Filed by Old National Bancorp
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Anchor BanCorp Wisconsin Inc.
Commission File No.: 001-34955
| NASDAQ: ONB | ||
|
oldnational.com | ||
| FOR IMMEDIATE RELEASE | ||
| February 1, 2016 | 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 2015 Net Income of $116.7 million is 12.6% over last year; Fourth Quarter caps successful year
4TH VS. 3RD QUARTER 2015 HIGHLIGHTS:
| • | Earnings of $32.0 million, or $.27 per common share |
| • | Organic loan growth of $102.0 million, or 6.0% annualized, excluding covered loans |
| • | 5.3% decline in operational noninterest expenses1 |
| • | Tangible book value1 increase of 2.3% |
2015 HIGHLIGHTS:
| • | Earnings of $116.7 million represent a 12.6% increase over 2014 ($103.7 million) |
| • | Organic loan growth of $324.1 million or 5.1%, excluding covered, acquired & sold loans |
| • | Loan production of $2.8 billion is 39.2% over 2014 production |
| • | Credit quality remains strong |
| • | Transformation strategy reflects successful partnership integrations |
| 1 | Non-GAAP measures – refer to Tables 1 and 9 for Non-GAAP reconciliations |
Evansville, Ind. (February 1, 2016) – Today Old National Bancorp (the “Company” or “Old National”) (NASDAQ: ONB) reported 4th quarter 2015 net income of $32.0 million, or $.27 per share. These reported quarterly results compare to net income of $37.7 million in the 3rd quarter of 2015 and $29.3 million recorded in the 4th quarter of 2014.
Included in 4th quarter 2015 results were $11.1 million in pre-tax gains related primarily to the repurchase of 14 banking properties. Also included in the current quarter were $2.4 million in pre-tax charges related to continued efficiency initiatives as well as a $4.8 million pre-tax charge for a litigation settlement. Excluding the impact of these items, Old National would have reported net income of $29.4 million, or $.25 per share. Refer to Table 2 for Non-GAAP reconciliation.
For the twelve months ended December 31, 2015, net income was $116.7 million, or $1.00 per share. This net income represents an increase of 12.6% to full-year 2014 net income of $103.7 million, or $.95 per share.
Old National Bancorp President & CEO Bob Jones stated, “Our strong 4th quarter performance provides a fitting ending to 2015 – a year focused on execution. Our continued loan growth, lower expenses and excellent credit quality metrics, combined with our latest partnership and entry into the state of Wisconsin, should position us for continued success in 2016.”
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 were: 1. Continue to grow organic revenue; 2. Improve operating leverage; and 3. Prudent use of capital, all while maintaining a strong credit culture.
Grow Organic Revenue
Balance Sheet and Net Interest Margin
Total period-end loans, including loans held for sale, increased $95.5 million to $6.962 billion from $6.867 billion at September 30, 2015. Excluding the change in covered loans, Old National had organic loan growth of $102.0 million, or 6.0% annualized, in the 4th quarter. The Louisville, Kentucky market, including the Company’s new Lexington office, and the Indianapolis and Vincennes, Indiana markets were the best producing regions, increasing $21.1 million, $20.2 million and $14.5 million, respectively, over September 30, 2015, loan balances.
At December 31, 2015, total core deposits, including demand and interest-bearing deposits, decreased $259.0 million to $8.302 billion, compared to the $8.561 billion at September 30, 2015.
Net interest income in the 4th quarter of 2015 totaled $85.9 million compared to $97.1 million in the 3rd quarter of 2015, and $90.0 million in the 4th quarter of 2014. Net interest income on a fully taxable equivalent basis was $91.1 million for the 4th quarter of 2015 and represented a net interest margin on total average earning assets of 3.50%. These results compare to net interest income on a fully taxable equivalent basis of $102.1 million and a margin of 3.94% in the 3rd quarter of 2015. In the 4th quarter of 2014, Old National reported net interest income on a fully taxable equivalent basis of $94.4 million and a margin of 3.83%. Refer to Table 6 for Non-GAAP taxable equivalent reconciliations.
As part of net interest income, Old National recorded $12.3 million, or a 48 basis point contribution to net interest margin, in accretion income in the 4th quarter of 2015 related to purchase accounting discounts from various acquisitions. Total accretion income in the 3rd quarter of 2015 and the 4th quarter of 2014 reported by Old National was $20.6 million, or an 80 basis point net interest margin contribution, and $16.6 million, or a 68 basis point net interest margin contribution, respectively. Excluding accretion income, the core net interest margin was 3.02%, 3.14% and 3.15%, for the 4th quarter of 2015, the 3rd quarter of 2015 and the 4th 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 $58.9 million for the 4th quarter of 2015. This compares to $58.8 million in the 3rd quarter of 2015 and $45.6 million in the 4th quarter of 2014. Included in the 4th quarter of 2015 is a $10.8 million gain relating to the repurchase of 14 banking properties. Impacting the 3rd quarter of 2015 was a $15.4 million net gain relating to branch sales as well as a $6.6 million unfavorable change in the indemnification asset relating to the 2011 FDIC-assisted acquisition of Integra Bank. Impacting year-over-year comparisons is the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This Amendment became effective for Old National beginning July 1, 2015, resulting in a decline in interchange income of $2.7 million in both the 3rd and 4th quarters of 2015 as compared to the 4th quarter of 2014.
Improve Operating Leverage
Old National reported total noninterest expenses of $102.5 million in the 4th quarter of 2015 compared to $102.6 million in the 3rd quarter of 2015 and $100.1 million recorded in the 4th quarter of 2014. Included in the 4th quarter of 2015 are $2.4 million in pre-tax charges related to various efficiency initiatives (including branch consolidations
and divestitures and severance) as well as a $4.8 million pre-tax charge for the estimated full cost of the anticipated settlement of the previously disclosed overdraft class action litigation. This compares to pre-tax charges of $2.0 million relating to branch sales and consolidations and integration charges in the 3rd quarter of 2015 and $3.1 million relating to integration activity in the 4th quarter of 2014. Also impacting year-over-year comparisons are the operational costs associated with the United Bancorp, Inc., LSB Financial Corp., and Founders Financial Corporation acquisitions, which closed in July and November of 2014, and January of 2015, respectively, adding 27 branches to the Old National franchise. As of December 31, 2015, Old National has 160 branches throughout its franchise.
Prudent Use of Capital
Old National’s capital position remained well above regulatory guideline minimums at December 31, 2015, with regulatory tier 1 and total risk-based capital ratios of 12.6% and 13.3%, respectively, compared to 12.5% and 13.2% at September 30, 2015, and 12.9% and 13.6% at December 30, 2014. Old National repurchased 306 thousand shares of stock in the open market during the 4th quarter of 2015.
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 December 31, 2015 |
|||||||
| Tier 1 Risk-Based Capital Ratio |
>8.5 | % | 12.6 | % | ||||
| Total Risk-Based Capital Ratio |
>10.5 | % | 13.3 | % | ||||
| Common Equity Tier 1 Capital Ratio |
>7.0 | % | 12.1 | % | ||||
| Tier 1 Leverage Capital Ratio |
>4.0 | % | 8.5 | % | ||||
Old National’s ratio of tangible common equity to tangible assets was 7.66% at December 31, 2015, compared to 7.56% at September 30, 2015, and 8.09% at December 31, 2014. Refer to Table 9 for Non-GAAP reconciliations.
Maintain a Strong Credit Culture
During the 4th quarter of 2015, Old National recorded provision expense of $.5 million and had net recoveries of $.5 million. These results compare to $.2 million in provision expense and net recoveries of $.9 million, and a provision expense of $.9 million and net charge-offs of $1.3 million, in the 3rd quarter of 2015 and the 4th quarter of 2014, respectively. Net recoveries for the 4th quarter of 2015 were .03% of average total loans on an annualized basis, compared to net recoveries of .05% of average total loans in the 3rd quarter of 2015 and net charge-offs of .08% of average total loans in the 4th quarter of 2014.
Delinquencies remained low as Old National reported 30+ day delinquent loans of .31% in the 4th quarter compared to .41% in the 3rd quarter of 2015. Old National’s 90+ day delinquent loans for the 4th quarter were .01% compared to .01% in the 3rd quarter of 2015.
For the full year of 2015, Old National reported net recoveries of $1.5 million, or .02% of average total loans, and recorded provision expense of $2.9 million. This compares to the full year of 2014 with net charge-offs of $2.4 million, or .04% of average total loans, and provision expense of $3.1 million.
Old National’s allowance for loan losses at December 31, 2015, was $52.2 million, or .75% of total loans, compared to an allowance of $51.2 million, or .75% of total loans at September 30, 2015, and $47.8 million, or .76% of total loans, at December 31, 2014. The coverage ratio (allowance to non-performing loans) stood at 36% at December 31, 2015, compared to 33% at September 30, 2015, and 31% at December 31, 2014. Impacting these ratios are the Company’s recent acquisitions in which the loan portfolios were booked at fair value in accordance with ASC 805. Therefore, no allowance for loan losses is recorded on the acquisition date.
The following table presents certain credit quality metrics related to Old National’s loan portfolio:
| ($ in millions) |
4Q15 | 3Q15 | 4Q14 | |||||||||
| Non-Performing Loans (NPLs) |
$ | 146.7 | $ | 154.8 | $ | 153.7 | ||||||
| Problem Loans (Including NPLs) |
213.3 | 252.4 | 250.9 | |||||||||
| Special Mention Loans |
134.3 | 141.2 | 199.3 | |||||||||
| Net Charge-Off(Recoveries) Ratio |
(0.03 | )% | (0.05 | )% | 0.08 | % | ||||||
| Provision for Loan Losses |
$ | 0.5 | $ | 0.2 | $ | 0.9 | ||||||
| Allowance for Loan Losses |
52.2 | 51.2 | 47.8 | |||||||||
Anchor Partnership and 2016 Initiatives
“Our initial integration efforts in Wisconsin have reinforced our belief that not only is Old National entering dynamic markets, but we are doing so with a high quality team,” stated CEO Bob Jones. “This expansion of our footprint will be supported through the continued focus on execution in our current markets, which will continue to be guided by the same strategic initiatives that led to our successful 2015: 1. Continue to grow organic revenue; 2. Improve the operating leverage of the Company; and 3. Prudent use of capital. We believe the partnerships we have closed to date position the franchise in growth markets where our community bank brand and style bode well for our future performance.”
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 $12.0 billion in assets, ranks among the top 100 banking companies in the U.S. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients. Today, Old National’s footprint includes Indiana, Kentucky and Michigan. In addition to providing extensive services in retail and commercial banking, wealth management, investments and brokerage, Old National also owns Old National Insurance, one of the 100 largest brokers in the U.S. For more information and financial data, please visit Investor Relations at oldnational.com.
Conference Call
Old National will hold a conference call at 10:00 a.m. Central Time on Monday, February 1, 2016, to discuss 4th quarter and full-year 2015 financial results, strategic developments, and the Company’s financial outlook. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. A replay of the call will also be available from 7:00 a.m. Central Time on February 2 through February 16. To access the replay, dial 1-855-859-2056, Conference ID Code 24105575.
Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this release or the Quarterly Financial Trends supplement to this earnings release, which can be found on Investor Relations at oldnational.com.
Table 1: Non-GAAP Reconciliation-Operational Noninterest Expenses
| ($ in millions) |
4Q15 | 3Q15 | ||||||
| Total Noninterest Expenses As Reported |
$ | 102.5 | $ | 102.6 | ||||
| Anticipated Settlement of Previously Disclosed Overdraft Litigation |
(4.8 | ) | — | |||||
| Branch Consolidation/Divestiture, Integration and Severance Charges |
(2.4 | ) | (2.0 | ) | ||||
| Operational Noninterest Expenses |
$ | 95.3 | $ | 100.6 | ||||
Table 2: Non-GAAP Reconciliation-Adjusted Net Income
| ($ in millions, shares in 000s) |
Reported 4Q15 | Adjustments | Adjusted 4Q15 | |||||||||
| Total Revenues (FTE Basis) |
$ | 151.7 | $ | (11.1 | ) | $ | 140.6 | |||||
| Less: Provision for Loan Losses |
(0.5 | ) | — | (0.5 | ) | |||||||
| Less: Noninterest Expenses |
(102.5 | ) | 7.2 | (95.3 | ) | |||||||
| Income before Income Taxes |
$ | 48.7 | $ | (3.9 | ) | $ | 44.8 | |||||
| Income Taxes |
(16.7 | ) | 1.3 | (15.4 | ) | |||||||
| Net Income |
$ | 32.0 | $ | (2.6 | ) | $ | 29.4 | |||||
| Average Shares Outstanding |
114,716 | — | 114,716 | |||||||||
| Earnings Per Share |
$ | 0.27 | $ | (0.02 | ) | $ | 0.25 | |||||
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, statements about the expected timing, completion, financial benefits and other effects of the proposed merger between ONB and Anchor. 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 proposed merger might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the requisite shareholder and regulatory approvals for the proposed merger might not be obtained; satisfaction of other closing conditions; delay in closing the proposed merger; the reaction to the transaction of the companies’ customers and employees; market, economic, operational, liquidity, credit and interest rate risks associated with ONB’s and Anchor’s businesses; 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 ONB and Anchor to execute their respective business plans (including integrating the ONB and Anchor businesses); 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; other matters discussed in this press release and other factors identified in ONB’s 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 neither ONB nor Anchor undertakes an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.
Additional Information About the Old National Bancorp/Anchor BanCorp Wisconsin Inc. Transaction
Communications in this press release do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, ONB will file with the SEC a Registration Statement on Form S-4 that will include a Proxy Statement of Anchor and a Prospectus of ONB, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the Registration Statement and the Proxy Statement/Prospectus regarding the merger when it becomes available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about ONB and Anchor, may be obtained at the SEC’s Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from ONB at www.oldnational.com under the tab “Investor Relations” and then under the heading “Financial Information” or from Anchor by accessing Anchor’s website at www.anchorbank.com under the tab “About Us.”
ONB and Anchor and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Anchor in connection with the proposed merger. Information about the directors and executive officers of ONB is set forth in the proxy statement for ONB’s 2015 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 13, 2015. Information about the directors and executive officers of Anchor is set forth in the proxy statement for Anchor’s 2015 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 27, 2015. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.
| TABLE 3 | Financial Highlights | |||
| ($ and shares in thousands, except per share data) |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
| Income Statement |
||||||||||||||||||||
| Net interest income |
$ | 85,922 | $ | 97,104 | $ | 90,043 | $ | 366,116 | $ | 366,370 | ||||||||||
| Provision for loan losses |
484 | 167 | 869 | 2,923 | 3,097 | |||||||||||||||
| Noninterest income |
60,614 | 59,744 | 50,495 | 230,632 | 165,129 | |||||||||||||||
| Net income |
31,985 | 37,669 | 29,250 | 116,716 | 103,667 | |||||||||||||||
| Per Common Share Data (Diluted) |
||||||||||||||||||||
| Net income available to common shareholders |
$ | 0.27 | $ | 0.33 | $ | 0.25 | $ | 1.00 | $ | 0.95 | ||||||||||
| Average diluted shares outstanding |
114,716 | 115,153 | 116,592 | 116,255 | 108,365 | |||||||||||||||
| Book value |
13.05 | 12.89 | 12.54 | 13.05 | 12.54 | |||||||||||||||
| Stock price |
13.56 | 13.93 | 14.88 | 13.56 | 14.88 | |||||||||||||||
| Dividend payout ratio |
43 | % | 36 | % | 44 | % | 48 | % | 46 | % | ||||||||||
| Tangible common book value (1) |
7.62 | 7.45 | 7.67 | 7.62 | 7.67 | |||||||||||||||
| Performance Ratios |
||||||||||||||||||||
| Return on average assets |
1.07 | % | 1.26 | % | 1.03 | % | 0.98 | % | 0.99 | % | ||||||||||
| Return on average common equity |
8.63 | % | 10.27 | % | 8.06 | % | 7.88 | % | 7.91 | % | ||||||||||
| Net interest margin (FTE) |
3.50 | % | 3.94 | % | 3.83 | % | 3.72 | % | 4.22 | % | ||||||||||
| Efficiency ratio (2) |
66.42 | % | 61.97 | % | 69.54 | % | 68.65 | % | 70.03 | % | ||||||||||
| Net charge-offs (recoveries) to average loans |
-0.03 | % | -0.05 | % | 0.08 | % | -0.02 | % | 0.04 | % | ||||||||||
| Allowance for loan losses to ending loans |
0.75 | % | 0.75 | % | 0.76 | % | 0.75 | % | 0.76 | % | ||||||||||
| Non-performing loans to ending loans |
2.11 | % | 2.26 | % | 2.43 | % | 2.11 | % | 2.43 | % | ||||||||||
| Balance Sheet |
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| Total loans |
$ | 6,948,405 | $ | 6,847,898 | $ | 6,318,201 | $ | 6,948,405 | $ | 6,318,201 | ||||||||||
| Total assets |
11,991,527 | 11,913,786 | 11,646,051 | 11,991,527 | 11,646,051 | |||||||||||||||
| Total deposits |
8,400,860 | 8,621,325 | 8,490,664 | 8,400,860 | 8,490,664 | |||||||||||||||
| Total borrowed funds |
1,920,246 | 1,593,843 | 1,469,911 | 1,920,246 | 1,469,911 | |||||||||||||||
| Total shareholders’ equity |
1,491,170 | 1,476,002 | 1,465,764 | 1,491,170 | 1,465,764 | |||||||||||||||
| Capital Ratios (1) |
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| Risk-based capital ratios (EOP): |
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| Tier 1 common equity |
12.1 | % | 12.1 | % | N/A | 12.1 | % | N/A | ||||||||||||
| Tier 1 |
12.6 | % | 12.5 | % | 12.9 | % | 12.6 | % | 12.9 | % | ||||||||||
| Total |
13.3 | % | 13.2 | % | 13.6 | % | 13.3 | % | 13.6 | % | ||||||||||
| Leverage ratio (to average assets) |
8.5 | % | 8.4 | % | 8.8 | % | 8.5 | % | 8.8 | % | ||||||||||
| Total equity to assets (averages) |
12.42 | % | 12.30 | % | 12.79 | % | 12.42 | % | 12.57 | % | ||||||||||
| Tangible common equity to tangible assets |
7.66 | % | 7.56 | % | 8.09 | % | 7.66 | % | 8.09 | % | ||||||||||
| Nonfinancial Data |
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| Full-time equivalent employees |
2,652 | 2,675 | 2,938 | 2,652 | 2,938 | |||||||||||||||
| Number of branches |
160 | 164 | 195 | 160 | 195 | |||||||||||||||
| (1) | See non-GAAP measures on Table 9. |
| (2) | Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions. This presentation excludes intangible amortization and net securities gains, as is common in other company releases, and better aligns with true operating performance. |
| FTE - Fully taxable equivalent basis | EOP - End of period actual balances | N/A - Not applicable |
| TABLE 4 | Income Statement | |||
| ($ and shares in thousands, except per share data) |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
| Interest income |
$ | 94,960 | $ | 105,671 | $ | 97,318 | $ | 399,189 | $ | 389,729 | ||||||||||
| Less: interest expense |
9,038 | 8,567 | 7,275 | 33,073 | 23,359 | |||||||||||||||
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| Net interest income |
85,922 | 97,104 | 90,043 | 366,116 | 366,370 | |||||||||||||||
| Wealth management fees |
8,142 | 8,290 | 8,251 | 34,395 | 28,737 | |||||||||||||||
| Service charges on deposit accounts |
10,039 | 11,010 | 11,997 | 43,372 | 47,433 | |||||||||||||||
| Debit card and ATM fees |
3,646 | 3,887 | 6,818 | 21,340 | 25,835 | |||||||||||||||
| Mortgage banking revenue |
2,145 | 3,170 | 2,390 | 12,540 | 6,017 | |||||||||||||||
| Insurance premiums and commissions |
10,491 | 9,938 | 9,932 | 42,714 | 41,466 | |||||||||||||||
| Investment product fees |
4,375 | 4,427 | 4,467 | 17,924 | 17,136 | |||||||||||||||
| Company-owned life insurance |
2,064 | 2,195 | 1,982 | 8,604 | 6,924 | |||||||||||||||
| Change in Indemnification Asset |
57 | (6,582 | ) | (6,246 | ) | (9,034 | ) | (43,162 | ) | |||||||||||
| Other income |
17,958 | 22,477 | 5,963 | 52,851 | 24,650 | |||||||||||||||
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| Total fees, service charges and other revenue |
58,917 | 58,812 | 45,554 | 224,706 | 155,036 | |||||||||||||||
| Gains (losses) on sales of securities (1) |
1,662 | 861 | 4,869 | 5,718 | 9,730 | |||||||||||||||
| Gains (losses) on derivatives |
35 | 71 | 72 | 208 | 363 | |||||||||||||||
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| Total noninterest income |
60,614 | 59,744 | 50,495 | 230,632 | 165,129 | |||||||||||||||
| Total revenues |
146,536 | 156,848 | 140,538 | 596,748 | 531,499 | |||||||||||||||
| Salaries and employee benefits |
56,782 | 58,151 | 58,237 | 243,875 | 219,301 | |||||||||||||||
| Occupancy |
11,796 | 13,009 | 12,722 | 53,239 | 49,099 | |||||||||||||||
| Equipment |
2,856 | 2,977 | 2,933 | 13,183 | 12,453 | |||||||||||||||
| Marketing |
1,769 | 2,727 | 2,590 | 10,410 | 9,591 | |||||||||||||||
| Data processing |
6,020 | 6,622 | 6,918 | 27,309 | 25,382 | |||||||||||||||
| Communication |
2,106 | 2,301 | 2,907 | 9,586 | 10,476 | |||||||||||||||
| Professional fees |
2,808 | 2,435 | 3,733 | 11,756 | 16,390 | |||||||||||||||
| Loan expenses |
1,811 | 1,420 | 1,696 | 6,373 | 6,107 | |||||||||||||||
| Supplies |
565 | 445 | 688 | 2,275 | 2,958 | |||||||||||||||
| FDIC assessment |
1,913 | 1,733 | 1,704 | 7,503 | 6,261 | |||||||||||||||
| Other real estate owned expense |
482 | 584 | 330 | 2,703 | 3,101 | |||||||||||||||
| Intangible amortization |
2,816 | 2,872 | 2,761 | 11,746 | 9,120 | |||||||||||||||
| Other expense |
10,745 | 7,341 | 2,897 | 30,974 | 16,199 | |||||||||||||||
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| Total noninterest expense |
102,469 | 102,617 | 100,116 | 430,932 | 386,438 | |||||||||||||||
| Provision for loan losses |
484 | 167 | 869 | 2,923 | 3,097 | |||||||||||||||
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|
|||||||||||
| Income before income taxes |
43,583 | 54,064 | 39,552 | 162,893 | 141,964 | |||||||||||||||
| Total taxes |
11,598 | 16,395 | 10,302 | 46,177 | 38,297 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income |
$ | 31,985 | $ | 37,669 | $ | 29,250 | $ | 116,716 | $ | 103,667 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Diluted Earnings Per Share |
||||||||||||||||||||
| Net income |
$ | 0.27 | $ | 0.33 | $ | 0.25 | $ | 1.00 | $ | 0.95 | ||||||||||
| Average Common Shares Outstanding |
||||||||||||||||||||
| Basic |
114,103 | 114,590 | 115,924 | 115,726 | 107,818 | |||||||||||||||
| Diluted |
114,716 | 115,153 | 116,592 | 116,255 | 108,365 | |||||||||||||||
| Common shares outstanding (EOP) |
114,297 | 114,523 | 116,847 | 114,297 | 116,847 | |||||||||||||||
| (1) | Includes $0.1 million other-than-temporary impairment (OTTI) in the twelve months ended December 31, 2014. |
| TABLE 5 | Balance Sheet (EOP) ($ in thousands) | |||
| December 31, | September 30, | December 31, | ||||||||||
| 2015 | 2015 | 2014 | ||||||||||
| Assets |
||||||||||||
| Federal Reserve Bank account |
$ | 125,724 | $ | 10,901 | $ | 19,954 | ||||||
| Money market investments |
2,783 | 4,590 | 12,138 | |||||||||
| Investments: |
||||||||||||
| Treasury and government sponsored agencies |
768,564 | 797,713 | 868,324 | |||||||||
| Mortgage-backed securities |
1,082,403 | 1,154,134 | 1,265,310 | |||||||||
| States and political subdivisions |
1,100,501 | 1,079,678 | 967,740 | |||||||||
| Other securities |
428,951 | 429,392 | 445,567 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total investments |
3,380,419 | 3,460,917 | 3,546,941 | |||||||||
|
|
|
|
|
|
|
|||||||
| Loans held for sale |
13,810 | 18,783 | 213,490 | |||||||||
| Loans: |
||||||||||||
| Commercial |
1,804,615 | 1,740,394 | 1,629,600 | |||||||||
| Commercial and agriculture real estate |
1,847,821 | 1,845,889 | 1,711,110 | |||||||||
| Consumer: |
||||||||||||
| Home equity |
359,954 | 362,055 | 360,320 | |||||||||
| Other consumer loans |
1,183,814 | 1,145,232 | 950,307 | |||||||||
|
|
|
|
|
|
|
|||||||
| Subtotal of commercial and consumer loans |
5,196,204 | 5,093,570 | 4,651,337 | |||||||||
| Residential real estate |
1,644,614 | 1,640,289 | 1,519,156 | |||||||||
| Covered loans |
107,587 | 114,039 | 147,708 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total loans |
6,948,405 | 6,847,898 | 6,318,201 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total earning assets |
10,471,141 | 10,343,089 | 10,110,724 | |||||||||
|
|
|
|
|
|
|
|||||||
| Allowance for loan losses |
(52,233 | ) | (51,226 | ) | (47,849 | ) | ||||||
| Nonearning Assets: |
||||||||||||
| Cash and due from banks |
91,311 | 157,919 | 207,871 | |||||||||
| Premises and equipment |
196,676 | 130,341 | 135,892 | |||||||||
| Goodwill and intangible assets |
619,942 | 622,758 | 569,539 | |||||||||
| Company-owned life insurance |
341,294 | 339,352 | 325,617 | |||||||||
| FDIC Indemnification Asset |
9,030 | 8,905 | 20,603 | |||||||||
| Other real estate owned |
12,498 | 13,705 | 16,362 | |||||||||
| Other assets |
301,868 | 348,943 | 307,292 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total nonearning assets |
1,572,619 | 1,621,923 | 1,583,176 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total assets |
$ | 11,991,527 | $ | 11,913,786 | $ | 11,646,051 | ||||||
|
|
|
|
|
|
|
|||||||
| Liabilities and Equity |
||||||||||||
| Noninterest-bearing demand deposits |
$ | 2,488,855 | $ | 2,388,854 | $ | 2,427,748 | ||||||
| NOW accounts |
2,133,536 | 2,001,077 | 2,176,879 | |||||||||
| Savings accounts |
2,201,352 | 2,201,066 | 2,222,557 | |||||||||
| Money market accounts |
577,050 | 1,043,135 | 574,462 | |||||||||
| Other time deposits |
901,352 | 926,981 | 1,052,508 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total core deposits |
8,302,145 | 8,561,113 | 8,454,154 | |||||||||
| Brokered CD’s |
98,715 | 60,212 | 36,510 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total deposits |
8,400,860 | 8,621,325 | 8,490,664 | |||||||||
| Short-term borrowings |
628,499 | 474,894 | 551,309 | |||||||||
| Other borrowings |
1,291,747 | 1,118,949 | 918,603 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total borrowed funds |
1,920,246 | 1,593,843 | 1,469,911 | |||||||||
| Accrued expenses and other liabilities |
179,251 | 222,616 | 219,712 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
10,500,357 | 10,437,784 | 10,180,287 | |||||||||
| Common stock, surplus, and retained earnings |
1,525,967 | 1,510,382 | 1,497,319 | |||||||||
| Other comprehensive income |
(34,797 | ) | (34,380 | ) | (31,555 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Total shareholders’ equity |
1,491,170 | 1,476,002 | 1,465,764 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities and shareholders’ equity |
$ | 11,991,527 | $ | 11,913,786 | $ | 11,646,051 | ||||||
|
|
|
|
|
|
|
|||||||
EOP - End of period actual balances
| TABLE 6 | Average Balance Sheet and Interest Rates | |
| ($ in thousands) |
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||
| December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||||||
| Average Balance |
Income (1)/ Expense |
Yield/ Rate |
Average Balance |
Income (1)/ Expense |
Yield/ Rate |
Average Balance |
Income (1)/ Expense |
Yield/ Rate |
||||||||||||||||||||||||||||
| Earning Assets: |
||||||||||||||||||||||||||||||||||||
| Fed Funds sold, resell agr, Fed Reserve Bank account, and money market |
$ | 94,660 | $ | 29 | 0.12 | % | $ | 33,215 | $ | 4 | 0.05 | % | $ | 21,398 | $ | 20 | 0.38 | % | ||||||||||||||||||
| Investments: |
||||||||||||||||||||||||||||||||||||
| Treasury and gov’t sponsored agencies |
770,472 | 3,658 | 1.90 | % | 820,424 | 3,926 | 1.91 | % | 839,774 | 4,171 | 1.99 | % | ||||||||||||||||||||||||
| Mortgage-backed securities |
1,134,521 | 5,356 | 1.89 | % | 1,123,701 | 5,179 | 1.84 | % | 1,255,051 | 5,297 | 1.69 | % | ||||||||||||||||||||||||
| States and political subdivisions |
1,088,917 | 12,935 | 4.75 | % | 1,052,494 | 12,610 | 4.79 | % | 908,662 | 11,325 | 4.99 | % | ||||||||||||||||||||||||
| Other securities |
431,541 | 2,635 | 2.44 | % | 440,588 | 2,773 | 2.52 | % | 433,442 | 2,766 | 2.54 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total investments |
3,425,451 | 24,584 | 2.87 | % | 3,437,207 | 24,488 | 2.85 | % | 3,436,929 | 23,558 | 2.73 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Loans: |
||||||||||||||||||||||||||||||||||||
| Commercial (2) |
1,773,804 | 16,861 | 3.72 | % | 1,765,028 | 20,106 | 4.46 | % | 1,661,863 | 18,919 | 4.45 | % | ||||||||||||||||||||||||
| Commercial and agriculture real estate (2) |
1,860,536 | 27,496 | 5.78 | % | 1,873,068 | 34,303 | 7.23 | % | 1,737,031 | 29,566 | 6.66 | % | ||||||||||||||||||||||||
| Consumer: |
||||||||||||||||||||||||||||||||||||
| Home equity (2) |
424,013 | 4,218 | 3.95 | % | 433,517 | 4,230 | 3.87 | % | 423,370 | 3,501 | 3.28 | % | ||||||||||||||||||||||||
| Other consumer loans (2) |
1,160,652 | 9,747 | 3.33 | % | 1,140,330 | 9,976 | 3.47 | % | 965,511 | 9,467 | 3.89 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Subtotal commercial and consumer loans |
5,219,005 | 58,322 | 4.43 | % | 5,195,768 | 68,615 | 5.24 | % | 4,787,775 | 61,453 | 5.09 | % | ||||||||||||||||||||||||
| Residential real estate loans (2) |
1,675,707 | 17,188 | 4.10 | % | 1,698,501 | 17,529 | 4.13 | % | 1,612,419 | 16,611 | 4.10 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total loans (2) |
6,894,712 | 75,510 | 4.32 | % | 6,894,269 | 86,144 | 4.92 | % | 6,400,194 | 78,064 | 4.81 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total earning assets |
$ | 10,414,823 | $ | 100,123 | 3.80 | % | $ | 10,364,691 | $ | 110,636 | 4.22 | % | $ | 9,858,522 | $ | 101,642 | 4.09 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Interest-bearing Liabilities: |
||||||||||||||||||||||||||||||||||||
| NOW accounts |
$ | 2,063,815 | $ | 289 | 0.06 | % | $ | 2,099,658 | $ | 148 | 0.03 | % | $ | 2,190,919 | $ | 184 | 0.03 | % | ||||||||||||||||||
| Savings accounts |
2,207,640 | 784 | 0.14 | % | 2,278,466 | 797 | 0.14 | % | 2,204,138 | 751 | 0.14 | % | ||||||||||||||||||||||||
| Money market accounts |
828,501 | 263 | 0.13 | % | 607,060 | 104 | 0.07 | % | 557,842 | 72 | 0.05 | % | ||||||||||||||||||||||||
| Other time deposits |
909,985 | 2,123 | 0.93 | % | 973,729 | 2,351 | 0.96 | % | 1,048,183 | 2,331 | 0.88 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total interest-bearing deposits |
6,009,941 | 3,459 | 0.23 | % | 5,958,913 | 3,401 | 0.23 | % | 6,001,083 | 3,338 | 0.22 | % | ||||||||||||||||||||||||
| Brokered CD’s |
80,951 | 141 | 0.69 | % | 43,201 | 74 | 0.68 | % | 38,004 | 43 | 0.45 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total interest-bearing deposits and CD’s |
6,090,892 | 3,600 | 0.23 | % | 6,002,114 | 3,474 | 0.23 | % | 6,039,087 | 3,381 | 0.22 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Short-term borrowings |
479,760 | 144 | 0.12 | % | 527,368 | 140 | 0.11 | % | 437,388 | 84 | 0.08 | % | ||||||||||||||||||||||||
| Other borrowings |
1,196,166 | 5,294 | 1.75 | % | 1,230,541 | 4,952 | 1.59 | % | 827,658 | 3,811 | 1.81 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total borrowed funds |
1,675,926 | 5,438 | 1.29 | % | 1,757,909 | 5,092 | 1.15 | % | 1,265,047 | 3,895 | 1.19 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total interest-bearing liabilities |
$ | 7,766,818 | $ | 9,038 | 0.46 | % | $ | 7,760,023 | $ | 8,567 | 0.44 | % | $ | 7,304,134 | $ | 7,276 | 0.40 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Net interest rate spread |
3.34 | % | 3.78 | % | 3.69 | % | ||||||||||||||||||||||||||||||
| Net interest margin (FTE) |
3.50 | % | 3.94 | % | 3.83 | % | ||||||||||||||||||||||||||||||
| FTE adjustment |
$ | 5,163 | $ | 4,965 | $ | 4,324 | ||||||||||||||||||||||||||||||
| (1) | Interest income is reflected on a fully taxable equivalent basis (FTE). |
| (2) | Includes loans held for sale. |
| TABLE 7 | Average Balance Sheet and Interest Rates | |
| ($ in Thousands) |
| Twelve Months Ended December 31, 2015 |
Twelve Months Ended December 31, 2014 |
|||||||||||||||||||||||
| Average Balance |
Income (1)/ Expense |
Yield/ Rate |
Average Balance |
Income (1)/ Expense |
Yield/ Rate |
|||||||||||||||||||
| Earning Assets: |
||||||||||||||||||||||||
| Fed Funds sold, resell agr, Fed Reserve Bank account, and money market |
$ | 43,383 | $ | 47 | 0.11 | % | $ | 20,148 | $ | 42 | 0.21 | % | ||||||||||||
| Investments: |
||||||||||||||||||||||||
| Treasury and gov’t sponsored agencies |
829,728 | 16,080 | 1.94 | % | 760,566 | 15,612 | 2.05 | % | ||||||||||||||||
| Mortgage-backed securities |
1,137,565 | 20,645 | 1.81 | % | 1,281,412 | 23,130 | 1.81 | % | ||||||||||||||||
| States and political subdivisions |
1,023,983 | 49,162 | 4.80 | % | 889,343 | 45,112 | 5.07 | % | ||||||||||||||||
| Other securities |
444,520 | 10,903 | 2.45 | % | 418,714 | 11,322 | 2.70 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total investments |
3,435,796 | 96,790 | 2.82 | % | 3,350,035 | 95,176 | 2.84 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Loans: |
||||||||||||||||||||||||
| Commercial (2) |
1,754,141 | 75,900 | 4.33 | % | 1,527,436 | 70,471 | 4.61 | % | ||||||||||||||||
| Commercial and agriculture real estate (2) |
1,862,055 | 118,237 | 6.35 | % | 1,474,136 | 130,780 | 8.87 | % | ||||||||||||||||
| Consumer: |
||||||||||||||||||||||||
| Home equity (2) |
439,657 | 17,480 | 3.98 | % | 374,320 | 15,281 | 4.08 | % | ||||||||||||||||
| Other consumer loans (2) |
1,115,430 | 39,370 | 3.53 | % | 839,571 | 34,074 | 4.06 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Subtotal commercial and consumer loans |
5,170,591 | 250,987 | 4.85 | % | 4,215,463 | 250,606 | 5.94 | % | ||||||||||||||||
| Residential real estate loans (2) |
1,712,636 | 70,908 | 4.14 | % | 1,497,122 | 60,904 | 4.07 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total loans (2) |
6,883,919 | 321,895 | 4.68 | % | 5,712,585 | 311,510 | 5.45 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total earning assets |
$ | 10,363,098 | $ | 418,732 | 4.04 | % | $ | 9,082,768 | $ | 406,728 | 4.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Interest-bearing Liabilities: |
||||||||||||||||||||||||
| NOW accounts |
$ | 2,160,019 | $ | 758 | 0.04 | % | $ | 1,989,794 | $ | 595 | 0.03 | % | ||||||||||||
| Savings accounts |
2,299,357 | 3,199 | 0.14 | % | 2,104,076 | 2,875 | 0.14 | % | ||||||||||||||||
| Money market accounts |
677,414 | 577 | 0.09 | % | 490,247 | 250 | 0.05 | % | ||||||||||||||||
| Other time deposits |
1,001,436 | 9,270 | 0.93 | % | 996,405 | 9,453 | 0.91 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest-bearing deposits |
6,138,226 | 13,804 | 0.23 | % | 5,580,522 | 13,173 | 0.24 | % | ||||||||||||||||
| Brokered CD’s |
62,346 | 364 | 0.58 | % | 27,973 | 153 | 0.55 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest-bearing deposits and CD’s |
6,200,572 | 14,168 | 0.23 | % | 5,608,494 | 13,326 | 0.24 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Short-term borrowings |
482,241 | 493 | 0.10 | % | 404,919 | 310 | 0.08 | % | ||||||||||||||||
| Other borrowings |
1,061,681 | 18,412 | 1.73 | % | 753,358 | 9,723 | 1.29 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total borrowed funds |
1,543,922 | 18,905 | 1.22 | % | 1,158,277 | 10,033 | 0.86 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest-bearing liabilities |
$ | 7,744,494 | $ | 33,073 | 0.43 | % | $ | 6,766,771 | $ | 23,359 | 0.35 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net interest rate spread |
3.61 | % | 4.12 | % | ||||||||||||||||||||
| Net interest margin (FTE) |
3.72 | % | 4.22 | % | ||||||||||||||||||||
| FTE adjustment |
$ | 19,543 | $ | 16,999 | ||||||||||||||||||||
| (1) | Interest income is reflected on a fully taxable equivalent basis (FTE). |
| (2) | Includes loans held for sale. |
| TABLE 8 | Asset Quality (EOP) | |
| ($ in thousands) |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2015 |
September 30, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
||||||||||||||||
| Beginning allowance for loan losses |
$ | 51,226 | $ | 50,191 | $ | 48,279 | $ | 47,849 | $ | 47,145 | ||||||||||
| Provision for loan losses |
484 | 167 | 869 | 2,923 | 3,097 | |||||||||||||||
| Gross charge-offs |
(3,499 | ) | (2,468 | ) | (3,524 | ) | (10,818 | ) | (11,216 | ) | ||||||||||
| Gross recoveries |
4,022 | 3,336 | 2,225 | 12,279 | 8,823 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net (charge-offs) recoveries |
523 | 869 | (1,298 | ) | 1,461 | (2,393 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Ending allowance for loan losses |
$ | 52,233 | $ | 51,226 | $ | 47,849 | $ | 52,233 | $ | 47,849 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net charge-offs (recoveries) / average loans (1) |
-0.03 | % | -0.05 | % | 0.08 | % | -0.02 | % | 0.04 | % | ||||||||||
| Average loans outstanding (1) |
$ | 6,891,197 | $ | 6,791,601 | $ | 6,387,085 | $ | 6,756,135 | $ | 5,703,294 | ||||||||||
| EOP loans outstanding (1) |
$ | 6,948,405 | $ | 6,847,898 | $ | 6,318,201 | $ | 6,948,405 | $ | 6,318,201 | ||||||||||
| Allowance for loan loss / EOP loans (1) |
0.75 | % | 0.75 | % | 0.76 | % | 0.75 | % | 0.76 | % | ||||||||||
| Underperforming Assets: |
||||||||||||||||||||
| Loans 90 Days and over (still accruing) |
$ | 916 | $ | 575 | $ | 457 | $ | 916 | $ | 457 | ||||||||||
| Non-performing loans: |
||||||||||||||||||||
| Nonaccrual loans (2) |
132,373 | 140,666 | 140,860 | 132,373 | 140,860 | |||||||||||||||
| Renegotiated loans |
14,285 | 14,121 | 12,858 | 14,285 | 12,858 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-performing loans |
146,658 | 154,787 | 153,718 | 146,658 | 153,718 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Foreclosed properties |
12,498 | 13,705 | 16,362 | 12,498 | 16,362 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total underperforming assets |
$ | 160,072 | $ | 169,067 | $ | 170,537 | $ | 160,072 | $ | 170,537 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Classified loans - “problem loans” |
$ | 213,294 | $ | 252,397 | $ | 250,899 | $ | 213,294 | $ | 250,899 | ||||||||||
| Other classified assets |
6,857 | 22,111 | 26,479 | 6,857 | 26,479 | |||||||||||||||
| Criticized loans - “special mention loans” |
134,347 | 141,187 | 199,334 | 134,347 | 199,334 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total classified and criticized assets |
$ | 354,498 | $ | 415,695 | $ | 476,712 | $ | 354,498 | $ | 476,712 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-performing loans / EOP loans (1) |
2.11 | % | 2.26 | % | 2.43 | % | 2.11 | % | 2.43 | % | ||||||||||
| Allowance to non-performing loans (3) |
36 | % | 33 | % | 31 | % | 36 | % | 31 | % | ||||||||||
| Under-performing assets / EOP loans (1) |
2.30 | % | 2.47 | % | 2.70 | % | 2.30 | % | 2.70 | % | ||||||||||
| EOP total assets |
$ | 11,991,527 | $ | 11,913,786 | $ | 11,646,051 | $ | 11,991,527 | $ | 11,646,051 | ||||||||||
| Under-performing assets / EOP assets |
1.33 | % | 1.42 | % | 1.46 | % | 1.33 | % | 1.46 | % | ||||||||||
EOP - End of period actual balances
| (1) | Excludes loans held for sale. |
| (2) | Includes renegotiated loans totaling $30.0 million at December 31, 2015, $38.6 million at September 30, 2015, and $22.1 million at December 31, 2014. |
| (3) | Includes acquired loans that were recorded at fair value in accordance with ASC 805 at the date of acquisition. As such, the credit risk was incorporated in the fair value recorded and no allowance for loan losses was recorded on the acquisition date. |
| TABLE 9 | Non-GAAP Measures | |
| ($ in thousands) |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2015 |
September 30, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
||||||||||||||||
| Actual EOP Balances |
||||||||||||||||||||
| GAAP shareholders’ equity |
$ | 1,491,170 | $ | 1,476,002 | $ | 1,465,764 | $ | 1,491,170 | $ | 1,465,764 | ||||||||||
| Deduct: |
||||||||||||||||||||
| Goodwill |
584,634 | 584,634 | 530,845 | 584,634 | 530,845 | |||||||||||||||
| Intangibles |
35,308 | 38,124 | 38,694 | 35,308 | 38,694 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 619,942 | 622,758 | 569,539 | 619,942 | 569,539 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible shareholders’ equity |
$ | 871,228 | $ | 853,244 | $ | 896,225 | $ | 871,228 | $ | 896,225 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Actual EOP Balances |
||||||||||||||||||||
| GAAP assets |
$ | 11,991,527 | $ | 11,913,786 | $ | 11,646,051 | $ | 11,991,527 | $ | 11,646,051 | ||||||||||
| Add: |
||||||||||||||||||||
| Trust overdrafts |
29 | 127 | 227 | 29 | 227 | |||||||||||||||
| Deduct: |
||||||||||||||||||||
| Goodwill |
584,634 | 584,634 | 530,845 | 584,634 | 530,845 | |||||||||||||||
| Intangibles |
35,308 | 38,124 | 38,694 | 35,308 | 38,694 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 619,942 | 622,758 | 569,539 | 619,942 | 569,539 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible Assets |
$ | 11,371,614 | $ | 11,291,155 | $ | 11,076,739 | $ | 11,371,614 | $ | 11,076,739 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Risk weighted assets |
7,718,065 | 7,597,349 | 7,334,027 | 7,718,065 | 7,334,027 | |||||||||||||||
| Actual EOP Balances |
||||||||||||||||||||
| GAAP net income |
$ | 31,985 | $ | 37,669 | $ | 29,250 | $ | 116,716 | $ | 103,667 | ||||||||||
| Add: |
||||||||||||||||||||
| Intangible amortization (net of tax) |
2,545 | 2,596 | 2,461 | 10,593 | 7,797 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible net income |
$ | 34,530 | $ | 40,265 | $ | 31,711 | $ | 127,309 | $ | 111,464 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible Ratios |
||||||||||||||||||||
| Return on tangible common equity |
15.85 | % | 18.88 | % | 14.15 | % | 14.61 | % | 12.44 | % | ||||||||||
| Return on tangible assets |
1.21 | % | 1.43 | % | 1.15 | % | 1.12 | % | 1.01 | % | ||||||||||
| Tangible common equity to tangible assets |
7.66 | % | 7.56 | % | 8.09 | % | 7.66 | % | 8.09 | % | ||||||||||
| Tangible common equity to risk weighted assets |
11.29 | % | 11.23 | % | 12.22 | % | 11.29 | % | 12.22 | % | ||||||||||
| Tangible common book value (1) |
7.62 | 7.45 | 7.67 | 7.62 | 7.67 | |||||||||||||||
| Tangible common equity presentation includes other comprehensive income as is common in other company releases. | ||||||||||||||||||||
| (1) Tangible common shareholders’ equity divided by common shares issued and outstanding at period-end.
|
| |||||||||||||||||||
| Tier 1 capital |
$ | 968,772 | $ | 950,915 | $ | 944,649 | $ | 968,772 | $ | 944,649 | ||||||||||
| Deduct: |
||||||||||||||||||||
| Trust Preferred Securities |
45,000 | 45,000 | 45,000 | 45,000 | 45,000 | |||||||||||||||
| Additional Tier 1 capital deductions |
(10,725 | ) | (11,392 | ) | — | (10,725 | ) | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 34,275 | 33,608 | 45,000 | 34,275 | 45,000 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tier 1 common equity |
$ | 934,497 | $ | 917,307 | $ | 899,649 | $ | 934,497 | $ | 899,649 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Risk weighted assets |
7,718,065 | 7,597,349 | 7,334,027 | 7,718,065 | 7,334,027 | |||||||||||||||
| Tier 1 common equity to risk weighted assets |
12.11 | % | 12.07 | % | 12.27 | % | 12.11 | % | 12.27 | % | ||||||||||