8-K
Old National Bancorp /In/ (ONB)
View as plain text
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): January 19, 2021
_________________________________________________________
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: (800) 731-2265
________________________________________________________
(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))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, No Par Value | ONB | The NASDAQ Stock Market LLC |
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 January 19, 2021, Old National Bancorp (the “Company”) issued a press release (“Press Release”) reporting its financial results for the fourth quarter and full year 2020. The Press Release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference. A slide presentation outlining fourth quarter and full year 2020 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 January 19, 2021, at 9:00 a.m. CDT and will be accessible at http://www.oldnational.com immediately before the conference call begins.
Forward-Looking Statements
In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect, such as statements about the potential impacts of the COVID-19 pandemic. Therefore, undue reliance should not be placed upon these estimates and statements. We cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures we may make on related subjects in our filings with the SEC.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
99.1 Press Release issued by Old National Bancorp on January 19, 2021
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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: January 19, 2021
OLD NATIONAL BANCORP
By: /s/ Brendon B. Falconer
Brendon B. Falconer
Senior Executive Vice President and
Chief Financial Officer
3
Document
| Exhibit 99.1 | |
|---|---|
| Old National Bancorp |  |
| One Main Street | |
| Evansville, IN 47708 | Media: Kathy A. Schoettlin (812) 465-7269 |
| oldnational.com | Investors: Lynell J. Walton (812) 464-1366 |
Old National reports 4th quarter earnings of $74.1 million,
or $0.44 per share
Evansville, Ind. (January 19, 2021)
| Old National Bancorp (NASDAQ: ONB) reports 4Q20 net income of $74.1 million, diluted EPS of $0.44. |
|---|
| Adjusted1 net income of $76.6 million, or $0.46 per diluted share. |
| Full-Year 2020 net income of $226.4 million, or $1.36 per diluted share. |
| Adjusted1 Full-Year net income of $250.3 million, or $1.50 per diluted share. |
CEO COMMENTARY:
| "Our 4th quarter success capped a very strong year of earnings as our team members worked with passion and resiliency to serve our clients," said Chairman and CEO Jim Ryan. "Another significant factor was the successful implementation of our ONB Way growth strategy in 2020, which enabled us to effectively and efficiently serve all client segments with streamlined processes and enhanced technology. This led to a phenomenal year of commercial loan production and outstanding performance." |
|---|
FOURTH QUARTER HIGHLIGHTS2:
| Net income | |
|---|---|
| •Earnings per diluted share of 0.44 | |
| Net interest income/NIM | |
| •Net interest margin on a fully taxable equivalent basis of 3.26% compared to 3.03% | |
| Operating Performance | |
| •Adjusted PPNR1 of 94.0 million, up 27.2% over fourth quarter of 2019 | |
| •Noninterest expense of 142.3 million | |
| •Adjusted noninterest expense1 of 128.8 million | |
| •Efficiency ratio1 of 62.37% | |
| •Adjusted efficiency ratio1 of 56.35% | |
| Loans and Credit Quality | |
| ◦Total commercial loans increased 473.1 million, excluding the 536.2 million decline in PPP loans | |
| •Fourth-quarter total commercial production of 1,197.1 million | |
| •Provision for credit losses was a recapture of 1.1 million | |
| •December 31 pipeline of 2.1 billion | |
| •Net recoveries of 1.1 million compared to net recoveries of 3.0 million | |
| •Non-performing loans of 1.20% of total loans compared to 1.15% | |
| Return Profile & Capital | |
| •Return on average tangible common equity1 of 16.57% | |
| •Adjusted return on average tangible common equity1 of 17.08% | |
| •No shares of common stock were repurchased during the current quarter | |
| Notable Items | |
| •9.9 million in tax credit amortization |
All values are in US Dollars.
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 fourth quarter 2020 net income of $74.1 million, or $0.44 per diluted share.
Included in the fourth quarter were pre-tax charges of $3.6 million for the ONB Way. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $76.6 million, or $0.46 per diluted share.
LOANS
Strong commercial production continued; PPP loan forgiveness accelerated.
•Period-end total loans were $13,849.7 million at December 31, 2020, a decrease of $127.9 million, or 3.7% annualized, when compared to the $13,977.6 million at September 30, 2020.
•Excluding the $536.2 million decline in PPP loans during the quarter, total loans increased $408.3 million, or 13.1% annualized.
•Excluding PPP loans, commercial and industrial loans increased $228.1 million, or 32.8% annualized.
•Commercial real estate loans increased $245.0 million to $5,946.5 million, or 17.2% annualized growth.
•Total commercial loan production in the fourth quarter was $1,197.1 million; period-end pipeline totaled $2.1 billion.
•Consumer loans decreased $26.0 million to $1,635.1 million and residential mortgage loans decreased $16.9 million to $2,248.4 million.
•Average total loans in the fourth quarter were $13,927.7 million, an increase of $78.8 million from the third quarter of 2020.
•Excluding PPP loans, average total loans in the fourth quarter increased $333.9 million from the third quarter of 2020.
DEPOSITS
A low-cost core deposit franchise continues to be one of Old National’s strengths.
•Period-end total deposits were $17,037.5 million at December 31, 2020, an increase of $531.0 million, or 12.9% annualized, when compared to the $16,506.5 million at September 30, 2020.
•Interest-bearing checking deposits increased $288.6 million to $4,877.0 million at December 31, 2020.
•Noninterest-bearing deposits increased $170.7 million to $5,633.7 million at December 31, 2020 from $5,463.0 million at September 30, 2020.
•On average, total deposits in the fourth quarter were $16,810.6 million, compared to $16,436.8 million in the third quarter of 2020.
NET INTEREST INCOME AND MARGIN
Net interest income and margin benefit from accelerated PPP loan forgiveness; deposit and funding costs continue to decline.
•Net interest income increased to $161.1 million in the fourth quarter of 2020.
•The net interest margin on a fully taxable equivalent basis increased 23 basis points to 3.26% compared to 3.03% in the third quarter of 2020.
•PPP interest and net fees combined were $22.6 million, or 26 basis points of net interest margin, in the fourth quarter of 2020 compared to $8.8 million, or a 5 basis points reduction to the net interest margin, in the third quarter of 2020.
•Accretion income was $5.4 million, or 10 basis points of net interest margin, in the fourth quarter of 2020 compared to $5.4 million, or 11 basis points of net interest margin, in the third quarter of 2020. In the fourth quarter of 2020, accretion income was 2.4% of adjusted total revenue.
•Interest collected on nonaccrual loans was $0.9 million, or 2 basis points of net interest margin, in the fourth quarter of 2020 compared to $1.0 million, or 2 basis point of net interest margin, in the third quarter of 2020.
•The cost of total deposits declined 4 basis points to 0.09% in the fourth quarter of 2020 while the cost of total interest-bearing deposits decreased 6 basis points to 0.13%.
CREDIT QUALITY
Strong credit quality remains a hallmark of the Old National franchise.
•Old National recorded a provision recapture in the fourth quarter of 2020 of $1.1 million, compared to no provision recorded in the third quarter.
•Net recoveries in the fourth quarter were $1.1 million, compared to net recoveries of $3.0 million in the third quarter.
•30-89 day delinquencies were 0.15% at the end of the fourth quarter.
•Non-performing loans increased as a percentage of total loans to 1.20%.
•Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of December 31, 2020, the remaining discount on these acquired loans was $50.6 million.
•The allowance for credit losses remained unchanged at $131.4 million, or 0.95% of total loans at December 31, 2020.
NONINTEREST INCOME
Noninterest income decreased due to lower securities gains and a seasonal decline in mortgage banking revenue.
•Total noninterest income for the fourth quarter of 2020 was $58.5 million, a decrease of $6.2 million from the third quarter of 2020.
•Mortgage banking revenue decreased $1.9 million when compared to the third quarter of 2020.
•Gains on sales of debt securities decreased $4.8 million when compared to the third quarter of 2020.
NONINTEREST EXPENSE
Fourth quarter results demonstrate benefit of The ONB Way, helping drive positive operating leverage1.
•Noninterest expense for the fourth quarter of 2020 was $142.3 million and included $3.6 million in ONB Way charges and $9.9 million in tax credit amortization.
•Excluding these items, adjusted noninterest expense for the fourth quarter was $128.8 million, compared to the $114.2 million in adjusted noninterest expense in the third quarter of 2020.
•The fourth quarter of 2020 also included $8.1 million in additional incentive compensation which is included in adjusted noninterest expense defined above.
•The fourth quarter efficiency ratio was 62.37%, while the adjusted efficiency ratio was 56.35%.
•Adjusted operating leverage1 was +917 basis points for the fourth quarter of 2020 as compared to the fourth quarter of 2019.
INCOME TAXES
•On a fully taxable-equivalent basis, income tax expense in the fourth quarter was $7.8 million, resulting in a 9.5% FTE tax rate.
•Income tax expense included $13.6 million in tax credit benefit.
CAPITAL AND LIQUIDITY
Capital ratios remain strong.
•At the end of the fourth quarter, preliminary total risk-based capital was 12.69% and preliminary regulatory tier 1 capital was 11.75%.
•Tangible common equity to tangible assets was 8.64% at the end of the fourth quarter compared to 8.58% in the third quarter of 2020.
•The Company did not repurchase any shares of common stock during the fourth quarter.
•A low loan to deposit ratio of 81.3%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.
NON-GAAP RECONCILIATIONS
| ($ in millions, except EPS, shares in 000s) | 4Q20 | Adjustments4 | Adjusted 4Q20 | |||
|---|---|---|---|---|---|---|
| Total Revenues (FTE) | $ | 223.1 | $ | (0.3) | $ | 222.8 |
| Less: Provision for Credit Losses | 1.1 | — | 1.1 | |||
| Less: Noninterest Expenses | (142.3) | 3.6 | (138.7) | |||
| Income before Income Taxes (FTE) | $ | 81.9 | $ | 3.3 | $ | 85.2 |
| Income Taxes | (7.8) | (0.8) | (8.6) | |||
| Net Income | $ | 74.1 | $ | 2.5 | $ | 76.6 |
| Average Shares Outstanding | 165,631 | — | 165,631 | |||
| Earnings Per Share - Diluted | $ | 0.44 | $ | 0.02 | $ | 0.46 |
4 Tax-effect calculations use the current statutory FTE tax rates (federal + state)
| ($ in millions, except EPS, shares in 000s) | 2020 | Adjustments4 | Adjusted 2020 | |||
|---|---|---|---|---|---|---|
| Total Revenues (FTE) | $ | 848.9 | $ | (10.8) | $ | 838.1 |
| Less: Provision for Credit Losses | (38.4) | — | (38.4) | |||
| Less: Noninterest Expenses | (541.4) | 42.6 | (498.8) | |||
| Income before Income Taxes (FTE) | $ | 269.1 | $ | 31.8 | $ | 300.9 |
| Income Taxes | (42.7) | (7.9) | (50.6) | |||
| Net Income | $ | 226.4 | $ | 23.9 | $ | 250.3 |
| Average Shares Outstanding | 166,177 | — | 166,177 | |||
| Earnings Per Share - Diluted | $ | 1.36 | $ | 0.14 | $ | 1.50 |
4 Tax-effect calculations use the current statutory FTE tax rates (federal + state)
| ($ in millions) | 4Q20 | 3Q20 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Interest Income | $ | 161.1 | $ | 145.6 | |||||||||||
| Add: FTE Adjustment | 3.5 | 3.4 | |||||||||||||
| Net Interest Income (FTE) | $ | 164.6 | $ | 149.0 | |||||||||||
| Average Earning Assets | $ | 20,182.0 | $ | 19,654.3 | |||||||||||
| Net Interest Margin (FTE) | 3.26 | % | 3.03 | % | ($ in millions) | 4Q20 | 4Q19 | ||||||||
| --- | --- | --- | --- | --- | |||||||||||
| Net Interest Income | $ | 161.1 | $ | 148.9 | |||||||||||
| Add: FTE Adjustment | 3.5 | 3.3 | |||||||||||||
| Net Interest Income (FTE) | $ | 164.6 | $ | 152.2 | |||||||||||
| Add: Total Noninterest Income | 58.5 | 47.7 | |||||||||||||
| Less: Noninterest Expense | 142.3 | 134.7 | |||||||||||||
| Pre-Provision Net Revenue | $ | 80.8 | $ | 65.2 | |||||||||||
| Less: Debt Securities Gains | (0.2) | (0.4) | |||||||||||||
| Less: Gain on Branch Actions | (0.1) | — | |||||||||||||
| Add: ONB Way Charges | 3.6 | 8.2 | |||||||||||||
| Add: Merger and Integration Charges | — | 0.2 | |||||||||||||
| Add: Amortization of Tax Credit Investments | 9.9 | 0.7 | |||||||||||||
| Adjusted Pre-Provision Net Revenue | $ | 94.0 | $ | 73.9 | |||||||||||
| ($ in millions) | 4Q20 | 3Q20 | 4Q19 | 2020 | 2019 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Noninterest Expense | $ | 142.3 | $ | 120.2 | $ | 134.7 | $ | 541.4 | $ | 508.5 | |||||
| Less: ONB Way Charges | (3.6) | (2.9) | (8.2) | (42.6) | (11.4) | ||||||||||
| Less: Merger and Integration Charges | — | — | (0.2) | — | (6.0) | ||||||||||
| Noninterest Expense less Charges | $ | 138.7 | $ | 117.3 | $ | 126.3 | $ | 498.8 | $ | 491.1 | |||||
| Less: Amortization of Tax Credit Investments | (9.9) | (3.1) | (0.7) | (18.8) | (2.7) | ||||||||||
| Adjusted Noninterest Expense | $ | 128.8 | $ | 114.2 | $ | 125.6 | $ | 480.0 | $ | 488.4 | |||||
| Less: Intangible Amortization | (3.3) | (3.4) | (3.9) | (14.1) | (16.9) | ||||||||||
| Adjusted Noninterest Expense Less Intangible Amortization | $ | 125.5 | $ | 110.8 | $ | 121.7 | $ | 465.9 | $ | 471.5 | |||||
| Net Interest Income | $ | 161.1 | $ | 145.6 | $ | 148.9 | $ | 596.1 | $ | 604.3 | |||||
| FTE Adjustment | 3.5 | 3.4 | 3.3 | 13.6 | 12.9 | ||||||||||
| Net Interest Income (FTE) | $ | 164.6 | $ | 149.0 | $ | 152.2 | $ | 609.7 | $ | 617.2 | |||||
| Total Noninterest Income | 58.5 | 64.7 | 47.7 | 239.2 | 199.3 | ||||||||||
| Total Revenue (FTE) | $ | 223.1 | $ | 213.7 | $ | 199.9 | $ | 848.9 | $ | 816.5 | |||||
| Less: Debt Securities Gains/Losses | (0.2) | (4.9) | (0.4) | (10.8) | (1.9) | ||||||||||
| Less: Gain on Branch Actions | (0.1) | — | — | — | — | ||||||||||
| Adjusted Total Revenue (FTE) | $ | 222.8 | $ | 208.8 | $ | 199.5 | $ | 838.1 | $ | 814.6 | |||||
| Efficiency Ratio | 62.37 | % | 55.93 | % | 65.57 | % | 62.91 | % | 60.35 | % | |||||
| Adjusted Efficiency Ratio | 56.35 | % | 53.06 | % | 60.97 | % | 55.59 | % | 57.87 | % | |||||
| Operating Leverage5 (basis points) | 598 | (251) | |||||||||||||
| Adjusted Operating Leverage6 (basis points) | 917 | 460 |
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) | 4Q20 | 3Q20 | ||||
|---|---|---|---|---|---|---|
| Net Income | $ | 74.1 | $ | 77.9 | ||
| Add: Intangible Amortization (net of tax7) | 2.4 | 2.6 | ||||
| Tangible Net Income | $ | 76.5 | $ | 80.5 | ||
| Less: Securities Gains/Losses (net of tax7) | (0.2) | (3.7) | ||||
| Add: Loss on Branch Actions (net of tax7) | (0.1) | — | ||||
| Add: ONB Way Charges (net of tax7) | 2.7 | 2.2 | ||||
| Adjusted Tangible Net Income | $ | 78.9 | $ | 79.0 | ||
| Average Total Shareholders’ Equity | 2,932.6 | 2,889.5 | ||||
| Less: Average Goodwill | (1,037.0) | (1,037.0) | ||||
| Less: Average Intangibles | (47.5) | (50.9) | ||||
| Average Tangible Shareholders’ Equity | $ | 1,848.1 | $ | 1,801.6 | ||
| Return on Average Tangible Common Equity | 16.57 | % | 17.88 | % | ||
| Adjusted Return on Average Tangible Common Equity | 17.08 | % | 17.54 | % |
7Tax-effect calculations use the current statutory FTE tax rates (federal + state)
CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, January 19, 2021, to review fourth-quarter 2020 financial results. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. A replay of the call will also be available from Noon Central Time on January 19 through February 2. To access the replay, dial 1-855-859-2056, Conference ID Code 6389837.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $23.0 billion in assets, it ranks among the top 100 banking companies in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for nine consecutive years. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships and keeping our clients at the center of all we do. This is an approach to business that we call The ONB Way. Today, Old National’s footprint includes Indiana, Kentucky, Michigan, Minnesota and Wisconsin. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.
USE OF NON-GAAP FINANCIAL MEASURES
This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
FORWARD-LOOKING STATEMENT
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, descriptions of Old National Bancorp’s (“Old National’s”) financial condition, results of operations, asset and credit quality trends and profitability. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties, such as statements about the potential impacts of the COVID-19 pandemic. There are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses; market, economic, operational, liquidity, credit and interest rate risks associated with Old National’s business (including developments and volatility arising from the COVID-19 pandemic); competition; heightened regulatory and governmental oversight and scrutiny of Old National's business practices; current, pending or future government legislation and policies (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations); ability of Old National to execute its business plan, including the anticipated impact from the ONB Way strategic plan that may differ from current estimates; changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; failure or disruption of our information systems; significant changes in accounting, tax or regulatory practices or requirements, including the impact of the CECL standard as well as changes to address the impact of COVID-19; new legal obligations or liabilities or unfavorable resolutions of litigations; disruptive technologies in payment systems and other services traditionally provided by banks; computer hacking and other cybersecurity threats; other matters discussed in this press release; and other factors identified in our Annual Report on Form 10-K and other periodic filings with the SEC. These forward-looking statements are made only as of the date of this press release, and Old National does not undertake an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.
| Financial Highlights (unaudited) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ( and shares in thousands, except per share data) | |||||||||||||||
| Twelve Months Ended | |||||||||||||||
| September 30, | December 31, | December 31, | December 31, | ||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Income Statement | |||||||||||||||
| Net interest income | 161,079 | $ | 145,573 | $ | 148,899 | $ | 596,094 | $ | 604,273 | ||||||
| Tax equivalent adjustment (1) | 3,379 | 3,282 | 13,586 | 12,940 | |||||||||||
| Net interest income - tax equivalent basis | 148,952 | 152,181 | 609,680 | 617,213 | |||||||||||
| Provision for loan losses (4) | — | 1,264 | 38,395 | 4,747 | |||||||||||
| Noninterest income | 64,759 | 47,726 | 239,274 | 199,317 | |||||||||||
| Noninterest expense | 120,234 | 134,743 | 541,417 | 508,487 | |||||||||||
| Net income | 77,944 | 49,185 | 226,409 | 238,206 | |||||||||||
| Per Common Share Data | |||||||||||||||
| Weighted average diluted shares | 165,419 | 170,186 | 166,177 | 172,687 | |||||||||||
| Net income (diluted) | 0.44 | $ | 0.47 | $ | 0.29 | $ | 1.36 | $ | 1.38 | ||||||
| Cash dividends | 0.14 | 0.13 | 0.56 | 0.52 | |||||||||||
| Common dividend payout ratio (2) | % | 30 | % | 45 | % | 41 | % | 37 | % | ||||||
| Book value | 17.98 | $ | 17.67 | $ | 16.82 | $ | 17.98 | $ | 16.82 | ||||||
| Stock price | 12.56 | 18.29 | 16.56 | 18.29 | |||||||||||
| Tangible common book value (3) | 11.10 | 10.35 | 11.43 | 10.35 | |||||||||||
| Performance Ratios | |||||||||||||||
| Return on average assets | % | 1.40 | % | 0.97 | % | 1.04 | % | 1.19 | % | ||||||
| Return on average common equity | % | 10.79 | % | 6.94 | % | 7.87 | % | 8.57 | % | ||||||
| Return on tangible common equity (3) | % | 17.56 | % | 11.89 | % | 12.54 | % | 14.30 | % | ||||||
| Return on average tangible common equity (3) | % | 17.88 | % | 12.03 | % | 13.27 | % | 14.97 | % | ||||||
| Net interest margin (FTE) | % | 3.03 | % | 3.46 | % | 3.18 | % | 3.55 | % | ||||||
| Efficiency ratio (5) | % | 55.93 | % | 65.57 | % | 62.91 | % | 60.35 | % | ||||||
| Net charge-offs (recoveries) to average loans | % | (0.09) | % | 0.12 | % | 0.02 | % | 0.05 | % | ||||||
| Allowance for loan losses to ending loans (4) | % | 0.95 | % | 0.45 | % | 0.95 | % | 0.45 | % | ||||||
| Non-performing loans to ending loans | % | 1.15 | % | 1.19 | % | 1.20 | % | 1.19 | % | ||||||
| Balance Sheet (EOP) | |||||||||||||||
| Total loans | 13,786,479 | $ | 13,892,509 | $ | 12,117,524 | $ | 13,786,479 | $ | 12,117,524 | ||||||
| Total assets | 22,460,476 | 20,411,667 | 22,960,622 | 20,411,667 | |||||||||||
| Total deposits | 16,506,494 | 14,553,397 | 17,037,453 | 14,553,397 | |||||||||||
| Total borrowed funds | 2,725,731 | 2,744,728 | 2,676,554 | 2,744,728 | |||||||||||
| Total shareholders' equity | 2,921,149 | 2,852,453 | 2,972,656 | 2,852,453 | |||||||||||
| Capital Ratios (3) | |||||||||||||||
| Risk-based capital ratios (EOP): | |||||||||||||||
| Tier 1 common equity | % | 11.84 | % | 12.13 | % | 11.75 | % | 12.13 | % | ||||||
| Tier 1 | % | 11.84 | % | 12.13 | % | 11.75 | % | 12.13 | % | ||||||
| Total | % | 12.81 | % | 12.99 | % | 12.69 | % | 12.99 | % | ||||||
| Leverage ratio (to average assets) | % | 8.15 | % | 8.88 | % | 8.20 | % | 8.88 | % | ||||||
| Total equity to assets (averages) | % | 12.97 | % | 14.01 | % | 13.20 | % | 13.88 | % | ||||||
| Tangible common equity to tangible assets | % | 8.58 | % | 9.09 | % | 8.64 | % | 9.09 | % | ||||||
| Nonfinancial Data | |||||||||||||||
| Full-time equivalent employees | 2,484 | 2,709 | 2,445 | 2,709 | |||||||||||
| Banking centers | 162 | 192 | 162 | 192 | |||||||||||
| (1) Calculated using the federal statutory tax rate in effect of 21% for all periods. | |||||||||||||||
| (2) Cash dividends per share divided by net income per share (basic). | |||||||||||||||
| (3) Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. December 31, 2020 capital ratios are preliminary. | |||||||||||||||
| (4) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. | |||||||||||||||
| (5) Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and | |||||||||||||||
| noninterest revenues, excluding net gains from debt securities transactions. This presentation excludes amortization of intangibles | |||||||||||||||
| and net debt securities gains, as is common in other company releases, and better aligns with true operating performance. | |||||||||||||||
| FTE - Fully taxable equivalent basis EOP - End of period actual balances | N/A - Not applicable |
All values are in US Dollars.
| Income Statement (unaudited) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ( and shares in thousands, except per share data) | |||||||||
| Twelve Months Ended | |||||||||
| September 30, | December 31, | December 31, | December 31, | ||||||
| 2020 | 2019 | 2020 | 2019 | ||||||
| Interest income | 173,249 | $ | 160,086 | $ | 176,553 | $ | 663,308 | $ | 730,387 |
| Less: interest expense | 14,513 | 27,654 | 67,214 | 126,114 | |||||
| Net interest income | 145,573 | 148,899 | 596,094 | 604,273 | |||||
| Provision for loan losses (1) | — | 1,264 | 38,395 | 4,747 | |||||
| Net interest income after provision for loan losses | 145,573 | 147,635 | 557,699 | 599,526 | |||||
| Wealth management fees | 9,239 | 9,468 | 36,806 | 37,072 | |||||
| Service charges on deposit accounts | 8,698 | 10,714 | 35,081 | 44,915 | |||||
| Debit card and ATM fees | 5,276 | 5,360 | 20,178 | 21,652 | |||||
| Mortgage banking revenue | 18,110 | 5,626 | 62,775 | 26,622 | |||||
| Investment product fees | 5,351 | 5,679 | 21,614 | 21,785 | |||||
| Capital markets income | 5,428 | 3,043 | 22,480 | 13,270 | |||||
| Company-owned life insurance | 2,830 | 2,937 | 12,031 | 11,539 | |||||
| Other income | 4,906 | 4,462 | 17,542 | 20,539 | |||||
| Gains (losses) on sales of debt securities | 4,921 | 437 | 10,767 | 1,923 | |||||
| Total noninterest income | 64,759 | 47,726 | 239,274 | 199,317 | |||||
| Salaries and employee benefits | 69,860 | 74,974 | 293,590 | 289,452 | |||||
| Occupancy | 13,930 | 14,184 | 55,316 | 55,255 | |||||
| Equipment | 3,754 | 3,958 | 16,690 | 16,903 | |||||
| Marketing | 2,140 | 3,631 | 10,874 | 15,898 | |||||
| Data processing | 9,628 | 9,080 | 41,086 | 37,589 | |||||
| Communication | 2,241 | 2,450 | 9,731 | 10,702 | |||||
| Professional fees | 3,083 | 9,986 | 15,755 | 22,854 | |||||
| FDIC assessment | 1,319 | 1,529 | 6,722 | 6,030 | |||||
| Amortization of intangibles | 3,459 | 3,946 | 14,091 | 16,911 | |||||
| Amortization of tax credit investments | 3,115 | 710 | 18,788 | 2,749 | |||||
| Other expense | 7,705 | 10,295 | 58,774 | 34,144 | |||||
| Total noninterest expense | 120,234 | 134,743 | 541,417 | 508,487 | |||||
| Income before income taxes | 90,098 | 60,618 | 255,556 | 290,356 | |||||
| Income tax expense | 12,154 | 11,433 | 29,147 | 52,150 | |||||
| Net income | 74,120 | $ | 77,944 | $ | 49,185 | $ | 226,409 | $ | 238,206 |
| Diluted Earnings Per Share | |||||||||
| Net income | 0.44 | $ | 0.47 | $ | 0.29 | $ | 1.36 | $ | 1.38 |
| Average Common Shares Outstanding | |||||||||
| Basic | 164,773 | 169,235 | 165,509 | 171,907 | |||||
| Diluted | 165,419 | 170,186 | 166,177 | 172,687 | |||||
| Common shares outstanding at end of period | 165,333 | 169,616 | 165,367 | 169,616 | |||||
| (1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. |
All values are in US Dollars.
| Balance Sheet (unaudited) | |||||
|---|---|---|---|---|---|
| ( in thousands) | |||||
| September 30, | December 31, | ||||
| 2020 | 2019 | ||||
| Assets | |||||
| Federal Reserve Bank account | 307,967 | $ | 87,682 | $ | 29,141 |
| Money market investments | 13,437 | 12,430 | |||
| Investments: | |||||
| Treasury and government-sponsored agencies | 501,771 | 610,666 | |||
| Mortgage-backed securities | 3,382,280 | 3,183,861 | |||
| States and political subdivisions | 1,426,495 | 1,275,643 | |||
| Other securities | 462,958 | 485,862 | |||
| Total investments | 5,773,504 | 5,556,032 | |||
| Loans held for sale, at fair value | 85,091 | 46,898 | |||
| Loans: | |||||
| Commercial | 4,264,568 | 2,890,296 | |||
| Commercial and agriculture real estate | 5,701,493 | 5,166,792 | |||
| Consumer: | |||||
| Home equity | 549,115 | 559,021 | |||
| Other consumer loans | 1,112,034 | 1,167,126 | |||
| Subtotal of commercial and consumer loans | 11,627,210 | 9,783,235 | |||
| Residential real estate | 2,265,299 | 2,334,289 | |||
| Total loans | 13,892,509 | 12,117,524 | |||
| Total earning assets | 19,852,223 | 17,762,025 | |||
| Allowance for loan losses (1) | (131,388) | (54,619) | |||
| Non-earning Assets: | |||||
| Cash and due from banks | 229,631 | 234,766 | |||
| Premises and equipment, net | 463,253 | 490,925 | |||
| Operating lease right-of-use assets | 77,482 | 95,477 | |||
| Goodwill and other intangible assets | 1,086,252 | 1,097,099 | |||
| Company-owned life insurance | 455,975 | 448,967 | |||
| Other assets | 427,048 | 337,027 | |||
| Total non-earning assets | 2,739,641 | 2,704,261 | |||
| Total assets | 22,960,622 | $ | 22,460,476 | $ | 20,411,667 |
| Liabilities and Equity | |||||
| Noninterest-bearing demand deposits | 5,633,672 | $ | 5,463,007 | $ | 4,042,286 |
| Interest-bearing: | |||||
| Checking and NOW accounts | 4,588,432 | 4,149,639 | |||
| Savings accounts | 3,287,302 | 2,845,423 | |||
| Money market accounts | 1,904,404 | 1,833,819 | |||
| Other time deposits | 1,206,658 | 1,589,988 | |||
| Total core deposits | 16,449,803 | 14,461,155 | |||
| Brokered deposits | 56,691 | 92,242 | |||
| Total deposits | 16,506,494 | 14,553,397 | |||
| Federal funds purchased and interbank borrowings | 1,259 | 350,414 | |||
| Securities sold under agreements to repurchase | 399,141 | 327,782 | |||
| Federal Home Loan Bank advances | 2,087,648 | 1,822,847 | |||
| Other borrowings | 237,683 | 243,685 | |||
| Total borrowed funds | 2,725,731 | 2,744,728 | |||
| Operating lease liabilities | 88,552 | 99,500 | |||
| Accrued expenses and other liabilities | 218,550 | 161,589 | |||
| Total liabilities | 19,539,327 | 17,559,214 | |||
| Common stock, surplus, and retained earnings | 2,771,865 | 2,796,246 | |||
| Accumulated other comprehensive income (loss), net of tax | 149,284 | 56,207 | |||
| Total shareholders' equity | 2,921,149 | 2,852,453 | |||
| Total liabilities and shareholders' equity | 22,960,622 | $ | 22,460,476 | $ | 20,411,667 |
| (1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. |
All values are in US Dollars.
| Average Balance Sheet and Interest Rates (unaudited) | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ( in thousands) | |||||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||
| September 30, 2020 | December 31, 2019 | ||||||||||||||||
| Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | ||||||||||
| Earning Assets: | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||
| Money market and other interest-earning | |||||||||||||||||
| investments | 413,782 | $ | 126 | 0.12 | % | $ | 137,880 | $ | 59 | 0.17 | % | $ | 87,835 | $ | 530 | 2.39 | % |
| Investments: | |||||||||||||||||
| Treasury and government-sponsored agencies | 2,937 | 1.81 | % | 454,005 | 2,457 | 2.17 | % | 546,266 | 3,547 | 2.60 | % | ||||||
| Mortgage-backed securities | 16,137 | 1.96 | % | 3,342,284 | 17,478 | 2.09 | % | 3,172,818 | 18,844 | 2.38 | % | ||||||
| States and political subdivisions | 12,008 | 3.34 | % | 1,383,765 | 11,860 | 3.43 | % | 1,211,850 | 11,133 | 3.67 | % | ||||||
| Other securities | 2,629 | 2.27 | % | 487,405 | 2,922 | 2.40 | % | 489,889 | 3,585 | 2.93 | % | ||||||
| Total investments | 33,711 | 2.31 | % | 5,667,459 | 34,717 | 2.45 | % | 5,420,823 | 37,109 | 2.74 | % | ||||||
| Loans: (2) | |||||||||||||||||
| Commercial | 46,468 | 4.40 | % | 4,274,894 | 33,223 | 3.04 | % | 2,891,641 | 31,925 | 4.32 | % | ||||||
| Commercial and agriculture real estate | 58,334 | 3.92 | % | 5,546,486 | 55,891 | 3.94 | % | 5,129,638 | 66,959 | 5.11 | % | ||||||
| Consumer: | |||||||||||||||||
| Home equity | 4,380 | 3.17 | % | 551,380 | 4,336 | 3.13 | % | 561,125 | 6,426 | 4.54 | % | ||||||
| Other consumer loans | 11,276 | 4.08 | % | 1,120,681 | 11,635 | 4.13 | % | 1,153,924 | 12,245 | 4.21 | % | ||||||
| Subtotal commercial and consumer loans | 120,458 | 4.13 | % | 11,493,441 | 105,085 | 3.64 | % | 9,736,328 | 117,555 | 4.79 | % | ||||||
| Residential real estate loans | 22,471 | 3.88 | % | 2,355,512 | 23,604 | 4.01 | % | 2,332,835 | 24,641 | 4.23 | % | ||||||
| Total loans | 142,929 | 4.04 | % | 13,848,953 | 128,689 | 3.66 | % | 12,069,163 | 142,196 | 4.64 | % | ||||||
| Total earning assets | 20,181,991 | $ | 176,766 | 3.46 | % | $ | 19,654,292 | $ | 163,465 | 3.29 | % | $ | 17,577,821 | $ | 179,835 | 4.05 | % |
| Less: Allowance for loan losses (3) | (132,447) | (57,162) | |||||||||||||||
| Non-earning Assets: | |||||||||||||||||
| Cash and due from banks | 341,154 | $ | 346,343 | $ | 278,324 | ||||||||||||
| Other assets | 2,405,517 | 2,419,792 | |||||||||||||||
| Total assets | 22,864,859 | $ | 22,273,705 | $ | 20,218,775 | ||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||
| Checking and NOW accounts | 4,708,568 | $ | 629 | 0.05 | % | $ | 4,607,427 | $ | 886 | 0.08 | % | $ | 4,121,021 | $ | 3,812 | 0.37 | % |
| Savings accounts | 487 | 0.06 | % | 3,232,375 | 634 | 0.08 | % | 2,842,996 | 1,586 | 0.22 | % | ||||||
| Money market accounts | 445 | 0.09 | % | 1,902,407 | 724 | 0.15 | % | 1,839,258 | 3,558 | 0.77 | % | ||||||
| Other time deposits | 2,189 | 0.75 | % | 1,253,058 | 2,852 | 0.91 | % | 1,642,773 | 6,101 | 1.47 | % | ||||||
| Total interest-bearing core deposits | 3,750 | 0.13 | % | 10,995,267 | 5,096 | 0.18 | % | 10,446,048 | 15,057 | 0.57 | % | ||||||
| Brokered deposits | 26 | 0.28 | % | 150,545 | 201 | 0.53 | % | 109,504 | 637 | 2.31 | % | ||||||
| Total interest-bearing deposits | 3,776 | 0.13 | % | 11,145,812 | 5,297 | 0.19 | % | 10,555,552 | 15,694 | 0.59 | % | ||||||
| Federal funds purchased and interbank borrowings | — | 0.03 | % | 18,347 | 12 | 0.25 | % | 95,973 | 437 | 1.80 | % | ||||||
| Securities sold under agreements to repurchase | 125 | 0.11 | % | 385,149 | 160 | 0.16 | % | 337,786 | 469 | 0.55 | % | ||||||
| Federal Home Loan Bank advances | 5,953 | 1.13 | % | 2,021,468 | 6,709 | 1.32 | % | 1,843,357 | 8,359 | 1.80 | % | ||||||
| Other borrowings | 2,316 | 3.85 | % | 237,811 | 2,335 | 3.93 | % | 251,565 | 2,695 | 4.29 | % | ||||||
| Total borrowed funds | 8,394 | 1.21 | % | 2,662,775 | 9,216 | 1.38 | % | 2,528,681 | 11,960 | 1.88 | % | ||||||
| Total interest-bearing liabilities | 12,170 | 0.35 | % | 13,808,587 | 14,513 | 0.42 | % | 13,084,233 | 27,654 | 0.84 | % | ||||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | |||||||||||||||||
| Demand deposits | 5,644,017 | $ | 5,291,037 | $ | 4,047,308 | ||||||||||||
| Other liabilities | 284,536 | 254,296 | |||||||||||||||
| Shareholders' equity | 2,889,545 | 2,832,938 | |||||||||||||||
| Total liabilities and shareholders' equity | 22,864,859 | $ | 22,273,705 | $ | 20,218,775 | ||||||||||||
| Net interest rate spread | 3.11 | % | 2.87 | % | 3.21 | % | |||||||||||
| Net interest margin (FTE) | 3.26 | % | 3.03 | % | 3.46 | % | |||||||||||
| FTE adjustment | $ | 3,517 | $ | 3,379 | $ | 3,282 | |||||||||||
| (1) Interest income is reflected on a fully taxable equivalent basis (FTE). | |||||||||||||||||
| (2) Includes loans held for sale. | |||||||||||||||||
| (3) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. |
All values are in US Dollars.
| Average Balance Sheet and Interest Rates (unaudited) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ( in thousands) | |||||||||||
| Twelve Months Ended | |||||||||||
| December 31, 2019 | |||||||||||
| Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | |||||||
| Earning Assets: | Expense | Rate | Balance | Expense | Rate | ||||||
| Money market and other interest-earning | |||||||||||
| investments | 174,494 | $ | 568 | 0.33 | % | $ | 67,069 | $ | 1,670 | 2.49 | % |
| Investments: | |||||||||||
| Treasury and government-sponsored agencies | 12,124 | 2.22 | % | 657,233 | 16,091 | 2.45 | % | ||||
| Mortgage-backed securities | 70,611 | 2.17 | % | 2,866,600 | 73,835 | 2.58 | % | ||||
| States and political subdivisions | 47,034 | 3.49 | % | 1,202,210 | 44,716 | 3.72 | % | ||||
| Other securities | 11,990 | 2.47 | % | 495,847 | 16,138 | 3.25 | % | ||||
| Total investments | 5,626,494 | $ | 141,759 | 2.52 | % | $ | 5,221,890 | $ | 150,780 | 2.89 | % |
| Loans: (2) | |||||||||||
| Commercial | 140,473 | 3.66 | % | 3,023,421 | 141,215 | 4.67 | % | ||||
| Commercial and agriculture real estate | 234,670 | 4.28 | % | 5,044,623 | 275,853 | 5.47 | % | ||||
| Consumer: | |||||||||||
| Home equity | 18,561 | 3.35 | % | 566,232 | 28,515 | 5.04 | % | ||||
| Other consumer loans | 46,661 | 4.13 | % | 1,180,898 | 48,681 | 4.12 | % | ||||
| Subtotal commercial and consumer loans | 440,365 | 4.00 | % | 9,815,174 | 494,264 | 5.04 | % | ||||
| Residential real estate loans | 94,202 | 4.00 | % | 2,281,047 | 96,613 | 4.24 | % | ||||
| Total loans | 534,567 | 4.00 | % | 12,096,221 | 590,877 | 4.88 | % | ||||
| Total earning assets | 19,158,681 | $ | 676,894 | 3.53 | % | $ | 17,385,180 | $ | 743,327 | 4.28 | % |
| Less: Allowance for loan losses (3) | (56,624) | ||||||||||
| Non-earning Assets: | |||||||||||
| Cash and due from banks | 327,053 | $ | 251,857 | ||||||||
| Other assets | 2,453,001 | ||||||||||
| Total assets | 21,785,015 | $ | 20,033,414 | ||||||||
| Interest-Bearing Liabilities: | |||||||||||
| Checking and NOW accounts | 4,464,027 | $ | 5,449 | 0.12 | % | $ | 3,902,765 | $ | 15,598 | 0.40 | % |
| Savings accounts | 3,156 | 0.10 | % | 2,878,135 | 8,142 | 0.28 | % | ||||
| Money market accounts | 4,585 | 0.25 | % | 1,789,065 | 14,130 | 0.79 | % | ||||
| Other time deposits | 14,013 | 1.05 | % | 1,748,552 | 27,400 | 1.57 | % | ||||
| Total interest-bearing core deposits | 27,203 | 0.25 | % | 10,318,517 | 65,270 | 0.63 | % | ||||
| Brokered deposits | 966 | 1.14 | % | 173,439 | 4,094 | 2.36 | % | ||||
| Total interest-bearing deposits | 28,169 | 0.26 | % | 10,491,956 | 69,364 | 0.66 | % | ||||
| Federal funds purchased and interbank borrowings | 1,296 | 0.94 | % | 241,618 | 5,656 | 2.34 | % | ||||
| Securities sold under agreements to repurchase | 854 | 0.23 | % | 342,654 | 2,517 | 0.73 | % | ||||
| Federal Home Loan Bank advances | 27,274 | 1.33 | % | 1,775,987 | 37,452 | 2.11 | % | ||||
| Other borrowings | 9,621 | 3.96 | % | 251,194 | 11,125 | 4.43 | % | ||||
| Total borrowed funds | 39,045 | 1.39 | % | 2,611,453 | 56,750 | 2.17 | % | ||||
| Total interest-bearing liabilities | 67,214 | 0.49 | % | 13,103,409 | 126,114 | 0.96 | % | ||||
| Noninterest-Bearing Liabilities and Shareholders' Equity | |||||||||||
| Demand deposits | 4,945,506 | $ | 3,887,470 | ||||||||
| Other liabilities | 261,403 | ||||||||||
| Shareholders' equity | 2,781,132 | ||||||||||
| Total liabilities and shareholders' equity | 21,785,015 | $ | 20,033,414 | ||||||||
| Net interest rate spread | 3.04 | % | 3.32 | % | |||||||
| Net interest margin (FTE) | 3.18 | % | 3.55 | % | |||||||
| FTE adjustment | $ | 13,586 | $ | 12,940 | |||||||
| (1) Interest income is reflected on a fully taxable equivalent basis (FTE). | |||||||||||
| (2) Includes loans held for sale. | |||||||||||
| (3) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. |
All values are in US Dollars.
| Asset Quality (EOP) (unaudited) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ( in thousands) | ||||||||||||||
| Twelve Months Ended | ||||||||||||||
| September 30, | December 31, | December 31, | December 31, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||
| Beginning allowance for loan losses | 131,388 | $ | 128,394 | $ | 56,910 | $ | 54,619 | $ | 55,461 | |||||
| Impact of adopting ASC 326 on 1/1/2020 (1) | — | N/A | 41,347 | N/A | ||||||||||
| Provision for loan losses (1) | — | 1,264 | 38,395 | 4,747 | ||||||||||
| Gross charge-offs | (4,169) | (6,304) | (15,553) | (14,789) | ||||||||||
| Gross recoveries | 7,163 | 2,749 | 12,580 | 9,200 | ||||||||||
| Net (charge-offs) recoveries | 2,994 | (3,555) | (2,973) | (5,589) | ||||||||||
| Ending allowance for loan losses (1) | 131,388 | $ | 131,388 | $ | 54,619 | $ | 131,388 | $ | 54,619 | |||||
| Net charge-offs (recoveries) / average loans (2) | % | (0.09) | % | 0.12 | % | 0.02 | % | 0.05 | % | |||||
| Average loans outstanding (2) | 13,910,145 | $ | 13,827,019 | $ | 12,058,109 | $ | 13,341,677 | $ | 12,087,429 | |||||
| EOP loans outstanding (2) | 13,892,509 | 12,117,524 | 13,786,479 | 12,117,524 | ||||||||||
| Allowance for loan losses / EOP loans (1)(2) | % | 0.95 | % | 0.45 | % | 0.95 | % | 0.45 | % | |||||
| Underperforming Assets: | ||||||||||||||
| Loans 90 Days and over (still accruing) | 167 | $ | 90 | $ | 570 | $ | 167 | $ | 570 | |||||
| Non-performing loans: | ||||||||||||||
| Nonaccrual loans (3) | 137,611 | 126,412 | 147,339 | 126,412 | ||||||||||
| TDRs still accruing | 22,037 | 18,338 | 17,749 | 18,338 | ||||||||||
| Total non-performing loans | 159,648 | 144,750 | 165,088 | 144,750 | ||||||||||
| Foreclosed properties | 1,248 | 2,169 | 1,324 | 2,169 | ||||||||||
| Total underperforming assets | 166,579 | $ | 160,986 | $ | 147,489 | $ | 166,579 | $ | 147,489 | |||||
| Classified and Criticized Assets: | ||||||||||||||
| Nonaccrual loans (3) | 137,611 | 126,412 | 147,339 | 126,412 | ||||||||||
| Substandard accruing loans | 189,524 | 169,689 | 157,276 | 169,689 | ||||||||||
| Loans 90 days and over (still accruing) | 90 | 570 | 167 | 570 | ||||||||||
| Total classified loans - "problem loans" | 304,782 | $ | 327,225 | $ | 296,671 | $ | 304,782 | $ | 296,671 | |||||
| Other classified assets | 3,860 | 2,933 | 3,706 | 2,933 | ||||||||||
| Criticized loans - "special mention loans" | 272,859 | 234,841 | 287,192 | 234,841 | ||||||||||
| Total classified and criticized assets | 595,680 | $ | 603,944 | $ | 534,445 | $ | 595,680 | $ | 534,445 | |||||
| Non-performing loans / EOP loans (2) | % | 1.15 | % | 1.19 | % | 1.20 | % | 1.19 | % | |||||
| Allowance to non-performing loans (1)(4) | % | 82 | % | 38 | % | 80 | % | 38 | % | |||||
| Under-performing assets / EOP loans (2) | % | 1.16 | % | 1.22 | % | 1.21 | % | 1.22 | % | |||||
| EOP total assets | 22,960,622 | $ | 22,460,476 | $ | 20,411,667 | $ | 22,960,622 | $ | 20,411,667 | |||||
| Under-performing assets / EOP assets | % | 0.72 | % | 0.72 | % | 0.73 | % | 0.72 | % | |||||
| EOP - End of period actual balances | ||||||||||||||
| (1) Beginning January 1, 2020, calculation is based on current expected loss methodology. Prior to January 1, 2020, calculation was based on incurred loss methodology. | ||||||||||||||
| (2) Excludes loans held for sale. | ||||||||||||||
| (3) Includes non-accruing TDRs totaling 14.9 million at December 31, 2020, 7.7 million at September 30, 2020, and 13.8 million at December 31, 2019. | ||||||||||||||
| (4) 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 for 2019 quarter ends. |
All values are in US Dollars.
| Non-GAAP Measures (unaudited) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ( in thousands) | |||||||||
| Twelve Months Ended | |||||||||
| September 30, | December 31, | December 31, | December 31, | ||||||
| 2020 | 2019 | 2020 | 2019 | ||||||
| Actual End of Period Balances | |||||||||
| GAAP shareholders' equity | |||||||||
| Deduct: | |||||||||
| Goodwill | 1,036,994 | 1,036,994 | 1,036,994 | 1,036,994 | |||||
| Intangibles | 49,258 | 60,105 | 46,014 | 60,105 | |||||
| 1,086,252 | 1,097,099 | 1,083,008 | 1,097,099 | ||||||
| Tangible shareholders' equity | |||||||||
| Average Balances | |||||||||
| GAAP shareholders' equity | |||||||||
| Deduct: | |||||||||
| Goodwill | 1,036,994 | 1,036,994 | 1,036,994 | 1,036,456 | |||||
| Intangibles | 50,926 | 61,963 | 52,740 | 68,244 | |||||
| 1,087,920 | 1,098,957 | 1,089,734 | 1,104,700 | ||||||
| Average tangible shareholders' equity | |||||||||
| Actual End of Period Balances | |||||||||
| GAAP assets | |||||||||
| Add: | |||||||||
| Trust overdrafts | 17 | 31 | 26 | 31 | |||||
| Deduct: | |||||||||
| Goodwill | 1,036,994 | 1,036,994 | 1,036,994 | 1,036,994 | |||||
| Intangibles | 49,258 | 60,105 | 46,014 | 60,105 | |||||
| 1,086,252 | 1,097,099 | 1,083,008 | 1,097,099 | ||||||
| Tangible assets | |||||||||
| Risk-weighted assets (2) | |||||||||
| GAAP net income | |||||||||
| Add: | |||||||||
| Amortization of intangibles (net of tax) | 2,595 | 2,976 | 10,585 | 12,756 | |||||
| Tangible net income | |||||||||
| Tangible Ratios | |||||||||
| Return on tangible common equity | % | 17.56 | % | 11.89 | % | 12.54 | % | 14.30 | % |
| Return on average tangible common equity | % | 17.88 | % | 12.03 | % | 13.27 | % | 14.97 | % |
| Return on tangible assets | % | 1.51 | % | 1.08 | % | 1.08 | % | 1.30 | % |
| Tangible common equity to tangible assets | % | 8.58 | % | 9.09 | % | 8.64 | % | 9.09 | % |
| Tangible common equity to risk-weighted assets (2) | % | 12.42 | % | 12.47 | % | 12.30 | % | 12.47 | % |
| Tangible common book value (1) | 11.10 | 10.35 | 11.43 | 10.35 | |||||
| Tangible common equity presentation includes other comprehensive income as is common in other company releases. | |||||||||
| (1) Tangible common shareholders' equity divided by common shares issued and outstanding at period-end. | |||||||||
| Tier 1 common equity (2) | 1,748,150 | 1,706,727 | 1,805,194 | 1,706,727 | |||||
| Risk-weighted assets (2) | 14,770,750 | 14,073,929 | 15,369,076 | 14,073,929 | |||||
| Tier 1 common equity to risk-weighted assets (2) | % | 11.84 | % | 12.13 | % | 11.75 | % | 12.13 | % |
| (2) December 31, 2020 figures are preliminary. |
All values are in US Dollars.