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Section 1: 8-K (FORM 8-K)

Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 22, 2018

 

 

OLD NATIONAL BANCORP

(Exact name of Registrant as specified in its charter)

 

 

 

Indiana   001-15817   35-1539838

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

One Main Street

Evansville, Indiana

  47708
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code: (812) 464-1294

 

(Former name or former address if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (s230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (s240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02

Results of Operations and Financial Condition.

On October 22, 2018, Old National Bancorp (the “Company”) issued a press release (“Press Release”) reporting its financial results for the third quarter of 2018. The Press Release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference. In connection therewith, a slide presentation outlining third-quarter earnings, strategic developments, and the Company’s financial outlook will be available on the “Investor Relations” section of the Company’s website to complement the conference call to be held on October 22, 2018, at 7:00 a.m. CDT and will be accessible at http://www.oldnational.com before the conference call begins.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

    No.    

  

Description

99.1    Press Release issued by Old National Bancorp on October 22, 2018

 

2


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 22, 2018

 

OLD NATIONAL BANCORP
By:  

/s/ James C. Ryan, III

  James C. Ryan, III
  Senior Executive Vice President and
  Chief Financial Officer

 

3

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Section 2: EX-99.1 (EX-99.1)

EX-99.1

Exhibit 99.1

 

Old National Bancorp    

One Main Street

Evansville, IN 47708

oldnational.com

    

LOGO

Media: Kathy A. Schoettlin (812) 465-7269

Investors: Lynell J. Walton (812) 464-1366

 

Old National reports record 3rd quarter net income of $51.3 million, a 30.4% increase from a year ago

Evansville, Ind. (October 22, 2018)

Old National Bancorp (NASDAQ: ONB) reports record 3Q18 net income of $51.3 million, diluted EPS of $0.34. Adjusted1 net income of $52.4 million, or $0.34 per share.

CEO COMMENTARY:

“Our record earnings for the quarter were highlighted by positive operating leverage, a modest increase in core deposit costs, stable credit, and a continued focus on expense control,” stated Chairman and CEO Bob Jones. “We were also pleased to see a 21% increase in year-over-year adjusted pre-provision net revenue. While loan balances were stable for the quarter, our loan pipeline at quarter-end remained strong. These strong 3rd quarter results position Old National very well for continued growth.”

THIRD-QUARTER HIGHLIGHTS2:

 

Net Income   

•   Net income of $51.3 million, an increase of 30.4% from third quarter of 2017

  

•   Earnings per share of $0.34, an increase of 17.2% from third quarter of 2017

  

Net Interest

Income/NIM

  

•   Net interest income on a fully taxable equivalent basis was $133.6 million, down 0.9%

  

•   Net interest margin on a fully taxable equivalent basis was 3.51% compared to 3.55%

  
Operating Performance   

•   Pre-provision net revenue1 (“PPNR”) was $60.2 million

  

•   Adjusted PPNR1 was $70.9 million, up 8.1%

  

•   Noninterest expense was $119.4 million

  

•   Adjusted noninterest expense1 was $108.4 million, compared to $114.5 million

  

•   Efficiency ratio1 was 64.71%

  

•   Adjusted efficiency ratio1 was 58.67%, a 251-basis point improvement from third quarter of 2017

  

Loans and

Credit

Quality

  

•   End-of-period total loans3 were $11,314.0 million compared to $11,321.8 million

  

•   End-of-period commercial and industrial loans were $2,949.3 million compared to $2,962.9 million

  

•   Third quarter total commercial production was $455.2 million; September 30 pipeline was $1.7 billion

  

•   Provision for loan losses of $0.8 million compared to $2.4 million in the second quarter

  

•   Net charge-offs were $1.7 million, or 0.06% annualized, compared to net recoveries of $0.8 million

  

•   Non-performing loans were 1.47% of total loans compared to 1.38%

  

Capital

Returns

  

•   Return on average equity was 9.28%

  

•   Return on average tangible common equity1 was 16.10%

  

•   Adjusted return on average tangible common equity1 was 16.42%

  

Notable

Items

  

•   $1.7 million in merger/integration charges and a $0.1 million net gain in branch actions

  

•   $9.2 million in tax credit amortization

  

•   Footprint rationalization continues with the pending sale of 10 branches, expected to close October 26, 2018

 

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 record third-quarter 2018 net income of $51.3 million, or $0.34 per diluted share.

Included in the third quarter were pre-tax charges of $1.7 million for merger and integration and a $0.1 million net gain for branch actions. Excluding these items from the current quarter and netting out securities gains, Old National would have reported net income of $52.4 million, or $0.34 per share.

As was previously disclosed, Old National entered into a branch purchase and assumption agreement for the sale of 10 Old National branches in Wisconsin to Marine Credit Union of La Crosse, Wisconsin. The sale is expected to close October 26, 2018.

LOANS

Period-end pipeline remains strong; quarterly balances stable.

 

   

Period-end total loans decreased slightly to $11,314.0 million at September 30, 2018 from $11,321.8 million at June 30, 2018.

 

   

Third quarter commercial loan production was $455.2 million, while period-end pipeline totaled $1.7 billion.

 

   

On average, total loans in the third quarter were $11,291.7 million, up from $11,262.0 million in the second quarter of 2018.

 

   

Average total loans increased $29.7 million, or 1.1% annualized.

 

   

Average commercial and industrial loan growth was $55.0 million, or 7.7% on an annualized basis.

DEPOSITS

A low-cost core deposit franchise continues to be one of Old National’s strengths.

 

   

Period-end total deposits increased to $12,598.2 million at September 30, 2018, from $12,596.4 million at June 30, 2018.

 

   

On average, total deposits in the third quarter were $12,597.8 million, down from the $12,650.8 million in the second quarter of 2018.

NET INTEREST INCOME AND MARGIN

Controlled deposit costs and higher levels of interest collected on nonaccruals benefited both net interest income and margin in the third quarter.

 

   

Net interest income decreased to $130.8 million in the third quarter of 2018 from $132.0 million in the second quarter of 2018, primarily the result of a smaller balance sheet and slightly lower accretion income.

 

   

The net interest margin on a fully taxable equivalent basis decreased 4 basis points to 3.51% compared to 3.55% in the second quarter of 2018.

 

   

Accretion income was $7.3 million, or 19 basis points of net interest margin, in the third quarter of 2018 compared to $11.5 million, or 30 basis points of net interest margin, in the second quarter of 2018. In the third quarter of 2018, accretion income was just 4.1% of adjusted total revenue.

 

   

The cost of total deposits rose 7 basis points to 0.36% in the third quarter of 2018 while the cost of total interest-bearing deposits rose 8 basis points to 0.49%.

CREDIT QUALITY

Exceptional credit quality remains a hallmark of the Old National franchise.

 

   

Asset quality remained strong with net charge-offs in the third quarter of $1.7 million, or 0.06% of total average loans, and 30-89 day delinquencies of 0.35%.

 

   

Provision expense for the third quarter was $0.8 million, reflected limited growth in the commercial portfolio this quarter, stable credit in the organic book, and improvement in acquired loan grades.

 

   

Non-performing loans as a percentage of total loans was 1.47%.


   

In accordance with current accounting practices, the loans acquired from recent acquisitions were recorded at fair value with no allowance recorded at the acquisition date. As of September 30, 2018, the remaining discount on these acquired loans was $103.1 million.

 

   

The allowance for loan losses was $52.7 million, or 0.47% of total loans at September 30, 2018.

NONINTEREST INCOME

Noninterest income declined compared to second quarter and demonstrated normal seasonal patterns in several fee income businesses.

 

   

Total noninterest income for the third quarter of 2018 was $46.0 million, a decrease of $3.3 million from the second quarter of 2018.

 

   

Included in noninterest income in the second quarter was a gain of $2.2 million from the sale of Old National’s student loan portfolio.

 

   

Higher capital markets income (up $1.8 million) was offset by seasonal declines in mortgage banking revenue (down $0.8 million) and wealth management fees (down $0.7 million).

 

   

Securities gains were $0.1 million, down $1.4 million from the second quarter of 2018.

NONINTEREST EXPENSE

Third quarter results demonstrated continued discipline with respect to expense management, helping to drive positive operating leverage1.

 

   

Noninterest expense for the third quarter of 2018 was $119.4 million and included $1.7 million in merger and integration charges, $0.1 million in branch action charges, and $9.2 million in tax credit amortization.

 

   

Excluding these items, adjusted noninterest expense for the third quarter was $108.4 million, compared to the $114.5 million in adjusted noninterest expense in the second quarter of 2018.

 

   

Adjusted operating leverage1 was +434 basis points in the third quarter compared to a year ago.

 

   

The third quarter efficiency ratio was 64.71%, while the adjusted efficiency ratio was 58.67%.

INCOME TAXES

 

   

On a fully taxable-equivalent basis, income tax expense in the third quarter was $8.1 million, resulting in a 13.6% FTE tax rate.

CAPITAL

Strong quarterly earnings drove capital ratios higher.

 

   

At the end of the third quarter, total risk-based capital was 12.1% and regulatory tier 1 capital was 11.1%.

 

   

Tangible common equity to tangible assets was 8.08% at the end of the third quarter compared to 7.98% in the second quarter of 2018.

NON-GAAP RECONCILIATIONS

 

($ in millions, except EPS, shares in 000s)

   3Q18      Adjustments4      Adjusted 3Q18  

Total Revenues (FTE)

   $ 179.6      ($ 0.3    $ 179.3  

Less: Provision for Loan Losses

     (0.8      —          (0.8

Less: Noninterest Expenses

     (119.4      1.8        (117.6

Income before Income Taxes (FTE)

   $ 59.4      $ 1.5      $ 60.9  

Income Taxes

     (8.1      (0.4      (8.5

Net Income

   $ 51.3      $ 1.1      $ 52.4  

Average Shares Outstanding

     152,784        —          152,784  

Earnings Per Share

   $ 0.34      $ 0.0      $ 0.34  

 

4

Tax-effect calculations use the 2018 statutory FTE tax rates (federal + state)


($ in millions)

   3Q18     2Q18  

Net Interest Income

   $ 130.8     $ 132.0  

FTE Adjustment

     2.8       2.8  

Net Interest Income (FTE)

   $ 133.6     $ 134.8  

Average Earning Assets

   $ 15,213.4     $ 15,176.7  

Net Interest Margin (FTE)

     3.51     3.55

($ in millions)

   3Q18     2Q18  

Net Interest Income

   $ 130.8     $ 132.0  

FTE Adjustment

     2.8       2.8  

Net Interest Income (FTE)

   $ 133.6     $ 134.8  

Total Noninterest Income

   $ 46.0     $ 49.3  

Noninterest Expense

     119.4       130.5  

Pre-Provision Net Revenue

   $ 60.2     $ 53.6  

Less: Securities Gains

     (0.1     (1.5

Less: Gain on Student Loan Sale

     —         (2.2

Less: Gain on Branch Actions

     (0.2     (0.3

Add: Merger and Integration Charges

     1.7       2.5  

Add: Branch Action Charges and Severance

     .1       1.6  

Add: Amortization of Tax Credit Investments

     9.2       11.9  

Adjusted Pre-Provision Net Revenue

   $ 70.9     $ 65.6  

 

($ in millions)

   3Q18     2Q18     3Q17  

Noninterest Expense

   $ 119.4     $ 130.5     $ 103.7  

Less: Merger and Integration Charges

     (1.7     (2.5     (0.4

Less: Branch Action Charges, Severance, Foundation Funding and Client Experience Initiative Charges

     (.1     (1.6     (4.3

Noninterest Expense less Charges

   $ 117.6     $ 126.4     $ 99.0  

Less: Amortization of Tax Credit Investments

     (9.2     (11.9     —    

Adjusted Noninterest Expense

   $ 108.4     $ 114.5     $ 99.0  

Less: Intangible Amortization

     (3.3     (3.4     (2.6

Adjusted Noninterest Expense Less Intangible Amortization

   $ 105.1     $ 111.1     $ 96.4  

Net Interest Income

   $ 130.8     $ 132.0     $ 108.5  

FTE Adjustment

     2.8       2.8       5.6  

Net Interest Income (FTE)

   $ 133.6     $ 134.8     $ 114.1  

Total Noninterest Income

   $ 46.0     $ 49.3     $ 46.4  

Total Revenue (FTE)

   $ 179.6     $ 184.1     $ 160.5  

Less: Securities Gains

     (0.1     (1.5     (3.0

Less: Gain on Student Loan Sale

     —         (2.2     —    

Less: Gain on Branch Actions

     (0.2     (0.3     —    

Adjusted Total Revenue (FTE)

   $ 179.3     $ 180.1     $ 157.5  

Efficiency Ratio

     64.71     69.58     64.17

Adjusted Efficiency Ratio

     58.67     61.68     61.18

Operating Leverage5 (basis points)

     (322    

Adjusted Operating Leverage6 (basis points)

     434      

 

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)

   3Q18     2Q18  

Net Income (Loss)

   $ 51.3     $ 44.0  

Add: Intangible Amortization (net of tax7)

     2.6       2.7  

Tangible Net Income (Loss)

   $ 53.9     $ 46.7  

Less: Securities Gains (net of tax7)

     (0.1     (1.1

Less: Gain on Sale of Student Loans (net of tax7)

     —         (1.7

Add: Merger & Integration Charges (net of tax7)

     1.3       1.9  

Add: Branch Action Charges (net of gains) and Severance (net of tax7)

     (0.1     1.0  

Adjusted Tangible Net Income (Loss)

   $ 55.0     $ 46.8  

Average Total Shareholders’ Equity

   $ 2,212.7     $ 2,183.6  

Less: Average Goodwill

     (828.8     (828.8

Less: Average Intangibles

     (43.7     (47.1

Average Tangible Shareholders’ Equity

   $ 1,340.2     $ 1,307.7  

Return on Average Tangible Common Equity

     16.10     14.28

Adjusted Return on Average Tangible Common Equity

     16.42     14.32

 

7 

Tax-effect calculations use the 2018 statutory FTE tax rates (federal + state)

CONFERENCE CALL AND WEBCAST

Old National will host a conference call and live webcast at 7:00 a.m. Central Time on Monday, October 22, 2018, to review third-quarter 2018 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 10:00 a.m. Central Time on October 22 through November 5. To access the replay, dial 1-855-859-2056, Conference ID Code 8898768.

ABOUT OLD NATIONAL

Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. Headquartered in Evansville with $17.6 billion in assets, it is a top 100 U.S. bank, the largest Indiana-based bank and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for seven consecutive years. For nearly 185 years, Old National has been a community bank committed to building long-term, highly valued relationships with clients. With locations in Indiana, Kentucky, Michigan, Minnesota and Wisconsin, Old National provides retail and commercial banking services along with comprehensive wealth management, investment and capital markets services. For 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. 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: expected cost savings, synergies and other financial benefits from the merger with Klein that might not be realized within the expected timeframes and costs or difficulties relating to integration matters might be greater than expected; market, economic, operational, liquidity, credit and interest rate risks associated with Old National’s business; competition; 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; 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; 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     Nine Months Ended  
     September 30,     June 30,     September 30,     September 30,     September 30,  
     2018     2018     2017     2018     2017  

Income Statement

          

Net interest income

   $ 130,842     $ 131,963     $ 108,478     $ 391,377     $ 318,612  

Provision for loan losses

     750       2,446       311       3,576       2,013  

Noninterest income

     45,957       49,289       46,366       137,151       138,557  

Noninterest expense

     119,376       130,460       103,702       366,993       308,404  

Net income

     51,348       44,001       39,372       143,332       114,218  

Per Common Share Data (Diluted)

          

Net income available to common shareholders

   $ 0.34     $ 0.29     $ 0.29     $ 0.94     $ 0.84  

Average diluted shares outstanding

     152,784       152,568       135,796       152,616       135,693  

Book value

     14.58       14.44       14.07       14.58       14.07  

Stock price

     19.30       18.60       18.30       19.30       18.30  

Dividend payout ratio

     38     45     43     41     46

Tangible common book value (1)

     8.86       8.70       9.02       8.86       9.02  

Performance Ratios

          

Return on average assets

     1.18     1.01     1.05     1.10     1.02

Return on average common equity

     9.28     8.06     8.31     8.74     8.18

Return on average tangible common equity (1)

     16.10     14.28     13.58     15.40     13.59

Net interest margin (FTE)

     3.51     3.55     3.52     3.51     3.48

Efficiency ratio (2)

     64.71     69.58     64.17     66.74     64.29

Net charge-offs (recoveries) to average loans

     0.06     -0.03     0.05     0.01     0.02

Allowance for loan losses to ending loans

     0.47     0.48     0.53     0.47     0.53

Non-performing loans to ending loans

     1.47     1.38     1.46     1.47     1.46

Balance Sheet

          

Total loans

   $ 11,292,659     $ 11,295,629     $ 9,398,124     $ 11,292,659     $ 9,398,124  

Total assets

     17,567,759       17,482,990       15,065,800       17,567,759       15,065,800  

Total deposits

     12,598,200       12,596,376       10,606,784       12,598,200       10,606,784  

Total borrowed funds

     2,576,039       2,530,104       2,411,111       2,576,039       2,411,111  

Total shareholders’ equity

     2,220,680       2,200,215       1,906,823       2,220,680       1,906,823  

Capital Ratios (1)

          

Risk-based capital ratios (EOP):

          

Tier 1 common equity

     11.1     10.9     11.7     11.1     11.7

Tier 1

     11.1     10.9     12.0     11.1     12.0

Total

     12.1     11.9     12.5     12.1     12.5

Leverage ratio (to average assets)

     8.6     8.3     8.8     8.6     8.8

Total equity to assets (averages)

     12.69     12.54     12.65     12.55     12.53

Tangible common equity to tangible assets

     8.08     7.98     8.50     8.08     8.50
Nonfinancial Data                               

Full-time equivalent employees

     2,554       2,683       2,592       2,554       2,592  

Number of branches

     182       183       188       182       188  

 

(1)

See “Non-GAAP Measures” table.

(2)

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 securities transactions. This presentation excludes amortization of intangibles and net 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      Nine Months Ended  
     September 30,      June 30,      September 30,      September 30,      September 30,  
     2018      2018      2017      2018      2017  

Interest income

   $ 155,369      $ 153,736      $ 123,525      $ 456,811      $ 360,202  

Less: interest expense

     24,527        21,773        15,047        65,434        41,590  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income

     130,842        131,963        108,478        391,377        318,612  

Provision for loan losses

     750        2,446        311        3,576        2,013  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

     130,092        129,517        108,167        387,801        316,599  

Wealth management fees

     9,022        9,746        8,837        27,794        27,515  

Service charges on deposit accounts

     11,028        10,765        10,535        32,552        30,418  

Debit card and ATM fees

     4,706        5,080        4,248        14,651        12,920  

Mortgage banking revenue

     4,348        5,189        5,104        13,729        14,516  

Investment product fees

     5,073        5,066        5,193        15,170        15,186  

Capital markets income

     2,700        896        1,843        4,094        5,621  

Company-owned life insurance

     2,958        2,430        2,022        7,993        6,288  

Other income

     5,986        8,586        5,570        18,702        18,407  

Gains (losses) on sales of securities

     135        1,494        2,972        2,417        7,547  

Gains (losses) on derivatives

     1        37        42        49        139  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest income

     45,957        49,289        46,366        137,151        138,557  

Salaries and employee benefits

     63,158        66,592        57,783        193,929        171,953  

Occupancy

     12,578        12,873        11,670        38,731        34,343  

Equipment

     3,652        3,728        3,485        10,945        10,062  

Marketing

     3,406        3,962        2,646        11,065        9,369  

Data processing

     8,628        9,724        7,696        26,752        23,530  

Communication

     2,473        2,772        2,163        8,309        6,865  

Professional fees

     3,235        2,923        4,589        8,888        11,317  

Loan expenses

     1,564        1,843        1,542        5,151        4,866  

Supplies

     707        903        547        2,332        1,720  

FDIC assessment

     2,722        3,161        2,197        8,528        6,814  

Other real estate owned expense

     157        196        511        702        2,635  

Amortization of intangibles

     3,283        3,416        2,641        10,308        8,442  

Amortization of tax credit investments

     9,233        11,858        —          21,807        —    

Other expense

     4,580        6,509        6,232        19,546        16,488  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

     119,376        130,460        103,702        366,993        308,404  

Income before income taxes

     56,673        48,346        50,831        157,959        146,752  

Income tax expense

     5,325        4,345        11,459        14,627        32,534  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 51,348      $ 44,001      $ 39,372      $ 143,332      $ 114,218  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Diluted Earnings Per Share

              

Net income

   $ 0.34      $ 0.29      $ 0.29      $ 0.94      $ 0.84  

Average Common Shares Outstanding

              

Basic

     151,930        151,878        135,120        151,844        135,040  

Diluted

     152,784        152,568        135,796        152,616        135,693  

Common shares outstanding at end of period

     152,352        152,351        135,523        152,352        135,523  


Balance Sheet (unaudited)

($ in thousands)

 

     September 30,     June 30,     September 30,  
     2018     2018     2017  

Assets

      

Federal Reserve Bank account

   $ 65,878     $ 43,889     $ 32,333  

Money market investments

     5,859       10,359       17,382  

Investments:

      

Treasury and government-sponsored agencies

     690,709       647,058       582,051  

Mortgage-backed securities

     1,640,254       1,588,120       1,458,385  

States and political subdivisions

     1,099,535       1,110,087       1,095,975  

Other securities

     496,199       503,920       451,082  
  

 

 

   

 

 

   

 

 

 

Total investments

     3,926,697       3,849,185       3,587,493  
  

 

 

   

 

 

   

 

 

 

Loans held for sale, at fair value

     21,384       26,198       30,221  

Loans:

      

Commercial

     2,949,277       2,962,895       2,049,054  

Commercial and agriculture real estate

     4,481,554       4,451,772       3,370,211  

Consumer:

      

Home equity

     498,325       488,038       477,100  

Other consumer loans

     1,197,300       1,238,951       1,382,639  
  

 

 

   

 

 

   

 

 

 

Subtotal of commercial and consumer loans

     9,126,456       9,141,656       7,279,004  

Residential real estate

     2,166,203       2,153,973       2,119,120  
  

 

 

   

 

 

   

 

 

 

Total loans

     11,292,659       11,295,629       9,398,124  
  

 

 

   

 

 

   

 

 

 

Total earning assets

     15,312,477       15,225,260       13,065,553  
  

 

 

   

 

 

   

 

 

 

Allowance for loan losses

     (52,713     (53,660     (50,169

Non-earning Assets:

      

Cash and due from banks

     215,024       219,626       202,652  

Premises and equipment, net

     450,253       449,304       412,488  

Goodwill and other intangible assets

     870,938       874,221       684,253  

Company-owned life insurance

     405,245       405,492       356,897  

Net deferred tax assets

     94,667       90,187       137,951  

Loan servicing rights

     24,336       24,303       24,900  

Other real estate owned and repossessed personal property

     3,563       3,729       10,259  

Other assets

     243,969       244,528       221,016  
  

 

 

   

 

 

   

 

 

 

Total non-earning assets

     2,307,995       2,311,390       2,050,416  
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 17,567,759     $ 17,482,990     $ 15,065,800  
  

 

 

   

 

 

   

 

 

 

Liabilities and Equity

      

Noninterest-bearing demand deposits

   $ 3,588,370     $ 3,600,793     $ 3,034,696  

Interest-bearing:

      

Checking and NOW accounts

     3,011,544       3,054,302       2,539,233  

Savings accounts

     2,920,712       3,026,110       2,932,488  

Money market accounts

     1,185,439       1,090,621       648,378  

Other time deposits

     1,667,055       1,648,390       1,337,156  
  

 

 

   

 

 

   

 

 

 

Total core deposits

     12,373,120       12,420,216       10,491,951  

Brokered CD’s

     225,080       176,160       114,833  
  

 

 

   

 

 

   

 

 

 

Total deposits

     12,598,200       12,596,376       10,606,784  

Federal funds purchased and interbank borrowings

     450,031       175,044       317,021  

Securities sold under agreements to repurchase

     319,831       347,511       285,409  

Federal Home Loan Bank advances

     1,554,515       1,757,308       1,589,367  

Other borrowings

     251,662       250,241       219,314  
  

 

 

   

 

 

   

 

 

 

Total borrowed funds

     2,576,039       2,530,104       2,411,111  

Accrued expenses and other liabilities

     172,840       156,295       141,082  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     15,347,079       15,282,775       13,158,977  

Common stock, surplus, and retained earnings

     2,300,610       2,266,918       1,941,020  

Accumulated other comprehensive income (loss), net of tax

     (79,930     (66,703     (34,197
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     2,220,680       2,200,215       1,906,823  
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 17,567,759     $ 17,482,990     $ 15,065,800  
  

 

 

   

 

 

   

 

 

 


Average Balance Sheet and Interest Rates (unaudited)

($ in thousands)

 

     Three Months Ended     Three Months Ended     Three Months Ended  
     September 30, 2018     June 30, 2018     September 30, 2017  
     Average     Income (1)/      Yield/     Average     Income (1)/      Yield/     Average     Income (1)/      Yield/  
     Balance     Expense      Rate     Balance     Expense      Rate     Balance     Expense      Rate  

Earning Assets:

                     

Money market and other interest-earning investments

   $ 35,928     $ 140        1.54   $ 51,724     $ 117        0.91   $ 32,755     $ 85        1.03

Investments:

                     

Treasury and government-sponsored agencies

     685,919       3,748        2.19     648,778       3,387        2.09     585,354       2,844        1.94

Mortgage-backed securities

     1,595,630       9,381        2.35     1,588,140       8,904        2.24     1,456,034       7,235        1.99

States and political subdivisions

     1,103,347       10,110        3.67     1,118,395       10,591        3.79     1,103,721       13,065        4.73

Other securities

     500,837       4,116        3.29     507,646       3,909        3.08     453,782       3,043        2.68
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total investments

     3,885,733       27,355        2.82     3,862,959       26,791        2.77     3,598,891       26,187        2.91
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Loans: (2)

                     

Commercial

     2,928,744       33,381        4.46     2,873,781       32,527        4.48     2,021,614       20,731        4.01

Commercial and agriculture real estate

     4,465,105       57,377        5.03     4,449,839       57,251        5.09     3,298,435       43,646        5.18

Consumer:

                     

Home equity

     495,161       6,070        4.86     492,151       6,076        4.95     479,492       5,065        4.19

Other consumer loans

     1,215,583       11,263        3.68     1,268,670       11,591        3.66     1,384,057       12,242        3.51
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Subtotal commercial and consumer loans

     9,104,593       108,091        4.71     9,084,441       107,445        4.74     7,183,598       81,684        4.51

Residential real estate loans

     2,187,130       22,536        4.12     2,177,587       22,208        4.08     2,144,478       21,190        3.95
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total loans

     11,291,723       130,627        4.56     11,262,028       129,653        4.57     9,328,076       102,874        4.35
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total earning assets

   $ 15,213,384     $ 158,122        4.11   $ 15,176,711     $ 156,561        4.11   $ 12,959,722     $ 129,146        3.95
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Less: Allowance for loan losses

     (53,734          (51,493          (51,130     

Non-earning Assets:

                     

Cash and due from banks

   $ 205,446          $ 205,617          $ 233,017       

Other assets

     2,068,469            2,086,822            1,845,612       
  

 

 

        

 

 

        

 

 

      

Total assets

   $ 17,433,565          $ 17,417,657          $ 14,987,221       
  

 

 

        

 

 

        

 

 

      

Interest-Bearing Liabilities:

                     

Checking and NOW accounts

   $ 3,026,289     $ 1,180        0.15   $ 3,097,635     $ 969        0.13   $ 2,570,321     $ 544        0.08

Savings accounts

     2,974,147       2,119        0.28     3,036,936       1,777        0.23     2,934,445       1,289        0.17

Money market accounts

     1,153,906       1,254        0.43     1,103,177       702        0.26     661,635       142        0.09

Other time deposits

     1,669,039       5,780        1.37     1,615,527       4,813        1.20     1,347,095       2,800        0.82
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total interest-bearing deposits

     8,823,381       10,333        0.46     8,853,275       8,261        0.37     7,513,496       4,775        0.25

Brokered CD’s

     178,283       856        1.90     194,801       878        1.81     119,707       350        1.16
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total interest-bearing deposits and CD’s

     9,001,664       11,189        0.49     9,048,076       9,139        0.41     7,633,203       5,125        0.27
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Federal funds purchased and interbank borrowings

     238,514       1,191        1.98     140,471       647        1.85     220,918       655        1.18

Securities sold under agreements to repurchase

     352,998       535        0.60     332,599       434        0.52     315,285       280        0.35

Federal Home Loan Bank advances

     1,624,661       8,880        2.17     1,713,832       8,824        2.07     1,506,606       6,618        1.74

Other borrowings

     250,255       2,732        4.37     249,291       2,729        4.38     219,241       2,369        4.32
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total borrowed funds

     2,466,428       13,338        2.15     2,436,193       12,634        2.08     2,262,050       9,922        1.74
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total interest-bearing liabilities

   $ 11,468,092     $ 24,527        0.85   $ 11,484,269     $ 21,773        0.76   $ 9,895,253     $ 15,047        0.61
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Noninterest-Bearing Liabilities

                     

Demand deposits

   $ 3,596,159          $ 3,602,732          $ 3,049,503       

Other liabilities

     156,614            147,052            146,271       

Shareholders’ equity

     2,212,700            2,183,604            1,896,194       
  

 

 

        

 

 

        

 

 

      

Total liabilities and shareholders’ equity

   $ 17,433,565          $ 17,417,657          $ 14,987,221       
  

 

 

        

 

 

        

 

 

      

Net interest rate spread

          3.26          3.35          3.34

Net interest margin (FTE)

          3.51          3.55          3.52

FTE adjustment

     $ 2,753          $ 2,825          $ 5,621     

 

(1)

Interest income is reflected on a fully taxable equivalent basis (FTE).

(2)

Includes loans held for sale.


Average Balance Sheet and Interest Rates (unaudited)

($ in thousands)

 

     Nine Months Ended     Nine Months Ended  
     September 30, 2018     September 30, 2017  
     Average     Income (1)/      Yield/     Average     Income (1)/      Yield/  
     Balance     Expense      Rate     Balance     Expense      Rate  

Earning Assets:

              

Money market and other interest-earning investments

   $ 51,284     $ 347        0.90   $ 29,172     $ 171        0.78

Investments:

              

Treasury and government-sponsored agencies

     666,015       10,559        2.11     567,403       8,422        1.98

Mortgage-backed securities

     1,605,324       27,805        2.31     1,484,132       22,643        2.03

States and political subdivisions

     1,141,827       31,179        3.64     1,119,846       40,047        4.77

Other securities

     489,465       11,694        3.19     448,544       8,738        2.60
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total investments

     3,902,631       81,237        2.78     3,619,925       79,850        2.94
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Loans: (2)

              

Commercial

     2,854,691       94,114        4.35     1,949,921       59,171        4.00

Commercial and agriculture real estate

     4,436,576       170,414        5.07     3,237,053       123,800        5.04

Consumer:

              

Home equity

     496,365       17,834        4.80     476,729       14,560        4.08

Other consumer loans

     1,276,727       34,994        3.66     1,399,040       35,890        3.43
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Subtotal commercial and consumer loans

     9,064,359       317,356        4.68     7,062,743       233,421        4.42

Residential real estate loans

     2,180,416       66,216        4.05     2,137,982       63,712        3.97
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total loans

     11,244,775       383,572        4.52     9,200,725       297,133        4.28
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total earning assets

   $ 15,198,690     $ 465,156        4.06   $ 12,849,822     $ 377,154        3.90
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Less: Allowance for loan losses

     (52,070          (50,927     

Non-earning Assets:

              

Cash and due from banks

   $ 203,421          $ 209,752       

Other assets

     2,081,615            1,861,261       
  

 

 

        

 

 

      

Total assets

   $ 17,431,656          $ 14,869,908       
  

 

 

        

 

 

      

Interest-Bearing Liabilities:

              

Checking and NOW accounts

   $ 3,063,636     $ 2,969        0.13   $ 2,599,696     $ 1,511        0.08

Savings accounts

     3,020,955       5,239        0.23     2,949,412       3,655        0.17

Money market accounts

     1,138,679       2,502        0.29     684,346       437        0.09

Other time deposits

     1,615,896       14,493        1.20     1,336,729       7,704        0.77
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total interest-bearing deposits

     8,839,166       25,203        0.38     7,570,183       13,307        0.24

Brokered CD’s

     182,720       2,380        1.74     113,111       925        1.09
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total interest-bearing deposits and CD’s

     9,021,886       27,583        0.41     7,683,294       14,232        0.25
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Federal funds purchased and interbank borrowings

     213,362       2,855        1.79     192,343       1,433        1.00

Securities sold under agreements to repurchase

     342,797       1,328        0.52     325,230       870        0.36

Federal Home Loan Bank advances

     1,671,211       25,484        2.04     1,460,293       17,947        1.64

Other borrowings

     249,464       8,184        4.37     219,097       7,108        4.33
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total borrowed funds

     2,476,834       37,851        2.04     2,196,963       27,358        1.66
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total interest-bearing liabilities

   $ 11,498,720     $ 65,434        0.76   $ 9,880,257     $ 41,590        0.56
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Noninterest-Bearing Liabilities

              

Demand deposits

   $ 3,587,453          $ 2,985,386       

Other liabilities

     157,859            141,616       

Shareholders’ equity

     2,187,624            1,862,649       
  

 

 

        

 

 

      

Total liabilities and shareholders’ equity

   $ 17,431,656          $ 14,869,908       
  

 

 

        

 

 

      

Net interest rate spread

          3.30          3.34

Net interest margin (FTE)

          3.51          3.48

FTE adjustment

     $ 8,345          $ 16,952     

 

(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     Nine Months Ended  
     September 30,     June 30,     September 30,     September 30,     September 30,  
     2018     2018     2017     2018     2017  

Beginning allowance for loan losses

   $ 53,660     $ 50,381     $ 50,986     $ 50,381     $ 49,808  

Provision for loan losses

     750       2,446       311       3,576       2,013  

Gross charge-offs

     (4,261     (3,054     (2,821     (10,000     (9,440

Gross recoveries

     2,564       3,887       1,693       8,756       7,788  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (charge-offs) recoveries

     (1,697     833       (1,128     (1,244     (1,652
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending allowance for loan losses

   $ 52,713     $ 53,660     $ 50,169     $ 52,713     $ 50,169  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net charge-offs (recoveries) / average loans (1)

     0.06     -0.03     0.05     0.01     0.02

Average loans outstanding (1)

   $ 11,284,531     $ 11,257,585     $ 9,320,868     $ 11,239,549     $ 9,194,396  

EOP loans outstanding (1)

     11,292,659     $ 11,295,629     $ 9,398,124     $ 11,292,659     $ 9,398,124  

Allowance for loan losses / EOP loans (1)

     0.47     0.48     0.53     0.47     0.53

Underperforming Assets:

          

Loans 90 Days and over (still accruing)

   $ 980     $ 1,575     $ 879     $ 980     $ 879  

Non-performing loans:

          

Nonaccrual loans (2)

     148,816       139,082       119,256       148,816       119,256  

Renegotiated loans

     17,547       17,139       17,886       17,547       17,886  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-performing loans

     166,363       156,221       137,142       166,363       137,142  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Foreclosed properties

     3,563       3,729       10,259       3,563       10,259  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total underperforming assets

   $ 170,906     $ 161,525     $ 148,280     $ 170,906     $ 148,280  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Classified and Criticized Assets:

          

Nonaccrual loans (2)

     148,816       139,082       119,256       148,816       119,256  

Substandard accruing loans

     107,257       109,051       89,389       107,257       89,389  

Loans 90 days and over (still accruing)

     980       1,575       879       980       879  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total classified loans - “problem loans”

   $ 257,053     $ 249,708     $ 209,524     $ 257,053     $ 209,524  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other classified assets

     3,070       3,149       7,526       3,070       7,526  

Criticized loans - “special mention loans”

     181,165       154,891       130,197       181,165       130,197  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total classified and criticized assets

   $ 441,288     $ 407,748     $ 347,247     $ 441,288     $ 347,247  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-performing loans / EOP loans (1)

     1.47     1.38     1.46     1.47     1.46

Allowance to non-performing loans (3)

     32     34     37     32     37

Under-performing assets / EOP loans (1)

     1.51     1.43     1.58     1.51     1.58

EOP total assets

   $ 17,567,759     $ 17,482,990     $ 15,065,800     $ 17,567,759     $ 15,065,800  

Under-performing assets / EOP assets

     0.97     0.92     0.98     0.97     0.98

EOP - End of period actual balances

 

(1)

Excludes loans held for sale.

(2)

Includes renegotiated loans totaling $29.9 million at September 30, 2018, $34.0 million at June 30, 2018, and $43.7 million at September 30, 2017.

(3)

Includes acquired loans that were recorded at fair value in accordance with ASC 805 at the date of acquisition. As such, the credit risk was incorporated in the fair value recorded and no allowance for loan losses was recorded on the acquisition date.


Non-GAAP Measures (unaudited)

($ in thousands)

 

     Three Months Ended     Nine Months Ended  
     September 30,     June 30,     September 30,     September 30,     September 30,  
     2018     2018     2017     2018     2017  

Actual End of Period Balances

          

GAAP shareholders’ equity

   $ 2,220,680     $ 2,200,215     $ 1,906,823     $ 2,220,680     $ 1,906,823  

Deduct:

          

Goodwill

     828,804       828,804       655,018       828,804       655,018  

Intangibles

     42,134       45,417       29,235       42,134       29,235  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     870,938       874,221       684,253       870,938       684,253  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible shareholders’ equity

   $ 1,349,742     $ 1,325,994     $ 1,222,570     $ 1,349,742     $ 1,222,570  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average Balances

          

GAAP shareholders’ equity

   $ 2,212,700     $ 2,183,604     $ 1,896,194     $ 2,187,624     $ 1,862,649  

Deduct:

          

Goodwill

     828,804       828,804       655,018       828,585       655,018  

Intangibles

     43,685       47,052       30,502       47,249       33,242  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     872,489       875,856       685,520       875,834       688,260  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average tangible shareholders’ equity

   $ 1,340,211     $ 1,307,748     $ 1,210,674     $ 1,311,790     $ 1,174,389  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Actual End of Period Balances

          

GAAP assets

   $ 17,567,759     $ 17,482,990     $ 15,065,800     $ 17,567,759     $ 15,065,800  

Add:

          

Trust overdrafts

     118       46       45       118       45  

Deduct:

          

Goodwill

     828,804       828,804       655,018       828,804       655,018  

Intangibles

     42,134       45,417       29,235       42,134       29,235  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     870,938       874,221       684,253       870,938       684,253  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible assets

   $ 16,696,939     $ 16,608,815     $ 14,381,592     $ 16,696,939     $ 14,381,592  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Risk-weighted assets

   $ 12,715,665     $ 12,648,732     $ 10,495,407     $ 12,715,665     $ 10,495,407  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net income

   $ 51,348     $ 44,001     $ 39,372     $ 143,332     $ 114,218  

Add:

          

Amortization of intangibles (net of tax)

     2,593       2,699       1,717       8,143       5,487  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible net income

   $ 53,941     $ 46,700     $ 41,089     $ 151,475     $ 119,705  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible Ratios

          

Return on tangible common equity

     15.99     14.09     13.44     14.96     13.06

Return on average tangible common equity

     16.10     14.28     13.58     15.40     13.59

Return on tangible assets

     1.29     1.12     1.14     1.21     1.11

Tangible common equity to tangible assets

     8.08     7.98     8.50     8.08     8.50

Tangible common equity to risk-weighted assets

     10.61     10.48     11.65     10.61     11.65

Tangible common book value (1)

     8.86       8.70       9.02       8.86       9.02  

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 capital

   $ 1,409,775     $ 1,371,918     $ 1,254,790     $ 1,409,775     $ 1,254,790  

Deduct:

          

Trust Preferred Securities (2)

     —         —         45,000       —         45,000  

Additional Tier 1 capital deductions

     —         —         (13,498     —         (13,498
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     —         —         31,502       —         31,502  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tier 1 common equity

   $ 1,409,775     $ 1,371,918     $ 1,223,288     $ 1,409,775     $ 1,223,288  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Risk-weighted assets

     12,715,665       12,648,732       10,495,407       12,715,665       10,495,407  

Tier 1 common equity to risk-weighted assets

     11.09     10.85     11.66     11.09     11.66

 

(2)

Trust Preferred Securities are now included in Tier 2 capital as a result of exceeding the $15 billion asset threshold from the

Anchor-Minnesota acquisition.

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