 123,428 | 3.18 | % | 2,312,935 | 10,801 | 0.47 | % | ||||||||||
| Total interest-bearing core deposits | 24,428,430 | 439,266 | 1.80 | % | 21,721,635 | 47,371 | 0.22 | % | ||||||||||
| Brokered deposits | 913,349 | 45,094 | 4.94 | % | 45,796 | 1,722 | 3.76 | % | ||||||||||
| Total interest-bearing deposits | 25,341,779 | 484,360 | 1.91 | % | 21,767,431 | 49,093 | 0.23 | % | ||||||||||
| Federal funds purchased and interbank borrowings | 229,386 | 11,412 | 4.98 | % | 151,243 | 5,021 | 3.32 | % | ||||||||||
| Securities sold under agreements to repurchase | 332,853 | 3,299 | 0.99 | % | 440,619 | 843 | 0.19 | % | ||||||||||
| Federal Home Loan Bank advances | 4,568,964 | 161,860 | 3.54 | % | 2,986,006 | 51,524 | 1.73 | % | ||||||||||
| Other borrowings | 822,471 | 42,737 | 5.20 | % | 619,659 | 19,785 | 3.19 | % | ||||||||||
| Total borrowed funds | 5,953,674 | 219,308 | 3.68 | % | 4,197,527 | 77,173 | 1.84 | % | ||||||||||
| Total interest-bearing liabilities | 31,295,453 | 703,668 | 2.25 | % | 25,964,958 | 126,266 | 0.49 | % | ||||||||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | ||||||||||||||||||
| Demand deposits | $ | 10,633,806 | $ | 11,750,306 | ||||||||||||||
| Other liabilities | 968,635 | 676,940 | ||||||||||||||||
| Shareholders' equity | 5,254,313 | 4,857,496 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 48,152,207 | $ | 43,249,700 | ||||||||||||||
| Net interest rate spread | 2.93 | % | 3.31 | % | ||||||||||||||
| Net interest margin (GAAP) | 3.49 | % | 3.43 | % | ||||||||||||||
| Net interest margin (FTE)3 | 3.54 | % | 3.47 | % | ||||||||||||||
| FTE adjustment | $ | 23,428 | $ | 18,414 | ||||||||||||||
| 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 | Twelve Months Ended | |||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| Allowance for credit losses: | ||||||||||||||||||||||
| Beginning allowance for credit losses on loans | $ | 303,982 | $ | 300,555 | $ | 298,711 | $ | 303,671 | $ | 302,254 | $ | 303,671 | $ | 107,341 | ||||||||
| Allowance established for acquired PCD loans | - | - | - | - | - | - | 89,089 | |||||||||||||||
| Provision for credit losses on loans | 13,329 | 23,115 | 11,936 | 11,469 | 5,389 | 59,849 | 123,340 | |||||||||||||||
| Gross charge-offs | (13,202 | ) | (22,750 | ) | (14,331 | ) | (18,180 | ) | (7,081 | ) | (68,463 | ) | (27,281 | ) | ||||||||
| Gross recoveries | 3,501 | 3,062 | 4,239 | 1,751 | 3,109 | 12,553 | 11,182 | |||||||||||||||
| NCOs | (9,701 | ) | (19,688 | ) | (10,092 | ) | (16,429 | ) | (3,972 | ) | (55,910 | ) | (16,099 | ) | ||||||||
| Ending allowance for credit losses on loans | $ | 307,610 | $ | 303,982 | $ | 300,555 | $ | 298,711 | $ | 303,671 | $ | 307,610 | $ | 303,671 | ||||||||
| Beginning allowance for credit losses on unfunded commitments | $ | 32,960 | $ | 37,007 | $ | 34,156 | $ | 32,188 | $ | 26,169 | $ | 32,188 | $ | 10,879 | ||||||||
| Provision (release) for credit losses on unfunded commitments | (1,734 | ) | (4,047 | ) | 2,851 | 1,968 | 6,019 | (962 | ) | 21,309 | ||||||||||||
| Ending allowance for credit losses on unfunded commitments | $ | 31,226 | $ | 32,960 | $ | 37,007 | $ | 34,156 | $ | 32,188 | $ | 31,226 | $ | 32,188 | ||||||||
| Allowance for credit losses | $ | 338,836 | $ | 336,942 | $ | 337,562 | $ | 332,867 | $ | 335,859 | $ | 338,836 | $ | 335,859 | ||||||||
| Provision for credit losses on loans | $ | 13,329 | $ | 23,115 | $ | 11,936 | $ | 11,469 | $ | 5,389 | $ | 59,849 | $ | 123,340 | ||||||||
| Provision (release) for credit losses on unfunded commitments1 | (1,734 | ) | (4,047 | ) | 2,851 | 1,968 | 6,019 | (962 | ) | 21,309 | ||||||||||||
| Provision for credit losses1 | $ | 11,595 | $ | 19,068 | $ | 14,787 | $ | 13,437 | $ | 11,408 | $ | 58,887 | $ | 144,649 | ||||||||
| NCOs / average loans2 | 0.12 | % | 0.24 | % | 0.13 | % | 0.21 | % | 0.05 | % | 0.17 | % | 0.06 | % | ||||||||
| Average loans2 | $ | 32,752,406 | $ | 32,639,812 | $ | 32,251,242 | $ | 31,267,836 | $ | 30,732,473 | $ | 32,233,020 | $ | 27,582,530 | ||||||||
| EOP loans2 | 32,991,927 | 32,577,834 | 32,432,473 | 31,822,374 | 31,123,641 | 32,991,927 | 31,123,641 | |||||||||||||||
| ACL on loans / EOP loans2 | 0.93 | % | 0.93 | % | 0.93 | % | 0.94 | % | 0.98 | % | 0.93 | % | 0.98 | % | ||||||||
| ACL / EOP loans2 | 1.03 | % | 1.03 | % | 1.04 | % | 1.05 | % | 1.08 | % | 1.03 | % | 1.08 | % | ||||||||
| Underperforming Assets: | ||||||||||||||||||||||
| Loans 90 days and over (still accruing) | $ | 961 | $ | 1,192 | $ | 303 | $ | 1,231 | $ | 2,650 | $ | 961 | $ | 2,650 | ||||||||
| NPLs: | ||||||||||||||||||||||
| Nonaccrual loans3,4 | 274,821 | 261,346 | 295,509 | 234,337 | 238,178 | 274,821 | 238,178 | |||||||||||||||
| TDRs still accruing4 | N/A | N/A | N/A | N/A | 15,313 | N/A | 15,313 | |||||||||||||||
| Total NPLs | 274,821 | 261,346 | 295,509 | 234,337 | 253,491 | 274,821 | 253,491 | |||||||||||||||
| Foreclosed assets | 9,434 | 9,761 | 9,824 | 10,817 | 10,845 | 9,434 | 10,845 | |||||||||||||||
| Total underperforming assets | $ | 285,216 | $ | 272,299 | $ | 305,636 | $ | 246,385 | $ | 266,986 | $ | 285,216 | $ | 266,986 | ||||||||
| Classified and Criticized Assets: | ||||||||||||||||||||||
| Nonaccrual loans3 | $ | 274,821 | $ | 261,346 | $ | 295,509 | $ | 234,337 | $ | 238,178 | $ | 274,821 | $ | 238,178 | ||||||||
| Substandard loans (still accruing) | 599,358 | 563,427 | 524,709 | 570,229 | 504,657 | 599,358 | 504,657 | |||||||||||||||
| Loans 90 days and over (still accruing) | 961 | 1,192 | 303 | 1,231 | 2,650 | 961 | 2,650 | |||||||||||||||
| Total classified loans - "problem loans" | 875,140 | 825,965 | 820,521 | 805,797 | 745,485 | 875,140 | 745,485 | |||||||||||||||
| Other classified assets | 48,930 | 48,998 | 40,942 | 26,441 | 24,735 | 48,930 | 24,735 | |||||||||||||||
| Criticized loans - "special mention loans" | 843,920 | 775,526 | 614,547 | 593,307 | 636,069 | 843,920 | 636,069 | |||||||||||||||
| Total classified and criticized assets | $ | 1,767,990 | $ | 1,650,489 | $ | 1,476,010 | $ | 1,425,545 | $ | 1,406,289 | $ | 1,767,990 | $ | 1,406,289 | ||||||||
| Loans 30-89 days past due | $ | 71,868 | $ | 56,772 | $ | 39,748 | $ | 42,071 | $ | 55,522 | $ | 71,868 | $ | 55,522 | ||||||||
| NPLs / EOP loans2 | 0.83 | % | 0.80 | % | 0.91 | % | 0.74 | % | 0.81 | % | 0.83 | % | 0.81 | % | ||||||||
| ACL to NPLs | 123 | % | 129 | % | 114 | % | 142 | % | 132 | % | 123 | % | 132 | % | ||||||||
| Under-performing assets/EOP loans2 | 0.86 | % | 0.84 | % | 0.94 | % | 0.77 | % | 0.86 | % | 0.86 | % | 0.86 | % | ||||||||
| Under-performing assets/EOP assets | 0.58 | % | 0.56 | % | 0.63 | % | 0.51 | % | 0.57 | % | 0.58 | % | 0.57 | % | ||||||||
| 30+ day delinquencies/EOP loans2 | 0.22 | % | 0.18 | % | 0.12 | % | 0.14 | % | 0.19 | % | 0.22 | % | 0.19 | % | ||||||||
| 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 $24.0 million at December 31, 2022. | ||||||||||||||||||||||
| 4 As a result of accounting guidance adopted in 2023, the TDR classification is no longer applicable subsequent to December 31, 2022. | ||||||||||||||||||||||
| PCD - Purchased credit deteriorated TDR - Troubled debt restructuring | ||||||||||||||||||||||
| Non-GAAP Measures (unaudited) | ||||||||||||||||||||||
| ($ and shares in thousands, except per share data) | ||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| Earnings Per Share: | ||||||||||||||||||||||
| Net income applicable to common shares | $ | 128,446 | $ | 143,842 | $ | 151,003 | $ | 142,566 | $ | 196,701 | $ | 565,857 | $ | 414,169 | ||||||||
| Adjustments: | ||||||||||||||||||||||
| Gain on sale of Visa Class B restricted shares | (21,635 | ) | - | - | - | - | (21,635 | ) | - | |||||||||||||
| Tax effect1 | 5,255 | - | - | - | - | 5,255 | - | |||||||||||||||
| Gain on sale of Visa Class B restricted shares, net | (16,380 | ) | - | - | - | - | (16,380 | ) | - | |||||||||||||
| FDIC special assessment | 19,052 | - | - | - | - | 19,052 | - | |||||||||||||||
| Tax effect1 | (4,628 | ) | - | - | - | - | (4,628 | ) | - | |||||||||||||
| FDIC special assessment, net | 14,424 | - | - | - | - | 14,424 | - | |||||||||||||||
| Merger-related charges2 | 5,529 | 6,257 | 2,372 | 14,558 | 20,314 | 28,716 | 131,941 | |||||||||||||||
| Tax effect1 | (1,343 | ) | (1,042 | ) | (277 | ) | (3,172 | ) | (5,160 | ) | (5,834 | ) | (36,280 | ) | ||||||||
| Merger-related charges, net | 4,186 | 5,215 | 2,095 | 11,386 | 15,154 | 22,882 | 95,661 | |||||||||||||||
| Contract termination charge | 4,413 | - | - | - | - | 4,413 | - | |||||||||||||||
| Tax effect1 | (1,072 | ) | - | - | - | - | (1,072 | ) | - | |||||||||||||
| Contract termination charge, net | 3,341 | - | - | - | - | 3,341 | - | |||||||||||||||
| Debt Securities (gains) losses | 825 | 241 | (17 | ) | 5,216 | 173 | 6,265 | 88 | ||||||||||||||
| Tax effect1 | (200 | ) | (40 | ) | 2 | (1,137 | ) | (44 | ) | (1,375 | ) | (76 | ) | |||||||||
| Debt securities (gains) losses, net | 625 | 201 | (15 | ) | 4,079 | 129 | 4,890 | 12 | ||||||||||||||
| Louisville expenses | - | - | 3,361 | - | - | 3,361 | - | |||||||||||||||
| Tax effect1 | - | - | (392 | ) | - | - | (392 | ) | - | |||||||||||||
| Louisville expenses, net | - | - | 2,969 | - | - | 2,969 | - | |||||||||||||||
| Property optimization charges | - | - | 242 | 1,317 | 26,818 | 1,559 | 26,818 | |||||||||||||||
| Tax effect1 | - | - | (28 | ) | (287 | ) | (6,812 | ) | (315 | ) | (6,812 | ) | ||||||||||
| Property optimization charges, net | - | - | 214 | 1,030 | 20,006 | 1,244 | 20,006 | |||||||||||||||
| Gain on sale of health savings accounts | - | - | - | - | (90,673 | ) | - | (90,673 | ) | |||||||||||||
| Tax effect1 | - | - | - | - | 23,031 | - | 23,031 | |||||||||||||||
| Gain on sale of health savings accounts, net | - | - | - | - | (67,642 | ) | - | (67,642 | ) | |||||||||||||
| Day 1 non-PCD | - | - | - | - | - | - | 96,270 | |||||||||||||||
| Tax effect1 | - | - | - | - | - | - | (17,550 | ) | ||||||||||||||
| Day 1 non-PCD, net | - | - | - | - | - | - | 78,720 | |||||||||||||||
| Total adjustments, net | 6,196 | 5,416 | 5,263 | 16,495 | (32,353 | ) | 33,370 | 126,757 | ||||||||||||||
| Net income applicable to common shares, adjusted | $ | 134,642 | $ | 149,258 | $ | 156,266 | $ | 159,061 | $ | 164,348 | $ | 599,227 | $ | 540,926 | ||||||||
| Weighted average diluted common shares outstanding | 292,029 | 291,717 | 291,266 | 292,756 | 293,131 | 291,855 | 276,688 | |||||||||||||||
| EPS, diluted | $ | 0.44 | $ | 0.49 | $ | 0.52 | $ | 0.49 | $ | 0.67 | $ | 1.94 | $ | 1.50 | ||||||||
| Adjusted EPS, diluted | $ | 0.46 | $ | 0.51 | $ | 0.54 | $ | 0.54 | $ | 0.56 | $ | 2.05 | $ | 1.96 | ||||||||
| NIM: | ||||||||||||||||||||||
| Net interest income | $ | 364,408 | $ | 375,086 | $ | 382,171 | $ | 381,488 | $ | 391,090 | $ | 1,503,153 | $ | 1,327,936 | ||||||||
| Add: FTE adjustment3 | 6,100 | 5,837 | 5,825 | 5,666 | 5,378 | 23,428 | 18,414 | |||||||||||||||
| Net interest income (FTE) | $ | 370,508 | $ | 380,923 | $ | 387,996 | $ | 387,154 | $ | 396,468 | $ | 1,526,581 | $ | 1,346,350 | ||||||||
| Average earning assets | $ | 43,701,283 | $ | 43,617,456 | $ | 43,097,198 | $ | 41,941,913 | $ | 41,206,695 | $ | 43,095,730 | $ | 38,751,786 | ||||||||
| NIM (GAAP) | 3.34 | % | 3.44 | % | 3.55 | % | 3.64 | % | 3.80 | % | 3.49 | % | 3.43 | % | ||||||||
| NIM (FTE) | 3.39 | % | 3.49 | % | 3.60 | % | 3.69 | % | 3.85 | % | 3.54 | % | 3.47 | % | ||||||||
| Refer to last page of Non-GAAP reconciliations for footnotes. | ||||||||||||||||||||||
| Non-GAAP Measures (unaudited) | ||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| PPNR: | ||||||||||||||||||||||
| Net interest income (FTE)3 | $ | 370,508 | $ | 380,923 | $ | 387,996 | $ | 387,154 | $ | 396,468 | $ | 1,526,581 | $ | 1,346,350 | ||||||||
| Add: Noninterest income | 100,094 | 80,938 | 81,629 | 70,681 | 165,037 | 333,342 | 399,779 | |||||||||||||||
| Total revenue (FTE) | 470,602 | 461,861 | 469,625 | 457,835 | 561,505 | 1,859,923 | 1,746,129 | |||||||||||||||
| Less: Noninterest expense | (284,235 | ) | (244,776 | ) | (246,584 | ) | (250,711 | ) | (282,675 | ) | (1,026,306 | ) | (1,038,183 | ) | ||||||||
| PPNR | $ | 186,367 | $ | 217,085 | $ | 223,041 | $ | 207,124 | $ | 278,830 | $ | 833,617 | $ | 707,946 | ||||||||
| Adjustments: | ||||||||||||||||||||||
| Gain on sale of Visa Class B restricted shares | $ | (21,635 | ) | $ | - | $ | - | $ | - | $ | - | $ | (21,635 | ) | $ | - | ||||||
| Debt securities (gains) losses | 825 | 241 | (17 | ) | 5,216 | 173 | 6,265 | 88 | ||||||||||||||
| Gain on sale of health savings accounts | - | - | - | - | (90,673 | ) | - | (90,673 | ) | |||||||||||||
| Noninterest income adjustments | (20,810 | ) | 241 | (17 | ) | 5,216 | (90,500 | ) | (15,370 | ) | (90,585 | ) | ||||||||||
| Adjusted noninterest income | 79,284 | 81,179 | 81,612 | 75,897 | 74,537 | 317,972 | 309,194 | |||||||||||||||
| Adjusted revenue | $ | 449,792 | $ | 462,102 | $ | 469,608 | $ | 463,051 | $ | 471,005 | $ | 1,844,553 | $ | 1,655,544 | ||||||||
| Adjustments: | ||||||||||||||||||||||
| FDIC Special Assessment | $ | 19,052 | $ | - | $ | - | $ | - | $ | - | $ | 19,052 | $ | - | ||||||||
| Merger-related charges4 | 5,529 | 6,257 | 2,372 | 14,558 | 20,314 | 28,716 | 120,928 | |||||||||||||||
| Contract termination charges | 4,413 | - | - | - | - | 4,413 | - | |||||||||||||||
| Louisville expenses | - | - | 3,361 | - | - | 3,361 | - | |||||||||||||||
| Property optimization charges | - | - | 242 | 1,317 | 26,818 | 1,559 | 26,818 | |||||||||||||||
| Noninterest expense adjustments | 28,994 | 6,257 | 5,975 | 15,875 | 47,132 | 57,101 | 147,746 | |||||||||||||||
| Adjusted total noninterest expense | (255,241 | ) | (238,519 | ) | (240,609 | ) | (234,836 | ) | (235,543 | ) | (969,205 | ) | (890,437 | ) | ||||||||
| Adjusted PPNR | $ | 194,551 | $ | 223,583 | $ | 228,999 | $ | 228,215 | $ | 235,462 | $ | 875,348 | $ | 765,107 | ||||||||
| Efficiency Ratio: | ||||||||||||||||||||||
| Noninterest expense | $ | 284,235 | $ | 244,776 | $ | 246,584 | $ | 250,711 | $ | 282,675 | $ | 1,026,306 | $ | 1,038,183 | ||||||||
| Less: Amortization of intangibles | (5,869 | ) | (6,040 | ) | (6,060 | ) | (6,186 | ) | (6,787 | ) | (24,155 | ) | (25,857 | ) | ||||||||
| Noninterest expense, excl. amortization of intangibles | 278,366 | 238,736 | 240,524 | 244,525 | 275,888 | 1,002,151 | 1,012,326 | |||||||||||||||
| Less: Amortization of tax credit investments | (7,200 | ) | (2,644 | ) | (2,762 | ) | (2,761 | ) | (5,258 | ) | (15,367 | ) | (10,961 | ) | ||||||||
| Less: Noninterest expense adjustments | (28,994 | ) | (6,257 | ) | (5,975 | ) | (15,875 | ) | (47,132 | ) | (57,101 | ) | (147,746 | ) | ||||||||
| Adjusted noninterest expense, excluding amortization | $ | 242,172 | $ | 229,835 | $ | 231,787 | $ | 225,889 | $ | 223,498 | $ | 929,683 | $ | 853,619 | ||||||||
| Total revenue (FTE)3 | $ | 470,602 | $ | 461,861 | $ | 469,625 | $ | 457,835 | $ | 561,505 | $ | 1,859,923 | $ | 1,746,129 | ||||||||
| Less: Debt securities (gains) losses | 825 | 241 | (17 | ) | 5,216 | 173 | 6,265 | 88 | ||||||||||||||
| Total revenue excl. debt securities (gains) losses | 471,427 | 462,102 | 469,608 | 463,051 | 561,678 | 1,866,188 | 1,746,217 | |||||||||||||||
| Less: Gain on sale of Visa Class B restricted shares | (21,635 | ) | - | - | - | - | (21,635 | ) | - | |||||||||||||
| Less: Gain on sale of health savings accounts | - | - | - | - | (90,673 | ) | - | (90,673 | ) | |||||||||||||
| Total adjusted revenue | $ | 449,792 | $ | 462,102 | $ | 469,608 | $ | 463,051 | $ | 471,005 | $ | 1,844,553 | $ | 1,655,544 | ||||||||
| Efficiency Ratio | 59.0 | % | 51.7 | % | 51.2 | % | 52.8 | % | 49.1 | % | 53.7 | % | 58.0 | % | ||||||||
| Adjusted Efficiency Ratio | 53.8 | % | 49.7 | % | 49.4 | % | 48.8 | % | 47.5 | % | 50.4 | % | 51.6 | % | ||||||||
| Refer to last page of Non-GAAP reconciliations for footnotes. | ||||||||||||||||||||||
| Non-GAAP Measures (unaudited) | ||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| ROAE and ROATCE: | ||||||||||||||||||||||
| Net income applicable to common shares | $ | 128,446 | $ | 143,842 | $ | 151,003 | $ | 142,566 | $ | 196,701 | $ | 565,857 | $ | 414,169 | ||||||||
| Amortization of intangibles | 5,869 | 6,040 | 6,060 | 6,186 | 6,787 | 24,155 | 25,857 | |||||||||||||||
| Tax effect1 | (1,467 | ) | (1,510 | ) | (1,515 | ) | (1,547 | ) | (1,697 | ) | (6,039 | ) | (6,139 | ) | ||||||||
| Amortization of intangibles, net | 4,402 | 4,530 | 4,545 | 4,639 | 5,090 | 18,116 | 19,718 | |||||||||||||||
| Net income applicable to common shares, excluding intangibles amortization | 132,848 | 148,372 | 155,548 | 147,205 | 201,791 | 583,973 | 433,887 | |||||||||||||||
| Total adjustments, net (see pg.12) | 6,196 | 5,416 | 5,263 | 16,495 | (32,353 | ) | 33,370 | 126,757 | ||||||||||||||
| Adjusted net income applicable to common shares, excluding intangibles amortization | $ | 139,044 | $ | 153,788 | $ | 160,811 | $ | 163,700 | $ | 169,438 | $ | 617,343 | $ | 560,644 | ||||||||
| Average shareholders' equity | $ | 5,281,487 | $ | 5,294,072 | $ | 5,273,802 | $ | 5,166,188 | $ | 4,936,582 | $ | 5,254,313 | $ | 4,857,496 | ||||||||
| Less: Average preferred equity | (243,719 | ) | (243,719 | ) | (243,719 | ) | (243,719 | ) | (243,719 | ) | (243,719 | ) | (212,525 | ) | ||||||||
| Average shareholders' common equity | $ | 5,037,768 | $ | 5,050,353 | $ | 5,030,083 | $ | 4,922,469 | $ | 4,692,863 | $ | 5,010,594 | $ | 4,644,971 | ||||||||
| Average goodwill and other intangible assets | (2,103,935 | ) | (2,109,944 | ) | (2,115,894 | ) | (2,122,157 | ) | (2,132,480 | ) | (2,112,924 | ) | (1,989,466 | ) | ||||||||
| Average tangible shareholder's common equity | $ | 2,933,833 | $ | 2,940,409 | $ | 2,914,189 | $ | 2,800,312 | $ | 2,560,383 | $ | 2,897,670 | $ | 2,655,505 | ||||||||
| ROAE | 10.2 | % | 11.4 | % | 12.0 | % | 11.6 | % | 16.8 | % | 11.3 | % | 8.9 | % | ||||||||
| ROAE, adjusted | 10.7 | % | 11.8 | % | 12.4 | % | 12.9 | % | 14.0 | % | 12.0 | % | 11.6 | % | ||||||||
| ROATCE | 18.1 | % | 20.2 | % | 21.4 | % | 21.0 | % | 31.5 | % | 20.2 | % | 16.3 | % | ||||||||
| ROATCE, adjusted | 19.0 | % | 20.9 | % | 22.1 | % | 23.4 | % | 26.5 | % | 21.3 | % | 21.1 | % | ||||||||
| Refer to last page of Non-GAAP reconciliations for footnotes. | ||||||||||||||||||||||
| Non-GAAP Measures (unaudited) | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| As of | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||
| Tangible Common Equity: | |||||||||||||||
| Shareholders' equity | $ | 5,562,900 | $ | 5,239,537 | $ | 5,292,095 | $ | 5,277,426 | $ | 5,128,595 | |||||
| Less: Preferred equity | (243,719 | ) | (243,719 | ) | (243,719 | ) | (243,719 | ) | (243,719 | ) | |||||
| Shareholders' common equity | $ | 5,319,181 | $ | 4,995,818 | $ | 5,048,376 | $ | 5,033,707 | $ | 4,884,876 | |||||
| Less: Goodwill and other intangible assets | (2,100,966 | ) | (2,106,835 | ) | (2,112,875 | ) | (2,118,935 | ) | (2,125,121 | ) | |||||
| Tangible shareholders' common equity | $ | 3,218,215 | $ | 2,888,983 | $ | 2,935,501 | $ | 2,914,772 | $ | 2,759,755 | |||||
| Total assets | $ | 49,089,836 | $ | 49,059,448 | $ | 48,496,755 | $ | 47,842,644 | $ | 46,763,372 | |||||
| Less: Goodwill and other intangible assets | (2,100,966 | ) | (2,106,835 | ) | (2,112,875 | ) | (2,118,935 | ) | (2,125,121 | ) | |||||
| Tangible assets | $ | 46,988,870 | $ | 46,952,613 | $ | 46,383,880 | $ | 45,723,709 | $ | 44,638,251 | |||||
| Risk-weighted assets5 | $ | 37,407,347 | $ | 37,501,646 | $ | 37,414,177 | $ | 36,801,707 | $ | 35,950,900 | |||||
| Tangible common equity to tangible assets | 6.85 | % | 6.15 | % | 6.33 | % | 6.37 | % | 6.18 | % | |||||
| Tangible common equity to risk-weighted assets5 | 8.60 | % | 7.70 | % | 7.85 | % | 7.92 | % | 7.68 | % | |||||
| Tangible Common Book Value: | |||||||||||||||
| Common shares outstanding | 292,655 | 292,586 | 292,597 | 291,922 | 292,903 | ||||||||||
| Tangible common book value | $ | 11.00 | $ | 9.87 | $ | 10.03 | $ | 9.98 | $ | 9.42 | |||||
| 1 Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state). 2 Includes $11.0 million of provision for unfunded commitments for the twelve months ended December 31, 2022. 3 Calculated using the federal statutory tax rate in effect of 21% for all periods. 4 Excludes $11.0 million of provision for unfunded commitments that is included in provision for credit losses for the twelve months ended December 31, 2022. 5 December 31, 2023 figures are preliminary. | |||||||||||||||
