• Old National Reports 24% EPS Growth from 2Q22, 11% on an Adjusted Basis(1), Driven by Robust Commercial Loan Growth and Net Interest Margin Expansion

    Source: Nasdaq GlobeNewswire / 25 Oct 2022 08:00:44   America/New_York

    EVANSVILLE, Ind., Oct. 25, 2022 (GLOBE NEWSWIRE) --

    Old National Bancorp (NASDAQ: ONB) reports 3Q22 net income applicable to common shares of $136.1 million, diluted EPS of $0.47. Adjusted net income applicable to common shares1 of $150.4 million, adjusted diluted EPS of $0.51.

    CEO COMMENTARY:

    “With adjusted EPS growth of nearly 19%, year over year, and organic growth across most business lines, Old National once again demonstrated the strength of our expanded franchise,” said CEO Jim Ryan. “The improvement in our net interest margin and our continued strong credit, capital and efficiency metrics also reflect the strength of our franchise and Management's continuing focus on the fundamentals of our business."

    THIRD QUARTER HIGHLIGHTS2:

    Net Income
    • Net income applicable to common shares of $136.1 million; adjusted net income applicable to common shares1 of $150.4 million
    • Earnings per diluted common share ("EPS") of $0.47; adjusted EPS1 of $0.51
      
    Net Interest Income/NIM
    • Net interest income on a fully taxable equivalent basis1 of $381.5 million
    • Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.71%, up 38 basis points ("bps")
      
    Operating Performance



    • Pre-provision net revenue1 (“PPNR”) of $195.3 million; adjusted PPNR1 of $220.9 million
    • Noninterest expense of $266.6 million; adjusted noninterest expense1 of $241.2 million
    • Efficiency ratio1 of 56.2%; adjusted efficiency ratio1 of 50.7%
      
    Loans and Credit Quality
    • End-of-period total loans3 of $30.5 billion, up 13.2% annualized compared to $29.6 billion at June 30, 2022
                 º  Total commercial loans increased 16.6% annualized, excluding Paycheck Protection Program ("PPP") loans1
                 º  Total consumer loans4 increased 7.1% annualized
    • Total commercial production of $2.4 billion
    • Commercial loan pipeline of $5.4 billion
    • Provision for credit losses ("provision") of $11.3 million
    • Net charge-offs of $7.6 million, or 10 bps of average loans; 2 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
    • Non-performing loans of 0.81% of total loans
     
    Return Profile & Capital
    • Return on average tangible common equity1 of 20.5%; adjusted return on average tangible common equity1 of 22.6%
      
    Notable Items
    • $22.7 million of merger-related charges
    • $2.7 million of amortization of tax credit investments

    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 consumer and residential real estate loans

    RESULTS OF OPERATIONS

    Old National Bancorp ("Old National") reported third quarter 2022 net income applicable to common shares of $136.1 million, or $0.47 per diluted common share.

    Included in the third quarter were pre-tax charges of $22.7 million related to the February 15, 2022 merger with First Midwest. Excluding these charges and debt securities losses from the current quarter, adjusted net income was $150.4 million, or $0.51 per diluted common share.

    LOANS
    Robust broad-based commercial and consumer loan growth.

    • Period-end total loans3 were $30.5 billion at September 30, 2022, up 13.2% annualized from $29.6 billion at June 30, 2022, driven by strong commercial and consumer loan production.
    • PPP loans decreased $38.1 million to $43.5 million at September 30, 2022, compared to June 30, 2022.
    • Excluding PPP loans, total loans increased 13.7%, annualized, and total commercial loans increased 16.6%, annualized.
    • Total commercial loan production in the third quarter was $2.4 billion; period-end commercial pipeline totaled $5.4 billion.
    • Total consumer loans4 were $9.0 billion at September 30, 2022, up 7.1% annualized from June 30, 2022.
      • Consumer loans decreased $31.5 million, or 4.6% annualized, to $2.7 billion and residential mortgage loans grew $188.2 million, or 12.4% annualized, to $6.3 billion, driven by strong production.
    • Average total loans in the third quarter were $29.9 billion, an increase of $1.0 billion from the second quarter of 2022.

    DEPOSITS
    Strong deposit franchise with higher period-end balances.

    • Period-end total deposits were $36.1 billion at September 30, 2022, compared to $35.5 billion at June 30, 2022.
    • Increase in municipal deposits; commercial and retail deposits were stable.
    • On average, total deposits for the third quarter were $35.8 billion, consistent with the second quarter of 2022.

    NET INTEREST INCOME AND MARGIN
    Strong loan growth and the higher rate environment favorably impact net interest income and margin.

    • Net interest income on a fully taxable equivalent basis increased to $381.5 million in the third quarter of 2022 compared to $341.8 million in the second quarter of 2022, driven by higher interest rates, loan growth, and an additional day in the quarter, partially offset by lower accretion income on loans.
    • Net interest margin on a fully taxable equivalent basis increased 38 bps to 3.71% compared to 3.33% for the second quarter of 2022.
    • Accretion income on loans and borrowings was $25.4 million, or 25 bps of net interest margin, in the third quarter of 2022 compared to $35.0 million, or 34 bps of net interest margin, in the second quarter of 2022.
    • Interest collected on nonaccrual loans was $1.2 million, or 1 bps of net interest margin, in the third quarter of 2022 compared to $3.2 million, or 3 bps of net interest margin, in the second quarter of 2022.
    • Cost of total deposits was 0.12%, increasing 6 bps and the cost of total interest-bearing deposits increased 9 bps to 0.18% in the third quarter of 2022.

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

    • Provision expense in the third quarter of 2022 was $11.3 million, compared to $9.2 million in the second quarter of 2022, reflecting strong loan growth.
    • Net charge-offs in the third quarter were $7.6 million, or 10 bps of average loans compared to net charge-offs of $1.8 million in the second quarter of 2022, or 2 bps of average loans.
      • Net charge-offs include $5.9 million, or 8 bps of average loans, of charge-offs on PCD loans that had an allowance for credit losses established at acquisition.
    • 30+ day delinquencies were 0.22% at the end of the third quarter, compared to 0.17% at the end of the second quarter.
    • Non-performing loans as a percentage of total loans were 0.81% compared to 0.78% at the end of the second quarter of 2022.
    • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of September 30, 2022, the remaining discount on these acquired loans was $112 million.
    • The allowance for credit losses stood at $302.3 million, or 0.99% of total loans at September 30, 2022, compared to 0.97% at June 30, 2022.

    NONINTEREST INCOME
    Decrease driven by lower wealth management revenue and other income.

    • Total noninterest income for the third quarter of 2022 was $80.4 million, a decrease of $8.7 million from the second quarter of 2022.
    • Wealth management fees were lower due to current market conditions and mortgage banking revenue continues to be impacted by the higher rate environment, as well as lower production and gain on sale margins.
    • Other income for the second quarter of 2022 was elevated primarily due to equity investment returns and recoveries on previously charged-off acquired loans in addition to increased proceeds from company-owned life insurance.

    NONINTEREST EXPENSE
    Disciplined expense management; efficiency ratio improved.

    • Noninterest expense for the third quarter of 2022 was $266.6 million and included $22.7 million of merger-related charges, as well as $2.7 million of tax credit amortization.
    • Excluding these items, adjusted noninterest expense for the third quarter was $241.3 million, compared to $239.3 million in the second quarter of 2022, up due primarily to approximately $7 million of lower deferred loan origination costs and year-to-date incentive accrual true-up, as well as $4 million of provision for unfunded commitments due to loan growth and higher marketing expense.
    • The third quarter efficiency ratio was 56.2%, while the adjusted efficiency ratio was 50.7% for the third quarter of 2022 compared to 62.7% and 53.9%, respectively, for the second quarter of 2022.

    INCOME TAXES

    • On a fully taxable equivalent basis, income tax expense in the third quarter was $43.8 million, resulting in a 23.8% FTE tax rate, compared to 20.3% in the second quarter of 2022, reflective of higher pre-tax net income.
    • Income tax expense included $3.1 million of tax credit benefit.

    CAPITAL AND LIQUIDITY
    Capital ratios remain strong.

    • Preliminary total risk-based capital was 11.84% and preliminary regulatory Tier 1 capital was 10.58%, impacted by strong loan growth, partly offset by retained earnings. In addition, total risk-based capital was impacted by the phase-out of $30 million of Tier 2 subordinated debt.
    • Tangible common equity to tangible assets was 5.82% at the end of the third quarter compared to 6.20% in the second quarter of 2022, driven by the higher rate environment's impact on unrealized losses within the investment portfolio.
    • The Company did not repurchase any shares of common stock during the quarter.
    • A loan to deposit ratio of 84.7%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.

    WEALTH MARKET EXPANSION
    Old National has recently expanded into the Nashville, Tennessee area with the hiring of seven wealth management professionals. The experienced team, with an average tenure of over 20 years in wealth/investment services, will be led by Steve Cook, who will serve as Market President. This group will lead and operate a new wealth management office under the 1834 brand, which is the new high-net-worth brand of the Old National Wealth Group.

    HEALTH SAVINGS ACCOUNTS SALE
    As previously disclosed on June 27, 2022, Old National Bank, a wholly-owned subsidiary of Old National Bancorp, entered into a Custodial Transfer and Asset Purchase Agreement with UMB Bank, n.a. (“UMB”), pursuant to which UMB will acquire Old National Bank’s business of acting as a qualified custodian for, and administering, health savings accounts. Old National Bank serves as custodian for health savings accounts comprised of both investment accounts and deposit accounts. Upon completion of the sale, UMB will pay Old National a premium on deposit account balances transferred at closing, or a premium of approximately $95 million based on September 30, 2022 balances. Regulatory approval for the sale has been received. Subject to customary closing conditions, the parties anticipate completing the sale in mid-November of 2022.

    SERVICE CHARGE PROGRAM ENHANCEMENTS
    In early December, Old National will implement several enhancements to overdraft protection programs to provide clients with more flexibility. The changes will include the elimination of the non-sufficient fund ("NSF") fee when an item is returned, among other modifications that will benefit the consumer.

    CONFERENCE CALL AND WEBCAST
    Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, October 25, 2022, to review third quarter 2022 financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (844) 200-6205 or International (929) 526-1599, Access code 504244. A replay of the call will also be available from noon Central Time on October 25, 2022 through November 8, 2022. To access the replay, dial U.S. (866) 813-9403 or international +44 (204) 525-0658, Access code 902394.

    ABOUT OLD NATIONAL
    Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the sixth largest commercial bank headquartered in the Midwest. With approximately $46 billion of assets and $27 billion of assets under management, Old National ranks among the top 35 banking companies based in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for eleven consecutive years.  Since its founding in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients and in the communities it serves. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment, and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.

    USE OF NON-GAAP FINANCIAL MEASURES
    The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

    The Company presents EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity, all adjusted for certain notable items. These items include the CECL Day 1 non-PCD provision expense, merger related charges associated with completed acquisitions, ONB Way charges, and net securities gains. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger related charges and the CECL Day 1 non-PCD provision expense from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

    The Company presents loans excluding PPP loans. Management believes that excluding PPP loans is useful as it facilitates better comparability between periods. PPP loans are fully guaranteed by the Small Business Administration and are expected to be forgiven if the applicable criteria are met. Additionally, management believes excluding PPP loans from this item may enhance comparability for peer comparison.

    Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes pre-provision net revenues, adjusted may be useful in assessing the Company's underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

    The Company presents adjusted noninterest expense, which excludes merger related charges, ONB Way charges and amortization of tax credit investments. Management believes that excluding these items from noninterest expense may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

    The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

    In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.

    Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the previously provided tables and the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.

    FORWARD-LOOKING STATEMENTS
    This communication contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of the words "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "should," and "will," and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: the continued impact of the COVID-19 pandemic on our business as well as the business of our customers; competition; government legislation, regulations and policies; ability of Old National to execute its business plan, including the completion of the integration related to the merger between Old National and First Midwest and the achievement of the synergies and other benefits from the merger; changes in economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2021 and other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results or performance, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

    CONTACTS:  
    Media: Kathy Schoettlin Investors: Lynell Walton
    (812) 465-7269 (812) 464-1366
    Kathy.Schoettlin@oldnational.com Lynell.Walton@oldnational.com


             
    Financial Highlights (unaudited)
    ($ and shares in thousands, except per share data)
             
     Three Months Ended Nine Months Ended
     September 30,June 30,March 31,December 31,September 30, September 30,September 30,
      2022  2022  2022  2021  2021   2022  2021 
    Income Statement        
    Net interest income$376,589 $337,472 $222,785 $146,781 $151,572  $936,846 $449,619 
    FTE adjustment1 4,950  4,314  3,772  3,442  3,501   13,036  10,471 
    Net interest income - tax equivalent basis 381,539  341,786  226,557  150,223  155,073   949,882  460,090 
    Provision for credit losses 11,287  9,245  97,569  (1,914) (4,613)  118,101  (26,898)
    Noninterest income 80,385  89,117  65,240  51,484  54,515   234,742  162,735 
    Noninterest expense (266,647) (277,395) (226,756) (131,937) (121,274)  (770,798) (368,632)
    Net income (loss) available to common shareholders$136,119 $110,952 $(29,603)$56,188 $71,746  $217,468 $221,350 
    Per Common Share Data        
    Weighted average diluted shares 292,483  291,881  227,002  166,128  165,939   271,123  165,862 
    EPS, diluted$0.47 $0.38 $(0.13)$0.34 $0.43  $0.80 $1.33 
    Cash dividends 0.14  0.14  0.14  0.14  0.14   0.42  0.42 
    Dividend payout ratio2 30% 37%(108)        % 41% 33%  53% 32%
    Book value$16.05 $16.51 $17.03 $18.16 $18.31  $16.05 $18.31 
    Stock price 16.47  14.79  16.38  18.12  16.95   16.47  16.95 
    Tangible book value3 8.75  9.23  9.71  11.70  11.83   8.75  11.83 
    Performance Ratios        
    ROAA 1.22% 1.01%(0.31)        % 0.93% 1.20%  0.72% 1.25%
    ROAE 11.1% 9.1%(2.9)        % 7.5% 9.5%  6.3% 6.3%
    ROATCE3 20.5% 16.9%(4.0)        % 12.1% 15.1%  11.5% 15.8%
    NIM (FTE) 3.71% 3.33% 2.88% 2.77% 2.92%  3.34% 2.92%
    Efficiency ratio3 56.2% 62.7% 76.2% 64.3% 56.9%  63.5% 58.1%
    NCOs (recoveries) to average loans 0.10% 0.02% 0.05%(0.04)        %(0.09)        %  0.06%(0.03)        %
    ACLs to EOP loans 0.99% 0.97% 0.99% 0.79% 0.79%  0.99% 0.79%
    NPLs to EOP loans 0.81% 0.78% 0.88% 0.92% 0.94%  0.81% 0.94%
    Balance Sheet (EOP)        
    Total loans$30,528,933 $29,553,648 $28,336,244 $13,601,846 $13,584,828  $30,528,933 $13,584,828 
    Total assets 46,215,526  45,748,355  45,834,648  24,453,564  24,018,733   46,215,526  24,018,733 
    Total deposits 36,053,663  35,538,975  35,607,390  18,569,195  18,196,149   36,053,663  18,196,149 
    Total borrowed funds 4,264,750  4,384,411  4,347,560  2,575,240  2,536,303   4,264,750  2,536,303 
    Total shareholders' equity 4,943,383  5,078,783  5,232,114  3,012,018  3,035,892   4,943,383  3,035,892 
    Capital Ratios3        
    Risk-based capital ratios (EOP):        
    Tier 1 common equity 9.88% 9.90% 10.04% 12.04% 12.08%  9.88% 12.08%
    Tier 1 capital 10.58% 10.63% 10.79% 12.04% 12.08%  10.58% 12.08%
    Total capital 11.84% 12.03% 12.19% 12.77% 12.84%  11.84% 12.84%
    Leverage ratio (average assets) 8.26% 8.19% 10.58% 8.59% 8.54%  8.26% 8.54%
    Equity to assets (averages) 11.18% 11.22% 12.03% 12.35% 12.69%  11.43% 12.69%
    TCE to TA 5.82% 6.20% 6.51% 8.30% 8.55%  5.82% 8.55%
    Nonfinancial Data        
    Full-time equivalent employees 4,008  4,196  4,333  2,374  2,410   4,008  2,410 
    Banking centers 263  266  267  162  162   263  162 
    1 Calculated using the federal statutory tax rate in effect of 21% for all periods.   
    2 Cash dividends per common share divided by net income per common share (basic). 
    3 Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
    September 30, 2022 capital ratios are preliminary.   
    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 Nine Months Ended
     September 30,June 30,March 31,December 31,September 30, September 30,September 30,
      2022  2022  2022  2021  2021   2022  2021 
    Interest income$406,518 $354,358 $235,505 $156,928 $162,026  $996,381 $481,721 
    Less: interest expense 29,929  16,886  12,720  10,147  10,454   59,535  32,102 
    Net interest income 376,589  337,472  222,785  146,781  151,572   936,846  449,619 
    Provision 11,287  9,245  97,569  (1,914) (4,613)  118,101  (26,898)
    Net interest income after provision 365,302  328,227  125,216  148,695  156,185   818,745  476,517 
    Wealth management fees 17,317  19,304  14,630  9,833  10,134   51,251  30,576 
    Service charges on deposit accounts 20,042  20,324  14,026  8,388  8,123   54,392  23,270 
    Debit card and ATM fees 10,608  11,222  7,599  5,804  5,745   29,429  17,962 
    Mortgage banking revenue 5,360  6,522  7,245  7,336  10,870   19,127  35,222 
    Investment product fees 8,042  8,568  7,322  6,258  6,475   23,932  18,381 
    Capital markets income 8,906  7,261  4,442  6,394  6,017   20,609  15,603 
    Company-owned life insurance 3,361  4,571  3,524  2,737  2,355   11,456  7,852 
    Other income 6,921  11,430  6,110  4,299  3,589   24,461  9,977 
    Gains (losses) on sales of debt securities (172) (85) 342  435  1,207   85  3,892 
    Total noninterest income 80,385  89,117  65,240  51,484  54,515   234,742  162,735 
    Salaries and employee benefits 147,203  161,817  124,147  72,336  71,005   433,167  211,762 
    Occupancy 26,418  26,496  21,019  13,151  12,757   73,933  41,683 
    Equipment 7,328  7,550  5,168  4,473  3,756   20,046  12,231 
    Marketing 10,361  9,119  4,276  4,723  3,267   23,756  7,961 
    Data processing 20,269  25,883  18,762  11,489  11,508   64,914  35,558 
    Communication 5,392  5,878  3,417  2,412  2,372   14,687  7,661 
    Professional fees 6,559  6,336  19,791  5,409  3,416   32,686  14,668 
    FDIC assessment 6,249  4,699  2,575  1,598  1,628   13,523  4,461 
    Amortization of intangibles 7,089  7,170  4,811  2,573  2,779   19,070  8,763 
    Amortization of tax credit investments 2,662  1,525  1,516  2,019  1,736   5,703  4,751 
    Other expense 27,117  20,922  21,274  11,754  7,050   69,313  19,133 
    Total noninterest expense 266,647  277,395  226,756  131,937  121,274   770,798  368,632 
    Income (loss) before income taxes 179,040  139,949  (36,300) 68,242  89,426   282,689  270,620 
    Income tax expense (benefit) 38,887  24,964  (8,714) 12,054  17,680   55,137  49,270 
    Net income (loss)$140,153 $114,985 $(27,586)$56,188 $71,746  $227,552 $221,350 
    Preferred dividends (4,034) (4,033) (2,017) —  —   (10,084) — 
    Net income (loss) applicable to common shares$136,119 $110,952 $(29,603)$56,188 $71,746  $217,468 $221,350 
             
    EPS$0.47 $0.38 $(0.13)$0.34 $0.43  $0.80 $1.33 
    Weighted Average Common Shares Outstanding        
    Basic 290,961  290,862  227,002  165,278  165,258   269,843  165,144 
    Diluted 292,483  291,881  227,002  166,128  165,939   271,123  165,862 
    Common shares outstanding (EOP) 292,880  292,893  292,959  165,838  165,814   292,880  165,814 


     
    End of Period Balance Sheet (unaudited)
    ($ in thousands)
     September 30,June 30,March 31,December 31,September 30,
      2022  2022  2022  2021  2021 
    Earning Assets     
    Federal Reserve Bank account$328,391 $334,570 $1,545,389 $627,354 $600,581 
    Money market investments 6,374  7,774  12,419  22,002  16,294 
    Investments:     
    Treasury and government-sponsored agencies 2,186,551  2,461,173  2,527,568  1,778,357  1,803,273 
    Mortgage-backed securities 5,584,241  5,976,921  6,086,853  3,698,831  3,354,701 
    States and political subdivisions 1,829,561  1,839,333  1,840,823  1,654,986  1,609,283 
    Other securities 693,303  719,223  735,550  432,478  442,503 
    Total investments 10,293,656  10,996,650  11,190,794  7,564,652  7,209,760 
    Loans held for sale, at fair value 19,748  26,217  39,376  35,458  51,306 
    Loans:     
    Commercial 9,311,148  8,923,983  8,624,253  3,391,769  3,505,183 
    Commercial and agriculture real estate 12,227,888  11,796,503  11,337,735  6,380,674  6,290,632 
    Consumer:     
    Home equity 1,043,594  1,097,852  1,080,885  560,590  554,322 
    Other consumer loans 1,678,997  1,656,253  1,587,216  1,013,524  1,009,909 
    Subtotal of commercial and consumer loans 24,261,627  23,474,591  22,630,089  11,346,557  11,360,046 
    Residential real estate 6,267,306  6,079,057  5,706,155  2,255,289  2,224,782 
    Total loans 30,528,933  29,553,648  28,336,244  13,601,846  13,584,828 
    Total earning assets 41,177,102  40,918,859  41,124,222  21,851,312  21,462,769 
          
    Allowance for credit losses on loans (302,254) (288,003) (280,507) (107,341) (107,868)
    Non-earning Assets:     
    Cash and due from banks 466,846  455,620  418,744  172,663  180,583 
    Premises and equipment, net 588,021  586,031  584,113  476,186  476,036 
    Operating lease right-of-use assets 187,626  192,196  201,802  69,560  69,912 
    Goodwill and other intangible assets 2,135,792  2,131,815  2,144,609  1,071,672  1,074,245 
    Company-owned life insurance 767,089  769,595  766,291  463,324  461,310 
    Other assets 1,195,304  982,242  875,374  456,188  401,746 
    Total non-earning assets 5,340,678  5,117,499  4,990,933  2,709,593  2,663,832 
    Total assets$46,215,526 $45,748,355 $45,834,648 $24,453,564 $24,018,733 
          
    Liabilities and Equity     
    Noninterest-bearing demand deposits$12,400,077 $12,388,379 $12,463,136 $6,303,106 $6,440,526 
    Interest-bearing:     
    Checking and NOW accounts 8,963,014  8,473,510  8,296,337  5,338,022  4,956,012 
    Savings accounts 6,616,512  6,796,152  6,871,767  3,798,494  3,708,807 
    Money market accounts 5,602,729  5,373,318  5,432,139  2,169,160  2,097,967 
    Other time deposits 2,393,083  2,479,304  2,544,011  960,413  992,837 
    Total core deposits 35,975,415  35,510,663  35,607,390  18,569,195  18,196,149 
    Brokered deposits 78,248  28,312  —  —  — 
    Total deposits 36,053,663  35,538,975  35,607,390  18,569,195  18,196,149 
          
    Federal funds purchased and interbank borrowings 301,031  1,561  1,721  276  34 
    Securities sold under agreements to repurchase 438,053  476,173  509,275  392,275  375,247 
    Federal Home Loan Bank advances 2,804,617  3,283,963  3,239,357  1,886,019  1,890,054 
    Other borrowings 721,049  622,714  597,207  296,670  270,968 
    Total borrowed funds 4,264,750  4,384,411  4,347,560  2,575,240  2,536,303 
    Operating lease liabilities 207,725  215,188  234,049  76,236  76,771 
    Accrued expenses and other liabilities 746,005  530,998  413,535  220,875  173,618 
    Total liabilities 41,272,143  40,669,572  40,602,534  21,441,546  20,982,841 
    Preferred stock, common stock, surplus, and retained earnings 5,751,833  5,647,916  5,570,313  3,014,393  2,979,082 
    Accumulated other comprehensive income (loss), net of tax (808,450) (569,133) (338,199) (2,375) 56,810 
    Total shareholders' equity 4,943,383  5,078,783  5,232,114  3,012,018  3,035,892 
    Total liabilities and shareholders' equity$46,215,526 $45,748,355 $45,834,648 $24,453,564 $24,018,733 
     


                 
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
                 
                 
      Three Months Ended Three Months Ended Three Months Ended
      September 30, 2022 June 30, 2022 September 30, 2021
      AverageIncome1/Yield/ AverageIncome1/Yield/ AverageIncome1/Yield/
    Earning Assets: BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate
    Money market and other interest-earning investments $514,362 $9350.72% $1,088,005 $1,8300.67% $467,572 $1770.15%
    Investments:            
    Treasury and government-sponsored agencies  2,326,070  13,2122.27%  2,487,717  11,8181.90%  1,730,553  6,9681.61%
    Mortgage-backed securities  5,891,283  36,1572.45%  6,008,470  33,5342.23%  3,313,027  14,5091.75%
    States and political subdivisions  1,829,322  14,6313.20%  1,834,189  14,5713.18%  1,586,743  12,6093.18%
    Other securities  718,735  6,7813.77%  723,279  5,4673.02%  443,393  2,6382.38%
    Total investments  10,765,410  70,7812.63%  11,053,655  65,3902.37%  7,073,716  36,7242.08%
    Loans:2            
    Commercial  9,045,009  113,4915.02%  8,692,646  95,7434.36%  3,645,197  36,1393.88%
    Commercial and agriculture real estate  11,929,892  136,7804.59%  11,547,958  113,5453.89%  6,200,144  57,8203.65%
    Consumer:            
    Home equity  947,921  14,3976.03%  1,000,373  11,2564.51%  549,229  4,4483.21%
    Other consumer loans  1,787,929  18,6524.14%  1,715,550  19,2224.49%  1,018,385  9,6903.77%
    Subtotal commercial and consumer loans  23,710,751  283,3204.78%  22,956,527  239,7664.19%  11,412,955  108,0973.76%
    Residential real estate loans  6,189,503  56,4323.65%  5,905,151  51,6863.50%  2,274,347  20,5293.61%
                 
    Total loans  29,900,254  339,7524.54%  28,861,678  291,4524.01%  13,687,302  128,6263.70%
                 
    Total earning assets $41,180,026 $411,4683.99% $41,003,338 $358,6723.48% $21,228,590 $165,5273.08%
                 
    Less: Allowance for credit losses on loans  (290,215)    (282,943)    (111,216)  
                 
    Non-earning Assets:            
    Cash and due from banks $503,841    $277,283    $272,855   
    Other assets  4,522,171     4,735,701     2,479,079   
                 
    Total assets $45,915,823    $45,733,379    $23,869,308   
                 
    Interest-Bearing Liabilities:            
    Checking and NOW accounts $8,681,392 $5,7510.26% $8,445,683 $1,7860.08% $4,873,914 $4840.04%
    Savings accounts  6,733,465  5470.03%  6,835,675  6730.04%  3,678,944  5000.05%
    Money market accounts  5,344,567  2,0720.15%  5,317,300  1,0270.08%  2,110,981  4380.08%
    Other time deposits  2,463,573  2,1680.35%  2,491,998  1,6270.26%  998,060  1,1560.46%
    Total interest-bearing core deposits  23,222,997  10,5380.18%  23,090,656  5,1130.09%  11,661,899  2,5780.09%
    Brokered deposits  44,579  2822.51%  7,447  740.00%  —  —0.00%
    Total interest-bearing deposits  23,267,576  10,8200.18%  23,098,103  5,1870.09%  11,661,899  2,5780.09%
                 
    Federal funds purchased and interbank borrowings  122,311  7202.34%  1,222  20.47%  689  —0.00%
    Securities sold under agreements to repurchase  436,225  1060.10%  466,885  850.07%  384,724  900.09%
    Federal Home Loan Bank advances  3,025,844  13,0271.71%  3,053,423  6,9250.91%  1,890,916  5,3261.12%
    Other borrowings  676,874  5,2563.08%  611,772  4,6873.06%  270,597  2,4603.64%
    Total borrowed funds  4,261,254  19,1091.78%  4,133,302  11,6991.14%  2,546,926  7,8761.23%
                 
    Total interest-bearing liabilities $27,528,830 $29,9290.43% $27,231,405 $16,8860.25% $14,208,825 $10,4540.29%
                 
    Noninterest-Bearing Liabilities and Shareholders' Equity           
    Demand deposits $12,575,011    $12,714,946    $6,314,100   
    Other liabilities  677,829     657,128     318,448   
    Shareholders' equity  5,134,153     5,129,900     3,027,935   
                 
    Total liabilities and shareholders' equity $45,915,823    $45,733,379    $23,869,308   
                 
    Net interest rate spread   3.56%   3.23%   2.79%
                 
    Net interest margin (FTE)   3.71%   3.33%   2.92%
                 
    FTE adjustment  $4,950   $4,314   $3,501 
                 
    1 Interest income is reflected on a FTE. 
    2 Includes loans held for sale. 
     


             
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
             
             
      Nine Months Ended Nine Months Ended
      September 30, 2022 September 30, 2021
      AverageIncome1/Yield/ AverageIncome1/Yield/
    Earning Assets: BalanceExpenseRate BalanceExpenseRate
    Money market and other interest-earning investments $976,579 $3,0730.42% $357,151 $3130.12%
    Investments:        
    Treasury and government-sponsored agencies  2,336,897  33,2491.90%  1,509,931  17,8201.57%
    Mortgage-backed securities  5,593,341  94,0672.24%  3,304,200  45,4081.83%
    States and political subdivisions  1,801,053  42,8393.17%  1,523,175  37,1743.25%
    Other securities  682,937  16,3923.20%  445,298  8,0712.42%
    Total investments $10,414,228 $186,5472.39% $6,782,604 $108,4732.13%
    Loans:2        
    Commercial  7,888,730  264,5174.47%  3,878,630  106,4213.62%
    Commercial and agriculture real estate  10,753,988  327,7334.06%  6,109,795  171,2213.70%
    Consumer:        
    Home equity  911,276  33,0084.84%  544,111  12,8013.15%
    Other consumer loans  1,609,845  52,4344.35%  1,037,038  29,6133.82%
    Subtotal commercial and consumer loans  21,163,839  677,6924.27%  11,569,574  320,0563.70%
    Residential real estate loans  5,369,844  142,1053.53%  2,268,142  63,3503.72%
             
    Total loans  26,533,683  819,7974.12%  13,837,716  383,4063.67%
             
    Total earning assets $37,924,490 $1,009,4173.55% $20,977,471 $492,1923.11%
             
    Less: Allowance for credit losses on loans  (247,558)    (120,619)  
             
    Non-earning Assets:        
    Cash and due from banks $350,848    $266,543   
    Other assets  4,249,986     2,495,512   
             
    Total assets $42,277,766    $23,618,907   
             
    Interest-Bearing Liabilities:        
    Checking and NOW accounts $7,977,524 $8,1330.14% $4,895,539 $1,6080.04%
    Savings accounts  6,295,628  1,8090.04%  3,608,078  1,4790.05%
    Money market accounts  4,819,252  3,7910.11%  2,060,325  1,2930.08%
    Other time deposits  2,236,206  5,1120.31%  1,034,389  4,0580.52%
    Total interest-bearing core deposits  21,328,610  18,8450.12%  11,598,331  8,4380.10%
    Brokered deposits  17,505  3562.72%  55,312  310.08%
    Total interest-bearing deposits  21,346,115  19,2010.12%  11,653,643  8,4690.10%
             
    Federal funds purchased and interbank borrowings  41,993  7222.30%  1,096  —0.00%
    Securities sold under agreements to repurchase  450,966  2870.09%  396,495  3050.10%
    Federal Home Loan Bank advances  2,891,347  25,9151.20%  1,907,322  15,9531.12%
    Other borrowings  574,589  13,4103.12%  267,650  7,3753.67%
    Total borrowed funds  3,958,895  40,3341.36%  2,572,563  23,6331.23%
             
    Total interest-bearing liabilities  25,305,010  59,5350.31%  14,226,206  32,1020.30%
             
    Noninterest-Bearing Liabilities and Shareholders' Equity       
    Demand deposits $11,540,293    $6,072,310   
    Other liabilities  601,619     323,310   
    Shareholders' equity  4,830,844     2,997,081   
             
    Total liabilities and shareholders' equity $42,277,766    $23,618,907   
             
    Net interest rate spread   3.24%   2.81%
             
    Net interest margin (FTE)   3.34%   2.92%
             
    FTE adjustment  $13,036   $10,471 
             
    1 Interest income is reflected on a FTE.
    2 Includes loans held for sale.        
     


             
    Asset Quality (EOP) (unaudited)
    ($ in thousands)
             
     Three Months Ended Nine Months Ended
     September 30,June 30,March 31,December 31,September 30, September 30,September 30,
      2022  2022  2022  2021  2021   2022  2021 
    Allowance for credit losses on loans:        
    Beginning ACL$288,003 $280,507 $107,341 $107,868 $109,444  $107,341 $131,388 
    Allowance established for acquired PCD loans 10,558  —  78,531  —  —   89,089  — 
    Provision for credit losses1 11,288  9,254  97,409  (1,914) (4,613)  117,951  (26,898)
    Gross charge-offs (11,440) (4,096) (4,664) (545) (1,215)  (20,200) (3,765)
    Gross recoveries 3,845  2,338  1,890  1,932  4,252   8,073  7,143 
    (NCOs) recoveries (7,595) (1,758) (2,774) 1,387  3,037   (12,127) 3,378 
    Ending ACL$302,254 $288,003 $280,507 $107,341 $107,868  $302,254 $107,868 
    NCOs (recoveries) / average loans2 0.10% 0.02% 0.05%(0.04)        %(0.09)        %  0.06%(0.03)        %
    Average loans2$29,890,008 $28,847,003 $20,725,313 $13,594,543 $13,675,436  $26,521,011 $13,824,569 
    EOP loans2 30,528,933  29,553,648  28,336,244  13,601,846  13,584,828   30,528,933  13,584,828 
    ACL / EOP loans2 0.99% 0.97% 0.99% 0.79% 0.79%  0.99% 0.79%
    Underperforming Assets:        
    Loans 90 days and over (still accruing)$767 $882 $1,646 $7 $113  $767 $113 
    NPLs:        
    Nonaccrual loans3 233,659  214,924  227,925  106,691  111,586   233,659  111,586 
    TDRs still accruing 13,674  15,665  20,999  18,378  16,420   13,674  16,420 
    Total NPLs 247,333  230,589  248,924  125,069  128,006   247,333  128,006 
    Foreclosed assets 11,967  12,618  19,713  2,030  1,943   11,967  1,943 
    Total underperforming assets$260,067 $244,089 $270,283 $127,106 $130,062  $260,067 $130,062 
    Classified and Criticized Assets:        
    Nonaccrual loans3$233,659 $214,924 $227,925 $106,691 $111,586  $233,659 $111,586 
    Substandard loans (still accruing) 476,724  490,566  518,341  162,572  164,192   476,724  164,192 
    Loans 90 days and over (still accruing) 767  882  1,646  7  113   767  113 
    Total classified loans - "problem loans" 711,150  706,372  747,912  269,270  275,891   711,150  275,891 
    Other classified assets 24,773  25,004  24,676  4,338  4,300   24,773  4,300 
    Criticized loans - "special mention loans" 549,994  452,835  507,689  235,910  240,215   549,994  240,215 
    Total classified and criticized assets$1,285,917 $1,184,211 $1,280,277 $509,518 $520,406  $1,285,917 $520,406 
    Loans 30-89 days past due$65,632 $48,889 $94,114 $16,347 $13,263  $65,632 $13,263 
    NPLs / EOP loans2 0.81% 0.78% 0.88% 0.92% 0.94%  0.81% 0.94%
    ACL to NPLs 122% 125% 113% 86% 84%  122% 84%
    Under-performing assets / EOP loans2 0.85% 0.83% 0.95% 0.93% 0.96%  0.85% 0.96%
    Under-performing assets / EOP assets 0.56% 0.53% 0.59% 0.52% 0.54%  0.56% 0.54%
    30+ day delinquencies2 0.22% 0.17% 0.34% 0.12% 0.10%  0.22% 0.10%
    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 $23.8 million at September 30, 2022, $24.3 million at June 30, 2022, $23.8 million at March 31, 2022, $11.7 million at December 31, 2021 and $12.8 million at September 30, 2021.
    PCD - Purchased credit deteriorated TDR - Troubled debt restructuring
             


             
    Non-GAAP Measures (unaudited)
    ($ and shares in thousands, except per share data)
             
     Three Months Ended Nine Months Ended
     September 30,June 30,March 31,December 31,September 30, September 30,September 30,
      2022  2022  2022  2021  2021   2022  2021 
    Earnings Per Share:        
    Net income applicable to common shares$136,119 $110,952 $(29,603)$56,188 $71,746  $217,468 $221,350 
    Adjustments:        
    Debt Securities (gains) losses 172  85  (342) (435) (1,207)  (85) (3,892)
    Tax effect1 (65) (30) 62  109  302   (32) 973 
    Debt securities (gains) losses, net 107  55  (280) (326) (905)  (117) (2,919)
    Day 1 non-PCD —  —  96,270  —  —   96,270  — 
    Tax effect1 —  —  (17,550) —  —   (17,550) — 
    Day 1 non-PCD, net —  —  78,720  —  —   78,720  — 
    Merger related charges 22,743  36,585  52,299  6,683  1,361   111,627  7,901 
    Tax effect1 (8,529) (13,057) (9,534) (1,671) (340)  (34,016) (1,975)
    Merger related charges, net 14,214  23,528  42,765  5,012  1,021   77,611  5,926 
    ONB Way —  —  —  —  —   —  1,952 
    Tax effect1 —  —  —  —  —   —  (488)
    ONB Way, net —  —  —  —  —   —  1,464 
    Total adjustments, net 14,321  23,583  121,205  4,686  116   156,214  4,471 
    Net income applicable to common shares, adjusted$150,440 $134,535 $91,602 $60,874 $71,862  $373,682 $225,821 
    Weighted average diluted common shares outstanding 292,483  291,881  227,002  166,128  165,939   271,123  165,862 
    EPS, diluted$0.47 $0.38 $(0.13)$0.34 $0.43  $0.80 $1.33 
    Adjusted EPS, diluted$0.51 $0.46 $0.40 $0.37 $0.43  $1.38 $1.36 
    NIM:        
    Net interest income$376,589 $337,472 $222,785 $146,781 $151,572  $936,846 $449,619 
    Add: FTE adjustment1 4,950  4,314  3,772  3,442  3,501   13,036  10,471 
    Net interest income (FTE)$381,539 $341,786 $226,557 $150,223 $155,073  $949,882 $460,090 
    Average earning assets$41,180,026 $41,003,338 $31,483,553 $21,670,723 $21,228,590  $37,924,490 $20,977,471 
    NIM 3.66% 3.29% 2.83% 2.71% 2.86%  3.29% 2.86%
    NIM (FTE) 3.71% 3.33% 2.88% 2.77% 2.92%  3.34% 2.92%


             
    Non-GAAP Measures (unaudited)
    ($ in thousands)
             
     Three Months Ended Nine Months Ended
     September 30,June 30,March 31,December 31,September 30, September 30,September 30,
      2022  2022  2022  2021  2021   2022  2021 
    PPNR:        
    Net interest income (FTE)1$381,539 $341,786 $226,557 $150,223 $155,073  $949,882 $460,090 
    Add: Noninterest income 80,385  89,117  65,240  51,484  54,515   234,742  162,735 
    Total revenue (FTE) 461,924  430,903  291,797  201,707  209,588   1,184,624  622,825 
    Less: Noninterest expense (266,647) (277,395) (226,756) (131,937) (121,274)  (770,798) (368,632)
    PPNR$195,277 $153,508 $65,041 $69,770 $88,314  $413,826 $254,193 
    Adjustments:        
    Debt securities (gains) losses$172 $85 $(342)$(435)$(1,207) $(85)$(3,892)
    Noninterest income adjustments 172  85  (342) (435) (1,207)  (85) (3,892)
    Adjusted revenue$462,096 $430,988 $291,455 $201,272 $208,381  $1,184,539 $618,933 
    Adjustments:        
    ONB Way$— $— $— $— $—  $— $1,952 
    Merger related charges 22,743  36,585  52,299  6,683  1,361   111,627  7,901 
    Amortization of tax credit investments 2,662  1,525  1,516  2,019  1,736   5,703  4,751 
    Noninterest expense adjustments 25,405  38,110  53,815  8,702  3,097   117,330  14,604 
    Adjusted total noninterest expense (241,242) (239,285) (172,941) (123,235) (118,177)  (653,468) (354,028)
    Adjusted PPNR$220,854 $191,703 $118,514 $78,037 $90,204  $531,071 $264,905 
    Efficiency Ratio:        
    Noninterest expense$266,647 $277,395 $226,756 $131,937 $121,274  $770,798 $368,632 
    Less: Amortization of intangibles (7,089) (7,170) (4,811) (2,573) (2,779)  (19,070) (8,763)
    Noninterest expense, excl. amortization of intangibles 259,558  270,225  221,945  129,364  118,495   751,728  359,869 
    Less: Noninterest expense adjustments (25,405) (38,110) (53,815) (8,702) (3,097)  (117,330) (14,604)
    Adjusted noninterest expense$234,153 $232,115 $168,130 $120,662 $115,398  $634,398 $345,265 
    Total revenue (FTE)1$461,924 $430,903 $291,797 $201,707 $209,588  $1,184,624 $622,825 
    Less: Revenue adjustments 172  85  (342) (435) (1,207)  (85) (3,892)
    Total adjusted revenue$462,096 $430,988 $291,455 $201,272 $208,381  $1,184,539 $618,933 
    Efficiency Ratio 56.17% 62.70% 76.15% 64.27% 56.86%  63.46% 58.14%
    Adjusted Efficiency Ratio 50.67% 53.85% 57.67% 59.95% 55.38%  53.56% 55.78%
             


             
    Non-GAAP Measures (unaudited)
    ($ in thousands)
             
     Three Months Ended Nine Months Ended
     September 30,June 30,March 31,December 31,September 30, September 30,September 30,
      2022  2022  2022  2021  2021   2022  2021 
    ROAE and ROATCE:        
    Net income (loss) applicable to common shares$136,119 $110,952 $(29,603)$56,188 $71,746  $217,468 $221,350 
    Amortization of intangibles 7,089  7,170  4,811  2,573  2,779   19,070  8,763 
    Tax effect1 (1,772) (1,793) (877) (643) (695)  (4,768) (2,191)
    Amortization of intangibles, net 5,317  5,378  3,934  1,930  2,084   14,302  6,572 
    Net income (loss) applicable to common shares, excluding intangible amortization 141,436  116,330  (25,669) 58,118  73,830   231,770  227,922 
    Total adjustments, net 14,321  23,583  121,205  4,686  116   156,214  4,471 
    Adjusted tangible net income applicable to common shares$155,757 $139,913 $95,536 $62,804 $73,946  $387,984 $232,393 
    Average shareholders' equity$5,134,153 $5,129,900 $4,218,416 $2,998,825 $3,027,935  $4,830,844 $2,997,081 
    Less: Average preferred equity (243,719) (243,719) (117,210) —  —   (202,013) — 
    Average shareholders' common equity$4,890,434 $4,886,181 $4,101,206 $2,998,825 $3,027,935  $4,628,831 $2,997,081 
    Average goodwill and other intangible assets (2,129,858) (2,136,964) (1,550,624) (1,072,986) (1,075,579)  (1,941,270) (1,078,441)
    Average tangible shareholder's common equity$2,760,576 $2,749,217 $2,550,582 $1,925,839 $1,952,356  $2,687,561 $1,918,640 
    ROAE 11.13% 9.08% (2.89)% 7.49% 9.48%  6.26% 9.85%
    ROAE, adjusted 12.30% 11.01% 8.93% 8.12% 9.49%  10.76% 10.05%
    ROATCE 20.49% 16.93% (4.03)% 12.07% 15.13%  11.50% 15.84%
    ROATCE, adjusted 22.57% 20.36% 14.98% 13.04% 15.16%  19.25% 16.15%
             


          
    Non-GAAP Measures (unaudited)
    ($ in thousands)
          
     As of
     September 30,June 30,March 31,December 31,September 30,
      2022  2022  2022  2021  2021 
    Tangible Common Equity:     
    Shareholders' equity$4,943,383 $5,078,783 $5,232,114 $3,012,018 $3,035,892 
    Less: Preferred equity (243,719) (243,719) (243,719) —  — 
    Shareholders' common equity$4,699,664 $4,835,064 $4,988,395 $3,012,018 $3,035,892 
    Less: Goodwill and other intangible assets (2,135,792) (2,131,815) (2,144,609) (1,071,672) (1,074,245)
    Tangible shareholders' common equity$2,563,872 $2,703,249 $2,843,786 $1,940,346 $1,961,647 
          
    Total assets$46,215,526 $45,748,355 $45,834,648 $24,453,564 $24,018,733 
    Add: Trust overdrafts —  —  1  —  116 
    Less: Goodwill and other intangible assets (2,135,792) (2,131,815) (2,144,609) (1,071,672) (1,074,245)
    Tangible assets$44,079,734 $43,616,540 $43,690,040 $23,381,892 $22,944,604 
          
    Risk-weighted assets2$34,741,765 $33,662,205 $32,341,335 $16,588,469 $16,227,070 
          
    Tangible common equity to tangible assets 5.82% 6.20% 6.51% 8.30% 8.55%
    Tangible common equity to risk-weighted assets2 7.38% 8.03% 8.79% 11.70% 12.09%
    Tangible Common Equity:     
    Common shares outstanding 292,880  292,893  292,959  165,838  165,814 
    Tangible common book value$8.75 $9.23 $9.71 $11.70 $11.83 
          
          
    1 Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state).
    2 September 30, 2022 figures are preliminary.


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