Old National reports 1st quarter earnings of $86.8 million, or $0.52 per share

EVANSVILLE, Ind., April 19, 2021 (GLOBE NEWSWIRE) --

Old National Bancorp (NASDAQ: ONB) reports 1Q21 net income of $86.8 million, diluted EPS of $0.52.

Adjusted1 net income of $86.4 million, or $0.52 per diluted share.

CEO COMMENTARY:

"Old National's positive first quarter results were driven by record first-quarter commercial loan production, strong mortgage revenue and excellent credit quality," said Chairman and CEO Jim Ryan. "We also continue to work with our small business and non-profit clients who are affected by the pandemic to help them gain access to Paycheck Protection Program funds and also to complete the loan forgiveness process."

FIRST QUARTER HIGHLIGHTS²:

Net income	Net income of $86.8 million
	Earnings per diluted share of $0.52
Net interest income/NIM	Net interest income on a fully taxable equivalent basis of $151.6 million compared to $164.6 million
	Net interest margin on a fully taxable equivalent basis of 2.94% compared to 3.26%
Operating Performance	Pre-provision net revenue1 (“PPNR”) of $90.6 million
	Adjusted PPNR1 of $91.3 million, up 17.9% over first quarter of 2020
	Noninterest expense of $117.7 million
	Adjusted noninterest expense1 of $115.0 million
	Efficiency ratio1 of 55.57%
	Adjusted efficiency ratio1 of 54.25%
Loans and Credit Quality	End-of-period total loans3 of $13,975.5 million compared to $13,849.7 million
	º       Total commercial loans increased $59.0 million, excluding the $181.1 million increase in PPP loans
	First-quarter total commercial production of $718.0 million
	Provision for credit losses was a recapture of $17.4 million
	March 31 pipeline of $2.6 billion
	Net recoveries of $5 thousand compared to net recoveries of $1.1 million
	Non-performing loans of 1.13% of total loans compared to 1.20%
Return Profile & Capital	Return on average common equity of 11.69%
	Return on average tangible common equity1 of 18.88%
	Adjusted return on average tangible common equity1 of 18.79%
	No shares of common stock were repurchased during the current quarter
Notable Items	$1.5 million in ONB Way charges
	$1.2 million in tax credit amortization

¹ Non-GAAP financial measure that Management believes is useful in evaluating the financial results of the Company – please 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

RESULTS OF OPERATIONS

Old National Bancorp reported first quarter 2021 net income of $86.8 million, or $0.52 per diluted share.

Included in the first quarter were pre-tax charges of $1.5 million for the ONB Way. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $86.4 million, or $0.52 per diluted share.

LOANS
Strong commercial production continues.

• Period-end total loans were $13,975.5 million at March 31, 2021, an increase of $125.8 million, or 3.6% annualized, when compared to the $13,849.7 million at December 31, 2020.
• Paycheck Protection Program (PPP) loans totaled $1,124.1 million at March 31, 2021, compared to $943.0 million at December 31, 2020.
• Excluding the $181.1 million increase in PPP loans during the quarter, total loans decreased $55.3 million, or 1.7% annualized.
• Excluding PPP loans, total commercial and industrial loans increased $59.0 million, or 2.6% annualized.
• Total commercial loan production in the first quarter was $718.0 million; period-end pipeline totaled $2.6 billion.
• Consumer loans decreased $56.2 million to $1,579.0 million and residential mortgage loans decreased $45.1 million to $2,203.3 million.
• Average total loans in the first quarter were $13,832.2 million, a decrease of $95.6 million from the fourth quarter of 2020.
• Excluding PPP loans, average total loans in the first quarter increased $117.6 million from the fourth quarter of 2020.

DEPOSITS
Government stimulus actions continue to bolster deposit balances.

• Period-end total deposits were $17,849.8 million at March 31, 2021, an increase of $812.3 million, or 19.1% annualized, when compared to the $17,037.5 million at December 31, 2020.
• Interest-bearing checking deposits increased $56.7 million to $4,933.8 million at March 31, 2021.
• Noninterest-bearing deposits increased $457.4 million to $6,091.1 million at March 31, 2021 from $5,633.7 million at December 31, 2020.
• On average, total deposits in the first quarter were $17,341.8 million, compared to $16,810.6 million in the fourth quarter of 2020.

NET INTEREST INCOME AND MARGIN
Decrease in PPP fees negatively impact net interest income and margin; deposit and funding costs continue to decline.

• Net interest income decreased to $148.1 million in the first quarter of 2021 compared to $161.1 million in the fourth quarter of 2020.
• The net interest margin on a fully taxable equivalent basis decreased 32 basis points to 2.94% compared to 3.26% in the fourth quarter of 2020.
• PPP interest and net fees combined were $12.6 million, or 10 basis points of net interest margin, in the first quarter of 2021 compared to $22.6 million, or 26 basis points of net interest margin, in the fourth quarter of 2020.
• Accretion income was $4.7 million, or 9 basis points of net interest margin, in the first quarter of 2021 compared to $5.4 million, or 10 basis points of net interest margin, in the fourth quarter of 2020. In the first quarter of 2021, accretion income was 2.3% of adjusted total revenue.
• Interest collected on nonaccrual loans was $0.6 million, or 1 basis point of net interest margin, in the first quarter of 2021 compared to $0.9 million, or 2 basis points of net interest margin, in the fourth quarter of 2020.
• The cost of total deposits declined 2 basis points to 0.07% in the first quarter of 2021 while the cost of total interest-bearing deposits decreased 2 basis points to 0.11%.

CREDIT QUALITY
Strong credit quality remains a hallmark of the Old National franchise.

• Old National recorded a provision recapture in the first quarter of 2021 of $17.4 million, compared to $1.1 million in provision recapture recorded in the fourth quarter of 2020.
• Net recoveries in the first quarter were $5 thousand, compared to net recoveries of $1.1 million in the fourth quarter of 2020.
• 30-89 day delinquencies were 0.12% at the end of the first quarter.
• Non-performing loans decreased as a percentage of total loans to 1.13%.
• Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of March 31, 2021, the remaining discount on these acquired loans was $45.9 million.
• The allowance for credit losses stood at $114.0 million, or 0.82% of total loans at March 31, 2021.

NONINTEREST INCOME
Noninterest income decreased due to lower capital markets income.

• Total noninterest income for the first quarter of 2021 was $56.7 million, a decrease of $1.8 million from the fourth quarter of 2020.
• Capital markets income decreased $2.8 million when compared to the fourth quarter of 2020.
• Gains on sales of debt securities increased $1.8 million when compared to the fourth quarter of 2020.
  

NONINTEREST EXPENSE
First quarter expense discipline helped drive positive operating leverage¹.

• Noninterest expense for the first quarter of 2021 was $117.7 million and included $1.5 million in ONB Way charges and $1.2 million in tax credit amortization.
• Excluding these items, adjusted noninterest expense for the first quarter was $115.0 million, compared to the $128.8 million in adjusted noninterest expense in the fourth quarter of 2020.
• The first quarter efficiency ratio was 55.57%, while the adjusted efficiency ratio was 54.25%.
• Adjusted operating leverage¹ was +919 basis points for the first quarter of 2021 as compared to the first quarter of 2020.

INCOME TAXES

• On a fully taxable-equivalent basis, income tax expense in the first quarter was $21.2 million, resulting in a 19.6% FTE tax rate.
• Income tax expense included $1.7 million in tax credit benefit.

CAPITAL AND LIQUIDITY
Capital ratios remain strong.

• At the end of the first quarter, preliminary total risk-based capital was 12.84% and preliminary regulatory tier 1 capital was 12.01%.
• Tangible common equity to tangible assets was 8.38% at the end of the first quarter compared to 8.64% in the fourth quarter of 2020.
• The Company did not repurchase any shares of common stock during the first quarter.
• A low loan to deposit ratio of 78.3%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.

NON-GAAP RECONCILIATIONS

($ in millions, except EPS, shares in 000s)	1Q21				Adjustments4				Adjusted 1Q21
Total Revenues (FTE)	$	208.3			$	(2.0	)		$	206.3
Less: Provision for Credit Losses	17.4				—				17.4
Less: Noninterest Expenses	(117.7		)		1.5				(116.2		)
Income before Income Taxes (FTE)	$	108.0			$	(0.5	)		$	107.5
Income Taxes	(21.2		)		0.1				(21.1		)
Net Income	$	86.8			$	(0.4	)		$	86.4
Average Shares Outstanding	165,707				—				165,707
Earnings Per Share - Diluted	$	0.52			$	—			$	0.52

⁴ Tax-effect calculations use the current statutory FTE tax rates (federal + state)

($ in millions)	1Q21			4Q20
Net Interest Income	$	148.1		$	161.1
Add: FTE Adjustment	3.5			3.5
Net Interest Income (FTE)	$	151.6		$	164.6
Average Earning Assets	$	20,601.7		$	20,182.0
Net Interest Margin (FTE)	2.94		%	3.26		%

($ in millions)	1Q21				1Q20
Net Interest Income	$	148.1			$	143.8
Add: FTE Adjustment	3.5				3.3
Net Interest Income (FTE)	$	151.6			$	147.1
Add: Total Noninterest Income	56.7				57.5
Less: Noninterest Expense	117.7				158.7
Pre-Provision Net Revenue	$	90.6			$	45.9
Less: Debt Securities Gains/Losses	(2.0		)		(5.2		)
Add: ONB Way Charges	1.5				31.2
Add: Amortization of Tax Credit Investments	1.2				5.5
Adjusted Pre-Provision Net Revenue	$	91.3			$	77.4

($ in millions)	1Q21				4Q20				1Q20
Noninterest Expense	$	117.7			$	142.3			$	158.7
Less: ONB Way Charges	(1.5		)		(3.6		)		(31.2		)
Noninterest Expense less Charges	$	116.2			$	138.7			$	127.5
Less: Amortization of Tax Credit Investments	(1.2		)		(9.9		)		(5.5		)
Adjusted Noninterest Expense	$	115.0			$	128.8			$	122.0
Less: Intangible Amortization	(3.1		)		(3.3		)		(3.8		)
Adjusted Noninterest Expense Less Intangible Amortization	$	111.9			$	125.5			$	118.2
Net Interest Income	$	148.1			$	161.1			$	143.8
FTE Adjustment	3.5				3.5				3.3
Net Interest Income (FTE)	$	151.6			$	164.6			$	147.1
Total Noninterest Income	56.7				58.5				57.5
Total Revenue (FTE)	$	208.3			$	223.1			$	204.6
Less: Debt Securities Gains/Losses	(2.0		)		(0.2		)		(5.2		)
Less: Gain on Branch Actions	—				(0.1		)		—
Adjusted Total Revenue (FTE)	$	206.3			$	222.8			$	199.4
Efficiency Ratio	55.57			%	62.37			%	77.71			%
Adjusted Efficiency Ratio	54.25			%	56.35			%	59.31			%
Operating Leverage5 (basis points)	2,762
Adjusted Operating Leverage6 (basis points)	919

⁵ Year-over-year basis point change in noninterest expenses plus change in total revenue
⁶ Year-over-year basis point change in adjusted noninterest expense plus change in adjusted total revenue

($ in millions)	1Q21				4Q20
Net Income	$	86.8			$	74.1
Add: Intangible Amortization (net of tax7)	2.3				2.4
Tangible Net Income	$	89.1			$	76.5
Less: Securities Gains/Losses (net of tax7)	(1.5		)		(0.2		)
Add: Gains/Losses on Branch Actions (net of tax7)	—				(0.1		)
Add: ONB Way Charges (net of tax7)	1.1				2.7
Adjusted Tangible Net Income	$	88.7			$	78.9
Average Total Shareholders’ Equity	2,970.0				2,932.6
Less: Average Goodwill	(1,037.0		)		(1,037.0		)
Less: Average Intangibles	(44.4		)		(47.5		)
Average Tangible Shareholders’ Equity	$	1,888.6			$	1,848.1
Return on Average Tangible Common Equity	18.88			%	16.57			%
Adjusted Return on Average Tangible Common Equity	18.79			%	17.08			%

⁷Tax-effect calculations use the current statutory FTE tax rates (federal + state)

CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Monday, April 19, 2021, to review first-quarter 2021 financial results. The live audio web cast of the call, along with the 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. A replay of the call will also be available from Noon Central Time on April 19 through May 3. To access the replay, dial 1-855-859-2056, Conference ID Code 9135118.

ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $23.7 billion in assets, it ranks among the top 100 banking companies in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for ten consecutive years.  Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships and keeping our clients at the center of all we do. This is an approach to business that we call The ONB Way. Today, Old National’s footprint includes Indiana, Kentucky, Michigan, Minnesota and Wisconsin. 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
This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

FORWARD-LOOKING STATEMENT
This press release 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 Bancorp’s (“Old National’s”) financial condition, results of operations, asset and credit quality trends and profitability.  Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” 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, such as statements about the potential impacts of the COVID-19 pandemic. There are a number of factors that could cause actual results to differ materially from those in such statements.  Factors that might cause such a difference include, but are not limited to: the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses; market, economic, operational, liquidity, credit and interest rate risks associated with Old National’s business (including developments and volatility arising from the COVID-19 pandemic); competition; heightened regulatory and governmental oversight and scrutiny of Old National's business practices; current, pending or future government legislation and policies (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations); ability of Old National to execute its business plan, including the anticipated impact from the ONB Way strategic plan that may differ from current estimates; changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; failure or disruption of our information systems; significant changes in accounting, tax or regulatory practices or requirements, including the impact of the CECL standard as well as changes to address the impact of COVID-19; new legal obligations or liabilities or unfavorable resolutions of litigations; disruptive technologies in payment systems and other services traditionally provided by banks; computer hacking and other cybersecurity threats; other matters discussed in this press release; and other factors identified in our Annual Report on Form 10-K and other periodic filings with the SEC.  These forward-looking statements are made only as of the date of this press release, and Old National does not undertake an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.

Financial Highlights (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended
	March 31,				December 31,					March 31,
	2021				2020					2020
Income Statement
Net interest income	$	148,120				$	161,079				$	143,771
Tax equivalent adjustment (1)	3,500				3,517					3,323
Net interest income - tax equivalent basis	151,620				164,596					147,094
Provision for credit losses	(17,356		)		(1,100			)		16,950
Noninterest income	56,712				58,552					57,502
Noninterest expense	117,740				142,318					158,744
Net income	86,818				74,120					22,640
Per Common Share Data
Weighted average diluted shares	165,707				165,631					168,404
Net income (diluted)	$	0.52				$	0.44				$	0.13
Cash dividends	0.14				0.14					0.14
Common dividend payout ratio (2)	26			%	31				%	108			%
Book value	$	17.98				$	17.98				$	17.10
Stock price	19.34				16.56					13.19
Tangible common book value (3)	11.47				11.43					10.48
Performance Ratios
Return on average assets	1.49			%	1.30				%	0.44			%
Return on average common equity	11.69			%	10.11				%	3.20			%
Return on tangible common equity (3)	18.77			%	16.20				%	5.89			%
Return on average tangible common equity (3)	18.88			%	16.57				%	5.86			%
Net interest margin (FTE)	2.94			%	3.26				%	3.31			%
Efficiency ratio (4)	55.57			%	62.37				%	77.71			%
Net charge-offs (recoveries) to average loans	0.00			%	(0.03			)	%	0.21			%
Allowance for credit losses to ending loans	0.82			%	0.95				%	0.86			%
Non-performing loans to ending loans	1.13			%	1.20				%	1.16			%
Balance Sheet (EOP)
Total loans	$	13,925,261				$	13,786,479				$	12,384,612
Total assets	23,744,451				22,960,622					20,741,141
Total deposits	17,849,755				17,037,453					14,305,362
Total borrowed funds	2,574,987				2,676,554					3,245,214
Total shareholders' equity	2,979,447				2,972,656					2,823,435
Capital Ratios (3)
Risk-based capital ratios (EOP):
Tier 1 common equity	12.01			%	11.75				%	11.40			%
Tier 1	12.01			%	11.75				%	11.40			%
Total	12.84			%	12.69				%	12.28			%
Leverage ratio (to average assets)	8.33			%	8.20				%	8.46			%
Total equity to assets (averages)	12.78			%	12.83				%	13.91			%
Tangible common equity to tangible assets	8.38			%	8.64				%	8.81			%
Nonfinancial Data
Full-time equivalent employees	2,451				2,445					2,736
Banking centers	162				162					192
(1) Calculated using the federal statutory tax rate in effect of 21% for all periods.
(2) Cash dividends per share divided by net income per share (basic).
(3) Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
March 31, 2021 capital ratios are preliminary.
(4) Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and
noninterest revenues, excluding net gains from debt securities transactions. This presentation excludes amortization of intangibles
and net debt securities gains, as is common in other company releases, and better aligns with true operating performance.
FTE - Fully taxable equivalent basis             EOP - End of period actual balances

Income Statement (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended
	March 31,				December 31,				March 31,
	2021				2020				2020
Interest income	$	159,237			$	173,249			$	167,999
Less: interest expense	11,117				12,170				24,228
Net interest income	148,120				161,079				143,771
Provision for credit losses	(17,356		)		(1,100		)		16,950
Net interest income after provision for credit losses	165,476				162,179				126,821
Wealth management fees	9,708				9,259				8,884
Service charges on deposit accounts	8,124				8,724				10,077
Debit card and ATM fees	5,143				5,072				4,998
Mortgage banking revenue	16,525				16,233				11,119
Investment product fees	5,864				5,544				5,874
Capital markets income	3,715				6,545				4,328
Company-owned life insurance	2,714				3,153				3,080
Other income	2,926				3,861				3,968
Gains (losses) on sales of debt securities	1,993				161				5,174
Total noninterest income	56,712				58,552				57,502
Salaries and employee benefits	68,117				78,001				79,173
Occupancy	14,872				13,008				15,133
Equipment	3,969				3,778				5,305
Marketing	2,062				3,242				3,097
Data processing	12,353				12,362				9,467
Communication	2,878				2,396				2,798
Professional fees	2,724				4,834				4,293
FDIC assessment	1,607				1,780				1,609
Amortization of intangibles	3,075				3,244				3,776
Amortization of tax credit investments	1,202				9,871				5,515
Other expense	4,881				9,802				28,578
Total noninterest expense	117,740				142,318				158,744
Income before income taxes	104,448				78,413				25,579
Income tax expense	17,630				4,293				2,939
Net income	$	86,818			$	74,120			$	22,640
Diluted Earnings Per Share
Net income	$	0.52			$	0.44			$	0.13
Average Common Shares Outstanding
Basic	164,997				164,799				167,748
Diluted	165,707				165,631				168,404
Common shares outstanding at end of period	165,676				165,367				165,109

Balance Sheet (unaudited)
($ in thousands)
	March 31,				December 31,				March 31,
	2021				2020				2020
Assets
Federal Reserve Bank account	$	293,230			$	307,967			$	130,295
Money market investments	10,217				13,537				9,349
Investments:
Treasury and government-sponsored agencies	1,602,423				852,196				530,904
Mortgage-backed securities	3,385,339				3,339,098				3,210,000
States and political subdivisions	1,467,804				1,492,162				1,302,395
Other securities	440,810				458,639				497,709
Total investments	6,896,376				6,142,095				5,541,008
Loans held for sale, at fair value	50,281				63,250				54,209
Loans:
Commercial	4,068,896				3,956,422				3,046,579
Commercial and agriculture real estate	6,074,135				5,946,512				5,283,464
Consumer:
Home equity	541,149				556,414				561,789
Other consumer loans	1,037,804				1,078,709				1,164,929
Subtotal of commercial and consumer loans	11,721,984				11,538,057				10,056,761
Residential real estate	2,203,277				2,248,422				2,327,851
Total loans	13,925,261				13,786,479				12,384,612
Total earning assets	21,175,365				20,313,328				18,119,473
Allowance for credit losses	(114,037		)		(131,388		)		(106,380		)
Non-earning Assets:
Cash and due from banks	154,330				268,208				203,533
Premises and equipment, net	466,559				464,408				462,364
Operating lease right-of-use assets	74,611				76,197				86,819
Goodwill and other intangible assets	1,079,933				1,083,008				1,093,323
Company-owned life insurance	456,782				456,110				450,148
Other assets	450,908				430,751				431,861
Total non-earning assets	2,683,123				2,778,682				2,728,048
Total assets	$	23,744,451			$	22,960,622			$	20,741,141
Liabilities and Equity
Noninterest-bearing demand deposits	$	6,091,054			$	5,633,672			$	4,058,559
Interest-bearing:
Checking and NOW accounts	4,933,770				4,877,046				4,105,006
Savings accounts	3,631,145				3,395,747				2,853,305
Money market accounts	2,075,852				1,908,118				1,746,798
Other time deposits	1,042,903				1,103,313				1,469,185
Total core deposits	17,774,724				16,917,896				14,232,853
Brokered deposits	75,031				119,557				72,509
Total deposits	17,849,755				17,037,453				14,305,362
Federal funds purchased and interbank borrowings	922				1,166				560,770
Securities sold under agreements to repurchase	395,242				431,166				318,067
Federal Home Loan Bank advances	1,912,541				1,991,435				2,130,263
Other borrowings	266,282				252,787				236,114
Total borrowed funds	2,574,987				2,676,554				3,245,214
Operating lease liabilities	84,665				86,598				95,830
Accrued expenses and other liabilities	255,597				187,361				271,300
Total liabilities	20,765,004				19,987,966				17,917,706
Common stock, surplus, and retained earnings	2,887,538				2,824,885				2,685,278
Accumulated other comprehensive income (loss), net of tax	91,909				147,771				138,157
Total shareholders' equity	2,979,447				2,972,656				2,823,435
Total liabilities and shareholders' equity	$	23,744,451			$	22,960,622			$	20,741,141

Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
		Three Months Ended										Three Months Ended										Three Months Ended
		March 31, 2021										December 31, 2020										March 31, 2020
		Average				Income (1)/			Yield/			Average				Income (1)/			Yield/			Average				Income (1)/			Yield/
Earning Assets:		Balance				Expense			Rate			Balance				Expense			Rate			Balance				Expense			Rate
Money market and other interest-earning
investments		$	370,087			$	88		0.10	%		$	413,782			$	126		0.12	%		$	58,406			$	349		2.41	%
Investments:
Treasury and government-sponsored agencies		1,155,525				4,885			1.69	%		648,314				2,937			1.81	%		583,971				3,697			2.53	%
Mortgage-backed securities		3,312,311				15,833			1.91	%		3,291,436				16,137			1.96	%		3,171,650				19,065			2.40	%
States and political subdivisions		1,478,143				12,200			3.30	%		1,437,890				12,008			3.34	%		1,273,156				11,409			3.58	%
Other securities		453,411				2,743			2.42	%		462,836				2,629			2.27	%		494,500				3,216			2.60	%
Total investments		6,399,390				35,661			2.23	%		5,840,476				33,711			2.31	%		5,523,277				37,387			2.71	%
Loans: (2)
Commercial		3,974,762				35,568			3.58	%		4,132,831				46,468			4.40	%		2,907,297				29,053			3.95	%
Commercial and agriculture real estate		5,980,774				55,746			3.73	%		5,829,912				58,334			3.92	%		5,188,597				62,439			4.76	%
Consumer:
Home equity		544,049				4,152			3.10	%		550,548				4,380			3.17	%		558,356				5,631			4.06	%
Other consumer loans		1,058,731				10,175			3.90	%		1,099,504				11,276			4.08	%		1,167,802				12,219			4.21	%
Subtotal commercial and consumer loans		11,558,316				105,641			3.71	%		11,612,795				120,458			4.13	%		9,822,052				109,342			4.48	%
Residential real estate loans		2,273,859				21,347			3.76	%		2,314,938				22,471			3.88	%		2,370,295				24,244			4.09	%
Total loans		13,832,175				126,988			3.68	%		13,927,733				142,929			4.04	%		12,192,347				133,586			4.35	%
Total earning assets		$	20,601,652			$	162,737		3.16	%		$	20,181,991			$	176,766		3.46	%		$	17,774,030			$	171,322		3.84	%
Less: Allowance for credit losses		(133,869		)								(137,539		)								(83,244		)
Non-earning Assets:
Cash and due from banks		$	288,623									$	341,154									$	287,601
Other assets		2,486,604										2,479,253										2,388,092
Total assets		$	23,243,010									$	22,864,859									$	20,366,479
Interest-Bearing Liabilities:
Checking and NOW accounts		$	4,863,819			$	612		0.05	%		$	4,708,568			$	629		0.05	%		$	4,104,778			$	2,860		0.28	%
Savings accounts		3,495,319				487			0.06	%		3,329,494				487			0.06	%		2,828,177				1,298			0.18	%
Money market accounts		1,987,348				423			0.09	%		1,932,594				445			0.09	%		1,784,169				2,507			0.57	%
Other time deposits		1,081,248				1,607			0.60	%		1,158,715				2,189			0.75	%		1,562,074				5,186			1.34	%
Total interest-bearing core deposits		11,427,734				3,129			0.11	%		11,129,371				3,750			0.13	%		10,279,198				11,851			0.46	%
Brokered deposits		157,780				30			0.08	%		37,176				26			0.28	%		84,099				447			2.14	%
Total interest-bearing deposits		11,585,514				3,159			0.11	%		11,166,547				3,776			0.13	%		10,363,297				12,298			0.48	%
Federal funds purchased and interbank borrowings		1,144				—			0.00	%		843				—			0.03	%		392,857				1,240			1.27	%
Securities sold under agreements to repurchase		398,662				120			0.12	%		438,272				125			0.11	%		329,091				384			0.47	%
Federal Home Loan Bank advances		1,925,352				5,409			1.14	%		2,089,519				5,953			1.13	%		1,965,130				7,768			1.59	%
Other borrowings		263,010				2,429			3.69	%		240,815				2,316			3.85	%		240,276				2,538			4.23	%
Total borrowed funds		2,588,168				7,958			1.25	%		2,769,449				8,394			1.21	%		2,927,354				11,930			1.64	%
Total interest-bearing liabilities		$	14,173,682			$	11,117		0.32	%		$	13,935,996			$	12,170		0.35	%		$	13,290,651			$	24,228		0.73	%
Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits		$	5,756,277									$	5,644,017									$	3,964,493
Other liabilities		343,073										352,256										277,812
Shareholders' equity		2,969,978										2,932,590										2,833,523
Total liabilities and shareholders' equity		$	23,243,010									$	22,864,859									$	20,366,479
Net interest rate spread									2.84	%									3.11	%									3.11	%
Net interest margin (FTE)									2.94	%									3.26	%									3.31	%
FTE adjustment						$	3,500									$	3,517									$	3,323
(1) Interest income is reflected on a fully taxable equivalent basis (FTE).
(2) Includes loans held for sale.

Asset Quality (EOP) (unaudited)
($ in thousands)
	Three Months Ended
	March 31,				December 31,				March 31,
	2021				2020				2020
Beginning allowance for credit losses	$	131,388			$	131,388			$	54,619
Impact of adopting ASC 326 on 01/01/2020	—				—				41,347
Provision for credit losses	(17,356		)		(1,100		)		16,950
Gross charge-offs	(1,570		)		(707		)		(8,445		)
Gross recoveries	1,575				1,807				1,909
Net (charge-offs) recoveries	5				1,100				(6,536		)
Ending allowance for credit losses	$	114,037			$	131,388			$	106,380
Net charge-offs (recoveries) / average loans (1)	0.00			%	(0.03		)	%	0.21			%
Average loans outstanding (1)	$	13,815,515			$	13,910,145			$	12,182,704
EOP loans outstanding (1)	13,925,261				13,786,479				12,384,612
Allowance for credit losses / EOP loans (1)	0.82			%	0.95			%	0.86			%
Underperforming Assets:
Loans 90 Days and over (still accruing)	$	49			$	167			$	658
Non-performing loans:
Nonaccrual loans (2)	142,138				147,339				126,987
TDRs still accruing	15,226				17,749				17,040
Total non-performing loans	157,364				165,088				144,027
Foreclosed properties	751				1,324				2,163
Total underperforming assets	$	158,164			$	166,579			$	146,848
Classified and Criticized Assets:
Nonaccrual loans (2)	142,138				147,339				126,987
Substandard accruing loans	160,314				157,276				181,157
Loans 90 days and over (still accruing)	49				167				658
Total classified loans - "problem loans"	$	302,501			$	304,782			$	308,802
Other classified assets	3,791				3,706				2,616
Criticized loans - "special mention loans"	246,365				287,192				238,011
Total classified and criticized assets	$	552,657			$	595,680			$	549,429
Non-performing loans / EOP loans (1)	1.13			%	1.20			%	1.16			%
Allowance to non-performing loans	72			%	80			%	74			%
Under-performing assets / EOP loans (1)	1.14			%	1.21			%	1.19			%
EOP total assets	$	23,744,451			$	22,960,622			$	20,741,141
Under-performing assets / EOP assets	0.67			%	0.73			%	0.71			%
EOP - End of period actual balances
(1) Excludes loans held for sale.
(2) Includes non-accruing TDRs totaling $14.3 million at March 31, 2021, $14.9 million at December 31, 2020, and $11.8 million at March 31, 2020.

Non-GAAP Measures (unaudited)
($ in thousands)
	Three Months Ended
	March 31,			December 31,			March 31,
	2021			2020			2020
Actual End of Period Balances
GAAP shareholders' equity	$	2,979,447		$	2,972,656		$	2,823,435
Deduct:
Goodwill	1,036,994			1,036,994			1,036,994
Intangibles	42,939			46,014			56,329
	1,079,933			1,083,008			1,093,323
Tangible shareholders' equity	$	1,899,514		$	1,889,648		$	1,730,112
Average Balances
GAAP shareholders' equity	$	2,969,978		$	2,932,590		$	2,833,523
Deduct:
Goodwill	1,036,994			1,036,994			1,036,994
Intangibles	44,409			47,536			58,127
	1,081,403			1,084,530			1,095,121
Average tangible shareholders' equity	$	1,888,575		$	1,848,060		$	1,738,402
Actual End of Period Balances
GAAP assets	$	23,744,451		$	22,960,622		$	20,741,141
Add:
Trust overdrafts	24			26			119
Deduct:
Goodwill	1,036,994			1,036,994			1,036,994
Intangibles	42,939			46,014			56,329
	1,079,933			1,083,008			1,093,323
Tangible assets	$	22,664,542		$	21,877,640		$	19,647,937
Risk-weighted assets (2)	$	15,524,621		$	15,369,076		$	14,420,130
GAAP net income	$	86,818		$	74,120		$	22,640
Add:
Amortization of intangibles (net of tax)	2,306			2,433			2,849
Tangible net income	$	89,124		$	76,553		$	25,489
Tangible Ratios
Return on tangible common equity	18.77		%	16.20		%	5.89		%
Return on average tangible common equity	18.88		%	16.57		%	5.86		%
Return on tangible assets	1.57		%	1.40		%	0.52		%
Tangible common equity to tangible assets	8.38		%	8.64		%	8.81		%
Tangible common equity to risk-weighted assets (2)	12.24		%	12.30		%	12.00		%
Tangible common book value (1)	11.47			11.43			10.48
Tangible common equity presentation includes other comprehensive income as is common in other company releases.
(1) Tangible common shareholders' equity divided by common shares issued and outstanding at period-end.
Tier 1 common equity (2)	$	1,865,220		$	1,805,194		$	1,643,249
Risk-weighted assets (2)	15,524,621			15,369,076			14,420,130
Tier 1 common equity to risk-weighted assets (2)	12.01		%	11.75		%	11.40		%
(2) March 31, 2021 figures are preliminary.

Media: Kathy A. Schoettlin (812) 465-7269
Investors: Lynell J. Walton (812) 464-1366