• Old National Bancorp Reports First Quarter 2025 Results

    Source: Nasdaq GlobeNewswire / 22 Apr 2025 07:00:08   America/New_York

    EVANSVILLE, Ind., April 22, 2025 (GLOBE NEWSWIRE) --

    Old National Bancorp (NASDAQ: ONB) reports 1Q25 net income applicable to common shares of $140.6 million, diluted EPS of $0.44; $145.5 million and $0.45 on an adjusted1 basis, respectively.

    CEO COMMENTARY:

    "Old National reported better-than-expected first-quarter results driven by our peer-leading deposit franchise, solid loan growth and disciplined expense management," said Chairman and CEO Jim Ryan. "These results demonstrate our ability to navigate a challenging and uncertain economic environment, setting us up favorably as we move into the second quarter and, importantly, as we prepare for our partnership with Bremer Bank which we anticipate closing on May 1, 2025."


    FIRST     QUARTER HIGHLIGHTS2:

    Net Income
    • Net income applicable to common shares of $140.6 million; adjusted net income applicable to common shares1 of $145.5 million
    • Earnings per diluted common share ("EPS") of $0.44; adjusted EPS1 of $0.45
      
    Net Interest
    Income/NIM
    • Net interest income on a fully taxable equivalent basis1 of $393.0 million
    • Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.27%, down 3 basis points ("bps")
      
    Operating
    Performance
    • Pre-provision net revenue1 ("PPNR") of $218.3 million; adjusted PPNR1 of $224.3 million
    • Noninterest expense of $268.5 million; adjusted noninterest expense1 of $262.6 million
    • Efficiency ratio1 of 53.7%; adjusted efficiency ratio1 of 51.8%
      
    Deposits and
    Funding
    • Period-end total deposits of $41.0 billion, up 2.1% annualized; core deposits up 1.7% annualized
    • Granular low-cost deposit franchise; total deposit costs of 191 bps, down 17 bps
      
    Loans and
    Credit
    Quality
    • End-of-period total loans3 of $36.5 billion, up 1.5% annualized
    • Provision for credit losses4 ("provision") of $31.4 million
    • Net charge-offs of $21.6 million, or 24 bps of average loans; 21 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
    • 30+ day delinquencies of 0.22% and nonaccrual loans of 1.29% of total loans
     
    Return
    Profile &
    Capital
    • Return on average tangible common equity1 ("ROATCE") of 15.0%; adjusted ROATCE1 of 15.5%
    • Preliminary regulatory Tier 1 common equity to risk-weighted assets of 11.62%, up 24 bps
      
    Notable
    Items
    • $5.9 million of pre-tax merger-related charges
      

    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 OPERATIONS2
    Old National Bancorp ("Old National") reported first quarter 2025 net income applicable to common shares of $140.6 million, or $0.44 per diluted common share.

    Included in first quarter results were pre-tax charges of $5.9 million for merger-related expenses. Excluding these charges and realized debt securities losses from the current quarter, adjusted net income1 was $145.5 million, or $0.45 per diluted common share.

    DEPOSITS AND FUNDING
    Growth in core deposits driven by normal seasonal patterns in business checking and public funds, along with growth in community deposits.

    • Period-end total deposits were $41.0 billion, up 2.1% annualized; core deposits up 1.7% annualized.
    • On average, total deposits for the first quarter were $40.5 billion, down 6.2% annualized.
    • Granular low-cost deposit franchise; total deposit costs of 191 bps, down 17 bps.
    • A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.

    LOANS
    Balanced commercial loan production, growth and pipeline.

    • Period-end total loans3 were $36.5 billion, up 1.5% annualized; up 2.3% annualized excluding $71 million of commercial real estate loan sales.
    • Total commercial loan production in the first quarter was $1.5 billion; period-end commercial pipeline totaled $3.4 billion.
    • Average total loans in the first quarter were $36.3 billion, a decrease of $128.2 million, or down 1.4% annualized.

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

    • Provision4 expense was $31.4 million compared to $27.0 million.
    • Net charge-offs were $21.6 million, or 24 bps of average loans compared to 21 bps.
      • Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 21 bps compared to 17 bps.
    • 30+ day delinquencies as a percentage of loans were 0.22% compared to 0.27%.
    • Nonaccrual loans as a percentage of total loans were 1.29% compared to 1.23%.
    • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $119.2 million.
    • The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $424.0 million, or 1.16% of total loans, compared to $414.2 million, or 1.14% of total loans.

    NET INTEREST INCOME AND MARGIN
    Lower reflective of lower accretion and number of days.

    • Net interest income on a fully taxable equivalent basis1 decreased to $393.0 million compared to $400.0 million, driven by lower accretion, fewer days in the quarter and earning asset mix, partly offset by lower funding costs.
    • Net interest margin on a fully taxable equivalent basis1 decreased 3 bps to 3.27%.
    • Accretion income on loans and borrowings was $12.3 million, or 10 bps of net interest margin1, compared to $18.5 million, or 15 bps of net interest margin1.
    • Cost of total deposits was 1.91%, decreasing 17 bps and the cost of total interest-bearing deposits decreased 25 bps to 2.46%.

    NONINTEREST INCOME
    Impacted by seasonally lower bank fees and lower company-owned life insurance.

    • Total noninterest income was $93.8 million compared to $95.8 million.
    • Noninterest income decreased 2.1% driven by seasonally lower bank fees and lower company-owned life insurance.
      • Other income was impacted by $4.8 million of gains on the sale of $71 million of commercial real estate loans in the first quarter of 2025 and $8 million of equity investments recoveries in the fourth quarter of 2024.

    NONINTEREST EXPENSE
    Disciplined expense management.

    • Noninterest expense was $268.5 million and included $5.9 million of merger-related charges.
      • Excluding merger-related charges, adjusted noninterest expense1 was $262.6 million, compared to $268.7 million; decrease driven by lower FDIC assessment expense and tax credit amortization.
    • The efficiency ratio1 was 53.7%, while the adjusted efficiency ratio1 was 51.8% compared to 54.4% and 51.8%, respectively.

    INCOME TAXES

    • Income tax expense was $36.9 million, resulting in an effective tax rate of 20.3% compared to 17.3%. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 22.6% compared to 19.8%.
      • The effective tax rate for the first quarter of 2025 was impacted by $1.2 million for the vesting of employee stock compensation and the fourth quarter of 2024 was impacted by $5.9 million for the resolution of tax matters.
    • Income tax expense included $5.3 million of tax credit benefit compared to $5.2 million.

    CAPITAL
    Capital ratios remain strong.

    • Preliminary total risk-based capital up 31 bps to 13.68% and preliminary regulatory Tier 1 capital up 25 bps to 12.23%, as strong retained earnings drive capital.
    • Tangible common equity to tangible assets was 7.76%, up 4.7%.

    CONFERENCE CALL AND WEBCAST
    Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, April 22, 2025, to review first quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 5176690. A replay of the call will also be available from approximately noon Central Time on April 22, 2025 through May 6, 2025. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 5176690.

    ABOUT OLD NATIONAL
    Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $54 billion of assets and $29 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2024, Points of Light named Old National one of "The Civic 50" - an honor reserved for the 50 most community-minded companies in the United States.

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

    The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include merger-related charges associated with completed and pending acquisitions, debt securities gains/losses, separation expense, CECL Day 1 non-PCD provision expense, distribution of excess pension assets expense, and FDIC special assessment 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 from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

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

    The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, separation expense, distribution of excess pension assets expense, and FDIC special assessment expense, as well as adjusted noninterest income, which excludes debt securities gains/losses. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

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

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

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

    FORWARD-LOOKING STATEMENTS
    This communication contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "guidance," "intend," "may," "outlook," "plan," "potential," "predict," "should," "would," and "will," and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies, including trade and tariff 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 possibility that the merger (the “Merger”) between Old National and Bremer Financial Corporation ("Bremer") does not close when expected; the expected cost savings, synergies and other financial benefits from the Merger not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the impact of purchase accounting with respect to the Merger, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks; risks relating to the potential dilutive effect of shares of Old National’s common stock to be issued in the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, the success of revenue-generating and cost reduction initiatives and the diversion of management’s attention from ongoing business operations and opportunities; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; 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, 2024 and other filings with the SEC. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results, performance or outcomes, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

    CONTACTS:  
    Media: Rick Vach Investors: Lynell Durchholz
    (904) 535-9489 (812) 464-1366
    Rick.Vach@oldnational.com Lynell.Durchholz@oldnational.com


         
    Financial Highlights (unaudited)
    ($ and shares in thousands, except per share data)
          
     Three Months Ended
     March 31,December 31,September 30,June 30,March 31,
      2025  2024  2024  2024  2024 
    Income Statement     
    Net interest income$387,643 $394,180 $391,724 $388,421 $356,458 
    FTE adjustment1,3 5,360  5,777  6,144  6,340  6,253 
    Net interest income - tax equivalent basis3 393,003  399,957  397,868  394,761  362,711 
    Provision for credit losses 31,403  27,017  28,497  36,214  18,891 
    Noninterest income 93,794  95,766  94,138  87,271  77,522 
    Noninterest expense 268,471  276,824  272,283  282,999  262,317 
    Net income available to common shareholders$140,625 $149,839 $139,768 $117,196 $116,250 
    Per Common Share Data     
    Weighted average diluted shares 321,016  318,803  317,331  316,461  292,207 
    EPS, diluted$0.44 $0.47 $0.44 $0.37 $0.40 
    Cash dividends 0.14  0.14  0.14  0.14  0.14 
    Dividend payout ratio2 32% 30% 32% 38% 35%
    Book value$19.71 $19.11 $19.20 $18.28 $18.24 
    Stock price 21.19  21.71  18.66  17.19  17.41 
    Tangible book value3 12.54  11.91  11.97  11.05  11.10 
    Performance Ratios     
    ROAA 1.08% 1.14% 1.08% 0.92% 0.98%
    ROAE 9.1% 9.8% 9.4% 8.2% 8.7%
    ROATCE3 15.0% 16.4% 16.0% 14.1% 14.9%
    NIM (FTE)3 3.27% 3.30% 3.32% 3.33% 3.28%
    Efficiency ratio3 53.7% 54.4% 53.8% 57.2% 58.3%
    NCOs to average loans 0.24% 0.21% 0.19% 0.16% 0.14%
    ACL on loans to EOP loans 1.10% 1.08% 1.05% 1.01% 0.95%
    ACL4 to EOP loans 1.16% 1.14% 1.12% 1.08% 1.03%
    NPLs to EOP loans 1.29% 1.23% 1.22% 0.94% 0.98%
    Balance Sheet (EOP)     
    Total loans$36,413,944 $36,285,887 $36,400,643 $36,150,513 $33,623,319 
    Total assets 53,877,944  53,552,272  53,602,293  53,119,645  49,534,918 
    Total deposits 41,034,572  40,823,560  40,845,746  39,999,228  37,699,418 
    Total borrowed funds 5,447,054  5,411,537  5,449,096  6,085,204  5,331,161 
    Total shareholders' equity 6,534,654  6,340,350  6,367,298  6,075,072  5,595,408 
    Capital Ratios3     
    Risk-based capital ratios (EOP):     
    Tier 1 common equity 11.62% 11.38% 11.00% 10.73% 10.76%
    Tier 1 capital 12.23% 11.98% 11.60% 11.33% 11.40%
    Total capital 13.68% 13.37% 12.94% 12.71% 12.74%
    Leverage ratio (average assets) 9.44% 9.21% 9.05% 8.90% 8.96%
    Equity to assets (averages) 12.01% 11.78% 11.60% 11.31% 11.32%
    TCE to TA 7.76% 7.41% 7.44% 6.94% 6.86%
    Nonfinancial Data     
    Full-time equivalent employees 4,028  4,066  4,105  4,267  3,955 
    Banking centers 280  280  280  280  258 
    1 Calculated using the federal statutory tax rate in effect of 21% for all periods.  
    2 Cash dividends per common share divided by net income per common share (basic).  
    3 Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
        March 31, 2025 capital ratios are preliminary.
    4 Includes the allowance for credit losses on loans and unfunded loan commitments.  
          
    FTE - Fully taxable equivalent basis ROAA - Return on average assets ROAE - Return on average equity ROATCE - Return on average tangible common equity NCOs - Net Charge-offs ACL - Allowance for Credit Losses EOP - End of period actual balances NPLs - Non-performing Loans TCE - Tangible common equity TA - Tangible assets


          
    Income Statement (unaudited)
    ($ and shares in thousands, except per share data)
     Three Months Ended
     March 31,December 31,September 30,June 30,March 31,
      2025  2024  2024  2024  2024 
    Interest income$630,399 $662,082 $679,925 $663,663 $595,981 
    Less: interest expense 242,756  267,902  288,201  275,242  239,523 
    Net interest income 387,643  394,180  391,724  388,421  356,458 
    Provision for credit losses 31,403  27,017  28,497  36,214  18,891 
    Net interest income
    after provision for credit losses    		 356,240  367,163  363,227  352,207  337,567 
    Wealth and investment services fees 29,648  30,012  29,117  29,358  28,304 
    Service charges on deposit accounts 21,156  20,577  20,350  19,350  17,898 
    Debit card and ATM fees 9,991  10,991  11,362  10,993  10,054 
    Mortgage banking revenue 6,879  7,026  7,669  7,064  4,478 
    Capital markets income 4,506  5,244  7,426  4,729  2,900 
    Company-owned life insurance 5,381  6,499  5,315  5,739  3,434 
    Other income 16,309  15,539  12,975  10,036  10,470 
    Debt securities gains (losses), net (76) (122) (76) 2  (16)
    Total noninterest income 93,794  95,766  94,138  87,271  77,522 
    Salaries and employee benefits 148,305  146,605  147,494  159,193  149,803 
    Occupancy 29,053  29,733  27,130  26,547  27,019 
    Equipment 8,901  9,325  9,888  8,704  8,671 
    Marketing 11,940  12,653  11,036  11,284  10,634 
    Technology 22,020  21,429  23,343  24,002  20,023 
    Communication 4,134  4,176  4,681  4,480  4,000 
    Professional fees 7,919  11,055  7,278  10,552  6,406 
    FDIC assessment 9,700  11,970  11,722  9,676  11,313 
    Amortization of intangibles 6,830  7,237  7,411  7,425  5,455 
    Amortization of tax credit investments 3,424  4,556  3,277  2,747  2,749 
    Other expense 16,245  18,085  19,023  18,389  16,244 
    Total noninterest expense 268,471  276,824  272,283  282,999  262,317 
    Income before income taxes 181,563  186,105  185,082  156,479  152,772 
    Income tax expense 36,904  32,232  41,280  35,250  32,488 
    Net income$144,659 $153,873 $143,802 $121,229 $120,284 
    Preferred dividends (4,034) (4,034) (4,034) (4,033) (4,034)
    Net income applicable to common shares$140,625 $149,839 $139,768 $117,196 $116,250 
          
    EPS, diluted$0.44 $0.47 $0.44 $0.37 $0.40 
    Weighted Average Common Shares Outstanding     
    Basic 315,925  315,673  315,622  315,585  290,980 
    Diluted 321,016  318,803  317,331  316,461  292,207 
    Common shares outstanding (EOP) 319,236  318,980  318,955  318,969  293,330 
          
          


     
    End of Period Balance Sheet (unaudited)
    ($ in thousands)
     March 31,December 31,September 30,June 30,March 31,
      2025  2024  2024  2024  2024 
    Assets     
    Cash and due from banks$486,061 $394,450 $498,120 $428,665 $350,990 
    Money market and other interest-earning investments 753,719  833,518  693,450  804,381  588,509 
    Investments:     
    Treasury and government-sponsored agencies 2,364,170  2,289,903  2,335,716  2,207,004  2,243,754 
    Mortgage-backed securities 6,458,023  6,175,103  6,085,826  5,890,371  5,566,881 
    States and political subdivisions 1,589,555  1,637,379  1,665,128  1,678,597  1,672,061 
    Other securities 755,348  781,656  783,079  775,623  760,847 
    Total investments 11,167,096  10,884,041  10,869,749  10,551,595  10,243,543 
    Loans held-for-sale, at fair value 40,424  34,483  62,376  66,126  19,418 
    Loans:     
    Commercial 10,650,615  10,288,560  10,408,095  10,332,631  9,648,269 
    Commercial and agriculture real estate 16,135,327  16,307,486  16,356,216  16,016,958  14,653,958 
    Residential real estate 6,771,694  6,797,586  6,757,896  6,894,957  6,661,379 
    Consumer 2,856,308  2,892,255  2,878,436  2,905,967  2,659,713 
    Total loans 36,413,944  36,285,887  36,400,643  36,150,513  33,623,319 
    Allowance for credit losses on loans (401,932) (392,522) (380,840) (366,335) (319,713)
    Premises and equipment, net 584,664  588,970  599,528  601,945  564,007 
    Goodwill and other intangible assets 2,289,268  2,296,098  2,305,084  2,306,204  2,095,511 
    Company-owned life insurance 859,211  859,851  863,723  862,032  767,423 
    Accrued interest receivable and other assets 1,685,489  1,767,496  1,690,460  1,714,519  1,601,911 
    Total assets$53,877,944 $53,552,272 $53,602,293 $53,119,645 $49,534,918 
          
    Liabilities and Equity     
    Noninterest-bearing demand deposits$9,186,314 $9,399,019 $9,429,285 $9,336,042 $9,257,709 
    Interest-bearing:     
    Checking and NOW accounts 7,736,014  7,538,987  7,314,245  7,680,865  7,236,667 
    Savings accounts 4,715,329  4,753,279  4,781,447  4,983,811  5,020,095 
    Money market accounts 11,638,653  11,807,228  11,601,461  10,485,491  10,234,113 
    Other time deposits 6,212,898  5,819,970  6,010,070  5,688,432  4,760,659 
    Total core deposits 39,489,208  39,318,483  39,136,508  38,174,641  36,509,243 
    Brokered deposits 1,545,364  1,505,077  1,709,238  1,824,587  1,190,175 
    Total deposits 41,034,572  40,823,560  40,845,746  39,999,228  37,699,418 
          
    Federal funds purchased and interbank borrowings 170  385  135,263  250,154  50,416 
    Securities sold under agreements to repurchase 290,256  268,975  244,626  240,713  274,493 
    Federal Home Loan Bank advances 4,514,354  4,452,559  4,471,153  4,744,560  4,193,039 
    Other borrowings 642,274  689,618  598,054  849,777  813,213 
    Total borrowed funds 5,447,054  5,411,537  5,449,096  6,085,204  5,331,161 
    Accrued expenses and other liabilities 861,664  976,825  940,153  960,141  908,931 
    Total liabilities 47,343,290  47,211,922  47,234,995  47,044,573  43,939,510 
    Preferred stock, common stock, surplus, and retained earnings 7,183,163  7,086,393  6,971,054  6,866,480  6,375,036 
    Accumulated other comprehensive income (loss), net of tax (648,509) (746,043) (603,756) (791,408) (779,628)
    Total shareholders' equity 6,534,654  6,340,350  6,367,298  6,075,072  5,595,408 
    Total liabilities and shareholders' equity$53,877,944 $53,552,272 $53,602,293 $53,119,645 $49,534,918 
     


                 
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
                 
                 
      Three Months Ended Three Months Ended Three Months Ended
      March 31, 2025 December 31, 2024 March 31, 2024
      AverageIncome1/Yield/ AverageIncome1/Yield/ AverageIncome1/Yield/
    Earning Assets: BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate
    Money market and other interest-earning investments $791,067 $8,8154.52% $1,072,509 $12,8434.76% $757,244 $9,9855.30%
    Investments:            
    Treasury and government-sponsored agencies  2,318,869  20,0193.45%  2,325,120  20,8413.59%  2,362,477  23,2663.94%
    Mortgage-backed securities  6,287,825  54,5233.47%  6,149,775  50,4163.28%  5,357,085  38,8882.90%
    States and political subdivisions  1,610,819  13,2423.29%  1,654,591  13,6983.31%  1,680,175  13,9763.33%
    Other securities  770,839  10,5125.45%  783,708  10,5185.37%  770,438  12,1736.32%
    Total investments  10,988,352  98,2963.58%  10,913,194  95,4733.50%  10,170,175  88,3033.47%
    Loans:2            
    Commercial  10,397,991  165,5956.37%  10,401,056  176,9966.81%  9,540,385  167,2637.01%
    Commercial and agriculture real estate  16,213,606  245,9356.07%  16,326,802  263,0626.44%  14,368,370  230,0866.41%
    Residential real estate loans  6,815,091  67,6483.97%  6,814,829  68,3464.01%  6,693,814  63,0033.76%
    Consumer  2,871,213  49,4706.99%  2,883,413  51,1397.06%  2,645,091  43,5946.63%
    Total loans  36,297,901  528,6485.83%  36,426,100  559,5436.14%  33,247,660  503,9466.07%
                 
    Total earning assets $48,077,320 $635,7595.30% $48,411,803 $667,8595.52% $44,175,079 $602,2345.46%
                 
    Less: Allowance for credit losses on loans  (398,765)    (382,799)    (313,470)  
                 
    Non-earning Assets:            
    Cash and due from banks $372,428    $370,932    $362,676   
    Other assets  5,394,600     5,402,359     4,961,595   
                 
    Total assets $53,445,583    $53,802,295    $49,185,880   
                 
    Interest-Bearing Liabilities:            
    Checking and NOW accounts $7,526,294 $23,8501.29% $7,338,532 $23,7471.29% $7,141,201 $25,2521.42%
    Savings accounts  4,692,239  3,6080.31%  4,750,387  4,4670.37%  5,025,400  5,0170.40%
    Money market accounts  11,664,650  88,3813.07%  11,900,305  103,8183.47%  9,917,572  94,2133.82%
    Other time deposits  5,996,108  56,4853.82%  5,985,911  61,6794.10%  4,689,136  47,4324.07%
    Total interest-bearing core deposits  29,879,291  172,3242.34%  29,975,135  193,7112.57%  26,773,309  171,9142.58%
    Brokered deposits  1,546,756  18,1714.76%  1,662,698  21,5795.16%  1,047,140  13,5255.19%
    Total interest-bearing deposits  31,426,047  190,4952.46%  31,637,833  215,2902.71%  27,820,449  185,4392.68%
                 
    Federal funds purchased and interbank borrowings  148,130  1,6254.45%  433  2321.13%  69,090  9615.59%
    Securities sold under agreements to repurchase  272,961  5510.82%  249,133  5840.93%  296,236  9171.25%
    Federal Home Loan Bank advances  4,464,590  41,8963.81%  4,461,733  43,7883.90%  4,386,492  41,1673.77%
    Other borrowings  675,759  8,1894.91%  669,580  8,2174.88%  825,846  11,0395.38%
    Total borrowed funds  5,561,440  52,2613.81%  5,380,879  52,6123.89%  5,577,664  54,0843.90%
                 
    Total interest-bearing liabilities $36,987,487 $242,7562.66% $37,018,712 $267,9022.88% $33,398,113 $239,5232.88%
                 
    Noninterest-Bearing Liabilities and Shareholders' Equity           
    Demand deposits $9,096,676    $9,509,446    $9,258,136   
    Other liabilities  944,935     935,184     964,089   
    Shareholders' equity  6,416,485     6,338,953     5,565,542   
                 
    Total liabilities and shareholders' equity $53,445,583    $53,802,295    $49,185,880   
                 
    Net interest rate spread   2.64%   2.64%   2.58%
                 
    Net interest margin (GAAP)   3.23%   3.26%   3.23%
                 
    Net interest margin (FTE)3   3.27%   3.30%   3.28%
                 
    FTE adjustment  $5,360   $5,777   $6,253 
                 
    1 Interest income is reflected on a FTE basis. 
    2 Includes loans held-for-sale. 
    3 Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. 
     


          
    Asset Quality (EOP) (unaudited)
    ($ in thousands)
          
     Three Months Ended
     March 31,December 31,September 30,June 30,March 31,
      2025  2024  2024  2024  2024 
    Allowance for credit losses:     
    Beginning allowance for credit losses on loans$392,522 $380,840 $366,335 $319,713 $307,610 
    Allowance established for acquired PCD loans —  —  2,803  23,922  — 
    Provision for credit losses on loans 31,026  30,417  29,176  36,745  23,853 
    Gross charge-offs (24,540) (21,278) (18,965) (17,041) (14,020)
    Gross recoveries 2,924  2,543  1,491  2,996  2,270 
    NCOs (21,616) (18,735) (17,474) (14,045) (11,750)
    Ending allowance for credit losses on loans$401,932 $392,522 $380,840 $366,335 $319,713 
    Beginning allowance for credit losses on unfunded commitments$21,654 $25,054 $25,733 $26,264 $31,226 
    Provision (release) for credit losses on unfunded commitments 377  (3,400) (679) (531) (4,962)
    Ending allowance for credit losses on unfunded commitments$22,031 $21,654 $25,054 $25,733 $26,264 
    Allowance for credit losses$423,963 $414,176 $405,894 $392,068 $345,977 
    Provision for credit losses on loans$31,026 $30,417 $29,176 $36,745 $23,853 
    Provision (release) for credit losses on unfunded commitments 377  (3,400) (679) (531) (4,962)
    Provision for credit losses$31,403 $27,017 $28,497 $36,214 $18,891 
    NCOs / average loans1 0.24% 0.21% 0.19% 0.16% 0.14%
    Average loans1$36,284,059 $36,410,414 $36,299,544 $36,053,845 $33,242,739 
    EOP loans1 36,413,944  36,285,887  36,400,643  36,150,513  33,623,319 
    ACL on loans / EOP loans1 1.10% 1.08% 1.05% 1.01% 0.95%
    ACL / EOP loans1 1.16% 1.14% 1.12% 1.08% 1.03%
    Underperforming Assets:     
    Loans 90 days and over (still accruing)$6,757 $4,060 $1,177 $5,251 $2,172 
    Nonaccrual loans 469,211  447,979  443,597  340,181  328,645 
    Foreclosed assets 6,301  4,294  4,077  8,290  9,344 
    Total underperforming assets$482,269 $456,333 $448,851 $353,722 $340,161 
    Classified and Criticized Assets:     
    Nonaccrual loans$469,211 $447,979 $443,597 $340,181 $328,645 
    Substandard loans (still accruing) 1,479,630  1,073,413  1,074,243  841,087  626,157 
    Loans 90 days and over (still accruing) 6,757  4,060  1,177  5,251  2,172 
    Total classified loans - "problem loans" 1,955,598  1,525,452  1,519,017  1,186,519  956,974 
    Other classified assets 53,239  58,954  59,485  60,772  54,392 
    Special Mention 828,314  908,630  837,543  967,655  827,419 
    Total classified and criticized assets$2,837,151 $2,493,036 $2,416,045 $2,214,946 $1,838,785 
    Loans 30-89 days past due (still accruing)$72,517 $93,141 $91,750 $51,712 $53,112 
    Nonaccrual loans / EOP loans1 1.29% 1.23% 1.22% 0.94% 0.98%
    ACL / nonaccrual loans 90% 92% 92% 115% 105%
    Under-performing assets/EOP loans1 1.32% 1.26% 1.23% 0.98% 1.01%
    Under-performing assets/EOP assets 0.90% 0.85% 0.84% 0.67% 0.69%
    30+ day delinquencies/EOP loans1 0.22% 0.27% 0.26% 0.16% 0.16%
          
    1 Excludes loans held-for-sale.   
          

            

            

          
    Non-GAAP Measures (unaudited)
    ($ and shares in thousands, except per share data)
          
     Three Months Ended
     March 31,December 31,September 30,June 30,March 31,
      2025  2024  2024  2024  2024 
    Earnings Per Share:     
    Net income applicable to common shares$140,625 $149,839 $139,768 $117,196 $116,250 
    Adjustments:     
    Merger-related charges 5,856  8,117  6,860  19,440  2,908 
    Tax effect1 (1,089) (2,058) (1,528) (4,413) (710)
    Merger-related charges, net 4,767  6,059  5,332  15,027  2,198 
    Debt securities (gains) losses 76  122  76  (2) 16 
    Tax effect1 (14) (31) (17) 1  (4)
    Debt securities (gains) losses, net 62  91  59  (1) 12 
    Separation expense —  —  2,646  —  — 
    Tax effect1 —  —  (589) —  — 
    Separation expense, net —  —  2,057  —  — 
    CECL Day 1 non-PCD provision expense —  —  —  15,312  — 
    Tax effect1 —  —  —  (3,476) — 
    CECL Day 1 non-PCD provision expense, net —  —  —  11,836  — 
    Distribution of excess pension assets —  —  —  —  13,318 
    Tax effect1 —  —  —  —  (3,250)
    Distribution excess pension assets, net —  —  —  —  10,068 
    FDIC special assessment —  —  —  —  2,994 
    Tax effect1 —  —  —  —  (731)
    FDIC special assessment, net —  —  —  —  2,263 
    Total adjustments, net 4,829  6,150  7,448  26,862  14,541 
    Net income applicable to common shares, adjusted$145,454 $155,989 $147,216 $144,058 $130,791 
    Weighted average diluted common shares outstanding 321,016  318,803  317,331  316,461  292,207 
    EPS, diluted$0.44 $0.47 $0.44 $0.37 $0.40 
    Adjusted EPS, diluted$0.45 $0.49 $0.46 $0.46 $0.45 
    NIM:     
    Net interest income$387,643 $394,180 $391,724 $388,421 $356,458 
    Add: FTE adjustment2 5,360  5,777  6,144  6,340  6,253 
    Net interest income (FTE)$393,003 $399,957 $397,868 $394,761 $362,711 
    Average earning assets$48,077,320 $48,411,803 $47,905,463 $47,406,849 $44,175,079 
    NIM (GAAP) 3.23% 3.26% 3.27% 3.28% 3.23%
    NIM (FTE) 3.27% 3.30% 3.32% 3.33% 3.28%
          
    Refer to last page of Non-GAAP reconciliations for footnotes.   


          
    Non-GAAP Measures (unaudited)
    ($ in thousands)
          
     Three Months Ended
     March 31,December 31,September 30,June 30,March 31,
      2025  2024  2024  2024  2024 
    PPNR:     
    Net interest income (FTE)2$393,003 $399,957 $397,868 $394,761 $362,711 
    Add: Noninterest income 93,794  95,766  94,138  87,271  77,522 
    Total revenue (FTE) 486,797  495,723  492,006  482,032  440,233 
    Less: Noninterest expense (268,471) (276,824) (272,283) (282,999) (262,317)
    PPNR$218,326 $218,899 $219,723 $199,033 $177,916 
    Adjustments:     
    Debt securities (gains) losses$76 $122 $76 $(2)$16 
    Noninterest income adjustments 76  122  76  (2) 16 
    Adjusted noninterest income 93,870  95,888  94,214  87,269  77,538 
    Adjusted revenue$486,873 $495,845 $492,082 $482,030 $440,249 
    Adjustments:     
    Merger-related charges$5,856 $8,117 $6,860 $19,440 $2,908 
    Separation expense —  —  2,646  —  — 
    Distribution of excess pension assets —  —  —  —  13,318 
    FDIC Special Assessment —  —  —  —  2,994 
    Noninterest expense adjustments 5,856  8,117  9,506  19,440  19,220 
    Adjusted total noninterest expense (262,615) (268,707) (262,777) (263,559) (243,097)
    Adjusted PPNR$224,258 $227,138 $229,305 $218,471 $197,152 
    Efficiency Ratio:     
    Noninterest expense$268,471 $276,824 $272,283 $282,999 $262,317 
    Less: Amortization of intangibles (6,830) (7,237) (7,411) (7,425) (5,455)
    Noninterest expense, excl. amortization of intangibles 261,641  269,587  264,872  275,574  256,862 
    Less: Amortization of tax credit investments (3,424) (4,556) (3,277) (2,747) (2,749)
    Less: Noninterest expense adjustments (5,856) (8,117) (9,506) (19,440) (19,220)
    Adjusted noninterest expense, excluding amortization$252,361 $256,914 $252,089 $253,387 $234,893 
    Total revenue (FTE)2$486,797 $495,723 $492,006 $482,032 $440,233 
    Less: Debt securities (gains) losses 76  122  76  (2) 16 
    Total adjusted revenue$486,873 $495,845 $492,082 $482,030 $440,249 
    Efficiency Ratio 53.7% 54.4% 53.8% 57.2% 58.3%
    Adjusted Efficiency Ratio 51.8% 51.8% 51.2% 52.6% 53.4%
          
    Refer to last page of Non-GAAP reconciliations for footnotes.   


          
    Non-GAAP Measures (unaudited)
    ($ in thousands)
          
     Three Months Ended
     March 31,December 31,September 30,June 30,March 31,
      2025  2024  2024  2024  2024 
    ROAE and ROATCE:     
    Net income applicable to common shares$140,625 $149,839 $139,768 $117,196 $116,250 
    Amortization of intangibles 6,830  7,237  7,411  7,425  5,455 
    Tax effect1 (1,708) (1,809) (1,853) (1,856) (1,364)
    Amortization of intangibles, net 5,122  5,428  5,558  5,569  4,091 
    Net income applicable to common shares, excluding intangibles amortization 145,747  155,267  145,326  122,765  120,341 
    Total adjustments, net (see pg.12) 4,829  6,150  7,448  26,862  14,541 
    Adjusted net income applicable to common shares, excluding intangibles amortization$150,576 $161,417 $152,774 $149,627 $134,882 
    Average shareholders' equity$6,416,485 $6,338,953 $6,190,071 $5,978,976 $5,565,542 
    Less: Average preferred equity (243,719) (243,719) (243,719) (243,719) (243,719)
    Average shareholders' common equity$6,172,766 $6,095,234 $5,946,352 $5,735,257 $5,321,823 
    Average goodwill and other intangible assets (2,292,526) (2,301,177) (2,304,597) (2,245,405) (2,098,338)
    Average tangible shareholder's common equity$3,880,240 $3,794,057 $3,641,755 $3,489,852 $3,223,485 
    ROAE 9.1% 9.8% 9.4% 8.2% 8.7%
    ROAE, adjusted 9.4% 10.2% 9.9% 10.0% 9.8%
    ROATCE 15.0% 16.4% 16.0% 14.1% 14.9%
    ROATCE, adjusted 15.5% 17.0% 16.8% 17.1% 16.7%
          
    Refer to last page of Non-GAAP reconciliations for footnotes.   


          
    Non-GAAP Measures (unaudited)
    ($ in thousands)
          
     As of
     March 31,December 31,September 30,June 30,March 31,
      2025  2024  2024  2024  2024 
    Tangible Common Equity:     
    Shareholders' equity$6,534,654 $6,340,350 $6,367,298 $6,075,072 $5,595,408 
    Less: Preferred equity (243,719) (243,719) (243,719) (243,719) (243,719)
    Shareholders' common equity$6,290,935 $6,096,631 $6,123,579 $5,831,353 $5,351,689 
    Less: Goodwill and other intangible assets (2,289,268) (2,296,098) (2,305,084) (2,306,204) (2,095,511)
    Tangible shareholders' common equity$4,001,667 $3,800,533 $3,818,495 $3,525,149 $3,256,178 
          
    Total assets$53,877,944 $53,552,272 $53,602,293 $53,119,645 $49,534,918 
    Less: Goodwill and other intangible assets (2,289,268) (2,296,098) (2,305,084) (2,306,204) (2,095,511)
    Tangible assets$51,588,676 $51,256,174 $51,297,209 $50,813,441 $47,439,407 
          
    Risk-weighted assets3$40,266,670 $40,314,805 $40,584,608 $40,627,117 $37,845,139 
          
    Tangible common equity to tangible assets 7.76% 7.41% 7.44% 6.94% 6.86%
    Tangible common equity to risk-weighted assets3 9.94% 9.43% 9.41% 8.68% 8.60%
    Tangible Common Book Value:     
    Common shares outstanding 319,236  318,980  318,955  318,969  293,330 
    Tangible common book value$12.54 $11.91 $11.97 $11.05 $11.10 
          
    1 Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state).
    2 Calculated using the federal statutory tax rate in effect of 21% for all periods.
    3 March 31, 2025 figures are preliminary.

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