Old National's 4th Quarter and Record Full-Year Results Supported by Strong Deposit Franchise, Stable Credit Quality and Well-Managed Expenses

EVANSVILLE, Ind., Jan. 23, 2024 (GLOBE NEWSWIRE) --

Old National Bancorp (NASDAQ: ONB) reports 4Q23 net income applicable to common shares of $128.4 million, diluted EPS of $0.44; $134.6 million and $0.46 on an adjusted1 basis, respectively. Full-year net income applicable to common shares of $565.9 million, diluted EPS of $1.94; $599.2 million and $2.05 on an adjusted1 basis, respectively.

CEO COMMENTARY:

"Old National finished 2023 with strong reported results and record performance on an adjusted basis for EPS, return on average tangible equity and efficiency ratio. Tangible book value per share grew by 17% year-over-year and, when combined with a 3.7% average dividend yield, provided shareholders with a strong return for the year," said CEO Jim Ryan. "Our peer-leading deposit franchise, disciplined loan growth, strong credit quality, well-managed expenses, and dedicated team members who are committed to our clients and communities drove these outstanding results."

"As planned, Mike Scudder will retire as Executive Chairman of Old National Bancorp at the end of January. I want to thank Mike for his 38 combined years of outstanding leadership and dedication to First Midwest and Old National. His contributions to the board were invaluable as we completed our transformational partnership."


FOURTH
QUARTER HIGHLIGHTS2:

Net Income
  • Net income applicable to common shares of $128.4 million; adjusted net income applicable to common shares1 of $134.6 million 
  • Earnings per diluted common share ("EPS") of $0.44; adjusted EPS1 of $0.46
  
Net Interest
Income/NIM

  • Net interest income on a fully taxable equivalent basis1 of $370.5 million 
  • Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.39%, down 10 basis points ("bps")
  
Operating
Performance

  • Pre-provision net revenue1 (“PPNR”) of $186.4 million; adjusted PPNR1 of $194.6 million 
  • Noninterest expense of $284.2 million; adjusted noninterest expense1 of $255.2 million 
  • Efficiency ratio1 of 59.0%; adjusted efficiency ratio1 of 53.8%
  
Deposits and
Funding

  • Period-end total deposits of $37.2 billion, consistent with September 30, 2023; core deposits up 0.4% 
  • Granular low-cost deposit franchise; total deposit costs of 185 bps and a cycle to date (2Q22-4Q23) total deposit beta of 35% (interest-bearing deposit beta of 47%)
  
Loans and
Credit
Quality

  • End-of-period total loans3 of $33.0 billion, up 1.0%   
  • Provision for credit losses4 ("provision") of $11.6 million
  • Net charge-offs of $9.7 million, or 12 bps of average loans; 3 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
  • 30+ day delinquencies of 0.22% and non-performing loans of 0.83% of total loans
  
Return
Profile &
Capital
  • Return on average tangible common equity1 of 18.1%; adjusted return on average tangible common equity1 of 19.0%
  
Notable
Items
  • $21.6 million pre-tax gain on sale of Visa Class B restricted shares
  • $19.1 million pre-tax FDIC special assessment
  • $9.9 million of pre-tax merger-related and other charges

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 Comparisons are on a linked-quarter basis, unless otherwise noted Includes loans held-for-sale
4 Includes the provision for unfunded commitments

RESULTS OF OPERATIONS
Old National reported fourth quarter 2023 net income applicable to common shares of $128.4 million, or $0.44 per diluted common share.

Included in fourth quarter results was a $21.6 million pre-tax gain on sale of Visa Class B restricted shares, as well as pre-tax charges of $19.1 million for the FDIC special assessment and $9.9 million of merger-related and other expenses. Excluding these transactions and realized debt securities losses from the current quarter, adjusted net income1 was $134.6 million, or $0.46 per diluted common share.

DEPOSITS AND FUNDING
Stable low-cost deposits including normal seasonal patterns in public funds.

  • Period-end total deposits were $37.2 billion at December 31, 2023, consistent with prior quarter; core deposits increased 0.4%; include normal seasonal patterns in public funds which decreased ~$340 million.
  • On average, total deposits for the fourth quarter were $37.2 billion, an increase of 1.4%.
  • Granular low-cost deposit franchise; total deposit costs of 185 bps and a cycle to date total deposit beta of 35% (interest-bearing deposit beta of 47%).
  • A loan to deposit ratio of 89% at December 31, 2023, combined with existing funding sources, provides strong liquidity.

LOANS
Broad-based disciplined commercial loan growth.

  • Period-end total loans3 were $33.0 billion at December 31, 2023, up 1.0% from September 30, 2023.
  • Total commercial loan production in the fourth quarter was $1.3 billion; period-end commercial pipeline totaled $1.7 billion.
  • Average total loans in the fourth quarter were $32.8 billion, an increase of $116.9 million from the third quarter of 2023.

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

  • Provision4 expense in the fourth quarter of 2023 was $11.6 million, compared to $19.1 million in the third quarter of 2023, reflecting net charge-offs, loan growth, as well as economic factors.
  • Net charge-offs in the fourth quarter were $9.7 million, or 12 bps of average loans compared to net charge-offs of 24 bps of average loans in the third quarter of 2023.
    • Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 3 bps for the fourth quarter of 2023.
  • 30+ day delinquencies as a percentage of loans were 0.22% at December 31, 2023, compared to 0.18% at September 30, 2023.
  • Non-performing loans as a percentage of total loans were 0.83% compared to 0.80% for the third quarter of 2023.
  • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of December 31, 2023, the remaining discount on these acquired loans was $79.0 million.
  • The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $338.8 million, or 1.03% of total loans at December 31, 2023, compared to $336.9 million, or 1.03% of total loans at September 30, 2023.

NET INTEREST INCOME AND MARGIN
Lower net interest income and margin compression reflective of the rate environment.

  • Net interest income on a fully taxable equivalent basis1 decreased to $370.5 million in the fourth quarter of 2023 compared to $380.9 million in the third quarter of 2023, driven by higher funding costs, partly offset by loan growth and higher rates on interest-earning assets.
  • Net interest margin on a fully taxable equivalent basis1 decreased 10 bps to 3.39% compared to the third quarter of 2023.
  • Accretion income on loans and borrowings was $6.2 million, or 6 bps of net interest margin1, in the fourth quarter of 2023 compared to $7.5 million, or 7 bps of net interest margin1, in the third quarter of 2023.
  • Cost of total deposits was 1.85%, increasing 24 bps and the cost of total interest-bearing deposits increased 31 bps to 2.53% in the fourth quarter of 2023.

NONINTEREST INCOME
Increased wealth fees offset by lower mortgage fees, capital markets income, and other income.

  • Total noninterest income for the fourth quarter of 2023 was $100.1 million and included a $21.6 million pre-tax gain on the sale of VISA B restricted shares.
  • Excluding realized debt securities gains/losses for both periods and gain on sale of Visa Class B restricted shares for the fourth quarter of 2023, adjusted noninterest income for the fourth quarter was down 2.3% compared to the third quarter of 2023, due to lower mortgage fees, capital markets income, and other income, partially offset by an increase in wealth fees.

NONINTEREST EXPENSE
Disciplined expense management.

  • Noninterest expense for the fourth quarter of 2023 was $284.2 million and included $19.1 million of FDIC special assessment charges and $9.9 million of merger-related and other charges.
  • Excluding these items, adjusted noninterest expense for the fourth quarter was $255.2 million, compared to $238.5 million for the third quarter of 2023; increase was driven by $10 million in higher performance-driven incentive accruals and $5 million in higher amortization of tax credit investments.
  • The efficiency ratio1 was 59.0%, while the adjusted efficiency ratio1 was 53.8% for the fourth quarter of 2023 compared to 51.7% and 49.7%, respectively, for the third quarter of 2023.

INCOME TAXES

  • Income tax expense in the fourth quarter of 2023 was $36.2 million, resulting in an effective tax rate of 21.5% compared to 23.1% in the third quarter of 2023. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 24.2% in the fourth quarter compared to 25.3% in the third quarter.
  • Income tax expense included $6.7 million of tax credit benefit.

CAPITAL
Capital ratios remain strong.

  • All regulatory capital ratios grew in the quarter with preliminary total risk-based capital up 32 bps to 12.64% and preliminary regulatory Tier 1 capital up 29 bps to 11.35%, driven by retained earnings.
  • Tangible common equity to tangible assets was 6.85% at the end of the fourth quarter compared to 6.15% in the third quarter of 2023.

VISA CLASS B RESTRICTED SHARES GAIN
During the fourth quarter of 2023, the Company recognized a $21.6 million pre-tax gain on sale of Visa Class B restricted shares in noninterest income. Prior to the sale, the shares were carried at zero cost basis due to uncertainty surrounding the ability of the Company to transfer or otherwise liquidate the shares. At December 31, 2023, the Company does not hold any remaining Visa Class B restricted shares.

FDIC SPECIAL ASSESSMENT
On November 16, 2023, the FDIC finalized a rule that imposes special assessments to recover the losses to the Deposit Insurance Fund (“DIF”) resulting from the FDIC’s use, in March 2023, of the systemic risk exception to the least-cost resolution test under the Federal Deposit Insurance Act in connection with the receiverships of Silicon Valley Bank and Signature Bank. The total of the assessments for Old National Bank is estimated at $19.1 million, and such amount was recorded as an expense in the quarter ending December 31, 2023.

RETIREMENT OF MIKE SCUDDER
Mike Scudder will retire as Executive Chairman and as a director of the Company as of January 31, 2024, and Jim Ryan will succeed to the position of Chairman of the Board of Directors, as contemplated by the Bylaws of the Company. Mr. Ryan will continue to serve as Chief Executive Officer of the Company as well as Chairman of the Board and Chief Executive Officer of Old National Bank.

CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, January 23, 2024, to review fourth 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. (888) 300-3045 or International (646) 568-1027, access code 5258325. A replay of the call will also be available from approximately noon Central Time on January 23, 2024 through February 6, 2024. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199, Access code 5258325.

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 $49 billion of assets and $29 billion of assets under management, Old National ranks among the top 30 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, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include gain on sale of Visa Class B restricted shares, FDIC special assessment expense, contract termination charges, merger-related charges associated with completed and pending acquisitions, gains/losses on sales of debt securities, expenses related to the tragic April 10 event at our downtown Louisville location ("Louisville expenses"), property optimization charges, gain on sale of health savings accounts and the current expected credit loss ("CECL") Day 1 non-PCD provision expense. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges 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.

The Company presents adjusted noninterest expense, which excludes FDIC special assessment expense, contract termination charges, merger-related charges, property optimization charges, Louisville expenses, as well as adjusted noninterest income, which excludes the gain on sale of Visa Class B restricted shares, 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 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the SEC, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of the words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "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, including, but not limited to: competition; government legislation, regulations and policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the ability to complete, or any delays in completing, the pending merger (the “Merger”) between Old National and CapStar Financial Holdings, Inc. (“CapStar”), including the ability of CapStar to obtain the necessary approval by its shareholders, the ability of Old National and CapStar to obtain required governmental approvals of the Merger and the ability to satisfy all of the closing conditions in the definitive merger agreement; the expected cost savings, synergies and other financial benefits from the Merger not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses and the success of revenue-generating and cost reduction initiatives; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; political and economic uncertainty and instability; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 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, performance or outcomes, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

CONTACTS:  
Media: Kathy Schoettlin Investors: Lynell Durchholz
(812) 465-7269 (812) 464-1366
Kathy.Schoettlin@oldnational.com Lynell.Durchholz@oldnational.com



        
Financial Highlights (unaudited)
($ and shares in thousands, except per share data)
 Three Months Ended Twelve Months Ended
 December 31,September 30,June 30,March 31,December 31, December 31,December 31,
  2023  2023  2023  2023  2022   2023  2022 
Income Statement        
Net interest income$364,408 $375,086 $382,171 $381,488 $391,090  $1,503,153 $1,327,936 
FTE adjustment1,2 6,100  5,837  5,825  5,666  5,378   23,428  18,414 
Net interest income - tax equivalent basis3 370,508  380,923  387,996  387,154  396,468   1,526,581  1,346,350 
Provision for credit losses 11,595  19,068  14,787  13,437  11,408   58,887  144,799 
Noninterest income 100,094  80,938  81,629  70,681  165,037   333,342  399,779 
Noninterest expense3 284,235  244,776  246,584  250,711  282,675   1,026,306  1,038,183 
Net income available to common shareholders$128,446 $143,842 $151,003 $142,566 $196,701  $565,857 $414,169 
Per Common Share Data        
Weighted average diluted shares 292,029  291,717  291,266  292,756  293,131   291,855  276,688 
EPS, diluted$0.44 $0.49 $0.52 $0.49 $0.67  $1.94 $1.50 
Cash dividends 0.14  0.14  0.14  0.14  0.14   0.56  0.56 
Dividend payout ratio2 32% 29% 27% 29% 21%  29% 37%
Book value$18.18 $17.07 $17.25 $17.24 $16.68  $18.18 $16.68 
Stock price 16.89  14.54  13.94  14.42  17.98   16.89  17.98 
Tangible book value3 11.00  9.87  10.03  9.98  9.42   11.00  9.42 
Performance Ratios        
ROAA 1.09% 1.22% 1.29% 1.25% 1.74%  1.21% 0.99%
ROAE 10.2% 11.4% 12.0% 11.6% 16.8%  11.3% 8.9%
ROATCE3 18.1% 20.2% 21.4% 21.0% 31.5%  20.2% 16.3%
NIM (FTE) 3.39% 3.49% 3.60% 3.69% 3.85%  3.54% 3.47%
Efficiency ratio3 59.0% 51.7% 51.2% 52.8% 49.1%  53.7% 58.0%
NCOs to average loans 0.12% 0.24% 0.13% 0.21% 0.05%  0.17% 0.06%
ACL on loans to EOP loans 0.93% 0.93% 0.93% 0.94% 0.98%  0.93% 0.98%
ACL5 to EOP loans 1.03% 1.03% 1.04% 1.05% 1.08%  1.03% 1.08%
NPLs to EOP loans 0.83% 0.80% 0.91% 0.74% 0.81%  0.83% 0.81%
Balance Sheet (EOP)        
Total loans$32,991,927 $32,577,834 $32,432,473 $31,822,374 $31,123,641  $32,991,927 $31,123,641 
Total assets 49,089,836  49,059,448  48,496,755  47,842,644  46,763,372   49,089,836  46,763,372 
Total deposits 37,235,180  37,252,676  36,231,315  34,917,792  35,000,830   37,235,180  35,000,830 
Total borrowed funds 5,331,147  5,556,010  6,034,008  6,740,454  5,586,314   5,331,147  5,586,314 
Total shareholders' equity 5,562,900  5,239,537  5,292,095  5,277,426  5,128,595   5,562,900  5,128,595 
Capital Ratios        
Risk-based capital ratios (EOP):        
Tier 1 common equity 10.70% 10.41% 10.14% 9.98% 10.03%  10.70% 10.03%
Tier 1 capital 11.35% 11.06% 10.79% 10.64% 10.71%  11.35% 10.71%
Total capital 12.64% 12.32% 12.14% 11.96% 12.02%  12.64% 12.02%
Leverage ratio (average assets) 8.83% 8.70% 8.59% 8.53% 8.52%  8.83% 8.52%
Equity to assets (averages)4 10.81% 10.88% 10.96% 11.00% 10.70%  10.91% 11.23%
TCE to TA3 6.85% 6.15% 6.33% 6.37% 6.18%  6.85% 6.18%
Nonfinancial Data        
Full-time equivalent employees 3,940  3,981  4,021  4,023  3,967   3,940  3,967 
Banking centers 258  257  256  256  263   258  263 
1 Calculated using the federal statutory tax rate in effect of 21% for all periods.
2 Cash dividends per common share divided by net income per common share (basic).
3 Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
    December 31, 2023 capital ratios are preliminary.
4 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



         
Income Statement (unaudited)
($ and shares in thousands, except per share data)
 Three Months Ended Twelve Months Ended
 December 31,September 30,June 30,March 31,December 31, December 31,December 31,
  2023  2023  2023  2023  2022   2023  2022 
Interest income$589,751 $576,519 $544,902 $495,649 $457,821  $2,206,821 $1,454,202 
Less: interest expense 225,343  201,433  162,731  114,161  66,731   703,668  126,266 
Net interest income 364,408  375,086  382,171  381,488  391,090   1,503,153  1,327,936 
Provision for credit losses 11,595  19,068  14,787  13,437  11,408   58,887  144,799 
Net interest income
after provision for credit losses
 352,813  356,018  367,384  368,051  379,682   1,444,266  1,183,137 
Wealth and investment services fees 27,656  26,687  26,521  26,920  25,668   107,784  100,851 
Service charges on deposit accounts 18,667  18,524  17,751  17,003  18,109   71,945  72,501 
Debit card and ATM fees 10,700  10,818  10,653  9,982  10,798   42,153  40,227 
Mortgage banking revenue 3,691  5,063  4,165  3,400  3,888   16,319  23,015 
Capital markets income 5,416  5,891  6,173  6,939  5,377   24,419  25,986 
Company-owned life insurance 3,773  3,740  4,698  3,186  3,108   15,397  14,564 
Gain on sale of Visa Class B restricted shares 21,635           21,635   
Gain on sale of health savings accounts         90,673     90,673 
Other income 9,381  10,456  11,651  8,467  7,589   39,955  32,050 
Gains (losses) on sales of debt securities (825) (241) 17  (5,216) (173)  (6,265) (88)
Total noninterest income 100,094  80,938  81,629  70,681  165,037   333,342  399,779 
Salaries and employee benefits 141,649  131,541  135,810  137,364  142,459   546,364  575,626 
Occupancy 26,514  25,795  26,085  28,282  26,488   106,676  100,421 
Equipment 8,769  8,284  7,721  7,389  7,591   32,163  27,637 
Marketing 10,813  9,448  9,833  9,417  8,508   39,511  32,264 
Technology 20,493  20,592  20,056  19,202  19,951   80,343  84,865 
Communication 4,212  4,075  4,232  4,461  4,159   16,980  18,846 
Professional fees 8,250  5,956  6,397  6,732  6,360   27,335  39,046 
FDIC assessment 27,702  9,000  9,624  10,404  5,809   56,730  19,332 
Amortization of intangibles 5,869  6,040  6,060  6,186  6,787   24,155  25,857 
Amortization of tax credit investments 7,200  2,644  2,762  2,761  5,258   15,367  10,961 
Property optimization     242  1,317  26,818   1,559  26,818 
Other expense 22,764  21,401  17,762  17,196  22,487   79,123  76,510 
Total noninterest expense 284,235  244,776  246,584  250,711  282,675   1,026,306  1,038,183 
Income before income taxes 168,672  192,180  202,429  188,021  262,044   751,302  544,733 
Income tax expense 36,192  44,304  47,393  41,421  61,309   169,310  116,446 
Net income$132,480 $147,876 $155,036 $146,600 $200,735  $581,992 $428,287 
Preferred dividends (4,034) (4,034) (4,033) (4,034) (4,034)  (16,135) (14,118)
Net income applicable to common shares$128,446 $143,842 $151,003 $142,566 $196,701  $565,857 $414,169 
         
EPS, diluted$0.44 $0.49 $0.52 $0.49 $0.67  $1.94 $1.50 
Weighted Average Common Shares Outstanding        
Basic 290,701  290,648  290,559  291,088  291,012   290,748  275,179 
Diluted 292,029  291,717  291,266  292,756  293,131   291,855  276,688 
Common shares outstanding (EOP) 292,655  292,586  292,597  291,922  292,903   292,655  292,903 
         



 
End of Period Balance Sheet (unaudited)
($ in thousands)
 December 31,September 30,June 30,March 31,December 31,
  2023  2023  2023  2023  2022 
Assets     
Cash and due from banks$430,866 $381,343 $473,023 $386,879 $453,432 
Money market and other interest-earnings investments 744,192  1,282,087  724,863  727,056  274,980 
Investments:     
Treasury and government-sponsored agencies 2,453,949  2,515,249  2,309,285  2,236,412  2,195,175 
Mortgage-backed securities 5,245,691  4,906,290  5,168,458  5,395,680  5,476,719 
States and political subdivisions 1,693,819  1,705,200  1,760,725  1,785,073  1,827,164 
Other securities 779,049  751,404  802,323  826,575  730,476 
Total investments 10,172,508  9,878,143  10,040,791  10,243,740  10,229,534 
Loans held-for-sale, at fair value 32,006  122,033  114,369  10,584  11,926 
Loans:     
Commercial 9,512,230  9,333,448  9,698,241  9,751,875  9,508,904 
Commercial and agriculture real estate 14,140,629  13,916,221  13,450,209  12,908,380  12,457,070 
Residential real estate 6,699,443  6,696,288  6,684,480  6,568,666  6,460,441 
Consumer 2,639,625  2,631,877  2,599,543  2,593,453  2,697,226 
Total loans 32,991,927  32,577,834  32,432,473  31,822,374  31,123,641 
Allowance for credit losses on loans (307,610) (303,982) (300,555) (298,711) (303,671)
Premises and equipment, net 565,396  565,607  564,299  566,758  557,307 
Goodwill and other intangible assets 2,100,966  2,106,835  2,112,875  2,118,935  2,125,121 
Company-owned life insurance 767,902  774,517  771,753  770,471  768,552 
Accrued interest receivable and other assets 1,591,683  1,675,031  1,562,864  1,494,558  1,522,550 
   Total assets$49,089,836 $49,059,448 $48,496,755 $47,842,644 $46,763,372 
      
Liabilities and Equity     
Noninterest-bearing demand deposits$9,664,247 $10,091,352 $10,532,838 $10,995,083 $11,930,798 
Interest-bearing:     
Checking and NOW accounts 7,331,487  7,495,417  7,654,202  7,903,520  8,340,955 
Savings accounts 5,099,186  5,296,985  5,578,323  6,030,255  6,326,158 
Money market accounts 9,561,116  8,793,218  7,200,288  5,867,239  5,389,139 
Other time deposits 4,565,137  4,398,182  4,012,813  3,361,979  2,775,991 
Total core deposits 36,221,173  36,075,154  34,978,464  34,158,076  34,763,041 
Brokered deposits 1,014,007  1,177,522  1,252,851  759,716  237,789 
Total deposits 37,235,180  37,252,676  36,231,315  34,917,792  35,000,830 
      
Federal funds purchased and interbank borrowings 390  918  136,060  618,955  581,489 
Securities sold under agreements to repurchase 285,206  279,061  311,447  393,018  432,804 
Federal Home Loan Bank advances 4,280,681  4,412,576  4,771,183  4,981,612  3,829,018 
Other borrowings 764,870  863,455  815,318  746,869  743,003 
Total borrowed funds 5,331,147  5,556,010  6,034,008  6,740,454  5,586,314 
Accrued expenses and other liabilities 960,609  1,011,225  939,337  906,972  1,047,633 
Total liabilities 43,526,936  43,819,911  43,204,660  42,565,218  41,634,777 
Preferred stock, common stock, surplus, and retained earnings 6,301,709  6,208,352  6,100,728  5,985,784  5,915,017 
Accumulated other comprehensive income (loss), net of tax (738,809) (968,815) (808,633) (708,358) (786,422)
Total shareholders' equity 5,562,900  5,239,537  5,292,095  5,277,426  5,128,595 
Total liabilities and shareholders' equity$49,089,836 $49,059,448 $48,496,755 $47,842,644 $46,763,372 
 



             
Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
  Three Months Ended Three Months Ended Three Months Ended
  December 31, 2023 September 30, 2023 December 31, 2022
  AverageIncome1/Yield/ AverageIncome1/Yield/ AverageIncome1/Yield/
Earning Assets: BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate
Money market and other interest-earning investments $1,094,196 $14,425 5.23% $980,813 $13,194 5.34% $324,801 $(259)(0.32)%
Investments:            
Treasury and government-sponsored agencies  2,490,793  25,848 4.15%  2,376,864  23,037 3.88%  2,151,746  14,683 2.73%
Mortgage-backed securities  4,913,151  34,209 2.79%  5,079,091  33,237 2.62%  5,470,753  35,344 2.58%
States and political subdivisions  1,686,119  14,541 3.45%  1,737,037  14,220 3.27%  1,818,431  14,849 3.27%
Other securities  749,697  10,440 5.57%  793,196  10,127 5.11%  702,730  7,741 4.41%
Total investments  9,839,760  85,038 3.46%  9,986,188  80,621 3.23%  10,143,660  72,617 2.86%
Loans:2            
Commercial  9,351,344  163,921 7.01%  9,612,102  163,869 6.82%  9,330,906  132,711 5.69%
Commercial and agriculture real estate  14,074,908  226,716 6.44%  13,711,156  219,575 6.41%  12,317,057  161,766 5.25%
Residential real estate loans  6,706,425  62,054 3.70%  6,712,269  62,775 3.74%  6,373,819  59,532 3.74%
Consumer  2,634,650  43,697 6.58%  2,614,928  42,322 6.42%  2,716,452  36,832 5.38%
Total loans  32,767,327  496,388 6.06%  32,650,455  488,541 5.98%  30,738,234  390,841 5.08%
             
Total earning assets $43,701,283 $595,851 5.45% $43,617,456 $582,356 5.34% $41,206,695 $463,199 4.49%
             
Less: Allowance for credit losses on loans  (304,195)    (300,071)    (303,009)  
             
Non-earning Assets:            
Cash and due from banks $415,266    $382,755    $368,874   
Other assets  5,027,892     4,960,383     4,861,247   
             
   Total assets $48,840,246    $48,660,523    $46,133,807   
             
Interest-Bearing Liabilities:            
Checking and NOW accounts $7,280,268 $25,015 1.36% $7,515,439 $25,531 1.35% $8,482,651 $13,189 0.62%
Savings accounts  5,184,712  5,196 0.40%  5,414,775  4,268 0.31%  6,482,369  1,558 0.10%
Money market accounts  9,244,117  85,717 3.68%  7,979,999  65,549 3.26%  5,382,254  8,091 0.60%
Other time deposits  4,516,432  44,396 3.90%  4,229,692  37,110 3.48%  2,540,619  5,688 0.89%
Total interest-bearing core deposits  26,225,529  160,324 2.43%  25,139,905  132,458 2.09%  22,887,893  28,526 0.49%
Brokered deposits  1,012,647  13,041 5.11%  1,183,228  14,970 5.02%  129,745  1,366 4.18%
Total interest-bearing deposits  27,238,176  173,365 2.53%  26,323,133  147,428 2.22%  23,017,638  29,892 0.52%
             
Federal funds purchased and interbank borrowings  620  8 5.12%  62,921  910 5.74%  475,431  4,299 3.59%
Securities sold under agreements to repurchase  277,927  910 1.30%  302,305  710 0.93%  409,916  556 0.54%
Federal Home Loan Bank advances  4,182,877  38,394 3.64%  4,537,250  40,382 3.53%  3,266,896  25,609 3.11%
Other borrowings  869,644  12,666 5.78%  841,307  12,003 5.66%  753,401  6,375 3.36%
Total borrowed funds  5,331,068  51,978 3.87%  5,743,783  54,005 3.73%  4,905,644  36,839 2.98%
             
Total interest-bearing liabilities $32,569,244 $225,343 2.74% $32,066,916 $201,433 2.49% $27,923,282 $66,731 0.95%
             
Noninterest-Bearing Liabilities and Shareholders' Equity           
Demand deposits $9,949,616    $10,338,267    $12,373,495   
Other liabilities  1,039,899     961,268     900,448   
Shareholders' equity  5,281,487     5,294,072     4,936,582   
             
Total liabilities and shareholders' equity $48,840,246    $48,660,523    $46,133,807   
             
Net interest rate spread   2.71%   2.85%   3.54%
             
Net interest margin (GAAP)   3.34%   3.44%   3.80%
             
Net interest margin (FTE)3   3.39%   3.49%   3.85%
             
FTE adjustment  $6,100    $5,837    $5,378  
             
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. 
 



         
Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
  Twelve Months Ended Twelve Months Ended
  December 31, 2023 December 31, 2022
  AverageIncome1/Yield/ AverageIncome1/Yield/
Earning Assets: BalanceExpenseRate BalanceExpenseRate
Money market and other interest-earning investments $826,453 $39,683 4.80% $812,296 $2,814 0.35%
Investments:        
Treasury and government-sponsored agencies  2,322,792  84,771 3.65%  2,290,229  47,932 2.09%
Mortgage-backed securities  5,178,940  136,827 2.64%  5,562,442  129,411 2.33%
States and political subdivisions  1,749,722  57,847 3.31%  1,805,433  57,688 3.20%
Other securities  776,456  39,166 5.04%  687,926  24,133 3.51%
Total investments $10,027,910 $318,611 3.18% $10,346,030 $259,164 2.50%
Loans:2        
Commercial  9,570,639  639,131 6.68%  8,252,237  397,228 4.81%
Commercial and agriculture real estate  13,405,946  825,053 6.15%  11,147,967  489,499 4.39%
Residential real estate loans  6,646,684  243,646 3.67%  5,622,901  201,637 3.59%
Consumer  2,618,098  164,125 6.27%  2,570,355  122,274 4.76%
Total loans  32,241,367  1,871,955 5.81%  27,593,460  1,210,638 4.39%
         
Total earning assets $43,095,730 $2,230,249 5.18% $38,751,786 $1,472,616 3.80%
         
Less: Allowance for credit losses on loans  (302,486)    (261,534)  
         
Non-earning Assets:        
Cash and due from banks $413,569    $355,391   
Other assets  4,945,394     4,404,057   
         
Total assets $48,152,207    $43,249,700   
         
Interest-Bearing Liabilities:        
Checking and NOW accounts $7,664,183 $94,263 1.23% $8,104,844 $21,321 0.26%
Savings accounts  5,638,766  14,941 0.26%  6,342,697  3,367 0.05%
Money market accounts  7,249,497  206,634 2.85%  4,961,159  11,882 0.24%
Other time deposits  3,875,984  123,428 3.18%  2,312,935  10,801 0.47%
Total interest-bearing core deposits  24,428,430  439,266 1.80%  21,721,635  47,371 0.22%
Brokered deposits  913,349  45,094 4.94%  45,796  1,722 3.76%
Total interest-bearing deposits  25,341,779  484,360 1.91%  21,767,431  49,093 0.23%
         
Federal funds purchased and interbank borrowings  229,386  11,412 4.98%  151,243  5,021 3.32%
Securities sold under agreements to repurchase  332,853  3,299 0.99%  440,619  843 0.19%
Federal Home Loan Bank advances  4,568,964  161,860 3.54%  2,986,006  51,524 1.73%
Other borrowings  822,471  42,737 5.20%  619,659  19,785 3.19%
Total borrowed funds  5,953,674  219,308 3.68%  4,197,527  77,173 1.84%
         
Total interest-bearing liabilities  31,295,453  703,668 2.25%  25,964,958  126,266 0.49%
         
Noninterest-Bearing Liabilities and Shareholders' Equity       
Demand deposits $10,633,806    $11,750,306   
Other liabilities  968,635     676,940   
Shareholders' equity  5,254,313     4,857,496   
         
Total liabilities and shareholders' equity $48,152,207    $43,249,700   
         
Net interest rate spread   2.93%   3.31%
         
Net interest margin (GAAP)   3.49%   3.43%
         
Net interest margin (FTE)3   3.54%   3.47%
         
FTE adjustment  $23,428    $18,414  
         
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.  
 



         
Asset Quality (EOP) (unaudited)
($ in thousands)
 Three Months Ended Twelve Months Ended
 December 31,September 30,June 30,March 31,December 31, December 31,December 31,
  2023  2023  2023  2023  2022   2023  2022 
Allowance for credit losses:        
Beginning allowance for credit losses on loans$303,982 $300,555 $298,711 $303,671 $302,254  $303,671 $107,341 
Allowance established for acquired PCD loans              89,089 
Provision for credit losses on loans 13,329  23,115  11,936  11,469  5,389   59,849  123,340 
Gross charge-offs (13,202) (22,750) (14,331) (18,180) (7,081)  (68,463) (27,281)
Gross recoveries 3,501  3,062  4,239  1,751  3,109   12,553  11,182 
NCOs (9,701) (19,688) (10,092) (16,429) (3,972)  (55,910) (16,099)
Ending allowance for credit losses on loans$307,610 $303,982 $300,555 $298,711 $303,671  $307,610 $303,671 
Beginning allowance for credit losses on unfunded commitments$32,960 $37,007 $34,156 $32,188 $26,169  $32,188 $10,879 
Provision (release) for credit losses on unfunded commitments (1,734) (4,047) 2,851  1,968  6,019   (962) 21,309 
Ending allowance for credit losses on unfunded commitments$31,226 $32,960 $37,007 $34,156 $32,188  $31,226 $32,188 
Allowance for credit losses$338,836 $336,942 $337,562 $332,867 $335,859  $338,836 $335,859 
Provision for credit losses on loans$13,329 $23,115 $11,936 $11,469 $5,389  $59,849 $123,340 
Provision (release) for credit losses on unfunded commitments1 (1,734) (4,047) 2,851  1,968  6,019   (962) 21,309 
Provision for credit losses1$11,595 $19,068 $14,787 $13,437 $11,408  $58,887 $144,649 
NCOs / average loans2 0.12% 0.24% 0.13% 0.21% 0.05%  0.17% 0.06%
Average loans2$32,752,406 $32,639,812 $32,251,242 $31,267,836 $30,732,473  $32,233,020 $27,582,530 
EOP loans2 32,991,927  32,577,834  32,432,473  31,822,374  31,123,641   32,991,927  31,123,641 
ACL on loans / EOP loans2 0.93% 0.93% 0.93% 0.94% 0.98%  0.93% 0.98%
ACL / EOP loans2 1.03% 1.03% 1.04% 1.05% 1.08%  1.03% 1.08%
Underperforming Assets:        
Loans 90 days and over (still accruing)$961 $1,192 $303 $1,231 $2,650  $961 $2,650 
NPLs:        
Nonaccrual loans3,4 274,821  261,346  295,509  234,337  238,178   274,821  238,178 
TDRs still accruing4N/AN/AN/AN/A 15,313  N/A 15,313 
Total NPLs 274,821  261,346  295,509  234,337  253,491   274,821  253,491 
Foreclosed assets 9,434  9,761  9,824  10,817  10,845   9,434  10,845 
Total underperforming assets$285,216 $272,299 $305,636 $246,385 $266,986  $285,216 $266,986 
Classified and Criticized Assets:        
Nonaccrual loans3$274,821 $261,346 $295,509 $234,337 $238,178  $274,821 $238,178 
Substandard loans (still accruing) 599,358  563,427  524,709  570,229  504,657   599,358  504,657 
Loans 90 days and over (still accruing) 961  1,192  303  1,231  2,650   961  2,650 
Total classified loans - "problem loans" 875,140  825,965  820,521  805,797  745,485   875,140  745,485 
Other classified assets 48,930  48,998  40,942  26,441  24,735   48,930  24,735 
Criticized loans - "special mention loans" 843,920  775,526  614,547  593,307  636,069   843,920  636,069 
Total classified and criticized assets$1,767,990 $1,650,489 $1,476,010 $1,425,545 $1,406,289  $1,767,990 $1,406,289 
Loans 30-89 days past due$71,868 $56,772 $39,748 $42,071 $55,522  $71,868 $55,522 
NPLs / EOP loans2 0.83% 0.80% 0.91% 0.74% 0.81%  0.83% 0.81%
ACL to NPLs 123% 129% 114% 142% 132%  123% 132%
Under-performing assets/EOP loans2 0.86% 0.84% 0.94% 0.77% 0.86%  0.86% 0.86%
Under-performing assets/EOP assets 0.58% 0.56% 0.63% 0.51% 0.57%  0.58% 0.57%
30+ day delinquencies/EOP loans2 0.22% 0.18% 0.12% 0.14% 0.19%  0.22% 0.19%
1 Excludes $0.2 million of expense to establish an allowance on held-to-maturity securities during the first quarter of 2022.
2 Excludes loans held-for-sale.
3 Includes non-accruing TDRs totaling $24.0 million at December 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
         

                


         
Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)
 Three Months Ended Twelve Months Ended
 December 31,September 30,June 30,March 31,December 31, December 31,December 31,
  2023  2023  2023  2023  2022   2023  2022 
Earnings Per Share:        
Net income applicable to common shares$128,446 $143,842 $151,003 $142,566 $196,701  $565,857 $414,169 
Adjustments:        
Gain on sale of Visa Class B restricted shares (21,635)          (21,635)  
Tax effect1 5,255           5,255   
Gain on sale of Visa Class B restricted shares, net (16,380)          (16,380)  
FDIC special assessment 19,052           19,052   
Tax effect1 (4,628)          (4,628)  
FDIC special assessment, net 14,424           14,424   
Merger-related charges2 5,529  6,257  2,372  14,558  20,314   28,716  131,941 
Tax effect1 (1,343) (1,042) (277) (3,172) (5,160)  (5,834) (36,280)
Merger-related charges, net 4,186  5,215  2,095  11,386  15,154   22,882  95,661 
Contract termination charge 4,413           4,413   
Tax effect1 (1,072)          (1,072)  
Contract termination charge, net 3,341           3,341   
Debt Securities (gains) losses 825  241  (17) 5,216  173   6,265  88 
Tax effect1 (200) (40) 2  (1,137) (44)  (1,375) (76)
Debt securities (gains) losses, net 625  201  (15) 4,079  129   4,890  12 
Louisville expenses     3,361       3,361   
Tax effect1     (392)      (392)  
Louisville expenses, net     2,969       2,969   
Property optimization charges     242  1,317  26,818   1,559  26,818 
Tax effect1     (28) (287) (6,812)  (315) (6,812)
Property optimization charges, net     214  1,030  20,006   1,244  20,006 
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)
Day 1 non-PCD              96,270 
Tax effect1              (17,550)
Day 1 non-PCD, net              78,720 
Total adjustments, net 6,196  5,416  5,263  16,495  (32,353)  33,370  126,757 
Net income applicable to common shares, adjusted$134,642 $149,258 $156,266 $159,061 $164,348  $599,227 $540,926 
Weighted average diluted common shares outstanding 292,029  291,717  291,266  292,756  293,131   291,855  276,688 
EPS, diluted$0.44 $0.49 $0.52 $0.49 $0.67  $1.94 $1.50 
Adjusted EPS, diluted$0.46 $0.51 $0.54 $0.54 $0.56  $2.05 $1.96 
NIM:        
Net interest income$364,408 $375,086 $382,171 $381,488 $391,090  $1,503,153 $1,327,936 
Add: FTE adjustment3 6,100  5,837  5,825  5,666  5,378   23,428  18,414 
Net interest income (FTE)$370,508 $380,923 $387,996 $387,154 $396,468  $1,526,581 $1,346,350 
Average earning assets$43,701,283 $43,617,456 $43,097,198 $41,941,913 $41,206,695  $43,095,730 $38,751,786 
NIM (GAAP) 3.34% 3.44% 3.55% 3.64% 3.80%  3.49% 3.43%
NIM (FTE) 3.39% 3.49% 3.60% 3.69% 3.85%  3.54% 3.47%
         
Refer to last page of Non-GAAP reconciliations for footnotes.      



         
Non-GAAP Measures (unaudited)
($ in thousands)
 Three Months Ended Twelve Months Ended
 December 31,September 30,June 30,March 31,December 31, December 31,December 31,
  2023  2023  2023  2023  2022   2023  2022 
PPNR:        
Net interest income (FTE)3$370,508 $380,923 $387,996 $387,154 $396,468  $1,526,581 $1,346,350 
Add: Noninterest income 100,094  80,938  81,629  70,681  165,037   333,342  399,779 
Total revenue (FTE) 470,602  461,861  469,625  457,835  561,505   1,859,923  1,746,129 
Less: Noninterest expense (284,235) (244,776) (246,584) (250,711) (282,675)  (1,026,306) (1,038,183)
PPNR$186,367 $217,085 $223,041 $207,124 $278,830  $833,617 $707,946 
Adjustments:        
Gain on sale of Visa Class B restricted shares$(21,635)$ $ $ $  $(21,635)$ 
Debt securities (gains) losses 825  241  (17) 5,216  173   6,265  88 
Gain on sale of health savings accounts         (90,673)    (90,673)
Noninterest income adjustments (20,810) 241  (17) 5,216  (90,500)  (15,370) (90,585)
Adjusted noninterest income 79,284  81,179  81,612  75,897  74,537   317,972  309,194 
   Adjusted revenue$449,792 $462,102 $469,608 $463,051 $471,005  $1,844,553 $1,655,544 
Adjustments:        
FDIC Special Assessment$19,052 $ $ $ $  $19,052 $ 
Merger-related charges4 5,529  6,257  2,372  14,558  20,314   28,716  120,928 
Contract termination charges 4,413           4,413   
Louisville expenses     3,361       3,361   
Property optimization charges     242  1,317  26,818   1,559  26,818 
Noninterest expense adjustments 28,994  6,257  5,975  15,875  47,132   57,101  147,746 
Adjusted total noninterest expense (255,241) (238,519) (240,609) (234,836) (235,543)  (969,205) (890,437)
      Adjusted PPNR$194,551 $223,583 $228,999 $228,215 $235,462  $875,348 $765,107 
Efficiency Ratio:        
Noninterest expense$284,235 $244,776 $246,584 $250,711 $282,675  $1,026,306 $1,038,183 
Less: Amortization of intangibles (5,869) (6,040) (6,060) (6,186) (6,787)  (24,155) (25,857)
Noninterest expense, excl. amortization of intangibles 278,366  238,736  240,524  244,525  275,888   1,002,151  1,012,326 
Less: Amortization of tax credit investments (7,200) (2,644) (2,762) (2,761) (5,258)  (15,367) (10,961)
Less: Noninterest expense adjustments (28,994) (6,257) (5,975) (15,875) (47,132)  (57,101) (147,746)
Adjusted noninterest expense, excluding amortization$242,172 $229,835 $231,787 $225,889 $223,498  $929,683 $853,619 
Total revenue (FTE)3$470,602 $461,861 $469,625 $457,835 $561,505  $1,859,923 $1,746,129 
Less: Debt securities (gains) losses 825  241  (17) 5,216  173   6,265  88 
Total revenue excl. debt securities (gains) losses 471,427  462,102  469,608  463,051  561,678   1,866,188  1,746,217 
Less: Gain on sale of Visa Class B restricted shares (21,635)          (21,635)  
Less: Gain on sale of health savings accounts         (90,673)    (90,673)
Total adjusted revenue$449,792 $462,102 $469,608 $463,051 $471,005  $1,844,553 $1,655,544 
Efficiency Ratio 59.0% 51.7% 51.2% 52.8% 49.1%  53.7% 58.0%
Adjusted Efficiency Ratio 53.8% 49.7% 49.4% 48.8% 47.5%  50.4% 51.6%
         
Refer to last page of Non-GAAP reconciliations for footnotes.      



         
Non-GAAP Measures (unaudited)
($ in thousands)
 Three Months Ended Twelve Months Ended
 December 31,September 30,June 30,March 31,December 31, December 31,December 31,
  2023  2023  2023  2023  2022   2023  2022 
ROAE and ROATCE:        
Net income applicable to common shares$128,446 $143,842 $151,003 $142,566 $196,701  $565,857 $414,169 
Amortization of intangibles 5,869  6,040  6,060  6,186  6,787   24,155  25,857 
Tax effect1 (1,467) (1,510) (1,515) (1,547) (1,697)  (6,039) (6,139)
Amortization of intangibles, net 4,402  4,530  4,545  4,639  5,090   18,116  19,718 
Net income applicable to common shares, excluding intangibles amortization 132,848  148,372  155,548  147,205  201,791   583,973  433,887 
Total adjustments, net (see pg.12) 6,196  5,416  5,263  16,495  (32,353)  33,370  126,757 
Adjusted net income applicable to common shares, excluding intangibles amortization$139,044 $153,788 $160,811 $163,700 $169,438  $617,343 $560,644 
Average shareholders' equity$5,281,487 $5,294,072 $5,273,802 $5,166,188 $4,936,582  $5,254,313 $4,857,496 
Less: Average preferred equity (243,719) (243,719) (243,719) (243,719) (243,719)  (243,719) (212,525)
Average shareholders' common equity$5,037,768 $5,050,353 $5,030,083 $4,922,469 $4,692,863  $5,010,594 $4,644,971 
Average goodwill and other intangible assets (2,103,935) (2,109,944) (2,115,894) (2,122,157) (2,132,480)  (2,112,924) (1,989,466)
Average tangible shareholder's common equity$2,933,833 $2,940,409 $2,914,189 $2,800,312 $2,560,383  $2,897,670 $2,655,505 
ROAE 10.2% 11.4% 12.0% 11.6% 16.8%  11.3% 8.9%
ROAE, adjusted 10.7% 11.8% 12.4% 12.9% 14.0%  12.0% 11.6%
ROATCE 18.1% 20.2% 21.4% 21.0% 31.5%  20.2% 16.3%
ROATCE, adjusted 19.0% 20.9% 22.1% 23.4% 26.5%  21.3% 21.1%
         
Refer to last page of Non-GAAP reconciliations for footnotes.      


      
Non-GAAP Measures (unaudited)
($ in thousands)
      
 As of
 December 31,September 30,June 30,March 31,December 31,
  2023  2023  2023  2023  2022 
Tangible Common Equity:     
Shareholders' equity$5,562,900 $5,239,537 $5,292,095 $5,277,426 $5,128,595 
Less: Preferred equity (243,719) (243,719) (243,719) (243,719) (243,719)
Shareholders' common equity$5,319,181 $4,995,818 $5,048,376 $5,033,707 $4,884,876 
Less: Goodwill and other intangible assets