EX-99.1 2 onb_exhibit991er2q22.htm EX-99.1 Document
Exhibit 99.1
Exhibit 99.1
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Old National's Strong 2nd Quarter Driven by
Robust Commercial Loan Growth and Net Interest Margin Expansion
EVANSVILLE, Ind. (July 26, 2022)
Old National Bancorp (NASDAQ: ONB) reports 2Q22 net income applicable to common shares of $111.0 million, diluted EPS of $0.38. Adjusted net income applicable to common shares1 of $134.6 million,
or $0.46 per diluted common share.
CEO COMMENTARY:
“As evidenced by a 17% increase in annualized loan growth and strong net interest margin expansion, this was a very robust earnings quarter for Old National,” said CEO Jim Ryan. “We are especially pleased with the growth opportunities that are taking shape in our Chicagoland market as we begin to realize the full potential of our recently completed merger."
SECOND QUARTER HIGHLIGHTS2:
Net Income
•Net income applicable to common shares of $111.0 million; adjusted net income applicable to common shares1 of $134.6 million
•Earnings per diluted common share ("EPS") of $0.38; adjusted EPS1 of $0.46
Net Interest Income/NIM
•Net interest income on a fully taxable equivalent basis1 of $341.8 million
•Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.33%, up 45 basis points ("bps")
Operating Performance
•Pre-provision net revenue1 (“PPNR”) of $153.5 million; adjusted PPNR1 of $191.7 million
•Noninterest expense of $277.4 million; adjusted noninterest expense1 of $239.3 million
•Efficiency ratio1 of 62.7%; adjusted efficiency ratio1 of 53.9%

Loans and Credit Quality
•End-of-period total loans3 of $29.6 billion, up 17.0% annualized compared to $28.4 billion at March 31, 2022
◦Total commercial loans increased 17.9% annualized, excluding Paycheck Protection Program ("PPP") loans1
◦Total consumer loans4 increased 21.9% annualized
•Second quarter total commercial production of $2.2 billion
•June 30 commercial loan pipeline of $5.9 billion
•Provision for credit losses ("provision") of $9.2 million
•Net charge-offs of $1.8 million, or 2 bps of average loans
•Non-performing loans of 0.78% of total loans
Return Profile & Capital
•Return on average tangible common equity1 of 16.9%; adjusted return on average tangible common equity1 of 20.4%
Notable Items
•$36.6 million of merger-related charges
•$1.5 million of tax credit amortization
1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release 2 Certain comparisons to prior period are not meaningful due to the full quarter impact of the merger with First Midwest Bancorp, Inc. ("First Midwest") 3 Includes loans held for sale 4 Includes consumer and residential real estate loans


RESULTS OF OPERATIONS
Old National Bancorp ("Old National") reported second quarter 2022 net income applicable to common shares of $111.0 million, or $0.38 per diluted share.
Included in the second quarter were pre-tax charges of $36.6 million related to the February 15, 2022 merger with First Midwest. Excluding these charges and debt securities gains from the current quarter, adjusted net income was $134.6 million, or $0.46 per diluted share.
LOANS
Robust broad-based commercial and consumer loan growth.
•Period-end total loans3 were $29.6 billion at June 30, 2022, up 17.0% annualized from $28.4 billion at March 31, 2022, driven by strong commercial and consumer loan production.
•PPP loans decreased $123.8 million to $81.6 million at June 30, 2022, compared to $205.3 million at March 31, 2022.
•Excluding PPP loans, total loans increased 19.1%, annualized, and total commercial loans increased 17.9%, annualized.
•Total commercial loan production in the second quarter was $2.2 billion; period-end commercial pipeline totaled $5.9 billion.
•Consumer loans grew $86.0 million, or 12.9% annualized, to $2.8 billion and residential mortgage loans grew $372.9 million, or 26.1% annualized, to $6.1 billion, driven by strong production which was partially offset by acquired transactional portfolio run-off.
•Average total loans in the second quarter were $28.9 billion, an increase of $8.1 billion from the first quarter of 2022, driven by the full quarter impact of the merger with First Midwest, as well as organic loan growth.

DEPOSITS
Strong deposit franchise with stable balances.
•Period-end total deposits were $35.5 billion at June 30, 2022, consistent with $35.6 billion at March 31, 2022.
•The gradual deployment of commercial and retail deposits was partially offset by the seasonal increase in municipal deposits.
•On average, total deposits in the second quarter increased to $35.8 billion, compared to $26.9 billion for the first quarter of 2022, due primarily to the full quarter impact of the merger.

NET INTEREST INCOME AND MARGIN
Strong loan growth, the higher rate environment and the full quarter impact of the merger favorably impact net interest income and margin.
•Net interest income on a fully taxable equivalent basis increased to $341.8 million in the second quarter of 2022 compared to $226.6 million in the first quarter of 2022, driven by the full quarter impact of the merger, loan growth, higher interest rates, higher accretion income, and an additional day in the quarter.
•Net interest margin on a fully taxable equivalent basis increased 45 bps to 3.33% compared to 2.88% in the first quarter of 2022.
•PPP interest and net fees combined were $1.7 million, or less than 1 bp of net interest margin, in the second quarter of 2022 compared to $3.7 million, or 3 bps of net interest margin, in the first quarter of 2022.
•Accretion income on loans and borrowings was $35.0 million, or 34 bps of net interest margin, in the second quarter of 2022 compared to $15.9 million, or 20 bps of net interest margin, in the first quarter of 2022.
•Interest collected on nonaccrual loans was $3.2 million, or 3 bps of net interest margin, in the second quarter of 2022 compared to $1.1 million, or 1 bp of net interest margin, in the first quarter of 2022.
•Cost of total deposits continue to be low at 0.06%, increasing 1 bp in the second quarter of 2022 and the cost of total interest-bearing deposits increased just 2 bps to 0.09%.

CREDIT QUALITY
Strong credit quality continues to be a hallmark of the Old National franchise.
•Provision expense in the second quarter of 2022 was $9.2 million, compared to $97.6 million in the first quarter of 2022, which included $96.3 million of Current Expected Credit Losses ("CECL") Day 1 non-purchased credit
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deteriorated ("non-PCD") provision expense related to the allowance for credit losses established on acquired non-PCD loans as a result of the merger with First Midwest.
•Net charge-offs in the second quarter were $1.8 million, or 2 bps of average loans, compared to net charge-offs of $2.8 million in the first quarter of 2022, or 5 bps of average loans.
•30+ day delinquencies were 0.17% at the end of the second quarter, down from 0.34% at the end of the first quarter.
•Non-performing loans improved as a percentage of total loans to 0.78% from 0.88% at the end of the first quarter due to the merger.
•Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of June 30, 2022, the remaining discount on these acquired loans was $131 million.
•The allowance for credit losses stood at $288.0 million, or 0.97% of total loans at June 30, 2022, compared to 0.99% at March 31, 2022.

NONINTEREST INCOME
Increase driven by the full quarter impact of the merger.
•Total noninterest income for the second quarter of 2022 was $89.1 million, an increase of $23.9 million from the first quarter of 2022, driven by the full quarter impact of the merger.
•Mortgage banking revenue was impacted by the higher rate environment, lower gain on sale margins and a higher mix of portfolio production.
•Other income higher primarily due to equity investment returns and recoveries on previously charged-off acquired loans.

NONINTEREST EXPENSE
Increase due primarily to full quarter impact of operating costs associated with the merger; efficiency ratio improved.
•Noninterest expense for the second quarter of 2022 was $277.4 million and included $36.6 million of merger-related charges, as well as $1.5 million of tax credit amortization.
•Excluding these items, adjusted noninterest expense for the second quarter was $239.3 million, compared to $172.9 million in the first quarter of 2022, up due primarily to the full quarter impact of the merger, as well as higher incentive accruals reflective of strong performance.
•The second quarter efficiency ratio was 62.7%, while the adjusted efficiency ratio was 53.9% compared to 57.7% for the first quarter of 2022.

INCOME TAXES
•On a fully taxable equivalent basis, income tax expense in the second quarter was $29.3 million, resulting in a 20.3% FTE tax rate, compared to 15.2% in the first quarter of 2022, reflective of higher pre-tax net income.
•Income tax expense included $1.5 million of tax credit benefit.

CAPITAL AND LIQUIDITY
Capital ratios remain strong.
•Preliminary total risk-based capital was 12.03% and preliminary regulatory Tier 1 capital was 10.63%, impacted by strong loan growth, partly offset by retained earnings.
•Tangible common equity to tangible assets was 6.20% at the end of the second quarter compared to 6.51% in the first quarter of 2022, driven by the higher rate environment's impact on unrealized losses within the investment portfolio.
•The Company did not repurchase any shares of common stock during the quarter.
•A low loan to deposit ratio of 83.2%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.

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HEALTH SAVINGS ACCOUNTS SALE
As previously disclosed on June 27, 2022, Old National Bank, a wholly-owned subsidiary of Old National Bancorp, entered into a Custodial Transfer and Asset Purchase Agreement with UMB Bank, n.a. (“UMB”), pursuant to which UMB will acquire Old National Bank’s business of acting as a qualified custodian for, and administering, health savings accounts. Old National Bank serves as custodian for health savings accounts comprised of both investment accounts and deposit accounts. Upon completion of the sale, UMB will pay Old National a premium on deposit account balances transferred at closing, or approximately $95 million based on June 30, 2022 balances. Subject to customary closing conditions and regulatory approval, the parties anticipate completing the sale in the fourth quarter of 2022.
NON-GAAP RECONCILIATIONS
See the "Use of Non-GAAP Financial Measures" section presented later in this release for a discussion of these non-GAAP financial measures.
($ in millions, except EPS, shares in 000s)
2Q22
Adjustments4
Adjusted 2Q22
Total Revenues (FTE)$430.9 $0.1 $431.0 
Less: Provision for Credit Losses9.2 — 9.2 
Less: Noninterest Expenses(277.4)36.6 (240.8)
Income before Income Taxes (FTE)$144.3 $36.7 $181.0 
Income Taxes (FTE)(29.3)(13.1)(42.4)
Net Income (loss)$115.0 $23.6 $138.6 
Preferred Dividends(4.0)— (4.0)
Net Income (loss) applicable to common shares$111.0 $23.6 $134.6 
Weighted Average Diluted Shares Outstanding291,881 — 291,881 
Earnings Per Common Share - Diluted$0.38 $0.08 $0.46 
4 Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state)

($ in millions)
2Q22
1Q22
Net Interest Income$337.5 $222.8 
Add: FTE Adjustment4.3 3.8 
Net Interest Income (FTE)$341.8 $226.6 
Average Earning Assets$41,003.3 $31,483.6 
Net Interest Margin (FTE)3.33 %2.88 %
($ in millions)
2Q22
1Q22
Net Interest Income$337.5 $222.8 
Add: FTE Adjustment4.3 3.8 
Net Interest Income (FTE)$341.8 $226.6 
Add: Total Noninterest Income89.1 65.2 
Less: Noninterest Expense277.4 226.7 
Pre-Provision Net Revenue$153.5 $65.1 
Less: Debt Securities (Gains)/Losses0.1 (0.3)
Add: Merger-Related Charges36.6 52.3 
Add: Amortization of Tax Credit Investments1.5 1.5 
Adjusted Pre-Provision Net Revenue$191.7 $118.6 
($ in millions, end of period balances)
2Q22
1Q22
Commercial Loans$20,721.0 $19,962.0 
Less: PPP Loans(81.6)(205.3)
Commercial Loans, excluding PPP Loans$20,639.4 $19,756.7 
Consumer and Residential Real Estate Loans8,833.0 8,374.3 
Total Loans, excluding PPP Loans$29,472.4 $28,131.0 
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($ in millions)
2Q22
1Q22
Noninterest Expense$277.4 $226.7 
Less: Merger-Related Charges(36.6)(52.3)
Noninterest Expense less Charges$240.8 $174.4 
Less: Amortization of Tax Credit Investments(1.5)(1.5)
Adjusted Noninterest Expense$239.3 $172.9 
Less: Intangible Amortization(7.2)(4.8)
Adjusted Noninterest Expense Less Intangible Amortization$232.1 $168.1 
Net Interest Income$337.5 $222.8 
FTE Adjustment4.3 3.8 
Net Interest Income (FTE)$341.8 $226.6 
Total Noninterest Income89.1 65.2 
Total Revenue (FTE)$430.9 $291.8 
Less: Debt Securities (Gains)/Losses0.1 (0.3)
Adjusted Total Revenue (FTE)$431.0 $291.5 
Efficiency Ratio62.7 %76.2 %
Adjusted Efficiency Ratio53.9 %57.7 %
        
($ in millions)
2Q22
1Q22
Net (Loss) Income Applicable to Common Shares$111.0 $(29.6)
Add: Intangible Amortization (net of tax4)
5.4 3.9 
Tangible Net (Loss) Income Applicable to Common Shares$116.3 $(25.7)
Less: Securities (Gains)/Losses (net of tax4)
0.1 (0.2)
Add: Provision for credit losses - CECL Day 1 non-PCD provision expense5 (net of tax4)
— 78.6 
Add: Merger-Related Charges (net of tax4)
23.5 42.8 
Adjusted Tangible Net Income Applicable to Common Shares$139.9 $95.5 
Average Shareholders’ Common Equity4,886.2 4,101.2 
Less: Average Goodwill(1,992.9)(1,476.7)
Less: Average Intangibles(144.1)(73.9)
Average Tangible Shareholders’ Common Equity$2,749.2 $2,550.6 
Return on Average Common Equity9.1 %(2.9)%
Adjusted Return on Average Common Equity11.0 %8.9 %
Return on Average Tangible Common Equity16.9 %(4.0)%
Adjusted Return on Average Tangible Common Equity20.4 %15.0 %
5 Provision for Credit Losses adjustment refers to the initial increase in allowance for credit losses required
on acquired non-PCD loans through the provision for credit losses as a result of the completed merger
CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, July 26, 2022, to review second quarter 2022 financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (844) 200-6205 or International (929) 526-1599, Access code 498391. A replay of the call will also be available from noon Central Time on July 26 through August 9. To access the replay, dial U.S. (866) 813-9403 or international +44 (204) 525-0658, Access code 946843.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the sixth largest commercial bank headquartered in the Midwest. With approximately $46 billion of assets and $28 billion of assets under management, Old National ranks among the top 35 banking companies based in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for eleven consecutive years.  Since its founding in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients and in the communities it serves. In addition to providing extensive services in retail and commercial banking, Old National offers
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comprehensive wealth management, investment, and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.
USE OF NON-GAAP FINANCIAL MEASURES
The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
The Company presents EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity, all adjusted for certain notable items. These items include the CECL Day 1 non-PCD provision expense, merger related charges associated with completed acquisitions, and net securities gains. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger related charges and the CECL Day 1 non-PCD provision expense from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.
The Company presents loans excluding PPP loans. Management believes that excluding PPP loans is useful as it facilitates better comparability between periods. PPP loans are fully guaranteed by the Small Business Administration and are expected to be forgiven if the applicable criteria are met. Additionally, management believes excluding PPP loans from this item may enhance comparability for peer comparison.
Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes pre-provision net revenues, adjusted may be useful in assessing the Company's underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.
The Company presents adjusted noninterest expense, which excludes merger related charges, ONB Way charges and amortization of tax credit investments. Management believes that excluding these items from noninterest expense may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.
The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.
In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.
Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the previously provided tables and the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.
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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 SchoettlinInvestors: Lynell Walton
(812) 465-7269(812) 464-1366
Kathy.Schoettlin@oldnational.com
Lynell.Walton@oldnational.com
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Financial Highlights (unaudited)
($ and shares in thousands, except per share data)
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,June 30,
20222022202120222021
Income Statement
Net interest income$337,472 $222,785 $149,927 $560,257 $298,047 
Tax equivalent adjustment (1)4,314 3,772 3,470 8,086 6,970 
Net interest income - tax equivalent basis341,786 226,557 153,397 568,343 305,017 
Provision for credit losses9,245 97,569 (4,929)106,814 (22,285)
Noninterest income89,117 65,240 51,508 154,357 108,220 
Noninterest expense277,395 226,756 129,618 504,151 247,358 
Net income (loss) available to common shareholders110,952 (29,603)62,786 81,349 149,604 
Per Common Share Data
Weighted average diluted shares291,881 227,002 165,934 260,253 165,821 
Net income (loss) (diluted)$0.38 $(0.13)$0.38 $0.31 $0.90 
Cash dividends0.14 0.14 0.14 0.28 0.28 
Common dividend payout ratio (2)37 %(108)%37 %90 %31 %
Book value$16.51 $17.03 $18.05 $16.51 $18.05 
Stock price14.79 16.38 17.61 14.79 17.61 
Tangible common book value (3)9.23 9.71 11.55 9.23 11.55 
Performance Ratios
Return on average assets1.0 %(0.3)%1.1 %0.4 %1.3 %
Return on average common equity9.1 %(2.9)%8.4 %3.6 %10.0 %
Return on average tangible common equity (3)16.9 %(4.0)%13.6 %6.8 %16.2 %
Net interest margin (FTE)3.33 %2.88 %2.91 %3.13 %2.93 %
Efficiency ratio (4)62.7 %76.2 %62.1 %68.1 %58.8 %
Net charge-offs (recoveries) to average loans0.02 %0.05 %(0.01)%0.04 %0.00 %
Allowance for credit losses to ending loans0.97 %0.99 %0.79 %0.97 %0.79 %
Non-performing loans to ending loans0.78 %0.88 %1.03 %0.78 %1.03 %
Balance Sheet (EOP)
Total loans$29,553,648$28,336,244$13,784,677$29,553,648$13,784,677
Total assets45,748,35545,834,64823,675,66645,748,35523,675,666
Total deposits35,538,97535,607,39017,868,91135,538,97517,868,911
Total borrowed funds4,384,4114,347,5602,559,1134,384,4112,559,113
Total shareholders' equity5,078,7835,232,1142,991,1185,078,7832,991,118
Capital Ratios (3)
Risk-based capital ratios (EOP):
    Tier 1 common equity9.90 %10.04 %11.95 %9.90 %11.95 %
    Tier 110.63 %10.79 %11.95 %10.63 %11.95 %
    Total12.03 %12.19 %12.73 %12.03 %12.73 %
Leverage ratio (to average assets)8.19 %10.58 %8.38 %8.19 %8.38 %
Total equity to assets (averages)11.22 %12.03 %12.61 %11.57 %12.69 %
Tangible common equity to tangible assets6.20 %6.51 %8.47 %6.20 %8.47 %
Nonfinancial Data
Full-time equivalent employees 4,1964,3332,4654,1962,465
Banking centers266267162266162
(1) Calculated using the federal statutory tax rate in effect of 21% for all periods.
(2) Cash dividends per common share divided by net income per common share (basic).
(3) Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
      June 30, 2022 capital ratios are preliminary.
(4) Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and
      noninterest revenues, excluding net gains from debt securities transactions. This presentation excludes amortization of intangibles
      and net debt securities gains, as is common in other company releases, and better aligns with true operating performance.
FTE - Fully taxable equivalent basis EOP - End of period actual balances PCD - Purchased credit deteriorated
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Income Statement (unaudited)
($ and shares in thousands, except per share data)
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,June 30,
20222022202120222021
Interest income$354,358 $235,505 $160,458 $589,863 $319,695 
Less: interest expense16,886 12,720 10,531 29,606 21,648 
  Net interest income337,472 222,785 149,927 560,257 298,047 
Provision for credit losses9,245 97,569 (4,929)106,814 (22,285)
  Net interest income after provision for credit losses328,227 125,216 154,856 453,443 320,332 
Wealth management fees19,304 14,630 10,734 33,934 20,442 
Service charges on deposit accounts21,144 14,726 8,514 35,870 16,638 
Debit card and ATM fees10,402 6,899 5,583 17,301 10,726 
Mortgage banking revenue6,522 7,245 7,827 13,767 24,352 
Investment product fees8,568 7,322 6,042 15,890 11,906 
Capital markets income7,261 4,442 5,871 11,703 9,586 
Company-owned life insurance4,571 3,524 2,783 8,095 5,497 
Other income11,430 6,110 3,462 17,540 6,388 
Gains (losses) on sales of debt securities(85)342 692 257 2,685 
  Total noninterest income89,117 65,240 51,508 154,357 108,220 
Salaries and employee benefits161,817 124,147 72,640 285,964 140,757 
Occupancy26,496 21,019 14,054 47,515 28,926 
Equipment7,550 5,168 4,506 12,718 8,475 
Marketing9,119 4,276 2,632 13,395 4,694 
Data processing 25,883 18,762 11,697 44,645 24,050 
Communication5,878 3,417 2,411 9,295 5,289 
Professional fees6,336 19,791 8,528 26,127 11,252 
FDIC assessment4,699 2,575 1,226 7,274 2,833 
Amortization of intangibles7,170 4,811 2,909 11,981 5,984 
Amortization of tax credit investments1,525 1,516 1,813 3,041 3,015 
Other expense20,922 21,274 7,202 42,196 12,083 
  Total noninterest expense277,395 226,756 129,618 504,151 247,358 
  Income (loss) before income taxes139,949 (36,300)76,746 103,649 181,194 
  Income tax expense (benefit)24,964 (8,714)13,960 16,250 31,590 
   Net income (loss)$114,985 $(27,586)$62,786 $87,399 $149,604 
 Preferred dividends(4,033)(2,017)— (6,050)— 
 Net income (loss) applicable to common shares$110,952 $(29,603)$62,786 $81,349 $149,604 
Diluted Earnings Per Common Share
Net income (loss)$0.38 $(0.13)$0.38 $0.31 $0.90 
Average Common Shares Outstanding
    Basic290,862227,002165,175259,108165,086
    Diluted291,881227,002165,934260,253165,821
Common shares outstanding at end of period292,893292,959165,732292,893165,732
9

End of Period Balance Sheet (unaudited)
($ in thousands)
June 30,March 31,June 30,
202220222021
Assets
  Federal Reserve Bank account$334,570 $1,545,389 $287,446 
  Money market investments7,774 12,419 15,294 
  Investments:
    Treasury and government-sponsored agencies2,461,173 2,527,568 1,657,079 
    Mortgage-backed securities5,976,921 6,086,853 3,280,983 
    States and political subdivisions1,839,333 1,840,823 1,567,931 
    Other securities719,223 735,550 441,037 
      Total investments10,996,650 11,190,794 6,947,030 
  Loans held for sale, at fair value26,217 39,376 50,121 
  Loans:
    Commercial8,923,983 8,624,253 3,802,943 
    Commercial and agriculture real estate11,796,503 11,337,735 6,187,318 
    Consumer:
      Home equity1,097,852 1,080,885 549,951 
      Other consumer loans1,656,253 1,587,216 1,029,409 
    Subtotal of commercial and consumer loans23,474,591 22,630,089 11,569,621 
    Residential real estate6,079,057 5,706,155 2,215,056 
      Total loans29,553,648 28,336,244 13,784,677 
        Total earning assets40,918,859 41,124,222 21,084,568 
Allowance for credit losses on loans(288,003)(280,507)(109,444)
Non-earning Assets:
    Cash and due from banks455,620 418,744 188,391 
    Premises and equipment, net586,031 584,113 484,879 
    Operating lease right-of-use assets192,196 201,802 72,207 
    Goodwill and other intangible assets2,131,815 2,144,609 1,077,024 
    Company-owned life insurance769,595 766,291 459,565 
    Other assets 982,242 875,374 418,476 
      Total non-earning assets5,117,499 4,990,933 2,700,542 
        Total assets$45,748,355 $45,834,648 $23,675,666 
Liabilities and Equity
  Noninterest-bearing demand deposits$12,388,379 $12,463,136 $6,142,724 
  Interest-bearing:
    Checking and NOW accounts8,473,510 8,296,337 4,921,430 
    Savings accounts6,796,152 6,871,767 3,675,701 
    Money market accounts5,373,318 5,432,139 2,126,537 
    Other time deposits2,479,304 2,544,011 1,002,519 
     Total core deposits35,510,663 35,607,390 17,868,911 
  Brokered deposits28,312 — — 
     Total deposits35,538,975 35,607,390 17,868,911 
  Federal funds purchased and interbank borrowings1,561 1,721 1,523 
  Securities sold under agreements to repurchase476,173 509,275 396,129 
  Federal Home Loan Bank advances3,283,963 3,239,357 1,891,143 
  Other borrowings622,714 597,207 270,318 
     Total borrowed funds4,384,411 4,347,560 2,559,113 
Operating lease liabilities215,188 234,049 81,333 
Accrued expenses and other liabilities530,998 413,535 175,191 
     Total liabilities40,669,572 40,602,534 20,684,548 
Preferred stock, common stock, surplus, and retained earnings5,647,916 5,570,313 2,928,856 
Accumulated other comprehensive income (loss), net of tax(569,133)(338,199)62,262 
     Total shareholders' equity5,078,783 5,232,114 2,991,118 
       Total liabilities and shareholders' equity$45,748,355 $45,834,648 $23,675,666 
10

Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
Three Months EndedThree Months EndedThree Months Ended
June 30, 2022March 31, 2022June 30, 2021
AverageIncome (1)/Yield/AverageIncome (1)/Yield/AverageIncome (1)/Yield/
Earning Assets:BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
  Money market and other interest-earning
      investments$1,088,005 $1,830 0.67 %$1,336,404 $308 0.09 %$232,723 $48 0.08 %
  Investments:
    Treasury and government-sponsored agencies2,487,717 11,818 1.90 %2,195,470 8,219 1.50 %1,637,396 5,967 1.46 %
    Mortgage-backed securities6,008,470 33,534 2.23 %4,869,038 24,377 2.00 %3,287,254 15,067 1.83 %
    States and political subdivisions1,834,189 14,571 3.18 %1,738,652 13,637 3.14 %1,503,447 12,364 3.29 %
    Other securities723,279 5,467 3.02 %605,552 4,144 2.74 %439,197 2,690 2.45 %
       Total investments11,053,655 65,390 2.37 %9,408,712 50,377 2.14 %6,867,294 36,088 2.10 %
  Loans: (2)
    Commercial8,692,646 95,743 4.36 %5,893,907 55,283 3.75 %4,019,553 34,715 3.42 %
    Commercial and agriculture real estate11,547,958 113,545 3.89 %8,749,162 77,408 3.54 %6,146,057 57,655 3.71 %
    Consumer:
      Home equity1,000,373 11,256 4.51 %783,729 7,355 3.81 %538,999 4,201 3.13 %
      Other consumer loans1,715,550 19,222 4.49 %1,320,923 14,560 4.47 %1,034,439 9,747 3.78 %
    Subtotal commercial and consumer loans22,956,527 239,766 4.19 %16,747,721 154,606 3.74 %11,739,048 106,318 3.63 %
    Residential real estate loans5,905,151 51,686 3.50 %3,990,716 33,986 3.41 %2,256,215 21,474 3.81 %
       Total loans28,861,678 291,452 4.01 %20,738,437 188,592 3.64 %13,995,263 127,792 3.62 %
      Total earning assets$41,003,338 $358,672 3.48 %$31,483,553 $239,277 3.04 %$21,095,280 $163,928 3.09 %
Less: Allowance for credit losses on loans(282,943)(168,175)(117,020)
Non-earning Assets:
Cash and due from banks$277,283 $268,836 $238,326 
Other assets4,735,701 3,480,640 2,520,937 
      Total assets$45,733,379 $35,064,854 $23,737,523 
Interest-Bearing Liabilities:
  Checking and NOW accounts$8,445,683 $1,786 0.08 %$6,784,653 $596 0.04 %$4,948,773 $513 0.04 %
  Savings accounts6,835,675 673 0.04 %5,302,015 589 0.05 %3,647,952 492 0.05 %
  Money market accounts5,317,300 1,027 0.08 %3,778,682 691 0.07 %2,081,286 433 0.08 %
  Other time deposits2,491,998 1,627 0.26 %1,745,153 1,318 0.31 %1,024,777 1,293 0.51 %
     Total interest-bearing core deposits23,090,656 5,113 0.09 %17,610,503 3,194 0.07 %11,702,788 2,731 0.09 %
  Brokered deposits7,447 74 0.00 %— — 0.00 %9,890 1 0.05 %
     Total interest-bearing deposits23,098,103 5,187 0.09 %17,610,503 3,194 0.07 %11,712,678 2,732 0.09 %
  Federal funds purchased and interbank borrowings1,222 2 0.47 %1,113 — 0.01 %1,460 — 0.02 %
  Securities sold under agreements to repurchase466,885 85 0.07 %449,939 96 0.09 %406,251 95 0.09 %
 Federal Home Loan Bank advances3,053,423 6,925 0.91 %2,589,984 5,963 0.93 %1,906,078 5,218 1.10 %
 Other borrowings611,772 4,687 3.06 %432,434 3,467 3.21 %269,259 2,486 3.69 %
     Total borrowed funds4,133,302 11,699 1.14 %3,473,470 9,526 1.11 %2,583,048 7,799 1.21 %
     Total interest-bearing liabilities$27,231,405 $16,886 0.25 %$21,083,973 $12,720 0.24 %$14,295,726 $10,531 0.30 %
Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits$12,714,946 $9,294,876 $6,140,424 
Other liabilities657,128 467,589 308,680 
Shareholders' equity5,129,900 4,218,416 2,992,693 
Total liabilities and shareholders' equity$45,733,379 $35,064,854 $23,737,523 
Net interest rate spread3.23 %2.80 %2.79 %
Net interest margin (FTE)3.33 %2.88 %2.91 %
FTE adjustment$4,314 $3,772 $3,470 
(1) Interest income is reflected on a FTE.
(2) Includes loans held for sale.
11

Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
Six Months EndedSix Months Ended
June 30, 2022June 30, 2021
AverageIncome (1)/Yield/AverageIncome (1)/Yield/
Earning Assets:BalanceExpenseRateBalanceExpenseRate
  Money market and other interest-earning
      investments$1,211,518 $2,138 0.36 %$301,025 $136 0.09 %
  Investments:
    Treasury and government-sponsored agencies2,342,401 20,038 1.71 %1,397,791 10,852 1.55 %
    Mortgage-backed securities5,441,902 57,910 2.13 %3,299,713 30,900 1.87 %
    States and political subdivisions1,786,684 28,208 3.16 %1,490,865 24,564 3.30 %
    Other securities664,741 9,611 2.89 %446,266 5,433 2.44 %
       Total investments$10,235,728 $115,767 2.26 %$6,634,635 $71,749 2.16 %
  Loans: (2)
    Commercial7,301,008 151,026 4.11 %3,997,281 70,282 3.50 %
    Commercial and agriculture real estate10,156,292 190,952 3.74 %6,063,872 113,401 3.72 %
    Consumer:
      Home equity892,649 18,611 4.20 %541,510 8,353 3.11 %
      Other consumer loans1,519,327 33,782 4.48 %1,046,518 19,923 3.84 %
    Subtotal commercial and consumer loans19,869,276 394,371 4.00 %11,649,181 211,959 3.67 %
    Residential real estate loans4,953,222 85,673 3.46 %2,264,988 42,821 3.78 %
       Total loans24,822,498 480,044 3.86 %13,914,169 254,780 3.65 %
      Total earning assets$36,269,744 $597,949 3.29 %$20,849,829 $326,665 3.13 %
Less: Allowance for credit losses(225,876)(125,398)
Non-earning Assets:
Cash and due from banks$273,083 $263,336 
Other assets4,111,637 2,503,865 
      Total assets$40,428,588 $23,491,632 
Interest-Bearing Liabilities:
  Checking and NOW accounts$7,619,757 $2,381 0.06 %$4,906,530 $1,124 0.05 %
  Savings accounts6,073,081 1,262 0.04 %3,572,057 979 0.06 %
  Money market accounts4,552,241 1,719 0.08 %2,034,577 855 0.08 %
  Other time deposits2,120,638 2,945 0.28 %1,052,856 2,902 0.56 %
     Total interest-bearing core deposits20,365,717 8,307 0.08 %11,566,020 5,860 0.10 %
  Brokered deposits3,744 74 3.99 %83,427 31 0.08 %
     Total interest-bearing deposits20,369,461 8,381 0.08 %11,649,447 5,891 0.10 %
  Federal funds purchased and interbank borrowings1,168 2 0.25 %1,303 — 0.00 %
  Securities sold under agreements to repurchase458,459 181 0.08 %402,478 215 0.11 %
 Federal Home Loan Bank advances2,822,984 12,888 0.92 %1,915,661 10,627 1.12 %
 Other borrowings522,599 8,154 3.12 %266,152 4,915 3.69 %
     Total borrowed funds3,805,210 21,225 1.12 %2,585,594 15,757 1.23 %
     Total interest-bearing liabilities24,174,671 29,606 0.25 %14,235,041 21,648 0.31 %
Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits$11,014,359 $5,949,412 
Other liabilities562,882 325,781 
Shareholders' equity4,676,676 2,981,398 
Total liabilities and shareholders' equity$40,428,588 $23,491,632 
Net interest rate spread3.04 %2.82 %
Net interest margin (FTE)3.13 %2.93 %
FTE adjustment$8,086 $6,970 
(1) Interest income is reflected on a FTE.
(2) Includes loans held for sale.
12


Asset Quality (EOP) (unaudited)
($ in thousands)
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,June 30,
20222022202120222021
Allowance for credit losses on loans:
Beginning allowance for credit losses$280,507 $107,341 $114,037 $107,341 $131,388 
Allowance established for acquired PCD loans— 78,531 — 78,531 — 
  Provision for credit losses(1)9,254 97,409 (4,929)106,663 (22,285)
     Gross charge-offs(4,096)(4,664)(980)(8,760)(2,550)
     Gross recoveries2,338 1,890 1,316 4,228 2,891 
  Net (charge-offs) recoveries(1,758)(2,774)336 (4,532)341 
Ending allowance for credit losses$288,003 $280,507 $109,444 $288,003 $109,444 
Net charge-offs (recoveries) / average loans(2)0.02 %0.05 %(0.01)%0.04 %0.00 %
Average loans outstanding(2)$28,847,003 $20,725,313 $13,984,295 $24,808,593 $13,900,371 
EOP loans outstanding(2)29,553,648 28,336,244 13,784,677 29,553,648 13,784,677 
Allowance for credit losses / EOP loans(2)0.97 %0.99 %0.79 %0.97 %0.79 %
Underperforming Assets:
   Loans 90 Days and over (still accruing)$882 $1,646 $9 $882 $9 
   Non-performing loans:
      Nonaccrual loans(3)214,924 227,925 128,268 214,924 128,268 
      TDRs still accruing15,665 20,999 14,222 15,665 14,222 
         Total non-performing loans230,589 248,924 142,490 230,589 142,490 
   Foreclosed assets12,618 19,713 520 12,618 520 
Total underperforming assets$244,089 $270,283 $143,019 $244,089 $143,019 
Classified and Criticized Assets:
Nonaccrual loans(3)214,924 227,925 128,268 214,924 128,268 
Substandard accruing loans490,566 518,341 160,995 490,566 160,995 
Loans 90 days and over (still accruing)882 1,646 9 882 9 
Total classified loans - "problem loans"$706,372 $747,912 $289,272 $706,372 $289,272 
Other classified assets25,004 24,676 4,305 25,004 4,305 
Criticized loans - "special mention loans"452,835 507,689 228,264 452,835 228,264 
Total classified and criticized assets$1,184,211 $1,280,277 $521,841 $1,184,211 $521,841 
Non-performing loans / EOP loans(2)0.78 %0.88 %1.03 %0.78 %1.03 %
Allowance to non-performing loans125 %113 %77 %125 %77 %
Under-performing assets / EOP loans(2)0.83 %0.95 %1.04 %0.83 %1.04 %
EOP total assets$45,748,355 $45,834,648 $23,675,666 $45,748,355 $23,675,666 
Under-performing assets / EOP assets0.53 %0.59 %0.60 %0.53 %0.60 %
EOP - End of period actual balances
(1) Excludes $0.2 million of expense to establish an allowance on held-to-maturity securities during the first quarter of 2022.
(2) Excludes loans held for sale.
(3) Includes non-accruing TDRs totaling $24.3 million at June 30, 2022, $23.8 million at March 31, 2022, and $13.6 million at June 30, 2021.
TDR - Troubled debt restructuring
13


Non-GAAP Measures (unaudited)
($ in thousands)
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,June 30,
20222022202120222021
Actual End of Period Balances
GAAP shareholders' common equity $4,835,064 $4,988,395 $2,991,118 $4,835,064 $2,991,118 
Deduct:
Goodwill 1,991,534 1,997,157 1,036,994 1,991,534 1,036,994 
Intangibles 140,281 147,452 40,030 140,281 40,030 
 2,131,815 2,144,609 1,077,024 2,131,815 1,077,024 
Tangible shareholders' common equity $2,703,249 $2,843,786 $1,914,094 $2,703,249 $1,914,094 
Average Balances
GAAP shareholders' common equity $4,886,181 $4,101,206 $2,992,693 $4,495,862 $2,981,398 
Deduct:
Goodwill 1,992,860 1,476,726 1,036,994 1,736,227 1,036,994 
Intangibles 144,104 73,898 41,410 109,195 42,901 
2,136,964 1,550,624 1,078,404 1,845,422 1,079,895 
Average tangible shareholders' common equity $2,749,217 $2,550,582 $1,914,289 $2,650,440 $1,901,503 
Actual End of Period Balances
GAAP assets $45,748,355 $45,834,648 $23,675,666 $45,748,355 $23,675,666 
Add:
Trust overdrafts— 1 24 — 24 
Deduct:
Goodwill 1,991,534 1,997,157 1,036,994 1,991,534 1,036,994 
Intangibles 140,281 147,452 40,030 140,281 40,030 
2,131,815 2,144,609 1,077,024 2,131,815 1,077,024 
Tangible assets $43,616,540 $43,690,040 $22,598,666 $43,616,540 $22,598,666 
Risk-weighted assets (2)$33,662,205 $32,341,335 $15,971,711 $33,662,205 $15,971,711 
GAAP net income (loss) applicable to common shares$110,952 $(29,603)$62,786 $81,349 $149,604 
Add:
Amortization of intangibles (net of tax)5,378 3,934 2,182 9,312 4,488 
Tangible net income (loss) applicable to common shares$116,330 $(25,669)$64,968 $90,661 $154,092 
Tangible Ratios
Return on average tangible common equity16.93 %(4.03)%13.58 %6.84 %16.21 %
Tangible common equity to tangible assets 6.20 %6.51 %8.47 %6.20 %8.47 %
Tangible common equity to risk-weighted assets (2)8.03 %8.79 %11.98 %8.03 %11.98 %
Tangible common book value (1)9.23 9.71 11.55 9.23 11.55 
Tangible common equity presentation includes other comprehensive income as is common in other company releases.
(1) Tangible common shareholders' equity divided by common shares issued and outstanding at period-end.
Tier 1 common equity (2)$3,333,380 $3,246,482 $1,908,053 $3,333,380 $1,908,053 
Risk-weighted assets (2)33,662,205 32,341,335 15,971,711 33,662,205 15,971,711 
Tier 1 common equity to risk-weighted assets (2)9.90 %10.04 %11.95 %9.90 %11.95 %
(2) June 30, 2022 figures are preliminary.
14