EX-99.1 2 d31501dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

   NASDAQ: ONB
   oldnational.com

 

FOR IMMEDIATE RELEASE

October 26, 2015

   

 

Contacts:

  

 

Media:

   Kathy A. Schoettlin – (812) 465-7269
   Executive Vice President – Communications
   Financial Community:
   Lynell J. Walton – (812) 464-1366
   Senior Vice President – Investor Relations

Old National Bancorp’s 3rd quarter highlighted by 5.6% annualized loan growth and reduction in noninterest expenses

3RD QUARTER HIGHLIGHTS:

 

  •   Earnings of $37.7 million, or $.33 per common share

 

  •   Adjusted net income1 of $29.4 million, or $.26 per share

 

  •   Loan growth of $98.0 million, or 5.6% annualized, over 2Q15, excludes loans sold and covered loans

 

  •   Stable Core Net Interest Margin

 

  •   Increase in tangible book value1 of 3.8%

 

  •   Decline in noninterest expenses

 

1  Adjusted net income and tangible book value are non-GAAP measures – refer to Tables 1&2 for non-GAAP reconciliations

 

 

Evansville, Ind. (October 26, 2015) – Today Old National Bancorp (the “Company” or “Old National”) (NASDAQ: ONB) reported 3rd quarter 2015 net income of $37.7 million, or $.33 per share. These reported quarterly results compare to net income of $26.2 million in the 2nd quarter of 2015 and $29.1 million recorded in the 3rd quarter of 2014.

Included in 3rd quarter 2015 results were $15.4 million in net pre-tax gains as well as $2.0 million in pre-tax charges relating to several strategic initiatives. These initiatives include branch sales and consolidations and integration activity. Excluding the impact of these items, Old National would have reported net income of $29.4 million, or $.26 per share. In addition, the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 became effective for Old National beginning July 1, 2015, resulting in a 3rd quarter decline in interchange income of $2.7 million.

Also today the Company announced its quarterly cash dividend of $.12 per share. The dividend is payable December 15, 2015, to shareholders of record on December 1, 2015. For purposes of broker trading, the ex-date of the cash dividend is November 27, 2015.

“This was a quarter that saw us continue to execute successfully on our organic growth strategy,” said President & CEO Bob Jones. “Our loan portfolio saw continued growth, along with excellent credit metrics. We believe this, along with the reduction in our expenses, positions us well for 2016 and beyond.”

Committed to our Strategic Imperatives and 2015 Initiatives

Old National’s continued steady performance and strong credit and capital positions can be attributed to the Company’s unwavering commitment to the three strategic imperatives that have guided Old National for 10 years:

1. Strengthen the risk profile; 2. Enhance management discipline; and 3. Achieve consistent quality earnings.

Guided by these three strategic imperatives, Old National’s primary initiatives for 2015 are: 1. Continue to grow organic revenue; 2. Improve operating leverage; and 3. Prudent use of capital, all while maintaining a strong credit culture.

 

Page 1 of 8

Grow Organic Revenue

Balance Sheet and Net Interest Margin

Impacting Old National’s balance sheet in the 3rd quarter were the completion of two sales, totaling 17 banking centers, $193.6 million in loans and $555.8 million in deposits. These sales were both completed on August 14, 2015.

At September 30, 2015, total period-end loans, including loans held for sale, decreased $117.1 million to $6.867 billion from $6.984 billion at June 30, 2015. This decline is attributable to the banking center sales discussed in the preceding paragraph. Excluding the impact of these banking center sales and the change in covered loans, Old National had organic loan growth of $98.0 million, or 5.6%, in the 3rd quarter. The Louisville, Kentucky market, including the Company’s new Lexington office, the Terre Haute & Lafayette, Indiana market and the Kalamazoo, Michigan market were the best producing regions, increasing $37.8 million, $14.7 million and $11.2 million, respectively, over June 30, 2015, loan balances.

Total core deposits at September 30, 2015, including demand and interest-bearing deposits, decreased $201.7 million to $8.561 billion, compared to the $8.763 billion at June 30, 2015. This decline is attributable to the banking center sales discussed above. Excluding the impact of these banking center sales, Old National’s deposits grew $354.1 million in the 3rd quarter.

Net interest income in the 3rd quarter of 2015 totaled $97.1 million compared to $92.1 million in the 2nd quarter of 2015, and $108.4 million in the 3rd quarter of 2014. Net interest income on a fully taxable equivalent basis was $102.1 million for the 3rd quarter of 2015 and represented a net interest margin on total average earning assets of 3.94%. These results compare to net interest income on a fully taxable equivalent basis of $96.9 million and a margin of 3.75% in the 2nd quarter of 2015. In the 3rd quarter of 2014, Old National reported net interest income on a fully taxable equivalent basis of $112.9 million and a margin of 4.78%. Refer to Tables A, B and C for Non-GAAP taxable equivalent reconciliations.

As part of net interest income, Old National recorded $20.6 million, or an 80 basis point contribution to net interest margin, in accretion income in the 3rd quarter of 2015 related to purchase accounting discounts from various acquisitions. Total accretion income in the 2nd quarter of 2015 and the 3rd quarter of 2014 reported by Old National was $15.6 million, or a 60 basis point net interest margin contribution, and $34.3 million, or a 146 basis point net interest margin contribution, respectively. Excluding accretion income, the core net interest margin was 3.14%, 3.15% and 3.32%, for the 3rd quarter of 2015, the 2nd quarter of 2015 and the 3rd quarter of 2014, respectively.

Fees, Service Charges and Other Revenue

Total fees, service charges and other revenue represent an important component of Old National’s revenue stream and amounted to $58.8 million for the 3rd quarter of 2015. This compares to $54.4 million in the 2nd quarter of 2015 and $31.7 million in the 3rd quarter of 2014. Included in the 3rd quarter of 2015 is a $15.4 million net gain relating to the branch sales. The current quarter also contained a $6.6 million unfavorable change in the indemnification asset relating to the 2011 FDIC-assisted acquisition of Integra Bank, compared to unfavorable changes of $1.5 million and $19.1 million recorded in the 2nd quarter of 2015 and the 3rd quarter of 2014, respectively. In addition, the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 became effective for Old National beginning July 1, 2015, resulting in a 3rd quarter decline in interchange income of $2.7 million.

Improve Operating Leverage

Old National recorded $102.6 million of total noninterest expenses in the 3rd quarter of 2015 compared to $109.7 million in the 2nd quarter of 2015 and $100.0 million recorded in the 3rd quarter of 2014. Included in 3rd quarter of 2015 are $2.0 million pre-tax charges relating to the Company’s strategic initiatives described on page 1 of this release. This compares to $5.5 million in similar charges recorded in the 2nd quarter of 2015. Also impacting year-over-year comparisons are the operational costs associated with the United, LSB and Founders acquisitions, which closed in July and November of 2014, and January of 2015, respectively, adding 27 branches to the Old National franchise. As of September 30, 2015, Old National has 164 branches throughout its franchise.

 

Page 2 of 8

Prudent Use of Capital

Old National’s capital position remained above regulatory guideline minimums at September 30, 2015, with regulatory tier 1 and total risk-based capital ratios of 12.5% and 13.2%, respectively, compared to 11.6% and 12.2% at June 30, 2015, and 13.0% and 13.8% at September 30, 2014. Old National repurchased .7 million shares of stock in the open market during the 3rd quarter of 2015 and has .3 million shares remaining under the current authorization.

The following table presents Old National’s risk-based and leverage ratios compared to industry requirements:

 

     Fully Phased-In
Regulatory
Guidelines Minimum		     Consolidated ONB at
September 30, 2015		  

Tier 1 Risk-Based Capital Ratio

      > 8.5 %      12.5 % 

Total Risk-Based Capital Ratio

      > 10.5 %      13.2 % 

Common Equity Tier 1 Capital Ratio

      > 7.0 %      12.1 % 

Tier 1 Leverage Capital Ratio

      > 4.0 %      8.4 % 

Old National’s ratio of tangible common equity to tangible assets was 7.56% at September 30, 2015, compared to 7.23% at June 30, 2015, and 8.23% at September 30, 2014. Refer to Table 2 for Non-GAAP reconciliations.

Maintain a Strong Credit Culture

Old National recorded provision expense of $.2 million and had net recoveries of $.9 million in the 3rd quarter of 2015. These results compare to $2.3 million in provision expense and net charge-offs of $1.0 million, and a provision expense of $2.6 million and net charge-offs of $.5 million, in the 2nd quarter of 2015 and the 3rd quarter of 2014, respectively. Net recoveries for the 3rd quarter of 2015 were .05% of average total loans on an annualized basis, compared to net charge-offs of .06% of average total loans in the 2nd quarter of 2015 and net charge-offs of .03% of average total loans in the 3rd quarter of 2014. On a year-to-date basis, Old National reported net recoveries of $.9 million and recorded provision expense of $2.4 million.

At September 30, 2015, Old National’s allowance for loan losses was $51.2 million, or .75% of total loans, compared to an allowance of $50.2 million, or .74% of total loans at June 30, 2015, and $48.3 million, or .77% of total loans, at September 30, 2014. The coverage ratio (allowance to non-performing loans) stood at 33% at September 30, 2015, compared to 28% at June 30, 2015, and 29% at September 30, 2014. Impacting these ratios are the Company’s recent acquisitions in which the loan portfolios were booked at fair value in accordance with ASC 805. Therefore, no allowance for loan losses is recorded on the acquisition date.

The following table presents certain credit quality metrics related to Old National’s loan portfolio:

 

($ in millions)

    3Q14     2Q15     3Q15  

Non-Performing Loans (NPLs)

    $ 164.6      $ 181.4      $ 154.8   

Problem Loans (Including NPLs)

      245.1        257.1        252.4   

Special Mention Loans

      175.8        173.9        141.2   

Net Charge-Off(Recoveries) Ratio

      .03 %      .06 %      (.05 )% 

Provision for Loan Losses

    $ 2.6      $ 2.3      $ .2   

Allowance for Loan Losses

      48.3        50.2        51.2   

 

Page 3 of 8

About Old National

Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest financial services holding company headquartered in Indiana and, with $11.9 billion in assets, ranks among the top 100 banking companies in the U.S. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients. Today, Old National’s footprint includes Indiana, Western Kentucky and Louisville, East Central Illinois and Central and Western Michigan. In addition to providing extensive services in retail and commercial banking, wealth management, investments and brokerage, Old National also owns Old National Insurance, one of the 100 largest brokers in the U.S. For more information and financial data, please visit Investor Relations at oldnational.com.

Conference Call

Old National will hold a conference call at 10:00 a.m. Central Time on Monday, October 26, 2015, to discuss third-quarter 2015 financial results, strategic developments, and the Company’s financial outlook. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. A replay of the call will also be available from 1:00 p.m. Central Time on October 26 through November 9. To access the replay, dial 1-855-859-2056, Conference ID Code 45967302.

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this release or the Quarterly Financial Trends supplement to this earnings release, which can be found on Investor Relations at oldnational.com.

Table 1: Non-GAAP Reconciliation-Adjusted Net Income

 

($ in millions, shares in 000s)

    Reported 3Q15      Adjustments      Adjusted 3Q15  

Total Revenues (FTE Basis)

    $ 161.8       $ (15.4 )     $ 146.4   

Less: Provision for Loan Losses

      (.2 )       —           (.2 ) 

Less: Noninterest Expenses

      (102.6 )       2.0         (100.6 ) 

Income before Income Taxes

    $ 59.0       $ (13.4 )     $ 45.6   

Income Taxes

      (21.4 )       5.1         (16.2 ) 

Net Income

    $ 37.7       $ (8.3 )     $ 29.4   

Average Shares Outstanding

      115,153         —           115,153   

Earnings Per Share

    $ .33       $ (.07 )     $ .26   

Table 2: Non-GAAP Reconciliation-Tangible Book Value and Tangible Equity to Tangible Assets

 

(end of period balances - $ in millions, shares in 000s)

    Sept. 30, 2014     June 30, 2015     Sept. 30, 2015  

Total Shareholders’ Equity

    $ 1,407.2      $ 1,456.7      $ 1,476.0   

Deduct: Goodwill and Intangible Assets

      (530.5 )      (629.5 )      (622.8 ) 

Tangible Shareholders’ Equity

    $ 876.7      $ 827.3      $ 853.2   

Total Assets

    $ 11,179.8      $ 12,075.8      $ 11,915.2   

Add: Trust Overdrafts

      .1        0.1        0.1   

Deduct: Goodwill and Intangible Assets

      (530.5 )      (629.5 )      (622.8 ) 

Tangible Assets

    $ 10,649.4      $ 11,446.4      $ 11,292.5   

Tangible Equity to Tangible Assets

      8.23 %      7.23 %      7.56 % 

Common Shares Outstanding

      113,984        115,205        114,523   

Tangible Book Value

    $ 7.69      $ 7.18      $ 7.45   

 

Page 4 of 8

Forward-Looking Statement

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, descriptions of Old National Bancorp’s (“Old National’s”) financial condition, results of operations, asset and credit quality trends and profitability. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: expected cost savings, synergies and other financial benefits from the recently completed mergers might not be realized within the expected timeframes and costs or difficulties relating to integration matters might be greater than expected; expected cost savings in connection with recent branch divestitures may not be fully realized, and deposit attrition, customer loss, and revenue loss may be greater than expected; market, economic, operational, liquidity, credit and interest rate risks associated with Old National’s business; competition; government legislation and policies (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations); ability of Old National to execute its business plan; changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; failure or disruption of our information systems; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions of litigations; disruptive technologies in payment systems and other services traditionally provided by banks; computer hacking and other cybersecurity threats; other matters discussed in this press release and other factors identified in our Annual Report on Form 10-K and other periodic filings with the SEC. These forward-looking statements are made only as of the date of this press release, and Old National does not undertake an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.

 

Page 5 of 8

OLD NATIONAL BANCORP

Financial Highlights (Table A)

 

     Three-Months Ended              

($ in thousands except per-share data)

(FTE) Fully taxable equivalent basis.

    Sept. 30,
2015		     June 30,
2015		     $ Change     % Change  

Income Data:

         

Net Interest Income

    $ 97,104      $ 92,097      $ 5,007        5.4   

Taxable Equivalent Adjustment

      4,965        4,757        208        4.4   

Net Interest Income (FTE)

      102,069        96,854        5,215        5.4   

Fees, Service Charges and Other Revenues

      58,812        54,425        4,387        8.1   

Securities Gains (Losses) (a)

      861        512        349        68.2   

Derivative Gains (Losses)

      71        42        29        69.0   

Total Revenue (FTE)

      161,813        151,833        9,980        6.6   

Provision for Loan Losses

      167        2,271        (2,104 )      (92.6 ) 

Noninterest Expense

      102,617        109,690        (7,073 )      (6.4 ) 

Income before Taxes

      59,029        39,872        19,157        48.0   

Provision for Taxes (FTE)

      21,360        13,716        7,644        55.7   

Net Income

      37,669        26,156        11,513        44.0   

Per Common Share Data: (Diluted) (b)

         

Net Income Attributable to Common Shareholders

      0.33        0.22        0.11        50.0   

Average Diluted Shares Outstanding

      115,153        116,223        (1,070 )      (0.9 ) 

Book Value

      12.89        12.64        0.25        2.0   

Stock Price

      13.93        14.46        (0.53 )      (3.7 ) 

Performance Ratios:

         

Return on Average Assets

      1.26 %      0.88 %      0.38 %      43.2   

Return on Average Common Equity (c)

      10.27        7.11        3.16        44.4   

Net Interest Margin (FTE)

      3.94        3.75        0.19        5.1   

Other Expense to Revenue (Efficiency Ratio) (d)

      61.97        70.52        (8.55 )      (12.1 ) 

Net Charge-offs to Average Loans (e)

      (0.05 )      0.06        (0.11 )      (183.3 ) 

Reserve for Loan Losses to Ending Loans (e)

      0.75        0.74        0.01        1.4   

Non-Performing Loans to Ending Loans (e)

      2.26        2.68        (0.42 )      (15.7 ) 

Balance Sheet:

         

Average Assets

    $ 11,927,809      $ 11,911,639      $ 16,170        0.1   

End of Period Balances:

         

Assets

      11,915,163        12,075,820        (160,657 )      (1.3 ) 

Investments

      3,460,917        3,471,440        (10,523 )      (0.3 ) 

Money Market Investments (f)

      15,491        16,228        (737 )      (4.5 ) 

Commercial Loans and Leases

      1,750,809        1,788,912        (38,103 )      (2.1 ) 

Commercial Real Estate Loans

      1,870,169        1,806,251        63,918        3.5   

Consumer Loans

      1,568,680        1,528,799        39,881        2.6   

Residential Real Estate Loans

      1,658,240        1,642,100        16,140        1.0   

Loans Held for Sale

      18,783        217,667        (198,884 )      (91.4 ) 

Earning Assets

      10,343,089        10,471,397        (128,308 )      (1.2 ) 

Core Deposits (Excluding Brokered CDs)

      8,561,114        8,762,770        (201,656 )      (2.3 ) 

Borrowed Funds (Including Brokered CDs)

      1,655,431        1,646,586        8,845        0.5   

Common Shareholders’ Equity

      1,476,002        1,456,723        19,279        1.3   

 

(a) Includes no other-than-temporary impairment in third-quarter 2015 or second-quarter 2015.
(b) Assumes conversion of stock options and restricted stock.
(c) Based on average common shareholders’ equity of $1,466,677 and $1,471,922, respectively, for September 30, 2015, and June 30, 2015.
(d) Noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions.
(e) Excludes loans held for sale.
(f) Includes money market investments and Federal Reserve interest earning accounts.

 

Page 6 of 8

OLD NATIONAL BANCORP

Financial Highlights (Table B)

 

     Three-Months Ended              

($ in thousands except per-share data)

(FTE) Fully taxable equivalent basis.

    Sept. 30,
2015		     Sept. 30,
2014		     $ Change     % Change  

Income Data:

         

Net Interest Income

    $ 97,104      $ 108,367      $ (11,263 )      (10.4 ) 

Taxable Equivalent Adjustment

      4,965        4,488        477        10.6   

Net Interest Income (FTE)

      102,069        112,855        (10,786 )      (9.6 ) 

Fees, Service Charges and Other Revenues

      58,812        31,664        27,148        85.7   

Securities Gains (Losses) (a)

      861        2,713        (1,852 )      (68.3 ) 

Derivative Gains (Losses)

      71        41        30        73.2   

Total Revenue (FTE)

      161,813        147,273        14,540        9.9   

Provision for Loan Losses

      167        2,591        (2,424 )      (93.6 ) 

Noninterest Expense

      102,617        99,965        2,652        2.7   

Income before Taxes

      59,029        44,717        14,312        32.0   

Provision for Taxes (FTE)

      21,360        15,583        5,777        37.1   

Net Income

      37,669        29,134        8,535        29.3   

Per Common Share Data: (Diluted) (b)

         

Net Income Attributable to Common Shareholders

      0.33        0.26        0.07        26.9   

Average Diluted Shares Outstanding

      115,153        111,947        3,206        2.9   

Book Value

      12.89        12.35        0.54        4.4   

Stock Price

      13.93        12.97        0.96        7.4   

Performance Ratios:

        

Return on Average Assets

      1.26 %      1.07 %      0.19 %      17.8   

Return on Average Common Equity (c)

      10.27        8.54        1.73        20.3   

Net Interest Margin (FTE)

      3.94        4.78        (0.84 )      (17.6 ) 

Other Expense to Revenue (Efficiency Ratio) (d)

      61.97        67.41        (5.44 )      (8.1 ) 

Net Charge-offs to Average Loans (e)

      (0.05 )      0.03        (0.08 )      (266.7 ) 

Reserve for Loan Losses to Ending Loans (e)

      0.75        0.77        (0.02 )      (2.6 ) 

Non-Performing Loans to Ending Loans (e)

      2.26        2.64        (0.38 )      (14.4 ) 

Balance Sheet:

         

Average Assets

    $ 11,927,809      $ 10,853,047      $ 1,074,762        9.9   

End of Period Balances:

         

Assets

      11,915,163        11,179,752        735,411        6.6   

Investments

      3,460,917        3,407,989        52,928        1.6   

Money Market Investments (f)

      15,491        25,599        (10,108 )      (39.5 ) 

Commercial Loans and Leases

      1,750,809        1,667,150        83,659        5.0   

Commercial Real Estate Loans

      1,870,169        1,659,565        210,604        12.7   

Consumer Loans

      1,568,680        1,345,720        222,960        16.6   

Residential Real Estate Loans

      1,658,240        1,570,000        88,240        5.6   

Loans Held for Sale

      18,783        12,875        5,908        45.9   

Earning Assets

      10,343,089        9,688,898        654,191        6.8   

Core Deposits (Excluding Brokered CDs)

      8,561,114        8,167,743        393,371        4.8   

Borrowed Funds (Including Brokered CDs)

      1,655,431        1,406,537        248,894        17.7   

Common Shareholders’ Equity

      1,476,002        1,407,180        68,822        4.9   

 

(a) Includes no other-than-temporary impairment in third-quarter 2015 and third-quarter 2014.
(b) Assumes conversion of stock options and restricted stock.
(c) Based on average common shareholders’ equity of $1,466,677 and $1,364,951 respectively, for 2015 and 2014.
(d) Noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions.
(e) Excludes loans held for sale.
(f) Includes money market investments and Federal Reserve interest earning accounts.

 

Page 7 of 8

OLD NATIONAL BANCORP

Financial Highlights (Table C)

 

     Nine-Months Ended              

($ in thousands except per-share data)

(FTE) Fully taxable equivalent basis.

    Sept. 30,
2015		     Sept. 30,
2014		     $ Change     % Change  

Income Data:

         

Net Interest Income

    $ 280,194      $ 276,327      $ 3,867        1.4   

Taxable Equivalent Adjustment

      14,380        12,675        1,705        13.5   

Net Interest Income (FTE)

      294,574        289,002        5,572        1.9   

Fees, Service Charges and Other Revenues

      165,790        109,482        56,308        51.4   

Securities Gains (Losses) (a)

      4,056        4,861        (805 )      (16.6 ) 

Derivative Gains (Losses)

      172        291        (119 )      (40.9 ) 

Total Revenue (FTE)

      464,592        403,636        60,956        15.1   

Provision for Loan Losses

      2,439        2,228        211        9.5   

Noninterest Expense

      328,463        286,321        42,142        14.7   

Income before Taxes

      133,690        115,087        18,603        16.2   

Provision for Taxes (FTE)

      48,959        40,670        8,289        20.4   

Net Income

      84,731        74,417        10,314        13.9   

Per Common Share Data: (Diluted) (b)

         

Net Income Attributable to Common Shareholders

      0.73        0.70        0.03        4.3   

Average Diluted Shares Outstanding

      116,800        105,559        11,241        10.6   

Book Value

      12.89        12.35        0.54        4.4   

Stock Price

      13.93        12.97        0.96        7.4   

Performance Ratios:

        

Return on Average Assets

      0.95 %      0.98 %      (0.03 )%      (3.1 ) 

Return on Average Common Equity (c)

      7.63        7.85        (0.22 )      (2.8 ) 

Net Interest Margin (FTE)

      3.80        4.37        (0.57 )      (13.0 ) 

Other Expense to Revenue (Efficiency Ratio) (d)

      69.38        70.21        (0.83 )      (1.2 ) 

Net Charge-offs to Average Loans (e)

      (0.02 )      0.03        (0.05 )      (166.7 ) 

Reserve for Loan Losses to Ending Loans (e)

      0.75        0.77        (0.02 )      (2.6 ) 

Non-Performing Loans to Ending Loans (e)

      2.26        2.64        (0.38 )      (14.4 ) 

Balance Sheet:

         

Average Assets

    $ 11,923,527      $ 10,124,212      $ 1,799,315        17.8   

End of Period Balances:

         

Assets

      11,915,163        11,179,752        735,411        6.6   

Investments

      3,460,917        3,407,989        52,928        1.6   

Money Market Investments (f)

      15,491        25,599        (10,108 )      (39.5 ) 

Commercial Loans and Leases

      1,750,809        1,667,150        83,659        5.0   

Commercial Real Estate Loans

      1,870,169        1,659,565        210,604        12.7   

Consumer Loans

      1,568,680        1,345,720        222,960        16.6   

Residential Real Estate Loans

      1,658,240        1,570,000        88,240        5.6   

Loans Held for Sale

      18,783        12,875        5,908        45.9   

Earning Assets

      10,343,089        9,688,898        654,191        6.8   

Core Deposits (Excluding Brokered CDs)

      8,561,114        8,167,743        393,371        4.8   

Borrowed Funds (Including Brokered CDs)

      1,655,431        1,406,537        248,894        17.7   

Common Shareholders’ Equity

      1,476,002        1,407,180        68,822        4.9   

 

(a) Includes $0 and $100 for other-than-temporary impairment in 2015 and 2014.
(b) Assumes conversion of stock options and restricted stock.
(c) Based on average common shareholders’ equity of $1,480,308 and $1,264,214 respectively, for 2015 and 2014.
(d) Noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions.
(e) Excludes loans held for sale.
(f) Includes money market investments and Federal Reserve interest earning accounts.

 

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