EX-99.1 2 onb_exhibit991er4q22.htm EX-99.1 Document
Exhibit 99.1
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Old National Reports 43% EPS Growth from 3Q22, 10% on an Adjusted Basis1, Driven by Commercial Loan Growth, Net Interest Margin Expansion and Expense Discipline
EVANSVILLE, Ind. (January 24, 2023)
Old National Bancorp (NASDAQ: ONB) reports 4Q22 net income applicable to common shares of $196.7 million, diluted EPS of $0.67; $164.3 million and $0.56 on an adjusted1 basis, respectively. Full-year net income applicable to common shares of $414.2 million, diluted EPS of $1.50; $540.9 million and $1.96 on an adjusted1 basis, respectively.
CEO COMMENTARY:
“Old National's strong 4th quarter puts the finishing touches on a transformational year of growth marked by disciplined, consistent execution,” said CEO Jim Ryan. “We capped off 2022 with robust loan growth, impressive net interest margin expansion, peer leading return on average tangible common equity, excellent credit metrics and a record efficiency ratio."
FOURTH QUARTER HIGHLIGHTS2:
Net Income
•Net income applicable to common shares of $196.7 million; adjusted net income applicable to common shares1 of $164.3 million
•Earnings per diluted common share ("EPS") of $0.67; adjusted EPS1 of $0.56
Net Interest Income/NIM
•Net interest income on a fully taxable equivalent basis1 of $396.5 million
•Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.85%, up 14 basis points ("bps")
Operating Performance
•Pre-provision net revenue1 (“PPNR”) of $278.8 million; adjusted PPNR1 of $240.7 million
•Noninterest expense of $282.7 million; adjusted noninterest expense1 of $230.3 million
•Efficiency ratio1 of 49.1%; adjusted efficiency ratio1 of 47.5%

Loans and Credit Quality
•End-of-period total loans3 of $31.1 billion, up 7.7% annualized compared to September 30, 2022
◦Total commercial loans increased 7.9% annualized
◦Total consumer loans4 increased 7.5% annualized
•Total commercial production of $2.7 billion
•Commercial loan pipeline of $4.6 billion
•Provision for credit losses5 ("provision") of $11.4 million
•Net charge-offs of $4.0 million, or 5 bps of average loans
•Non-performing loans of 0.81% of total loans
Return Profile & Capital
•Return on average tangible common equity1 of 31.5%; adjusted return on average tangible common equity1 of 26.5%
Notable Items
•$90.7 million gain on sale of health savings accounts
•$26.8 million of property optimization charges
•$20.3 million of merger-related charges
•$5.3 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 5 Includes the provision for unfunded commitments


RESULTS OF OPERATIONS
Old National Bancorp ("Old National") reported fourth quarter 2022 net income applicable to common shares of $196.7 million, or $0.67 per diluted common share.
Included in the fourth quarter was a $90.7 million pre-tax gain on the November 18, 2022 sale of health savings accounts, as well as pre-tax charges of $26.8 million for property optimization and $20.3 million related to the February 15, 2022 merger with First Midwest. Excluding these transactions and realized debt securities losses from the current quarter, adjusted net income was $164.3 million, or $0.56 per diluted common share.
LOANS
Robust broad-based commercial and consumer loan growth.
•Period-end total loans3 were $31.1 billion at December 31, 2022, up 7.7% annualized from $30.5 billion at September 30, 2022, driven by strong commercial loan growth of 7.9%.
•Total commercial loan production in the fourth quarter was $2.7 billion; period-end commercial pipeline totaled $4.6 billion.
•Total consumer loans4 were $9.2 billion at December 31, 2022, up 7.5% annualized from September 30, 2022.
◦Consumer loans decreased $25.4 million, or 3.7% annualized, and residential mortgage loans grew $193.1 million, or 12.3% annualized, driven by strong production.
•Average total loans in the fourth quarter were $30.7 billion, an increase of $838.0 million from the third quarter of 2022.

DEPOSITS
Strong deposit franchise impacted by the sale of health savings accounts and seasonal deposit outflows late in the quarter.
•On average, total deposits for the fourth quarter were $35.4 billion, a decrease of 0.9% excluding $382 million of health savings accounts sold in November.
•Period-end total deposits were $35.0 billion at December 31, 2022, compared to $36.1 billion at September 30, 2022, down due to the sale of health savings accounts, client deployment of excess liquidity and seasonal deposit outflows.

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 $396.5 million in the fourth quarter of 2022 compared to $381.5 million in the third quarter of 2022, driven by higher interest rates and loan growth, partially offset by lower accretion income on loans.
•Net interest margin on a fully taxable equivalent basis increased 14 bps to 3.85% compared to 3.71% for the third quarter of 2022.
•Accretion income on loans and borrowings was $10.4 million, or 10 bps of net interest margin, in the fourth quarter of 2022 compared to $25.4 million, or 25 bps of net interest margin, in the third quarter of 2022.
•Cost of total deposits was 0.34%, increasing 22 bps and the cost of total interest-bearing deposits increased 34 bps to 0.52% in the fourth quarter of 2022.

CREDIT QUALITY
Strong credit quality continues to be a hallmark of the Old National franchise.
•Provision5 expense in the fourth quarter of 2022 was $11.4 million, compared to $15.5 million in the third quarter of 2022, reflecting strong loan and unfunded commitment growth.
•Net charge-offs in the fourth quarter were $4.0 million, or 5 bps of average loans compared to net charge-offs of $7.6 million in the third quarter of 2022, or 10 bps of average loans.
◦Excluding purchased credit deteriorated ("PCD") loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 5 bps and 2 bps for the fourth and third quarters of 2022, respectively.
•30+ day delinquencies were 0.19% at the end of the fourth quarter, compared to 0.22% at the end of the third quarter.
•Non-performing loans as a percentage of total loans were 0.81% consistent with the third quarter of 2022.
2

•Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of December 31, 2022, the remaining discount on these acquired loans was $102 million.
•The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $335.9 million, or 1.08% of total loans at December 31, 2022, consistent with September 30, 2022.

NONINTEREST INCOME
Decrease driven by lower capital markets, mortgage fees and service charges.
•Total noninterest income for the fourth quarter of 2022 was $165.0 million and included a $90.7 million pre-tax gain on the sale of health savings accounts.
•Excluding this item and realized debt securities losses, adjusted noninterest income for the fourth quarter was $74.5 million, compared to $80.6 million for the third quarter of 2022, down due primarily to lower capital markets income, service charge program enhancements and the sale of health savings accounts. In addition, mortgage banking revenue continues to be impacted by the higher rate environment, as well as lower production and gain on sale margins.

NONINTEREST EXPENSE
Disciplined expense management; merger cost savings fully achieved in the fourth quarter of 2022 (annualized).
•Noninterest expense for the fourth quarter of 2022 was $282.7 million and included $26.8 million for property optimization, $20.3 million of merger-related charges, and $5.3 million of tax credit amortization.
•Excluding these items, adjusted noninterest expense for the fourth quarter was $230.3 million, compared to $237.0 million for the third quarter of 2022, down due primarily to fully achieved merger cost saves in the fourth quarter of 2022 annualized, partly offset by performance-driven incentive accrual true-up.
•The fourth quarter efficiency ratio1 was 49.1%, while the adjusted efficiency ratio1 was 47.5% for the fourth quarter of 2022 compared to 55.3% and 49.8%, respectively, for the third quarter of 2022.

INCOME TAXES
•Income tax expense in the fourth quarter of 2022 was $61.3 million, resulting in an effective tax rate of 23.4% compared to 21.7% in the third quarter of 2022. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 24.8% in the fourth quarter compared to 25.3% in the third quarter.
•Income tax expense included $6.1 million of tax credit benefit.

CAPITAL AND LIQUIDITY
Capital ratios remain strong.
•Preliminary total risk-based capital was 12.02% and preliminary regulatory Tier 1 capital was 10.71%, impacted by retained earnings including the $90.7 million pre-tax gain on the sale of health savings accounts, partly offset by strong loan growth. In addition, total risk-based capital was impacted by the phase-out of $2.4 million of Tier 2 subordinated debt.
•Tangible common equity to tangible assets was 6.18% at the end of the fourth quarter compared to 5.82% in the third quarter of 2022, impacted by the $90.7 million pre-tax gain on the sale of health savings accounts.
•The Company did not repurchase any shares of common stock during the quarter.
•A loan to deposit ratio of 89.0%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.
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HEALTH SAVINGS ACCOUNTS SALE
On November 18, 2022, Old National Bank, a wholly-owned subsidiary of Old National Bancorp, completed its previously announced transaction with UMB Bank, n.a. (“UMB”), pursuant to which UMB acquired Old National Bank’s business of acting as a qualified custodian for, and administering, health savings accounts, which totaled $382 million. Upon completion, Old National Bank recorded a pre-tax gain of $90.7 million that is recorded in noninterest income.
PROPERTY OPTIMIZATION
During the fourth quarter of 2022, Old National initiated certain property optimization actions that included the closure and consolidation of certain branches as well as other real estate repositioning across our footprint. These actions resulted in pre-tax charges of $26.8 million for the fourth quarter of 2022 that are associated with valuation adjustments related to these locations and are recorded in noninterest expense.
SERVICE CHARGE PROGRAM ENHANCEMENTS
In early December, Old National implemented several enhancements to its overdraft protection programs to provide clients with more flexibility. The changes included the elimination of the non-sufficient fund ("NSF") fee when an item is returned, among other modifications that benefit consumers.
CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, January 24, 2023, to review fourth quarter and full year 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 379396. A replay of the call will also be available from noon Central Time on January 24, 2023 through February 7, 2023. To access the replay, dial U.S. (866) 813-9403 or international +44 (204) 525-0658, Access code 104806.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank, which is the sixth largest commercial bank headquartered in the Midwest. With approximately $47 billion of assets and $28 billion of assets under management, Old National ranks among the top 35 banking companies headquartered in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for 11 consecutive years.  Since its founding, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients and in the communities it serves. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment, and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.
USE OF NON-GAAP FINANCIAL MEASURES
The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.
The Company presents EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity, all adjusted for certain notable items. These items include the current expected credit loss ("CECL") Day 1 non-PCD provision expense, merger related charges associated with completed acquisitions, gain on sale of health savings accounts, property optimization charges, net securities gains and ONB Way charges. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger related charges 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.
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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, property optimization charges, amortization of tax credit investments and ONB Way charges, as well as adjusted noninterest income, which excludes the gain on sale of health savings accounts and gains/losses on sales of debt securities. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.
The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.
In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.
Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the previously provided tables and the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.
FORWARD-LOOKING STATEMENTS
This communication contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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; the 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 EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2022202220222022202120222021
Income Statement
Net interest income$391,090 $376,589 $337,472 $222,785 $146,781 $1,327,936 $596,400 
FTE adjustment1
5,378 4,950 4,314 3,772 3,442 18,414 13,913 
Net interest income - tax equivalent basis396,468 381,539 341,786 226,557 150,223 1,346,350 610,313 
Provision for credit losses2
11,408 15,490 9,165 108,736 (1,332)144,799 (29,622)
Noninterest income165,037 80,385 89,117 65,240 51,484 399,779 214,219 
Noninterest expense2
282,675 262,444 277,475 215,589 131,355 1,038,183 501,379 
Net income (loss) available to common shareholders$196,701 $136,119 $110,952 $(29,603)$56,188 $414,169 $277,538 
Per Common Share Data
Weighted average diluted shares293,131 292,483 291,881 227,002 166,128 276,688 165,929 
EPS, diluted$0.67 $0.47 $0.38 $(0.13)$0.34 $1.50 $1.67 
Cash dividends0.14 0.14 0.14 0.14 0.14 0.56 0.56 
Dividend payout ratio3
21 %30 %37 %(108)%41 %37 %33 %
Book value$16.68 $16.05 $16.51 $17.03 $18.16 $16.68 $18.16 
Stock price17.98 16.47 14.79 16.38 18.12 17.98 18.12 
Tangible book value4
9.42 8.75 9.23 9.71 11.70 9.42 11.70 
Performance Ratios
ROAA1.74 %1.22 %1.01 %(0.31)%0.93 %0.99 %1.17 %
ROAE16.8 %11.1 %9.1 %(2.9)%7.5 %8.9 %9.3 %
ROATCE4
31.5 %20.5 %16.9 %(4.0)%12.1 %16.3 %14.9 %
NIM (FTE)3.85 %3.71 %3.33 %2.88 %2.77 %3.47 %2.89 %
Efficiency ratio4
49.1 %55.3 %62.7 %72.3 %64.0 %58.0 %59.7 %
Efficiency ratio (prior presentation)5
N/A56.2 %62.7 %76.2 %64.3 %N/A59.6 %
NCOs (recoveries) to average loans0.05 %0.10 %0.02 %0.05 %(0.04)%0.06 %(0.03)%
ACL on loans to EOP loans0.98 %0.99 %0.97 %0.99 %0.79 %0.98 %0.79 %
ACL6 to EOP loans
1.08 %1.08 %1.05 %1.07 %0.87 %1.08 %0.87 %
NPLs to EOP loans0.81 %0.81 %0.78 %0.88 %0.92 %0.81 %0.92 %
Balance Sheet (EOP)
Total loans$31,123,641$30,528,933$29,553,648$28,336,244$13,601,846$31,123,641$13,601,846
Total assets46,763,37246,215,52645,748,35545,834,64824,453,56446,763,37224,453,564
Total deposits35,000,83036,053,66335,538,97535,607,39018,569,19535,000,83018,569,195
Total borrowed funds5,586,3144,264,7504,384,4114,347,5602,575,2405,586,3142,575,240
Total shareholders' equity5,128,5954,943,3835,078,7835,232,1143,012,0185,128,5953,012,018
Capital Ratios4
Risk-based capital ratios (EOP):
Tier 1 common equity10.03 %9.88 %9.90 %10.04 %12.04 %10.03 %12.04 %
Tier 1 capital10.71 %10.58 %10.63 %10.79 %12.04 %10.71 %12.04 %
Total capital12.02 %11.84 %12.03 %12.19 %12.77 %12.02 %12.77 %
Leverage ratio (average assets)8.52 %8.26 %8.19 %10.58 %8.59 %8.52 %8.59 %
Equity to assets (averages)10.70 %11.18 %11.22 %12.03 %12.35 %11.23 %12.60 %
TCE to TA6.18 %5.82 %6.20 %6.51 %8.30 %6.18 %8.30 %
Nonfinancial Data
Full-time equivalent employees 3,9674,0084,1964,3332,3743,9672,374
Banking centers263263266267162263162
1 Calculated using the federal statutory tax rate in effect of 21% for all periods.
2 Provision for unfunded commitments is included in the provision for credit losses. The reclassification of the provision for unfunded commitments out of other expense as a component of noninterest expense was made to prior period amounts to conform to the current period presentation.
3 Cash dividends per common share divided by net income per common share (basic).
4 Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
   December 31, 2022 capital ratios are preliminary.
5 Presented as calculated prior to December 31, 2022, which included the provision for unfunded commitments in noninterest expense. Management believes that removing the provision for unfunded commitments from this metric enhances comparability for peer comparison purposes.
6 Includes the allowance for credit losses on loans and unfunded commitments.
  FTE - Fully taxable equivalent basis ROAA - Return on average assets ROAE - Return on average equity
  ROATCE - Return on average tangible common equity NCOs - Net Charge-offs ALL - Allowance for loan losses ACL - Allowance for Credit Losses
  EOP - End of period actual balances NPLs - Non-performing Loans TCE - Tangible common equity TA - Tangible assets
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Income Statement (unaudited)
($ and shares in thousands, except per share data)
Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2022202220222022202120222021
Interest income$457,821 $406,518 $354,358 $235,505 $156,928 $1,454,202 $638,649 
Less: interest expense66,731 29,929 16,886 12,720 10,147 126,266 42,249 
 Net interest income391,090 376,589 337,472 222,785 146,781 1,327,936 596,400 
Provision for credit losses1
11,408 15,490 9,165 108,736 (1,332)144,799 (29,622)
 Net interest income
  after provision		379,682 361,099 328,307 114,049 148,113 1,183,137 626,022 
Wealth management fees17,851 17,317 19,304 14,630 9,833 69,102 40,409 
Service charges on deposit accounts18,109 20,042 20,324 14,026 8,388 72,501 31,658 
Debit card and ATM fees10,798 10,608 11,222 7,599 5,804 40,227 23,766 
Mortgage banking revenue3,888 5,360 6,522 7,245 7,336 23,015 42,558 
Investment product fees7,817 8,042 8,568 7,322 6,258 31,749 24,639 
Capital markets income5,377 8,906 7,261 4,442 6,394 25,986 21,997 
Company-owned life insurance3,108 3,361 4,571 3,524 2,737 14,564 10,589 
Gain on sale of health savings accounts90,673 — — — — 90,673 — 
Other income7,589 6,921 11,430 6,110 4,299 32,050 14,276 
Gains (losses) on sales of debt securities(173)(172)(85)342 435 (88)4,327 
Total noninterest income165,037 80,385 89,117 65,240 51,484 399,779 214,219 
Salaries and employee benefits142,459 147,203 161,817 124,147 72,336 575,626 284,098 
Occupancy26,488 26,418 26,496 21,019 13,151 100,421 54,834 
Equipment7,591 7,328 7,550 5,168 4,473 27,637 16,704 
Marketing8,508 10,361 9,119 4,276 4,723 32,264 12,684 
Data processing 19,951 20,269 25,883 18,762 11,489 84,865 47,047 
Communication4,159 5,392 5,878 3,417 2,412 18,846 10,073 
Professional fees6,360 6,559 6,336 19,791 5,409 39,046 20,077 
FDIC assessment5,809 6,249 4,699 2,575 1,598 19,332 6,059 
Amortization of intangibles6,787 7,089 7,170 4,811 2,573 25,857 11,336 
Amortization of tax credit investments5,258 2,662 1,525 1,516 2,019 10,961 6,770 
Property optimization26,818 — — — — 26,818 — 
Other expense1
22,487 22,914 21,002 10,107 11,172 76,510 31,697 
 Total noninterest expense282,675 262,444 277,475 215,589 131,355 1,038,183 501,379 
  Income (loss) before income
  taxes		262,044 179,040 139,949 (36,300)68,242 544,733 338,862 
  Income tax expense (benefit)61,309 38,887 24,964 (8,714)12,054 116,446 61,324 
Net income (loss)$200,735 $140,153 $114,985 $(27,586)$56,188 $428,287 $277,538 
 Preferred dividends(4,034)(4,034)(4,033)(2,017)— (14,118)— 
Net income (loss) applicable to common shares$196,701 $136,119 $110,952 $(29,603)$56,188 $414,169 $277,538 
EPS$0.67 $0.47 $0.38 $(0.13)$0.34 $1.50 $1.67 
Weighted Average Common Shares Outstanding
    Basic291,012290,961290,862227,002165,278275,179165,178
    Diluted293,131292,483291,881227,002166,128276,688165,929
Common shares outstanding (EOP)292,903292,880292,893292,959165,838292,903165,838
1 Provision for unfunded commitments is included in the provision for credit losses. The reclassification of the provision for unfunded commitments out of other expense as a component of noninterest expense was made to prior period amounts to conform to the current period presentation.
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End of Period Balance Sheet (unaudited)
($ in thousands)
December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Earning Assets
Federal Reserve Bank account$269,374 $328,391 $334,570 $1,545,389 $627,354 
Money market investments5,606 6,374 7,774 12,419 22,002 
Investments:
Treasury and government-sponsored agencies2,195,175 2,186,551 2,461,173 2,527,568 1,778,357 
Mortgage-backed securities5,476,718 5,584,241 5,976,921 6,086,853 3,698,831 
States and political subdivisions1,827,164 1,829,561 1,839,333 1,840,823 1,654,986 
Other securities730,476 693,303 719,223 735,550 432,478 
Total investments10,229,533 10,293,656 10,996,650 11,190,794 7,564,652 
Loans held for sale, at fair value11,926 19,748 26,217 39,376 35,458 
Loans:
Commercial9,508,904 9,311,148 8,923,983 8,624,253 3,391,769 
Commercial and agriculture real estate12,457,070 12,227,888 11,796,503 11,337,735 6,380,674 
Consumer:
Home equity1,033,783 1,043,594 1,097,852 1,080,885 560,590 
Other consumer loans1,663,443 1,678,997 1,656,253 1,587,216 1,013,524 
Subtotal of commercial and consumer loans24,663,200 24,261,627 23,474,591 22,630,089 11,346,557 
Residential real estate6,460,441 6,267,306 6,079,057 5,706,155 2,255,289 
Total loans31,123,641 30,528,933 29,553,648 28,336,244 13,601,846 
Total earning assets41,640,080 41,177,102 40,918,859 41,124,222 21,851,312 
Allowance for credit losses on loans(303,671)(302,254)(288,003)(280,507)(107,341)
Non-earning Assets:
Cash and due from banks453,432 466,846 455,620 418,744 172,663 
Premises and equipment, net557,307 588,021 586,031 584,113 476,186 
Operating lease right-of-use assets189,714 187,626 192,196 201,802 69,560 
Goodwill and other intangible assets2,125,121 2,135,792 2,131,815 2,144,609 1,071,672 
Company-owned life insurance768,552 767,089 769,595 766,291 463,324 
Other assets 1,332,837 1,195,304 982,242 875,374 456,188 
Total non-earning assets5,426,963 5,340,678 5,117,499 4,990,933 2,709,593 
Total assets$46,763,372 $46,215,526 $45,748,355 $45,834,648 $24,453,564 
Liabilities and Equity
Noninterest-bearing demand deposits$11,930,798 $12,400,077 $12,388,379 $12,463,136 $6,303,106 
Interest-bearing:
Checking and NOW accounts8,340,955 8,963,014 8,473,510 8,296,337 5,338,022 
Savings accounts6,326,158 6,616,512 6,796,152 6,871,767 3,798,494 
Money market accounts5,389,139 5,602,729 5,373,318 5,432,139 2,169,160 
Other time deposits2,775,991 2,393,083 2,479,304 2,544,011 960,413 
Total core deposits34,763,041 35,975,415 35,510,663 35,607,390 18,569,195 
Brokered deposits237,789 78,248 28,312 — — 
Total deposits35,000,830 36,053,663 35,538,975 35,607,390 18,569,195 
Federal funds purchased and interbank borrowings581,489 301,031 1,561 1,721 276 
Securities sold under agreements to repurchase432,804 438,053 476,173 509,275 392,275 
Federal Home Loan Bank advances3,829,018 2,804,617 3,283,963 3,239,357 1,886,019 
Other borrowings743,003 721,049 622,714 597,207 296,670 
Total borrowed funds5,586,314 4,264,750 4,384,411 4,347,560 2,575,240 
Operating lease liabilities211,964 207,725 215,188 234,049 76,236 
Accrued expenses and other liabilities835,669 746,005 530,998 413,535 220,875 
Total liabilities41,634,777 41,272,143 40,669,572 40,602,534 21,441,546 
Preferred stock, common stock, surplus, and retained earnings5,915,017 5,751,833 5,647,916 5,570,313 3,014,393 
Accumulated other comprehensive income (loss), net of tax(786,422)(808,450)(569,133)(338,199)(2,375)
Total shareholders' equity5,128,595 4,943,383 5,078,783 5,232,114 3,012,018 
Total liabilities and shareholders' equity$46,763,372 $46,215,526 $45,748,355 $45,834,648 $24,453,564 
8

Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
Three Months EndedThree Months EndedThree Months Ended
December 31, 2022September 30, 2022December 31, 2021
Average
Income1/
Yield/Average
Income1/
Yield/Average
Income1/
Yield/
Earning Assets:BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Money market and other interest-earning investments$324,801 $(259)(0.32)%$514,362 $935 0.72 %$726,144 $276 0.15 %
Investments:
Treasury and government-sponsored agencies2,151,746 14,683 2.73 %2,326,070 13,212 2.27 %1,763,544 6,390 1.45 %
Mortgage-backed securities5,470,753 35,344 2.58 %5,891,283 36,157 2.45 %3,513,482 15,071 1.72 %
States and political subdivisions1,818,431 14,849 3.27 %1,829,322 14,631 3.20 %1,625,390 12,941 3.18 %
Other securities702,730 7,741 4.41 %718,735 6,781 3.77 %438,583 2,608 2.38 %
Total investments10,143,660 72,617 2.86 %10,765,410 70,781 2.63 %7,340,999 37,010 2.02 %
Loans:2
Commercial9,330,906 132,711 5.69 %9,045,009 113,491 5.02 %3,420,274 31,641 3.62 %
Commercial and agriculture real estate12,317,057 161,766 5.25 %11,929,892 136,780 4.59 %6,341,296 57,347 3.54 %
Consumer:
Home equity949,925 16,926 7.07 %947,921 14,397 6.03 %556,851 4,380 3.12 %
Other consumer loans1,766,527 19,906 4.47 %1,787,929 18,652 4.14 %1,009,690 9,488 3.73 %
Subtotal commercial and consumer loans24,364,415 331,309 5.43 %23,710,751 283,320 4.78 %11,328,111 102,856 3.60 %
Residential real estate loans6,373,819 59,532 3.74 %6,189,503 56,432 3.65 %2,275,469 20,228 3.56 %
Total loans30,738,234 390,841 5.08 %29,900,254 339,752 4.54 %13,603,580 123,084 3.56 %
Total earning assets$41,206,695 $463,199 4.49 %$41,180,026 $411,468 3.99 %$21,670,723 $160,370 2.93 %
Less: Allowance for credit losses on loans(303,009)(290,215)(107,990)
Non-earning Assets:
Cash and due from banks$368,874 $503,841 $228,126 
Other assets4,861,247 4,522,171 2,481,792 
Total assets$46,133,807 $45,915,823 $24,272,651 
Interest-Bearing Liabilities:
Checking and NOW accounts$8,482,651 $13,189 0.62 %$8,681,392 $5,751 0.26 %$5,093,496 $458 0.04 %
Savings accounts6,482,369 1,558 0.10 %6,733,465 547 0.03 %3,766,543 524 0.06 %
Money market accounts5,382,254 8,091 0.60 %5,344,567 2,072 0.15 %2,139,702 456 0.08 %
Other time deposits2,540,619 5,688 0.89 %2,463,573 2,168 0.35 %978,723 1,047 0.42 %
Total interest-bearing core deposits22,887,893 28,526 0.49 %23,222,997 10,538 0.18 %11,978,464 2,485 0.08 %
Brokered deposits129,745 1,366 4.18 %44,579 282 2.51 %— — 0.00 %
Total interest-bearing deposits23,017,638 29,892 0.52 %23,267,576 10,820 0.18 %11,978,464 2,485 0.08 %
Federal funds purchased and interbank borrowings475,431 4,299 3.59 %122,311 720 2.34 %1,162 — 0.00 %
Securities sold under agreements to repurchase409,916 556 0.54 %436,225 106 0.10 %381,744 92 0.10 %
Federal Home Loan Bank advances3,266,896 25,609 3.11 %3,025,844 13,027 1.71 %1,887,821 5,122 1.08 %
Other borrowings753,401 6,375 3.36 %676,874 5,256 3.08 %274,926 2,448 3.56 %
Total borrowed funds4,905,644 36,839 2.98 %4,261,254 19,109 1.78 %2,545,653 7,662 1.19 %
Total interest-bearing liabilities$27,923,282 $66,731 0.95 %$27,528,830 $29,929 0.43 %$14,524,117 $10,147 0.28 %
Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits$12,373,495 $12,575,011 $6,435,829 
Other liabilities900,448 677,829 313,880 
Shareholders' equity4,936,582 5,134,153 2,998,825 
Total liabilities and shareholders' equity$46,133,807 $45,915,823 $24,272,651 
Net interest rate spread3.54 %3.56 %2.65 %
Net interest margin (FTE)3.85 %3.71 %2.77 %
FTE adjustment$5,378 $4,950 $3,442 
1 Interest income is reflected on a FTE.
2 Includes loans held for sale.
9

Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
Twelve Months EndedTwelve Months Ended
December 31, 2022December 31, 2021
Average
Income1/
Yield/Average
Income1/
Yield/
Earning Assets:BalanceExpenseRateBalanceExpenseRate
Money market and other interest-earning investments$812,296 $2,814 0.35 %$450,158 $589 0.13 %
Investments:
Treasury and government-sponsored agencies2,290,229 47,932 2.09 %1,573,855 24,209 1.54 %
Mortgage-backed securities5,562,442 129,411 2.33 %3,356,950 60,479 1.80 %
States and political subdivisions1,805,433 57,688 3.20 %1,548,939 50,115 3.24 %
Other securities687,926 24,133 3.51 %443,606 10,680 2.41 %
Total investments$10,346,030 $259,164 2.50 %$6,923,350 $145,483 2.10 %
Loans:2
Commercial8,252,237 397,228 4.81 %3,763,099 138,063 3.67 %
Commercial and agriculture real estate11,147,967 489,499 4.39 %6,168,146 228,568 3.71 %
Consumer:
Home equity921,018 49,934 5.42 %547,322 17,181 3.14 %
Other consumer loans1,649,337 72,340 4.39 %1,030,145 39,100 3.80 %
Subtotal commercial and consumer loans21,970,559 1,009,001 4.59 %11,508,712 422,912 3.67 %
Residential real estate loans5,622,901 201,637 3.59 %2,269,989 83,578 3.68 %
Total loans27,593,460 1,210,638 4.39 %13,778,701 506,490 3.68 %
Total earning assets$38,751,786 $1,472,616 3.80 %$21,152,209 $652,562 3.09 %
Less: Allowance for credit losses on loans(261,534)(117,436)
Non-earning Assets:
Cash and due from banks$355,391 $256,860 
Other assets4,404,057 2,492,054 
Total assets$43,249,700 $23,783,687 
Interest-Bearing Liabilities:
Checking and NOW accounts$8,104,844 $21,321 0.26 %$4,945,435 $2,065 0.04 %
Savings accounts6,342,697 3,367 0.05 %3,648,019 2,003 0.05 %
Money market accounts4,961,159 11,882 0.24 %2,080,332 1,750 0.08 %
Other time deposits2,312,935 10,801 0.47 %1,020,359 5,105 0.50 %
Total interest-bearing core deposits21,721,635 47,371 0.22 %11,694,145 10,923 0.09 %
Brokered deposits45,796 1,722 3.76 %41,371 31 0.08 %
Total interest-bearing deposits21,767,431 49,093 0.23 %11,735,516 10,954 0.09 %
Federal funds purchased and interbank borrowings151,243 5,021 3.32 %1,113 — 0.00 %
Securities sold under agreements to repurchase440,619 843 0.19 %392,777 397 0.10 %
Federal Home Loan Bank advances2,986,006 51,524 1.73 %1,902,407 21,075 1.11 %
Other borrowings619,659 19,785 3.19 %269,484 9,823 3.65 %
Total borrowed funds4,197,527 77,173 1.84 %2,565,781 31,295 1.22 %
Total interest-bearing liabilities25,964,958 126,266 0.49 %14,301,297 42,249 0.30 %
Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits$11,750,306 $6,163,937 
Other liabilities676,940 320,933 
Shareholders' equity4,857,496 2,997,520 
Total liabilities and shareholders' equity$43,249,700 $23,783,687 
Net interest rate spread3.31 %2.79 %
Net interest margin (FTE)3.47 %2.89 %
FTE adjustment$18,414 $13,913 
1 Interest income is reflected on a FTE.
2 Includes loans held for sale.




10

Asset Quality (EOP) (unaudited)
($ in thousands)
Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2022202220222022202120222021
Allowance for credit losses:
Beginning allowance for credit losses on loans$302,254 $288,003 $280,507 $107,341 $107,868 $107,341 $131,388 
Allowance established for acquired PCD loans— 10,558 — 78,531 — 89,089 — 
Provision for credit losses on loans5,389 11,288 9,254 97,409 (1,914)123,340 (28,812)
Gross charge-offs(7,081)(11,440)(4,096)(4,664)(545)(27,281)(4,310)
Gross recoveries3,109 3,845 2,338 1,890 1,932 11,182 9,075 
(NCOs) recoveries(3,972)(7,595)(1,758)(2,774)1,387 (16,099)4,765 
Ending allowance for credit losses on loans$303,671 $302,254 $288,003 $280,507 $107,341 $303,671 $107,341 
Beginning allowance for credit losses on unfunded commitments$26,169 $21,966 $22,046 $10,879 $10,297 $10,879 $11,689 
Provision for credit losses on
unfunded commitments		6,019 4,203 (80)11,167 582 21,309 (810)
Ending allowance for credit losses on unfunded commitments$32,188 $26,169 $21,966 $22,046 $10,879 $32,188 $10,879 
Allowance for credit losses$335,859 $328,423 $309,969 $302,553 $118,220 $335,859 $118,220 
Provision for credit losses on loans$5,389 $11,288 $9,254 $97,409$(1,914)$123,340 $(28,812)
Provision for credit losses on unfunded commitments1
6,019 4,203 (80)11,167 582 21,309 (810)
Provision for credit losses1
$11,408 $15,491 $9,174 $108,576 $(1,332)$144,649 $(29,622)
NCOs (recoveries) / average loans2
0.05 %0.10 %0.02 %0.05 %(0.04)%0.06 %(0.03)%
Average loans2
$30,737,698 $29,890,008 $28,847,003 $20,725,313 $13,594,543 $27,589,442 $13,766,590 
EOP loans2
31,123,641 30,528,933 29,553,648 28,336,244 13,601,846 31,123,641 13,601,846 
ACL on loans / EOP loans2
0.98 %0.99 %0.97 %0.99 %0.79 %0.98 %0.79 %
ACL / EOP loans2
1.08 %1.08 %1.05 %1.07 %0.87 %1.08 %0.87 %
Underperforming Assets:
Loans 90 days and over (still
accruing)		$2,650 $767 $882 $1,646 $7 $2,650 $7 
NPLs:
      Nonaccrual loans3
238,178 233,659 214,924 227,925 106,691 238,178 106,691 
      TDRs still accruing15,313 13,674 15,665 20,999 18,378 15,313 18,378 
         Total NPLs253,491 247,333 230,589 248,924 125,069 253,491 125,069 
   Foreclosed assets10,845 11,967 12,618 19,713 2,030 10,845 2,030 
Total underperforming assets$266,986 $260,067 $244,089 $270,283 $127,106 $266,986 $127,106 
Classified and Criticized Assets:
Nonaccrual loans3
$238,178 $233,659 $214,924 $227,925 $106,691 $238,178 $106,691 
Substandard loans (still accruing)504,657 476,724 490,566 518,341 162,572 504,657 162,572 
Loans 90 days and over (still accruing)2,650 767 882 1,646 7 2,650 7 
Total classified loans - "problem loans"745,485 711,150 706,372 747,912 269,270 745,485 269,270 
Other classified assets24,735 24,773 25,004 24,676 4,338 24,735 4,338 
Criticized loans - "special mention loans"636,069 549,994 452,835 507,689 235,910 636,069 235,910 
Total classified and criticized assets$1,406,289 $1,285,917 $1,184,211 $1,280,277 $509,518 $1,406,289 $509,518 
Loans 30-89 days past due$55,522 $65,632 $48,889 $94,114 $16,347 $55,522 $16,347 
NPLs / EOP loans2
0.81 %0.81 %0.78 %0.88 %0.92 %0.81 %0.92 %
ACL to NPLs132 %133 %134 %122 %95 %132 %95 %
Under-performing assets/EOP loans2
0.86 %0.85 %0.83 %0.95 %0.93 %0.86 %0.93 %
Under-performing assets/EOP assets0.57 %0.56 %0.53 %0.59 %0.52 %0.57 %0.52 %
30+ day delinquencies2
0.19 %0.22 %0.17 %0.34 %0.12 %0.19 %0.12 %
1 Excludes $0.2 million of expense to establish an allowance on held-to-maturity securities during the first quarter of 2022. Provision for unfunded commitments is included in the provision for credit losses. The reclassification of the provision for unfunded commitments out of other expense as a component of noninterest expense was made to prior period amounts to conform to the current period presentation.
2 Excludes loans held for sale.
3 Includes non-accruing TDRs totaling $24.0 million at December 31, 2022, $23.8 million at September 30, 2022, $24.3 million at June 30, 2022, $23.8 million at March 31, 2022 and $11.7 million at December 31, 2021.
 PCD - Purchased credit deteriorated TDR - Troubled debt restructuring
11

Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)
Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2022202220222022202120222021
Earnings Per Share:
Net income applicable to common shares$196,701 $136,119 $110,952 $(29,603)$56,188 $414,169 $277,538 
Adjustments:
Gain on sale of health savings accounts(90,673)— — — — (90,673)— 
Tax effect1
23,031 — — — — 23,031 — 
Gain on sale of health savings accounts, net(67,642)— — — — (67,642)— 
Debt Securities (gains) losses173 172 85 (342)(435)88 (4,327)
Tax effect1
(44)(65)(30)62 109 (76)1,082 
Debt securities (gains) losses, net129 107 55 (280)(326)12 (3,245)
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 charges2
20,314 22,743 36,585 52,299 6,683 131,941 14,584 
Tax effect1
(5,160)(8,529)(13,057)(9,534)(1,671)(36,280)(3,646)
Merger related charges, net15,154 14,214 23,528 42,765 5,012 95,661 10,938 
Property optimization26,818 — — — — 26,818 — 
Tax effect1
(6,812)— — — — (6,812)— 
Property optimization, net20,006 — — — — 20,006 — 
ONB Way— — — — — — 1,952 
Tax effect1
— — — — — — (488)
ONB Way, net— — — — — — 1,464 
Total adjustments, net(32,353)14,321 23,583 121,205 4,686 126,757 9,157 
Net income applicable to common shares, adjusted$164,348 $150,440 $134,535 $91,602 $60,874 $540,926 $286,695 
Weighted average diluted common shares outstanding293,131 292,483 291,881 227,002 166,128 276,688 165,929 
EPS, diluted$0.67 $0.47 $0.38 $(0.13)$0.34 $1.50 $1.67 
Adjusted EPS, diluted$0.56 $0.51 $0.46 $0.40 $0.37 $1.96 $1.73 
NIM:
Net interest income$391,090 $376,589 $337,472 $222,785 $146,781 $1,327,936 $596,400 
Add: FTE adjustment1
5,378 4,950 4,314 3,772 3,442 18,414 13,913 
Net interest income (FTE)$396,468 $381,539 $341,786 $226,557 $150,223 $1,346,350 $610,313 
Average earning assets$41,206,695 $41,180,026 $41,003,338 $31,483,553 $21,670,723 $38,751,786 $21,152,209 
NIM3.80 %3.66 %3.29 %2.83 %2.71 %3.43 %2.82 %
NIM (FTE)3.85 %3.71 %3.33 %2.88 %2.77 %3.47 %2.89 %




12

Non-GAAP Measures (unaudited)
($ in thousands)
Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2022202220222022202120222021
PPNR:
Net interest income (FTE)1
$396,468 $381,539 $341,786 $226,557 $150,223 $1,346,350 $610,313 
Add: Noninterest income165,037 80,385 89,117 65,240 51,484 399,779 214,219 
Total revenue (FTE)561,505 461,924 430,903 291,797 201,707 1,746,129 824,532 
Less: Noninterest expense(282,675)(262,444)(277,475)(215,589)(131,355)(1,038,183)(501,379)
PPNR$278,830 $199,480 $153,428 $76,208 $70,352 $707,946 $323,153 
Adjustments:
Gain on sale of health savings accounts$(90,673)$— $— $— $— $(90,673)$— 
Debt securities (gains) losses173 172 85 (342)(435)88 (4,327)
Noninterest income adjustments(90,500)172 85 (342)(435)(90,585)(4,327)
Adjusted noninterest income74,537 80,557 89,202 64,898 51,049 309,194 209,892 
Adjusted revenue$471,005 $462,096 $430,988 $291,455 $201,272 $1,655,544 $820,205 
Adjustments:
ONB Way $— $— $— $— $— $— $1,952 
Merger related charges3
20,314 22,743 36,585 41,286 6,683 120,928 14,584 
Property optimization26,818 — — — — 26,818 — 
Amortization of tax credit investments5,258 2,662 1,525 1,516 2,019 10,961 6,770 
Noninterest expense adjustments52,390 25,405 38,110 42,802 8,702 158,707 23,306 
Adjusted total noninterest expense(230,285)(237,039)(239,365)(172,787)(122,653)(879,476)(478,073)
Adjusted PPNR$240,720 $225,057 $191,623 $118,668 $78,619 $776,068 $342,132 
Efficiency Ratio:
Noninterest expense$282,675 $262,444 $277,475 $215,589 $131,355 $1,038,183 $501,379 
Less: Amortization of intangibles(6,787)(7,089)(7,170)(4,811)(2,573)(25,857)(11,336)
Noninterest expense, excl. amortization of intangibles275,888 255,355 270,305 210,778 128,782 1,012,326 490,043 
Less: Noninterest expense adjustments(52,390)(25,405)(38,110)(42,802)(8,702)(158,707)(23,306)
Adjusted noninterest expense$223,498 $229,950 $232,195 $167,976 $120,080 $853,619 $466,737 
Total revenue (FTE)1
$561,505 $461,924 $430,903 $291,797 $201,707 $1,746,129 $824,532 
Less: Debt securities (gains) losses173 172 85 (342)(435)88 (4,327)
Total revenue excl. debt securities (gains) losses561,678 462,096 430,988 291,455 201,272 1,746,217 820,205 
Less: Gain on sale of health savings accounts(90,673)— — — — (90,673)— 
Total adjusted revenue $471,005 $462,096 $430,988 $291,455 $201,272 $1,655,544 $820,205 
Efficiency Ratio49.1 %55.3 %62.7 %72.3 %64.0 %58.0 %59.7 %
Efficiency Ratio (prior presentation)4
N/A56.2 %62.7 %76.2 %64.3 %N/A59.7 %
Adjusted Efficiency Ratio47.5 %49.8 %53.9 %57.6 %59.7 %51.6 %56.9 %
Adjusted Efficiency Ratio (prior presentation)4
N/A50.7 %53.9 %57.7 %60.0 %N/A56.8 %
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Non-GAAP Measures (unaudited)
($ in thousands)
Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2022202220222022202120222021
ROAE and ROATCE:
Net income (loss) applicable to common shares$196,701 $136,119 $110,952 $(29,603)$56,188 $414,169 $277,538 
Amortization of intangibles 6,787 7,089 7,170 4,811 2,573 25,857 11,336 
Tax effect1
(1,697)(1,772)(1,793)(877)(643)(6,139)(2,834)
Amortization of intangibles, net5,090 5,317 5,377 3,934 1,930 19,718 8,502 
Net income (loss) applicable to common shares, excluding intangible amortization201,791 141,436 116,329 (25,669)58,118 433,887 286,040 
Total adjustments, net (see pg.12)(32,353)14,321 23,583 121,205 4,686 126,757 9,157 
Adjusted tangible net income applicable to common shares$169,438 $155,757 $139,912 $95,536 $62,804 $560,644 $295,197 
Average shareholders' equity$4,936,582 $5,134,153 $5,129,900 $4,218,416 $2,998,825 $4,857,496 $2,997,520 
Less: Average preferred equity(243,719)(243,719)(243,719)(117,210)— (212,525)— 
Average shareholders' common equity$4,692,863 $4,890,434 $4,886,181 $4,101,206 $2,998,825 $4,644,971 $2,997,520 
Average goodwill and other intangible assets(2,132,480)(2,129,858)(2,136,964)(1,550,624)(1,072,986)(1,989,466)(1,077,065)
Average tangible shareholder's common equity$2,560,383 $2,760,576 $2,749,217 $2,550,582 $1,925,839 $2,655,505 $1,920,455 
ROAE16.8 %11.1%9.1%(2.9)%7.5%8.9 %9.3 %
ROAE, adjusted14.0 %12.3%11.0%8.9%8.1%11.6 %9.6 %
ROATCE31.5 %20.5%16.9%(4.0)%12.1%16.3 %14.9 %
ROATCE, adjusted26.5 %22.6%20.4%15.0%13.0%21.1 %15.4 %
14

Non-GAAP Measures (unaudited)
($ in thousands)
As of
December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Tangible Common Equity:
Shareholders' equity$5,128,595 $4,943,383 $5,078,783 $5,232,114 $3,012,018 
Less: Preferred equity (243,719)(243,719)(243,719)(243,719)— 
Shareholders' common equity $4,884,876 $4,699,664 $4,835,064 $4,988,395 $3,012,018 
Less: Goodwill and other intangible assets(2,125,121)(2,135,792)(2,131,815)(2,144,609)(1,071,672)
Tangible shareholders' common equity $2,759,755 $2,563,872 $2,703,249 $2,843,786 $1,940,346 
Total assets $46,763,372 $46,215,526 $45,748,355 $45,834,648 $24,453,564 
Add: Trust overdrafts— — — 1 — 
Less: Goodwill and other intangible assets(2,125,121)(2,135,792)(2,131,815)(2,144,609)(1,071,672)
Tangible assets $44,638,251 $44,079,734 $43,616,540 $43,690,040 $23,381,892 
Risk-weighted assets5
$35,950,900 $34,741,765 $33,662,205 $32,341,335 $16,588,469 
Tangible common equity to tangible assets 6.18 %5.82 %6.20 %6.51 %8.30 %
Tangible common equity to risk-weighted assets5
7.68 %7.38 %8.03 %8.79 %11.70 %
Tangible Common Equity:
Common shares outstanding292,903 292,880 292,893 292,959 165,838 
Tangible common book value$9.42 $8.75 $9.23 $9.71 $11.70 
1 Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state).
2 Includes $11.0 million of provision for unfunded commitments for the three months ended March 31, 2022 and the twelve months ended December 31, 2022.
3 Excludes $11.0 million of provision for unfunded commitments that is included in provision for credit losses for the three months ended March 31, 2022 and the twelve months ended December 31, 2022.
4 Presented as calculated prior to December 31, 2022, which included the provision for unfunded commitments in noninterest expense. Management believes that removing the provision for unfunded commitments from this metric enhances comparability for peer comparison purposes.
5 December 31, 2022 figures are preliminary.
15