Old National Bancorp Reports Third Quarter 2024 Results

ソース: Nasdaq GlobeNewswire / 22 10 2024 06:30:48 America/Chicago

EVANSVILLE, Ind., Oct. 22, 2024 (GLOBE NEWSWIRE) --

Old National Bancorp (NASDAQ: ONB) reports 3Q24 net income applicable to common shares of $139.8 million, diluted EPS of $0.44; $147.2 million and $0.46 on an adjusted¹ basis, respectively.

CEO COMMENTARY:

"Old National’s strong 3rd quarter was driven by a focus on our fundamentals: continuing to grow deposits and loans, effectively managing both credit and capital, and creating positive operating leverage through disciplined expense management," said Chairman and CEO Jim Ryan. "As a result of our ability to execute on this fundamental strategy, we find ourselves well positioned to continue to invest in new markets while attracting exceptional talent to our franchise."

THIRD QUARTER HIGHLIGHTS²:

Net Income	Net income applicable to common shares of $139.8 million; adjusted net income applicable to common shares¹ of $147.2 million
Net Income	Earnings per diluted common share ("EPS") of $0.44; adjusted EPS¹ of $0.46

Net Interest Income/NIM	Net interest income on a fully taxable equivalent basis¹ of $397.9 million
Net Interest Income/NIM	Net interest margin on a fully taxable equivalent basis¹ ("NIM") of 3.32%, down 1 basis point ("bp")

Operating Performance	Pre-provision net revenue¹ (“PPNR”) of $219.7 million; adjusted PPNR¹ of $229.3 million
	Noninterest expense of $272.3 million; adjusted noninterest expense¹ of $262.8 million
	Efficiency ratio¹ of 53.8%; adjusted efficiency ratio¹of 51.2%

Deposits and Funding	Period-end total deposits of $40.8 billion, up $0.8 billion; core deposits up $1.0 billion
Deposits and Funding	Granular low-cost deposit franchise; total deposit costs of 225 bps

Loans and Credit Quality	End-of-period total loans³ of $36.5 billion, up 2.7% annualized
	Provision for credit losses⁴ ("provision") of $28.5 million
	Net charge-offs of $17.5 million, or 19 bps of average loans; 16 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
	30+ day delinquencies of 0.26% and non-performing loans of 1.22% of total loans

Return Profile & Capital	Return on average tangible common equity¹ of 16.0%; adjusted return on average tangible common equity¹ of 16.8%
Return Profile & Capital	Tangible common equity to tangible assets¹ of 7.4%, up 7.2%

Notable Items	$6.9 million of pre-tax merger-related charges $2.6 million of pre-tax separation expense⁵

¹Non-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 ²Comparisons are on a linked-quarter basis, unless otherwise noted ³Includes loans held-for-sale ⁴Includes the provision for unfunded commitments ⁵Expense associated with a mutual separation agreement with a former Old National executive

RESULTS OF OPERATIONS²
Old National Bancorp ("Old National") reported third quarter 2024 net income applicable to common shares of $139.8 million, or $0.44 per diluted common share.

Included in third quarter results were pre-tax charges of $6.9 million primarily related to the April 1, 2024 acquisition of CapStar Financial Holdings, Inc. ("CapStar") and $2.6 million of pre-tax separation expense⁵. Excluding these transactions and realized debt securities gains from the current quarter, adjusted net income¹ was $147.2 million, or $0.46 per diluted common share.

DEPOSITS AND FUNDING
Growth in deposits driven by increases in commercial and community deposits and normal seasonal patterns in public funds, partially offset by lower brokered deposits.

Period-end total deposits were $40.8 billion, up 8.5% annualized; core deposits up 10.1% annualized.
On average, total deposits for the third quarter were $40.6 billion, up 4.8% annualized.
Granular low-cost deposit franchise; total deposit costs of 225 bps.
A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.

LOANS
Broad-based disciplined commercial loan growth.

Period-end total loans³ were $36.5 billion, up 2.7% annualized.
Total commercial loan production in the third quarter was $1.7 billion; period-end commercial pipeline totaled $2.8 billion.
Average total loans in the third quarter were $36.3 billion, an increase of $235.9 million.

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

Provision⁴ expense was $28.5 million compared to $36.2 million, or $20.9 million excluding $15.3 million of current expected credit loss ("CECL") Day 1 non-PCD provision expense related to the allowance for credit losses established on acquired non-PCD loans in the CapStar transaction in the second quarter of 2024.
Net charge-offs were $17.5 million, or 19 bps of average loans compared to net charge-offs of 16 bps of average loans.
- Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 16 bps.
30+ day delinquencies as a percentage of loans were 0.26% compared to 0.16%.
Nonaccrual loans as a percentage of total loans were 1.22% compared to 0.94%.
Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $174.0 million.
The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $405.9 million, or 1.12% of total loans, compared to $392.1 million, or 1.08% of total loans.

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

Net interest income on a fully taxable equivalent basis¹ increased to $397.9 million compared to $394.8 million, driven by loan growth as well as higher asset yields and accretion, partly offset by higher funding costs.
Net interest margin on a fully taxable equivalent basis¹modestly decreased 1 bps to 3.32%.
Accretion income on loans and borrowings was $15.6 million, or 13 bps of net interest margin¹, compared to $11.6 million, or 10 bps of net interest margin¹.
Cost of total deposits was 2.25%, increasing 9 bps and the cost of total interest-bearing deposits increased 9 bps to 2.93%.

NONINTEREST INCOME
Increase driven by higher service charges, mortgage fees, capital markets income, and other income.

Total noninterest income was $94.1 million compared to $87.3 million.
Noninterest income was up 7.9% driven by higher service charges, mortgage fees, capital markets income, and other income.

NONINTEREST EXPENSE
Disciplined expense management.

Noninterest expense was $272.3 million and included $6.9 million of merger-related charges and $2.6 million of pre-tax separation expense⁵.
- Excluding these items, adjusted noninterest expense¹ was $262.8 million, compared to $263.6 million.
The efficiency ratio¹ was 53.8%, while the adjusted efficiency ratio¹ was 51.2% compared to 57.2% and 52.6%, respectively.

INCOME TAXES

Income tax expense was $41.3 million, resulting in an effective tax rate of 22.3% compared to 22.5%. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 24.8% compared to 25.5%.
Income tax expense included $4.0 million of tax credit benefit compared to $3.5 million.

CAPITAL
Capital ratios remain strong.

Preliminary total risk-based capital up 23 bps to 12.94% and preliminary regulatory Tier 1 capital up 27 bps to 11.60%, as strong retained earnings drive capital.
Tangible common equity to tangible assets was 7.44% compared to 6.94%.

CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, October 22, 2024, to review third quarter 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 1586600. A replay of the call will also be available from approximately noon Central Time on October 22, 2024 through November 5, 2024. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 1586600.

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 $31 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," "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 expected cost savings, synergies and other financial benefits from the merger (the “Merger”) between Old National and CapStar Financial Holdings, Inc. not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses and the success of revenue-generating and cost reduction initiatives; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; political and economic uncertainty and instability; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 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: Kathy Schoettlin		Investors: Lynell Durchholz
(812) 465-7269		(812) 464-1366
Kathy.Schoettlin@oldnational.com		Lynell.Durchholz@oldnational.com


Financial Highlights (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Income Statement
Net interest income	$	391,724		$	388,421		$	356,458		$	364,408		$	375,086		$	1,136,603		$	1,138,745
FTE adjustment^1,3		6,144			6,340			6,253			6,100			5,837			18,737			17,328
Net interest income - tax equivalent basis³		397,868			394,761			362,711			370,508			380,923			1,155,340			1,156,073
Provision for credit losses		28,497			36,214			18,891			11,595			19,068			83,602			47,292
Noninterest income		94,138			87,271			77,522			100,094			80,938			258,931			233,248
Noninterest expense		272,283			282,999			262,317			284,235			244,776			817,599			742,071
Net income available to common shareholders	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842		$	373,214		$	437,411
Per Common Share Data
Weighted average diluted shares		317,331			316,461			292,207			292,029			291,717			308,605			291,809
EPS, diluted	$	0.44		$	0.37		$	0.40		$	0.44		$	0.49		$	1.21		$	1.50
Cash dividends		0.14			0.14			0.14			0.14			0.14			0.42			0.42
Dividend payout ratio²		32	%		38	%		35	%		32	%		29	%		35	%		28	%
Book value	$	19.20		$	18.28		$	18.24		$	18.18		$	17.07		$	19.20		$	17.07
Stock price		18.66			17.19			17.41			16.89			14.54			18.66			14.54
Tangible book value³		11.97			11.05			11.10			11.00			9.87			11.97			9.87
Performance Ratios
ROAA		1.08	%		0.92	%		0.98	%		1.09	%		1.22	%		0.99	%		1.25	%
ROAE		9.4	%		8.2	%		8.7	%		10.2	%		11.4	%		8.8	%		11.7	%
ROATCE³		16.0	%		14.1	%		14.9	%		18.1	%		20.2	%		15.0	%		20.8	%
NIM (FTE)		3.32	%		3.33	%		3.28	%		3.39	%		3.49	%		3.31	%		3.59	%
Efficiency ratio³		53.8	%		57.2	%		58.3	%		59.0	%		51.7	%		56.4	%		51.9	%
NCOs to average loans		0.19	%		0.16	%		0.14	%		0.12	%		0.24	%		0.16	%		0.19	%
ACL on loans to EOP loans		1.05	%		1.01	%		0.95	%		0.93	%		0.93	%		1.05	%		0.93	%
ACL⁴ to EOP loans		1.12	%		1.08	%		1.03	%		1.03	%		1.03	%		1.12	%		1.03	%
NPLs to EOP loans		1.22	%		0.94	%		0.98	%		0.83	%		0.80	%		1.22	%		0.80	%
Balance Sheet (EOP)
Total loans	$	36,400,643		$	36,150,513		$	33,623,319		$	32,991,927		$	32,577,834		$	36,400,643		$	32,577,834
Total assets		53,602,293			53,119,645			49,534,918			49,089,836			49,059,448			53,602,293			49,059,448
Total deposits		40,845,746			39,999,228			37,699,418			37,235,180			37,252,676			40,845,746			37,252,676
Total borrowed funds		5,449,096			6,085,204			5,331,161			5,331,147			5,556,010			5,449,096			5,556,010
Total shareholders' equity		6,367,298			6,075,072			5,595,408			5,562,900			5,239,537			6,367,298			5,239,537
Capital Ratios
Risk-based capital ratios (EOP):
Tier 1 common equity		11.00	%		10.73	%		10.76	%		10.70	%		10.41	%		11.00	%		10.41	%
Tier 1 capital		11.60	%		11.33	%		11.40	%		11.35	%		11.06	%		11.60	%		11.06	%
Total capital		12.94	%		12.71	%		12.74	%		12.64	%		12.32	%		12.94	%		12.32	%
Leverage ratio (average assets)		9.05	%		8.90	%		8.96	%		8.83	%		8.70	%		9.05	%		8.70	%
Equity to assets (averages)³		11.60	%		11.31	%		11.32	%		10.81	%		10.88	%		11.41	%		10.95	%
TCE to TA³		7.44	%		6.94	%		6.86	%		6.85	%		6.15	%		7.44	%		6.15	%
Nonfinancial Data
Full-time equivalent employees		4,105			4,267			3,955			3,940			3,981			4,105			3,981
Banking centers		280			280			258			258			257			280			257
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).
³Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. September 30, 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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Interest income	$	679,925		$	663,663		$	595,981		$	589,751		$	576,519		$	1,939,569		$	1,617,070
Less: interest expense		288,201			275,242			239,523			225,343			201,433			802,966			478,325
Net interest income		391,724			388,421			356,458			364,408			375,086			1,136,603			1,138,745
Provision for credit losses		28,497			36,214			18,891			11,595			19,068			83,602			47,292
Net interest income after provision for credit losses		363,227			352,207			337,567			352,813			356,018			1,053,001			1,091,453
Wealth and investment services fees		29,117			29,358			28,304			27,656			26,687			86,779			80,128
Service charges on deposit accounts		20,350			19,350			17,898			18,667			18,524			57,598			53,278
Debit card and ATM fees		11,362			10,993			10,054			10,700			10,818			32,409			31,453
Mortgage banking revenue		7,669			7,064			4,478			3,691			5,063			19,211			12,628
Capital markets income		7,426			4,729			2,900			5,416			5,891			15,055			19,003
Company-owned life insurance		5,315			5,739			3,434			3,773			3,740			14,488			11,624
Gain on sale of Visa Class B restricted shares		—			—			—			21,635			—			—			—
Other income		12,975			10,036			10,470			9,381			10,456			33,481			30,574
Debt securities gains (losses), net		(76	)		2			(16	)		(825	)		(241	)		(90	)		(5,440	)
Total noninterest income		94,138			87,271			77,522			100,094			80,938			258,931			233,248
Salaries and employee benefits		147,494			159,193			149,803			141,649			131,541			456,490			404,715
Occupancy		27,130			26,547			27,019			26,514			25,795			80,696			80,162
Equipment		9,888			8,704			8,671			8,769			8,284			27,263			23,394
Marketing		11,036			11,284			10,634			10,813			9,448			32,954			28,698
Technology		23,343			24,002			20,023			20,493			20,592			67,368			59,850
Communication		4,681			4,480			4,000			4,212			4,075			13,161			12,768
Professional fees		7,278			10,552			6,406			8,250			5,956			24,236			19,085
FDIC assessment		11,722			9,676			11,313			27,702			9,000			32,711			29,028
Amortization of intangibles		7,411			7,425			5,455			5,869			6,040			20,291			18,286
Amortization of tax credit investments		3,277			2,747			2,749			7,200			2,644			8,773			8,167
Other expense		19,023			18,389			16,244			22,764			21,401			53,656			57,918
Total noninterest expense		272,283			282,999			262,317			284,235			244,776			817,599			742,071
Income before income taxes		185,082			156,479			152,772			168,672			192,180			494,333			582,630
Income tax expense		41,280			35,250			32,488			36,192			44,304			109,018			133,118
Net income	$	143,802		$	121,229		$	120,284		$	132,480		$	147,876		$	385,315		$	449,512
Preferred dividends		(4,034	)		(4,033	)		(4,034	)		(4,034	)		(4,034	)		(12,101	)		(12,101	)
Net income applicable to common shares	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842		$	373,214		$	437,411

EPS, diluted	$	0.44		$	0.37		$	0.40		$	0.44		$	0.49		$	1.21		$	1.50
Weighted Average Common Shares Outstanding
Basic		315,622			315,585			290,980			290,701			290,648			307,426			290,763
Diluted		317,331			316,461			292,207			292,029			291,717			308,605			291,809
Common shares outstanding (EOP)		318,955			318,969			293,330			292,655			292,586			318,955			292,586


End of Period Balance Sheet (unaudited)
($ in thousands)
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Assets
Cash and due from banks	$	498,120		$	428,665		$	350,990		$	430,866		$	381,343
Money market and other interest-earning investments		693,450			804,381			588,509			744,192			1,282,087
Investments:
Treasury and government-sponsored agencies		2,335,716			2,207,004			2,243,754			2,453,950			2,515,249
Mortgage-backed securities		6,085,826			5,890,371			5,566,881			5,245,691			4,906,290
States and political subdivisions		1,665,128			1,678,597			1,672,061			1,693,819			1,705,200
Other securities		783,079			775,623			760,847			779,048			751,404
Total investments		10,869,749			10,551,595			10,243,543			10,172,508			9,878,143
Loans held-for-sale, at fair value		62,376			66,126			19,418			32,006			122,033
Loans:
Commercial		10,408,095			10,332,631			9,648,269			9,512,230			9,333,448
Commercial and agriculture real estate		16,356,216			16,016,958			14,653,958			14,140,629			13,916,221
Residential real estate		6,757,896			6,894,957			6,661,379			6,699,443			6,696,288
Consumer		2,878,436			2,905,967			2,659,713			2,639,625			2,631,877
Total loans		36,400,643			36,150,513			33,623,319			32,991,927			32,577,834
Allowance for credit losses on loans		(380,840	)		(366,335	)		(319,713	)		(307,610	)		(303,982	)
Premises and equipment, net		599,528			601,945			564,007			565,396			565,607
Goodwill and other intangible assets		2,305,084			2,306,204			2,095,511			2,100,966			2,106,835
Company-owned life insurance		863,723			862,032			767,423			767,902			774,517
Accrued interest receivable and other assets		1,690,460			1,714,519			1,601,911			1,591,683			1,675,031
Total assets	$	53,602,293		$	53,119,645		$	49,534,918		$	49,089,836		$	49,059,448

Liabilities and Equity
Noninterest-bearing demand deposits	$	9,429,285		$	9,336,042		$	9,257,709		$	9,664,247		$	10,091,352
Interest-bearing:
Checking and NOW accounts		7,314,245			7,680,865			7,236,667			7,331,487			7,495,417
Savings accounts		4,781,447			4,983,811			5,020,095			5,099,186			5,296,985
Money market accounts		11,601,461			10,485,491			10,234,113			9,561,116			8,793,218
Other time deposits		6,010,070			5,688,432			4,760,659			4,565,137			4,398,182
Total core deposits		39,136,508			38,174,641			36,509,243			36,221,173			36,075,154
Brokered deposits		1,709,238			1,824,587			1,190,175			1,014,007			1,177,522
Total deposits		40,845,746			39,999,228			37,699,418			37,235,180			37,252,676

Federal funds purchased and interbank borrowings		135,263			250,154			50,416			390			918
Securities sold under agreements to repurchase		244,626			240,713			274,493			285,206			279,061
Federal Home Loan Bank advances		4,471,153			4,744,560			4,193,039			4,280,681			4,412,576
Other borrowings		598,054			849,777			813,213			764,870			863,455
Total borrowed funds		5,449,096			6,085,204			5,331,161			5,331,147			5,556,010
Accrued expenses and other liabilities		940,153			960,141			908,931			960,609			1,011,225
Total liabilities		47,234,995			47,044,573			43,939,510			43,526,936			43,819,911
Preferred stock, common stock, surplus, and retained earnings		6,971,054			6,866,480			6,375,036			6,301,709			6,208,352
Accumulated other comprehensive income (loss), net of tax		(603,756	)		(791,408	)		(779,628	)		(738,809	)		(968,815	)
Total shareholders' equity		6,367,298			6,075,072			5,595,408			5,562,900			5,239,537
Total liabilities and shareholders' equity	$	53,602,293		$	53,119,645		$	49,534,918		$	49,089,836		$	49,059,448


Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)


	Three Months Ended							Three Months Ended							Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average			Income¹/		Yield/		Average			Income¹/		Yield/		Average			Income¹/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning investments	$	904,176		$	11,696	5.15	%	$	814,944		$	11,311	5.58	%	$	980,813		$	13,194	5.34	%
Investments:
Treasury and government-sponsored agencies		2,255,629			21,851	3.87	%		2,208,935			21,531	3.90	%		2,376,864			23,037	3.88	%
Mortgage-backed securities		5,977,058			48,425	3.24	%		5,828,225			47,904	3.29	%		5,079,091			33,237	2.62	%
States and political subdivisions		1,668,454			14,042	3.37	%		1,686,994			14,290	3.39	%		1,737,037			14,220	3.27	%
Other securities		785,107			12,547	6.39	%		788,571			12,583	6.38	%		793,196			10,127	5.11	%
Total investments		10,686,248			96,865	3.63	%		10,512,725			96,308	3.66	%		9,986,188			80,621	3.23	%
Loans:²
Commercial		10,373,340			183,878	7.09	%		10,345,098			183,425	7.09	%		9,612,102			163,869	6.82	%
Commercial and agriculture real estate		16,216,842			274,832	6.78	%		15,870,809			260,407	6.56	%		13,711,156			219,575	6.41	%
Residential real estate loans		6,833,597			67,084	3.93	%		6,952,942			67,683	3.89	%		6,712,269			62,775	3.74	%
Consumer		2,891,260			51,714	7.12	%		2,910,331			50,869	7.03	%		2,614,928			42,322	6.42	%
Total loans		36,315,039			577,508	6.36	%		36,079,180			562,384	6.24	%		32,650,455			488,541	5.98	%

Total earning assets	$	47,905,463		$	686,069	5.73	%	$	47,406,849		$	670,003	5.66	%	$	43,617,456		$	582,356	5.34	%

Less: Allowance for credit losses on loans		(366,667	)						(331,043	)						(300,071	)

Non-earning Assets:
Cash and due from banks	$	413,583						$	430,256						$	382,755
Other assets		5,394,032							5,341,022							4,960,383

Total assets	$	53,346,411						$	52,847,084						$	48,660,523

Interest-Bearing Liabilities:
Checking and NOW accounts	$	7,551,264		$	29,344	1.55	%	$	8,189,454		$	34,398	1.69	%	$	7,515,439		$	25,531	1.35	%
Savings accounts		4,860,161			5,184	0.42	%		5,044,800			5,254	0.42	%		5,414,775			4,268	0.31	%
Money market accounts		11,064,433			106,148	3.82	%		10,728,156			102,560	3.84	%		7,979,999			65,549	3.26	%
Other time deposits		5,928,241			64,435	4.32	%		5,358,103			56,586	4.25	%		4,229,692			37,110	3.48	%
Total interest-bearing core deposits		29,404,099			205,111	2.78	%		29,320,513			198,798	2.73	%		25,139,905			132,458	2.09	%
Brokered deposits		1,829,218			24,616	5.35	%		1,244,237			17,008	5.50	%		1,183,228			14,970	5.02	%
Total interest-bearing deposits		31,233,317			229,727	2.93	%		30,564,750			215,806	2.84	%		26,323,133			147,428	2.22	%

Federal funds purchased and interbank borrowings		14,549			292	7.98	%		148,835			1,986	5.37	%		62,921			910	5.74	%
Securities sold under agreements to repurchase		239,524			612	1.02	%		249,939			639	1.03	%		302,305			710	0.93	%
Federal Home Loan Bank advances		4,572,046			47,719	4.15	%		4,473,978			44,643	4.01	%		4,537,250			40,382	3.53	%
Other borrowings		754,544			9,851	5.19	%		891,609			12,168	5.49	%		841,307			12,003	5.66	%
Total borrowed funds		5,580,663			58,474	4.17	%		5,764,361			59,436	4.15	%		5,743,783			54,005	3.73	%

Total interest-bearing liabilities	$	36,813,980		$	288,201	3.11	%	$	36,329,111		$	275,242	3.05	%	$	32,066,916		$	201,433	2.49	%

Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits	$	9,371,698						$	9,558,675						$	10,338,267
Other liabilities		970,662							980,322							961,268
Shareholders' equity		6,190,071							5,978,976							5,294,072

Total liabilities and shareholders' equity	$	53,346,411						$	52,847,084						$	48,660,523

Net interest rate spread						2.62	%						2.61	%						2.85	%

Net interest margin (GAAP)						3.27	%						3.28	%						3.44	%

Net interest margin (FTE)³						3.32	%						3.33	%						3.49	%

FTE adjustment				$	6,144						$	6,340						$	5,837

¹ Interest income is reflected on a FTE basis.
² Includes loans held-for-sale.
³Represents 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)


	Nine Months Ended							Nine Months Ended
	September 30, 2024							September 30, 2023
	Average			Income¹/		Yield/		Average			Income¹/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning investments	$	825,743		$	32,992	5.34	%	$	736,225		$	25,258	4.59	%
Investments:
Treasury and government-sponsored agencies		2,275,607			66,648	3.91	%		2,266,177			58,923	3.47	%
Mortgage-backed securities		5,721,725			135,217	3.15	%		5,268,509			102,618	2.60	%
States and political subdivisions		1,678,504			42,308	3.36	%		1,771,155			43,306	3.26	%
Other securities		781,385			37,303	6.37	%		785,474			28,726	4.88	%
Total investments	$	10,457,221		$	281,476	3.59	%	$	10,091,315		$	233,573	3.09	%
Loans:²
Commercial		10,087,322			534,566	7.07	%		9,644,541			475,210	6.57	%
Commercial and agriculture real estate		15,488,010			765,325	6.59	%		13,180,509			598,337	6.05	%
Residential real estate loans		6,826,809			197,770	3.86	%		6,626,551			181,592	3.65	%
Consumer		2,815,837			146,177	6.93	%		2,612,519			120,428	6.16	%
Total loans		35,217,978			1,643,838	6.22	%		32,064,120			1,375,567	5.72	%

Total earning assets	$	46,500,942		$	1,958,306	5.62	%	$	42,891,660		$	1,634,398	5.08	%

Less: Allowance for credit losses on loans		(337,168	)						(301,909	)

Non-earning Assets:
Cash and due from banks	$	402,213						$	412,998
Other assets		5,232,807							4,917,592

Total assets	$	51,798,794						$	47,920,341

Interest-Bearing Liabilities:
Checking and NOW accounts	$	7,627,029		$	88,994	1.56	%	$	7,793,561		$	69,248	1.19	%
Savings accounts		4,976,361			15,455	0.41	%		5,791,780			9,745	0.22	%
Money market accounts		10,571,821			302,921	3.83	%		6,577,317			120,917	2.46	%
Other time deposits		5,327,361			168,453	4.22	%		3,660,156			79,032	2.89	%
Total interest-bearing core deposits		28,502,572			575,823	2.70	%		23,822,814			278,942	1.57	%
Brokered deposits		1,375,231			55,149	5.36	%		879,886			32,053	4.87	%
Total interest-bearing deposits		29,877,803			630,972	2.82	%		24,702,700			310,995	1.68	%

Federal funds purchased and interbank borrowings		77,262			3,239	5.60	%		306,480			11,404	4.97	%
Securities sold under agreements to repurchase		261,818			2,168	1.11	%		351,362			2,389	0.91	%
Federal Home Loan Bank advances		4,477,851			133,529	3.98	%		4,699,074			123,466	3.51	%
Other borrowings		823,746			33,058	5.36	%		806,575			30,071	4.98	%
Total borrowed funds		5,640,677			171,994	4.07	%		6,163,491			167,330	3.63	%

Total interest-bearing liabilities		35,518,480			802,966	3.02	%		30,866,191			478,325	2.07	%

Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits	$	9,396,081						$	10,864,375
Other liabilities		971,687							944,619
Shareholders' equity		5,912,546							5,245,156

Total liabilities and shareholders' equity	$	51,798,794						$	47,920,341

Net interest rate spread						2.60	%						3.01	%

Net interest margin (GAAP)						3.26	%						3.54	%

Net interest margin (FTE)³						3.31	%						3.59	%

FTE adjustment				$	18,737						$	17,328

¹ Interest income is reflected on a FTE.
² Includes loans held-for-sale.
³Represents 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															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Allowance for credit losses:
Beginning allowance for credit losses on loans	$	366,335		$	319,713		$	307,610		$	303,982		$	300,555		$	307,610		$	303,671
Allowance established for acquired PCD loans		2,803			23,922			—			—			—			26,725			—
Provision for credit losses on loans		29,176			36,745			23,853			13,329			23,115			89,774			46,520
Gross charge-offs		(18,965	)		(17,041	)		(14,020	)		(13,202	)		(22,750	)		(50,026	)		(55,261	)
Gross recoveries		1,491			2,996			2,270			3,501			3,062			6,757			9,052
NCOs		(17,474	)		(14,045	)		(11,750	)		(9,701	)		(19,688	)		(43,269	)		(46,209	)
Ending allowance for credit losses on loans	$	380,840		$	366,335		$	319,713		$	307,610		$	303,982		$	380,840		$	303,982
Beginning allowance for credit losses on unfunded commitments	$	25,733		$	26,264		$	31,226		$	32,960		$	37,007		$	31,226		$	32,188
Provision (release) for credit losses on unfunded commitments		(679	)		(531	)		(4,962	)		(1,734	)		(4,047	)		(6,172	)		772
Ending allowance for credit losses on unfunded commitments	$	25,054		$	25,733		$	26,264		$	31,226		$	32,960		$	25,054		$	32,960
Allowance for credit losses	$	405,894		$	392,068		$	345,977		$	338,836		$	336,942		$	405,894		$	336,942
Provision for credit losses on loans	$	29,176		$	36,745		$	23,853		$	13,329		$	23,115		$	89,774		$	46,520
Provision (release) for credit losses on unfunded commitments		(679	)		(531	)		(4,962	)		(1,734	)		(4,047	)		(6,172	)		772
Provision for credit losses	$	28,497		$	36,214		$	18,891		$	11,595		$	19,068		$	83,602		$	47,292
NCOs / average loans¹		0.19	%		0.16	%		0.14	%		0.12	%		0.24	%		0.16	%		0.19	%
Average loans¹	$	36,299,544		$	36,053,845		$	33,242,739		$	32,752,406		$	32,639,812		$	35,202,727		$	32,057,989
EOP loans¹		36,400,643			36,150,513			33,623,319			32,991,927			32,577,834			36,400,643			32,577,834
ACL on loans / EOP loans¹		1.05	%		1.01	%		0.95	%		0.93	%		0.93	%		1.05	%		0.93	%
ACL / EOP loans¹		1.12	%		1.08	%		1.03	%		1.03	%		1.03	%		1.12	%		1.03	%
Underperforming Assets:
Loans 90 days and over (still accruing)	$	1,177		$	5,251		$	2,172		$	961		$	1,192		$	1,177		$	1,192
Nonaccrual loans		443,597			340,181			328,645			274,821			261,346			443,597			261,346
Foreclosed assets		4,077			8,290			9,344			9,434			9,761			4,077			9,761
Total underperforming assets	$	448,851		$	353,722		$	340,161		$	285,216		$	272,299		$	448,851		$	272,299
Classified and Criticized Assets:
Nonaccrual loans	$	443,597		$	340,181		$	328,645		$	274,821		$	261,346		$	443,597		$	261,346
Substandard loans (still accruing)		1,074,243			841,087			626,157			599,358			563,427			1,074,243			563,427
Loans 90 days and over (still accruing)		1,177			5,251			2,172			961			1,192			1,177			1,192
Total classified loans - "problem loans"		1,519,017			1,186,519			956,974			875,140			825,965			1,519,017			825,965
Other classified assets		59,485			60,772			54,392			48,930			48,998			59,485			48,998
Special Mention		837,543			967,655			827,419			843,920			775,526			837,543			775,526
Total classified and criticized assets	$	2,416,045		$	2,214,946		$	1,838,785		$	1,767,990		$	1,650,489		$	2,416,045		$	1,650,489
Loans 30-89 days past due (still accruing)	$	91,750		$	51,712		$	53,112		$	71,868		$	56,772		$	91,750		$	56,772
Nonaccrual loans / EOP loans¹		1.22	%		0.94	%		0.98	%		0.83	%		0.80	%		1.22	%		0.80	%
ACL / nonaccrual loans		92	%		115	%		105	%		123	%		129	%		92	%		129	%
Under-performing assets/EOP loans¹		1.23	%		0.98	%		1.01	%		0.86	%		0.84	%		1.23	%		0.84	%
Under-performing assets/EOP assets		0.84	%		0.67	%		0.69	%		0.58	%		0.56	%		0.84	%		0.56	%
30+ day delinquencies/EOP loans¹		0.26	%		0.16	%		0.16	%		0.22	%		0.18	%		0.26	%		0.18	%

¹ Excludes loans held-for-sale.


Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended																Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2024			2024			2024			2023			2023				2024			2023
Earnings Per Share:
Net income applicable to common shares	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842			$	373,214		$	437,411
Adjustments:
Merger-related charges		6,860			19,440			2,908			5,529			6,257				29,208			23,187
Tax effect¹		(1,528	)		(4,413	)		(710	)		(1,343	)		(1,042	)			(6,651	)		(4,491	)
Merger-related charges, net		5,332			15,027			2,198			4,186			5,215				22,557			18,696
Separation expense		2,646			—			—			—			—				2,646			—
Tax effect¹		(589	)		—			—			—			—				(589	)		—
Separation expense, net		2,057			—			—			—			—				2,057			—
Debt securities (gains) losses		76			(2	)		16			825			241				90			5,440
Tax effect¹		(17	)		1			(4	)		(200	)		(40	)			(20	)		(1,175	)
Debt securities (gains) losses, net		59			(1	)		12			625			201				70			4,265
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			—
Tax effect¹		—			—			(731	)		(4,628	)		—				(731	)		—
FDIC special assessment, net		—			—			2,263			14,424			—				2,263			—
Gain on sale of Visa Class B restricted shares		—			—			—			(21,635	)		—				—			—
Tax effect¹		—			—			—			5,255			—				—			—
Gain on sale of Visa Class B restricted shares, net		—			—			—			(16,380	)		—				—			—
Contract termination charge		—			—			—			4,413			—				—			—
Tax effect¹		—			—			—			(1,072	)		—				—			—
Contract termination charge, net		—			—			—			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		7,448			26,862			14,541			6,196			5,416				48,851			27,174
Net income applicable to common shares, adjusted	$	147,216		$	144,058		$	130,791		$	134,642		$	149,258			$	422,065		$	464,585
Weighted average diluted common shares outstanding		317,331			316,461			292,207			292,029			291,717				308,605			291,809
EPS, diluted	$	0.44		$	0.37		$	0.40		$	0.44		$	0.49			$	1.21		$	1.50
Adjusted EPS, diluted	$	0.46		$	0.46		$	0.45		$	0.46		$	0.51			$	1.37		$	1.59
NIM:
Net interest income	$	391,724		$	388,421		$	356,458		$	364,408		$	375,086			$	1,136,603		$	1,138,745
Add: FTE adjustment²		6,144			6,340			6,253			6,100			5,837				18,737			17,328
Net interest income (FTE)	$	397,868		$	394,761		$	362,711		$	370,508		$	380,923			$	1,155,340		$	1,156,073
Average earning assets	$	47,905,463		$	47,406,849		$	44,175,079		$	43,701,283		$	43,617,456			$	46,500,942		$	42,891,660
NIM (GAAP)		3.27	%		3.28	%		3.23	%		3.34	%		3.44	%			3.26	%		3.54	%
NIM (FTE)		3.32	%		3.33	%		3.28	%		3.39	%		3.49	%			3.31	%		3.59	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
PPNR:
Net interest income (FTE)²	$	397,868		$	394,761		$	362,711		$	370,508		$	380,923		$	1,155,340		$	1,156,073
Add: Noninterest income		94,138			87,271			77,522			100,094			80,938			258,931			233,248
Total revenue (FTE)		492,006			482,032			440,233			470,602			461,861			1,414,271			1,389,321
Less: Noninterest expense		(272,283	)		(282,999	)		(262,317	)		(284,235	)		(244,776	)		(817,599	)		(742,071	)
PPNR	$	219,723		$	199,033		$	177,916		$	186,367		$	217,085		$	596,672		$	647,250
Adjustments:
Gain on sale of Visa Class B restricted shares	$	—		$	—		$	—		$	(21,635	)	$	—		$	—		$	—
Debt securities (gains) losses		76			(2	)		16			825			241			90			5,440
Noninterest income adjustments		76			(2	)		16			(20,810	)		241			90			5,440
Adjusted noninterest income		94,214			87,269			77,538			79,284			81,179			259,021			238,688
Adjusted revenue	$	492,082		$	482,030		$	440,249		$	449,792		$	462,102		$	1,414,361		$	1,394,761
Adjustments:
Merger-related charges	$	6,860		$	19,440		$	2,908		$	5,529		$	6,257		$	29,208		$	23,187
Separation expense		2,646			—			—			—			—			2,646			—
Distribution of excess pension assets		—			—			13,318			—			—			13,318			—
FDIC Special Assessment		—			—			2,994			19,052			—			2,994			—
Contract termination charges		—			—			—			4,413			—			—			—
Louisville expenses		—			—			—			—			—			—			3,361
Property optimization charges		—			—			—			—			—			—			1,559
Noninterest expense adjustments		9,506			19,440			19,220			28,994			6,257			48,166			28,107
Adjusted total noninterest expense		(262,777	)		(263,559	)		(243,097	)		(255,241	)		(238,519	)		(769,433	)		(713,964	)
Adjusted PPNR	$	229,305		$	218,471		$	197,152		$	194,551		$	223,583		$	644,928		$	680,797
Efficiency Ratio:
Noninterest expense	$	272,283		$	282,999		$	262,317		$	284,235		$	244,776		$	817,599		$	742,071
Less: Amortization of intangibles		(7,411	)		(7,425	)		(5,455	)		(5,869	)		(6,040	)		(20,291	)		(18,286	)
Noninterest expense, excl. amortization of intangibles		264,872			275,574			256,862			278,366			238,736			797,308			723,785
Less: Amortization of tax credit investments		(3,277	)		(2,747	)		(2,749	)		(7,200	)		(2,644	)		(8,773	)		(8,167	)
Less: Noninterest expense adjustments		(9,506	)		(19,440	)		(19,220	)		(28,994	)		(6,257	)		(48,166	)		(28,107	)
Adjusted noninterest expense, excluding amortization	$	252,089		$	253,387		$	234,893		$	242,172		$	229,835		$	740,369		$	687,511
Total revenue (FTE)²	$	492,006		$	482,032		$	440,233		$	470,602		$	461,861		$	1,414,271		$	1,389,321
Less: Debt securities (gains) losses		76			(2	)		16			825			241			90			5,440
Total revenue excl. debt securities (gains) losses		492,082			482,030			440,249			471,427			462,102			1,414,361			1,394,761
Less: Gain on sale of Visa Class B restricted shares		—			—			—			(21,635	)		—			—			—
Total adjusted revenue	$	492,082		$	482,030		$	440,249		$	449,792		$	462,102		$	1,414,361		$	1,394,761
Efficiency Ratio		53.8	%		57.2	%		58.3	%		59.0	%		51.7	%		56.4	%		51.9	%
Adjusted Efficiency Ratio		51.2	%		52.6	%		53.4	%		53.8	%		49.7	%		52.3	%		49.3	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
ROAE and ROATCE:
Net income applicable to common shares	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842		$	373,214		$	437,411
Amortization of intangibles		7,411			7,425			5,455			5,869			6,040			20,291			18,286
Tax effect¹		(1,853	)		(1,856	)		(1,364	)		(1,467	)		(1,510	)		(5,073	)		(4,572	)
Amortization of intangibles, net		5,558			5,569			4,091			4,402			4,530			15,218			13,714
Net income applicable to common shares, excluding intangibles amortization		145,326			122,765			120,341			132,848			148,372			388,432			451,125
Total adjustments, net (see pg.12)		7,448			26,862			14,541			6,196			5,416			48,851			27,174
Adjusted net income applicable to common shares, excluding intangibles amortization	$	152,774		$	149,627		$	134,882		$	139,044		$	153,788		$	437,283		$	478,299
Average shareholders' equity	$	6,190,071		$	5,978,976		$	5,565,542		$	5,281,487		$	5,294,072		$	5,912,546		$	5,245,156
Less: Average preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Average shareholders' common equity	$	5,946,352		$	5,735,257		$	5,321,823		$	5,037,768		$	5,050,353		$	5,668,827		$	5,001,437
Average goodwill and other intangible assets		(2,304,597	)		(2,245,405	)		(2,098,338	)		(2,103,935	)		(2,109,944	)		(2,216,437	)		(2,115,953	)
Average tangible shareholder's common equity	$	3,641,755		$	3,489,852		$	3,223,485		$	2,933,833		$	2,940,409		$	3,452,390		$	2,885,484
ROAE		9.4	%		8.2	%		8.7	%		10.2	%		11.4	%		8.8	%		11.7	%
ROAE, adjusted		9.9	%		10.0	%		9.8	%		10.7	%		11.8	%		9.9	%		12.4	%
ROATCE		16.0	%		14.1	%		14.9	%		18.1	%		20.2	%		15.0	%		20.8	%
ROATCE, adjusted		16.8	%		17.2	%		16.7	%		19.0	%		20.9	%		16.9	%		22.1	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Tangible Common Equity:
Shareholders' equity	$	6,367,298		$	6,075,072		$	5,595,408		$	5,562,900		$	5,239,537
Less: Preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Shareholders' common equity	$	6,123,579		$	5,831,353		$	5,351,689		$	5,319,181		$	4,995,818
Less: Goodwill and other intangible assets		(2,305,084	)		(2,306,204	)		(2,095,511	)		(2,100,966	)		(2,106,835	)
Tangible shareholders' common equity	$	3,818,495		$	3,525,149		$	3,256,178		$	3,218,215		$	2,888,983

Total assets	$	53,602,293		$	53,119,645		$	49,534,918		$	49,089,836		$	49,059,448
Less: Goodwill and other intangible assets		(2,305,084	)		(2,306,204	)		(2,095,511	)		(2,100,966	)		(2,106,835	)
Tangible assets	$	51,297,209		$	50,813,441		$	47,439,407		$	46,988,870		$	46,952,613

Risk-weighted assets³	$	40,584,608		$	40,627,117		$	37,845,139		$	37,407,347		$	37,501,646

Tangible common equity to tangible assets		7.44	%		6.94	%		6.86	%		6.85	%		6.15	%
Tangible common equity to risk-weighted assets³		9.41	%		8.68	%		8.60	%		8.60	%		7.70	%
Tangible Common Book Value:
Common shares outstanding		318,955			318,969			293,330			292,655			292,586
Tangible common book value	$	11.97		$	11.05		$	11.10		$	11.00		$	9.87

¹Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state).
²Calculated using the federal statutory tax rate in effect of 21% for all periods.
³September 30, 2024 figures are preliminary.

Old National Bancorp Reports Third Quarter 2024 Results

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