Skip to main content

Old National's 3rd Quarter Results Supported by Strong Deposit Franchise, Ample Capital, and Expense Discipline

EVANSVILLE, Ind., Oct. 24, 2023 (GLOBE NEWSWIRE) --

Old National Bancorp (NASDAQ: ONB) reports 3Q23 net income applicable to common shares of $143.8 million, diluted EPS of $0.49; $149.3 million and $0.51 on an adjusted1 basis, respectively.

CEO COMMENTARY:

"With a nearly 3% quarterly increase in total deposits, Old National once again demonstrated the strength and stability of our deposit franchise," said CEO Jim Ryan. "Additionally, our strong capital and liquidity position, disciplined expense management, and excellent credit metrics continue to position Old National to pursue our growth strategy while focusing intently on serving our clients and strengthening the communities we serve."


THIRD
QUARTER HIGHLIGHTS2:

Net Income
  • Net income applicable to common shares of $143.8 million; adjusted net income applicable to common shares1 of $149.3 million
  • Earnings per diluted common share ("EPS") of $0.49; adjusted EPS1 of $0.51
  
Net Interest Income/NIM
  • Net interest income on a fully taxable equivalent basis1 of $380.9 million
  • Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.49%, down 11 basis points ("bps")
  
Operating Performance
  • Pre-provision net revenue1 (“PPNR”) of $217.1 million; adjusted PPNR1 of $223.6 million
  • Noninterest expense of $244.8 million; adjusted noninterest expense1 of $238.5 million
  • Efficiency ratio1 of 51.7%; adjusted efficiency ratio1 of 49.7%
  
Deposits and Funding
  • Period-end total deposits of $37.3 billion, up 2.8%; core deposits up 3.1%
  • Granular low-cost deposit franchise; total deposit costs of 161 bps and a cycle to date (2Q22-3Q23) total deposit beta of 30% (interest-bearing deposit beta of 42%)
  
Loans and Credit Quality
  • End-of-period total loans3 of $32.7 billion, up 0.5%; up 1.7% excluding commercial loan sales
  • Provision for credit losses4 ("provision") of $19.1 million
  • Net charge-offs of $19.7 million, or 24 bps of average loans; includes $12 million, or 15 bps, related to an isolated commercial & industrial ("C&I") credit that is not indicative of broader credit concerns in the portfolio
  • 30+ day delinquencies of 0.18% and non-performing loans of 0.80% of total loans
  
Return Profile & Capital
  • Return on average tangible common equity1 of 20.2%; adjusted return on average tangible common equity1 of 20.9%
  
Notable Items
  • $6.3 million of merger-related charges

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   Comparisons are on a linked-quarter basis, unless otherwise noted   3 Includes loans held-for-sale   4 Includes the provision for unfunded commitments Uninsured and uncollateralized deposits include the estimate of Old National Bank federally uninsured deposits for regulatory purposes, as adjusted for $1.5 billion of affiliate deposits and $4.5 billion of collateralized or otherwise insured deposits


RESULTS OF OPERATIONS

Old National reported third quarter 2023 net income applicable to common shares of $143.8 million, or $0.49 per diluted common share.

Included in the third quarter were pre-tax charges of $6.3 million related to the February 15, 2022 merger with First Midwest Bancorp, Inc. ("First Midwest"). Excluding these transactions and realized debt securities losses from the current quarter, adjusted net income was $149.3 million, or $0.51 per diluted common share.

DEPOSITS AND FUNDING
Growth in low-cost deposits including normal seasonal patterns in public funds.

  • Period-end total deposits were $37.3 billion at September 30, 2023, up $1.0 billion, or 2.8%; core deposits increased 3.1%
    • Reflect continuing effective competition for new client relationships.
    • Include normal seasonal patterns in public funds; increased $320 million.
  • On average, total deposits for the third quarter were $36.7 billion, an increase of 4.4%.
  • Granular low-cost deposit franchise; total deposit costs of 161 bps and a cycle to date total deposit beta of 30% (interest-bearing deposit beta of 42%).
  • Deposits that were either insured or collateralized5 at September 30, 2023 were more than 70% of total deposits.
  • A loan to deposit ratio of 88% at September 30, 2023, combined with existing funding sources provides strong liquidity.

LOANS
Broad-based disciplined commercial loan growth.

  • Period-end total loans3 were $32.7 billion at September 30, 2023, up 0.5% from June 30, 2023 and up 1.7% excluding commercial loan sales of $389 million.
  • Total commercial loan production in the third quarter was $1.5 billion; period-end commercial pipeline totaled $2.0 billion, down from $3.1 billion at June 30, 2023.
  • Average total loans in the third quarter were $32.7 billion, an increase of $394.6 million from the second quarter of 2023.

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

  • Provision4 expense in the third quarter of 2023 was $19.1 million, compared to $14.8 million in the second quarter of 2023, reflecting net charge-offs, loan growth, as well as economic factors.
  • Net charge-offs in the third quarter were $19.7 million, or 24 bps of average loans compared to net charge-offs of 13 bps of average loans in the second quarter of 2023; includes $12.2 million, or 15 bps, related to a single C&I credit that is not representative of broader credit concerns.
  • 30+ day delinquencies as a percentage of loans were 0.18% at the end of the third quarter of 2023, compared to 0.12% at the end of the second quarter of 2023.
  • Non-performing loans as a percentage of total loans were 0.80% compared to 0.91% for the second quarter of 2023.
  • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of September 30, 2023, the remaining discount on these acquired loans was $83.0 million.
  • The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $336.9 million, or 1.03% of total loans at September 30, 2023, compared to $337.6 million, or 1.04% of total loans at June 30, 2023.

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

  • Net interest income on a fully taxable equivalent basis decreased to $380.9 million in the third quarter of 2023 compared to $388.0 million in the second quarter of 2023, driven by higher funding costs, partly offset by loan growth and higher rates on interest-earning assets.
  • Net interest margin on a fully taxable equivalent basis decreased 11 bps to 3.49% compared to the second quarter of 2023.
  • Accretion income on loans and borrowings was $7.5 million, or 7 bps of net interest margin, in the third quarter of 2023 compared to $6.6 million, or 6 bps of net interest margin, in the second quarter of 2023.
  • Cost of total deposits was 1.61%, increasing 46 bps and the cost of total interest-bearing deposits increased 56 bps to 2.22% in the third quarter of 2023.

NONINTEREST INCOME
Increases in all fee income categories offset by lower company-owned life insurance and other income.

  • Total noninterest income for the third quarter of 2023 was $81.0 million.
  • Excluding realized debt securities gains/losses for both periods, adjusted noninterest income for the third quarter was down 1.0% compared to the second quarter of 2023, due to lower company-owned life insurance and other income partially offset by increases in all fee income categories.

NONINTEREST EXPENSE
Disciplined expense management.

  • Noninterest expense for the third quarter of 2023 was $244.8 million and included $6.3 million of merger-related charges.
  • Excluding these items, adjusted noninterest expense for the third quarter was $238.5 million, compared to $240.6 million for the second quarter of 2023; decrease was driven by higher salary and employee benefits for the second quarter of 2023 resulting from performance-driven incentive accruals; other expense higher due primarily to a single operational loss.
  • The efficiency ratio1 was 51.7%, while the adjusted efficiency ratio1 was 49.7% for the third quarter of 2023 compared to 51.2% and 49.4%, respectively, for the second quarter of 2023.

INCOME TAXES

  • Income tax expense in the third quarter of 2023 was $44.3 million, resulting in an effective tax rate of 23.1% compared to 23.4% in the second quarter of 2023. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 25.3% in the third quarter compared to 25.2% in the second quarter.
  • Income tax expense included $3.0 million of tax credit benefit.

CAPITAL
Capital ratios remain strong.

  • All regulatory capital ratios grew in the quarter with preliminary total risk-based capital up 18 bps to 12.32% and preliminary regulatory Tier 1 capital up 27 bps to 11.06%, driven by retained earnings.
  • Tangible common equity to tangible assets was 6.15% at the end of the third quarter compared to 6.33% in the second quarter of 2023.

CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, October 24, 2023, to review third quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (888) 300-3045 or International (646) 568-1027, Access code 5258325. A replay of the call will also be available from approximately noon Central Time on October 24, 2023 through November 8, 2023. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199, Access code 5258325.

ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank, which is the sixth largest commercial bank headquartered in the Midwest. With approximately $49 billion of assets and $28 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the U.S. Tracing our roots to 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients and in the communities it serves. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment, and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.

USE OF NON-GAAP FINANCIAL MEASURES
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, and return on average tangible common equity, all adjusted for certain notable items. These items include merger-related charges associated with completed acquisitions, gains/losses on sales of debt securities, expenses related to the tragic April 10 event at our downtown Louisville location ("Louisville expenses"), property optimization charges, gain on sale of health savings accounts and the current expected credit loss ("CECL") Day 1 non-PCD provision 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 and the CECL Day 1 non-PCD provision expense 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 pre-provision net revenues, adjusted 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 and property optimization charges, Louisville expenses, as well as adjusted noninterest income, which excludes the gain on sale of health savings accounts and gains/losses on sales of debt securities. 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 previously provided tables and 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 SEC, in press releases, and in oral and written statements made by us or with our approval 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 the words "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "should," 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. Factors that might cause such a difference include, but are 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; uncertainty about the discontinued use of LIBOR and the transition to an alternative rate; 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, 2022 and other filings with the Securities and Exchange Commission. 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,
 2023202320232022 2022  20232022
Income Statement        
Net interest income$375,086 $382,171 $381,488 $391,090 $376,589  $1,138,745 $936,846 
FTE adjustment1,4 5,837  5,825  5,666  5,378  4,950   17,328  13,036 
Net interest income - tax equivalent basis4 380,923  387,996  387,154  396,468  381,539   1,156,073  949,882 
Provision for credit losses2 19,068  14,787  13,437  11,408  15,490   47,292  133,391 
Noninterest income 80,938  81,629  70,681  165,037  80,385   233,248  234,742 
Noninterest expense2 244,776  246,584  250,711  282,675  262,444   742,071  755,508 
Net income available to common shareholders$143,842 $151,003 $142,566 $196,701 $136,119  $437,411 $217,468 
Per Common Share Data        
Weighted average diluted shares 291,717  291,266  292,756  293,131  292,483   291,809  271,123 
EPS, diluted$0.49 $0.52 $0.49 $0.67 $0.47  $1.50 $0.80 
Cash dividends 0.14  0.14  0.14  0.14  0.14   0.42  0.42 
Dividend payout ratio3 29% 27% 29% 21% 30%  28% 53%
Book value$17.07 $17.25 $17.24 $16.68 $16.05  $17.07 $16.05 
Stock price 14.54  13.94  14.42  17.98  16.47   14.54  16.47 
Tangible book value4 9.87  10.03  9.98  9.42  8.75   9.87  8.75 
Performance Ratios        
ROAA 1.22% 1.29% 1.25% 1.74% 1.22%  1.25% 0.72%
ROAE 11.4% 12.0% 11.6% 16.8% 11.1%  11.7% 6.3%
ROATCE4 20.2% 21.4% 21.0% 31.5% 20.5%  20.8% 11.5%
NIM (FTE) 3.49% 3.60% 3.69% 3.85% 3.71%  3.59% 3.34%
Efficiency ratio4 51.7% 51.2% 52.8% 49.1% 55.3%  51.9% 62.2%
Efficiency ratio (prior presentation)5N/AN/AN/AN/A 56.2% N/A 63.5%
NCOs to average loans 0.24% 0.13% 0.21% 0.05% 0.10%  0.19% 0.06%
ACL on loans to EOP loans 0.93% 0.93% 0.94% 0.98% 0.99%  0.93% 0.99%
ACL6 to EOP loans 1.03% 1.04% 1.05% 1.08% 1.08%  1.03% 1.08%
NPLs to EOP loans 0.80% 0.91% 0.74% 0.81% 0.81%  0.80% 0.81%
Balance Sheet (EOP)        
Total loans$32,577,834 $32,432,473 $31,822,374 $31,123,641 $30,528,933  $32,577,834 $30,528,933 
Total assets 49,059,448  48,496,755  47,842,644  46,763,372  46,215,526   49,059,448  46,215,526 
Total deposits 37,252,676  36,231,315  34,917,792  35,000,830  36,053,663   37,252,676  36,053,663 
Total borrowed funds 5,556,010  6,034,008  6,740,454  5,586,314  4,264,750   5,556,010  4,264,750 
Total shareholders' equity 5,239,537  5,292,095  5,277,426  5,128,595  4,943,383   5,239,537  4,943,383 
Capital Ratios        
Risk-based capital ratios (EOP):        
Tier 1 common equity 10.41% 10.14% 9.98% 10.03% 9.88%  10.41% 9.88%
Tier 1 capital 11.06% 10.79% 10.64% 10.71% 10.58%  11.06% 10.58%
Total capital 12.32% 12.14% 11.96% 12.02% 11.84%  12.32% 11.84%
Leverage ratio (average assets) 8.70% 8.59% 8.53% 8.52% 8.26%  8.70% 8.26%
Equity to assets (averages)4 10.88% 10.96% 11.00% 10.70% 11.18%  10.95% 11.43%
TCE to TA4 6.15% 6.33% 6.37% 6.18% 5.82%  6.15% 5.82%
Nonfinancial Data        
Full-time equivalent employees 3,981  4,021  4,023  3,967  4,008   3,981  4,008 
Banking centers 257  256  256  263  263   257  263 
1 Calculated using the federal statutory tax rate in effect of 21% for all periods.
2 Provision for unfunded commitments is included in the provision for credit losses. The reclassification of the provision for unfunded commitments out of other expense as a component of noninterest expense was made to amounts prior to December 31, 2022 to conform to the current period presentation.
3 Cash dividends per common share divided by net income per common share (basic).
4 Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
September 30, 2023 capital ratios are preliminary.
5 Presented as calculated prior to December 31, 2022, which included the provision for unfunded commitments in noninterest expense. Management believes that removing the provision for unfunded commitments from this metric enhances comparability for peer comparison purposes.
6 Includes the allowance for credit losses on loans and unfunded 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 ALL - Allowance for loan losses 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,
 20232023202320222022 20232022
Interest income$576,519 $544,902 $495,649 $457,821 $406,518  $1,617,070 $996,381 
Less: interest expense 201,433  162,731  114,161  66,731  29,929   478,325  59,535 
Net interest income 375,086  382,171  381,488  391,090  376,589   1,138,745  936,846 
Provision for credit losses1 19,068  14,787  13,437  11,408  15,490   47,292  133,391 
Net interest income after provision for credit losses 356,018  367,384  368,051  379,682  361,099   1,091,453  803,455 
Wealth and investment services fees 26,687  26,521  26,920  25,668  25,359   80,128  75,183 
Service charges on deposit accounts 18,524  17,751  17,003  18,109  20,042   53,278  54,392 
Debit card and ATM fees 10,818  10,653  9,982  10,798  10,608   31,453  29,429 
Mortgage banking revenue 5,063  4,165  3,400  3,888  5,360   12,628  19,127 
Capital markets income 5,891  6,173  6,939  5,377  8,906   19,003  20,609 
Company-owned life insurance 3,740  4,698  3,186  3,108  3,361   11,624  11,456 
Gain on sale of health savings accounts       90,673        
Other income 10,456  11,651  8,467  7,589  6,921   30,574  24,461 
Gains (losses) on sales of debt securities (241) 17  (5,216) (173) (172)  (5,440) 85 
Total noninterest income 80,938  81,629  70,681  165,037  80,385   233,248  234,742 
Salaries and employee benefits 131,541  135,810  137,364  142,459  147,203   404,715  433,167 
Occupancy 25,795  26,085  28,282  26,488  26,418   80,162  73,933 
Equipment 8,284  7,721  7,389  7,591  7,328   23,394  20,046 
Marketing 9,448  9,833  9,417  8,508  10,361   28,698  23,756 
Technology 20,592  20,056  19,202  19,951  20,269   59,850  64,914 
Communication 4,075  4,232  4,461  4,159  5,392   12,768  14,687 
Professional fees 5,956  6,397  6,732  6,360  6,559   19,085  32,686 
FDIC assessment 9,000  9,624  10,404  5,809  6,249   29,028  13,523 
Amortization of intangibles 6,040  6,060  6,186  6,787  7,089   18,286  19,070 
Amortization of tax credit investments 2,644  2,762  2,761  5,258  2,662   8,167  5,703 
Property optimization   242  1,317  26,818     1,559   
Other expense1 21,401  17,762  17,196  22,487  22,914   56,359  54,023 
Total noninterest expense 244,776  246,584  250,711  282,675  262,444   742,071  755,508 
Income before income taxes 192,180  202,429  188,021  262,044  179,040   582,630  282,689 
Income tax expense 44,304  47,393  41,421  61,309  38,887   133,118  55,137 
Net income$147,876 $155,036 $146,600 $200,735 $140,153  $449,512 $227,552 
Preferred dividends (4,034) (4,033) (4,034) (4,034) (4,034)  (12,101) (10,084)
Net income applicable to common shares$143,842 $151,003 $142,566 $196,701 $136,119  $437,411 $217,468 
         
EPS, diluted$0.49 $0.52 $0.49 $0.67 $0.47  $1.50 $0.80 
Weighted Average Common Shares Outstanding        
Basic 290,648  290,559  291,088  291,012  290,961   290,763  269,843 
Diluted 291,717  291,266  292,756  293,131  292,483   291,809  271,123 
Common shares outstanding (EOP) 292,586  292,597  291,922  292,903  292,880   292,586  292,880 
         
1 Provision for unfunded commitments is included in the provision for credit losses. The reclassification of the provision for unfunded commitments out of other expense as a component of noninterest expense was made to amounts prior to December 31, 2022 to conform to the current period presentation.


 
End of Period Balance Sheet (unaudited)
($ in thousands)
 September 30,June 30,March 31,December 31,September 30,
 20232023202320222022
Assets     
Cash and due from banks$381,343 $473,023 $386,879 $453,432 $466,846 
Money market and other interest-earnings investments 1,282,087  724,863  727,056  274,980  334,765 
Investments:     
Treasury and government-sponsored agencies 2,515,249  2,309,285  2,236,412  2,195,175  2,186,551 
Mortgage-backed securities 4,906,290  5,168,458  5,395,680  5,476,719  5,584,241 
States and political subdivisions 1,705,200  1,760,725  1,785,073  1,827,164  1,829,561 
Other securities 751,404  802,323  826,575  730,476  693,303 
Total investments 9,878,143  10,040,791  10,243,740  10,229,534  10,293,656 
Loans held-for-sale, at fair value 122,033  114,369  10,584  11,926  19,748 
Loans:     
Commercial 9,333,448  9,698,241  9,751,875  9,508,904  9,311,148 
Commercial and agriculture real estate 13,916,221  13,450,209  12,908,380  12,457,070  12,227,888 
Residential real estate 6,696,288  6,684,480  6,568,666  6,460,441  6,267,306 
Consumer 2,631,877  2,599,543  2,593,453  2,697,226  2,722,591 
Total loans 32,577,834  32,432,473  31,822,374  31,123,641  30,528,933 
Allowance for credit losses on loans (303,982) (300,555) (298,711) (303,671) (302,254)
Premises and equipment, net 565,607  564,299  566,758  557,307  588,021 
Operating lease right-of-use assets 179,284  184,700  183,687  189,714  187,626 
Goodwill and other intangible assets 2,106,835  2,112,875  2,118,935  2,125,121  2,135,792 
Company-owned life insurance 774,517  771,753  770,471  768,552  767,089 
Other assets 1,495,747  1,378,164  1,310,871  1,332,836  1,195,304 
  Total assets$49,059,448 $48,496,755 $47,842,644 $46,763,372 $46,215,526 
      
Liabilities and Equity     
Noninterest-bearing demand deposits$10,091,352 $10,532,838 $10,995,083 $11,930,798 $12,400,077 
Interest-bearing:     
Checking and NOW accounts 7,495,417  7,654,202  7,903,520  8,340,955  8,963,014 
Savings accounts 5,296,985  5,578,323  6,030,255  6,326,158  6,616,512 
Money market accounts 8,793,218  7,200,288  5,867,239  5,389,139  5,602,729 
Other time deposits 4,398,182  4,012,813  3,361,979  2,775,991  2,393,083 
Total core deposits 36,075,154  34,978,464  34,158,076  34,763,041  35,975,415 
Brokered deposits 1,177,522  1,252,851  759,716  237,789  78,248 
Total deposits 37,252,676  36,231,315  34,917,792  35,000,830  36,053,663 
      
Federal funds purchased and interbank borrowings 918  136,060  618,955  581,489  301,031 
Securities sold under agreements to repurchase 279,061  311,447  393,018  432,804  438,053 
Federal Home Loan Bank advances 4,412,576  4,771,183  4,981,612  3,829,018  2,804,617 
Other borrowings 863,455  815,318  746,869  743,003  721,049 
Total borrowed funds 5,556,010  6,034,008  6,740,454  5,586,314  4,264,750 
Operating lease liabilities 199,937  206,178  205,249  211,964  207,725 
Accrued expenses and other liabilities 811,288  733,159  701,723  835,669  746,005 
Total liabilities 43,819,911  43,204,660  42,565,218  41,634,777  41,272,143 
Preferred stock, common stock, surplus, and retained earnings 6,208,352  6,100,728  5,985,784  5,915,017  5,751,833 
Accumulated other comprehensive income (loss), net of tax (968,815) (808,633) (708,358) (786,422) (808,450)
Total shareholders' equity 5,239,537  5,292,095  5,277,426  5,128,595  4,943,383 
Total liabilities and shareholders' equity$49,059,448 $48,496,755 $47,842,644 $46,763,372 $46,215,526 
 


             
Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
             
  Three Months Ended Three Months Ended Three Months Ended
  September 30, 2023 June 30, 2023 September 30, 2022
  AverageIncome1/Yield/ AverageIncome1/Yield/ AverageIncome1/Yield/
Earning Assets: BalanceExpenseRate BalanceExpenseRate BalanceExpenseRate
Money market and other interest-earning investments $980,813 $13,1945.34% $724,601 $8,9664.96% $514,362 $9350.72%
Investments:            
Treasury and government-sponsored agencies  2,376,864  23,0373.88%  2,222,269  19,3553.48%  2,326,070  13,2122.27%
Mortgage-backed securities  5,079,091  33,2372.62%  5,301,084  34,2912.59%  5,891,283  36,1572.45%
States and political subdivisions  1,737,037  14,2203.27%  1,768,897  14,3963.26%  1,829,322  14,6313.20%
Other securities  793,196  10,1275.11%  824,482  9,9954.85%  718,735  6,7813.77%
Total investments  9,986,188  80,6213.23%  10,116,732  78,0373.09%  10,765,410  70,7812.63%
Loans:2            
Commercial  9,612,102  163,8696.82%  9,862,728  163,7216.64%  9,045,009  113,4915.02%
Commercial and agriculture real estate  13,711,156  219,5756.41%  13,164,390  199,2876.06%  11,929,892  136,7804.59%
Residential real estate loans  6,712,269  62,7753.74%  6,643,254  60,7183.66%  6,189,503  56,4323.65%
Consumer  2,614,928  42,3226.42%  2,585,493  39,9986.21%  2,735,850  33,0494.79%
Total loans  32,650,455  488,5415.98%  32,255,865  463,7245.75%  29,900,254  339,7524.54%
             
Total earning assets $43,617,456 $582,3565.34% $43,097,198 $550,7275.11% $41,180,026 $411,4683.99%
             
Less: Allowance for credit losses on loans  (300,071)    (301,311)    (290,215)  
             
Non-earning Assets:            
Cash and due from banks $382,755    $418,972    $503,841   
Other assets  4,960,383     4,884,694     4,522,171   
             
   Total assets $48,660,523    $48,099,553    $45,915,823   
             
Interest-Bearing Liabilities:            
Checking and NOW accounts $7,515,439 $25,5311.35% $7,881,863 $24,3581.24% $8,681,392 $5,7510.26%
Savings accounts  5,414,775  4,2680.31%  5,785,603  3,2470.23%  6,733,465  5470.03%
Money market accounts  7,979,999  65,5493.26%  6,084,963  35,3582.33%  5,344,567  2,0720.15%
Other time deposits  4,229,692  37,1103.48%  3,680,029  26,6332.90%  2,463,573  2,1680.35%
Total interest-bearing core deposits  25,139,905  132,4582.09%  23,432,458  89,5961.53%  23,222,997  10,5380.18%
Brokered deposits  1,183,228  14,9705.02%  948,397  11,3784.81%  44,579  2822.51%
Total interest-bearing deposits  26,323,133  147,4282.22%  24,380,855  100,9741.66%  23,267,576  10,8200.18%
             
Federal funds purchased and interbank borrowings  62,921  9105.74%  441,145  5,6555.14%  122,311  7202.34%
Securities sold under agreements to repurchase  302,305  7100.93%  340,178  9001.06%  436,225  1060.10%
Federal Home Loan Bank advances  4,537,250  40,3823.53%  5,283,728  45,0883.42%  3,025,844  13,0271.71%
Other borrowings  841,307  12,0035.66%  796,536  10,1145.09%  676,874  5,2563.08%
Total borrowed funds  5,743,783  54,0053.73%  6,861,587  61,7573.61%  4,261,254  19,1091.78%
             
Total interest-bearing liabilities $32,066,916 $201,4332.49% $31,242,442 $162,7312.09% $27,528,830 $29,9290.43%
             
Noninterest-Bearing Liabilities and Shareholders' Equity           
Demand deposits $10,338,267    $10,741,646    $12,575,011   
Other liabilities  961,268     841,663     677,829   
Shareholders' equity  5,294,072     5,273,802     5,134,153   
             
Total liabilities and shareholders' equity $48,660,523    $48,099,553    $45,915,823   
             
Net interest rate spread   2.85%   3.02%   3.56%
             
Net interest margin (GAAP)   3.44%   3.55%   3.66%
             
Net interest margin (FTE)3   3.49%   3.60%   3.71%
             
FTE adjustment  $5,837   $5,825   $4,950 
             
1 Interest income is reflected on a FTE. 
2 Includes loans held-for-sale. 
3 Represents a non-GAAP financial measure. Refer 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, 2023 September 30, 2022
  AverageIncome1/Yield/ AverageIncome1/Yield/
Earning Assets: BalanceExpenseRate BalanceExpenseRate
Money market and other interest-earning investments $736,225 $25,2584.59% $976,579 $3,0730.42%
Investments:        
Treasury and government-sponsored agencies  2,266,177  58,9233.47%  2,336,897  33,2491.90%
Mortgage-backed securities  5,268,509  102,6182.60%  5,593,341  94,0672.24%
States and political subdivisions  1,771,155  43,3063.26%  1,801,053  42,8393.17%
Other securities  785,474  28,7264.88%  682,937  16,3923.20%
Total investments $10,091,315 $233,5733.09% $10,414,228 $186,5472.39%
Loans:2        
Commercial  9,644,541  475,2106.57%  7,888,730  264,5174.47%
Commercial and agriculture real estate  13,180,509  598,3376.05%  10,753,988  327,7334.06%
Residential real estate loans  6,626,551  181,5923.65%  5,369,844  142,1053.53%
Consumer  2,612,519  120,4286.16%  2,521,121  85,4424.53%
Total loans  32,064,120  1,375,5675.72%  26,533,683  819,7974.12%
         
Total earning assets $42,891,660 $1,634,3985.08% $37,924,490 $1,009,4173.55%
         
Less: Allowance for credit losses on loans  (301,909)    (247,558)  
         
Non-earning Assets:        
Cash and due from banks $412,998    $350,848   
Other assets  4,917,592     4,249,986   
         
   Total assets $47,920,341    $42,277,766   
         
Interest-Bearing Liabilities:        
Checking and NOW accounts $7,793,561 $69,2481.19% $7,977,524 $8,1330.14%
Savings accounts  5,791,780  9,7450.22%  6,295,628  1,8090.04%
Money market accounts  6,577,317  120,9172.46%  4,819,252  3,7910.11%
Other time deposits  3,660,156  79,0322.89%  2,236,206  5,1120.31%
Total interest-bearing core deposits  23,822,814  278,9421.57%  21,328,610  18,8450.12%
Brokered deposits  879,886  32,0534.87%  17,505  3562.72%
Total interest-bearing deposits  24,702,700  310,9951.68%  21,346,115  19,2010.12%
         
Federal funds purchased and interbank borrowings  306,480  11,4044.97%  41,993  7222.30%
Securities sold under agreements to repurchase  351,362  2,3890.91%  450,966  2870.09%
Federal Home Loan Bank advances  4,699,074  123,4663.51%  2,891,347  25,9151.20%
Other borrowings  806,575  30,0714.98%  574,589  13,4103.12%
Total borrowed funds  6,163,491  167,3303.63%  3,958,895  40,3341.36%
         
Total interest-bearing liabilities  30,866,191  478,3252.07%  25,305,010  59,5350.31%
         
Noninterest-Bearing Liabilities and Shareholders' Equity       
Demand deposits $10,864,375    $11,540,293   
Other liabilities  944,619     601,619   
Shareholders' equity  5,245,156     4,830,844   
         
Total liabilities and shareholders' equity $47,920,341    $42,277,766   
         
Net interest rate spread   3.01%   3.24%
         
Net interest margin (GAAP)   3.54%   3.29%
         
Net interest margin (FTE)3   3.59%   3.34%
         
FTE adjustment  $17,328   $13,036 
         
1 Interest income is reflected on a FTE.
2 Includes loans held-for-sale.
3 Represents a non-GAAP financial measure. Refer 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,
 20232023202320222022 20232022
Allowance for credit losses:        
Beginning allowance for credit losses on loans$300,555 $298,711 $303,671 $302,254 $288,003  $303,671 $107,341 
Allowance established for acquired PCD loans         10,558     89,089 
Provision for credit losses on loans 23,115  11,936  11,469  5,389  11,288   46,520  117,951 
Gross charge-offs (22,750) (14,331) (18,180) (7,081) (11,440)  (55,261) (20,200)
Gross recoveries 3,062  4,239  1,751  3,109  3,845   9,052  8,073 
NCOs (19,688) (10,092) (16,429) (3,972) (7,595)  (46,209) (12,127)
Ending allowance for credit losses on loans$303,982 $300,555 $298,711 $303,671 $302,254  $303,982 $302,254 
Beginning allowance for credit losses on unfunded commitments$37,007 $34,156 $32,188 $26,169 $21,966  $32,188 $10,879 
Provision (release) for credit losses on unfunded commitments (4,047) 2,851  1,968  6,019  4,203   772  15,290 
Ending allowance for credit losses on unfunded commitments$32,960 $37,007 $34,156 $32,188 $26,169  $32,960 $26,169 
Allowance for credit losses$336,942 $337,562 $332,867 $335,859 $328,423  $336,942 $328,423 
Provision for credit losses on loans$23,115 $11,936 $11,469 $5,389 $11,288  $46,520 $117,951 
Provision (release) for credit losses on unfunded commitments1 (4,047) 2,851  1,968  6,019  4,203   772  15,290 
Provision for credit losses1$19,068 $14,787 $13,437 $11,408 $15,491  $47,292 $133,241 
NCOs / average loans2 0.24% 0.13% 0.21% 0.05% 0.10%  0.19% 0.06%
Average loans2$32,639,812 $32,251,242 $31,267,836 $30,732,473 $29,890,008  $32,057,989 $26,521,011 
EOP loans2 32,577,834  32,432,473  31,822,374  31,123,641  30,528,933   32,577,834  30,528,933 
ACL on loans / EOP loans2 0.93% 0.93% 0.94% 0.98% 0.99%  0.93% 0.99%
ACL / EOP loans2 1.03% 1.04% 1.05% 1.08% 1.08%  1.03% 1.08%
Underperforming Assets:        
Loans 90 days and over (still accruing)$1,192 $303 $1,231 $2,650 $767  $1,192 $767 
NPLs:        
Nonaccrual loans3,4 261,346  295,509  234,337  238,178  233,659   261,346  233,659 
TDRs still accruing4N/AN/AN/A 15,313  13,674  N/A 13,674 
Total NPLs 261,346  295,509  234,337  253,491  247,333   261,346  247,333 
Foreclosed assets 9,761  9,824  10,817  10,845  11,967   9,761  11,967 
Total underperforming assets$272,299 $305,636 $246,385 $266,986 $260,067  $272,299 $260,067 
Classified and Criticized Assets:        
Nonaccrual loans3$261,346 $295,509 $234,337 $238,178 $233,659  $261,346 $233,659 
Substandard loans (still accruing) 563,427  524,709  570,229  504,657  476,724   563,427  476,724 
Loans 90 days and over (still accruing) 1,192  303  1,231  2,650  767   1,192  767 
Total classified loans - "problem loans" 825,965  820,521  805,797  745,485  711,150   825,965  711,150 
Other classified assets 48,998  40,942  26,441  24,735  24,773   48,998  24,773 
Criticized loans - "special mention loans" 775,526  614,547  593,307  636,069  549,994   775,526  549,994 
Total classified and criticized assets$1,650,489 $1,476,010 $1,425,545 $1,406,289 $1,285,917  $1,650,489 $1,285,917 
Loans 30-89 days past due$56,772 $39,748 $42,071 $55,522 $65,632  $56,772 $65,632 
NPLs / EOP loans2 0.80% 0.91% 0.74% 0.81% 0.81%  0.80% 0.81%
ACL to NPLs 129% 114% 142% 132% 133%  129% 133%
Under-performing assets/EOP loans2 0.84% 0.94% 0.77% 0.86% 0.85%  0.84% 0.85%
Under-performing assets/EOP assets 0.56% 0.63% 0.51% 0.57% 0.56%  0.56% 0.56%
30+ day delinquencies/EOP loans2 0.18% 0.12% 0.14% 0.19% 0.22%  0.18% 0.22%
1 Excludes $0.2 million of expense to establish an allowance on held-to-maturity securities during the first quarter of 2022. Provision for unfunded commitments is included in the provision for credit losses. The reclassification of the provision for unfunded commitments out of other expense as a component of noninterest expense was made to amounts prior to December 31, 2022 to conform to the current period presentation.
2 Excludes loans held-for-sale.
3 Includes non-accruing TDRs totaling $24.0 million at December 31, 2022 and $23.8 million at September 30, 2022.
4 As a result of accounting guidance adopted in 2023, the TDR classification is no longer applicable subsequent to December 31, 2022.
PCD - Purchased credit deteriorated TDR - Troubled debt restructuring
         

        

         
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,
 20232023202320222022 20232022
Earnings Per Share:        
Net income applicable to common shares$143,842 $151,003 $142,566 $196,701 $136,119  $437,411 $217,468 
Adjustments:        
Merger-related charges2 6,257  2,372  14,558  20,314  22,743   23,187  111,627 
Tax effect1 (1,042) (277) (3,172) (5,160) (8,529)  (4,491) (31,120)
Merger-related charges, net 5,215  2,095  11,386  15,154  14,214   18,696  80,507 
Debt Securities (gains) losses 241  (17) 5,216  173  172   5,440  (85)
Tax effect1 (40) 2  (1,137) (44) (65)  (1,175) (33)
Debt securities (gains) losses, net 201  (15) 4,079  129  107   4,265  (118)
Louisville expenses   3,361         3,361   
Tax effect1   (392)        (392)  
Louisville expenses, net   2,969         2,969   
Property optimization charges   242  1,317  26,818     1,559   
Tax effect1   (28) (287) (6,812)    (315)  
Property optimization charges, net   214  1,030  20,006     1,244   
Gain on sale of health savings accounts       (90,673)       
Tax effect1       23,031        
Gain on sale of health savings accounts, net       (67,642)       
Day 1 non-PCD              96,270 
Tax effect1              (17,550)
Day 1 non-PCD, net              78,720 
Total adjustments, net 5,416  5,263  16,495  (32,353) 14,321   27,174  159,109 
Net income applicable to common shares, adjusted$149,258 $156,266 $159,061 $164,348 $150,440  $464,585 $376,577 
Weighted average diluted common shares outstanding 291,717  291,266  292,756  293,131  292,483   291,809  271,123 
EPS, diluted$0.49 $0.52 $0.49 $0.67 $0.47  $1.50 $0.80 
Adjusted EPS, diluted$0.51 $0.54 $0.54 $0.56 $0.51  $1.59 $1.39 
NIM:        
Net interest income$375,086 $382,171 $381,488 $391,090 $376,589  $1,138,745 $936,846 
Add: FTE adjustment3 5,837  5,825  5,666  5,378  4,950   17,328  13,036 
Net interest income (FTE)$380,923 $387,996 $387,154 $396,468 $381,539  $1,156,073 $949,882 
Average earning assets$43,617,456 $43,097,198 $41,941,913 $41,206,695 $41,180,026  $42,891,660 $37,924,490 
NIM (GAAP) 3.44% 3.55% 3.64% 3.80% 3.66%  3.54% 3.29%
NIM (FTE) 3.49% 3.60% 3.69% 3.85% 3.71%  3.59% 3.34%
         
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,
 20232023202320222022 20232022
PPNR:        
Net interest income (FTE)3$380,923 $387,996 $387,154 $396,468 $381,539  $1,156,073 $949,882 
Add: Noninterest income 80,938  81,629  70,681  165,037  80,385   233,248  234,742 
Total revenue (FTE) 461,861  469,625  457,835  561,505  461,924   1,389,321  1,184,624 
Less: Noninterest expense (244,776) (246,584) (250,711) (282,675) (262,444)  (742,071) (755,508)
PPNR$217,085 $223,041 $207,124 $278,830 $199,480  $647,250 $429,116 
Adjustments:        
Gain on sale of health savings accounts$ $ $ $(90,673)$  $ $ 
Debt securities (gains) losses 241  (17) 5,216  173  172   5,440  (85)
Noninterest income adjustments 241  (17) 5,216  (90,500) 172   5,440  (85)
Adjusted noninterest income 81,179  81,612  75,897  74,537  80,557   238,688  234,657 
Adjusted revenue$462,102 $469,608 $463,051 $471,005 $462,096  $1,394,761 $1,184,539 
Adjustments:        
Merger-related charges4$6,257 $2,372 $14,558 $20,314 $22,743  $23,187 $100,614 
Louisville expenses   3,361         3,361   
Property optimization charges   242  1,317  26,818     1,559   
Noninterest expense adjustments 6,257  5,975  15,875  47,132  22,743   28,107  100,614 
Adjusted total noninterest expense (238,519) (240,609) (234,836) (235,543) (239,701)  (713,964) (654,894)
Adjusted PPNR$223,583 $228,999 $228,215 $235,462 $222,395  $680,797 $529,645 
Efficiency Ratio:        
Noninterest expense$244,776 $246,584 $250,711 $282,675 $262,444  $742,071 $755,508 
Less: Amortization of intangibles (6,040) (6,060) (6,186) (6,787) (7,089)  (18,286) (19,070)
Noninterest expense, excl. amortization of intangibles 238,736  240,524  244,525  275,888  255,355   723,785  736,438 
Less: Amortization of tax credit investments (2,644) (2,762) (2,761) (5,258) (2,662)  (8,167) (5,703)
Less: Noninterest expense adjustments (6,257) (5,975) (15,875) (47,132) (22,743)  (28,107) (100,614)
Adjusted noninterest expense$229,835 $231,787 $225,889 $223,498 $229,950  $687,511 $630,121 
Total revenue (FTE)3$461,861 $469,625 $457,835 $561,505 $461,924  $1,389,321 $1,184,624 
Less: Debt securities (gains) losses 241  (17) 5,216  173  172   5,440  (85)
Total revenue excl. debt securities (gains) losses 462,102  469,608  463,051  561,678  462,096   1,394,761  1,184,539 
Less: Gain on sale of health savings accounts       (90,673)       
Total adjusted revenue$462,102 $469,608 $463,051 $471,005 $462,096  $1,394,761 $1,184,539 
Efficiency Ratio 51.7% 51.2% 52.8% 49.1% 55.3%  51.9% 62.2%
Efficiency Ratio (prior presentation)5N/AN/AN/AN/A 56.2% N/A 63.5%
Adjusted Efficiency Ratio 49.7% 49.4% 48.8% 47.5% 49.8%  49.3% 53.2%
Adjusted Efficiency Ratio (prior presentation)5N/AN/AN/AN/A 50.7% N/A 53.6%
         
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,
 20232023202320222022 20232022
ROAE and ROATCE:        
Net income applicable to common shares$143,842 $151,003 $142,566 $196,701 $136,119  $437,411 $217,468 
Amortization of intangibles 6,040  6,060  6,186  6,787  7,089   18,286  19,070 
Tax effect1 (1,510) (1,515) (1,547) (1,697) (1,772)  (4,572) (4,768)
Amortization of intangibles, net 4,530  4,545  4,639  5,090  5,317   13,714  14,302 
Net income applicable to common shares, excluding intangible amortization 148,372  155,548  147,205  201,791  141,436   451,125  231,770 
Total adjustments, net (see pg.12) 5,416  5,263  16,495  (32,353) 14,321   27,174  159,109 
Adjusted tangible net income applicable to common shares$153,788 $160,811 $163,700 $169,438 $155,757  $478,299 $390,879 
Average shareholders' equity$5,294,072 $5,273,802 $5,166,188 $4,936,582 $5,134,153  $5,245,156 $4,830,844 
Less: Average preferred equity (243,719) (243,719) (243,719) (243,719) (243,719)  (243,719) (202,013)
Average shareholders' common equity$5,050,353 $5,030,083 $4,922,469 $4,692,863 $4,890,434  $5,001,437 $4,628,831 
Average goodwill and other intangible assets (2,109,944) (2,115,894) (2,122,157) (2,132,480) (2,129,858)  (2,115,953) (1,941,270)
Average tangible shareholder's common equity$2,940,409 $2,914,189 $2,800,312 $2,560,383 $2,760,576  $2,885,484 $2,687,561 
ROAE 11.4% 12.0% 11.6% 16.8% 11.1%  11.7% 6.3%
ROAE, adjusted 11.8% 12.4% 12.9% 14.0% 12.3%  12.4% 10.8%
ROATCE 20.2% 21.4% 21.0% 31.5% 20.5%  20.8% 11.5%
ROATCE, adjusted 20.9% 22.1% 23.4% 26.5% 22.6%  22.1% 19.4%
         
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,
 20232023202320222022
Tangible Common Equity:     
Shareholders' equity$5,239,537 $5,292,095 $5,277,426 $5,128,595 $4,943,383 
Less: Preferred equity (243,719) (243,719)