QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Zip Code) | |||||||||||
(Address of principal executive offices) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||||||||
Global Select Market | |||||||||||||||||||||||
Global Select Market | |||||||||||||||||||||||
Global Select Market |
☑ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | |||||||||||
PART I. | |||||||||||
Item 1. | |||||||||||
Note 1. | |||||||||||
Note 2. | |||||||||||
Note 3. | |||||||||||
Note 4. | |||||||||||
Note 5. | |||||||||||
Note 6. | |||||||||||
Note 7. | |||||||||||
Note 8. | |||||||||||
Note 9. | |||||||||||
Note 10. | |||||||||||
Note 11. | |||||||||||
Note 12. | |||||||||||
Note 13. | |||||||||||
Note 14. | |||||||||||
Note 15. | |||||||||||
Note 16. | |||||||||||
Note 17. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
(dollars and shares in thousands, except per share data) | June 30, 2024 | December 31, 2023 | |||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Money market and other interest-earning investments | |||||||||||
Total cash and cash equivalents | |||||||||||
Equity securities, at fair value | |||||||||||
Investment securities - available-for-sale, at fair value (amortized cost $ | |||||||||||
Investment securities - held-to-maturity, at amortized cost (fair value $ | |||||||||||
Federal Home Loan Bank/Federal Reserve Bank stock, at cost | |||||||||||
Loans held-for-sale, at fair value | |||||||||||
Loans: | |||||||||||
Commercial | |||||||||||
Commercial real estate | |||||||||||
Residential real estate | |||||||||||
Consumer | |||||||||||
Total loans, net of unearned income | |||||||||||
Allowance for credit losses on loans | ( | ( | |||||||||
Net loans | |||||||||||
Premises and equipment, net | |||||||||||
Goodwill | |||||||||||
Other intangible assets | |||||||||||
Company-owned life insurance | |||||||||||
Accrued interest receivable and other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing demand | $ | $ | |||||||||
Interest-bearing: | |||||||||||
Checking and NOW | |||||||||||
Savings | |||||||||||
Money market | |||||||||||
Time deposits | |||||||||||
Total deposits | |||||||||||
Federal funds purchased and interbank borrowings | |||||||||||
Securities sold under agreements to repurchase | |||||||||||
Federal Home Loan Bank advances | |||||||||||
Other borrowings | |||||||||||
Accrued expenses and other liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ Equity | |||||||||||
Preferred stock, | |||||||||||
Common stock, no par value, $ | |||||||||||
Capital surplus | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss), net of tax | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars and shares in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Interest Income | |||||||||||||||||||||||
Loans including fees: | |||||||||||||||||||||||
Taxable | $ | $ | $ | $ | |||||||||||||||||||
Nontaxable | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
Nontaxable | |||||||||||||||||||||||
Money market and other interest-earning investments | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Federal funds purchased and interbank borrowings | |||||||||||||||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||||||||
Other borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Net interest income after provision for credit losses | |||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||
Wealth and investment services fees | |||||||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||
Debit card and ATM fees | |||||||||||||||||||||||
Mortgage banking revenue | |||||||||||||||||||||||
Capital markets income | |||||||||||||||||||||||
Company-owned life insurance | |||||||||||||||||||||||
Debt securities gains (losses), net | ( | ( | |||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total noninterest income | |||||||||||||||||||||||
Noninterest Expense | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Occupancy | |||||||||||||||||||||||
Equipment | |||||||||||||||||||||||
Marketing | |||||||||||||||||||||||
Technology | |||||||||||||||||||||||
Communication | |||||||||||||||||||||||
Professional fees | |||||||||||||||||||||||
FDIC assessment | |||||||||||||||||||||||
Amortization of intangibles | |||||||||||||||||||||||
Amortization of tax credit investments | |||||||||||||||||||||||
Other expense | |||||||||||||||||||||||
Total noninterest expense | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Preferred dividends | ( | ( | ( | ( | |||||||||||||||||||
Net income applicable to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Net income per common share - basic | $ | $ | $ | $ | |||||||||||||||||||
Net income per common share - diluted | |||||||||||||||||||||||
Weighted average number of common shares outstanding - basic | |||||||||||||||||||||||
Weighted average number of common shares outstanding - diluted | |||||||||||||||||||||||
Dividends per common share | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in debt securities available-for-sale: | ||||||||||||||||||||
Unrealized holding gains (losses) for the period | ( | ( | ( | ( | ||||||||||||||||
Reclassification adjustment for securities (gains) losses realized in income | ( | ( | ||||||||||||||||||
Income tax effect | ||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | ( | ( | ( | ( | ||||||||||||||||
Change in securities held-to-maturity: | ||||||||||||||||||||
Amortization of unrealized losses on securities transferred from available-for-sale | ||||||||||||||||||||
Income tax effect | ( | ( | ( | ( | ||||||||||||||||
Changes from securities held-to-maturity | ||||||||||||||||||||
Change in hedges: | ||||||||||||||||||||
Net unrealized derivative gains (losses) on hedges | ( | ( | ||||||||||||||||||
Reclassification adjustment for (gains) losses realized in net income | ( | ( | ||||||||||||||||||
Income tax effect | ( | |||||||||||||||||||
Changes from hedges | ( | ( | ( | |||||||||||||||||
Change in defined benefit pension plans: | ||||||||||||||||||||
Amortization of net (gains) losses recognized in income | ( | |||||||||||||||||||
Income tax effect | ( | |||||||||||||||||||
Changes from defined benefit pension plans | ( | |||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ( | ||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | $ |
(dollars in thousands, except per share data) | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Preferred ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Common stock issued | — | — | — | ||||||||||||||||||||||||||||||||
Common stock repurchased | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Stock activity under incentive compensation plans | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||
Balance, March 31, 2023 | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Preferred ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Common stock issued | — | — | — | ||||||||||||||||||||||||||||||||
Common stock repurchased | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Stock activity under incentive compensation plans | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
December 31, 2023 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Preferred ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Common stock issued | — | — | — | ||||||||||||||||||||||||||||||||
Common stock repurchased | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Stock activity under incentive compensation plans | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||
Balance, March 31, 2024 | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Acquisition of CapStar Financial Holdings, Inc. | — | — | — | ||||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Preferred ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Common stock issued | — | — | — | ||||||||||||||||||||||||||||||||
Common stock repurchased | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Stock activity under incentive compensation plans | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||
Balance, June 30, 2024 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Cash Flows From Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of other intangible assets | |||||||||||
Amortization of tax credit investments | |||||||||||
Net premium amortization on investment securities | |||||||||||
Accretion income related to acquired loans | ( | ( | |||||||||
Share-based compensation expense | |||||||||||
Provision for credit losses | |||||||||||
Debt securities (gains) losses, net | |||||||||||
Net (gains) losses on sales of loans and other assets | ( | ( | |||||||||
Increase in cash surrender value of company-owned life insurance | ( | ( | |||||||||
Residential real estate loans originated for sale | ( | ( | |||||||||
Proceeds from sales of residential real estate loans | |||||||||||
(Increase) decrease in interest receivable | ( | ( | |||||||||
(Increase) decrease in other assets | ( | ||||||||||
Increase (decrease) in accrued expenses and other liabilities | ( | ( | |||||||||
Net cash flows provided by (used in) operating activities | |||||||||||
Cash Flows From Investing Activities | |||||||||||
Cash received from merger, net | |||||||||||
Purchases of investment securities available-for-sale | ( | ( | |||||||||
Purchases of investment securities held-to-maturity | ( | ||||||||||
Purchases of Federal Home Loan Bank/Federal Reserve Bank stock | ( | ( | |||||||||
Purchases of equity securities | ( | ( | |||||||||
Proceeds from maturities, prepayments, and calls of investment securities available-for-sale | |||||||||||
Proceeds from sales of investment securities available-for-sale | |||||||||||
Proceeds from maturities, prepayments, and calls of investment securities held-to-maturity | |||||||||||
Proceeds from sales of Federal Home Loan Bank/Federal Reserve Bank stock | |||||||||||
Proceeds from sales of equity securities | |||||||||||
Loan originations and payments, net | ( | ( | |||||||||
Proceeds from sales of commercial loans | |||||||||||
Proceeds from company-owned life insurance death benefits | |||||||||||
Proceeds from sales of premises and equipment and other assets | |||||||||||
Purchases of premises and equipment and other assets | ( | ( | |||||||||
Net cash flows provided by (used in) investing activities | ( | ( | |||||||||
Cash Flows From Financing Activities | |||||||||||
Net increase (decrease) in: | |||||||||||
Deposits | |||||||||||
Federal funds purchased and interbank borrowings | ( | ||||||||||
Securities sold under agreements to repurchase | ( | ( | |||||||||
Other borrowings | |||||||||||
Payments for maturities of Federal Home Loan Bank advances | ( | ( | |||||||||
Proceeds from Federal Home Loan Bank advances | |||||||||||
Cash dividends paid | ( | ( | |||||||||
Common stock repurchased | ( | ( | |||||||||
Common stock issued | |||||||||||
Net cash flows provided by (used in) financing activities | |||||||||||
Net increase (decrease) in cash and cash equivalents | |||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Six Months Ended June 30, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Supplemental Cash Flow Information: | |||||||||||
Total interest paid | $ | $ | |||||||||
Total income taxes paid (net of refunds) | |||||||||||
Noncash Investing and Financing Activities: | |||||||||||
Common stock issued for merger, net | |||||||||||
Operating lease right-of-use assets obtained in exchange for lease obligations | |||||||||||
Finance lease right-of-use assets obtained in exchange for lease obligations |
(dollars and shares in thousands) | April 1, 2024 | ||||
Assets | |||||
Cash and cash equivalents | $ | ||||
Investment securities | |||||
FHLB/Federal Reserve Bank stock | |||||
Loans held-for-sale | |||||
Loans, net of allowance for credit losses | |||||
Premises and equipment | |||||
Goodwill | |||||
Other intangible assets | |||||
Company-owned life insurance | |||||
Other assets | |||||
Total assets | $ | ||||
Liabilities | |||||
Deposits | $ | ||||
Federal Home Loan Bank advances | |||||
Other borrowings | |||||
Accrued expenses and other liabilities | |||||
Total liabilities | $ | ||||
Fair value of consideration | |||||
Common stock ( | $ | ||||
Total consideration | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars and shares in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Preferred dividends | ( | ( | ( | ( | |||||||||||||||||||
Net income applicable to common shares | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Weighted average common shares outstanding (basic) | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Restricted stock | |||||||||||||||||||||||
Stock appreciation rights | |||||||||||||||||||||||
Weighted average diluted shares outstanding | |||||||||||||||||||||||
Basic Net Income Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
Diluted Net Income Per Common Share | $ | $ | $ | $ |
(dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Basis Adjustments (1) | Fair Value | ||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||||
U.S. Treasury | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
U.S. government-sponsored entities and agencies | ( | ( | |||||||||||||||||||||||||||
Mortgage-backed securities - Agency | ( | ||||||||||||||||||||||||||||
States and political subdivisions | ( | ||||||||||||||||||||||||||||
Pooled trust preferred securities | ( | ||||||||||||||||||||||||||||
Other securities | ( | ||||||||||||||||||||||||||||
Total available-for-sale securities | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||||||
U.S. government-sponsored entities and agencies | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Mortgage-backed securities - Agency | ( | ||||||||||||||||||||||||||||
States and political subdivisions | ( | ||||||||||||||||||||||||||||
Allowance for securities held-to-maturity | ( | — | — | — | ( | ||||||||||||||||||||||||
Total held-to-maturity securities | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||||
U.S. Treasury | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
U.S. government-sponsored entities and agencies | ( | ( | |||||||||||||||||||||||||||
Mortgage-backed securities - Agency | ( | ||||||||||||||||||||||||||||
States and political subdivisions | ( | ||||||||||||||||||||||||||||
Pooled trust preferred securities | ( | ||||||||||||||||||||||||||||
Other securities | ( | ||||||||||||||||||||||||||||
Total available-for-sale securities | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||||||
U.S. government-sponsored entities and agencies | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Mortgage-backed securities - Agency | ( | ||||||||||||||||||||||||||||
States and political subdivisions | ( | ||||||||||||||||||||||||||||
Allowance for securities held-to-maturity | ( | — | — | — | ( | ||||||||||||||||||||||||
Total held-to-maturity securities | $ | $ | $ | ( | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Proceeds | $ | $ | $ | $ | |||||||||||||||||||
Realized gains | |||||||||||||||||||||||
Realized losses | ( | ( | ( | ( |
June 30, 2024 | |||||||||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | Weighted Average Yield | ||||||||||||||
Maturity | |||||||||||||||||
Available-for-Sale | |||||||||||||||||
Within one year | $ | $ | % | ||||||||||||||
One to five years | |||||||||||||||||
Five to ten years | |||||||||||||||||
Beyond ten years | |||||||||||||||||
Total | $ | $ | % | ||||||||||||||
Held-to-Maturity | |||||||||||||||||
Within one year | $ | $ | % | ||||||||||||||
One to five years | |||||||||||||||||
Five to ten years | |||||||||||||||||
Beyond ten years | |||||||||||||||||
Total | $ | $ | % |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
U.S. government-sponsored entities and agencies | ( | ( | ( | ||||||||||||||||||||||||||||||||
Mortgage-backed securities - Agency | ( | ( | ( | ||||||||||||||||||||||||||||||||
States and political subdivisions | ( | ( | ( | ||||||||||||||||||||||||||||||||
Pooled trust preferred securities | ( | ( | |||||||||||||||||||||||||||||||||
Other securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total available-for-sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
U.S. government-sponsored entities and agencies | ( | ( | |||||||||||||||||||||||||||||||||
Mortgage-backed securities - Agency | ( | ( | ( | ||||||||||||||||||||||||||||||||
States and political subdivisions | ( | ( | ( | ||||||||||||||||||||||||||||||||
Pooled trust preferred securities | ( | ( | |||||||||||||||||||||||||||||||||
Other securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total available-for-sale | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrecognized Losses | Fair Value | Unrecognized Losses | Fair Value | Unrecognized Losses | |||||||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||||||||||||
U.S. government-sponsored entities and agencies | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Mortgage-backed securities - Agency | ( | ( | |||||||||||||||||||||||||||||||||
States and political subdivisions | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total held-to-maturity | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||||||||||||
U.S. government-sponsored entities and agencies | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Mortgage-backed securities - Agency | ( | ( | |||||||||||||||||||||||||||||||||
States and political subdivisions | ( | ( | |||||||||||||||||||||||||||||||||
Total held-to-maturity | $ | $ | $ | $ | ( | $ | $ | ( |
Balance Sheet Line Item | Portfolio Segment Reclassifications | Portfolio Segment After Reclassifications | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
June 30, 2024 | |||||||||||||||||
Commercial (1) | $ | $ | ( | $ | |||||||||||||
Commercial real estate | ( | ||||||||||||||||
BBCC | N/A | ||||||||||||||||
Residential real estate | |||||||||||||||||
Consumer | ( | N/A | |||||||||||||||
Indirect | N/A | ||||||||||||||||
Direct | N/A | ||||||||||||||||
Home equity | N/A | ||||||||||||||||
Total loans (2) | $ | $ | $ | ||||||||||||||
Allowance for credit losses on loans | ( | — | ( | ||||||||||||||
Net loans | $ | $ | $ | ||||||||||||||
December 31, 2023 | |||||||||||||||||
Commercial (1) | $ | $ | ( | $ | |||||||||||||
Commercial real estate | ( | ||||||||||||||||
BBCC | N/A | ||||||||||||||||
Residential real estate | |||||||||||||||||
Consumer | ( | N/A | |||||||||||||||
Indirect | N/A | ||||||||||||||||
Direct | N/A | ||||||||||||||||
Home equity | N/A | ||||||||||||||||
Total loans (2) | $ | $ | $ | ||||||||||||||
Allowance for credit losses on loans | ( | — | ( | ||||||||||||||
Net loans | $ | $ | $ |
(dollars in thousands) | Balance at Beginning of Period | Allowance Established for Acquired PCD Loans | Charge-offs | Recoveries | Provision for Loan Losses | Balance at End of Period | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Commercial real estate | ( | ||||||||||||||||||||||||||||||||||
BBCC | ( | ||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Indirect | ( | ||||||||||||||||||||||||||||||||||
Direct | ( | ||||||||||||||||||||||||||||||||||
Home equity | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Commercial real estate | ( | ||||||||||||||||||||||||||||||||||
BBCC | ( | ||||||||||||||||||||||||||||||||||
Residential real estate | ( | ||||||||||||||||||||||||||||||||||
Indirect | ( | ( | |||||||||||||||||||||||||||||||||
Direct | ( | ( | |||||||||||||||||||||||||||||||||
Home equity | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Commercial real estate | ( | ||||||||||||||||||||||||||||||||||
BBCC | ( | ||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Indirect | ( | ||||||||||||||||||||||||||||||||||
Direct | ( | ||||||||||||||||||||||||||||||||||
Home equity | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Commercial real estate | ( | ||||||||||||||||||||||||||||||||||
BBCC | ( | ||||||||||||||||||||||||||||||||||
Residential real estate | ( | ( | |||||||||||||||||||||||||||||||||
Indirect | ( | ||||||||||||||||||||||||||||||||||
Direct | ( | ( | |||||||||||||||||||||||||||||||||
Home equity | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Allowance for credit losses on unfunded loan commitments: | |||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Provision for credit losses on unfunded loan commitments acquired during the period | |||||||||||||||||||||||
Provision (release) for credit losses on unfunded loan commitments | ( | ( | |||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
(dollars in thousands) | Origination Year | Revolving to Term | |||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Classified: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Classified: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
BBCC: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Classified: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Origination Year | Revolving to Term | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Classified: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Classified: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
BBCC: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Classified: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Origination Year | Revolving to Term | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving | Total | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Indirect: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Direct: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Home equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Origination Year | Revolving to Term | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Indirect: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Direct: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Home equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving | Total | |||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
BBCC | |||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||||||||||||||||||||
Direct | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||||||||
Total gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
BBCC | |||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||||||||||||||||||||
Direct | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||||||||
Total gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
BBCC | |||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||||||||||||||||||||
Direct | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||||||||
Total gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
BBCC | |||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||||||||||||||||||||
Direct | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||||||||
Total gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Past Due 90 Days or More | Total Past Due | Current | Total Loans | |||||||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
BBCC | |||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||||||||
Direct | |||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
BBCC | |||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||||||||
Direct | |||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Nonaccrual Amortized Cost | Nonaccrual With No Related Allowance | Past Due 90 Days or More and Accruing | Nonaccrual Amortized Cost | Nonaccrual With No Related Allowance | Past Due 90 Days or More and Accruing | |||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
BBCC | |||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||||||||
Direct | |||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Type of Collateral | |||||||||||||||||||||||||||||
(dollars in thousands) | Real Estate | Blanket Lien | Investment Securities/Cash | Auto | Other | ||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
BBCC | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||
Direct | |||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
BBCC | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||
Direct | |||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ |
(dollars in thousands) | Term Extension | Total Class of Loans | ||||||
Three Months Ended June 30, 2024 | ||||||||
Commercial | $ | % | ||||||
Commercial real estate | % | |||||||
Total | $ | % | ||||||
Three Months Ended June 30, 2023 | ||||||||
Commercial | $ | % | ||||||
Commercial real estate | % | |||||||
Total | $ | % | ||||||
Six Months Ended June 30, 2024 | ||||||||
Commercial | $ | % | ||||||
Commercial real estate | % | |||||||
Total | $ | % | ||||||
Six Months Ended June 30, 2023 | ||||||||
Commercial | $ | % | ||||||
Commercial real estate | % | |||||||
Total | $ | % |
(dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Past Due 90 Days or More | Total Past Due | Current | Total Loans | |||||||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Weighted- Average Term Extension (in months) | |||||||
Three Months Ended June 30, 2024 | ||||||||
Commercial | 10.0 | |||||||
Commercial real estate | 10.6 | |||||||
Total | 10.6 | |||||||
Three Months Ended June 30, 2023 | ||||||||
Commercial | 7.0 | |||||||
Commercial real estate | 6.0 | |||||||
Total | 6.1 | |||||||
Six Months Ended June 30, 2024 | ||||||||
Commercial | 9.9 | |||||||
Commercial real estate | 9.2 | |||||||
Total | 9.3 | |||||||
Six Months Ended June 30, 2023 | ||||||||
Commercial | 6.8 | |||||||
Commercial real estate | 5.8 | |||||||
Total | 6.3 |
(dollars in thousands) | CapStar (1) | ||||
Purchase price of loans at acquisition | $ | ||||
Allowance for credit losses at acquisition | |||||
Non-credit discount/(premium) at acquisition | |||||
Par value of acquired loans at acquisition | $ |
Affected Line Item in the Statement of Income | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
Operating lease cost | Occupancy/Equipment expense | $ | $ | $ | $ | ||||||||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||||||||
Amortization of right-of-use assets | Occupancy expense | ||||||||||||||||||||||||||||
Interest on lease liabilities | Interest expense | ||||||||||||||||||||||||||||
Sub-lease income | Occupancy expense | ( | ( | ( | ( | ||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | |||||||||
Operating Leases | |||||||||||
$ | $ | ||||||||||
Finance Leases | |||||||||||
Weighted-Average Remaining Lease Term (in Years) | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted-Average Discount Rate | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Six Months Ended June 30, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Operating cash flows from finance leases | |||||||||||
Financing cash flows from finance leases |
(dollars in thousands) | Operating Leases | Finance Leases | |||||||||
2024 | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
Thereafter | |||||||||||
Total undiscounted lease payments | |||||||||||
Amounts representing interest | ( | ( | |||||||||
Lease liability | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Acquisitions and adjustments | |||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
(dollars in thousands) | Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | ||||||||||||||
June 30, 2024 | |||||||||||||||||
Core deposit | $ | $ | ( | $ | |||||||||||||
Customer trust relationships | ( | ||||||||||||||||
Total other intangible assets | $ | $ | ( | $ | |||||||||||||
December 31, 2023 | |||||||||||||||||
Core deposit | $ | $ | ( | $ | |||||||||||||
Customer trust relationships | ( | ||||||||||||||||
Total other intangible assets | $ | $ | ( | $ |
(dollars in thousands) | |||||
2024 remaining | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total | $ |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||
Investment | Accounting Method | Investment | Unfunded Commitment (1) | Investment | Unfunded Commitment | |||||||||||||||||||||
LIHTC | Proportional amortization | $ | $ | $ | $ | |||||||||||||||||||||
FHTC | Proportional amortization (2) | |||||||||||||||||||||||||
NMTC | Consolidation | |||||||||||||||||||||||||
Renewable Energy | Equity | |||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(dollars in thousands) | Amortization Expense (1) | Tax Expense (Benefit) Recognized (2) | |||||||||
Three Months Ended June 30, 2024 | |||||||||||
LIHTC | $ | $ | ( | ||||||||
FHTC | ( | ||||||||||
NMTC | ( | ||||||||||
Renewable Energy | |||||||||||
Total | $ | $ | ( | ||||||||
Three Months Ended June 30, 2023 | |||||||||||
LIHTC | $ | $ | ( | ||||||||
FHTC | ( | ||||||||||
NMTC | ( | ||||||||||
Renewable Energy | |||||||||||
Total | $ | $ | ( | ||||||||
Six Months Ended June 30, 2024 | |||||||||||
LIHTC | $ | $ | ( | ||||||||
FHTC | ( | ||||||||||
NMTC | ( | ||||||||||
Renewable Energy | |||||||||||
Total | $ | $ | ( | ||||||||
Six Months Ended June 30, 2023 | |||||||||||
LIHTC | $ | $ | ( | ||||||||
FHTC | ( | ||||||||||
NMTC | ( | ||||||||||
Renewable Energy | |||||||||||
Total | $ | $ | ( |
At or for the Six Months Ended June 30, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Outstanding at period end | $ | $ | |||||||||
Average amount outstanding during the period | |||||||||||
Maximum amount outstanding at any month-end during the period | |||||||||||
Weighted-average interest rate: | |||||||||||
During the period | % | % | |||||||||
At period end | % | % |
At June 30, 2024 | |||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||||
(dollars in thousands) | Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater Than 90 days | Total | ||||||||||||||||||||||||
Repurchase Agreements: | |||||||||||||||||||||||||||||
U.S. Treasury and agency securities | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | |||||||||
FHLB advances (fixed rates and variable rates September 2024 to March 2044 | $ | $ | |||||||||
Fair value hedge basis adjustments and unamortized prepayment fees | ( | ( | |||||||||
Total | $ | $ |
(dollars in thousands) | |||||
Due in 2024 | $ | ||||
Due in 2025 | |||||
Due in 2026 | |||||
Due in 2028 | |||||
Thereafter | |||||
Fair value hedge basis adjustments and unamortized prepayment fees | ( | ||||
Total | $ |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | |||||||||
Old National Bancorp: | |||||||||||
Senior unsecured notes (fixed rate | $ | $ | |||||||||
Unamortized debt issuance costs related to senior unsecured notes | ( | ( | |||||||||
Subordinated debentures (fixed rate | |||||||||||
Subordinated debentures (fixed rate | |||||||||||
Junior subordinated debentures (rates of July 2031 to September 2037 | |||||||||||
Other basis adjustments | |||||||||||
Old National Bank: | |||||||||||
Finance lease liabilities | |||||||||||
Subordinated debentures (3-month SOFR plus maturing October 2025 | |||||||||||
Leveraged loans for NMTC (fixed rates of maturing December 2046 to June 2060 | |||||||||||
Other (1) | |||||||||||
Total other borrowings | $ | $ |
(dollars in thousands) | |||||
Due in 2024 | $ | ||||
Due in 2025 | |||||
Due in 2026 | |||||
Due in 2027 | |||||
Due in 2028 | |||||
Thereafter | |||||
Unamortized debt issuance costs and other basis adjustments | |||||
Total | $ |
(dollars in thousands) | Rate at June 30, 2024 | |||||||||||||||||||||||||
Name of Trust | Issuance Date | Issuance Amount | Rate | Maturity Date | ||||||||||||||||||||||
Bridgeview Statutory Trust I | July 2001 | $ | 3-month SOFR plus | July 31, 2031 | ||||||||||||||||||||||
Bridgeview Capital Trust II | December 2002 | 3-month SOFR plus | January 7, 2033 | |||||||||||||||||||||||
First Midwest Capital Trust I | November 2003 | December 1, 2033 | ||||||||||||||||||||||||
St. Joseph Capital Trust II | March 2005 | 3-month SOFR plus | March 17, 2035 | |||||||||||||||||||||||
Northern States Statutory Trust I | September 2005 | 3-month SOFR plus | September 15, 2035 | |||||||||||||||||||||||
Anchor Capital Trust III | August 2005 | 3-month SOFR plus | September 30, 2035 | |||||||||||||||||||||||
Great Lakes Statutory Trust II | December 2005 | 3-month SOFR plus | December 15, 2035 | |||||||||||||||||||||||
Home Federal Statutory Trust I | September 2006 | 3-month SOFR plus | September 15, 2036 | |||||||||||||||||||||||
Monroe Bancorp Capital Trust I | July 2006 | 3-month SOFR plus | October 7, 2036 | |||||||||||||||||||||||
Tower Capital Trust 3 | December 2006 | 3-month SOFR plus | March 1, 2037 | |||||||||||||||||||||||
Monroe Bancorp Statutory Trust II | March 2007 | 3-month SOFR plus | June 15, 2037 | |||||||||||||||||||||||
Great Lakes Statutory Trust III | June 2007 | 3-month SOFR plus | September 15, 2037 | |||||||||||||||||||||||
Total | $ | |||||||||||||||||||||||||
(dollars in thousands) | Unrealized Gains and Losses on Available- for-Sale Debt Securities | Unrealized Gains and Losses on Held-to- Maturity Securities | Gains and Losses on Hedges | Defined Benefit Pension Plans | Total | ||||||||||||||||||||||||
Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified from AOCI to income (1) | ( | ||||||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from AOCI to income (1) | ( | ( | ( | ||||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified from AOCI to income (1) | |||||||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from AOCI to income (1) | ( | ( | ( | ||||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended June 30, | |||||||||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||||||||
Details about AOCI Components | Amount Reclassified from AOCI | Affected Line Item in the Statement of Income | |||||||||||||||
Unrealized gains and losses on available-for-sale securities | $ | $ | Debt securities gains (losses), net | ||||||||||||||
( | Income tax (expense) benefit | ||||||||||||||||
$ | $ | Net income | |||||||||||||||
Amortization of unrealized losses on held-to-maturity securities transferred from available-for-sale | $ | ( | $ | ( | Interest income (expense) | ||||||||||||
Income tax (expense) benefit | |||||||||||||||||
$ | ( | $ | ( | Net income | |||||||||||||
Gains and losses on hedges Interest rate contracts | $ | ( | $ | Interest income (expense) | |||||||||||||
( | Income tax (expense) benefit | ||||||||||||||||
$ | ( | $ | Net income | ||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||||
Actuarial gains (losses) | $ | $ | ( | Salaries and employee benefits | |||||||||||||
Income tax (expense) benefit | |||||||||||||||||
$ | $ | ( | Net income | ||||||||||||||
Total reclassifications for the period | $ | ( | $ | Net income |
Six Months Ended June 30, | |||||||||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||||||||
Details about AOCI Components | Amount Reclassified from AOCI | Affected Line Item in the Statement of Income | |||||||||||||||
Unrealized gains and losses on available-for-sale securities | $ | ( | $ | ( | Debt securities gains (losses), net | ||||||||||||
Income tax (expense) benefit | |||||||||||||||||
$ | ( | $ | ( | Net income | |||||||||||||
Amortization of unrealized losses on held-to-maturity securities transferred from available-for-sale | $ | ( | $ | ( | Interest income (expense) | ||||||||||||
Income tax (expense) benefit | |||||||||||||||||
$ | ( | $ | ( | Net income | |||||||||||||
Gains and losses on hedges Interest rate contracts | $ | ( | $ | Interest income (expense) | |||||||||||||
( | Income tax (expense) benefit | ||||||||||||||||
$ | ( | $ | Net income | ||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||||
Actuarial gains (losses) | $ | $ | Salaries and employee benefits | ||||||||||||||
( | Income tax (expense) benefit | ||||||||||||||||
$ | $ | Net income | |||||||||||||||
Total reclassifications for the period | $ | ( | $ | Net income |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Provision at statutory rate of 21% | $ | $ | $ | $ | |||||||||||||||||||
Tax-exempt income: | |||||||||||||||||||||||
Tax-exempt interest | ( | ( | ( | ( | |||||||||||||||||||
Section 291/265 interest disallowance | |||||||||||||||||||||||
Company-owned life insurance income | ( | ( | ( | ( | |||||||||||||||||||
Tax-exempt income | ( | ( | ( | ( | |||||||||||||||||||
State income taxes | |||||||||||||||||||||||
Interim period effective rate adjustment | ( | ( | |||||||||||||||||||||
Tax credit investments - federal | ( | ( | ( | ( | |||||||||||||||||||
Officer compensation limitation | |||||||||||||||||||||||
Non-deductible FDIC premiums | |||||||||||||||||||||||
Other, net | ( | ( | |||||||||||||||||||||
Income tax expense | $ | $ | $ | $ | |||||||||||||||||||
Effective tax rate | % | % | % | % |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Notional | Assets (1) | Liabilities (2) | Notional | Assets (1) | Liabilities (2) | |||||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||||||||
Interest rate swaps, collars, and floors on loan pools | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest rate swaps on borrowings (3) | |||||||||||||||||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||||||||||
Interest rate swaps on investment securities (3) | |||||||||||||||||||||||||||||||||||
Interest rate swaps on borrowings (3) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
(dollars in thousands) | Gain (Loss) Recognized in Income on Related Hedged Items | |||||||||||||||||||
Derivatives in Fair Value Hedging Relationships | Location of Gain or (Loss) Recognized in Income on Derivative | Gain (Loss) Recognized in Income on Derivative | Hedged Items in Fair Value Hedging Relationships | Location of Gain or (Loss) Recognized in in Income on Related Hedged Item | ||||||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||||||||||
Interest rate contracts | Interest income/(expense) | $ | ( | Fixed-rate debt | Interest income/(expense) | $ | ||||||||||||||
Interest rate contracts | Interest income/(expense) | Fixed-rate investment securities | Interest income/(expense) | ( | ||||||||||||||||
Total | $ | $ | ( | |||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||
Interest rate contracts | Interest income/(expense) | $ | ( | Fixed-rate debt | Interest income/(expense) | $ | ||||||||||||||
Interest rate contracts | Interest income/(expense) | Fixed-rate investment securities | Interest income/(expense) | ( | ||||||||||||||||
Total | $ | $ | ( | |||||||||||||||||
Six Months Ended June 30, 2024 | ||||||||||||||||||||
Interest rate contracts | Interest income/(expense) | $ | ( | Fixed-rate debt | Interest income/(expense) | $ | ||||||||||||||
Interest rate contracts | Interest income/(expense) | Fixed-rate investment securities | Interest income/(expense) | ( | ||||||||||||||||
Total | $ | $ | ( | |||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||
Interest rate contracts | Interest income/(expense) | $ | ( | Fixed-rate debt | Interest income/(expense) | $ | ||||||||||||||
Interest rate contracts | Interest income/(expense) | ( | Fixed-rate investment securities | Interest income/(expense) | ||||||||||||||||
Total | $ | ( | $ | |||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Location of Gain or (Loss) Reclassified from AOCI into Income | Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCI into Income | ||||||||||||||||||||
Interest rate contracts | Interest income/(expense) | $ | ( | $ | $ | ( | $ | ||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Location of Gain or (Loss) Reclassified from AOCI into Income | Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Gain (Loss) Reclassified from AOCI into Income | ||||||||||||||||||||
Interest rate contracts | Interest income/(expense) | $ | ( | $ | $ | ( | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Notional | Assets (1) | Liabilities (2) | Notional | Assets (1) | Liabilities (2) | |||||||||||||||||||||||||||||
Interest rate lock commitments | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Forward mortgage loan contracts | |||||||||||||||||||||||||||||||||||
Customer interest rate swaps | |||||||||||||||||||||||||||||||||||
Counterparty interest rate swaps (3) | |||||||||||||||||||||||||||||||||||
Customer foreign currency contracts | |||||||||||||||||||||||||||||||||||
Counterparty foreign currency contracts | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||
(dollars in thousands) | 2024 | 2023 | ||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain or (Loss) Recognized in Income on Derivative | Gain (Loss) Recognized in Income on Derivative | ||||||||||||
Interest rate contracts (1) | Other income/(expense) | $ | ( | $ | ||||||||||
Mortgage contracts | Mortgage banking revenue | ( | ||||||||||||
Foreign currency contracts | Other income/(expense) | ( | ( | |||||||||||
Total | $ | ( | $ | |||||||||||
Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain or (Loss) Recognized in Income on Derivative | Gain (Loss) Recognized in Income on Derivative | ||||||||||||
Interest rate contracts (1) | Other income/(expense) | $ | $ | |||||||||||
Mortgage contracts | Mortgage banking revenue | |||||||||||||
Foreign currency contracts | Other income/(expense) | ( | ( | |||||||||||
Total | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
(dollars in thousands) | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Gross amounts recognized | $ | $ | $ | $ | |||||||||||||||||||
Less: amounts offset in the Consolidated Balance Sheet | |||||||||||||||||||||||
Net amount presented in the Consolidated Balance Sheet | |||||||||||||||||||||||
Gross amounts not offset in the Consolidated Balance Sheet | |||||||||||||||||||||||
Offsetting derivative positions | ( | ( | ( | ( | |||||||||||||||||||
Cash collateral pledged | ( | ( | |||||||||||||||||||||
Net credit exposure | $ | $ | $ | $ |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | |||||||||
Unfunded loan commitments | $ | $ | |||||||||
Standby letters of credit (1) |
Fair Value Measurements at June 30, 2024 Using | |||||||||||||||||||||||
(dollars in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Equity securities | $ | $ | $ | $ | |||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
U.S. Treasury | |||||||||||||||||||||||
U.S. government-sponsored entities and agencies | |||||||||||||||||||||||
Mortgage-backed securities - Agency | |||||||||||||||||||||||
States and political subdivisions | |||||||||||||||||||||||
Pooled trust preferred securities | |||||||||||||||||||||||
Other securities | |||||||||||||||||||||||
Loans held-for-sale | |||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Derivative liabilities |
Fair Value Measurements at December 31, 2023 Using | |||||||||||||||||||||||
(dollars in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Equity securities | $ | $ | $ | $ | |||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
U.S. Treasury | |||||||||||||||||||||||
U.S. government-sponsored entities and agencies | |||||||||||||||||||||||
Mortgage-backed securities - Agency | |||||||||||||||||||||||
States and political subdivisions | |||||||||||||||||||||||
Pooled trust preferred securities | |||||||||||||||||||||||
Other securities | |||||||||||||||||||||||
Loans held-for-sale | |||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Derivative liabilities |
Fair Value Measurements at June 30, 2024 Using | |||||||||||||||||||||||
(dollars in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Collateral Dependent Loans: | |||||||||||||||||||||||
Commercial loans | $ | $ | $ | $ | |||||||||||||||||||
Commercial real estate loans | |||||||||||||||||||||||
Foreclosed Assets: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Residential | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2023 Using | |||||||||||||||||||||||
(dollars in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Collateral Dependent Loans: | |||||||||||||||||||||||
Commercial loans | $ | $ | $ | $ | |||||||||||||||||||
Commercial real estate loans | |||||||||||||||||||||||
Foreclosed Assets: | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
(dollars in thousands) | Fair Value | Valuation Techniques | Unobservable Input | Range (Weighted Average) (1) | |||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||
Collateral Dependent Loans | |||||||||||||||||||||||
Commercial loans | $ | Discounted | Discount for type of property, | ||||||||||||||||||||
cash flow | age of appraisal, and current status | ||||||||||||||||||||||
Commercial real estate loans | Discounted | Discount for type of property, | |||||||||||||||||||||
cash flow | age of appraisal, and current status | ||||||||||||||||||||||
Foreclosed Assets | |||||||||||||||||||||||
Commercial real estate (2) | Fair value of | Discount for type of property, | |||||||||||||||||||||
collateral | age of appraisal, and current status | ||||||||||||||||||||||
Residential (2) | Fair value of | Discount for type of property, | |||||||||||||||||||||
collateral | age of appraisal, and current status | ||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Collateral Dependent Loans | |||||||||||||||||||||||
Commercial loans | $ | Discounted | Discount for type of property, | ||||||||||||||||||||
cash flow | age of appraisal, and current status | ||||||||||||||||||||||
Commercial real estate loans | Discounted | Discount for type of property, | |||||||||||||||||||||
cash flow | age of appraisal, and current status | ||||||||||||||||||||||
Foreclosed Assets | |||||||||||||||||||||||
Commercial real estate | Fair value of | Discount for type of property, | |||||||||||||||||||||
collateral | age of appraisal, and current status | ||||||||||||||||||||||
(dollars in thousands) | Aggregate Fair Value | Difference | Contractual Principal | ||||||||||||||
June 30, 2024 | |||||||||||||||||
Loans held-for-sale | $ | $ | $ | ||||||||||||||
December 31, 2023 | |||||||||||||||||
Loans held-for-sale | $ | $ | $ |
(dollars in thousands) | Other Gains and (Losses) | Interest Income | Interest (Expense) | Total Changes in Fair Values Included in Current Period Earnings | |||||||||||||||||||
Three Months Ended June 30, 2024 | |||||||||||||||||||||||
Loans held-for-sale | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||||
Loans held-for-sale | $ | $ | $ | ( | $ | ||||||||||||||||||
Six Months Ended June 30, 2024 | |||||||||||||||||||||||
Loans held-for-sale | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Loans held-for-sale | $ | $ | $ | ( | $ |
Fair Value Measurements at June 30, 2024 Using | |||||||||||||||||||||||
(dollars in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Cash, due from banks, money market, and other interest-earning investments | $ | $ | $ | $ | |||||||||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||
U.S. government-sponsored entities and agencies | |||||||||||||||||||||||
Mortgage-backed securities - Agency | |||||||||||||||||||||||
State and political subdivisions | |||||||||||||||||||||||
Loans, net: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Consumer credit | |||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | $ | $ | $ | |||||||||||||||||||
Checking, NOW, savings, and money market interest-bearing deposits | |||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||
Federal funds purchased and interbank borrowings | |||||||||||||||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||||||
FHLB advances | |||||||||||||||||||||||
Other borrowings | |||||||||||||||||||||||
Accrued interest payable | |||||||||||||||||||||||
Standby letters of credit | |||||||||||||||||||||||
Off-Balance Sheet Financial Instruments | |||||||||||||||||||||||
Commitments to extend credit | $ | $ | $ | $ |
Fair Value Measurements at December 31, 2023 Using | |||||||||||||||||||||||
(dollars in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Cash, due from banks, money market, and other interest-earning investments | $ | $ | $ | $ | |||||||||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||
U.S. government-sponsored entities and agencies | |||||||||||||||||||||||
Mortgage-backed securities - Agency | |||||||||||||||||||||||
State and political subdivisions | |||||||||||||||||||||||
Loans, net: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Consumer credit | |||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | $ | $ | $ | |||||||||||||||||||
Checking, NOW, savings, and money market interest-bearing deposits | |||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||
Federal funds purchased and interbank borrowings | |||||||||||||||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||||||
FHLB advances | |||||||||||||||||||||||
Other borrowings | |||||||||||||||||||||||
Accrued interest payable | |||||||||||||||||||||||
Standby letters of credit | |||||||||||||||||||||||
Off-Balance Sheet Financial Instruments | |||||||||||||||||||||||
Commitments to extend credit | $ | $ | $ | $ |
Three Months Ended | |||||||||||||||||
(dollars and shares in thousands, except per share data) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||
Income Statement: | |||||||||||||||||
Net interest income | $ | 388,421 | $ | 356,458 | $ | 364,408 | $ | 375,086 | $ | 382,171 | |||||||
Taxable equivalent adjustment (1) (3) | 6,340 | 6,253 | 6,100 | 5,837 | 5,825 | ||||||||||||
Net interest income - taxable equivalent basis (3) | 394,761 | 362,711 | 370,508 | 380,923 | 387,996 | ||||||||||||
Provision for credit losses | 36,214 | 18,891 | 11,595 | 19,068 | 14,787 | ||||||||||||
Noninterest income | 87,271 | 77,522 | 100,094 | 80,938 | 81,629 | ||||||||||||
Noninterest expense | 282,999 | 262,317 | 284,235 | 244,776 | 246,584 | ||||||||||||
Net income available to common shareholders | 117,196 | 116,250 | 128,446 | 143,842 | 151,003 | ||||||||||||
Per Common Share Data: | |||||||||||||||||
Weighted average diluted common shares | 316,461 | 292,207 | 292,029 | 291,717 | 291,266 | ||||||||||||
Net income (diluted) | $ | 0.37 | $ | 0.40 | $ | 0.44 | $ | 0.49 | $ | 0.52 | |||||||
Cash dividends | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | ||||||||||||
Common dividend payout ratio (2) | 38 | % | 35 | % | 32 | % | 29 | % | 27 | % | |||||||
Book value | $ | 18.28 | $ | 18.24 | $ | 18.18 | $ | 17.07 | $ | 17.25 | |||||||
Stock price | 17.19 | 17.41 | 16.89 | 14.54 | 13.94 | ||||||||||||
Tangible common book value (3) | 11.05 | 11.10 | 11.00 | 9.87 | 10.03 | ||||||||||||
Performance Ratios: | |||||||||||||||||
Return on average assets | 0.92 | % | 0.98 | % | 1.09 | % | 1.22 | % | 1.29 | % | |||||||
Return on average common equity | 8.17 | 8.74 | 10.20 | 11.39 | 12.01 | ||||||||||||
Return on average tangible common equity (3) | 14.07 | 14.93 | 18.11 | 20.18 | 21.35 | ||||||||||||
Net interest margin (3) | 3.33 | 3.28 | 3.39 | 3.49 | 3.60 | ||||||||||||
Efficiency ratio (3) | 57.17 | 58.34 | 59.05 | 51.66 | 51.22 | ||||||||||||
Net charge-offs (recoveries) to average loans | 0.16 | 0.14 | 0.12 | 0.24 | 0.13 | ||||||||||||
Allowance for credit losses on loans to ending loans | 1.01 | 0.95 | 0.93 | 0.93 | 0.93 | ||||||||||||
Allowance for credit losses (4) to ending loans | 1.08 | 1.03 | 1.03 | 1.03 | 1.04 | ||||||||||||
Non-performing loans to ending loans | 0.94 | 0.98 | 0.83 | 0.80 | 0.91 | ||||||||||||
Balance Sheet: | |||||||||||||||||
Total loans | $ | 36,150,513 | $ | 33,623,319 | $ | 32,991,927 | $ | 32,577,834 | $ | 32,432,473 | |||||||
Total assets | 53,119,645 | 49,534,918 | 49,089,836 | 49,059,448 | 48,496,755 | ||||||||||||
Total deposits | 39,999,228 | 37,699,418 | 37,235,180 | 37,252,676 | 36,231,315 | ||||||||||||
Total borrowed funds | 6,085,204 | 5,331,161 | 5,331,147 | 5,556,010 | 6,034,008 | ||||||||||||
Total shareholders’ equity | 6,075,072 | 5,595,408 | 5,562,900 | 5,239,537 | 5,292,095 | ||||||||||||
Capital Ratios: | |||||||||||||||||
Risk-based capital ratios: | |||||||||||||||||
Tier 1 common equity | 10.73 | % | 10.76 | % | 10.70 | % | 10.41 | % | 10.14 | % | |||||||
Tier 1 | 11.33 | 11.40 | 11.35 | 11.06 | 10.79 | ||||||||||||
Total | 12.71 | 12.74 | 12.64 | 12.32 | 12.14 | ||||||||||||
Leverage ratio (to average assets) | 8.90 | 8.96 | 8.83 | 8.70 | 8.59 | ||||||||||||
Total equity to assets (averages) | 11.31 | 11.32 | 10.81 | 10.88 | 10.96 | ||||||||||||
Tangible common equity to tangible assets (3) | 6.94 | 6.86 | 6.85 | 6.15 | 6.33 | ||||||||||||
Nonfinancial Data: | |||||||||||||||||
Full-time equivalent employees | 4,267 | 3,955 | 3,940 | 3,981 | 4,021 | ||||||||||||
Banking centers | 280 | 258 | 258 | 257 | 256 |
Six Months Ended June 30, | ||||||||
(dollars and shares in thousands, except per share data) | 2024 | 2023 | ||||||
Income Statement: | ||||||||
Net interest income | $ | 744,879 | $ | 763,659 | ||||
Taxable equivalent adjustment (1) (3) | 12,593 | 11,491 | ||||||
Net interest income - taxable equivalent basis (3) | 757,472 | 775,150 | ||||||
Provision for credit losses | 55,105 | 28,224 | ||||||
Noninterest income | 164,793 | 152,310 | ||||||
Noninterest expense | 545,316 | 497,295 | ||||||
Net income available to common shareholders | 233,446 | 293,569 | ||||||
Per Common Share Data: | ||||||||
Weighted average diluted common shares | 304,207 | 291,870 | ||||||
Net income (diluted) | $ | 0.77 | $ | 1.01 | ||||
Cash dividends | 0.28 | 0.28 | ||||||
Common dividend payout ratio (2) | 36 | % | 28 | % | ||||
Book value | $ | 18.28 | $ | 17.25 | ||||
Stock price | 17.19 | 13.94 | ||||||
Tangible common book value (3) | 11.05 | 10.03 | ||||||
Performance Ratios: | ||||||||
Return on average assets | 0.95 | % | 1.27 | % | ||||
Return on average common equity | 8.45 | 11.80 | ||||||
Return on average tangible common equity (3) | 14.48 | 21.19 | ||||||
Net interest margin (3) | 3.31 | 3.65 | ||||||
Efficiency ratio (3) | 57.73 | 52.01 | ||||||
Net charge-offs (recoveries) to average loans | 0.15 | 0.17 | ||||||
Allowance for credit losses on loans to ending loans | 1.01 | 0.93 | ||||||
Allowance for credit losses (4) to ending loans | 1.08 | 1.04 | ||||||
Non-performing loans to ending loans | 0.94 | 0.91 | ||||||
Balance Sheet: | ||||||||
Total loans | $ | 36,150,513 | $ | 32,432,473 | ||||
Total assets | 53,119,645 | 48,496,755 | ||||||
Total deposits | 39,999,228 | 36,231,315 | ||||||
Total borrowed funds | 6,085,204 | 6,034,008 | ||||||
Total shareholders’ equity | 6,075,072 | 5,292,095 | ||||||
Capital Ratios: | ||||||||
Risk-based capital ratios: | ||||||||
Tier 1 common equity | 10.73 | % | 10.14 | % | ||||
Tier 1 | 11.33 | 10.79 | ||||||
Total | 12.71 | 12.14 | ||||||
Leverage ratio (to average assets) | 8.90 | 8.59 | ||||||
Total equity to assets (averages) | 11.31 | 10.98 | ||||||
Tangible common equity to tangible assets (3) | 6.94 | 6.33 | ||||||
Nonfinancial Data: | ||||||||
Full-time equivalent employees | 4,267 | 4,021 | ||||||
Banking centers | 280 | 256 |
Three Months Ended | ||||||||||||||||||||||||||||||||
(dollars and shares in thousands, except per share data) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||||||||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
Net income per common share: | ||||||||||||||||||||||||||||||||
Net income applicable to common shares | $ | 117,196 | $ | 116,250 | $ | 128,446 | $ | 143,842 | $ | 151,003 | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Merger-related charges | 19,440 | 2,908 | 5,529 | 6,257 | 2,372 | |||||||||||||||||||||||||||
CECL Day 1 non-PCD provision expense | 15,312 | — | — | — | — | |||||||||||||||||||||||||||
Debt securities (gains) losses | (2) | 16 | 825 | 241 | (17) | |||||||||||||||||||||||||||
Distribution of excess pension assets expense | — | 13,318 | — | — | — | |||||||||||||||||||||||||||
FDIC special assessment | — | 2,994 | 19,052 | — | — | |||||||||||||||||||||||||||
Gain on sale of Visa Class B restricted shares | — | — | (21,635) | — | — | |||||||||||||||||||||||||||
Contract termination charge | — | — | 4,413 | — | — | |||||||||||||||||||||||||||
Louisville expenses | — | — | — | — | 3,361 | |||||||||||||||||||||||||||
Property optimization charges | — | — | — | — | 242 | |||||||||||||||||||||||||||
Less: tax effect on net total adjustments (2) | (7,888) | (4,695) | (1,988) | (1,082) | (695) | |||||||||||||||||||||||||||
Net income applicable to common shares, adjusted (1) | $ | 144,058 | $ | 130,791 | $ | 134,642 | $ | 149,258 | $ | 156,266 | ||||||||||||||||||||||
Weighted average diluted common shares outstanding | 316,461 | 292,207 | 292,029 | 291,717 | 291,266 | |||||||||||||||||||||||||||
Net income per common share, diluted | $ | 0.37 | $ | 0.40 | $ | 0.44 | $ | 0.49 | $ | 0.52 | ||||||||||||||||||||||
Adjusted net income per common share, diluted (1) | $ | 0.46 | $ | 0.45 | $ | 0.46 | $ | 0.51 | $ | 0.54 | ||||||||||||||||||||||
Tangible common book value: | ||||||||||||||||||||||||||||||||
Shareholders’ common equity | $ | 5,831,353 | $ | 5,351,689 | $ | 5,319,181 | $ | 4,995,818 | $ | 5,048,376 | ||||||||||||||||||||||
Deduct: Goodwill and intangible assets | 2,306,204 | 2,095,511 | 2,100,966 | 2,106,835 | 2,112,875 | |||||||||||||||||||||||||||
Tangible shareholders’ common equity (1) | $ | 3,525,149 | $ | 3,256,178 | $ | 3,218,215 | $ | 2,888,983 | $ | 2,935,501 | ||||||||||||||||||||||
Period end common shares | 318,969 | 293,330 | 292,655 | 292,586 | 292,597 | |||||||||||||||||||||||||||
Tangible common book value (1) | 11.05 | 11.10 | 11.00 | 9.87 | 10.03 | |||||||||||||||||||||||||||
Return on average tangible common equity: | ||||||||||||||||||||||||||||||||
Net income applicable to common shares | $ | 117,196 | $ | 116,250 | $ | 128,446 | $ | 143,842 | $ | 151,003 | ||||||||||||||||||||||
Add: Intangible amortization (net of tax) (2) | 5,569 | 4,091 | 4,402 | 4,530 | 4,545 | |||||||||||||||||||||||||||
Tangible net income (1) | $ | 122,765 | $ | 120,341 | $ | 132,848 | $ | 148,372 | $ | 155,548 | ||||||||||||||||||||||
Average shareholders’ common equity | $ | 5,735,257 | $ | 5,321,823 | $ | 5,037,768 | $ | 5,050,353 | $ | 5,030,083 | ||||||||||||||||||||||
Deduct: Average goodwill and intangible assets | 2,245,405 | 2,098,338 | 2,103,935 | 2,109,944 | 2,115,894 | |||||||||||||||||||||||||||
Average tangible shareholders’ common equity (1) | $ | 3,489,852 | $ | 3,223,485 | $ | 2,933,833 | $ | 2,940,409 | $ | 2,914,189 | ||||||||||||||||||||||
Return on average tangible common equity (1) | 14.07 | % | 14.93 | % | 18.11 | % | 20.18 | % | 21.35 | % | ||||||||||||||||||||||
Net interest margin: | ||||||||||||||||||||||||||||||||
Net interest income | $ | 388,421 | $ | 356,458 | $ | 364,408 | $ | 375,086 | $ | 382,171 | ||||||||||||||||||||||
Taxable equivalent adjustment | 6,340 | 6,253 | 6,100 | 5,837 | 5,825 | |||||||||||||||||||||||||||
Net interest income - taxable equivalent basis (1) | $ | 394,761 | $ | 362,711 | $ | 370,508 | $ | 380,923 | $ | 387,996 | ||||||||||||||||||||||
Average earning assets | $ | 47,406,849 | $ | 44,175,079 | $ | 43,701,283 | $ | 43,617,456 | $ | 43,097,198 | ||||||||||||||||||||||
Net interest margin (1) | 3.33 | % | 3.28 | % | 3.39 | % | 3.49 | % | 3.60 | % | ||||||||||||||||||||||
Efficiency ratio: | ||||||||||||||||||||||||||||||||
Noninterest expense | $ | 282,999 | $ | 262,317 | $ | 284,235 | $ | 244,776 | $ | 246,584 | ||||||||||||||||||||||
Deduct: Intangible amortization expense | 7,425 | 5,455 | 5,869 | 6,040 | 6,060 | |||||||||||||||||||||||||||
Adjusted noninterest expense (1) | $ | 275,574 | $ | 256,862 | $ | 278,366 | $ | 238,736 | $ | 240,524 | ||||||||||||||||||||||
Net interest income - taxable equivalent basis (1) (see above) | $ | 394,761 | $ | 362,711 | $ | 370,508 | $ | 380,923 | $ | 387,996 | ||||||||||||||||||||||
Noninterest income | 87,271 | 77,522 | 100,094 | 80,938 | 81,629 | |||||||||||||||||||||||||||
Deduct: Debt securities gains (losses), net | 2 | (16) | (825) | (241) | 17 | |||||||||||||||||||||||||||
Adjusted total revenue (1) | $ | 482,030 | $ | 440,249 | $ | 471,427 | $ | 462,102 | $ | 469,608 | ||||||||||||||||||||||
Efficiency ratio (1) | 57.17 | % | 58.34 | % | 59.05 | % | 51.66 | % | 51.22 | % | ||||||||||||||||||||||
Tangible common equity to tangible assets: | ||||||||||||||||||||||||||||||||
Tangible shareholders’ equity (1) (see above) | $ | 3,525,149 | $ | 3,256,178 | $ | 3,218,215 | $ | 2,888,983 | $ | 2,935,501 | ||||||||||||||||||||||
Assets | $ | 53,119,645 | $ | 49,534,918 | $ | 49,089,836 | $ | 49,059,448 | $ | 48,496,755 | ||||||||||||||||||||||
Deduct: Goodwill and intangible assets | 2,306,204 | 2,095,511 | 2,100,966 | 2,106,835 | 2,112,875 | |||||||||||||||||||||||||||
Tangible assets (1) | $ | 50,813,441 | $ | 47,439,407 | $ | 46,988,870 | $ | 46,952,613 | $ | 46,383,880 | ||||||||||||||||||||||
Tangible common equity to tangible assets (1) | 6.94 | % | 6.86 | % | 6.85 | % | 6.15 | % | 6.33 | % |
Six Months Ended June 30, | ||||||||||||||
(dollars and shares in thousands, except per share data) | 2024 | 2023 | ||||||||||||
Net income per common share: | ||||||||||||||
Net income applicable to common shares | $ | 233,446 | $ | 293,569 | ||||||||||
Adjustments: | ||||||||||||||
Merger-related charges | 22,348 | 16,930 | ||||||||||||
CECL Day 1 non-PCD provision expense | 15,312 | — | ||||||||||||
Distribution of excess pension assets expense | 13,318 | — | ||||||||||||
FDIC special assessment | 2,994 | — | ||||||||||||
Debt securities (gains) losses | 14 | 5,199 | ||||||||||||
Louisville expenses | — | 3,361 | ||||||||||||
Property optimization charges | — | 1,559 | ||||||||||||
Less: tax effect on net total adjustments (2) | (12,583) | (5,291) | ||||||||||||
Net income applicable to common shares, adjusted (1) | $ | 274,849 | $ | 315,327 | ||||||||||
Weighted average diluted common shares outstanding | 304,207 | 291,870 | ||||||||||||
Net income per common share, diluted | $ | 0.77 | $ | 1.01 | ||||||||||
Adjusted net income per common share, diluted (1) | $ | 0.90 | $ | 1.08 | ||||||||||
Tangible common book value: | ||||||||||||||
Shareholders’ common equity | $ | 5,831,353 | $ | 5,048,376 | ||||||||||
Deduct: Goodwill and intangible assets | 2,306,204 | 2,112,875 | ||||||||||||
Tangible shareholders’ common equity (1) | $ | 3,525,149 | $ | 2,935,501 | ||||||||||
Period end common shares | 318,969 | 292,597 | ||||||||||||
Tangible common book value (1) | 11.05 | 10.03 | ||||||||||||
Return on average tangible common equity: | ||||||||||||||
Net income applicable to common shares | $ | 233,446 | $ | 293,569 | ||||||||||
Add: Intangible amortization (net of tax) (2) | 9,660 | 9,184 | ||||||||||||
Tangible net income (1) | $ | 243,106 | $ | 302,753 | ||||||||||
Average shareholders’ common equity | $ | 5,528,540 | $ | 4,976,573 | ||||||||||
Deduct: Average goodwill and intangible assets | 2,171,872 | 2,119,008 | ||||||||||||
Average tangible shareholders’ common equity (1) | $ | 3,356,668 | $ | 2,857,565 | ||||||||||
Return on average tangible common equity (1) | 14.48 | % | 21.19 | % | ||||||||||
Net interest margin: | ||||||||||||||
Net interest income | $ | 744,879 | $ | 763,659 | ||||||||||
Taxable equivalent adjustment | 12,593 | 11,491 | ||||||||||||
Net interest income - taxable equivalent basis (1) | $ | 757,472 | $ | 775,150 | ||||||||||
Average earning assets | $ | 45,790,964 | $ | 42,522,747 | ||||||||||
Net interest margin (1) | 3.31 | % | 3.65 | % | ||||||||||
Efficiency ratio: | ||||||||||||||
Noninterest expense | $ | 545,316 | $ | 497,295 | ||||||||||
Deduct: Intangible amortization expense | 12,880 | 12,246 | ||||||||||||
Adjusted noninterest expense (1) | $ | 532,436 | $ | 485,049 | ||||||||||
Net interest income - taxable equivalent basis (1) (see above) | $ | 757,472 | $ | 775,150 | ||||||||||
Noninterest income | 164,793 | 152,310 | ||||||||||||
Deduct: Debt securities gains (losses), net | (14) | (5,199) | ||||||||||||
Adjusted total revenue (1) | $ | 922,279 | $ | 932,659 | ||||||||||
Efficiency ratio (1) | 57.73 | % | 52.01 | % | ||||||||||
Tangible common equity to tangible assets: | ||||||||||||||
Tangible shareholders’ equity (1) (see above) | $ | 3,525,149 | $ | 2,935,501 | ||||||||||
Assets | $ | 53,119,645 | $ | 48,496,755 | ||||||||||
Deduct: Goodwill and intangible assets | 2,306,204 | 2,112,875 | ||||||||||||
Tangible assets (1) | $ | 50,813,441 | $ | 46,383,880 | ||||||||||
Tangible common equity to tangible assets (1) | 6.94 | % | 6.33 | % |
(dollars in thousands, except per share data) | Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||
Income Statement Summary: | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 388,421 | $ | 382,171 | 1.6 | % | $ | 744,879 | $ | 763,659 | (2.5) | % | ||||||||||||||||||||||||||
Provision for credit losses | 36,214 | 14,787 | 144.9 | 55,105 | 28,224 | 95.2 | ||||||||||||||||||||||||||||||||
Noninterest income | 87,271 | 81,629 | 6.9 | 164,793 | 152,310 | 8.2 | ||||||||||||||||||||||||||||||||
Noninterest expense | 282,999 | 246,584 | 14.8 | 545,316 | 497,295 | 9.7 | ||||||||||||||||||||||||||||||||
Net income applicable to common shareholders | 117,196 | 151,003 | (22.4) | 233,446 | 293,569 | (20.5) | ||||||||||||||||||||||||||||||||
Net income per common share - diluted | 0.37 | 0.52 | (28.8) | 0.77 | 1.01 | (23.8) | ||||||||||||||||||||||||||||||||
Other Data: | ||||||||||||||||||||||||||||||||||||||
Return on average common equity | 8.17 | % | 12.01 | % | 8.45 | % | 11.80 | % | ||||||||||||||||||||||||||||||
Return on average tangible common equity (1) | 14.07 | 21.35 | 14.48 | 21.19 | ||||||||||||||||||||||||||||||||||
Efficiency ratio (1) | 57.17 | 51.22 | 57.73 | 52.01 | ||||||||||||||||||||||||||||||||||
Tier 1 leverage ratio | 8.90 | 8.59 | 8.90 | 8.59 | ||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) to average loans | 0.16 | 0.13 | 0.15 | 0.17 |
(Tax equivalent basis, dollars in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||
Earning Assets | Average Balance | Income (1)/ Expense | Yield/ Rate | Average Balance | Income (1)/ Expense | Yield/ Rate | |||||||||||||||||||||||||||||
Money market and other interest-earning investments | $ | 814,944 | $ | 11,311 | 5.58 | % | $ | 724,601 | $ | 8,966 | 4.96 | % | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
Treasury and government sponsored agencies | 2,208,935 | 21,531 | 3.90 | % | 2,222,269 | 19,355 | 3.48 | % | |||||||||||||||||||||||||||
Mortgage-backed securities | 5,828,225 | 47,904 | 3.29 | % | 5,301,084 | 34,291 | 2.59 | % | |||||||||||||||||||||||||||
States and political subdivisions | 1,686,994 | 14,290 | 3.39 | % | 1,768,897 | 14,396 | 3.26 | % | |||||||||||||||||||||||||||
Other securities | 788,571 | 12,583 | 6.38 | % | 824,482 | 9,995 | 4.85 | % | |||||||||||||||||||||||||||
Total investment securities | 10,512,725 | 96,308 | 3.66 | % | 10,116,732 | 78,037 | 3.09 | % | |||||||||||||||||||||||||||
Loans: (2) | |||||||||||||||||||||||||||||||||||
Commercial | 10,345,098 | 183,425 | 7.09 | % | 9,862,728 | 163,721 | 6.64 | % | |||||||||||||||||||||||||||
Commercial real estate | 15,870,809 | 260,407 | 6.56 | % | 13,164,390 | 199,287 | 6.06 | % | |||||||||||||||||||||||||||
Residential real estate loans | 6,952,942 | 67,683 | 3.89 | % | 6,643,254 | 60,717 | 3.66 | % | |||||||||||||||||||||||||||
Consumer | 2,910,331 | 50,869 | 7.03 | % | 2,585,493 | 39,999 | 6.21 | % | |||||||||||||||||||||||||||
Total loans | 36,079,180 | 562,384 | 6.24 | % | 32,255,865 | 463,724 | 5.75 | % | |||||||||||||||||||||||||||
Total earning assets | 47,406,849 | $ | 670,003 | 5.66 | % | 43,097,198 | $ | 550,727 | 5.11 | % | |||||||||||||||||||||||||
Deduct: Allowance for credit losses on loans | (331,043) | (301,311) | |||||||||||||||||||||||||||||||||
Non-Earning Assets | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 430,256 | 418,972 | |||||||||||||||||||||||||||||||||
Other assets | 5,341,022 | 4,884,694 | |||||||||||||||||||||||||||||||||
Total assets | $ | 52,847,084 | $ | 48,099,553 | |||||||||||||||||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||||||||||||||
Checking and NOW | $ | 8,189,454 | $ | 34,398 | 1.69 | % | $ | 7,881,863 | $ | 24,358 | 1.24 | % | |||||||||||||||||||||||
Savings | 5,044,800 | 5,254 | 0.42 | % | 5,785,603 | 3,247 | 0.23 | % | |||||||||||||||||||||||||||
Money market | 10,728,156 | 102,560 | 3.84 | % | 6,084,963 | 35,358 | 2.33 | % | |||||||||||||||||||||||||||
Time deposits, excluding brokered deposits | 5,358,103 | 56,586 | 4.25 | % | 3,680,029 | 26,633 | 2.90 | % | |||||||||||||||||||||||||||
Brokered deposits | 1,244,237 | 17,008 | 5.50 | % | 948,397 | 11,378 | 4.81 | % | |||||||||||||||||||||||||||
Total interest-bearing deposits | 30,564,750 | 215,806 | 2.84 | % | 24,380,855 | 100,974 | 1.66 | % | |||||||||||||||||||||||||||
Federal funds purchased and interbank borrowings | 148,835 | 1,986 | 5.37 | % | 441,145 | 5,655 | 5.14 | % | |||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 249,939 | 639 | 1.03 | % | 340,178 | 900 | 1.06 | % | |||||||||||||||||||||||||||
FHLB advances | 4,473,978 | 44,643 | 4.01 | % | 5,283,728 | 45,088 | 3.42 | % | |||||||||||||||||||||||||||
Other borrowings | 891,609 | 12,168 | 5.49 | % | 796,536 | 10,114 | 5.09 | % | |||||||||||||||||||||||||||
Total borrowed funds | 5,764,361 | 59,436 | 4.15 | % | 6,861,587 | 61,757 | 3.61 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 36,329,111 | $ | 275,242 | 3.05 | % | $ | 31,242,442 | $ | 162,731 | 2.09 | % | |||||||||||||||||||||||
Noninterest-Bearing Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 9,558,675 | $ | 10,741,646 | |||||||||||||||||||||||||||||||
Other liabilities | 980,322 | 841,663 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 5,978,976 | 5,273,802 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 52,847,084 | $ | 48,099,553 | |||||||||||||||||||||||||||||||
Net interest income - taxable equivalent basis | $ | 394,761 | 3.33 | % | $ | 387,996 | 3.60 | % | |||||||||||||||||||||||||||
Taxable equivalent adjustment | (6,340) | (5,825) | |||||||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 388,421 | 3.28 | % | $ | 382,171 | 3.55 | % |
(Tax equivalent basis, dollars in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||
Earning Assets | Average Balance | Income (1)/ Expense | Yield/ Rate | Average Balance | Income (1)/ Expense | Yield/ Rate | |||||||||||||||||||||||||||||
Money market and other interest-earning investments | $ | 786,094 | $ | 21,296 | 5.45 | % | $ | 611,903 | $ | 12,064 | 3.98 | % | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
Treasury and government sponsored agencies | 2,285,706 | 44,797 | 3.92 | % | 2,209,916 | 35,886 | 3.25 | % | |||||||||||||||||||||||||||
Mortgage-backed securities | 5,592,655 | 86,792 | 3.10 | % | 5,364,788 | 69,381 | 2.59 | % | |||||||||||||||||||||||||||
States and political subdivisions | 1,683,585 | 28,266 | 3.36 | % | 1,788,498 | 29,086 | 3.25 | % | |||||||||||||||||||||||||||
Other securities | 779,504 | 24,756 | 6.35 | % | 781,549 | 18,599 | 4.76 | % | |||||||||||||||||||||||||||
Total investment securities | 10,341,450 | 184,611 | 3.57 | % | 10,144,751 | 152,952 | 3.02 | % | |||||||||||||||||||||||||||
Loans: (2) | |||||||||||||||||||||||||||||||||||
Commercial | 9,942,741 | 350,688 | 7.05 | % | 9,661,029 | 311,341 | 6.45 | % | |||||||||||||||||||||||||||
Commercial real estate | 15,119,590 | 490,493 | 6.49 | % | 12,910,787 | 378,762 | 5.87 | % | |||||||||||||||||||||||||||
Residential real estate loans | 6,823,378 | 130,686 | 3.83 | % | 6,582,982 | 118,817 | 3.61 | % | |||||||||||||||||||||||||||
Consumer | 2,777,711 | 94,463 | 6.84 | % | 2,611,295 | 78,106 | 6.03 | % | |||||||||||||||||||||||||||
Total loans | 34,663,420 | 1,066,330 | 6.16 | % | 31,766,093 | 887,026 | 5.59 | % | |||||||||||||||||||||||||||
Total earning assets | 45,790,964 | $ | 1,272,237 | 5.56 | % | 42,522,747 | $ | 1,052,042 | 4.95 | % | |||||||||||||||||||||||||
Deduct: Allowance for credit losses on loans | (322,256) | (302,844) | |||||||||||||||||||||||||||||||||
Non-Earning Assets | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 396,466 | 428,370 | |||||||||||||||||||||||||||||||||
Other assets | 5,151,308 | 4,895,843 | |||||||||||||||||||||||||||||||||
Total assets | $ | 51,016,482 | $ | 47,544,116 | |||||||||||||||||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||||||||||||||
Checking and NOW | $ | 7,665,327 | $ | 59,650 | 1.56 | % | $ | 7,934,927 | $ | 43,717 | 1.11 | % | |||||||||||||||||||||||
Savings | 5,035,100 | 10,271 | 0.41 | % | 5,983,407 | 5,477 | 0.18 | % | |||||||||||||||||||||||||||
Money market | 10,322,808 | 196,773 | 3.83 | % | 5,864,351 | 55,368 | 1.90 | % | |||||||||||||||||||||||||||
Time deposits, excluding brokered deposits | 5,023,620 | 104,018 | 4.16 | % | 3,370,668 | 41,922 | 2.51 | % | |||||||||||||||||||||||||||
Brokered deposits | 1,145,744 | 30,533 | 5.36 | % | 725,701 | 17,083 | 4.75 | % | |||||||||||||||||||||||||||
Total interest-bearing deposits | 29,192,599 | 401,245 | 2.76 | % | 23,879,054 | 163,567 | 1.38 | % | |||||||||||||||||||||||||||
Federal funds purchased and interbank borrowings | 108,962 | 2,947 | 5.44 | % | 430,278 | 10,494 | 4.92 | % | |||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 273,088 | 1,556 | 1.15 | % | 376,298 | 1,679 | 0.90 | % | |||||||||||||||||||||||||||
FHLB advances | 4,430,236 | 85,810 | 3.90 | % | 4,781,326 | 83,084 | 3.50 | % | |||||||||||||||||||||||||||
Other borrowings | 858,727 | 23,207 | 5.43 | % | 788,921 | 18,068 | 4.62 | % | |||||||||||||||||||||||||||
Total borrowed funds | 5,671,013 | 113,520 | 4.03 | % | 6,376,823 | 113,325 | 3.58 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 34,863,612 | $ | 514,765 | 2.97 | % | $ | 30,255,877 | $ | 276,892 | 1.85 | % | |||||||||||||||||||||||
Noninterest-Bearing Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 9,408,406 | $ | 11,131,789 | |||||||||||||||||||||||||||||||
Other liabilities | 972,205 | 936,158 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 5,772,259 | 5,220,292 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 51,016,482 | $ | 47,544,116 | |||||||||||||||||||||||||||||||
Net interest income - taxable equivalent basis | $ | 757,472 | 3.31 | % | $ | 775,150 | 3.65 | % | |||||||||||||||||||||||||||
Taxable equivalent adjustment | (12,593) | (11,491) | |||||||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 744,879 | 3.25 | % | $ | 763,659 | 3.59 | % |
From Three Months Ended June 30, 2023 to Three Months Ended June 30, 2024 | From Six Months Ended June 30, 2023 to Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||
Total Change (1) | Attributed to | Total Change (1) | Attributed to | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Volume | Rate | Volume | Rate | |||||||||||||||||||||||||||||||
Interest Income | |||||||||||||||||||||||||||||||||||
Money market and other interest-earning investments | $ | 2,345 | $ | 1,172 | $ | 1,173 | $ | 9,232 | $ | 4,096 | $ | 5,136 | |||||||||||||||||||||||
Investment securities (2) | 18,271 | 3,342 | 14,929 | 31,659 | 3,239 | 28,420 | |||||||||||||||||||||||||||||
Loans (3) | 98,660 | 57,130 | 41,530 | 179,304 | 85,235 | 94,069 | |||||||||||||||||||||||||||||
Total interest income | 119,276 | 61,644 | 57,632 | 220,195 | 92,570 | 127,625 | |||||||||||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||||||||||||||
Checking and NOW deposits | 10,040 | 1,065 | 8,975 | 15,933 | (1,787) | 17,720 | |||||||||||||||||||||||||||||
Savings deposits | 2,007 | (606) | 2,613 | 4,794 | (1,416) | 6,210 | |||||||||||||||||||||||||||||
Money market deposits | 67,202 | 35,610 | 31,592 | 141,405 | 63,637 | 77,768 | |||||||||||||||||||||||||||||
Time deposits, excluding brokered deposits | 29,953 | 14,880 | 15,073 | 62,096 | 27,460 | 34,636 | |||||||||||||||||||||||||||||
Brokered deposits | 5,630 | 3,782 | 1,848 | 13,450 | 10,600 | 2,850 | |||||||||||||||||||||||||||||
Federal funds purchased and interbank borrowings | (3,669) | (3,838) | 169 | (7,547) | (8,286) | 739 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | (261) | (235) | (26) | (123) | (525) | 402 | |||||||||||||||||||||||||||||
FHLB advances | (445) | (7,588) | 7,143 | 2,726 | (6,387) | 9,113 | |||||||||||||||||||||||||||||
Other borrowings | 2,054 | 1,239 | 815 | 5,139 | 1,766 | 3,373 | |||||||||||||||||||||||||||||
Total interest expense | 112,511 | 44,309 | 68,202 | 237,873 | 85,062 | 152,811 | |||||||||||||||||||||||||||||
Net interest income | $ | 6,765 | $ | 17,335 | $ | (10,570) | $ | (17,678) | $ | 7,508 | $ | (25,186) |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||||
Provision for credit losses on loans | $ | 36,745 | $ | 11,936 | 207.9 | % | $ | 60,598 | $ | 23,405 | 158.9 | % | ||||||||||||||||||||||||||
Provision (release) for credit losses on unfunded loan commitments | (531) | 2,851 | (118.6) | (5,493) | 4,819 | (214.0) | ||||||||||||||||||||||||||||||||
Total provision for credit losses | $ | 36,214 | $ | 14,787 | 144.9 | % | $ | 55,105 | $ | 28,224 | 95.2 | % | ||||||||||||||||||||||||||
Net (charge-offs) recoveries on non-PCD loans | $ | (9,821) | $ | (4,689) | 109.4 | % | $ | (15,882) | $ | (8,727) | 82.0 | % | ||||||||||||||||||||||||||
Net (charge-offs) recoveries on PCD loans | (4,224) | (5,403) | (21.8) | (9,913) | (17,794) | (44.3) | ||||||||||||||||||||||||||||||||
Total net (charge-offs) recoveries on loans | $ | (14,045) | $ | (10,092) | 39.2 | % | $ | (25,795) | $ | (26,521) | (2.7) | % | ||||||||||||||||||||||||||
Net charge-offs (recoveries) to average loans | 0.16 | % | 0.13 | % | 24.5 | % | 0.15 | % | 0.17 | % | (10.8) |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||||
Wealth and investment services fees | $ | 29,358 | $ | 26,521 | 10.7 | % | $ | 57,662 | $ | 53,441 | 7.9 | % | ||||||||||||||||||||||||||
Service charges on deposit accounts | 19,350 | 17,751 | 9.0 | 37,248 | 34,754 | 7.2 | ||||||||||||||||||||||||||||||||
Debit card and ATM fees | 10,993 | 10,653 | 3.2 | 21,047 | 20,635 | 2.0 | ||||||||||||||||||||||||||||||||
Mortgage banking revenue | 7,064 | 4,165 | 69.6 | 11,542 | 7,565 | 52.6 | ||||||||||||||||||||||||||||||||
Capital markets income | 4,729 | 6,173 | (23.4) | 7,629 | 13,112 | (41.8) | ||||||||||||||||||||||||||||||||
Company-owned life insurance | 5,739 | 4,698 | 22.2 | 9,173 | 7,884 | 16.3 | ||||||||||||||||||||||||||||||||
Debt securities gains (losses), net | 2 | 17 | (88.2) | (14) | (5,199) | (99.7) | ||||||||||||||||||||||||||||||||
Other income | 10,036 | 11,651 | (13.9) | 20,506 | 20,118 | 1.9 | ||||||||||||||||||||||||||||||||
Total noninterest income | $ | 87,271 | $ | 81,629 | 6.9 | % | $ | 164,793 | $ | 152,310 | 8.2 | % |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 159,193 | $ | 135,810 | 17.2 | % | $ | 308,996 | $ | 273,174 | 13.1 | % | ||||||||||||||||||||||||||
Occupancy | 26,547 | 26,085 | 1.8 | 53,566 | 54,367 | (1.5) | ||||||||||||||||||||||||||||||||
Equipment | 8,704 | 7,721 | 12.7 | 17,375 | 15,110 | 15.0 | ||||||||||||||||||||||||||||||||
Marketing | 11,284 | 9,833 | 14.8 | 21,918 | 19,250 | 13.9 | ||||||||||||||||||||||||||||||||
Technology | 24,002 | 20,056 | 19.7 | 44,025 | 39,258 | 12.1 | ||||||||||||||||||||||||||||||||
Communication | 4,480 | 4,232 | 5.9 | 8,480 | 8,693 | (2.5) | ||||||||||||||||||||||||||||||||
Professional fees | 10,552 | 6,397 | 65.0 | 16,958 | 13,129 | 29.2 | ||||||||||||||||||||||||||||||||
FDIC assessment | 9,676 | 9,624 | 0.5 | 20,989 | 20,028 | 4.8 | ||||||||||||||||||||||||||||||||
Amortization of intangibles | 7,425 | 6,060 | 22.5 | 12,880 | 12,246 | 5.2 | ||||||||||||||||||||||||||||||||
Amortization of tax credit investments | 2,747 | 2,762 | (0.5) | 5,496 | 5,523 | (0.5) | ||||||||||||||||||||||||||||||||
Other expense | 18,389 | 18,004 | 2.1 | 34,633 | 36,517 | (5.2) | ||||||||||||||||||||||||||||||||
Total noninterest expense | $ | 282,999 | $ | 246,584 | 14.8 | % | $ | 545,316 | $ | 497,295 | 9.7 | % |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | $ Change | % Change | ||||||||||||||||
Commercial | $ | 10,332,631 | $ | 9,512,230 | $ | 820,401 | 8.6 | % | ||||||||||||
Commercial real estate | 16,016,958 | 14,140,629 | 1,876,329 | 13.3 | ||||||||||||||||
Residential real estate | 6,894,957 | 6,699,443 | 195,514 | 2.9 | ||||||||||||||||
Consumer | 2,905,967 | 2,639,625 | 266,342 | 10.1 | ||||||||||||||||
Total loans | $ | 36,150,513 | $ | 32,991,927 | $ | 3,158,586 | 9.6 | % |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
(dollars in thousands) | Outstanding | Exposure(1) | Nonaccrual | Outstanding | Exposure(1) | Nonaccrual | |||||||||||||||||
By Industry: | |||||||||||||||||||||||
Health care and social assistance | $ | 1,699,428 | $ | 2,034,742 | $ | 1,105 | $ | 1,567,286 | $ | 1,949,250 | $ | 7,390 | |||||||||||
Manufacturing | 1,698,087 | 2,764,161 | 19,573 | 1,589,727 | 2,734,935 | 7,408 | |||||||||||||||||
Wholesale trade | 879,982 | 1,684,226 | 2,285 | 748,058 | 1,541,951 | 3,789 | |||||||||||||||||
Construction | 755,914 | 1,587,470 | 2,478 | 554,312 | 1,437,025 | 2,040 | |||||||||||||||||
Real estate rental and leasing | 722,903 | 1,103,496 | 13,584 | 686,008 | 1,035,073 | 700 | |||||||||||||||||
Finance and insurance | 696,351 | 1,038,128 | 151 | 637,630 | 966,842 | 1 | |||||||||||||||||
Professional, scientific, and technical services | 541,489 | 960,129 | 5,848 | 458,133 | 821,738 | 3,825 | |||||||||||||||||
Transportation and warehousing | 539,579 | 715,776 | 7,514 | 453,630 | 703,976 | 1,746 | |||||||||||||||||
Accommodation and food services | 439,124 | 517,001 | 2,511 | 389,591 | 503,990 | 705 | |||||||||||||||||
Administrative and support and waste management and remediation services | 399,175 | 599,449 | 1,324 | 321,018 | 487,359 | 347 | |||||||||||||||||
Retail trade | 370,758 | 653,040 | 5,361 | 345,944 | 620,308 | 5,273 | |||||||||||||||||
Educational services | 270,487 | 403,267 | 6 | 263,539 | 406,867 | 7 | |||||||||||||||||
Agriculture, forestry, fishing, and hunting | 260,631 | 396,167 | 1,329 | 255,811 | 392,098 | 415 | |||||||||||||||||
Other services | 225,167 | 399,363 | 16,306 | 208,012 | 400,195 | 9,328 | |||||||||||||||||
Public administration | 206,816 | 263,039 | — | 216,939 | 285,963 | — | |||||||||||||||||
Other | 626,740 | 925,894 | 1,515 | 816,592 | 1,111,030 | 1,537 | |||||||||||||||||
Total | $ | 10,332,631 | $ | 16,045,348 | $ | 80,890 | $ | 9,512,230 | $ | 15,398,600 | $ | 44,511 | |||||||||||
By Loan Size: | |||||||||||||||||||||||
Less than $200,000 | 3 | % | 3 | % | 4 | % | 3 | % | 3 | % | 5 | % | |||||||||||
$200,000 to $1,000,000 | 12 | 12 | 21 | 11 | 10 | 20 | |||||||||||||||||
$1,000,000 to $5,000,000 | 24 | 25 | 43 | 24 | 25 | 48 | |||||||||||||||||
$5,000,000 to $10,000,000 | 16 | 15 | — | 16 | 16 | 7 | |||||||||||||||||
$10,000,000 to $25,000,000 | 29 | 27 | 32 | 31 | 28 | 20 | |||||||||||||||||
Greater than $25,000,000 | 16 | 18 | — | 15 | 18 | — | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
(dollars in thousands) | Outstanding | Exposure(1) | Nonaccrual | Outstanding | Exposure(1) | Nonaccrual | |||||||||||||||||
By Property Type: | |||||||||||||||||||||||
Multifamily | $ | 5,543,433 | $ | 6,900,297 | $ | 49,236 | $ | 4,794,605 | $ | 6,422,311 | $ | 6,050 | |||||||||||
Warehouse / Industrial | 2,927,878 | 3,318,702 | 9,510 | 2,704,656 | 3,308,273 | 6,459 | |||||||||||||||||
Retail | 2,248,607 | 2,386,802 | 24,413 | 1,886,233 | 1,958,254 | 29,823 | |||||||||||||||||
Office | 2,131,421 | 2,290,094 | 33,639 | 1,948,430 | 2,112,157 | 58,111 | |||||||||||||||||
Senior housing | 887,502 | 955,344 | 32,445 | 848,903 | 947,168 | 41,632 | |||||||||||||||||
Single family | 539,113 | 566,327 | 4,625 | 450,560 | 476,946 | 3,187 | |||||||||||||||||
Other (2) | 1,739,004 | 2,110,433 | 29,587 | 1,507,242 | 1,824,177 | 15,530 | |||||||||||||||||
Total | $ | 16,016,958 | $ | 18,527,999 | $ | 183,455 | $ | 14,140,629 | $ | 17,049,286 | $ | 160,792 |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | $ Change | % Change | ||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 9,336,042 | $ | 9,664,247 | $ | (328,205) | (3.4) | % | ||||||||||||
Interest-bearing: | ||||||||||||||||||||
Checking and NOW | 8,081,218 | 7,331,487 | 749,731 | 10.2 | % | |||||||||||||||
Savings | 4,983,811 | 5,099,186 | (115,375) | (2.3) | % | |||||||||||||||
Money market | 10,549,944 | 9,561,116 | 988,828 | 10.3 | % | |||||||||||||||
Time deposits | 7,048,213 | 5,579,144 | 1,469,069 | 26.3 | % | |||||||||||||||
Total deposits | 39,999,228 | 37,235,180 | 2,764,048 | 7.4 | % | |||||||||||||||
Wholesale borrowings: | ||||||||||||||||||||
Federal funds purchased and interbank borrowings | 250,154 | 390 | 249,764 | N/M | ||||||||||||||||
Securities sold under agreements to repurchase | 240,713 | 285,206 | (44,493) | (15.6) | % | |||||||||||||||
Federal Home Loan Bank advances | 4,744,560 | 4,280,681 | 463,879 | 10.8 | % | |||||||||||||||
Other borrowings | 849,777 | 764,870 | 84,907 | 11.1 | % | |||||||||||||||
Total wholesale borrowings | 6,085,204 | 5,331,147 | 754,057 | 14.1 | % | |||||||||||||||
Total funding | $ | 46,084,432 | $ | 42,566,327 | $ | 3,518,105 | 8.3 | % |
Regulatory Guidelines Minimum | Prompt Corrective Action "Well Capitalized" Guidelines | June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||
Tier 1 capital to total average assets (leverage ratio) | 4.00 | % | N/A | % | 8.90 | % | 8.83 | % | ||||||||||||||||||
Common equity Tier 1 capital to risk-weighted total assets | 7.00 | N/A | 10.73 | 10.70 | ||||||||||||||||||||||
Tier 1 capital to risk-weighted total assets | 8.50 | 6.00 | 11.33 | 11.35 | ||||||||||||||||||||||
Total capital to risk-weighted total assets | 10.50 | 10.00 | 12.71 | 12.64 | ||||||||||||||||||||||
Shareholders’ equity to assets | N/A | N/A | 11.44 | 11.33 |
Regulatory Guidelines Minimum | Prompt Corrective Action "Well Capitalized" Guidelines | June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||
Tier 1 capital to total average assets (leverage ratio) | 4.00 | % | 5.00 | % | 8.85 | % | 8.99 | % | ||||||||||||||||||
Common equity Tier 1 capital to risk-weighted total assets | 7.00 | 6.50 | 11.26 | 11.57 | ||||||||||||||||||||||
Tier 1 capital to risk-weighted total assets | 8.50 | 8.00 | 11.26 | 11.57 | ||||||||||||||||||||||
Total capital to risk-weighted total assets | 10.50 | 10.00 | 12.08 | 12.33 |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Total nonaccrual loans | $ | 340,181 | $ | 274,821 | ||||||||||
Total past due loans (90 days or more and still accruing) | 5,251 | 961 | ||||||||||||
Foreclosed assets | 8,290 | 9,434 | ||||||||||||
Total under-performing assets | $ | 353,722 | $ | 285,216 | ||||||||||
Classified loans (includes nonaccrual, past due 90 days, and other problem loans) | $ | 1,186,519 | $ | 875,140 | ||||||||||
Other classified assets (1) | 60,772 | 48,930 | ||||||||||||
Special mention loans | 967,655 | 843,920 | ||||||||||||
Total criticized and classified assets | $ | 2,214,946 | $ | 1,767,990 | ||||||||||
Asset Quality Ratios: | ||||||||||||||
Nonaccrual loans/total loans (2) | 0.94 | % | 0.83 | % | ||||||||||
Under-performing assets/total loans (2) | 0.98 | 0.86 | ||||||||||||
Under-performing assets/total assets | 0.67 | 0.58 | ||||||||||||
Allowance for credit losses on loans/under-performing assets | 103.57 | 107.85 | ||||||||||||
Allowance for credit losses on loans/nonaccrual loans | 107.69 | 111.93 |
Immediate Rate Decrease | June 30, 2024 Forward Curve | Immediate Rate Increase | ||||||||||||||||||||||||
(dollars in thousands) | -300 Basis Points | -200 Basis Points | -100 Basis Points | Base | +100 Basis Points | +200 Basis Points | +300 Basis Points | |||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||
Projected interest income: | ||||||||||||||||||||||||||
Money market, other interest earning investments, and investment securities | $ | 855,249 | $ | 839,638 | $ | 885,050 | $ | 894,175 | $ | 932,986 | $ | 990,743 | $ | 1,047,039 | $ | 1,102,619 | ||||||||||
Loans | 3,417,630 | 3,822,978 | 4,230,649 | 4,363,917 | 4,629,910 | 5,026,272 | 5,422,326 | 5,817,978 | ||||||||||||||||||
Total interest income | 4,272,879 | 4,662,616 | 5,115,699 | 5,258,092 | 5,562,896 | 6,017,015 | 6,469,365 | 6,920,597 | ||||||||||||||||||
Projected interest expense: | ||||||||||||||||||||||||||
Deposits | 678,766 | 993,235 | 1,310,490 | 1,373,925 | 1,626,368 | 1,967,119 | 2,319,244 | 2,664,273 | ||||||||||||||||||
Borrowings | 496,153 | 573,485 | 665,844 | 682,410 | 757,854 | 849,959 | 942,053 | 1,034,021 | ||||||||||||||||||
Total interest expense | 1,174,919 | 1,566,720 | 1,976,334 | 2,056,335 | 2,384,222 | 2,817,078 | 3,261,297 | 3,698,294 | ||||||||||||||||||
Net interest income | $ | 3,097,960 | $ | 3,095,896 | $ | 3,139,365 | $ | 3,201,757 | $ | 3,178,674 | $ | 3,199,937 | $ | 3,208,068 | $ | 3,222,303 | ||||||||||
Change from base | $ | (80,714) | $ | (82,778) | $ | (39,309) | $ | 23,083 | $ | 21,263 | $ | 29,394 | $ | 43,629 | ||||||||||||
% change from base | (2.54) | % | (2.60) | % | (1.24) | % | 0.73 | % | 0.67 | % | 0.92 | % | 1.37 | % | ||||||||||||
Immediate Rate Decrease | Immediate Rate Increase | |||||||||||||||||||||||||
-300 Basis Points | -200 Basis Points | -100 Basis Points | Base | +100 Basis Points | +200 Basis Points | +300 Basis Points | ||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||
Projected interest income: | ||||||||||||||||||||||||||
Money market, other interest earning investments, and investment securities | $ | 703,760 | $ | 700,039 | $ | 751,180 | $ | 805,138 | $ | 858,682 | $ | 912,190 | $ | 966,037 | ||||||||||||
Loans | 2,812,913 | 3,179,212 | 3,546,919 | 3,910,105 | 4,266,532 | 4,623,023 | 4,979,447 | |||||||||||||||||||
Total interest income | 3,516,673 | 3,879,251 | 4,298,099 | 4,715,243 | 5,125,214 | 5,535,213 | 5,945,484 | |||||||||||||||||||
Projected interest expense: | ||||||||||||||||||||||||||
Deposits | 358,077 | 570,196 | 785,031 | 1,012,889 | 1,259,985 | 1,507,077 | 1,754,162 | |||||||||||||||||||
Borrowings | 373,267 | 415,553 | 513,309 | 600,910 | 683,328 | 765,754 | 848,179 | |||||||||||||||||||
Total interest expense | 731,344 | 985,749 | 1,298,340 | 1,613,799 | 1,943,313 | 2,272,831 | 2,602,341 | |||||||||||||||||||
Net interest income | $ | 2,785,329 | $ | 2,893,502 | $ | 2,999,759 | $ | 3,101,444 | $ | 3,181,901 | $ | 3,262,382 | $ | 3,343,143 | ||||||||||||
Change from base | $ | (316,115) | $ | (207,942) | $ | (101,685) | $ | 80,457 | $ | 160,938 | $ | 241,699 | ||||||||||||||
% change from base | (10.19) | % | (6.70) | % | (3.28) | % | 2.59 | % | 5.19 | % | 7.79 | % |
(dollars in thousands) | ||||||||||||||
Maturity Bucket | Amount | Rate | ||||||||||||
2024 | $ | 4,696,839 | 4.78 | % | ||||||||||
2025 | 2,122,569 | 4.38 | ||||||||||||
2026 | 147,181 | 1.29 | ||||||||||||
2027 | 46,249 | 1.28 | ||||||||||||
2028 | 17,624 | 1.51 | ||||||||||||
2027 and beyond | 17,751 | 1.74 | ||||||||||||
Total | $ | 7,048,213 | 4.55 | % |
Moody’s Investors Service | ||||||||
Long-term | Short-term | |||||||
Old National | Baa1 | N/A | ||||||
Old National Bank | A1 | P-1 |
(dollars in thousands) | Parent Company | Subsidiaries | |||||||||
Available liquid funds: | |||||||||||
Cash and due from banks | $ | 436,277 | $ | 796,769 | |||||||
Unencumbered government-issued debt securities | — | 1,654,342 | |||||||||
Unencumbered investment grade municipal securities | — | 101,611 | |||||||||
Unencumbered corporate securities | — | 43,761 | |||||||||
Availability of borrowings*: | |||||||||||
Amount available from Federal Reserve discount window | — | 4,178,105 | |||||||||
Amount available from Federal Home Loan Bank | — | 6,476,625 | |||||||||
Total available funds | $ | 436,277 | $ | 13,251,213 |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) | |||||||||||||||||||
04/01/24 - 04/30/24 | 69,517 | $ | 16.65 | — | $ | 200,000,000 | |||||||||||||||||
05/01/24 - 05/31/24 | 5,312 | $ | 16.77 | — | $ | 200,000,000 | |||||||||||||||||
06/01/24 - 06/30/24 | 1,743 | $ | 17.09 | — | $ | 200,000,000 | |||||||||||||||||
Total | 76,572 | $ | 16.67 | — | $ | 200,000,000 |
Exhibit No. | Description | |||||||
2.1 | ||||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | The following materials from Old National’s Form 10-Q Report for the quarterly period ended June 30, 2024, formatted in inline XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. | |||||||
104 | The cover page from Old National’s Form 10-Q Report for the quarterly period ended June 30, 2024, formatted in inline XBRL and contained in Exhibit 101. |
OLD NATIONAL BANCORP | ||||||||
(Registrant) | ||||||||
By: | /s/ John V. Moran, IV | |||||||
John V. Moran, IV | ||||||||
Executive Vice President, Interim Chief Financial Officer, and Chief Strategy Officer | ||||||||
Duly Authorized Officer and Principal Financial Officer | ||||||||
Date: July 31, 2024 |
Date: | July 31, 2024 | By: | /s/ James C. Ryan, III | |||||||||||
James C. Ryan, III | ||||||||||||||
Chairman and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) |
Date: | July 31, 2024 | By: | /s/ John V. Moran, IV | |||||||||||
John V. Moran, IV | ||||||||||||||
Executive Vice President, Interim Chief Financial Officer, and Chief Strategy Officer | ||||||||||||||
(Principal Financial Officer) |
By: | /s/ James C. Ryan, III | |||||||
James C. Ryan, III | ||||||||
Chairman and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Date: July 31, 2024 |
By: | /s/ John V. Moran, IV | |||||||
John V. Moran, IV | ||||||||
Executive Vice President, Interim Chief Financial Officer, and Chief Strategy Officer | ||||||||
(Principal Financial Officer) | ||||||||
Date: July 31, 2024 |
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Available-for-sale, amortized cost | $ 8,168,508 | $ 7,684,889 |
Investment securities - held-to-maturity, fair value | $ 2,512,502 | $ 2,601,188 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares issued (in shares) | 231 | 231 |
Preferred stock, shares outstanding (in shares) | 231 | 231 |
Common stock, stated value (in dollars per share) | $ 1.00 | $ 1.00 |
Authorized and unissued common shares reserved for issuance (in shares) | 600,000 | 600,000 |
Common stock, shares issued (in shares) | 318,969 | 292,655 |
Common stock, shares outstanding (in shares) | 318,969 | 292,655 |
Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Loans including fees: | ||||
Taxable | $ 545,622 | $ 449,896 | $ 1,032,983 | $ 860,271 |
Nontaxable | 13,243 | 10,925 | 26,345 | 21,137 |
Investment securities: | ||||
Taxable | 82,755 | 64,072 | 157,782 | 124,873 |
Nontaxable | 10,732 | 11,043 | 21,238 | 22,206 |
Money market and other interest-earning investments | 11,311 | 8,966 | 21,296 | 12,064 |
Total interest income | 663,663 | 544,902 | 1,259,644 | 1,040,551 |
Interest Expense | ||||
Deposits | 215,806 | 100,974 | 401,245 | 163,567 |
Federal funds purchased and interbank borrowings | 1,986 | 5,655 | 2,947 | 10,494 |
Securities sold under agreements to repurchase | 639 | 900 | 1,556 | 1,679 |
Federal Home Loan Bank advances | 44,643 | 45,088 | 85,810 | 83,084 |
Other borrowings | 12,168 | 10,114 | 23,207 | 18,068 |
Total interest expense | 275,242 | 162,731 | 514,765 | 276,892 |
Net interest income | 388,421 | 382,171 | 744,879 | 763,659 |
Provision for credit losses | 36,214 | 14,787 | 55,105 | 28,224 |
Net interest income after provision for credit losses | 352,207 | 367,384 | 689,774 | 735,435 |
Noninterest Income | ||||
Wealth and investment services fees | 29,358 | 26,521 | 57,662 | 53,441 |
Service charges on deposit accounts | 19,350 | 17,751 | 37,248 | 34,754 |
Debit card and ATM fees | 10,993 | 10,653 | 21,047 | 20,635 |
Mortgage banking revenue | 7,064 | 4,165 | 11,542 | 7,565 |
Capital markets income | 4,729 | 6,173 | 7,629 | 13,112 |
Company-owned life insurance | 5,739 | 4,698 | 9,173 | 7,884 |
Debt securities gains (losses), net | 2 | 17 | (14) | (5,199) |
Other income | 10,036 | 11,651 | 20,506 | 20,118 |
Total noninterest income | 87,271 | 81,629 | 164,793 | 152,310 |
Noninterest Expense | ||||
Salaries and employee benefits | 159,193 | 135,810 | 308,996 | 273,174 |
Occupancy | 26,547 | 26,085 | 53,566 | 54,367 |
Equipment | 8,704 | 7,721 | 17,375 | 15,110 |
Marketing | 11,284 | 9,833 | 21,918 | 19,250 |
Technology | 24,002 | 20,056 | 44,025 | 39,258 |
Communication | 4,480 | 4,232 | 8,480 | 8,693 |
Professional fees | 10,552 | 6,397 | 16,958 | 13,129 |
FDIC assessment | 9,676 | 9,624 | 20,989 | 20,028 |
Amortization of intangibles | 7,425 | 6,060 | 12,880 | 12,246 |
Amortization of tax credit investments | 2,747 | 2,762 | 5,496 | 5,523 |
Other expense | 18,389 | 18,004 | 34,633 | 36,517 |
Total noninterest expense | 282,999 | 246,584 | 545,316 | 497,295 |
Income before income taxes | 156,479 | 202,429 | 309,251 | 390,450 |
Income tax expense | 35,250 | 47,393 | 67,738 | 88,814 |
Net income | 121,229 | 155,036 | 241,513 | 301,636 |
Preferred dividends | (4,033) | (4,033) | (8,067) | (8,067) |
Net income applicable to common shareholders | $ 117,196 | $ 151,003 | $ 233,446 | $ 293,569 |
Net income per common share - basic (in dollars per share) | $ 0.37 | $ 0.52 | $ 0.77 | $ 1.01 |
Net income per common share - diluted (in dollars per share) | $ 0.37 | $ 0.52 | $ 0.77 | $ 1.01 |
Weighted average number of common shares outstanding - basic (in shares) | 315,585 | 290,559 | 303,283 | 290,822 |
Weighted average number of common shares outstanding - diluted (in shares) | 316,461 | 291,266 | 304,207 | 291,870 |
Dividends per common share (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.28 | $ 0.28 |
Consolidated Statements of Changes in Shareholders' Equity (unaudited) (Parenthetical) - $ / shares |
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Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
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Statement of Stockholders' Equity [Abstract] | ||||
Dividends per common share (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 |
Preferred dividends (in dollars per share) | $ 17.50 | $ 17.50 | $ 17.50 | $ 17.50 |
Basis of Presentation |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned subsidiaries (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of June 30, 2024 and December 31, 2023, and the results of its operations for the three and six months ended June 30, 2024 and 2023. Interim results do not necessarily represent annual results. Certain information and disclosures normally included in notes to consolidated annual financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q pursuant to SEC rules and regulations. These financial statements should be read in conjunction with Old National’s Annual Report on Form 10-K for the year ended December 31, 2023. All intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior period net income or shareholders’ equity and were insignificant amounts.
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Recent Accounting Pronouncements |
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Jun. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2024 FASB ASC 820 – In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The adoption of this guidance on January 1, 2024 did not have a material impact on the consolidated financial statements. FASB ASC 323 – In March 2023, the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of this guidance on a modified retrospective basis on January 1, 2024 did not have a material impact on the consolidated financial statements. FASB ASC 848 – In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from LIBOR or other interbank offered rate on financial reporting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period. The amendments in this ASU are effective March 12, 2020 through December 31, 2024. As of June 30, 2024, substantially all of the Company’s LIBOR exposure was addressed and remaining LIBOR-based contracts are expected to transition to alternate reference rates at their next index reset dates. Old National believes the adoption of this guidance on activities subsequent to June 30, 2024 will not have a material impact on the consolidated financial statements. Accounting Guidance Pending Adoption FASB ASC 280 – In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB ASC 740 – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Among other things, these amendments require that public business entities on an annual basis disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). In addition, the ASU requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts are equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments in this ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.
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Acquisition and Divestiture Activity |
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Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition and Divestiture Activity | ACQUISITION AND DIVESTITURE ACTIVITY Acquisition CapStar Financial Holdings, Inc. On April 1, 2024, Old National completed its acquisition of CapStar Financial Holdings, Inc. (“CapStar”) and its wholly-owned subsidiary, CapStar Bank, in an all-stock transaction. This partnership strengthens Old National’s Nashville, Tennessee presence and adds several new high-growth markets. Pursuant to the terms of the merger agreement, each outstanding share of CapStar common stock was converted into the right to receive 1.155 shares of Old National common stock plus cash in lieu of fractional shares. All system conversions related to the transaction were completed in early July of 2024. The assets acquired and liabilities assumed, both intangible and tangible, were recorded at their estimated fair values as of the merger date and have been accounted for under the acquisition method of accounting. The following table presents the preliminary valuation of the assets acquired and liabilities assumed and the fair value of consideration as of the merger date:
Goodwill related to this merger will not be deductible for tax purposes. Other intangible assets acquired included core deposit intangibles. The estimated fair value of the core deposit intangible was $46.1 million and is being amortized over an estimated useful life of 10 years. The fair value of PCD assets was $613.5 million on the date of merger. The gross contractual amounts receivable relating to the PCD assets was $679.3 million. Old National estimates, on the date of the merger, that $23.9 million of the contractual cash flows specific to the PCD assets will not be collected. Transaction costs primarily associated with the CapStar merger have been expensed for the three and six months ended June 30, 2024 totaling $19.4 million and $22.3 million, respectively, and additional transaction and integration costs will be expensed in future periods as incurred.
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Net Income Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Common Share | NET INCOME PER COMMON SHARE Basic and diluted net income per common share are calculated using the two-class method. Net income applicable to common shares is divided by the weighted-average number of common shares outstanding during the period. Adjustments to the weighted-average number of common shares outstanding are made only when such adjustments will dilute net income per common share. Net income applicable to common shares is then divided by the weighted-average number of common shares and common share equivalents during the period. The following table presents the calculation of basic and diluted net income per common share:
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolios and the corresponding amounts of gross unrealized gains, unrealized losses, and basis adjustments in AOCI and gross unrecognized gains and losses.
(1) Basis adjustments represent the amount of fair value hedging adjustments included in the carrying amounts of fixed-rate investment securities assets designated in fair value hedging arrangements. See Note 15 to the consolidated financial statements for additional information regarding these derivative financial instruments. Substantially all of the mortgage-backed securities in the investment portfolio are residential mortgage-backed securities. Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows:
The table below shows the amortized cost and fair value of the investment securities portfolio by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Weighted average yield is based on amortized cost.
The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position:
The following table summarizes the held-to-maturity investment securities with unrecognized losses aggregated by major security type and length of time in a continuous loss position:
The unrecognized losses on held-to-maturity investment securities presented in the table above do not include unrecognized losses on securities that were transferred from available-for-sale to held-to-maturity totaling $118.9 million at June 30, 2024 and $127.6 million at December 31, 2023. These unrecognized losses are included as a separate component of shareholders’ equity and are being amortized over the remaining term of the securities. No allowance for credit losses on was needed at June 30, 2024 or December 31, 2023. An allowance on held-to-maturity debt securities is maintained for certain municipal bonds to account for expected lifetime credit losses. Substantially all of the U.S. government-sponsored entities and agencies and agency mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. The allowance for credit losses on held-to-maturity debt securities was $0.2 million at June 30, 2024 and December 31, 2023. Accrued interest receivable on the securities portfolio is excluded from the estimate of credit losses and totaled $53.0 million at June 30, 2024 and $50.3 million at December 31, 2023. At June 30, 2024, Old National’s securities portfolio consisted of 3,039 securities, 2,792 of which were in an unrealized loss position. The unrealized losses attributable to our U.S. Treasury, U.S. government-sponsored entities and agencies, agency mortgage-backed securities, states and political subdivisions, and other securities are the result of fluctuations in interest rates and market movements. Old National’s pooled trust preferred securities are evaluated using collateral-specific assumptions to estimate the expected future interest and principal cash flows. At June 30, 2024, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery. Old National’s pooled trust preferred securities have experienced credit defaults. However, we believe that the value of the instruments lies in the full and timely interest payments that will be received through maturity, the steady amortization that will be experienced until maturity, and the full return of principal by the final maturity of the collateralized debt obligations. Old National did not recognize any losses on these securities for the six months ended June 30, 2024 or 2023. Equity Securities Equity securities consist of mutual funds for Community Reinvestment Act qualified investments and diversified investment securities held in a grantor trust for participants in the Company’s nonqualified deferred compensation plan. Old National’s equity securities with readily determinable fair values totaled $85.5 million at June 30, 2024 and $80.4 million at December 31, 2023. There were losses on equity securities of $0.4 million during the three months ended June 30, 2024 and $0.1 million during the six months ended June 30, 2024, compared to gains of $0.1 million during the three months ended June 30, 2023 and losses of $0.7 million during the six months ended June 30, 2023. Alternative Investments Old National has alternative investments without readily determinable fair values that are included in other assets totaling $514.8 million at June 30, 2024, consisting of $274.9 million of illiquid investments in partnerships, limited liability companies, and other ownership interests that support affordable housing and $239.9 million of economic development and community revitalization initiatives in low-to-moderate income neighborhoods. These alternative investments totaled $449.3 million at December 31, 2023. There have been no impairments or adjustments on equity securities without readily determinable fair values, except for amortization of tax credit investments in the six months ended June 30, 2024 and 2023. See Note 9 to the consolidated financial statements for detail regarding these investments.
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Loans and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Old National’s loans consist primarily of loans made to consumers and commercial clients in many diverse industries, including real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture, among others. Most of Old National’s lending activity occurs within our principal geographic markets in the Midwest and Southeast regions of the United States. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size. Old National has loan participations, which qualify as participating interests, with other financial institutions. At June 30, 2024, these loans totaled $3.5 billion, of which $1.6 billion had been sold to other financial institutions and $1.9 billion was retained by Old National. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involve no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree. The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses on loans. The allowance for credit losses was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The four loan portfolios used to monitor and analyze interest income and yields – commercial, commercial real estate, residential real estate, and consumer – are reclassified into seven segments of loans – commercial, commercial real estate, BBCC, residential real estate, indirect, direct, and home equity for purposes of determining the allowance for credit losses on loans. The commercial and commercial real estate loan categories shown on the balance sheet include the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet is comprised of the same loans in the indirect, direct, and home equity portfolio segments. The portfolio segment reclassifications follow:
(1)Includes direct finance leases of $157.2 million at June 30, 2024 and $169.7 million at December 31, 2023. (2) Includes unearned income of $199.7 million at June 30, 2024 and $93.7 million at December 31, 2023. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are classified primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its clients. Commercial Real Estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing Old National’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography, and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner-occupied loans. Included with commercial real estate are construction loans, which are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, financial analysis of the developers and property owners, and feasibility studies, if available. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders (including Old National), sales of developed property, or an interim loan commitment from Old National until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing. At 256%, Old National Bank’s applicable investor commercial real estate loans as a percentage of its Tier 1 capital plus the allowance for credit losses attributable to loans and leases remained below the regulatory guideline limit of 300% at June 30, 2024. BBCC BBCC loans are typically granted to small businesses with gross revenues of less than $5 million and aggregate debt of less than $1 million. Old National has established minimum debt service coverage ratios, minimum FICO scores for owners and guarantors, and the ability to show relatively stable earnings as criteria to help mitigate risk. Repayment of these loans depends on the personal income of the borrowers and the cash flows of the business. These factors can be affected by such changes as economic conditions and unemployment levels. Residential With respect to residential loans that are secured by 1 - 4 family residences and are generally owner occupied, Old National typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Portfolio risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Indirect Indirect loans are secured by automobile collateral, generally new and used cars and trucks from auto dealers that operate within our footprint. Old National typically mitigates the risk of indirect loans by establishing minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers and ongoing reviews of dealer relationships. Direct Direct loans are typically secured by collateral such as auto or real estate or are unsecured. Old National has established underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers. Home Equity Home equity loans are generally secured by 1-4 family residences that are owner-occupied. Old National has established underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers, along with monitoring of updated borrower credit scores. Allowance for Credit Losses Loans Credit loss assumptions used when computing the level of expected credit losses are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. The base forecast scenario considers unemployment, gross domestic product, and the BBB ratio (BBB spread to the 10-year U.S. Treasury rate). In addition to the quantitative inputs, several qualitative factors are considered. These factors include the risk that unemployment, gross domestic product, housing product index, and the BBB ratio prove to be more severe and/or prolonged than our baseline forecast due to a variety of factors including monetary actions to control inflation, recent instability in the banking sector, global military conflicts, and global supply chain issues. Old National’s activity in the allowance for credit losses on loans by portfolio segment was as follows:
The allowance for credit losses on loans at June 30, 2024 included $23.9 million of allowance for credit losses on acquired PCD loans established through acquisition accounting adjustments on or after the CapStar acquisition date. In addition, the provision for credit losses on loans in the three and six months ended June 30, 2024 included $15.3 million to establish an allowance for credit losses on non-PCD loans acquired in the CapStar transaction. Accrued interest receivable on loans is excluded from the estimate of credit losses and totaled $181.9 million at June 30, 2024, compared to $169.8 million at December 31, 2023. Unfunded Loan Commitments Old National maintains an allowance for credit losses on unfunded loan commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses on loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet within accrued expenses and other liabilities, while the corresponding provision for unfunded loan commitments is included in the provision for credit losses. Old National’s activity in the allowance for credit losses on unfunded loan commitments was as follows:
Credit Quality Old National’s management monitors the credit quality of its loans on an ongoing basis with the AQR for commercial loans reviewed annually or at renewal and the performance of its residential and consumer loans based upon the accrual status refreshed at least quarterly. Internally, management assigns an AQR to each non-homogeneous commercial, commercial real estate, and BBCC loan in the portfolio. The primary determinants of the AQR are the reliability of the primary source of repayment and the past, present, and projected financial condition of the borrower. The AQR will also consider current industry conditions. Major factors used in determining the AQR can vary based on the nature of the loan, but commonly include factors such as debt service coverage, internal cash flow, liquidity, leverage, operating performance, debt burden, FICO scores, occupancy, interest rate sensitivity, and expense burden. Old National uses the following definitions for risk ratings: Special Mention. Loans categorized as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Classified – Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Classified – Nonaccrual. Loans classified as nonaccrual have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection in full, on the basis of currently existing facts, conditions, and values, in doubt. Classified – Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as nonaccrual, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Pass rated loans are those loans that are other than special mention, classified – substandard, classified – nonaccrual, or classified – doubtful. The following table summarizes the amortized cost of term loans by risk category of commercial, commercial real estate, and BBCC loans by loan portfolio segment, class of loan, and origination year:
For residential real estate and consumer loan classes, Old National evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost of term residential real estate and consumer loans based on payment activity and origination year:
The following table summarizes the gross charge-offs of loans by loan portfolio segment and origination year:
Nonaccrual and Past Due Loans Old National does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured. The following table presents the aging of the amortized cost basis in past due loans by class of loans:
The following table presents the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan:
Interest income recognized on nonaccrual loans was insignificant during the three and six months ended June 30, 2024 and 2023. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty, and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant quarter-over-quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of collateral dependent loans by class of loan:
Financial Difficulty Modifications Occasionally, Old National modifies loans to borrowers experiencing financial difficulty in the form of principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction (or a combination thereof). When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses on loans. The following table presents the amortized cost basis of financial difficulty modifications that were modified for borrowers experiencing financial difficulty, by class of loans and type of modification:
Old National closely monitors the performance of financial difficulty modifications to understand the effectiveness of its efforts. The following table presents the performance of financial difficulty modifications in the twelve months following modification:
The following table summarizes the nature of the financial difficulty modifications by class of loans:
During the three and six months ended June 30, 2024, there were payment defaults on $27.0 million of loans to borrowers whose loans were modified due to financial difficulties within the previous twelve months. The payment defaults did not materially impact the allowance for credit losses on loans. There were no payment defaults during the three and six months ended June 30, 2023 on loans that had been modified within the previous twelve months. Old National had not committed to lend any material additional funds to the borrowers whose loans were modified due to financial difficulties at June 30, 2024 or December 31, 2023. Purchased Credit Deteriorated Loans Old National has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows:
(1)Old National acquired CapStar effective April 1, 2024.
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Leases |
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Leases | LEASES Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 5 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements. The components of lease expense were as follows:
Supplemental balance sheet information related to leases was as follows:
Supplemental cash flow information related to leases was as follows:
The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2024:
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Leases | LEASES Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 5 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements. The components of lease expense were as follows:
Supplemental balance sheet information related to leases was as follows:
Supplemental cash flow information related to leases was as follows:
The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2024:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the changes in the carrying amount of goodwill:
During the three months ended June 30, 2024, Old National recorded $172.0 million of goodwill associated with the acquisition of CapStar. See Note 2 to the consolidated financial statements for additional detail regarding this transaction. Old National performed the required annual goodwill impairment test as of August 31, 2023 and there was no impairment. No events or circumstances since the August 31, 2023 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists. The gross carrying amounts and accumulated amortization of other intangible assets were as follows:
Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years. During the three months ended June 30, 2024, Old National recorded $46.1 million of core deposit intangibles associated with the acquisition of CapStar. See Note 2 to the consolidated financial statements for additional detail regarding this transaction. Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the six months ended June 30, 2024 or 2023. Total amortization expense associated with intangible assets was $7.4 million and $12.9 million for the three and six months ended June 30, 2024, respectively, compared to $6.1 million and $12.2 million for the three and six months ended June 30, 2023, respectively. Estimated amortization expense for future years is as follows:
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Qualified Affordable Housing Projects and Other Tax Credit Investments |
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Securities Sold under Agreements to Repurchase [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Qualified Affordable Housing Projects and Other Tax Credit Investments | QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. As of June 30, 2024, Old National expects to recover its remaining investments through the use of the tax credits that are generated by the investments. The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments:
(1)All commitments will be paid by Old National by December 31, 2036. (2)Old National’s FHTC investments were previously accounted for under the Equity method of accounting prior to the adoption of ASU 2023-02 on January 1, 2024. The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments:
(1)The amortization expense for the LIHTC and FHTC investments is included in our income tax expense. Prior to the adoption of ASU 2023-02 on January 1, 2024, FHTC amortization expense was included in noninterest expense. NMTC amortization is recognized in noninterest expense in correlation to the recognition of tax credits on our tax return. Amortization expense for the Renewable Energy tax credits is included in noninterest expense. (2)All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the NMTC and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).
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Securities Sold Under Agreements to Repurchase |
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Securities Sold under Agreements to Repurchase [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Sold Under Agreements to Repurchase | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase are secured borrowings. Old National pledges investment securities to secure these borrowings. The following table presents securities sold under agreements to repurchase and related weighted-average interest rates:
At December 31, 2023, securities sold under agreements to repurchase totaled $285.2 million with a weighted-average interest rate of 3.64%. The following table presents the contractual maturity of our secured borrowings and class of collateral pledged:
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Federal Home Loan Bank Advances |
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Federal Home Loan Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | FEDERAL HOME LOAN BANK ADVANCES The following table summarizes Old National Bank’s FHLB advances:
FHLB advances had weighted-average rates of 3.84% at June 30, 2024 and 3.45% at December 31, 2023. FHLB advances are collateralized by designated assets that may include qualifying commercial real estate loans, residential and multifamily mortgages, home equity loans, and certain investment securities. At June 30, 2024, total unamortized prepayment fees related to all FHLB advance debt modifications completed in prior years totaled $11.2 million, compared to $14.2 million at December 31, 2023. Contractual maturities of FHLB advances at June 30, 2024 were as follows:
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Other Borrowings |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Borrowings | OTHER BORROWINGS The following table summarizes Old National’s other borrowings:
(1)Includes overnight borrowings to collateralize certain derivative positions totaling $128.1 million at June 30, 2024 and $97.6 million at December 31, 2023. Contractual maturities of other borrowings at June 30, 2024 were as follows:
Junior Subordinated Debentures Junior subordinated debentures related to trust preferred securities are classified in “other borrowings.” Junior subordinated debentures qualify as Tier 2 capital for regulatory purposes, subject to certain limitations. Through various mergers and acquisitions, Old National assumed junior subordinated debenture obligations related to various trusts that issued trust preferred securities. Old National guarantees the payment of distributions on the trust preferred securities issued by the trusts. Proceeds from the issuance of each of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by the trusts. Old National, at any time, may redeem the junior subordinated debentures at par and, thereby cause a redemption of the trust preferred securities in whole or in part. The following table summarizes the terms of our outstanding junior subordinated debentures at June 30, 2024:
Leveraged Loans The leveraged loans are directly related to the NMTC structure. As part of the transaction structure, Old National has the right to sell its interest in the entity that received the leveraged loans at an agreed upon price to the leveraged lender at the end of the NMTC seven-year compliance period. See Note 9 to the consolidated financial statements for additional information on the Company’s NMTC investments. Finance Lease Liabilities Old National has long-term finance lease liabilities for certain banking centers and equipment totaling $34.1 million at June 30, 2024. See Note 7 to the consolidated financial statements for a maturity analysis of the Company’s finance lease liabilities.
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Accumulated Other Comprehensive Income (Loss) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes within each classification of AOCI, net of tax:
(1)See table below for details about reclassifications to income. The following table summarizes the amounts reclassified out of each component of AOCI for the three months ended June 30, 2024 and 2023:
The following table summarizes the amounts reclassified out of each component of AOCI for the six months ended June 30, 2024 and 2023:
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Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES The following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income:
Net Deferred Tax Assets Net deferred tax assets are included in other assets on the balance sheet. At June 30, 2024, net deferred tax assets totaled $456.4 million, compared to $423.3 million at December 31, 2023. No valuation allowance was required on the Company’s deferred tax assets at June 30, 2024 or December 31, 2023. The Company’s retained earnings at June 30, 2024 included an appropriation for acquired thrifts’ tax bad debt allowances totaling $58.6 million for which no provision for federal or state income taxes has been made. If in the future, this portion of retained earnings were distributed as a result of the liquidation of the Company or its subsidiaries, federal and state income taxes would be imposed at the then applicable rates. Old National has federal net operating loss carryforwards totaling $75.3 million at June 30, 2024 and $63.6 million at December 31, 2023. This federal net operating loss was acquired from the acquisition of Anchor BanCorp Wisconsin Inc. in 2016, First Midwest Bancorp, Inc. in 2022, and CapStar Financial Holdings, Inc. in 2024. If not used, the federal net operating loss carryforwards will begin expiring in 2032 and later. Old National has recorded state net operating loss carryforwards totaling $111.2 million at June 30, 2024 and $116.9 million at December 31, 2023. If not used, the state net operating loss carryforwards will expire from 2027 to 2036. The federal and recorded state net operating loss carryforwards are subject to an annual limitation under Internal Revenue Code section 382. Old National believes that all of the federal and recorded state net operating loss carryforwards will be used prior to expiration.
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Derivative Financial Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS As part of our overall interest rate risk management, Old National uses derivative instruments, including interest rate swaps, collars, caps, and floors. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. Old National’s exposure is limited to the termination value of the contracts rather than the notional, principal, or contract amounts. There are provisions in our agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, we minimize credit risk through credit approvals, limits, and monitoring procedures. Derivatives Designated as Hedges Subsequent changes in fair value for a hedging instrument that has been designated and qualifies as part of a hedging relationship are accounted for in the following manner: Cash flow hedges: changes in fair value are recognized as a component in other comprehensive income (loss). Fair value hedges: changes in fair value are recognized concurrently in earnings. As long as a hedging instrument is designated and the results of the effectiveness testing support that the instrument qualifies for hedge accounting treatment, 100% of the periodic changes in fair value of the hedging instrument are accounted for as outlined above. This is the case whether or not economic mismatches exist in the hedging relationship. As a result, there is no periodic measurement or recognition of ineffectiveness. Rather, the full impact of hedge gains and losses is recognized in the period in which the hedged transactions impact earnings. The change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness is presented in the same income statement line item that is used to present the earnings effect of the hedged item. Cash Flow Hedges Interest rate swaps of certain borrowings were designated as cash flow hedges totaling $150.0 million notional amount at both June 30, 2024 and December 31, 2023. Interest rate swaps, collars, and floors related to variable-rate commercial loan pools were designated as cash flow hedges totaling $1.8 billion notional amount at June 30, 2024 and $1.6 billion notional amount at December 31, 2023. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms. Old National has designated its interest rate collars as cash flow hedges. The structure of these instruments is such that Old National pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, Old National receives an incremental amount if the index falls below the floor rate. No payments are required if the collar index falls between the cap and floor rates. Old National has designated its interest rate floor transactions as cash flow hedges. The structure of these instruments is such that Old National receives an incremental amount if the index falls below the floor strike rate. No payments are required if the index remains above the floor strike rate. Fair Value Hedges Interest rate swaps of certain borrowings were designated as fair value hedges totaling $1.1 billion notional amount at June 30, 2024 and $900.0 million notional amount at December 31, 2023. Interest rate swaps of certain available-for-sale investment securities were designated as fair value hedges totaling $998.1 million notional amount at both June 30, 2024 and December 31, 2023. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms. The following table summarizes Old National’s derivatives designated as hedges:
(1)Derivative assets are included in other assets on the balance sheet. (2)Derivative liabilities are included in other liabilities on the balance sheet. (3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules. The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows:
The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows:
Amounts reported in AOCI related to cash flow hedges will be reclassified to interest income or interest expense as interest payments are received or paid on Old National’s derivative instruments. During the next 12 months, we estimate that $6.6 million will be reclassified to interest income and $26.5 million will be reclassified to interest expense. Derivatives Not Designated as Hedges Commitments to fund certain mortgage loans (interest rate lock commitments) and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. These derivative contracts do not qualify for hedge accounting. At June 30, 2024, the notional amounts of the interest rate lock commitments were $99.1 million and forward commitments were $125.4 million. At December 31, 2023, the notional amounts of the interest rate lock commitments were $25.2 million and forward commitments were $39.5 million. It is our practice to enter into forward commitments for the future delivery of residential mortgage loans to third party investors when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from our commitment to fund the loans. Old National also enters into derivative instruments for the benefit of its clients. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $6.0 billion at both June 30, 2024 and December 31, 2023. These derivative contracts do not qualify for hedge accounting. These instruments include interest rate swaps, caps, and collars. Commonly, Old National will economically hedge significant exposures related to these derivative contracts entered into for the benefit of clients by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. Old National enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative instruments consist of foreign currency forward contracts to accommodate the business needs of its clients. Old National does not designate these foreign currency forward contracts for hedge accounting treatment. The following table summarizes Old National’s derivatives not designated as hedges:
(1)Derivative assets are included in other assets on the balance sheet. (2)Derivative liabilities are included in other liabilities on the balance sheet. (3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules. The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:
(1)Includes the valuation differences between the customer and offsetting swaps. Fair Value of Offsetting Derivatives Certain derivative instruments are subject to master netting agreements with counterparties that provide rights of setoff. The Company records these transactions at their gross fair values and does not offset derivative assets and liabilities in the Consolidated Balance Sheet. The following table presents the fair value of the Company’s derivatives and offsetting positions:
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Commitments, Contingencies, and Financial Guarantees |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments, Contingencies, and Financial Guarantees | COMMITMENTS, CONTINGENCIES, AND FINANCIAL GUARANTEES Litigation At June 30, 2024, there were certain legal proceedings pending against the Company and its subsidiaries in the ordinary course of business. While the outcome of any legal proceeding is inherently uncertain, based on information currently available, the Company’s management does not expect that any potential liabilities arising from pending litigation will have a material adverse effect on the Company’s business, financial position, or results of operations. Credit-Related Financial Instruments Old National holds instruments, in the normal course of business with clients, that are considered financial guarantees and are recorded at fair value. Standby letters of credit guarantees are issued in connection with agreements made by clients to counterparties. Standby letters of credit are contingent upon failure of the client to perform the terms of the underlying contract. Credit risk associated with standby letters of credit is essentially the same as that associated with extending loans to clients and is subject to normal credit policies. The term of these standby letters of credit is typically one year or less. These commitments are not recorded in the consolidated financial statements. The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit:
(1)Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $1.5 million at June 30, 2024 and $1.3 million at December 31, 2023. At June 30, 2024, approximately 3% of the unfunded loan commitments had fixed rates, with the remainder having floating rates ranging from 0.00% to 22.49%. The allowance for unfunded loan commitments totaled $25.7 million at June 30, 2024 and $31.2 million at December 31, 2023. Old National is a party in risk participation transactions of interest rate swaps, which had total notional amounts of $634.9 million at June 30, 2024 and $557.8 million at December 31, 2023.
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Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: •Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. •Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. •Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Old National used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment securities and equity securities: The fair values for investment securities and equity securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using swap and SOFR curves plus spreads that adjust for loss severities, volatility, credit risk, and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations. Loans held-for-sale: The fair value of loans held-for-sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2). Derivative financial instruments: The fair values of derivative financial instruments are based on market quotes developed using observable inputs as of the valuation date (Level 2). Recurring Basis Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below:
Non-Recurring Basis Assets measured at fair value at June 30, 2024 on a non-recurring basis are summarized below:
Commercial and commercial real estate loans that are deemed collateral dependent are valued using the discounted cash flows. The liquidation amounts are based on the fair value of the underlying collateral using the most recently available appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral. These commercial and commercial real estate loans had a principal amount of $163.2 million, with a valuation allowance of $31.4 million at June 30, 2024. Old National recorded provision expense associated with these loans totaling $7.4 million and $17.0 million for the three and six months ended June 30, 2024, respectively, compared to $7.9 million and $19.8 million for the three and six months ended June 30, 2023, respectively. Other real estate owned and other repossessed property is measured at fair value less costs to sell on a non-recurring basis. Old National did not have any other real estate owned or other repossessed property measured at fair value on a non-recurring basis at June 30, 2024. There were $0.4 million write-downs on other real estate owned for the three and six months ended June 30, 2024, compared to $0.1 million of write-downs for the three and six months ended June 30, 2023. Assets measured at fair value at December 31, 2023 on a non-recurring basis are summarized below:
At December 31, 2023, commercial and commercial real estate loans that are deemed collateral dependent had a principal amount of $134.3 million, with a valuation allowance of $27.9 million. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:
(1)Unobservable inputs were weighted by the relative fair value of the instruments. (2)There was only one foreclosed commercial real estate property and one foreclosed residential real estate property at June 30, 2024 with write-downs during the six months ended June 30, 2024, so no range or weighted average is reported. Fair Value Option Old National may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made. Loans Held-For-Sale Old National has elected the fair value option for loans held-for-sale. For these loans, interest income is recorded in the consolidated statements of income based on the contractual amount of interest income earned on the financial assets (except any that are on nonaccrual status). None of these loans are 90 days or more past due, nor are any on nonaccrual status. Interest income for loans held-for-sale is included in the income statement totaling $0.5 million for three months ended June 30, 2024 and $0.8 million for the six months ended June 30, 2024, compared to $0.3 million and $0.5 million for the three and six months ended June 30, 2023, respectively. Newly originated conforming fixed-rate and adjustable-rate first mortgage loans are intended for sale and are hedged with derivative instruments. Old National has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The fair value option was not elected for loans held for investment. The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows:
Accrued interest at period end is included in the fair value of the instruments. The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value:
Financial Instruments Not Carried at Fair Value The carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows:
The methods utilized to measure the fair value of financial instruments at June 30, 2024 and December 31, 2023 represent an approximation of exit price, however, an actual exit price may differ.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
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Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Pay vs Performance Disclosure | ||||||
Net income | $ 121,229 | $ 120,284 | $ 155,036 | $ 146,600 | $ 241,513 | $ 301,636 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned subsidiaries (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of June 30, 2024 and December 31, 2023, and the results of its operations for the three and six months ended June 30, 2024 and 2023. Interim results do not necessarily represent annual results. Certain information and disclosures normally included in notes to consolidated annual financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q pursuant to SEC rules and regulations. These financial statements should be read in conjunction with Old National’s Annual Report on Form 10-K for the year ended December 31, 2023. All intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior period net income or shareholders’ equity and were insignificant amounts.
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Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2024 FASB ASC 820 – In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The adoption of this guidance on January 1, 2024 did not have a material impact on the consolidated financial statements. FASB ASC 323 – In March 2023, the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of this guidance on a modified retrospective basis on January 1, 2024 did not have a material impact on the consolidated financial statements. FASB ASC 848 – In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from LIBOR or other interbank offered rate on financial reporting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period. The amendments in this ASU are effective March 12, 2020 through December 31, 2024. As of June 30, 2024, substantially all of the Company’s LIBOR exposure was addressed and remaining LIBOR-based contracts are expected to transition to alternate reference rates at their next index reset dates. Old National believes the adoption of this guidance on activities subsequent to June 30, 2024 will not have a material impact on the consolidated financial statements. Accounting Guidance Pending Adoption FASB ASC 280 – In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB ASC 740 – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Among other things, these amendments require that public business entities on an annual basis disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). In addition, the ASU requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts are equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments in this ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.
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Acquisition and Divestiture Activity (Tables) |
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Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Business Acquisition | The following table presents the preliminary valuation of the assets acquired and liabilities assumed and the fair value of consideration as of the merger date:
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Net Income Per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Table Reconciling Basic and Diluted Net Income Per Share | The following table presents the calculation of basic and diluted net income per common share:
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Investment Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities Portfolio | The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolios and the corresponding amounts of gross unrealized gains, unrealized losses, and basis adjustments in AOCI and gross unrecognized gains and losses.
(1) Basis adjustments represent the amount of fair value hedging adjustments included in the carrying amounts of fixed-rate investment securities assets designated in fair value hedging arrangements. See Note 15 to the consolidated financial statements for additional information regarding these derivative financial instruments.
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Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-Sale Investment Securities and Other Securities | Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows:
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Schedule of Expected Maturities of Investment Securities Portfolio | Weighted average yield is based on amortized cost.
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Schedule of Available-for-Sale and Held-to-Maturity Investment Securities with Unrealized Losses by Aggregated Major Security Type and Length of Time in Continuous Unrealized Loss Position | The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position:
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Schedule of Held-to-Maturity Investment Securities with Unrecognized Losses | The following table summarizes the held-to-maturity investment securities with unrecognized losses aggregated by major security type and length of time in a continuous loss position:
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Loans and Allowance for Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Composition of Loans and Impact of Adoption | The portfolio segment reclassifications follow:
(1)Includes direct finance leases of $157.2 million at June 30, 2024 and $169.7 million at December 31, 2023. (2) Includes unearned income of $199.7 million at June 30, 2024 and $93.7 million at December 31, 2023.
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Schedule of Activity in Allowance for Loan Losses | Old National’s activity in the allowance for credit losses on loans by portfolio segment was as follows:
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Schedule of Risk Category of Loans and Amortized Cost | The following table summarizes the amortized cost of term loans by risk category of commercial, commercial real estate, and BBCC loans by loan portfolio segment, class of loan, and origination year:
The following table summarizes the gross charge-offs of loans by loan portfolio segment and origination year:
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Schedule of Past Due Financing Receivables | The following table presents the aging of the amortized cost basis in past due loans by class of loans:
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Schedule of Nonaccrual and Past Due Loans | The following table presents the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan:
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Schedule of Activity in Trouble Debt Restructurings | The following table presents the amortized cost basis of financial difficulty modifications that were modified for borrowers experiencing financial difficulty, by class of loans and type of modification:
Old National closely monitors the performance of financial difficulty modifications to understand the effectiveness of its efforts. The following table presents the performance of financial difficulty modifications in the twelve months following modification:
The following table summarizes the nature of the financial difficulty modifications by class of loans:
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Schedule of Financing Receivable, Purchased With Credit Deterioration | Old National has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows:
(1)Old National acquired CapStar effective April 1, 2024.
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Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Expense | The components of lease expense were as follows:
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Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows:
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Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows:
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Schedule of Maturity Analysis of Lease Liability by Lease Classification | The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2024:
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | The following table presents the changes in the carrying amount of goodwill:
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Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets | The gross carrying amounts and accumulated amortization of other intangible assets were as follows:
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Schedule of Estimated Amortization Expense for Future Years | Estimated amortization expense for future years is as follows:
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Qualified Affordable Housing Projects and Other Tax Credit Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Sold under Agreements to Repurchase [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Qualified Affordable Housing Projects and Other Tax Credit Investments | The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments:
(1)All commitments will be paid by Old National by December 31, 2036. (2)Old National’s FHTC investments were previously accounted for under the Equity method of accounting prior to the adoption of ASU 2023-02 on January 1, 2024. The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments:
(1)The amortization expense for the LIHTC and FHTC investments is included in our income tax expense. Prior to the adoption of ASU 2023-02 on January 1, 2024, FHTC amortization expense was included in noninterest expense. NMTC amortization is recognized in noninterest expense in correlation to the recognition of tax credits on our tax return. Amortization expense for the Renewable Energy tax credits is included in noninterest expense. (2)All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the NMTC and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).
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Securities Sold Under Agreements to Repurchase (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Sold under Agreements to Repurchase [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Securities Sold Under Agreements to Repurchase and Weighted-Average Interest Rates | The following table presents securities sold under agreements to repurchase and related weighted-average interest rates:
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Schedule of Remaining Contractual Maturity of Secured Borrowings and Class of Collateral Pledged Under Repurchase Agreements | The following table presents the contractual maturity of our secured borrowings and class of collateral pledged:
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Federal Home Loan Bank Advances (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of FHLB Advances | The following table summarizes Old National Bank’s FHLB advances:
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Summary of Contractual Maturities of FHLB Advances | Contractual maturities of FHLB advances at June 30, 2024 were as follows:
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Other Borrowings (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Borrowings | The following table summarizes Old National’s other borrowings:
(1)Includes overnight borrowings to collateralize certain derivative positions totaling $128.1 million at June 30, 2024 and $97.6 million at December 31, 2023. The following table summarizes the terms of our outstanding junior subordinated debentures at June 30, 2024:
The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit:
(1)Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $1.5 million at June 30, 2024 and $1.3 million at December 31, 2023.
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Summary of Contractual Maturities of Other Borrowings | Contractual maturities of other borrowings at June 30, 2024 were as follows:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of AOCI | The following table summarizes the changes within each classification of AOCI, net of tax:
(1)See table below for details about reclassifications to income.
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Schedule of Reclassifications out of AOCI | The following table summarizes the amounts reclassified out of each component of AOCI for the three months ended June 30, 2024 and 2023:
The following table summarizes the amounts reclassified out of each component of AOCI for the six months ended June 30, 2024 and 2023:
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate | The following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income:
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Interest Rate Derivatives | The following table summarizes Old National’s derivatives designated as hedges:
(1)Derivative assets are included in other assets on the balance sheet. (2)Derivative liabilities are included in other liabilities on the balance sheet. (3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.
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Schedule of Derivative Instruments Effect on Consolidated Statement of Income | The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows:
The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows:
The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:
(1)Includes the valuation differences between the customer and offsetting swaps.
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Summary of Derivatives Not Designated as Hedging Instruments | The following table summarizes Old National’s derivatives not designated as hedges:
(1)Derivative assets are included in other assets on the balance sheet. (2)Derivative liabilities are included in other liabilities on the balance sheet. (3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.
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Schedule of Offsetting Assets | The following table presents the fair value of the Company’s derivatives and offsetting positions:
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Schedule of Offsetting Liabilities | The following table presents the fair value of the Company’s derivatives and offsetting positions:
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Commitments, Contingencies, and Financial Guarantees (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loan Commitments | The following table summarizes Old National’s other borrowings:
(1)Includes overnight borrowings to collateralize certain derivative positions totaling $128.1 million at June 30, 2024 and $97.6 million at December 31, 2023. The following table summarizes the terms of our outstanding junior subordinated debentures at June 30, 2024:
The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit:
(1)Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $1.5 million at June 30, 2024 and $1.3 million at December 31, 2023.
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Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below:
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Schedule of Assets Measured at Fair Value on a Non-Recurring Basis | Assets measured at fair value at June 30, 2024 on a non-recurring basis are summarized below:
Assets measured at fair value at December 31, 2023 on a non-recurring basis are summarized below:
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Schedule of Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements | The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:
(1)Unobservable inputs were weighted by the relative fair value of the instruments. (2)There was only one foreclosed commercial real estate property and one foreclosed residential real estate property at June 30, 2024 with write-downs during the six months ended June 30, 2024, so no range or weighted average is reported.
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Schedule of Difference Between the Aggregate Fair Value and the Aggregate Remaining Principal Balance | The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows:
The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value:
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Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Carried at Fair Value | The carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows:
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Acquisition and Divestiture Activity - Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Apr. 01, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
|
|
Business Acquisition [Line Items] | |||
Purchase price of loans at acquisition | $ 613,494 | ||
Par value of acquired loans at acquisition | 679,302 | ||
Allowance for credit losses at acquisition | $ 23,922 | ||
CapStar Financial Holdings, Inc. | |||
Business Acquisition [Line Items] | |||
Shares exchange ratio | 1.155 | ||
Other intangible assets | $ 46,125 | ||
Allowance for credit losses at acquisition | $ 23,900 | ||
Transaction costs, expensed | $ 19,400 | $ 22,300 | |
CapStar Financial Holdings, Inc. | Core deposit | |||
Business Acquisition [Line Items] | |||
Estimated useful lives | 10 years |
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Earnings Per Share [Abstract] | ||||||
Net income | $ 121,229 | $ 120,284 | $ 155,036 | $ 146,600 | $ 241,513 | $ 301,636 |
Preferred dividends | (4,033) | (4,033) | (8,067) | (8,067) | ||
Net income applicable to common shareholders | $ 117,196 | $ 151,003 | $ 233,446 | $ 293,569 | ||
Weighted average common shares outstanding: | ||||||
Weighted average common shares outstanding (basic) (in shares) | 315,585 | 290,559 | 303,283 | 290,822 | ||
Effect of dilutive securities: | ||||||
Restricted stock (in shares) | 876 | 707 | 924 | 1,047 | ||
Stock appreciation rights (in shares) | 0 | 0 | 0 | 1 | ||
Weighted average diluted shares outstanding (in shares) | 316,461 | 291,266 | 304,207 | 291,870 | ||
Basic Net Income Per Common Share (in dollars per share) | $ 0.37 | $ 0.52 | $ 0.77 | $ 1.01 | ||
Diluted Net Income Per Common Share (in dollars per share) | $ 0.37 | $ 0.52 | $ 0.77 | $ 1.01 |
Investment Securities - Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-sale Investment Securities and Other Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Proceeds from Sale, Maturity and Collection of Investments [Abstract] | ||||
Proceeds | $ 287,075 | $ 24,933 | $ 348,325 | $ 82,888 |
Realized gains | 4 | 39 | 8 | 948 |
Realized losses | $ (2) | $ (22) | $ (22) | $ (6,147) |
Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses on Unfunded Loan Commitments (Details) - Unfunded Loan Commitment - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Balance at beginning of period | $ 26,264 | $ 34,156 | $ 31,226 | $ 32,188 |
Provision for credit losses on unfunded loan commitments acquired during the period | 1,763 | 0 | 1,763 | 0 |
Provision (release) for credit losses on unfunded loan commitments | (2,294) | 2,851 | (7,256) | 4,819 |
Balance at end of period | $ 25,733 | $ 37,007 | $ 25,733 | $ 37,007 |
Loans and Allowance for Credit Losses - Schedule of Amortized Cost Basis of Loans with Modifications (Details) - Extended Maturity - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Term Extension | $ 62,091 | $ 13,680 | $ 88,273 | $ 37,797 |
Total Class of Loans | 0.20% | 0.00% | 0.20% | 0.10% |
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Term Extension | $ 3,859 | $ 1,231 | $ 14,867 | $ 18,517 |
Total Class of Loans | 0.00% | 0.00% | 0.10% | 0.20% |
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Term Extension | $ 58,232 | $ 12,449 | $ 73,406 | $ 19,280 |
Total Class of Loans | 0.40% | 0.10% | 0.50% | 0.10% |
Loans and Allowance for Credit Losses - Schedule of Nature of Loan Modifications to Borrowers Experiencing Financial Difficulty (Details) - Extended Maturity |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Weighted- Average Term Extension (in months) | 10 months 24 days | 6 months | 9 months 18 days | 6 months |
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Weighted- Average Term Extension (in months) | 9 months 18 days | 7 months 6 days | 9 months 18 days | 7 months 6 days |
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Weighted- Average Term Extension (in months) | 10 months 24 days | 6 months | 9 months 18 days | 6 months |
Loans and Allowance for Credit Losses - Purchased Credit Deteriorated Loans (Details) $ in Thousands |
Apr. 01, 2024
USD ($)
|
---|---|
Receivables [Abstract] | |
Purchase price of loans at acquisition | $ 613,494 |
Allowance for credit losses at acquisition | 23,922 |
Non-credit discount/(premium) at acquisition | 41,886 |
Par value of acquired loans at acquisition | $ 679,302 |
Leases - Additional Information (Details) |
Jun. 30, 2024 |
---|---|
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 5 years |
Finance lease term | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 20 years |
Finance lease term | 20 years |
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Finance lease cost: | ||||
Total | $ 9,886 | $ 8,288 | $ 18,519 | $ 17,726 |
Occupancy/Equipment expense | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 8,268 | 7,469 | 16,094 | 16,107 |
Occupancy expense | ||||
Finance lease cost: | ||||
Amortization of right-of-use assets | 1,488 | 737 | 2,239 | 1,428 |
Sub-lease income | (123) | (102) | (248) | (162) |
Interest expense | ||||
Finance lease cost: | ||||
Interest on lease liabilities | $ 253 | $ 184 | $ 434 | $ 353 |
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 16,439 | $ 15,752 |
Operating cash flows from finance leases | 434 | 353 |
Financing cash flows from finance leases | $ 2,020 | $ 1,265 |
Leases - Schedule of Maturity Analysis of Lease Liability by Lease Classification (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Operating Leases | ||
2024 | $ 16,861 | |
2025 | 34,330 | |
2026 | 33,583 | |
2027 | 31,857 | |
2028 | 27,940 | |
Thereafter | 98,385 | |
Total undiscounted lease payments | 242,956 | |
Amounts representing interest | (29,837) | |
Lease liability | 213,119 | $ 204,960 |
Finance Leases | ||
2024 | 4,649 | |
2025 | 8,787 | |
2026 | 6,048 | |
2027 | 4,388 | |
2028 | 2,996 | |
Thereafter | 12,611 | |
Total undiscounted lease payments | 39,479 | |
Amounts representing interest | (5,365) | |
Lease liability | $ 34,114 | $ 20,955 |
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Goodwill [Roll Forward] | ||||
Balance at beginning of period | $ 1,998,716 | $ 1,998,716 | $ 1,998,716 | $ 1,998,716 |
Acquisitions and adjustments | 171,993 | 0 | 171,993 | 0 |
Balance at end of period | $ 2,170,709 | $ 1,998,716 | $ 2,170,709 | $ 1,998,716 |
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Aug. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Apr. 01, 2024 |
|
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 0 | |||||
Impairment charges | $ 0 | $ 0 | ||||
Amortization of other intangible assets | $ 7,425,000 | $ 6,060,000 | $ 12,880,000 | $ 12,246,000 | ||
CapStar Financial Holdings, Inc. | ||||||
Goodwill [Line Items] | ||||||
Acquisitions and adjustments | 172,000,000 | |||||
Core deposit | CapStar Financial Holdings, Inc. | ||||||
Goodwill [Line Items] | ||||||
Estimated useful lives | 10 years | |||||
Estimated fair value of intangible assets acquired | $ 46,100,000 | |||||
Minimum | Core Deposits and Other Intangible Assets | ||||||
Goodwill [Line Items] | ||||||
Estimated useful lives | 5 years | 5 years | ||||
Maximum | Core Deposits and Other Intangible Assets | ||||||
Goodwill [Line Items] | ||||||
Estimated useful lives | 15 years | 15 years |
Goodwill and Other Intangible Assets - Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 242,257 | $ 196,132 |
Accumulated Amortization and Impairment | (106,762) | (93,882) |
Net Carrying Amount | 135,495 | 102,250 |
Core deposit | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 189,636 | 143,511 |
Accumulated Amortization and Impairment | (83,537) | (72,940) |
Net Carrying Amount | 106,099 | 70,571 |
Customer trust relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 52,621 | 52,621 |
Accumulated Amortization and Impairment | (23,225) | (20,942) |
Net Carrying Amount | $ 29,396 | $ 31,679 |
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future Years (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2024 remaining | $ 14,648 | |
2025 | 26,116 | |
2026 | 22,474 | |
2027 | 18,947 | |
2028 | 15,598 | |
Thereafter | 37,712 | |
Net Carrying Amount | $ 135,495 | $ 102,250 |
Securities Sold Under Agreements to Repurchase - Schedule of Securities Sold under Agreements to Repurchase and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Securities Sold under Agreements to Repurchase [Abstract] | |||
Outstanding at period end | $ 240,713 | $ 311,447 | $ 285,206 |
Average amount outstanding during the period | 273,088 | 376,298 | |
Maximum amount outstanding at any month-end during the period | $ 319,423 | $ 430,537 | |
Weighted-average interest rate during year | 1.15% | 0.90% | |
Weighted-average interest rate at end of year | 3.41% | 1.14% | 3.64% |
Securities Sold Under Agreements to Repurchase - Additional Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
---|---|---|---|
Securities Sold under Agreements to Repurchase [Abstract] | |||
Securities sold under agreements to repurchase | $ 240,713 | $ 285,206 | $ 311,447 |
Weighted-average interest rate at end of year | 3.41% | 3.64% | 1.14% |
Federal Home Loan Bank Advances - Summary of FHLB Advances (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances (fixed rates 2.19% to 5.55% and variable rates 5.33% to 5.48%) maturing September 2024 to March 2044 | $ 4,775,528 | $ 4,300,528 |
Fair value hedge basis adjustments and unamortized prepayment fees | (30,968) | (19,847) |
Federal Home Loan Bank advances | $ 4,744,560 | $ 4,280,681 |
Minimum | FHLB Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Fixed rates | 2.19% | |
Variable rates | 5.33% | |
Maximum | FHLB Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Fixed rates | 5.55% | |
Variable rates | 5.48% |
Federal Home Loan Bank Advances - Additional Information (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Federal Home Loan Banks [Abstract] | ||
Weighted-average rates of FHLB advances | 3.84% | 3.45% |
Modifications, unamortized prepayment fees | $ 11.2 | $ 14.2 |
Federal Home Loan Bank Advances - Summary of Contractual Maturities of FHLB Advances (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Federal Home Loan Banks [Abstract] | ||
Due in 2024 | $ 450,243 | |
Due in 2025 | 550,285 | |
Due in 2026 | 100,000 | |
Due in 2028 | 650,000 | |
Thereafter | 3,025,000 | |
Fair value hedge basis adjustments and unamortized prepayment fees | (30,968) | $ (19,847) |
Federal Home Loan Bank advances | $ 4,744,560 | $ 4,280,681 |
Other Borrowings - Contractual Maturities of Other Borrowings (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Due in 2024 | $ 307,099 | |
Due in 2025 | 19,784 | |
Due in 2026 | 155,280 | |
Due in 2027 | 3,795 | |
Due in 2028 | 2,518 | |
Thereafter | 345,568 | |
Unamortized debt issuance costs and other basis adjustments | 15,733 | |
Total | $ 849,777 | $ 764,870 |
Other Borrowings - Additional Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Other borrowings | $ 34,114 | $ 20,955 |
Old National Bank | ||
Debt Instrument [Line Items] | ||
Other borrowings | $ 34,114 | $ 20,955 |
Income Taxes - Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Income Tax Disclosure [Abstract] | ||||
Provision at statutory rate | $ 32,861 | $ 42,510 | $ 64,943 | $ 81,995 |
Tax-exempt income: | ||||
Tax-exempt interest | (5,027) | (4,605) | (9,985) | (9,091) |
Section 291/265 interest disallowance | 957 | 532 | 1,841 | 918 |
Company-owned life insurance income | (1,178) | (945) | (1,872) | (1,572) |
Tax-exempt income | (5,248) | (5,018) | (10,016) | (9,745) |
State income taxes | 6,333 | 8,552 | 11,480 | 16,693 |
Interim period effective rate adjustment | (70) | 993 | 873 | (723) |
Tax credit investments - federal | (3,106) | (2,526) | (6,160) | (5,051) |
Officer compensation limitation | 1,491 | 1,040 | 2,256 | 2,080 |
Non-deductible FDIC premiums | 2,032 | 2,037 | 3,779 | 4,147 |
Other, net | 957 | (195) | 583 | (582) |
Income tax expense | $ 35,250 | $ 47,393 | $ 67,738 | $ 88,814 |
Effective tax rate | 22.50% | 23.40% | 21.90% | 22.80% |
Income Taxes - Additional Information (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Income Taxes [Line Items] | ||
Net deferred tax assets | $ 456,400,000 | $ 423,300,000 |
Valuation allowance recorded | 0 | 0 |
Bad debt reserves, created for tax purposes | 58,600,000 | |
Federal | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | 75,300,000 | 63,600,000 |
State | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | $ 111,200,000 | $ 116,900,000 |
Derivative Financial Instruments - Schedule of Offsetting Assets and Liability (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Assets | ||
Derivative assets | $ 168,604 | $ 166,302 |
Less: amounts offset in the Consolidated Balance Sheet | 0 | 0 |
Net amount presented in the Consolidated Balance Sheet | 168,604 | 166,302 |
Offsetting derivative positions | (29,071) | (39,360) |
Cash collateral pledged | 0 | 0 |
Net credit exposure | 139,533 | 126,942 |
Derivative Liability [Abstract] | ||
Derivative liabilities | 294,846 | 268,916 |
Less: amounts offset in the Consolidated Balance Sheet | 0 | 0 |
Net amount presented in the Consolidated Balance Sheet | 294,846 | 268,916 |
Offsetting derivative positions | (29,071) | (39,360) |
Cash collateral pledged | (128,289) | (97,840) |
Net credit exposure | $ 137,486 | $ 131,716 |
Commitments, Contingencies, and Financial Guarantees - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Loss Contingencies [Line Items] | ||
Term of standby letters of credit, years | 1 year | |
Percent of unfunded loan commitments with fixed rates | 3.00% | |
Loan commitments floating rate, minimum | 0.00% | |
Loan commitments floating rate, maximum | 22.49% | |
Allowance for unfunded loan commitments | $ 25.7 | $ 31.2 |
Interest Rate Swap | ||
Loss Contingencies [Line Items] | ||
Notional amount | $ 634.9 | $ 557.8 |
Commitments, Contingencies, and Financial Guarantees - Loan Commitments and Standby Letters of Credit (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded loan commitments | $ 8,789,910 | $ 8,912,587 |
Standby letters of credit | 184,482 | 192,237 |
Carrying value of letters of credit | $ 1,500 | $ 1,300 |
Fair Value - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Provision for Loan Losses | $ 36,214 | $ 14,787 | $ 55,105 | $ 28,224 | |
Other real estate owned property write-downs | 400 | 100 | $ 400 | 100 | |
Past due period of mortgage loans held for sale, days | 90 days | ||||
Interest income for residential loans held for sale | 500 | 300 | $ 800 | 500 | |
Impaired Commercial and Commercial Real Estate Loans | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Principal amount of impaired commercial and commercial real estate loans | 163,200 | 163,200 | $ 134,300 | ||
Valuation allowance | 31,400 | 31,400 | $ 27,900 | ||
Provision for Loan Losses | $ 7,400 | $ 17,000 | |||
Provision for credit losses | $ 7,900 | $ 19,800 |
Fair Value - Schedule of Difference between the Aggregate Fair Value and the Aggregate Remaining Principal Balance (Details) - Loans held-for-sale - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | $ 66,126 | $ 32,006 |
Difference | 525 | 621 |
Contractual Principal | $ 65,601 | $ 31,385 |
Fair Value - Changes in Fair Value for Items Measured at Fair Value Pursuant to Election of the Fair Value (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Interest Income | $ 388,421 | $ 382,171 | $ 744,879 | $ 763,659 |
Loans held-for-sale | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other Gains and (Losses) | 105 | 229 | (97) | 176 |
Interest Income | 6 | 0 | 6 | 0 |
Interest (Expense) | 0 | (7) | (5) | (10) |
Total Changes in Fair Values Included in Current Period Earnings | $ 111 | $ 222 | $ (96) | $ 166 |
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