Old National Bancorp Reports First Quarter 2025 Results

EVANSVILLE, Ind., April 22, 2025 (GLOBE NEWSWIRE) —

Old National Bancorp (NASDAQ: ONB) reports 1Q25 net income applicable to common shares of $140.6 million, diluted EPS of $0.44; $145.5 million and $0.45 on an adjusted1basis, respectively.

CEO COMMENTARY:

“Old National reported better-than-expected first-quarter results driven by our peer-leading deposit franchise, solid loan growth and disciplined expense management,” said Chairman and CEO Jim Ryan. “These results demonstrate our ability to navigate a challenging and uncertain economic environment, setting us up favorably as we move into the second quarter and, importantly, as we prepare for our partnership with Bremer Bank which we anticipate closing on May 1, 2025.”

FIRST QUARTER HIGHLIGHTS²:

Net Income	Net income applicable to common shares of $140.6 million; adjusted net income applicable to common shares1 of $145.5 million
	Earnings per diluted common share (“EPS”) of $0.44; adjusted EPS1 of $0.45
Net Interest Income/NIM	Net interest income on a fully taxable equivalent basis1 of $393.0 million
	Net interest margin on a fully taxable equivalent basis1 (“NIM”) of 3.27%, down 3 basis points (“bps”)
Operating Performance	Pre-provision net revenue1 (“PPNR”) of $218.3 million; adjusted PPNR1 of $224.3 million
	Noninterest expense of $268.5 million; adjusted noninterest expense1 of $262.6 million
	Efficiency ratio1 of 53.7%; adjusted efficiency ratio1 of 51.8%
Deposits and Funding	Period-end total deposits of $41.0 billion, up 2.1% annualized; core deposits up 1.7% annualized
	Granular low-cost deposit franchise; total deposit costs of 191 bps, down 17 bps
Loans and Credit Quality	End-of-period total loans3 of $36.5 billion, up 1.5% annualized
	Provision for credit losses4 (“provision”) of $31.4 million
	Net charge-offs of $21.6 million, or 24 bps of average loans; 21 bps excluding purchased credit deteriorated (“PCD”) loans that had an allowance at acquisition
	30+ day delinquencies of 0.22% and nonaccrual loans of 1.29% of total loans
Return Profile & Capital	Return on average tangible common equity1 (“ROATCE”) of 15.0%; adjusted ROATCE1 of 15.5% Preliminary regulatory Tier 1 common equity to risk-weighted assets of 11.62%, up 24 bps
Notable Items	$5.9 million of pre-tax merger-related charges

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

RESULTS OF OPERATIONS²
Old National Bancorp (“Old National”) reported first quarter 2025 net income applicable to common shares of $140.6 million, or $0.44 per diluted common share.

Included in first quarter results were pre-tax charges of $5.9 million for merger-related expenses. Excluding these charges and realized debt securities losses from the current quarter, adjusted net income¹ was $145.5 million, or $0.45 per diluted common share.

DEPOSITS AND FUNDING
Growth in core deposits driven by normal seasonal patterns in business checking and public funds, along with growth in community deposits.

• Period-end total deposits were $41.0 billion, up 2.1% annualized; core deposits up 1.7% annualized.
• On average, total deposits for the first quarter were $40.5 billion, down 6.2% annualized.
• Granular low-cost deposit franchise; total deposit costs of 191 bps, down 17 bps.
• A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.

LOANS
Balanced commercial loan production, growth and pipeline.

• Period-end total loans³ were $36.5 billion, up 1.5% annualized; up 2.3% annualized excluding $71 million of commercial real estate loan sales.
• Total commercial loan production in the first quarter was $1.5 billion; period-end commercial pipeline totaled $3.4 billion.
• Average total loans in the first quarter were $36.3 billion, a decrease of $128.2 million, or down 1.4% annualized.

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

• Provision⁴ expense was $31.4 million compared to $27.0 million.
• Net charge-offs were $21.6 million, or 24 bps of average loans compared to 21 bps.
  • Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 21 bps compared to 17 bps.
• 30+ day delinquencies as a percentage of loans were 0.22% compared to 0.27%.
• Nonaccrual loans as a percentage of total loans were 1.29% compared to 1.23%.
• Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $119.2 million.
• The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $424.0 million, or 1.16% of total loans, compared to $414.2 million, or 1.14% of total loans.

NET INTEREST INCOME AND MARGIN
Lower reflective of lower accretion and number of days.

• Net interest income on a fully taxable equivalent basis¹ decreased to $393.0 million compared to $400.0 million, driven by lower accretion, fewer days in the quarter and earning asset mix, partly offset by lower funding costs.
• Net interest margin on a fully taxable equivalent basis¹ decreased 3 bps to 3.27%.
• Accretion income on loans and borrowings was $12.3 million, or 10 bps of net interest margin¹, compared to $18.5 million, or 15 bps of net interest margin¹.
• Cost of total deposits was 1.91%, decreasing 17 bps and the cost of total interest-bearing deposits decreased 25 bps to 2.46%.

NONINTEREST INCOME
Impacted by seasonally lower bank fees and lower company-owned life insurance.

• Total noninterest income was $93.8 million compared to $95.8 million.
• Noninterest income decreased 2.1% driven by seasonally lower bank fees and lower company-owned life insurance.
  • Other income was impacted by $4.8 million of gains on the sale of $71 million of commercial real estate loans in the first quarter of 2025 and $8 million of equity investments recoveries in the fourth quarter of 2024.

NONINTEREST EXPENSE
Disciplined expense management.

• Noninterest expense was $268.5 million and included $5.9 million of merger-related charges.
  • Excluding merger-related charges, adjusted noninterest expense¹ was $262.6 million, compared to $268.7 million; decrease driven by lower FDIC assessment expense and tax credit amortization.
• The efficiency ratio¹ was 53.7%, while the adjusted efficiency ratio¹ was 51.8% compared to 54.4% and 51.8%, respectively.

INCOME TAXES

• Income tax expense was $36.9 million, resulting in an effective tax rate of 20.3% compared to 17.3%. On an adjusted fully taxable equivalent (“FTE”) basis, the effective tax rate was 22.6% compared to 19.8%.
  • The effective tax rate for the first quarter of 2025 was impacted by $1.2 million for the vesting of employee stock compensation and the fourth quarter of 2024 was impacted by $5.9 million for the resolution of tax matters.
• Income tax expense included $5.3 million of tax credit benefit compared to $5.2 million.

CAPITAL
Capital ratios remain strong.

• Preliminary total risk-based capital up 31 bps to 13.68% and preliminary regulatory Tier 1 capital up 25 bps to 12.23%, as strong retained earnings drive capital.
• Tangible common equity to tangible assets was 7.76%, up 4.7%.

CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, April 22, 2025, to review first 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 5176690. A replay of the call will also be available from approximately noon Central Time on April 22, 2025 through May 6, 2025. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 5176690.

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 $29 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, debt securities gains/losses, separation expense, CECL Day 1 non-PCD provision expense, distribution of excess pension assets expense, and FDIC special assessment expense. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company’s underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges 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, and FDIC special assessment expense, as well as adjusted noninterest income, which excludes debt securities gains/losses. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

In management’s view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company’s use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution’s capital strength since they eliminate intangible assets from stockholders’ equity and retain the effect of accumulated other comprehensive loss in stockholders’ equity.

Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the following reconciliations in the “Non-GAAP Reconciliations” section for details on the calculation of these measures to the extent presented herein.

FORWARD-LOOKING STATEMENTS
This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission (“SEC”), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “should,” “would,” and “will,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies, including trade and tariff 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 possibility that the merger (the “Merger”) between Old National and Bremer Financial Corporation (“Bremer”) does not close when expected; the expected cost savings, synergies and other financial benefits from the Merger not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the impact of purchase accounting with respect to the Merger, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks; risks relating to the potential dilutive effect of shares of Old National’s common stock to be issued in the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, the success of revenue-generating and cost reduction initiatives and the diversion of management’s attention from ongoing business operations and opportunities; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; 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, 2024 and other filings with the SEC. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results, performance or outcomes, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

CONTACTS:
Media: Rick Vach		Investors: Lynell Durchholz
(904) 535-9489		(812) 464-1366
[email protected]		[email protected]

Financial Highlights (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Income Statement
Net interest income	$	387,643		$	394,180		$	391,724		$	388,421		$	356,458
FTE adjustment1,3		5,360			5,777			6,144			6,340			6,253
Net interest income – tax equivalent basis3		393,003			399,957			397,868			394,761			362,711
Provision for credit losses		31,403			27,017			28,497			36,214			18,891
Noninterest income		93,794			95,766			94,138			87,271			77,522
Noninterest expense		268,471			276,824			272,283			282,999			262,317
Net income available to common shareholders	$	140,625		$	149,839		$	139,768		$	117,196		$	116,250
Per Common Share Data
Weighted average diluted shares		321,016			318,803			317,331			316,461			292,207
EPS, diluted	$	0.44		$	0.47		$	0.44		$	0.37		$	0.40
Cash dividends		0.14			0.14			0.14			0.14			0.14
Dividend payout ratio2		32	%		30	%		32	%		38	%		35	%
Book value	$	19.71		$	19.11		$	19.20		$	18.28		$	18.24
Stock price		21.19			21.71			18.66			17.19			17.41
Tangible book value3		12.54			11.91			11.97			11.05			11.10
Performance Ratios
ROAA		1.08	%		1.14	%		1.08	%		0.92	%		0.98	%
ROAE		9.1	%		9.8	%		9.4	%		8.2	%		8.7	%
ROATCE3		15.0	%		16.4	%		16.0	%		14.1	%		14.9	%
NIM (FTE)3		3.27	%		3.30	%		3.32	%		3.33	%		3.28	%
Efficiency ratio3		53.7	%		54.4	%		53.8	%		57.2	%		58.3	%
NCOs to average loans		0.24	%		0.21	%		0.19	%		0.16	%		0.14	%
ACL on loans to EOP loans		1.10	%		1.08	%		1.05	%		1.01	%		0.95	%
ACL4 to EOP loans		1.16	%		1.14	%		1.12	%		1.08	%		1.03	%
NPLs to EOP loans		1.29	%		1.23	%		1.22	%		0.94	%		0.98	%
Balance Sheet (EOP)
Total loans	$	36,413,944		$	36,285,887		$	36,400,643		$	36,150,513		$	33,623,319
Total assets		53,877,944			53,552,272			53,602,293			53,119,645			49,534,918
Total deposits		41,034,572			40,823,560			40,845,746			39,999,228			37,699,418
Total borrowed funds		5,447,054			5,411,537			5,449,096			6,085,204			5,331,161
Total shareholders’ equity		6,534,654			6,340,350			6,367,298			6,075,072			5,595,408
Capital Ratios3
Risk-based capital ratios (EOP):
Tier 1 common equity		11.62	%		11.38	%		11.00	%		10.73	%		10.76	%
Tier 1 capital		12.23	%		11.98	%		11.60	%		11.33	%		11.40	%
Total capital		13.68	%		13.37	%		12.94	%		12.71	%		12.74	%
Leverage ratio (average assets)		9.44	%		9.21	%		9.05	%		8.90	%		8.96	%
Equity to assets (averages)		12.01	%		11.78	%		11.60	%		11.31	%		11.32	%
TCE to TA		7.76	%		7.41	%		7.44	%		6.94	%		6.86	%
Nonfinancial Data
Full-time equivalent employees		4,028			4,066			4,105			4,267			3,955
Banking centers		280			280			280			280			258
1 Calculated using the federal statutory tax rate in effect of 21% for all periods.
2 Cash dividends per common share divided by net income per common share (basic).
3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.     March 31, 2025 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
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Interest income	$	630,399		$	662,082		$	679,925		$	663,663		$	595,981
Less: interest expense		242,756			267,902			288,201			275,242			239,523
Net interest income		387,643			394,180			391,724			388,421			356,458
Provision for credit losses		31,403			27,017			28,497			36,214			18,891
Net interest income after provision for credit losses		356,240			367,163			363,227			352,207			337,567
Wealth and investment services fees		29,648			30,012			29,117			29,358			28,304
Service charges on deposit accounts		21,156			20,577			20,350			19,350			17,898
Debit card and ATM fees		9,991			10,991			11,362			10,993			10,054
Mortgage banking revenue		6,879			7,026			7,669			7,064			4,478
Capital markets income		4,506			5,244			7,426			4,729			2,900
Company-owned life insurance		5,381			6,499			5,315			5,739			3,434
Other income		16,309			15,539			12,975			10,036			10,470
Debt securities gains (losses), net		(76	)		(122	)		(76	)		2			(16	)
Total noninterest income		93,794			95,766			94,138			87,271			77,522
Salaries and employee benefits		148,305			146,605			147,494			159,193			149,803
Occupancy		29,053			29,733			27,130			26,547			27,019
Equipment		8,901			9,325			9,888			8,704			8,671
Marketing		11,940			12,653			11,036			11,284			10,634
Technology		22,020			21,429			23,343			24,002			20,023
Communication		4,134			4,176			4,681			4,480			4,000
Professional fees		7,919			11,055			7,278			10,552			6,406
FDIC assessment		9,700			11,970			11,722			9,676			11,313
Amortization of intangibles		6,830			7,237			7,411			7,425			5,455
Amortization of tax credit investments		3,424			4,556			3,277			2,747			2,749
Other expense		16,245			18,085			19,023			18,389			16,244
Total noninterest expense		268,471			276,824			272,283			282,999			262,317
Income before income taxes		181,563			186,105			185,082			156,479			152,772
Income tax expense		36,904			32,232			41,280			35,250			32,488
Net income	$	144,659		$	153,873		$	143,802		$	121,229		$	120,284
Preferred dividends		(4,034	)		(4,034	)		(4,034	)		(4,033	)		(4,034	)
Net income applicable to common shares	$	140,625		$	149,839		$	139,768		$	117,196		$	116,250
EPS, diluted	$	0.44		$	0.47		$	0.44		$	0.37		$	0.40
Weighted Average Common Shares Outstanding
Basic		315,925			315,673			315,622			315,585			290,980
Diluted		321,016			318,803			317,331			316,461			292,207
Common shares outstanding (EOP)		319,236			318,980			318,955			318,969			293,330

End of Period Balance Sheet (unaudited)
($ in thousands)
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Assets
Cash and due from banks	$	486,061		$	394,450		$	498,120		$	428,665		$	350,990
Money market and other interest-earning investments		753,719			833,518			693,450			804,381			588,509
Investments:
Treasury and government-sponsored agencies		2,364,170			2,289,903			2,335,716			2,207,004			2,243,754
Mortgage-backed securities		6,458,023			6,175,103			6,085,826			5,890,371			5,566,881
States and political subdivisions		1,589,555			1,637,379			1,665,128			1,678,597			1,672,061
Other securities		755,348			781,656			783,079			775,623			760,847
Total investments		11,167,096			10,884,041			10,869,749			10,551,595			10,243,543
Loans held-for-sale, at fair value		40,424			34,483			62,376			66,126			19,418
Loans:
Commercial		10,650,615			10,288,560			10,408,095			10,332,631			9,648,269
Commercial and agriculture real estate		16,135,327			16,307,486			16,356,216			16,016,958			14,653,958
Residential real estate		6,771,694			6,797,586			6,757,896			6,894,957			6,661,379
Consumer		2,856,308			2,892,255			2,878,436			2,905,967			2,659,713
Total loans		36,413,944			36,285,887			36,400,643			36,150,513			33,623,319
Allowance for credit losses on loans		(401,932	)		(392,522	)		(380,840	)		(366,335	)		(319,713	)
Premises and equipment, net		584,664			588,970			599,528			601,945			564,007
Goodwill and other intangible assets		2,289,268			2,296,098			2,305,084			2,306,204			2,095,511
Company-owned life insurance		859,211			859,851			863,723			862,032			767,423
Accrued interest receivable and other assets		1,685,489			1,767,496			1,690,460			1,714,519			1,601,911
Total assets	$	53,877,944		$	53,552,272		$	53,602,293		$	53,119,645		$	49,534,918
Liabilities and Equity
Noninterest-bearing demand deposits	$	9,186,314		$	9,399,019		$	9,429,285		$	9,336,042		$	9,257,709
Interest-bearing:
Checking and NOW accounts		7,736,014			7,538,987			7,314,245			7,680,865			7,236,667
Savings accounts		4,715,329			4,753,279			4,781,447			4,983,811			5,020,095
Money market accounts		11,638,653			11,807,228			11,601,461			10,485,491			10,234,113
Other time deposits		6,212,898			5,819,970			6,010,070			5,688,432			4,760,659
Total core deposits		39,489,208			39,318,483			39,136,508			38,174,641			36,509,243
Brokered deposits		1,545,364			1,505,077			1,709,238			1,824,587			1,190,175
Total deposits		41,034,572			40,823,560			40,845,746			39,999,228			37,699,418
Federal funds purchased and interbank borrowings		170			385			135,263			250,154			50,416
Securities sold under agreements to repurchase		290,256			268,975			244,626			240,713			274,493
Federal Home Loan Bank advances		4,514,354			4,452,559			4,471,153			4,744,560			4,193,039
Other borrowings		642,274			689,618			598,054			849,777			813,213
Total borrowed funds		5,447,054			5,411,537			5,449,096			6,085,204			5,331,161
Accrued expenses and other liabilities		861,664			976,825			940,153			960,141			908,931
Total liabilities		47,343,290			47,211,922			47,234,995			47,044,573			43,939,510
Preferred stock, common stock, surplus, and retained earnings		7,183,163			7,086,393			6,971,054			6,866,480			6,375,036
Accumulated other comprehensive income (loss), net of tax		(648,509	)		(746,043	)		(603,756	)		(791,408	)		(779,628	)
Total shareholders’ equity		6,534,654			6,340,350			6,367,298			6,075,072			5,595,408
Total liabilities and shareholders’ equity	$	53,877,944		$	53,552,272		$	53,602,293		$	53,119,645		$	49,534,918

Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
		Three Months Ended								Three Months Ended								Three Months Ended
		March 31, 2025								December 31, 2024								March 31, 2024
		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		$	791,067		$	8,815	4.52	%		$	1,072,509		$	12,843	4.76	%		$	757,244		$	9,985	5.30	%
Investments:
Treasury and government-sponsored agencies			2,318,869			20,019	3.45	%			2,325,120			20,841	3.59	%			2,362,477			23,266	3.94	%
Mortgage-backed securities			6,287,825			54,523	3.47	%			6,149,775			50,416	3.28	%			5,357,085			38,888	2.90	%
States and political subdivisions			1,610,819			13,242	3.29	%			1,654,591			13,698	3.31	%			1,680,175			13,976	3.33	%
Other securities			770,839			10,512	5.45	%			783,708			10,518	5.37	%			770,438			12,173	6.32	%
Total investments			10,988,352			98,296	3.58	%			10,913,194			95,473	3.50	%			10,170,175			88,303	3.47	%
Loans:2
Commercial			10,397,991			165,595	6.37	%			10,401,056			176,996	6.81	%			9,540,385			167,263	7.01	%
Commercial and agriculture real estate			16,213,606			245,935	6.07	%			16,326,802			263,062	6.44	%			14,368,370			230,086	6.41	%
Residential real estate loans			6,815,091			67,648	3.97	%			6,814,829			68,346	4.01	%			6,693,814			63,003	3.76	%
Consumer			2,871,213			49,470	6.99	%			2,883,413			51,139	7.06	%			2,645,091			43,594	6.63	%
Total loans			36,297,901			528,648	5.83	%			36,426,100			559,543	6.14	%			33,247,660			503,946	6.07	%
Total earning assets		$	48,077,320		$	635,759	5.30	%		$	48,411,803		$	667,859	5.52	%		$	44,175,079		$	602,234	5.46	%
Less: Allowance for credit losses on loans			(398,765	)							(382,799	)							(313,470	)
Non-earning Assets:
Cash and due from banks		$	372,428							$	370,932							$	362,676
Other assets			5,394,600								5,402,359								4,961,595
Total assets		$	53,445,583							$	53,802,295							$	49,185,880
Interest-Bearing Liabilities:
Checking and NOW accounts		$	7,526,294		$	23,850	1.29	%		$	7,338,532		$	23,747	1.29	%		$	7,141,201		$	25,252	1.42	%
Savings accounts			4,692,239			3,608	0.31	%			4,750,387			4,467	0.37	%			5,025,400			5,017	0.40	%
Money market accounts			11,664,650			88,381	3.07	%			11,900,305			103,818	3.47	%			9,917,572			94,213	3.82	%
Other time deposits			5,996,108			56,485	3.82	%			5,985,911			61,679	4.10	%			4,689,136			47,432	4.07	%
Total interest-bearing core deposits			29,879,291			172,324	2.34	%			29,975,135			193,711	2.57	%			26,773,309			171,914	2.58	%
Brokered deposits			1,546,756			18,171	4.76	%			1,662,698			21,579	5.16	%			1,047,140			13,525	5.19	%
Total interest-bearing deposits			31,426,047			190,495	2.46	%			31,637,833			215,290	2.71	%			27,820,449			185,439	2.68	%
Federal funds purchased and interbank borrowings			148,130			1,625	4.45	%			433			23	21.13	%			69,090			961	5.59	%
Securities sold under agreements to repurchase			272,961			551	0.82	%			249,133			584	0.93	%			296,236			917	1.25	%
Federal Home Loan Bank advances			4,464,590			41,896	3.81	%			4,461,733			43,788	3.90	%			4,386,492			41,167	3.77	%
Other borrowings			675,759			8,189	4.91	%			669,580			8,217	4.88	%			825,846			11,039	5.38	%
Total borrowed funds			5,561,440			52,261	3.81	%			5,380,879			52,612	3.89	%			5,577,664			54,084	3.90	%
Total interest-bearing liabilities		$	36,987,487		$	242,756	2.66	%		$	37,018,712		$	267,902	2.88	%		$	33,398,113		$	239,523	2.88	%
Noninterest-Bearing Liabilities and Shareholders’ Equity
Demand deposits		$	9,096,676							$	9,509,446							$	9,258,136
Other liabilities			944,935								935,184								964,089
Shareholders’ equity			6,416,485								6,338,953								5,565,542
Total liabilities and shareholders’ equity		$	53,445,583							$	53,802,295							$	49,185,880
Net interest rate spread							2.64	%							2.64	%							2.58	%
Net interest margin (GAAP)							3.23	%							3.26	%							3.23	%
Net interest margin (FTE)3							3.27	%							3.30	%							3.28	%
FTE adjustment					$	5,360							$	5,777							$	6,253
1 Interest income is reflected on a FTE basis.
2 Includes loans held-for-sale.
3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.

Asset Quality (EOP) (unaudited)
($ in thousands)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Allowance for credit losses:
Beginning allowance for credit losses on loans	$	392,522		$	380,840		$	366,335		$	319,713		$	307,610
Allowance established for acquired PCD loans		—			—			2,803			23,922			—
Provision for credit losses on loans		31,026			30,417			29,176			36,745			23,853
Gross charge-offs		(24,540	)		(21,278	)		(18,965	)		(17,041	)		(14,020	)
Gross recoveries		2,924			2,543			1,491			2,996			2,270
NCOs		(21,616	)		(18,735	)		(17,474	)		(14,045	)		(11,750	)
Ending allowance for credit losses on loans	$	401,932		$	392,522		$	380,840		$	366,335		$	319,713
Beginning allowance for credit losses on unfunded commitments	$	21,654		$	25,054		$	25,733		$	26,264		$	31,226
Provision (release) for credit losses on unfunded commitments		377			(3,400	)		(679	)		(531	)		(4,962	)
Ending allowance for credit losses on unfunded commitments	$	22,031		$	21,654		$	25,054		$	25,733		$	26,264
Allowance for credit losses	$	423,963		$	414,176		$	405,894		$	392,068		$	345,977
Provision for credit losses on loans	$	31,026		$	30,417		$	29,176		$	36,745		$	23,853
Provision (release) for credit losses on unfunded commitments		377			(3,400	)		(679	)		(531	)		(4,962	)
Provision for credit losses	$	31,403		$	27,017		$	28,497		$	36,214		$	18,891
NCOs / average loans1		0.24	%		0.21	%		0.19	%		0.16	%		0.14	%
Average loans1	$	36,284,059		$	36,410,414		$	36,299,544		$	36,053,845		$	33,242,739
EOP loans1		36,413,944			36,285,887			36,400,643			36,150,513			33,623,319
ACL on loans / EOP loans1		1.10	%		1.08	%		1.05	%		1.01	%		0.95	%
ACL / EOP loans1		1.16	%		1.14	%		1.12	%		1.08	%		1.03	%
Underperforming Assets:
Loans 90 days and over (still accruing)	$	6,757		$	4,060		$	1,177		$	5,251		$	2,172
Nonaccrual loans		469,211			447,979			443,597			340,181			328,645
Foreclosed assets		6,301			4,294			4,077			8,290			9,344
Total underperforming assets	$	482,269		$	456,333		$	448,851		$	353,722		$	340,161
Classified and Criticized Assets:
Nonaccrual loans	$	469,211		$	447,979		$	443,597		$	340,181		$	328,645
Substandard loans (still accruing)		1,479,630			1,073,413			1,074,243			841,087			626,157
Loans 90 days and over (still accruing)		6,757			4,060			1,177			5,251			2,172
Total classified loans – “problem loans”		1,955,598			1,525,452			1,519,017			1,186,519			956,974
Other classified assets		53,239			58,954			59,485			60,772			54,392
Special Mention		828,314			908,630			837,543			967,655			827,419
Total classified and criticized assets	$	2,837,151		$	2,493,036		$	2,416,045		$	2,214,946		$	1,838,785
Loans 30-89 days past due (still accruing)	$	72,517		$	93,141		$	91,750		$	51,712		$	53,112
Nonaccrual loans / EOP loans1		1.29	%		1.23	%		1.22	%		0.94	%		0.98	%
ACL / nonaccrual loans		90	%		92	%		92	%		115	%		105	%
Under-performing assets/EOP loans1		1.32	%		1.26	%		1.23	%		0.98	%		1.01	%
Under-performing assets/EOP assets		0.90	%		0.85	%		0.84	%		0.67	%		0.69	%
30+ day delinquencies/EOP loans1		0.22	%		0.27	%		0.26	%		0.16	%		0.16	%
1 Excludes loans held-for-sale.

        

        

Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Earnings Per Share:
Net income applicable to common shares	$	140,625		$	149,839		$	139,768		$	117,196		$	116,250
Adjustments:
Merger-related charges		5,856			8,117			6,860			19,440			2,908
Tax effect1		(1,089	)		(2,058	)		(1,528	)		(4,413	)		(710	)
Merger-related charges, net		4,767			6,059			5,332			15,027			2,198
Debt securities (gains) losses		76			122			76			(2	)		16
Tax effect1		(14	)		(31	)		(17	)		1			(4	)
Debt securities (gains) losses, net		62			91			59			(1	)		12
Separation expense		—			—			2,646			—			—
Tax effect1		—			—			(589	)		—			—
Separation expense, net		—			—			2,057			—			—
CECL Day 1 non-PCD provision expense		—			—			—			15,312			—
Tax effect1		—			—			—			(3,476	)		—
CECL Day 1 non-PCD provision expense, net		—			—			—			11,836			—
Distribution of excess pension assets		—			—			—			—			13,318
Tax effect1		—			—			—			—			(3,250	)
Distribution excess pension assets, net		—			—			—			—			10,068
FDIC special assessment		—			—			—			—			2,994
Tax effect1		—			—			—			—			(731	)
FDIC special assessment, net		—			—			—			—			2,263
Total adjustments, net		4,829			6,150			7,448			26,862			14,541
Net income applicable to common shares, adjusted	$	145,454		$	155,989		$	147,216		$	144,058		$	130,791
Weighted average diluted common shares outstanding		321,016			318,803			317,331			316,461			292,207
EPS, diluted	$	0.44		$	0.47		$	0.44		$	0.37		$	0.40
Adjusted EPS, diluted	$	0.45		$	0.49		$	0.46		$	0.46		$	0.45
NIM:
Net interest income	$	387,643		$	394,180		$	391,724		$	388,421		$	356,458
Add: FTE adjustment2		5,360			5,777			6,144			6,340			6,253
Net interest income (FTE)	$	393,003		$	399,957		$	397,868		$	394,761		$	362,711
Average earning assets	$	48,077,320		$	48,411,803		$	47,905,463		$	47,406,849		$	44,175,079
NIM (GAAP)		3.23	%		3.26	%		3.27	%		3.28	%		3.23	%
NIM (FTE)		3.27	%		3.30	%		3.32	%		3.33	%		3.28	%
Refer to last page of Non-GAAP reconciliations for footnotes.

Non-GAAP Measures (unaudited)
($ in thousands)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
PPNR:
Net interest income (FTE)2	$	393,003		$	399,957		$	397,868		$	394,761		$	362,711
Add: Noninterest income		93,794			95,766			94,138			87,271			77,522
Total revenue (FTE)		486,797			495,723			492,006			482,032			440,233
Less: Noninterest expense		(268,471	)		(276,824	)		(272,283	)		(282,999	)		(262,317	)
PPNR	$	218,326		$	218,899		$	219,723		$	199,033		$	177,916
Adjustments:
Debt securities (gains) losses	$	76		$	122		$	76		$	(2	)	$	16
Noninterest income adjustments		76			122			76			(2	)		16
Adjusted noninterest income		93,870			95,888			94,214			87,269			77,538
Adjusted revenue	$	486,873		$	495,845		$	492,082		$	482,030		$	440,249
Adjustments:
Merger-related charges	$	5,856		$	8,117		$	6,860		$	19,440		$	2,908
Separation expense		—			—			2,646			—			—
Distribution of excess pension assets		—			—			—			—			13,318
FDIC Special Assessment		—			—			—			—			2,994
Noninterest expense adjustments		5,856			8,117			9,506			19,440			19,220
Adjusted total noninterest expense		(262,615	)		(268,707	)		(262,777	)		(263,559	)		(243,097	)
Adjusted PPNR	$	224,258		$	227,138		$	229,305		$	218,471		$	197,152
Efficiency Ratio:
Noninterest expense	$	268,471		$	276,824		$	272,283		$	282,999		$	262,317
Less: Amortization of intangibles		(6,830	)		(7,237	)		(7,411	)		(7,425	)		(5,455	)
Noninterest expense, excl. amortization of intangibles		261,641			269,587			264,872			275,574			256,862
Less: Amortization of tax credit investments		(3,424	)		(4,556	)		(3,277	)		(2,747	)		(2,749	)
Less: Noninterest expense adjustments		(5,856	)		(8,117	)		(9,506	)		(19,440	)		(19,220	)
Adjusted noninterest expense, excluding amortization	$	252,361		$	256,914		$	252,089		$	253,387		$	234,893
Total revenue (FTE)2	$	486,797		$	495,723		$	492,006		$	482,032		$	440,233
Less: Debt securities (gains) losses		76			122			76			(2	)		16
Total adjusted revenue	$	486,873		$	495,845		$	492,082		$	482,030		$	440,249
Efficiency Ratio		53.7	%		54.4	%		53.8	%		57.2	%		58.3	%
Adjusted Efficiency Ratio		51.8	%		51.8	%		51.2	%		52.6	%		53.4	%
Refer to last page of Non-GAAP reconciliations for footnotes.

Non-GAAP Measures (unaudited)
($ in thousands)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
ROAE and ROATCE:
Net income applicable to common shares	$	140,625		$	149,839		$	139,768		$	117,196		$	116,250
Amortization of intangibles		6,830			7,237			7,411			7,425			5,455
Tax effect1		(1,708	)		(1,809	)		(1,853	)		(1,856	)		(1,364	)
Amortization of intangibles, net		5,122			5,428			5,558			5,569			4,091
Net income applicable to common shares, excluding intangibles amortization		145,747			155,267			145,326			122,765			120,341
Total adjustments, net (see pg.12)		4,829			6,150			7,448			26,862			14,541
Adjusted net income applicable to common shares, excluding intangibles amortization	$	150,576		$	161,417		$	152,774		$	149,627		$	134,882
Average shareholders’ equity	$	6,416,485		$	6,338,953		$	6,190,071		$	5,978,976		$	5,565,542
Less: Average preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Average shareholders’ common equity	$	6,172,766		$	6,095,234		$	5,946,352		$	5,735,257		$	5,321,823
Average goodwill and other intangible assets		(2,292,526	)		(2,301,177	)		(2,304,597	)		(2,245,405	)		(2,098,338	)
Average tangible shareholder’s common equity	$	3,880,240		$	3,794,057		$	3,641,755		$	3,489,852		$	3,223,485
ROAE		9.1	%		9.8	%		9.4	%		8.2	%		8.7	%
ROAE, adjusted		9.4	%		10.2	%		9.9	%		10.0	%		9.8	%
ROATCE		15.0	%		16.4	%		16.0	%		14.1	%		14.9	%
ROATCE, adjusted		15.5	%		17.0	%		16.8	%		17.1	%		16.7	%
Refer to last page of Non-GAAP reconciliations for footnotes.

Non-GAAP Measures (unaudited)
($ in thousands)
	As of
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Tangible Common Equity:
Shareholders’ equity	$	6,534,654		$	6,340,350		$	6,367,298		$	6,075,072		$	5,595,408
Less: Preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Shareholders’ common equity	$	6,290,935		$	6,096,631		$	6,123,579		$	5,831,353		$	5,351,689
Less: Goodwill and other intangible assets		(2,289,268	)		(2,296,098	)		(2,305,084	)		(2,306,204	)		(2,095,511	)
Tangible shareholders’ common equity	$	4,001,667		$	3,800,533		$	3,818,495		$	3,525,149		$	3,256,178
Total assets	$	53,877,944		$	53,552,272		$	53,602,293		$	53,119,645		$	49,534,918
Less: Goodwill and other intangible assets		(2,289,268	)		(2,296,098	)		(2,305,084	)		(2,306,204	)		(2,095,511	)
Tangible assets	$	51,588,676		$	51,256,174		$	51,297,209		$	50,813,441		$	47,439,407
Risk-weighted assets3	$	40,266,670		$	40,314,805		$	40,584,608		$	40,627,117		$	37,845,139
Tangible common equity to tangible assets		7.76	%		7.41	%		7.44	%		6.94	%		6.86	%
Tangible common equity to risk-weighted assets3		9.94	%		9.43	%		9.41	%		8.68	%		8.60	%
Tangible Common Book Value:
Common shares outstanding		319,236			318,980			318,955			318,969			293,330
Tangible common book value	$	12.54		$	11.91		$	11.97		$	11.05		$	11.10
1 Tax-effect calculations use management’s estimate of the full year FTE tax rates (federal + state).
2 Calculated using the federal statutory tax rate in effect of 21% for all periods.
3 March 31, 2025 figures are preliminary.

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