EX-99.1 2 onb_exhibit991er1q23.htm EX-99.1 Document
Exhibit 99.1
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Old National's 1st Quarter Results Supported by Strong Deposit Franchise, Ample Liquidity, Stable Credit and Expense Discipline
Evansville, Ind. (April 25, 2023)
Old National Bancorp (NASDAQ: ONB) reports 1Q23 net income applicable to common shares of $142.6 million, diluted EPS of $0.49; $159.1 million and $0.54 on an adjusted1 basis, respectively.
COMMENTARY BY CEO JIM RYAN:
Reflecting on April 10th
"Five of our Old National team members were lost forever while other team members and two Louisville Metro police officers suffered injuries. In the aftermath, many heroes emerged, including members of law enforcement, city and state officials, the Louisville medical community and some of our own team members who were on the scene.

Old National would like to thank the Louisville community for their unconditional love and support, as well as countless other individuals and organizations throughout the country whose outpouring of love and care has strengthened us. We also want to acknowledge and thank our resilient team members who rallied in support of those in Louisville and one another, along with our clients, many of whom reached out to us with messages of care and concern.

Finally, we ask everyone to consider giving the gift of life by donating blood. In addition to honoring those impacted in Louisville, your gift will help save lives throughout our nation."
Reflecting on First Quarter Earnings
"Our positive first quarter results underscore the stability of Old National's low-cost deposit franchise and the granularity and strength of our loan portfolio and revenue streams. When you also factor in another quarter of excellent expense discipline, stable credit and ample liquidity, you can see why Old National finds itself exceptionally well-positioned for whatever headwinds may lie ahead."
FIRST QUARTER HIGHLIGHTS2:
Net Income
•Net income applicable to common shares of $142.6 million; adjusted net income applicable to common shares1 of $159.1 million
•Earnings per diluted common share ("EPS") of $0.49; adjusted EPS1 of $0.54
Net Interest Income/NIM
•Net interest income on a fully taxable equivalent basis1 of $387.2 million
•Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.69%, down 16 basis points ("bps")
Operating Performance
•Pre-provision net revenue1 (“PPNR”) of $207.1 million; adjusted PPNR1 of $228.2 million
•Noninterest expense of $250.7 million; adjusted noninterest expense1 of $234.8 million
•Efficiency ratio1 of 52.8%; adjusted efficiency ratio1 of 48.8%
Deposits and Funding
•Period-end total deposits of $34.9 billion, stable including normal seasonal patterns in public funds
•Granular low-cost deposit franchise; total deposit costs of 72 bps and a total deposit beta cycle to date of 15% (interest-bearing deposit beta of 23%)
•Deposits that were either insured or collateralized3 at March 31, 2023 were ~70% of total deposits
•Strong liquidity provided by existing funding sources plus available unencumbered, high-quality collateral totaling $15.7 billion; ~150% uninsured covered ratio4
•Total funding of $41.7 billion, up 2.6% compared to December 31, 2022
Note: See following page for footnotes.


Loans and Credit Quality
•End-of-period total loans5 of $31.8 billion, up 2.2% compared to December 31, 2022
•Provision for credit losses6 ("provision") of $13.4 million
•Net charge-offs of $16.4 million, or 21 bps of average loans; 5 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
•Non-performing loans of 0.74% of total loans
Return Profile & Capital
•Return on average tangible common equity1 of 21.0%; adjusted return on average tangible common equity1 of 23.4%
•Repurchased 1.8 million shares of common stock during the quarter
Notable Items
•$14.6 million of merger-related charges
•$1.3 million of property optimization charges
•$5.2 million of losses on sales of debt securities
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 Uninsured and uncollateralized deposits include the estimate of Old National Bank federally uninsured deposits for regulatory purposes, as adjusted for $1.4 billion of affiliate deposits and $3.4 billion of collateralized or otherwise insured deposits 4 Represents the ratio of liquidity availability (cash and cash equivalents, funding capacity at FHLB, discount window and Bank Term Funding Program ("BTFP"), and unencumbered eligible collateral) at March 31, 2023, plus recently pledged loan collateral to FHLB, to uninsured and uncollateralized deposits at March 31, 2023 5 Includes loans held for sale 6 Includes the provision for unfunded commitments
RESULTS OF OPERATIONS
Old National Bancorp ("Old National") reported first quarter 2023 net income applicable to common shares of $142.6 million, or $0.49 per diluted common share.
Included in the first quarter was pre-tax charges of $1.3 million for property optimization and $14.6 million related to the February 15, 2022 merger with First Midwest. Excluding these transactions and $5.2 million of realized debt securities losses from the current quarter, adjusted net income was $159.1 million, or $0.54 per diluted common share.
DEPOSITS AND FUNDING
Stable low-cost deposits including normal seasonal patterns in public funds; ample funding and liquidity.
•Period-end total core deposits were $34.9 billion at March 31, 2023, stable including normal seasonal patterns in public funds.
•On average, total deposits for the first quarter were $34.9 billion, a decrease of 1.4%.
•Granular low-cost deposit franchise; total deposit costs of 72 bps and a total deposit cycle to date beta of 15% (interest-bearing deposit beta of 23%).
•Deposits that were either insured or collateralized at March 31, 2023 were approximately 70% of total deposits.
•Strong liquidity provided by existing funding sources plus available unencumbered, high-quality collateral; ~150% uninsured covered ratio4.
•Total funding of $41.7 billion, up 2.6% compared to December 31, 2022.
•A loan to deposit ratio of 91% at March 31, 2023, combined with existing funding sources plus available unencumbered, high-quality collateral totaling approximately $15.7 billion provides strong liquidity.

LOANS
Broad-based disciplined commercial loan growth.
•Period-end total loans3 were $31.8 billion at March 31, 2023, up 2.2% from December 31, 2022, driven by strong commercial loan growth.
•Total commercial loan production in the first quarter was $1.8 billion; period-end commercial pipeline totaled $5.4 billion.
•Average total loans in the first quarter were $31.3 billion, an increase of $532.6 million from the fourth quarter of 2022.

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CREDIT QUALITY
Strong credit quality continues to be a hallmark of the Old National franchise.
•Provision5 expense in the first quarter of 2023 was $13.4 million, compared to $11.4 million in the fourth quarter of 2022, reflecting loan and unfunded commitment growth, economic factors and portfolio mix changes.
•Net charge-offs in the first quarter were $16.4 million, or 21 bps of average loans compared to net charge-offs of 5 bps of average loans in the fourth quarter of 2022.
◦Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 5 bps for both the first quarter of 2023 and fourth quarter of 2022.
•30+ day delinquencies were 0.14% at the end of the first quarter of 2023, compared to 0.19% at the end of the fourth quarter of 2022.
•Non-performing loans as a percentage of total loans were 0.74% compared to 0.81% for the fourth quarter of 2022.
•Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of March 31, 2023, the remaining discount on these acquired loans was $96 million.
•The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $332.9 million, or 1.05% of total loans at March 31, 2023, compared to $335.9 million, or 1.08% of total loans at December 31, 2022.

NET INTEREST INCOME AND MARGIN
Loan growth and the higher rate environment favorably impact net interest income and margin, more than offset by higher funding costs, fewer days in the quarter and lower accretion.
•Net interest income on a fully taxable equivalent basis decreased to $387.2 million in the first quarter of 2023 compared to $396.5 million in the fourth quarter of 2022, driven by loan growth and the higher rate environment which were more than offset by higher funding costs, fewer days in the quarter and lower accretion income on loans.
•Net interest margin on a fully taxable equivalent basis decreased 16 bps to 3.69% compared to the fourth quarter of 2022.
•Accretion income on loans and borrowings was $7.9 million, or 8 bps of net interest margin, in the first quarter of 2023 compared to $10.4 million, or 10 bps of net interest margin, in the fourth quarter of 2022.
•Cost of total deposits was 0.72%, increasing 38 bps and the cost of total interest-bearing deposits increased 57 bps to 1.09% in the first quarter of 2023.

NONINTEREST INCOME
Increase driven by higher capital markets income as well as wealth management and investment products fees, partly offset by lower bank fees.
•Total noninterest income for the first quarter of 2023 was $70.7 million.
•Excluding realized debt securities losses for both periods and a $90.7 million pre-tax gain on the sale of health savings accounts for the fourth quarter of 2022, adjusted noninterest income for the first quarter was $75.9 million, up 1.8% compared to the fourth quarter of 2022, driven by higher capital markets income as well as wealth management and investment product fees, partially offset by lower service charges on deposit accounts and debit card and ATM fees.

NONINTEREST EXPENSE
Disciplined expense management.
•Noninterest expense for the first quarter of 2023 was $250.7 million and included $1.3 million for property optimization and $14.6 million of merger-related charges.
•Excluding these items, adjusted noninterest expense for the first quarter was $234.8 million, consistent with $235.5 million for the fourth quarter of 2022; lower salary and employee benefits and tax credit amortization was mostly offset by higher FDIC assessment and technology expenses.
•The efficiency ratio1 was 52.8%, while the adjusted efficiency ratio1 was 48.8% for the first quarter of 2023 compared to 49.1% and 47.5%, respectively, for the fourth quarter of 2022.

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INCOME TAXES
•Income tax expense in the first quarter of 2023 was $41.4 million, resulting in an effective tax rate of 22.0% compared to 23.4% in the fourth quarter of 2022. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 24.1% in the first quarter compared to 24.8% in the fourth quarter.
•Income tax expense included $3.1 million of tax credit benefit.

CAPITAL
Capital ratios remain strong.
•Preliminary total risk-based capital was 11.95% and preliminary regulatory Tier 1 capital was 10.62%, impacted by loan growth, merger related charges, and stock repurchases, partly offset by retained earnings.
•Tangible common equity to tangible assets was 6.37% at the end of the first quarter compared to 6.18% in the fourth quarter of 2022.
•The Company repurchased 1.8 million shares of common stock during the quarter.
CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, April 25, 2023, to review first quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (844) 200-6205 or International (929) 526-1599, Access code 892610. A replay of the call will also be available from approximately noon Central Time on April 25, 2023 through May 9, 2023. To access the replay, dial U.S. (866) 813-9403 or international +44 (204) 525-0658, Access code 569807.
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 $48 billion of assets and $28 billion of assets under management, Old National ranks among the top 35 banking companies headquartered in the U.S. Tracing our roots to 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients and in the communities it serves. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment, and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.
USE OF NON-GAAP FINANCIAL MEASURES
The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.
The Company presents EPS, the efficiency ratio, return on average common equity, 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 and gains/losses on sales of debt securities. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger related charges and the CECL Day 1 non-PCD provision expense from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.
Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes pre-provision net revenues, adjusted may be useful in assessing the Company's underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.
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The Company presents adjusted noninterest expense, which excludes merger related charges and property optimization 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; unanticipated changes in our liquidity position, including but not limited to changes in access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; 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, 2022 and other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results 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 Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Income Statement
Net interest income$381,488 $391,090 $376,589 $337,472 $222,785 
FTE adjustment1,4
5,666 5,378 4,950 4,314 3,772 
Net interest income - tax equivalent basis4
387,154 396,468 381,539 341,786 226,557 
Provision for credit losses2
13,437 11,408 15,490 9,165 108,736 
Noninterest income70,681 165,037 80,385 89,117 65,240 
Noninterest expense2
250,711 282,675 262,444 277,475 215,589 
Net income (loss) available to common shareholders$142,566 $196,701 $136,119 $110,952 $(29,603)
Per Common Share Data
Weighted average diluted shares292,756 293,131 292,483 291,881 227,002 
EPS, diluted$0.49 $0.67 $0.47 $0.38 $(0.13)
Cash dividends0.14 0.14 0.14 0.14 0.14 
Dividend payout ratio3
29 %21 %30 %37 %(108)%
Book value$17.24 $16.68 $16.05 $16.51 $17.03 
Stock price14.42 17.98 16.47 14.79 16.38 
Tangible book value4
9.98 9.42 8.75 9.23 9.71 
Performance Ratios
ROAA1.25 %1.74 %1.22 %1.01 %(0.31)%
ROAE11.6 %16.8 %11.1 %9.1 %(2.9)%
ROATCE4
21.0 %31.5 %20.5 %16.9 %(4.0)%
NIM (FTE)3.69 %3.85 %3.71 %3.33 %2.88 %
Efficiency ratio4
52.8 %49.1 %55.3 %62.7 %72.3 %
Efficiency ratio (prior presentation)5
N/AN/A56.2 %62.7 %76.2 %
NCOs (recoveries) to average loans0.21 %0.05 %0.10 %0.02 %0.05 %
ACL on loans to EOP loans0.94 %0.98 %0.99 %0.97 %0.99 %
ACL6 to EOP loans
1.05 %1.08 %1.08 %1.05 %1.07 %
NPLs to EOP loans0.74 %0.81 %0.81 %0.78 %0.88 %
Balance Sheet (EOP)
Total loans$31,822,374$31,123,641$30,528,933$29,553,648$28,336,244
Total assets47,842,64446,763,37246,215,52645,748,35545,834,648
Total deposits34,917,79235,000,83036,053,66335,538,97535,607,390
Total borrowed funds6,740,4545,586,3144,264,7504,384,4114,347,560
Total shareholders' equity5,277,4265,128,5954,943,3835,078,7835,232,114
Capital Ratios4
Risk-based capital ratios (EOP):
Tier 1 common equity9.96 %10.03 %9.88 %9.90 %10.04 %
Tier 1 capital10.62 %10.71 %10.58 %10.63 %10.79 %
Total capital11.95 %12.02 %11.84 %12.03 %12.19 %
Leverage ratio (average assets)8.53 %8.52 %8.26 %8.19 %10.58 %
Equity to assets (averages)11.00 %10.70 %11.18 %11.22 %12.03 %
TCE to TA6.37 %6.18 %5.82 %6.20 %6.51 %
Nonfinancial Data
Full-time equivalent employees 4,0233,9674,0084,1964,333
Banking centers256263263266267
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 amounts prior to December 31, 2022 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.
   March 31, 2023 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 Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Interest income$495,649 $457,821 $406,518 $354,358 $235,505 
Less: interest expense114,161 66,731 29,929 16,886 12,720 
 Net interest income381,488 391,090 376,589 337,472 222,785 
Provision for credit losses1
13,437 11,408 15,490 9,165 108,736 
 Net interest income
  after provision for credit losses		368,051 379,682 361,099 328,307 114,049 
Wealth management fees18,760 17,851 17,317 19,304 14,630 
Service charges on deposit accounts17,003 18,109 20,042 20,324 14,026 
Debit card and ATM fees9,982 10,798 10,608 11,222 7,599 
Mortgage banking revenue3,400 3,888 5,360 6,522 7,245 
Investment product fees8,160 7,817 8,042 8,568 7,322 
Capital markets income6,939 5,377 8,906 7,261 4,442 
Company-owned life insurance3,186 3,108 3,361 4,571 3,524 
Gain on sale of health savings accounts— 90,673 — — — 
Other income8,467 7,589 6,921 11,430 6,110 
Gains (losses) on sales of debt securities(5,216)(173)(172)(85)342 
Total noninterest income70,681 165,037 80,385 89,117 65,240 
Salaries and employee benefits137,364 142,459 147,203 161,817 124,147 
Occupancy28,282 26,488 26,418 26,496 21,019 
Equipment7,389 7,591 7,328 7,550 5,168 
Marketing9,417 8,508 10,361 9,119 4,276 
Technology19,202 19,951 20,269 25,883 18,762 
Communication4,461 4,159 5,392 5,878 3,417 
Professional fees6,732 6,360 6,559 6,336 19,791 
FDIC assessment10,404 5,809 6,249 4,699 2,575 
Amortization of intangibles6,186 6,787 7,089 7,170 4,811 
Amortization of tax credit investments2,761 5,258 2,662 1,525 1,516 
Property optimization1,317 26,818 — — — 
Other expense1
17,196 22,487 22,914 21,002 10,107 
 Total noninterest expense250,711 282,675 262,444 277,475 215,589 
  Income (loss) before income
  taxes		188,021 262,044 179,040 139,949 (36,300)
  Income tax expense (benefit)41,421 61,309 38,887 24,964 (8,714)
Net income (loss)$146,600 $200,735 $140,153 $114,985 $(27,586)
 Preferred dividends(4,034)(4,034)(4,034)(4,033)(2,017)
Net income (loss) applicable to common shares$142,566 $196,701 $136,119 $110,952 $(29,603)
EPS$0.49 $0.67 $0.47 $0.38 $(0.13)
Weighted Average Common Shares Outstanding
    Basic291,088291,012290,961290,862227,002
    Diluted292,756293,131292,483291,881227,002
Common shares outstanding (EOP)291,922292,903292,880292,893292,959
1 Provision for unfunded commitments is included in the provision for credit losses. The reclassification of the provision for unfunded commitments out of other expense as a component of noninterest expense was made to amounts prior to December 31, 2022 to conform to the current period presentation.
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End of Period Balance Sheet (unaudited)
($ in thousands)
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Earning Assets
Federal Reserve Bank account$712,388 $269,374 $328,391 $334,570 $1,545,389 
Money market investments14,668 5,606 6,374 7,774 12,419 
Investments:
Treasury and government-sponsored agencies2,236,413 2,195,175 2,186,551 2,461,173 2,527,568 
Mortgage-backed securities5,395,680 5,476,718 5,584,241 5,976,921 6,086,853 
States and political subdivisions1,785,072 1,827,164 1,829,561 1,839,333 1,840,823 
Other securities826,575 730,476 693,303 719,223 735,550 
Total investments10,243,740 10,229,533 10,293,656 10,996,650 11,190,794 
Loans held for sale, at fair value10,584 11,926 19,748 26,217 39,376 
Loans:
Commercial9,751,875 9,508,904 9,311,148 8,923,983 8,624,253 
Commercial and agriculture real estate12,908,380 12,457,070 12,227,888 11,796,503 11,337,735 
Consumer:
Home equity1,009,440 1,033,783 1,043,594 1,097,852 1,080,885 
Other consumer loans1,584,013 1,663,443 1,678,997 1,656,253 1,587,216 
Subtotal of commercial and consumer loans25,253,708 24,663,200 24,261,627 23,474,591 22,630,089 
Residential real estate6,568,666 6,460,441 6,267,306 6,079,057 5,706,155 
Total loans31,822,374 31,123,641 30,528,933 29,553,648 28,336,244 
Total earning assets42,803,754 41,640,080 41,177,102 40,918,859 41,124,222 
Allowance for credit losses on loans(298,711)(303,671)(302,254)(288,003)(280,507)
Non-earning Assets:
Cash and due from banks386,879 453,432 466,846 455,620 418,744 
Premises and equipment, net566,758 557,307 588,021 586,031 584,113 
Operating lease right-of-use assets183,687 189,714 187,626 192,196 201,802 
Goodwill and other intangible assets2,118,935 2,125,121 2,135,792 2,131,815 2,144,609 
Company-owned life insurance770,471 768,552 767,089 769,595 766,291 
Other assets 1,310,871 1,332,837 1,195,304 982,242 875,374 
Total non-earning assets5,337,601 5,426,963 5,340,678 5,117,499 4,990,933 
Total assets$47,842,644 $46,763,372 $46,215,526 $45,748,355 $45,834,648 
Liabilities and Equity
Noninterest-bearing demand deposits$10,995,083 $11,930,798 $12,400,077 $12,388,379 $12,463,136 
Interest-bearing:
Checking and NOW accounts7,903,520 8,340,955 8,963,014 8,473,510 8,296,337 
Savings accounts6,030,255 6,326,158 6,616,512 6,796,152 6,871,767 
Money market accounts5,867,239 5,389,139 5,602,729 5,373,318 5,432,139 
Other time deposits3,361,979 2,775,991 2,393,083 2,479,304 2,544,011 
Total core deposits34,158,076 34,763,041 35,975,415 35,510,663 35,607,390 
Brokered deposits759,716 237,789 78,248 28,312 — 
Total deposits34,917,792 35,000,830 36,053,663 35,538,975 35,607,390 
Federal funds purchased and interbank borrowings618,955 581,489 301,031 1,561 1,721 
Securities sold under agreements to repurchase393,018 432,804 438,053 476,173 509,275 
Federal Home Loan Bank advances4,981,612 3,829,018 2,804,617 3,283,963 3,239,357 
Other borrowings746,869 743,003 721,049 622,714 597,207 
Total borrowed funds6,740,454 5,586,314 4,264,750 4,384,411 4,347,560 
Operating lease liabilities205,249 211,964 207,725 215,188 234,049 
Accrued expenses and other liabilities701,723 835,669 746,005 530,998 413,535 
Total liabilities42,565,218 41,634,777 41,272,143 40,669,572 40,602,534 
Preferred stock, common stock, surplus, and retained earnings5,985,784 5,915,017 5,751,833 5,647,916 5,570,313 
Accumulated other comprehensive income (loss), net of tax(708,358)(786,422)(808,450)(569,133)(338,199)
Total shareholders' equity5,277,426 5,128,595 4,943,383 5,078,783 5,232,114 
Total liabilities and shareholders' equity$47,842,644 $46,763,372 $46,215,526 $45,748,355 $45,834,648 
8

Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
Three Months EndedThree Months EndedThree Months Ended
March 31, 2023December 31, 2022March 31, 2022
Average
Income1/
Yield/Average
Income1/
Yield/Average
Income1/
Yield/
Earning Assets:BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Money market and other interest-earning investments$497,953 $3,098 2.52 %$324,801 $(259)(0.32)%$1,336,404 $308 0.09 %
Investments:
Treasury and government-sponsored agencies2,197,426 16,531 3.01 %2,151,746 14,683 2.73 %2,195,470 8,219 1.50 %
Mortgage-backed securities5,429,200 35,090 2.59 %5,470,753 35,344 2.58 %4,869,038 24,377 2.00 %
States and political subdivisions1,808,316 14,690 3.25 %1,818,431 14,849 3.27 %1,738,652 13,637 3.14 %
Other securities738,139 8,604 4.66 %702,730 7,741 4.41 %605,552 4,144 2.74 %
Total investments10,173,081 74,915 2.95 %10,143,660 72,617 2.86 %9,408,712 50,377 2.14 %
Loans:2
Commercial9,457,089 147,620 6.24 %9,330,906 132,711 5.69 %5,893,907 55,283 3.75 %
Commercial and agriculture real estate12,654,366 179,475 5.67 %12,317,057 161,766 5.25 %8,749,162 77,408 3.54 %
Consumer:
Home equity929,477 19,070 8.32 %949,925 16,926 7.07 %783,729 7,355 3.81 %
Other consumer loans1,706,873 19,038 4.52 %1,766,527 19,906 4.47 %1,320,923 14,560 4.47 %
Subtotal commercial and consumer loans24,747,805 365,203 5.91 %24,364,415 331,309 5.43 %16,747,721 154,606 3.74 %
Residential real estate loans6,523,074 58,099 3.56 %6,373,819 59,532 3.74 %3,990,716 33,986 3.41 %
Total loans31,270,879 423,302 5.42 %30,738,234 390,841 5.08 %20,738,437 188,592 3.64 %
Total earning assets$41,941,913 $501,315 4.79 %$41,206,695 $463,199 4.49 %$31,483,553 $239,277 3.04 %
Less: Allowance for credit losses on loans(304,393)(303,009)(168,175)
Non-earning Assets:
Cash and due from banks$437,872 $368,874 $268,836 
Other assets4,907,115 4,861,247 3,480,640 
Total assets$46,982,507 $46,133,807 $35,064,854 
Interest-Bearing Liabilities:
Checking and NOW accounts$7,988,579 $19,359 0.98 %$8,482,651 $13,189 0.62 %$6,784,653 $596 0.04 %
Savings accounts6,183,409 2,230 0.15 %6,482,369 1,558 0.10 %5,302,015 589 0.05 %
Money market accounts5,641,288 20,010 1.44 %5,382,254 8,091 0.60 %3,778,682 691 0.07 %
Other time deposits3,057,870 15,289 2.03 %2,540,619 5,688 0.89 %1,745,153 1,318 0.31 %
Total interest-bearing core deposits22,871,146 56,888 1.01 %22,887,893 28,526 0.49 %17,610,503 3,194 0.07 %
Brokered deposits500,530 5,705 4.62 %129,745 1,366 4.18 %— — 0.00 %
Total interest-bearing deposits23,371,676 62,593 1.09 %23,017,638 29,892 0.52 %17,610,503 3,194 0.07 %
Federal funds purchased and interbank borrowings419,291 4,839 4.68 %475,431 4,299 3.59 %1,113 — 0.01 %
Securities sold under agreements to repurchase412,819 779 0.77 %409,916 556 0.54 %449,939 96 0.09 %
Federal Home Loan Bank advances4,273,343 37,996 3.61 %3,266,896 25,609 3.11 %2,589,984 5,963 0.93 %
Other borrowings781,221 7,954 4.13 %753,401 6,375 3.36 %432,434 3,467 3.21 %
Total borrowed funds5,886,674 51,568 3.55 %4,905,644 36,839 2.98 %3,473,470 9,526 1.11 %
Total interest-bearing liabilities$29,258,350 $114,161 1.58 %$27,923,282 $66,731 0.95 %$21,083,973 $12,720 0.24 %
Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits$11,526,267 $12,373,495 $9,294,876 
Other liabilities1,031,702 900,448 467,589 
Shareholders' equity5,166,188 4,936,582 4,218,416 
Total liabilities and shareholders' equity$46,982,507 $46,133,807 $35,064,854 
Net interest rate spread3.21 %3.54 %2.80 %
Net interest margin (GAAP)3.64 %3.80 %2.83 %
Net interest margin (FTE)3
3.69 %3.85 %2.88 %
FTE adjustment$5,666 $5,378 $3,772 
1 Interest income is reflected on a FTE.
2 Includes loans held for sale.
3 Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
9

Asset Quality (EOP) (unaudited)
($ in thousands)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Allowance for credit losses:
Beginning allowance for credit losses on loans$303,671 $302,254 $288,003 $280,507 $107,341 
Allowance established for acquired PCD loans— — 10,558 — 78,531 
Provision for credit losses on loans11,469 5,389 11,288 9,254 97,409 
Gross charge-offs(18,180)(7,081)(11,440)(4,096)(4,664)
Gross recoveries1,751 3,109 3,845 2,338 1,890 
NCOs(16,429)(3,972)(7,595)(1,758)(2,774)
Ending allowance for credit losses on loans$298,711 $303,671 $302,254 $288,003 $280,507 
Beginning allowance for credit losses on unfunded commitments$32,188 $26,169 $21,966 $22,046 $10,879 
Provision (release) for credit losses on
unfunded commitments		1,968 6,019 4,203 (80)11,167 
Ending allowance for credit losses on unfunded commitments$34,156 $32,188 $26,169 $21,966 $22,046 
Allowance for credit losses$332,867 $335,859 $328,423 $309,969 $302,553 
Provision for credit losses on loans$11,469 $5,389 $11,288 $9,254 $97,409 
Provision (release) for credit losses on
unfunded commitments1
1,968 6,019 4,203 (80)11,167 
Provision for credit losses1
$13,437 $11,408 $15,491 $9,174 $108,576 
NCOs / average loans2
0.21 %0.05 %0.10 %0.02 %0.05 %
Average loans2
$31,270,299 $30,737,698 $29,890,008 $28,847,003 $20,725,313 
EOP loans2
31,822,374 31,123,641 30,528,933 29,553,648 28,336,244 
ACL on loans / EOP loans2
0.94 %0.98 %0.99 %0.97 %0.99 %
ACL / EOP loans2
1.05 %1.08 %1.08 %1.05 %1.07 %
Underperforming Assets:
Loans 90 days and over (still accruing)$1,231 $2,650 $767 $882 $1,646 
NPLs:
      Nonaccrual loans3,4
234,337 238,178 233,659 214,924 227,925 
      TDRs still accruing4
N/A15,313 13,674 15,665 20,999 
         Total NPLs234,337 253,491 247,333 230,589 248,924 
   Foreclosed assets10,817 10,845 11,967 12,618 19,713 
Total underperforming assets$246,385 $266,986 $260,067 $244,089 $270,283 
Classified and Criticized Assets:
Nonaccrual loans3
$234,337 $238,178 $233,659 $214,924 $227,925 
Substandard loans (still accruing)570,229 504,657 476,724 490,566 518,341 
Loans 90 days and over (still accruing)1,231 2,650 767 882 1,646 
Total classified loans - "problem loans"805,797 745,485 711,150 706,372 747,912 
Other classified assets26,441 24,735 24,773 25,004 24,676 
Criticized loans - "special mention loans"593,307 636,069 549,994 452,835 507,689 
Total classified and criticized assets$1,425,545 $1,406,289 $1,285,917 $1,184,211 $1,280,277 
Loans 30-89 days past due$42,071 $55,522 $65,632 $48,889 $94,114 
NPLs / EOP loans2
0.74 %0.81 %0.81 %0.78 %0.88 %
ACL to NPLs142 %132 %133 %134 %122 %
Under-performing assets/EOP loans2
0.77 %0.86 %0.85 %0.83 %0.95 %
Under-performing assets/EOP assets0.51 %0.57 %0.56 %0.53 %0.59 %
30+ day delinquencies2
0.14 %0.19 %0.22 %0.17 %0.34 %
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 amounts prior to December 31, 2022 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 and $23.8 million at March 31, 2022.
4 As a result of accounting guidance adopted in 2023, the TDR classification is no longer applicable subsequent to December 31, 2022.
 PCD - Purchased credit deteriorated TDR - Troubled debt restructuring
10

Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Earnings Per Share:
Net income applicable to common shares$142,566 $196,701 $136,119 $110,952 $(29,603)
Adjustments:
Merger related charges2
14,558 20,314 22,743 36,585 52,299 
Tax effect1
(3,172)(5,160)(8,529)(13,057)(9,534)
Merger related charges, net11,386 15,154 14,214 23,528 42,765 
Debt Securities (gains) losses5,216 173 172 85 (342)
Tax effect1
(1,137)(44)(65)(30)62 
Debt securities (gains) losses, net4,079 129 107 55 (280)
Property optimization1,317 26,818 — — — 
Tax effect1
(287)(6,812)— — — 
Property optimization, net1,030 20,006 — — — 
Gain on sale of health savings accounts— (90,673)— — — 
Tax effect1
— 23,031 — — — 
Gain on sale of health savings accounts, net— (67,642)— — — 
Day 1 non-PCD— — — — 96,270 
Tax effect1
— — — — (17,550)
Day 1 non-PCD, net— — — — 78,720 
Total adjustments, net16,495 (32,353)14,321 23,583 121,205 
Net income applicable to common shares, adjusted$159,061 $164,348 $150,440 $134,535 $91,602 
Weighted average diluted common shares outstanding292,756 293,131 292,483 291,881 227,002 
EPS, diluted$0.49 $0.67 $0.47 $0.38 $(0.13)
Adjusted EPS, diluted$0.54 $0.56 $0.51 $0.46 $0.40 
NIM:
Net interest income$381,488 $391,090 $376,589 $337,472 $222,785 
Add: FTE adjustment1
5,666 5,378 4,950 4,314 3,772 
Net interest income (FTE)$387,154 $396,468 $381,539 $341,786 $226,557 
Average earning assets$41,941,913 $41,206,695 $41,180,026 $41,003,338 $31,483,553 
NIM (GAAP)3.64 %3.80 %3.66 %3.29 %2.83 %
NIM (FTE)3.69 %3.85 %3.71 %3.33 %2.88 %




11

Non-GAAP Measures (unaudited)
($ in thousands)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
PPNR:
Net interest income (FTE)1
$387,154 $396,468 $381,539 $341,786 $226,557 
Add: Noninterest income70,681 165,037 80,385 89,117 65,240 
Total revenue (FTE)457,835 561,505 461,924 430,903 291,797 
Less: Noninterest expense(250,711)(282,675)(262,444)(277,475)(215,589)
PPNR$207,124 $278,830 $199,480 $153,428 $76,208 
Adjustments:
Gain on sale of health savings accounts$— $(90,673)$— $— $— 
Debt securities (gains) losses5,216 173 172 85 (342)
Noninterest income adjustments5,216 (90,500)172 85 (342)
Adjusted noninterest income75,897 74,537 80,557 89,202 64,898 
Adjusted revenue$463,051 $471,005 $462,096 $430,988 $291,455 
Adjustments:
Merger related charges3
$14,558 $20,314 $22,743 $36,585 $41,286 
Property optimization1,317 26,818 — — — 
Noninterest expense adjustments15,875 47,132 22,743 36,585 41,286 
Adjusted total noninterest expense(234,836)(235,543)(239,701)(240,890)(174,303)
Adjusted PPNR$228,215 $235,462 $222,395 $190,098 $117,152 
Efficiency Ratio:
Noninterest expense$250,711 $282,675 $262,444 $277,475 $215,589 
Less: Amortization of intangibles(6,186)(6,787)(7,089)(7,170)(4,811)
Noninterest expense, excl. amortization of intangibles244,525 275,888 255,355 270,305 210,778 
Less: Amortization of tax credit investments(2,761)(5,258)(2,662)(1,525)(1,516)
Less: Noninterest expense adjustments(15,875)(47,132)(22,743)(36,585)(41,286)
Adjusted noninterest expense$225,889 $223,498 $229,950 $232,195 $167,976 
Total revenue (FTE)1
$457,835 $561,505 $461,924 $430,903 $291,797 
Less: Debt securities (gains) losses5,216 173 172 85 (342)
Total revenue excl. debt securities (gains) losses463,051 561,678 462,096 430,988 291,455 
Less: Gain on sale of health savings accounts— (90,673)— — — 
Total adjusted revenue $463,051 $471,005 $462,096 $430,988 $291,455 
Efficiency Ratio52.8 %49.1 %55.3 %62.7 %72.3 %
Efficiency Ratio (prior presentation)4
N/AN/A56.2 %62.7 %76.2 %
Adjusted Efficiency Ratio48.8 %47.5 %49.8 %53.9 %57.6 %
Adjusted Efficiency Ratio (prior presentation)4
N/AN/A50.7 %53.9 %57.7 %
12

Non-GAAP Measures (unaudited)
($ in thousands)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
ROAE and ROATCE:
Net income (loss) applicable to common shares$142,566 $196,701 $136,119 $110,952 $(29,603)
Amortization of intangibles 6,186 6,787 7,089 7,170 4,811 
Tax effect1
(1,547)(1,697)(1,772)(1,793)(877)
Amortization of intangibles, net4,639 5,090 5,317 5,377 3,934 
Net income (loss) applicable to common shares, excluding intangible amortization147,205 201,791 141,436 116,329 (25,669)
Total adjustments, net (see pg.11)16,495 (32,353)14,321 23,583 121,205 
Adjusted tangible net income applicable to common shares$163,700 $169,438 $155,757 $139,912 $95,536 
Average shareholders' equity$5,166,188 $4,936,582 $5,134,153 $5,129,900 $4,218,416 
Less: Average preferred equity(243,719)(243,719)(243,719)(243,719)(117,210)
Average shareholders' common equity$4,922,469 $4,692,863 $4,890,434 $4,886,181 $4,101,206 
Average goodwill and other intangible assets(2,122,157)(2,132,480)(2,129,858)(2,136,964)(1,550,624)
Average tangible shareholder's common equity$2,800,312 $2,560,383 $2,760,576 $2,749,217 $2,550,582 
ROAE11.6 %16.8%11.1%9.1%(2.9)%
ROAE, adjusted12.9 %14.0%12.3%11.0%8.9%
ROATCE21.0 %31.5%20.5%16.9%(4.0)%
ROATCE, adjusted23.4 %26.5%22.6%20.4%15.0%
13

Non-GAAP Measures (unaudited)
($ in thousands)
As of
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Tangible Common Equity:
Shareholders' equity$5,277,426 $5,128,595 $4,943,383 $5,078,783 $5,232,114 
Less: Preferred equity (243,719)(243,719)(243,719)(243,719)(243,719)
Shareholders' common equity $5,033,707 $4,884,876 $4,699,664 $4,835,064 $4,988,395 
Less: Goodwill and other intangible assets(2,118,935)(2,125,121)(2,135,792)(2,131,815)(2,144,609)
Tangible shareholders' common equity $2,914,772 $2,759,755 $2,563,872 $2,703,249 $2,843,786 
Total assets $47,842,644 $46,763,372 $46,215,526 $45,748,355 $45,834,648 
Less: Goodwill and other intangible assets(2,118,935)(2,125,121)(2,135,792)(2,131,815)(2,144,609)
Tangible assets $45,723,709 $44,638,251 $44,079,734 $43,616,540 $43,690,039 
Risk-weighted assets5
$36,856,873 $35,950,900 $34,741,765 $33,662,205 $32,341,335 
Tangible common equity to tangible assets 6.37 %6.18 %5.82 %6.20 %6.51 %
Tangible common equity to risk-weighted assets5
7.91 %7.68 %7.38 %8.03 %8.79 %
Tangible Common Equity:
Common shares outstanding291,922 292,903 292,880 292,893 292,959 
Tangible common book value$9.98 $9.42 $8.75 $9.23 $9.71 
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.
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.
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 March 31, 2023 figures are preliminary.
14