• Old National Bancorp Reports Fourth Quarter and Full-Year 2024 Results

    Source: Nasdaq GlobeNewswire / 21 Jan 2025 07:00:46   America/New_York

    EVANSVILLE, Ind., Jan. 21, 2025 (GLOBE NEWSWIRE) --

    Old National Bancorp (NASDAQ: ONB) reports 4Q24 net income applicable to common shares of $149.8 million, diluted EPS of $0.47; $156.0 million and $0.49 on an adjusted1 basis, respectively. Full-year net income applicable to common shares of $523.1 million, diluted EPS of $1.68; $578.1 million and $1.86 on an adjusted1 basis, respectively.

    CEO COMMENTARY:

    "Old National's successful 4th quarter was driven by continued growth in our peer-leading deposit franchise, disciplined expense and credit management, and solid net interest income and margin performance," said Chairman and CEO Jim Ryan. "These excellent results punctuate a strong year of earnings that included nearly 10% growth in total deposits, 10% total loan growth, and 8% growth in tangible book value."
     

    FOURTH QUARTER HIGHLIGHTS2: 

    Net Income•Net income applicable to common shares of $149.8 million; adjusted net income applicable to common shares1 of $156.0 million
    •Earnings per diluted common share ("EPS") of $0.47; adjusted EPS1 of $0.49
       
    Net Interest Income/NIM•Net interest income on a fully taxable equivalent basis1 of $400.0 million
    •Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.30%, down 2 basis points ("bps")
       
    Operating Performance •Pre-provision net revenue1 ("PPNR") of $218.9 million; adjusted PPNR1 of $227.1 million
    •Noninterest expense of $276.8 million; adjusted noninterest expense1 of $268.7 million
    •Efficiency ratio1 of 54.4%; adjusted efficiency ratio1 of 51.8%
       
    Deposits and Funding•Period-end total deposits of $40.8 billion, consistent with September 30, 2024; core deposits up 1.9% annualized
    •Granular low-cost deposit franchise; total deposit costs of 208 bps, down 17 bps
       
    Loans and Credit Quality•End-of-period total loans3 of $36.3 billion, down 1.6% annualized
    •Provision for credit losses4 ("provision") of $27.0 million
    •Net charge-offs of $18.7 million, or 21 bps of average loans; 17 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
    •30+ day delinquencies of 0.27% and nonaccrual loans of 1.23% of total loans
      
    Return Profile & Capital
    		•Return on average tangible common equity1 ("ROATCE") of 16.4%; adjusted ROATCE1 of 17.0%
    •Preliminary regulatory Tier 1 common equity to risk-weighted assets of 11.38%, up 38 bps
       
    Notable Items
    		•$8.1 million of pre-tax merger-related charges
    •Announced pending partnership with Bremer Financial Corporation ("Bremer")
       

    1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release     2 Comparisons are on a linked-quarter basis, unless otherwise noted     3 Includes loans held-for-sale     4 Includes the provision for unfunded commitments     5 Expense associated with a mutual separation agreement with a former Old National executive

    RESULTS OF OPERATIONS2
    Old National Bancorp ("Old National") reported fourth quarter 2024 net income applicable to common shares of $149.8 million, or $0.47 per diluted common share.

    Included in fourth quarter results were pre-tax charges of $8.1 million primarily related to the April 1, 2024 partnership with CapStar Financial Holdings, Inc. ("CapStar") and the recently announced partnership with Bremer. Excluding these transactions and realized debt securities losses from the current quarter, adjusted net income1 was $156.0 million, or $0.49 per diluted common share.

    DEPOSITS AND FUNDING
    Growth in core deposits driven by increases in private banking and community deposits, partly offset by normal seasonal patterns in public funds.

    • Period-end total deposits were $40.8 billion, consistent with September 30, 2024; core deposits up 1.9% annualized.
    • On average, total deposits for the fourth quarter were $41.1 billion, up 5.3% annualized.
    • Granular low-cost deposit franchise; total deposit costs of 208 bps, down 17 bps.
    • A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.

    LOANS
    Strong commercial loan production offset by approximately $600 million of outsized payoff activity and lower line utilization.

    • Period-end total loans3 were $36.3 billion, down 1.6% annualized.
    • Total commercial loan production in the fourth quarter was $1.5 billion; period-end commercial pipeline totaled $2.7 billion.
    • Average total loans in the fourth quarter were $36.4 billion, an increase of $111.1 million, or 1.2% annualized.

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

    • Provision4 expense was $27.0 million compared to $28.5 million.
    • Net charge-offs were $18.7 million, or 21 bps of average loans compared to 19 bps.
      • Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 17 bps compared to 16 bps.
    • 30+ day delinquencies as a percentage of loans were 0.27% compared to 0.26%.
    • Nonaccrual loans as a percentage of total loans were 1.23% compared to 1.22%.
    • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $159.8 million.
    • The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $414.2 million, or 1.14% of total loans, compared to $405.9 million, or 1.12% of total loans.

    NET INTEREST INCOME AND MARGIN
    Higher net interest income and modestly lower margin reflective of higher accretion and the rate environment.

    • Net interest income on a fully taxable equivalent basis1 increased to $400.0 million compared to $397.9 million, driven by higher accretion and lower funding costs, partly offset by earning asset mix.
    • Net interest margin on a fully taxable equivalent basis1 modestly decreased 2 bps to 3.30%.
    • Accretion income on loans and borrowings was $18.5 million, or 15 bps of net interest margin1, compared to $15.6 million, or 13 bps of net interest margin1.
    • Cost of total deposits was 2.08%, decreasing 17 bps and the cost of total interest-bearing deposits decreased 22 bps to 2.71%.

    NONINTEREST INCOME
    Increase driven by higher wealth fees and other income, partly offset by lower capital markets and mortgage fees.

    • Total noninterest income was $95.8 million compared to $94.1 million.
    • Noninterest income was up 1.7% driven by higher wealth fees and other income impacted by $8 million of discrete items, partly offset by lower capital markets and mortgage fees.

    NONINTEREST EXPENSE
    Disciplined expense management.

    • Noninterest expense was $276.8 million and included $8.1 million of merger-related charges.
      • Excluding merger-related charges and $2.6 million of pre-tax separation expense5 in the third quarter of 2024, adjusted noninterest expense1 was $268.7 million, compared to $262.8 million; increase driven by $5 million in higher performance-driven incentive accruals and $1.2 million in higher tax credit amortization.
    • The efficiency ratio1 was 54.4%, while the adjusted efficiency ratio1 was 51.8% compared to 53.8% and 51.2%, respectively.

    INCOME TAXES

    • Income tax expense was $32.2 million, resulting in an effective tax rate of 17.3% compared to 22.3%. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 19.8% compared to 24.8%.
      • Lower effective tax rate driven by $5.9 million for the resolution of tax matters and $1.2 million in higher tax credit benefits.
    • Income tax expense included $5.2 million of tax credit benefit compared to $4.0 million.

    CAPITAL
    Capital ratios remain strong.

    • Preliminary total risk-based capital up 43 bps to 13.37% and preliminary regulatory Tier 1 capital up 38 bps to 11.98%, as strong retained earnings drive capital.
    • Tangible common equity to tangible assets was 7.41% compared to 7.44%.

    MARK SANDER TO RETIRE AS PRESIDENT AND COO
    Old National Bancorp President and Chief Operating Officer Mark G. Sander will retire on June 30, 2025, after a distinguished and highly successful career in banking that began in 1980. Prior to the completion of the Old National Bancorp and First Midwest Bancorp partnership in 2022, Mr. Sander served as President, COO, and a Director at First Midwest Bancorp.

    Before joining First Midwest in 2011, Mr. Sander held the position of Executive Vice President and head of Commercial Banking at Associated Banc-Corp. He has also previously held leadership roles at Bank of America and LaSalle Bank.

    "It has been my privilege to work alongside Mark Sander over the past several years," said Old National Chairman and CEO Jim Ryan. "Thanks to Mark’s strong and steady leadership, Old National is now one of the premier banks in the nation. On behalf of all of us at Old National, I want to thank him for embodying our organizational values of collaboration, inclusion, and integrity every day."

    LEAD INDEPENDENT DIRECTOR TRANSITION
    Daniel S. Hermann, founding partner of Lechwe Holdings LLC, founder of AmeriQual Group, LLC, and former President and CEO of Black Beauty Coal Co., has been appointed Lead Independent Director of Old National Bancorp. Mr. Hermann has been a member of the Old National Bancorp board since 2020.

    Mr. Hermann succeeds Becky Skillman, former Indiana Lt. Governor and former President and CEO of Radius Indiana, who has served as Lead Independent Director since 2016. Ms. Skillman will continue her service as a member of the Old National Bancorp board, a position she has held since 2013.

    "On behalf of Old National’s Executive Leadership Team and Board of Directors, I want to thank Becky Skillman for her passionate leadership and invaluable guidance as our Lead Independent Director," said Old National Chairman and CEO Jim Ryan. "I also want to emphasize how grateful we are to have a leader of Dan Hermann’s character, stature, and experience to build upon the significant contributions that Becky has made in this critical role."

    CONFERENCE CALL AND WEBCAST
    Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, January 21, 2025, to review fourth quarter and full-year financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 9682197. A replay of the call will also be available from approximately noon Central Time on January 21, 2025 through February 4, 2025. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 9682197.

    ABOUT OLD NATIONAL
    Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $54 billion of assets and $30 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2024, Points of Light named Old National one of "The Civic 50" - an honor reserved for the 50 most community-minded companies in the United States.

    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 merger-related charges associated with completed and pending acquisitions, separation expense, debt securities gains/losses, CECL Day 1 non-PCD provision expense, distribution of excess pension assets expense, FDIC special assessment expense, gain on sale of Visa Class B restricted shares, contract termination charges, expenses related to the tragic April 10, 2023 event at our downtown Louisville location ("Louisville expenses"), and property optimization charges. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges 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 adjusted pre-provision net revenues may be useful in assessing the Company's underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

    The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, separation expense, distribution of excess pension assets expense, FDIC special assessment expense, contract termination charges, Louisville expenses, and property optimization charges, as well as adjusted noninterest income, which excludes debt securities gains/losses and the gain on sale of Visa Class B restricted shares. 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 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 Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us 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 words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "guidance," "intend," "may," "outlook," "plan," "potential," "predict," "should," "would," 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 failure to obtain necessary regulatory approvals for the merger (the “Merger”) between Old National and Bremer (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction) and the possibility that the Merger does not close when expected or at all because required regulatory approvals, the approval by Bremer’s shareholders, or other approvals and the other conditions to closing are not received or satisfied on a timely basis or at all; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Old National and Bremer; 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 impact of purchase accounting with respect to the Merger, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks; risks relating to the potential dilutive effect of shares of Old National’s common stock to be issued in the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, the success of revenue-generating and cost reduction initiatives and the diversion of management’s attention from ongoing business operations and opportunities; 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, 2023 and other filings with the SEC. 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: Rick Vach Investors: Lynell Durchholz
    (904) 535-9489 (812) 464-1366
    Rick.Vach@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,
      2024  2024  2024  2024  2023   2024  2023 
    Income Statement        
    Net interest income$394,180 $391,724 $388,421 $356,458 $364,408  $1,530,783 $1,503,153 
    FTE adjustment1,3 5,777  6,144  6,340  6,253  6,100   24,514  23,428 
    Net interest income - tax equivalent basis3 399,957  397,868  394,761  362,711  370,508   1,555,297  1,526,581 
    Provision for credit losses 27,017  28,497  36,214  18,891  11,595   110,619  58,887 
    Noninterest income 95,766  94,138  87,271  77,522  100,094   354,697  333,342 
    Noninterest expense 276,824  272,283  282,999  262,317  284,235   1,094,423  1,026,306 
    Net income available to common shareholders$149,839 $139,768 $117,196 $116,250 $128,446  $523,053 $565,857 
    Per Common Share Data        
    Weighted average diluted shares 318,803  317,331  316,461  292,207  292,029   311,001  291,855 
    EPS, diluted$0.47 $0.44 $0.37 $0.40 $0.44  $1.68 $1.94 
    Cash dividends 0.14  0.14  0.14  0.14  0.14   0.56  0.56 
    Dividend payout ratio2 30% 32% 38% 35% 32%  33% 29%
    Book value$19.11 $19.20 $18.28 $18.24 $18.18  $19.11 $18.18 
    Stock price 21.71  18.66  17.19  17.41  16.89   21.71  16.89 
    Tangible book value3 11.91  11.97  11.05  11.10  11.00   11.91  11.00 
    Performance Ratios        
    ROAA 1.14% 1.08% 0.92% 0.98% 1.09%  1.03% 1.21%
    ROAE 9.8% 9.4% 8.2% 8.7% 10.2%  9.1% 11.3%
    ROATCE3 16.4% 16.0% 14.1% 14.9% 18.1%  15.4% 20.2%
    NIM (FTE)3 3.30% 3.32% 3.33% 3.28% 3.39%  3.31% 3.54%
    Efficiency ratio3 54.4% 53.8% 57.2% 58.3% 59.0%  55.9% 53.7%
    NCOs to average loans 0.21% 0.19% 0.16% 0.14% 0.12%  0.17% 0.17%
    ACL on loans to EOP loans 1.08% 1.05% 1.01% 0.95% 0.93%  1.08% 0.93%
    ACL4 to EOP loans 1.14% 1.12% 1.08% 1.03% 1.03%  1.14% 1.03%
    NPLs to EOP loans 1.23% 1.22% 0.94% 0.98% 0.83%  1.23% 0.83%
    Balance Sheet (EOP)        
    Total loans$36,285,887 $36,400,643 $36,150,513 $33,623,319 $32,991,927  $36,285,887 $32,991,927 
    Total assets 53,552,272  53,602,293  53,119,645  49,534,918  49,089,836   53,552,272  49,089,836 
    Total deposits 40,823,560  40,845,746  39,999,228  37,699,418  37,235,180   40,823,560  37,235,180 
    Total borrowed funds 5,411,537  5,449,096  6,085,204  5,331,161  5,331,147   5,411,537  5,331,147 
    Total shareholders' equity 6,340,350  6,367,298  6,075,072  5,595,408  5,562,900   6,340,350  5,562,900 
    Capital Ratios3        
    Risk-based capital ratios (EOP):        
    Tier 1 common equity 11.38% 11.00% 10.73% 10.76% 10.70%  11.38% 10.70%
    Tier 1 capital 11.98% 11.60% 11.33% 11.40% 11.35%  11.98% 11.35%
    Total capital 13.37% 12.94% 12.71% 12.74% 12.64%  13.37% 12.64%
    Leverage ratio (average assets) 9.21% 9.05% 8.90% 8.96% 8.83%  9.21% 8.83%
    Equity to assets (averages) 11.78% 11.60% 11.31% 11.32% 10.81%  11.51% 10.91%
    TCE to TA 7.41% 7.44% 6.94% 6.86% 6.85%  7.41% 6.85%
    Nonfinancial Data        
    Full-time equivalent employees 4,066  4,105  4,267  3,955  3,940   4,066  3,940 
    Banking centers 280  280  280  258  258   280  258 
    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 to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. December 31, 2024 capital ratios are preliminary.
    4 Includes the allowance for credit losses on loans and unfunded loan 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  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,
      2024  2024  2024  2024  2023   2024  2023 
    Interest income$662,082 $679,925 $663,663 $595,981 $589,751  $2,601,651 $2,206,821 
    Less: interest expense 267,902  288,201  275,242  239,523  225,343   1,070,868  703,668 
    Net interest income 394,180  391,724  388,421  356,458  364,408   1,530,783  1,503,153 
    Provision for credit losses 27,017  28,497  36,214  18,891  11,595   110,619  58,887 
    Net interest income after provision for credit losses 367,163  363,227  352,207  337,567  352,813   1,420,164  1,444,266 
    Wealth and investment services fees 30,012  29,117  29,358  28,304  27,656   116,791  107,784 
    Service charges on deposit accounts 20,577  20,350  19,350  17,898  18,667   78,175  71,945 
    Debit card and ATM fees 10,991  11,362  10,993  10,054  10,700   43,400  42,153 
    Mortgage banking revenue 7,026  7,669  7,064  4,478  3,691   26,237  16,319 
    Capital markets income 5,244  7,426  4,729  2,900  5,416   20,299  24,419 
    Company-owned life insurance 6,499  5,315  5,739  3,434  3,773   20,987  15,397 
    Gain on sale of Visa Class B restricted shares —  —  —  —  21,635   —  21,635 
    Other income 15,539  12,975  10,036  10,470  9,381   49,020  39,955 
    Debt securities gains (losses), net (122) (76) 2  (16) (825)  (212) (6,265)
    Total noninterest income 95,766  94,138  87,271  77,522  100,094   354,697  333,342 
    Salaries and employee benefits 146,605  147,494  159,193  149,803  141,649   603,095  546,364 
    Occupancy 29,733  27,130  26,547  27,019  26,514   110,429  106,676 
    Equipment 9,325  9,888  8,704  8,671  8,769   36,588  32,163 
    Marketing 12,653  11,036  11,284  10,634  10,813   45,607  39,511 
    Technology 21,429  23,343  24,002  20,023  20,493   88,797  80,343 
    Communication 4,176  4,681  4,480  4,000  4,212   17,337  16,980 
    Professional fees 11,055  7,278  10,552  6,406  8,250   35,291  27,335 
    FDIC assessment 11,970  11,722  9,676  11,313  27,702   44,681  56,730 
    Amortization of intangibles 7,237  7,411  7,425  5,455  5,869   27,528  24,155 
    Amortization of tax credit investments 4,556  3,277  2,747  2,749  7,200   13,329  15,367 
    Other expense 18,085  19,023  18,389  16,244  22,764   71,741  80,682 
    Total noninterest expense 276,824  272,283  282,999  262,317  284,235   1,094,423  1,026,306 
    Income before income taxes 186,105  185,082  156,479  152,772  168,672   680,438  751,302 
    Income tax expense 32,232  41,280  35,250  32,488  36,192   141,250  169,310 
    Net income$153,873 $143,802 $121,229 $120,284 $132,480  $539,188 $581,992 
    Preferred dividends (4,034) (4,034) (4,033) (4,034) (4,034)  (16,135) (16,135)
    Net income applicable to common shares$149,839 $139,768 $117,196 $116,250 $128,446  $523,053 $565,857 
             
    EPS, diluted$0.47 $0.44 $0.37 $0.40 $0.44  $1.68 $1.94 
    Weighted Average Common Shares Outstanding        
    Basic 315,673  315,622  315,585  290,980  290,701   309,499  290,748 
    Diluted 318,803  317,331  316,461  292,207  292,029   311,001  291,855 
    Common shares outstanding (EOP) 318,980  318,955  318,969  293,330  292,655   318,980  292,655 
             
             


     
    End of Period Balance Sheet (unaudited)
    ($ in thousands)
     December 31,September 30,June 30,March 31,December 31,
      2024  2024  2024  2024  2023 
    Assets     
    Cash and due from banks$394,450 $498,120 $428,665 $350,990 $430,866 
    Money market and other interest-earning investments 833,518  693,450  804,381  588,509  744,192 
    Investments:     
    Treasury and government-sponsored agencies 2,289,903  2,335,716  2,207,004  2,243,754  2,453,950 
    Mortgage-backed securities 6,175,103  6,085,826  5,890,371  5,566,881  5,245,691 
    States and political subdivisions 1,637,379  1,665,128  1,678,597  1,672,061  1,693,819 
    Other securities 781,656  783,079  775,623  760,847  779,048 
    Total investments 10,884,041  10,869,749  10,551,595  10,243,543  10,172,508 
    Loans held-for-sale, at fair value 34,483  62,376  66,126  19,418  32,006 
    Loans:     
    Commercial 10,288,560  10,408,095  10,332,631  9,648,269  9,512,230 
    Commercial and agriculture real estate 16,307,486  16,356,216  16,016,958  14,653,958  14,140,629 
    Residential real estate 6,797,586  6,757,896  6,894,957  6,661,379  6,699,443 
    Consumer 2,892,255  2,878,436  2,905,967  2,659,713  2,639,625 
    Total loans 36,285,887  36,400,643  36,150,513  33,623,319  32,991,927 
    Allowance for credit losses on loans (392,522) (380,840) (366,335) (319,713) (307,610)
    Premises and equipment, net 588,970  599,528  601,945  564,007  565,396 
    Goodwill and other intangible assets 2,296,098  2,305,084  2,306,204  2,095,511  2,100,966 
    Company-owned life insurance 859,851  863,723  862,032  767,423  767,902 
    Accrued interest receivable and other assets 1,767,496  1,690,460  1,714,519  1,601,911  1,591,683 
    Total assets$53,552,272 $53,602,293 $53,119,645 $49,534,918 $49,089,836 
          
    Liabilities and Equity     
    Noninterest-bearing demand deposits$9,399,019 $9,429,285 $9,336,042 $9,257,709 $9,664,247 
    Interest-bearing:     
    Checking and NOW accounts 7,538,987  7,314,245  7,680,865  7,236,667  7,331,487 
    Savings accounts 4,753,279  4,781,447  4,983,811  5,020,095  5,099,186 
    Money market accounts 11,807,228  11,601,461  10,485,491  10,234,113  9,561,116 
    Other time deposits 5,819,970  6,010,070  5,688,432  4,760,659  4,565,137 
    Total core deposits 39,318,483  39,136,508  38,174,641  36,509,243  36,221,173 
    Brokered deposits 1,505,077  1,709,238  1,824,587  1,190,175  1,014,007 
    Total deposits 40,823,560  40,845,746  39,999,228  37,699,418  37,235,180 
          
    Federal funds purchased and interbank borrowings 385  135,263  250,154  50,416  390 
    Securities sold under agreements to repurchase 268,975  244,626  240,713  274,493  285,206 
    Federal Home Loan Bank advances 4,452,559  4,471,153  4,744,560  4,193,039  4,280,681 
    Other borrowings 689,618  598,054  849,777  813,213  764,870 
    Total borrowed funds 5,411,537  5,449,096  6,085,204  5,331,161  5,331,147 
    Accrued expenses and other liabilities 976,825  940,153  960,141  908,931  960,609 
    Total liabilities 47,211,922  47,234,995  47,044,573  43,939,510  43,526,936 
    Preferred stock, common stock, surplus, and retained earnings 7,086,393  6,971,054  6,866,480  6,375,036  6,301,709 
    Accumulated other comprehensive income (loss), net of tax (746,043) (603,756) (791,408) (779,628) (738,809)
    Total shareholders' equity 6,340,350  6,367,298  6,075,072  5,595,408  5,562,900 
    Total liabilities and shareholders' equity$53,552,272 $53,602,293 $53,119,645 $49,534,918 $49,089,836 
     
     


                 
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
                 
                 
      Three Months Ended Three Months Ended Three Months Ended
      December 31, 2024 September 30, 2024 December 31, 2023
      AverageIncome1/Yield/ AverageIncome1/Yield/ AverageIncome1/Yield/
    Earning Assets: BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate
    Money market and other interest-earning investments $  1,072,509 $     12,8434.76% $     904,176 $     11,6965.15% $  1,094,196 $     14,4255.23%
    Investments:            
    Treasury and government-sponsored agencies      2,325,120         20,8413.59%      2,255,629         21,8513.87%      2,490,793         25,8484.15%
    Mortgage-backed securities      6,149,775         50,4163.28%      5,977,058         48,4253.24%      4,913,151         34,2092.79%
    States and political subdivisions      1,654,591         13,6983.31%      1,668,454         14,0423.37%      1,686,119         14,5413.45%
    Other securities         783,708         10,5185.37%         785,107         12,5476.39%         749,697         10,4405.57%
    Total investments     10,913,194         95,4733.50%     10,686,248         96,8653.63%      9,839,760         85,0383.46%
    Loans:2            
    Commercial     10,401,056       176,9966.81%     10,373,340       183,8787.09%      9,351,344       163,9217.01%
    Commercial and agriculture real estate     16,326,802       263,0626.44%     16,216,842       274,8326.78%     14,074,908       226,7166.44%
    Residential real estate loans      6,814,829         68,3464.01%      6,833,597         67,0843.93%      6,706,425         62,0543.70%
    Consumer      2,883,413         51,1397.06%      2,891,260         51,7147.12%      2,634,650         43,6976.58%
    Total loans     36,426,100       559,5436.14%     36,315,039       577,5086.36%     32,767,327       496,3886.06%
                 
    Total earning assets $48,411,803 $   667,8595.52% $47,905,463 $   686,0695.73% $43,701,283 $   595,8515.45%
                 
    Less: Allowance for credit losses on loans        (382,799)          (366,667)          (304,195)  
                 
    Non-earning Assets:            
    Cash and due from banks $     370,932    $     413,583    $     415,266   
    Other assets      5,402,359         5,394,032         5,027,892   
                 
    Total assets $53,802,295    $53,346,411    $48,840,246   
                 
    Interest-Bearing Liabilities:            
    Checking and NOW accounts $  7,338,532 $     23,7471.29% $  7,551,264 $     29,3441.55% $  7,280,268 $     25,0151.36%
    Savings accounts      4,750,387           4,4670.37%      4,860,161           5,1840.42%      5,184,712           5,1960.40%
    Money market accounts     11,900,305       103,8183.47%     11,064,433       106,1483.82%      9,244,117         85,7173.68%
    Other time deposits      5,985,911         61,6794.10%      5,928,241         64,4354.32%      4,516,432         44,3963.90%
    Total interest-bearing core deposits     29,975,135       193,7112.57%     29,404,099       205,1112.78%     26,225,529       160,3242.43%
    Brokered deposits      1,662,698         21,5795.16%      1,829,218         24,6165.35%      1,012,647         13,0415.11%
    Total interest-bearing deposits     31,637,833       215,2902.71%     31,233,317       229,7272.93%     27,238,176       173,3652.53%
                 
    Federal funds purchased and interbank borrowings               433                2321.13%           14,549              2927.98%               620                 85.12%
    Securities sold under agreements to repurchase         249,133              5840.93%         239,524              6121.02%         277,927              9101.30%
    Federal Home Loan Bank advances      4,461,733         43,7883.90%      4,572,046         47,7194.15%      4,182,877         38,3943.64%
    Other borrowings         669,580           8,2174.88%         754,544           9,8515.19%         869,644         12,6665.78%
    Total borrowed funds      5,380,879         52,6123.89%      5,580,663         58,4744.17%      5,331,068         51,9783.87%
                 
    Total interest-bearing liabilities $37,018,712 $   267,9022.88% $36,813,980 $   288,2013.11% $32,569,244 $   225,3432.74%
                 
    Noninterest-Bearing Liabilities and Shareholders' Equity           
    Demand deposits $  9,509,446    $  9,371,698    $  9,949,616   
    Other liabilities         935,184            970,662         1,039,899   
    Shareholders' equity      6,338,953         6,190,071         5,281,487   
                 
    Total liabilities and shareholders' equity $53,802,295    $53,346,411    $48,840,246   
                 
    Net interest rate spread   2.64%   2.62%   2.71%
                 
    Net interest margin (GAAP)   3.26%   3.27%   3.34%
                 
    Net interest margin (FTE)3   3.30%   3.32%   3.39%
                 
    FTE adjustment  $       5,777   $       6,144   $       6,100 
                 
    1 Interest income is reflected on a FTE basis. 
    2 Includes loans held-for-sale. 
    3 Represents a non-GAAP financial measure. Refer to 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, 2024 December 31, 2023
      AverageIncome1/Yield/ AverageIncome1/Yield/
    Earning Assets: BalanceExpenseRate BalanceExpenseRate
    Money market and other interest-earning investments $887,771 $45,8355.16% $826,453 $39,6834.80%
    Investments:        
    Treasury and government-sponsored agencies  2,288,053  87,4893.82%  2,322,792  84,7713.65%
    Mortgage-backed securities  5,829,322  185,6333.18%  5,178,940  136,8272.64%
    States and political subdivisions  1,672,493  56,0063.35%  1,749,722  57,8473.31%
    Other securities  781,969  47,8216.12%  776,456  39,1665.04%
    Total investments $10,571,837 $376,9493.57% $10,027,910 $318,6113.18%
    Loans:2        
    Commercial  10,166,184  711,5627.00%  9,570,639  639,1316.68%
    Commercial and agriculture real estate  15,698,854  1,028,3876.55%  13,405,946  825,0536.15%
    Residential real estate loans  6,823,798  266,1163.90%  6,646,684  243,6463.67%
    Consumer  2,832,823  197,3166.97%  2,618,098  164,1256.27%
    Total loans  35,521,659  2,203,3816.20%  32,241,367  1,871,9555.81%
             
    Total earning assets $46,981,267 $2,626,1655.59% $43,095,730 $2,230,2495.18%
             
    Less: Allowance for credit losses on loans  (348,638)    (302,486)  
             
    Non-earning Assets:        
    Cash and due from banks $394,350    $413,569   
    Other assets  5,275,427     4,945,394   
             
    Total assets $52,302,406    $48,152,207   
             
    Interest-Bearing Liabilities:        
    Checking and NOW accounts $7,554,510 $112,7411.49% $7,664,183 $94,2631.23%
    Savings accounts  4,919,559  19,9220.40%  5,638,766  14,9410.26%
    Money market accounts  10,905,756  406,7393.73%  7,249,497  206,6342.85%
    Other time deposits  5,492,898  230,1324.19%  3,875,984  123,4283.18%
    Total interest-bearing core deposits  28,872,723  769,5342.67%  24,428,430  439,2661.80%
    Brokered deposits  1,447,491  76,7285.30%  913,349  45,0944.94%
    Total interest-bearing deposits  30,320,214  846,2622.79%  25,341,779  484,3601.91%
             
    Federal funds purchased and interbank borrowings  57,950  3,2625.63%  229,386  11,4124.98%
    Securities sold under agreements to repurchase  258,630  2,7521.06%  332,853  3,2990.99%
    Federal Home Loan Bank advances  4,473,800  177,3173.96%  4,568,964  161,8603.54%
    Other borrowings  784,994  41,2755.26%  822,471  42,7375.20%
    Total borrowed funds  5,575,374  224,6064.03%  5,953,674  219,3083.68%
             
    Total interest-bearing liabilities  35,895,588  1,070,8682.98%  31,295,453  703,6682.25%
             
    Noninterest-Bearing Liabilities and Shareholders' Equity       
    Demand deposits $9,424,577    $10,633,806   
    Other liabilities  962,511     968,635   
    Shareholders' equity  6,019,730     5,254,313   
             
    Total liabilities and shareholders' equity $52,302,406    $48,152,207   
             
    Net interest rate spread   2.61%   2.93%
             
    Net interest margin (GAAP)   3.26%   3.49%
             
    Net interest margin (FTE)3   3.31%   3.54%
             
    FTE adjustment  $24,514   $23,428 
             
    1 Interest income is reflected on a FTE.
    2 Includes loans held-for-sale.        
    3 Represents a non-GAAP financial measure. Refer to 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,
      2024  2024  2024  2024  2023   2024  2023 
    Allowance for credit losses:        
    Beginning allowance for credit losses on loans$380,840 $366,335 $319,713 $307,610 $303,982  $307,610 $303,671 
    Allowance established for acquired PCD loans —  2,803  23,922  —  —   26,725  — 
    Provision for credit losses on loans 30,417  29,176  36,745  23,853  13,329   120,191  59,849 
    Gross charge-offs (21,278) (18,965) (17,041) (14,020) (13,202)  (71,304) (68,463)
    Gross recoveries 2,543  1,491  2,996  2,270  3,501   9,300  12,553 
    NCOs (18,735) (17,474) (14,045) (11,750) (9,701)  (62,004) (55,910)
    Ending allowance for credit losses on loans$392,522 $380,840 $366,335 $319,713 $307,610  $392,522 $307,610 
    Beginning allowance for credit losses on unfunded commitments$25,054 $25,733 $26,264 $31,226 $32,960  $31,226 $32,188 
    Provision (release) for credit losses on unfunded commitments (3,400) (679) (531) (4,962) (1,734)  (9,572) (962)
    Ending allowance for credit losses on unfunded commitments$21,654 $25,054 $25,733 $26,264 $31,226  $21,654 $31,226 
    Allowance for credit losses$414,176 $405,894 $392,068 $345,977 $338,836  $414,176 $338,836 
    Provision for credit losses on loans$30,417 $29,176 $36,745 $23,853 $13,329  $120,191 $59,849 
    Provision (release) for credit losses on unfunded commitments (3,400) (679) (531) (4,962) (1,734)  (9,572) (962)
    Provision for credit losses$27,017 $28,497 $36,214 $18,891 $11,595  $110,619 $58,887 
    NCOs / average loans1 0.21% 0.19% 0.16% 0.14% 0.12%  0.17% 0.17%
    Average loans1$36,410,414 $36,299,544 $36,053,845 $33,242,739 $32,752,406  $35,506,298 $32,233,020 
    EOP loans1 36,285,887  36,400,643  36,150,513  33,623,319  32,991,927   36,285,887  32,991,927 
    ACL on loans / EOP loans1 1.08% 1.05% 1.01% 0.95% 0.93%  1.08% 0.93%
    ACL / EOP loans1 1.14% 1.12% 1.08% 1.03% 1.03%  1.14% 1.03%
    Underperforming Assets:        
    Loans 90 days and over (still accruing)$4,060 $1,177 $5,251 $2,172 $961  $4,060 $961 
    Nonaccrual loans 447,979  443,597  340,181  328,645  274,821   447,979  274,821 
    Foreclosed assets 4,294  4,077  8,290  9,344  9,434   4,294  9,434 
    Total underperforming assets$456,333 $448,851 $353,722 $340,161 $285,216  $456,333 $285,216 
    Classified and Criticized Assets:        
    Nonaccrual loans$447,979 $443,597 $340,181 $328,645 $274,821  $447,979 $274,821 
    Substandard loans (still accruing) 1,073,413  1,074,243  841,087  626,157  599,358   1,073,413  599,358 
    Loans 90 days and over (still accruing) 4,060  1,177  5,251  2,172  961   4,060  961 
    Total classified loans - "problem loans" 1,525,452  1,519,017  1,186,519  956,974  875,140   1,525,452  875,140 
    Other classified assets 58,954  59,485  60,772  54,392  48,930   58,954  48,930 
    Special Mention 908,630  837,543  967,655  827,419  843,920   908,630  843,920 
    Total classified and criticized assets$2,493,036 $2,416,045 $2,214,946 $1,838,785 $1,767,990  $2,493,036 $1,767,990 
    Loans 30-89 days past due (still accruing)$93,141 $91,750 $51,712 $53,112 $71,868  $93,141 $71,868 
    Nonaccrual loans / EOP loans1 1.23% 1.22% 0.94% 0.98% 0.83%  1.23% 0.83%
    ACL / nonaccrual loans 92% 92% 115% 105% 123%  92% 123%
    Under-performing assets/EOP loans1 1.26% 1.23% 0.98% 1.01% 0.86%  1.26% 0.86%
    Under-performing assets/EOP assets 0.85% 0.84% 0.67% 0.69% 0.58%  0.85% 0.58%
    30+ day delinquencies/EOP loans1 0.27% 0.26% 0.16% 0.16% 0.22%  0.27% 0.22%
             
    1 Excludes loans held-for-sale.      
             
             


             
    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,
      2024  2024  2024  2024  2023   2024  2023 
    Earnings Per Share:        
    Net income applicable to common shares$149,839 $139,768 $117,196 $116,250 $128,446  $523,053 $565,857 
    Adjustments:        
    Merger-related charges 8,117  6,860  19,440  2,908  5,529   37,325  28,716 
    Tax effect1 (2,058) (1,528) (4,413) (710) (1,343)  (8,709) (5,834)
    Merger-related charges, net 6,059  5,332  15,027  2,198  4,186   28,616  22,882 
    Debt securities (gains) losses 122  76  (2) 16  825   212  6,265 
    Tax effect1 (31) (17) 1  (4) (200)  (51) (1,375)
    Debt securities (gains) losses, net 91  59  (1) 12  625   161  4,890 
    Separation expense —  2,646  —  —  —   2,646  — 
    Tax effect1 —  (589) —  —  —   (589) — 
    Separation expense, net —  2,057  —  —  —   2,057  — 
    CECL Day 1 non-PCD provision expense —  —  15,312  —  —   15,312  — 
    Tax effect1 —  —  (3,476) —  —   (3,476) — 
    CECL Day 1 non-PCD provision expense, net —  —  11,836  —  —   11,836  — 
    Distribution of excess pension assets —  —  —  13,318  —   13,318  — 
    Tax effect1 —  —  —  (3,250) —   (3,250) — 
    Distribution excess pension assets, net —  —  —  10,068  —   10,068  — 
    FDIC special assessment —  —  —  2,994  19,052   2,994  19,052 
    Tax effect1 —  —  —  (731) (4,628)  (731) (4,628)
    FDIC special assessment, net —  —  —  2,263  14,424   2,263  14,424 
    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)
    Contract termination charge —  —  —  —  4,413   —  4,413 
    Tax effect1 —  —  —  —  (1,072)  —  (1,072)
    Contract termination charge, net —  —  —  —  3,341   —  3,341 
    Louisville expenses —  —  —  —  —   —  3,361 
    Tax effect1 —  —  —  —  —   —  (392)
    Louisville expenses, net —  —  —  —  —   —  2,969 
    Property optimization charges —  —  —  —  —   —  1,559 
    Tax effect1 —  —  —  —  —   —  (315)
    Property optimization charges, net —  —  —  —  —   —  1,244 
    Total adjustments, net 6,150  7,448  26,862  14,541  6,196   55,001  33,370 
    Net income applicable to common shares, adjusted$155,989 $147,216 $144,058 $130,791 $134,642  $578,054 $599,227 
    Weighted average diluted common shares outstanding 318,803  317,331  316,461  292,207  292,029   311,001  291,855 
    EPS, diluted$0.47 $0.44 $0.37 $0.40 $0.44  $1.68 $1.94 
    Adjusted EPS, diluted$0.49 $0.46 $0.46 $0.45 $0.46  $1.86 $2.05 
    NIM:        
    Net interest income$394,180 $391,724 $388,421 $356,458 $364,408  $1,530,783 $1,503,153 
    Add: FTE adjustment2 5,777  6,144  6,340  6,253  6,100   24,514  23,428 
    Net interest income (FTE)$399,957 $397,868 $394,761 $362,711 $370,508  $1,555,297 $1,526,581 
    Average earning assets$48,411,803 $47,905,463 $47,406,849 $44,175,079 $43,701,283  $46,981,267 $43,095,730 
    NIM (GAAP) 3.26% 3.27% 3.28% 3.23% 3.34%  3.26% 3.49%
    NIM (FTE) 3.30% 3.32% 3.33% 3.28% 3.39%  3.31% 3.54%
             
    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,
      2024  2024  2024  2024  2023   2024  2023 
    PPNR:        
    Net interest income (FTE)2$399,957 $397,868 $394,761 $362,711 $370,508  $1,555,297 $1,526,581 
    Add: Noninterest income 95,766  94,138  87,271  77,522  100,094   354,697  333,342 
    Total revenue (FTE) 495,723  492,006  482,032  440,233  470,602   1,909,994  1,859,923 
    Less: Noninterest expense (276,824) (272,283) (282,999) (262,317) (284,235)  (1,094,423) (1,026,306)
    PPNR$218,899 $219,723 $199,033 $177,916 $186,367  $815,571 $833,617 
    Adjustments:        
    Gain on sale of Visa Class B restricted shares$— $— $— $— $(21,635) $— $(21,635)
    Debt securities (gains) losses 122  76  (2) 16  825   212  6,265 
    Noninterest income adjustments 122  76  (2) 16  (20,810)  212  (15,370)
    Adjusted noninterest income 95,888  94,214  87,269  77,538  79,284   354,909  317,972 
    Adjusted revenue$495,845 $492,082 $482,030 $440,249 $449,792  $1,910,206 $1,844,553 
    Adjustments:        
    Merger-related charges$8,117 $6,860 $19,440 $2,908 $5,529  $37,325 $28,716 
    Separation expense —  2,646  —  —  —   2,646  — 
    Distribution of excess pension assets —  —  —  13,318  —   13,318  — 
    FDIC Special Assessment —  —  —  2,994  19,052   2,994  19,052 
    Contract termination charges —  —  —  —  4,413   —  4,413 
    Louisville expenses —  —  —  —  —   —  3,361 
    Property optimization charges —  —  —  —  —   —  1,559 
    Noninterest expense adjustments 8,117  9,506  19,440  19,220  28,994   56,283  57,101 
    Adjusted total noninterest expense (268,707) (262,777) (263,559) (243,097) (255,241)  (1,038,140) (969,205)
    Adjusted PPNR$227,138 $229,305 $218,471 $197,152 $194,551  $872,066 $875,348 
    Efficiency Ratio:        
    Noninterest expense$276,824 $272,283 $282,999 $262,317 $284,235  $1,094,423 $1,026,306 
    Less: Amortization of intangibles (7,237) (7,411) (7,425) (5,455) (5,869)  (27,528) (24,155)
    Noninterest expense, excl. amortization of intangibles 269,587  264,872  275,574  256,862  278,366   1,066,895  1,002,151 
    Less: Amortization of tax credit investments (4,556) (3,277) (2,747) (2,749) (7,200)  (13,329) (15,367)
    Less: Noninterest expense adjustments (8,117) (9,506) (19,440) (19,220) (28,994)  (56,283) (57,101)
    Adjusted noninterest expense, excluding amortization$256,914 $252,089 $253,387 $234,893 $242,172  $997,283 $929,683 
    Total revenue (FTE)2$495,723 $492,006 $482,032 $440,233 $470,602  $1,909,994 $1,859,923 
    Less: Debt securities (gains) losses 122  76  (2) 16  825   212  6,265 
    Total revenue excl. debt securities (gains) losses 495,845  492,082  482,030  440,249  471,427   1,910,206  1,866,188 
    Less: Gain on sale of Visa Class B restricted shares —  —  —  —  (21,635)  —  (21,635)
    Total adjusted revenue$495,845 $492,082 $482,030 $440,249 $449,792  $1,910,206 $1,844,553 
    Efficiency Ratio 54.4% 53.8% 57.2% 58.3% 59.0%  55.9% 53.7%
    Adjusted Efficiency Ratio 51.8% 51.2% 52.6% 53.4% 53.8%  52.2% 50.4%
             
    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,
      2024  2024  2024  2024  2023   2024  2023 
    ROAE and ROATCE:        
    Net income applicable to common shares$149,839 $139,768 $117,196 $116,250 $128,446  $523,053 $565,857 
    Amortization of intangibles 7,237  7,411  7,425  5,455  5,869   27,528  24,155 
    Tax effect1 (1,809) (1,853) (1,856) (1,364) (1,467)  (6,882) (6,039)
    Amortization of intangibles, net 5,428  5,558  5,569  4,091  4,402   20,646  18,116 
    Net income applicable to common shares, excluding intangibles amortization 155,267  145,326  122,765  120,341  132,848   543,699  583,973 
    Total adjustments, net (see pg.12) 6,150  7,448  26,862  14,541  6,196   55,001  33,370 
    Adjusted net income applicable to common shares, excluding intangibles amortization$161,417 $152,774 $149,627 $134,882 $139,044  $598,700 $617,343 
    Average shareholders' equity$6,338,953 $6,190,071 $5,978,976 $5,565,542 $5,281,487  $6,019,730 $5,254,313 
    Less: Average preferred equity (243,719) (243,719) (243,719) (243,719) (243,719)  (243,719) (243,719)
    Average shareholders' common equity$6,095,234 $5,946,352 $5,735,257 $5,321,823 $5,037,768  $5,776,011 $5,010,594 
    Average goodwill and other intangible assets (2,301,177) (2,304,597) (2,245,405) (2,098,338) (2,103,935)  (2,237,738) (2,112,924)
    Average tangible shareholder's common equity$3,794,057 $3,641,755 $3,489,852 $3,223,485 $2,933,833  $3,538,273 $2,897,670 
    ROAE 9.8% 9.4% 8.2% 8.7% 10.2%  9.1% 11.3%
    ROAE, adjusted 10.2% 9.9% 10.0% 9.8% 10.7%  10.0% 12.0%
    ROATCE 16.4% 16.0% 14.1% 14.9% 18.1%  15.4% 20.2%
    ROATCE, adjusted 17.0% 16.8% 17.2% 16.7% 19.0%  16.9% 21.3%
             
    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,
      2024  2024  2024  2024  2023 
    Tangible Common Equity:     
    Shareholders' equity$6,340,350 $6,367,298 $6,075,072 $5,595,408 $5,562,900 
    Less: Preferred equity (243,719) (243,719) (243,719) (243,719) (243,719)
    Shareholders' common equity$6,096,631 $6,123,579 $5,831,353 $5,351,689 $5,319,181 
    Less: Goodwill and other intangible assets (2,296,098) (2,305,084) (2,306,204) (2,095,511) (2,100,966)
    Tangible shareholders' common equity$3,800,533 $3,818,495 $3,525,149 $3,256,178 $3,218,215 
          
    Total assets$53,552,272 $53,602,293 $53,119,645 $49,534,918 $49,089,836 
    Less: Goodwill and other intangible assets (2,296,098) (2,305,084) (2,306,204) (2,095,511) (2,100,966)
    Tangible assets$51,256,174 $51,297,209 $50,813,441 $47,439,407 $46,988,870 
          
    Risk-weighted assets3$40,314,805 $40,584,608 $40,627,117 $37,845,139 $37,407,347 
          
    Tangible common equity to tangible assets 7.41% 7.44% 6.94% 6.86% 6.85%
    Tangible common equity to risk-weighted assets3 9.43% 9.41% 8.68% 8.60% 8.60%
    Tangible Common Book Value:     
    Common shares outstanding 318,980  318,955  318,969  293,330  292,655 
    Tangible common book value$11.91 $11.97 $11.05 $11.10 $11.00 
          
    1  Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state).
    2  Calculated using the federal statutory tax rate in effect of 21% for all periods.
    3  December 31, 2024 figures are preliminary.
     

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