GlobeNewswire Inc | Jul 20, 2020 07:00AM EDT

July 20, 2020

EVANSVILLE, Ind., July 20, 2020 (GLOBE NEWSWIRE) --

Old National Bancorp (NASDAQ: ONB) reports 2Q20 net income of $51.7 million,diluted EPS of $0.32.Adjusted^1 net income of $55.1 million, or $0.33 per diluted share.

CEO COMMENTARY

?Old National?s strong 2^nd quarter loan production was driven by our abilityto help more than 9,400 new and existing clients secure Paycheck ProtectionProgram funding, which resulted in financial assistance to nearly 160,000 oftheir employees,? said Old National Chairman & CEO Jim Ryan. ?We alsomaintained strong credit metrics and capital ratios during the quarter whileworking to finalize our recently announced technology partnership with Infosys? a partnership that will accelerate and enhance our ability to providepowerful digital solutions to our clients.?

SECOND QUARTER HIGHLIGHTS2

Net income ? Net income of $51.7 million ? Earnings per share of $0.32 Net ? Net interest income on a fully taxable equivalent basis ofinterest $149.0 million compared to $147.1 millionincome/NIM ? Net interest margin on a fully taxable equivalent basis of 3.14% compared to 3.31% ? Pre-provision net revenue^1 (?PPNR?) of $87.3 million ? Adjusted PPNR^1 of $92.1 million, up 7.6% over second quarter of 2019Operating ? Noninterest expense of $120.2millionPerformance ? Adjusted noninterest expense^1 of $115.0million ? Efficiency ratio^1 of 56.29% ? Adjusted efficiency ratio^1 of 53.79%, a 552 basis point improvement ? End-of-period total loans^3 of $13,738.2million compared to $12,438.8million ? Paycheck Protection Program Loans (PPP) amounted to $1,462.8 million at the end of JuneLoans and ? Second-quarter total commercial production, excluding PPP loans,Credit of $658.5millionQuality ? Provision for credit losses of $22.5million ? June 30 pipeline of $2.7billion ? Net charge-offs of $0.5 million, or 0.02% annualized, compared to net charge-offs of $6.5 million ? Non-performing loans of 1.04% of total loans compared to 1.16% ? Return on average common equity of 7.27%Return ? Return on average tangible common equity^1 of 12.41%Profile & ? Adjusted return on average tangible common equity^1 of 13.18%Capital ? No shares of common stock were repurchased during the current quarter Notable ? $4.9 million in ONB Way chargesItems ? $0.3 million in tax credit amortization

1 Non-GAAP financial measure that Management believes is useful in evaluating the financial results of the Company please refer to the Non GAAP reconciliations contained in this release2 Comparisons are on a linked-quarter basis, unless otherwise noted3 Includes loans held for sale

THE ONB WAY, OLD NATIONAL'S STRATEGIC PLAN, CONTINUES WITH TECHNOLOGY PARTNERSHIP

In a press release dated July 10, 2020, Old National announced a strategic technology partnership with Infosys, one of the world's foremost information technology companies. This partnership will enable faster adoption of digital solutions, modernize Old National's existing technology infrastructure and enhance both the employee and client experience.

RESULTS OF OPERATIONS

Old National Bancorp reported second quarter 2020 net income of $51.7 million, or $0.32 per diluted share.

Included in the second quarter were pre-tax charges of $5.0 million for ONB Way. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $55.1 million, or $0.33 per diluted share.

LOANSStrong PPP volume drove total loan balances higher.

-- Period-end total loans were $13,738.2million at June30, 2020, compared to $12,438.8million at March 31, 2020. Driving the large increase was $1,462.8 million in outstanding PPP loan balances at June 30, 2020. -- Commercial and industrial loans increased $1,260.9million to $4,307.5million as a result of strong PPP loan production. -- Commercial real estate loans increased $119.9million to $5,403.3million, or 9.1% annualized growth. -- Consumer loans decreased $51.1 million to $1,675.6million and residential mortgage loans decreased $98.6million to $2,229.3million. -- Commercial loan production in the second quarter, excluding PPP loan production, was $658.5million; period-end pipeline totaled $2.7billion. -- Average total loans in the second quarter were $13,450.1 million, an increase of $1,257.7million from the first quarter of 2020.

DEPOSITSA low-cost core deposit franchise continues to be one of Old Nationals strengths.

-- Period-end total deposits were $16,319.4million at June30, 2020, compared to $14,305.4 million at March 31, 2020. PPP funds and higher client savings rates drove the increase in deposit balances. -- On average, total deposits in the second quarter were $15,652.8million, compared to $14,327.8million in the first quarter of 2020.

NET INTEREST INCOME AND MARGINNet interest income higher on net PPP loan fees while net interest margin is lower with decline in accretion income and impact of 1% PPP loan coupon.

-- Net interest income increased to $145.6 million in the second quarter of 2020 from $143.8million in the first quarter of 2020. -- The net interest margin on a fully taxable equivalent basis decreased 17 basis points to 3.14% compared to 3.31% in the first quarter of 2020. -- PPP interest and net fees combined to have a positive impact of $6.6 million to net interest income in the second quarter while the low 1% coupon rate negatively impacted net interest margin by 5 basis points. -- Accretion income was $5.8 million, or 12 basis points of net interest margin, in the second quarter of 2020 compared to $6.7million, or 15 basis points of net interest margin, in the first quarter of 2020. In the second quarter of 2020, accretion income was 2.8% of adjusted total revenue. -- Interest collected on nonaccrual loans was $0.6million, or 1 basis point of net interest margin, in the second quarter of 2020 compared to $0.7million, or 1 basis point of net interest margin, in the first quarter of 2020. -- The cost of total deposits declined 17 basis points to 0.17% in the second quarter of 2020 while the cost of total interest-bearing deposits decreased 23 basis points to 0.25%.

CREDIT QUALITYStrong credit quality remains a hallmark of the Old National franchise.

-- Provision for credit losses was $22.5 million in the second quarter of 2020, compared to $16.9 million in the first quarter, and continues to be impacted by an economic forecast that includes the impact of novel coronavirus pandemic. -- Net charge-offs in the second quarter were $0.5 million, or 0.02% of total average loans, and 30-89 day delinquencies of 0.16%. -- Non-performing loans decreased as a percentage of total loans to 1.04%. -- Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of June30, 2020, the remaining discount on these acquired loans was $61.5 million. -- The allowance for credit losses was $128.4 million, or 0.94% of total loans at June30, 2020.

NONINTEREST INCOMENoninterest income increased due to strong mortgage banking revenue and an increase in capital markets income.

-- Total noninterest income for the second quarter of 2020 was $58.5 million, an increase of $1.0million from the first quarter of 2020. -- Mortgage banking revenue increased $6.2million and capital markets income increased $1.9million when compared to the first quarter of 2020 while service charges on deposit accounts decreased $2.5 million and investment product fees decreased $1.0 million.

NONINTEREST EXPENSESecond quarter results demonstrate benefit of The ONB Way, helping drive positive operating leverage1.

-- Noninterest expense for the second quarter of 2020 was $120.2million and included $4.9 million in ONB Way charges and $0.3 million in tax credit amortization. -- Excluding these items, adjusted noninterest expense for the second quarter was $115.0million, compared to the $122.0million in adjusted noninterest expense in the first quarter of 2020. -- The second quarter efficiency ratio was 56.29%, while the adjusted efficiency ratio was 53.79%. -- Adjusted operating leverage1 was +576 basis points for the second quarter of 2020 as compared to the second quarter of 2019.

INCOME TAXES

-- On a fully taxable-equivalent basis, income tax expense in the second quarter was $13.1 million, resulting in a 20.2% FTE tax rate. -- Income tax expense included $0.3 million in tax credit benefit.

CAPITAL AND LIQUIDITYCapital ratios remain strong.

-- At the end of the second quarter, total risk-based capital was 12.68% and regulatory tier 1 capital was 11.70%. -- Tangible common equity to tangible assets was 8.45% at the end of the second quarter compared to 8.81% in the first quarter of 2020. -- The Company did not repurchase any shares of common stock during the second quarter. -- A low loan to deposit ratio of 84.2%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.

NON-GAAP RECONCILIATIONS

($ in millions, except EPS, shares in 2Q20 Adjustments^4 Adjusted000s) 2Q20Total Revenues (FTE) $ 207.5 $ (0.4 ) $ 207.1 Less: Provision for Credit Losses (22.5 ) ? (22.5 )Less: Noninterest Expenses (120.2 ) 4.9 (115.3 )Income before Income Taxes (FTE) $ 64.8 $ 4.5 $ 69.3 Income Taxes (13.1 ) (1.1 ) (14.2 )Net Income $ 51.7 $ 3.4 $ 55.1 Average Shares Outstanding 165,302 ? 165,302 Earnings Per Share - Diluted $ 0.32 $ 0.01 $ 0.33

4 Tax-effect calculations use the current statutory FTE tax rates (federal + state)

($ in millions) 2Q20 1Q20Net Interest Income $ 145.6 $ 143.8 Add: FTE Adjustment 3.4 3.3 Net Interest Income (FTE) $ 149.0 $ 147.1 Average Earning Assets $ 19,007.7 $ 17,774.0 Net Interest Margin (FTE) 3.14 % 3.31 % ($ in millions) 2Q20 2Q19Net Interest Income $ 145.6 $ 155.2 Add: FTE Adjustment 3.4 3.3 Net Interest Income (FTE) $ 149.0 $ 158.5 Add: Total Noninterest Income 58.5 51.2 Less: Noninterest Expense 120.2 128.1 Pre-Provision Net Revenue $ 87.3 $ 81.6 Less: Debt Securities Gains (0.5 ) (1.2 )Add: Loss on Branch Actions 0.1 ? Add: ONB Way Charges 4.9 1.4 Add: Merger and Integration Charges ? 3.2 Add: Amortization of Tax Credit Investments 0.3 0.6 Adjusted Pre-Provision Net Revenue $ 92.1 $ 85.6

($ in millions) 2Q20 1Q20 2Q19Noninterest Expense $ 120.2 $ 158.7 $ 128.1 Less: ONB Way Charges (4.9 ) (31.2 ) (1.4 )Less: Merger and Integration Charges ? ? (3.2 )Noninterest Expense less Charges $ 115.3 $ 127.5 $ 123.5 Less: Amortization of Tax Credit Investments (0.3 ) (5.5 ) (0.6 )Adjusted Noninterest Expense $ 115.0 $ 122.0 $ 122.9 Less: Intangible Amortization (3.6 ) (3.8 ) (4.3 )Adjusted Noninterest Expense Less Intangible $ 111.4 $ 118.2 $ 118.6 AmortizationNet Interest Income $ 145.6 $ 143.8 $ 155.2 FTE Adjustment 3.4 3.3 3.3 Net Interest Income (FTE) $ 149.0 $ 147.1 $ 158.5 Total Noninterest Income 58.5 57.5 51.2 Total Revenue (FTE) 207.5 204.6 209.7 Less: Debt Securities Gains/Losses (0.5 ) (5.2 ) (1.2 )Add: Loss on Branch Actions 0.1 ? ? Adjusted Total Revenue (FTE) 207.1 199.4 208.5 Efficiency Ratio 56.29 % 77.71 % 59.35 %Adjusted Efficiency Ratio 53.79 % 59.31 % 56.85 %Operating Leverage^5 (basis points) 518 Adjusted Operating Leverage^6 (basis points) 576

5 Year-over-year basis point change in noninterest expenses plus change in total revenue6 Year-over-year basis point change in adjusted noninterest expense plus change in adjusted total revenue

($ in millions) 2Q20 1Q20Net Income $ 51.7 $ 22.6 Add: Intangible Amortization (net of tax^7) 2.7 2.9 Tangible Net Income $ 54.4 $ 25.5 Less: Securities Gains/Losses (net of tax^7) (0.4 ) (3.9 )Add: Loss on Branch Actions (net of tax^7) 0.1 ? Add: ONB Way Charges (net of tax^7) 3.7 23.4 Adjusted Tangible Net Income $ 57.8 $ 45.0 Average Total Shareholders? Equity 2,845.4 2,833.5 Less: Average Goodwill (1,037.0 ) (1,037.0 )Less: Average Intangibles (54.4 ) (58.1 )Average Tangible Shareholders? Equity $ 1,754.0 $ 1,738.4 Return on Average Tangible Common Equity 12.41 % 5.86 %Adjusted Return on Average Tangible Common Equity 13.18 % 10.35 %

7Tax-effect calculations use the current statutory FTE tax rates (federal + state)

CONFERENCE CALL AND WEBCASTOld National will host a conference call and live webcast at 8:00 a.m. Central Time on Monday, July 20, 2020, to review second-quarter 2020 financial results. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Companys 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 11:00 a.m. Central Time on July 20 through August 2. To access the replay, dial 1-855-859-2056, Conference ID Code 7973414.

ABOUT OLD NATIONALOld National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $22.1 billion in assets, it ranks among the top 100 banking companies in the U.S. and has been recognized as a Worlds Most Ethical Company by the Ethisphere Institute for nine consecutive years.Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships and keeping our clients at the center of all we do. This is an approach to business that we call The ONB Way. Today, Old Nationals footprint includes Indiana, Kentucky, Michigan, Wisconsin and Minnesota. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.

USE OF NON-GAAP FINANCIAL MEASURESThis earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old Nationals 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 the tables of this release.

FORWARD-LOOKING STATEMENTThis 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 Bancorps (Old Nationals) 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 managements current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties, such as statements about the potential impacts of the COVID-19 pandemic. 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: the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses and governments responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers businesses; market, economic, operational, liquidity, credit and interest rate risks associated with Old Nationals business(including developments and volatility arising from the COVID-19 pandemic); 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, including the anticipated impact from the ONB Way strategic plan that may differ from current estimates; 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, including the impact of the new CECL standard as well as changes to address the impact of COVID-19; 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.

Financial Highlights (unaudited)($ and shares in thousands, except per share data) Three Months Ended Six Months Ended June 30, March 31 June 30, June 30, June 30, 2020 2020 2019 2020 2019Income StatementNet interest $ 145,671 $ 143,771 $ 155,230 $ 289,442 $ 302,278 incomeTax equivalent 3,367 3,323 3,289 6,690 6,487 adjustment (1)Net interestincome - tax 149,038 147,094 158,519 296,132 308,765 equivalentbasisProvision forloan losses 22,545 16,950 1,003 39,495 2,046 (4)Noninterest 58,461 57,502 51,214 115,963 97,630 incomeNoninterest 120,121 158,744 128,118 278,865 251,159 expenseNet income 51,705 22,640 62,964 74,345 119,240 Per Common Share DataWeightedaverage 165,302 168,404 173,675 166,848 174,531 diluted sharesNet income $ 0.32 $ 0.13 $ 0.36 $ 0.45 $ 0.68 (diluted)Cash dividends 0.14 0.14 0.13 0.28 0.26 Commondividend 44 % 108 % 35 % 62 % 38 %payout ratio(2)Book value $ 17.35 $ 17.10 $ 16.28 $ 17.35 $ 16.28 Stock price 13.76 13.19 16.59 13.76 16.59 Tangiblecommon book 10.75 10.48 9.86 10.75 9.86 value (3) Performance RatiosReturn on 0.96 % 0.44 % 1.26 % 0.71 % 1.20 %average assetsReturn onaverage common 7.27 % 3.20 % 9.13 % 5.24 % 8.72 %equityReturn ontangible 12.27 % 5.89 % 15.59 % 9.01 % 14.82 %common equity(3)Return onaveragetangible 12.41 % 5.86 % 16.04 % 9.15 % 15.47 %common equity(3)Net interest 3.14 % 3.31 % 3.66 % 3.22 % 3.59 %margin (FTE)Efficiency 56.29 % 77.71 % 59.35 % 66.80 % 59.79 %ratio (5)Netcharge-offs(recoveries) 0.02 % 0.21 % 0.01 % 0.11 % 0.02 %to averageloansAllowance forloan losses to 0.94 % 0.86 % 0.47 % 0.94 % 0.47 %ending loans(4)Non-performingloans to 1.04 % 1.16 % 1.34 % 1.04 % 1.34 %ending loans Balance Sheet (EOP)Total loans $ 13,615,701 $ 12,384,612 $ 12,046,578 $ 13,615,701 $ 12,046,578 Total assets 22,102,188 20,741,141 20,145,285 22,102,188 20,145,285 Total deposits 16,319,446 14,305,362 14,363,101 16,319,446 14,363,101 Total borrowed 2,641,436 3,245,214 2,726,481 2,641,436 2,726,481 fundsTotalshareholders' 2,864,255 2,823,435 2,803,139 2,864,255 2,803,139 equity Capital Ratios (3)Risk-basedcapital ratios (EOP):Tier 1 common 11.70 % 11.40 % 11.89 % 11.70 % 11.89 %equityTier 1 11.70 % 11.40 % 11.89 % 11.70 % 11.89 %Total 12.68 % 12.28 % 12.82 % 12.68 % 12.82 %Leverage ratio(to average 8.12 % 8.46 % 8.82 % 8.12 % 8.82 %assets) Total equityto assets 13.16 % 13.91 % 13.82 % 13.53 % 13.76 %(averages)Tangiblecommon equity 8.45 % 8.81 % 8.92 % 8.45 % 8.92 %to tangibleassets Nonfinancial DataFull-timeequivalent 2,530 2,736 2,829 2,530 2,829 employeesBanking 162 192 192 162 192 centers (1) Calculated using the federal statutory tax rate in effect of 21% for allperiods.(2) Cash dividends per share divided by net income per share (basic).(3) Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures"table for reconciliations to GAAP financial measures.(4) Beginning January 1, 2020, calculation is based on current expected lossmethodology. Prior to January 1, 2020, calculation was based on incurred lossmethodology.(5) Efficiency ratio is defined as noninterest expense before amortization ofintangibles as a percent of FTE net interest income andnoninterest revenues,excluding net gains from debt securities transactions. This presentationexcludes amortization of intangiblesand net debt securities gains, as iscommon in other company releases, and better aligns with true operatingperformance.FTE - Fully taxable equivalent basis EOP - End of period actual balancesN/A - Not applicable

Income Statement (unaudited)($ and shares in thousands, except per share data) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019Interest $ 161,974 $ 167,999 $ 189,063 $ 329,973 $ 367,981 incomeLess:interest 16,303 24,228 33,833 40,531 65,703 expenseNet interest 145,671 143,771 155,230 289,442 302,278 incomeProvision forloan losses 22,545 16,950 1,003 39,495 2,046 (1)Net interestincome after 123,126 126,821 154,227 249,947 300,232 provision forloan losses Wealthmanagement 9,424 8,884 9,909 18,308 18,444 feesServicecharges on 7,582 10,077 11,515 17,659 22,341 depositaccountsDebit card 4,832 4,998 5,419 9,830 10,922 and ATM feesMortgagebanking 17,313 11,119 7,135 28,432 12,146 revenueInvestment 4,845 5,874 5,591 10,719 10,862 product feesCapitalmarkets 6,179 4,328 3,150 10,507 5,667 incomeCompany-ownedlife 2,968 3,080 2,711 6,048 5,899 insuranceOther income 4,807 3,968 4,619 8,775 10,287 Gains(losses) on 511 5,174 1,165 5,685 1,062 sales of debtsecuritiesTotalnoninterest 58,461 57,502 51,214 115,963 97,630 income Salaries andemployee 66,556 79,173 71,566 145,729 142,749 benefitsOccupancy 13,245 15,133 14,559 28,378 29,137 Equipment 3,853 5,305 4,517 9,158 8,991 Marketing 2,395 3,097 4,439 5,492 8,162 Data 9,629 9,467 10,207 19,096 19,548 processingCommunication 2,296 2,798 2,849 5,094 5,903 Professional 3,545 4,293 4,921 7,838 7,831 feesFDIC 2,014 1,609 1,454 3,623 3,541 assessmentAmortizationof 3,612 3,776 4,325 7,388 8,797 intangiblesAmortizationof tax credit 287 5,515 568 5,802 828 investmentsOther expense 12,689 28,578 8,713 41,267 15,672 Totalnoninterest 120,121 158,744 128,118 278,865 251,159 expense Income before 61,466 25,579 77,323 87,045 146,703 income taxesIncome tax 9,761 2,939 14,359 12,700 27,463 expenseNet income $ 51,705 $ 22,640 $ 62,964 $ 74,345 $ 119,240 DilutedEarnings Per ShareNet income $ 0.32 $ 0.13 $ 0.36 $ 0.45 $ 0.68 AverageCommon Shares OutstandingBasic 164,732 167,748 172,985 166,240 173,855 Diluted 165,302 168,404 173,675 166,848 174,531 Common sharesoutstanding 165,093 165,109 172,231 165,093 172,231 at end ofperiod (1) Beginning January 1, 2020, calculation is based on current expected lossmethodology. Prior to January 1, 2020, calculation wasbased on incurred lossmethodology.

Balance Sheet (unaudited)($ in thousands)

June 30, March 31, June 30, 2020 2020 2019Assets Federal Reserve Bank $ 54,807 $ 130,295 $ 40,945 accountMoney market investments 14,633 9,349 20,210 Investments: Treasury andgovernment-sponsored 489,232 530,904 725,327 agenciesMortgage-backed 3,304,054 3,210,000 2,900,235 securitiesStates and political 1,355,959 1,302,395 1,186,311 subdivisionsOther securities 512,375 497,709 489,855 Total investments 5,661,620 5,541,008 5,301,728 Loans held for sale, at 122,507 54,209 37,904 fair valueLoans: Commercial 4,307,505 3,046,579 3,074,849 Commercial and 5,403,316 5,283,464 4,993,693 agriculture real estateConsumer: Home equity 547,286 561,789 553,991 Other consumer loans 1,128,296 1,164,929 1,201,847 Subtotal of commercial 11,386,403 10,056,761 9,824,380 and consumer loansResidential real estate 2,229,298 2,327,851 2,222,198 Total loans 13,615,701 12,384,612 12,046,578 Total earning assets 19,469,268 18,119,473 17,447,365 Allowance for loan losses (128,394 ) (106,380 ) (56,292 )(1)Non-earning Assets: Cash and due from banks 241,054 203,533 239,831 Premises and equipment, 462,796 462,364 493,481 netOperating lease 80,400 86,819 106,222 right-of-use assetsGoodwill and other 1,089,711 1,093,323 1,104,478 intangible assetsCompany-owned life 453,116 450,148 445,749 insuranceOther assets 434,237 431,861 364,451 Total non-earning assets 2,761,314 2,728,048 2,754,212 Total assets $ 22,102,188 $ 20,741,141 $ 20,145,285 Liabilities and Equity Noninterest-bearing $ 5,217,678 $ 4,058,559 $ 3,771,888 demand depositsInterest-bearing: Checking and NOW accounts 4,567,046 4,105,006 3,950,161 Savings accounts 3,166,680 2,853,305 2,877,673 Money market accounts 1,895,809 1,746,798 1,819,716 Other time deposits 1,321,499 1,469,185 1,756,814 Total core deposits 16,168,712 14,232,853 14,176,252 Brokered CD's 150,734 72,509 186,849 Total deposits 16,319,446 14,305,362 14,363,101 Federal funds purchased 801 560,770 410,036 and interbank borrowingsSecurities sold under 367,744 318,067 334,540 agreements to repurchaseFederal Home Loan Bank 2,035,014 2,130,263 1,730,065 advancesOther borrowings 237,877 236,114 251,840 Total borrowed funds 2,641,436 3,245,214 2,726,481 Operating lease 91,845 95,830 110,596 liabilitiesAccrued expenses and 185,206 271,300 141,968 other liabilitiesTotal liabilities 19,237,933 17,917,706 17,342,146 Common stock, surplus, 2,715,212 2,685,278 2,761,102 and retained earningsAccumulated othercomprehensive income 149,043 138,157 42,037 (loss), net of taxTotal shareholders' 2,864,255 2,823,435 2,803,139 equityTotal liabilities and $ 22,102,188 $ 20,741,141 $ 20,145,285 shareholders' equity(1) Beginning January 1, 2020, calculation is based on current expected lossmethodology. Prior to January 1, 2020,calculation was based on incurred lossmethodology.

Average Balance Sheet and Interest Rates (unaudited)($ in thousands) Three Months Ended Three Months Ended Three Months Ended June 30, 2020 March 31, 2020 June 30, 2019 Average Income (1)/ Yield/ Average Income (1)/ Yield/ Average Income (1)/ Yield/Earning Assets: Balance Expense Rate Balance Expense Rate Balance Expense RateMoney market andother interest-earninginvestments $ 85,680 $ 34 0.16 % $ 58,406 $ 349 2.41 % $ 58,321 $ 334 2.29 %Investments: Treasury andgovernment-sponsored 501,838 3,033 2.42 % 583,971 3,697 2.53 % 695,775 4,301 2.47 %agenciesMortgage-backed 3,179,165 17,930 2.26 % 3,171,650 19,065 2.40 % 2,767,791 18,799 2.72 %securitiesStates and political 1,293,756 11,757 3.63 % 1,273,156 11,409 3.58 % 1,193,176 11,235 3.77 %subdivisionsOther securities 497,204 3,224 2.59 % 494,500 3,216 2.60 % 496,631 4,063 3.27 %Total investments 5,471,963 35,944 2.63 % 5,523,277 37,387 2.71 % 5,153,373 38,398 2.98 %Loans: (2) Commercial 4,049,403 31,729 3.10 % 2,907,297 29,053 3.95 % 3,063,590 37,828 4.88 %Commercial andagriculture real 5,340,622 58,007 4.30 % 5,188,597 62,439 4.76 % 5,019,859 72,214 5.69 %estateConsumer: Home equity 554,701 4,213 3.06 % 558,356 5,631 4.06 % 558,223 7,390 5.31 %Other consumer loans 1,135,943 11,530 4.08 % 1,167,802 12,219 4.21 % 1,201,752 12,408 4.14 %Subtotal commercial 11,080,669 105,479 3.83 % 9,822,052 109,342 4.48 % 9,843,424 129,840 5.29 %and consumer loansResidential real 2,369,407 23,884 4.03 % 2,370,295 24,244 4.09 % 2,247,570 23,780 4.23 %estate loans Total loans 13,450,076 129,363 3.82 % 12,192,347 133,586 4.35 % 12,090,994 153,620 5.05 % Total earning assets $ 19,007,719 $ 165,341 3.46 % $ 17,774,030 $ 171,322 3.84 % $ 17,302,688 $ 192,352 4.43 % Less: Allowance for (107,619 ) (83,244 ) (56,632 ) loan losses (3) Non-earning Assets: Cash and due from $ 332,745 $ 287,601 $ 234,337 banksOther assets 2,384,934 2,388,092 2,473,255 Total assets $ 21,617,779 $ 20,366,479 $ 19,953,648 Interest-Bearing Liabilities:Checking and NOW $ 4,431,074 $ 1,075 0.10 % $ 4,104,778 $ 2,860 0.28 % $ 3,895,881 $ 4,196 0.43 %accountsSavings accounts 3,060,012 736 0.10 % 2,828,177 1,298 0.18 % 2,879,704 2,145 0.30 %Money market 1,844,488 910 0.20 % 1,784,169 2,507 0.57 % 1,789,777 3,729 0.84 %accountsOther time deposits 1,378,115 3,786 1.10 % 1,562,074 5,186 1.34 % 1,779,770 7,181 1.62 %Totalinterest-bearing 10,713,689 6,507 0.24 % 10,279,198 11,851 0.46 % 10,345,132 17,251 0.67 %depositsBrokered CD's 68,149 291 1.72 % 84,099 447 2.14 % 212,198 1,268 2.40 %Totalinterest-bearing 10,781,838 6,798 0.25 % 10,363,297 12,298 0.48 % 10,557,330 18,519 0.70 %deposits and CD's Federal fundspurchased and 143,811 44 0.12 % 392,857 1,240 1.27 % 300,810 1,817 2.42 %interbank borrowingsSecurities soldunder agreements to 350,545 185 0.21 % 329,091 384 0.47 % 331,695 671 0.81 %repurchaseFederal Home Loan 2,144,497 6,844 1.28 % 1,965,130 7,768 1.59 % 1,695,681 10,039 2.37 %Bank advancesOther borrowings 251,738 2,432 3.87 % 240,276 2,538 4.23 % 251,577 2,787 4.43 %Total borrowed funds 2,890,591 9,505 1.32 % 2,927,354 11,930 1.64 % 2,579,763 15,314 2.38 % Totalinterest-bearing 13,672,429 16,303 0.48 % 13,290,651 24,228 0.73 % 13,137,093 33,833 1.03 %liabilities Noninterest-BearingLiabilities and Shareholders' EquityDemand deposits $ 4,871,002 $ 3,964,493 $ 3,812,175 Other liabilities 228,950 277,812 246,134 Shareholders' equity 2,845,398 2,833,523 2,758,246 Total liabilitiesand shareholders' $ 21,617,779 $ 20,366,479 $ 19,953,648 equity Net interest rate 2.98 % 3.11 % 3.40 %spread Net interest margin 3.14 % 3.31 % 3.66 %(FTE) FTE adjustment $ 3,367 $ 3,323 $ 3,289 (1) Interest income is reflected on a fully taxable equivalent basis (FTE).(2) Includes loans held for sale.(3) Beginning January 1, 2020, calculation is based on current expected lossmethodology. Prior to January 1, 2020, calculation was based on incurred lossmethodology.

Average Balance Sheet and Interest Rates (unaudited)($ in thousands) Six Months Ended Six Months Ended June 30, 2020 June 30, 2019 Average Income (1)/ Yield/ Average Income (1)/ Yield/Earning Assets: Balance Expense Rate Balance Expense RateMoney market andother interest-earninginvestments $ 72,043 $ 383 1.07 % $ 58,510 $ 612 2.11 %Investments: Treasury andgovernment-sponsored 542,904 6,730 2.48 % 700,569 8,203 2.34 %agenciesMortgage-backed 3,175,408 36,996 2.33 % 2,633,326 36,402 2.76 %securitiesStates and political 1,283,456 23,165 3.61 % 1,212,658 22,688 3.74 %subdivisionsOther securities 495,852 6,440 2.60 % 497,115 8,503 3.42 %Total investments $ 5,497,620 $ 73,331 2.67 % $ 5,043,668 $ 75,796 3.01 %Loans: (2) Commercial 3,478,351 60,782 3.46 % 3,092,833 73,863 4.75 %Commercial andagriculture real 5,264,610 120,446 4.53 % 5,004,824 137,290 5.46 %estateConsumer: Home equity 556,528 9,845 3.56 % 573,211 14,987 5.27 %Other consumer loans 1,151,871 23,748 4.15 % 1,197,150 24,208 4.08 %Subtotal commercial 10,451,360 214,821 4.13 % 9,868,018 250,348 5.12 %and consumer loansResidential real 2,369,852 48,128 4.06 % 2,253,375 47,712 4.23 %estate loans Total loans 12,821,212 262,949 4.07 % 12,121,393 298,060 4.91 % Total earning assets $ 18,390,875 $ 336,663 3.64 % $ 17,223,571 $ 374,468 4.34 % Less: Allowance for (95,432 ) (56,213 ) loan losses (3) Non-earning Assets: Cash and due from $ 310,173 $ 232,159 banksOther assets 2,386,513 2,481,842 Total assets $ 20,992,129 $ 19,881,359 Interest-Bearing Liabilities:Checking and NOW $ 4,267,926 $ 3,934 0.19 % $ 3,795,441 $ 7,338 0.39 %accountsSavings accounts 2,944,094 2,034 0.14 % 2,907,552 4,428 0.31 %Money market 1,814,328 3,417 0.38 % 1,746,456 6,555 0.76 %accountsOther time deposits 1,470,094 8,972 1.23 % 1,809,975 14,283 1.59 %Totalinterest-bearing 10,496,442 18,357 0.35 % 10,259,424 32,604 0.64 %depositsBrokered CD's 76,124 739 1.95 % 201,878 2,359 2.36 %Totalinterest-bearing 10,572,566 19,096 0.36 % 10,461,302 34,963 0.67 %deposits and CD's Federal fundspurchased and 268,334 1,284 0.96 % 308,860 3,735 2.44 %interbank borrowingsSecurities soldunder agreements to 339,818 569 0.34 % 346,396 1,333 0.78 %repurchaseFederal Home Loan 2,054,814 14,612 1.43 % 1,684,093 19,970 2.39 %Bank advancesOther borrowings 246,007 4,970 4.04 % 250,690 5,702 4.55 %Total borrowed funds 2,908,973 21,435 1.48 % 2,590,039 30,740 2.39 % Totalinterest-bearing 13,481,539 40,531 0.60 % 13,051,341 65,703 1.02 %liabilities Noninterest-BearingLiabilities and Shareholders' EquityDemand deposits $ 4,417,748 $ 3,829,406 Other liabilities 253,382 264,274 Shareholders' equity 2,839,460 2,736,338 Total liabilitiesand shareholders' $ 20,992,129 $ 19,881,359 equity Net interest rate 3.04 % 3.32 %spread Net interest margin 3.22 % 3.59 %(FTE) FTE adjustment $ 6,690 $ 6,487 (1) Interest income is reflected on a fully taxable equivalent basis (FTE).(2) Includes loans held for sale.(3) Beginning January 1, 2020, calculation is based on current expected lossmethodology. Prior to January 1, 2020, calculation was based on incurred lossmethodology.

Asset Quality (EOP) (unaudited)($ in thousands) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 Beginningallowance for $ 106,380 $ 54,619 $ 55,559 $ 54,619 $ 55,461 loan lossesImpact ofadopting ASC 326 ? 41,347 N/A 41,347 N/A on 1/1/2020 (1) Provision for 22,545 16,950 1,003 39,495 2,046 loan losses (1) Gross (2,232 ) (8,445 ) (2,876 ) (10,677 ) (5,769 )charge-offsGross recoveries 1,701 1,909 2,606 3,610 4,554 Net(charge-offs) (531 ) (6,536 ) (270 ) (7,067 ) (1,215 )recoveries Ending allowancefor loan losses $ 128,394 $ 106,380 $ 56,292 $ 128,394 $ 56,292 (1) Net charge-offs(recoveries) / 0.02 % 0.21 % 0.01 % 0.11 % 0.02 %average loans(2) Average loans $ 13,435,260 $ 12,182,704 $ 12,083,609 $ 12,808,982 $ 12,115,408 outstanding (2) EOP loans 13,615,701 12,384,612 12,046,578 13,615,701 12,046,578 outstanding (2) Allowance forloan losses / 0.94 % 0.86 % 0.47 % 0.94 % 0.47 %EOP loans (1)(2) Underperforming Assets:Loans 90 Daysand over (still $ 779 $ 658 $ 423 $ 779 $ 423 accruing) Non-performing loans:Nonaccrual loans 125,546 126,987 142,421 125,546 142,421 (3)TDRs still 16,582 17,040 19,031 16,582 19,031 accruingTotalnon-performing 142,128 144,027 161,452 142,128 161,452 loans Foreclosed 1,786 2,163 2,819 1,786 2,819 properties Totalunderperforming $ 144,693 $ 146,848 $ 164,694 $ 144,693 $ 164,694 assets Classified andCriticized Assets:Nonaccrual loans 125,546 126,987 142,421 125,546 142,421 (3)Substandard 192,433 181,157 174,728 192,433 174,728 accruing loansLoans 90 daysand over (still 779 658 423 779 423 accruing)Total classifiedloans - "problem $ 318,758 $ 308,802 $ 317,572 $ 318,758 $ 317,572 loans" Other classified 2,565 2,616 2,550 2,565 2,550 assetsCriticized loans- "special 220,300 238,011 220,455 220,300 220,455 mention loans" Total classifiedand criticized $ 541,623 $ 549,429 $ 540,577 $ 541,623 $ 540,577 assets Non-performingloans / EOP 1.04 % 1.16 % 1.34 % 1.04 % 1.34 %loans (2) Allowance tonon-performing 90 % 74 % 35 % 90 % 35 %loans (1)(4) Under-performingassets / EOP 1.06 % 1.19 % 1.37 % 1.06 % 1.37 %loans (2) EOP total assets $ 22,102,188 $ 20,741,141 $ 20,145,285 $ 22,102,188 $ 20,145,285 Under-performingassets / EOP 0.65 % 0.71 % 0.82 % 0.65 % 0.82 %assets EOP - End ofperiod actual balances(1) Beginning January 1, 2020, calculation is based on current expected lossmethodology. Prior to January 1, 2020, calculation was based on incurred lossmethodology.(2) Excludes loans held for sale.(3) Includes TDRs totaling $11.3 million at June 30, 2020, $11.8 million atMarch 31, 2020, and $24.7 million at June 30, 2019.(4) Includes acquired loans that were recorded at fair value in accordance withASC 805 at the date of acquisition. As such, the credit riskwas incorporatedin the fair value recorded and no allowance for loan losses was recorded for2019 quarter ends.

Non-GAAP Measures (unaudited)($ in thousands) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 Actual End ofPeriod BalancesGAAPshareholders' $ 2,864,255 $ 2,823,435 $ 2,803,139 $ 2,864,255 $ 2,803,139 equity Deduct: Goodwill 1,036,994 1,036,994 1,036,258 1,036,994 1,036,258 Intangibles 52,717 56,329 68,220 52,717 68,220 1,089,711 1,093,323 1,104,478 1,089,711 1,104,478 Tangibleshareholders' $ 1,774,544 $ 1,730,112 $ 1,698,661 $ 1,774,544 $ 1,698,661 equity Average BalancesGAAPshareholders' $ 2,845,398 $ 2,833,523 $ 2,758,246 $ 2,839,460 $ 2,736,338 equity Deduct: Goodwill 1,036,994 1,036,994 1,036,258 1,036,994 1,036,258 Intangibles 54,449 58,127 70,282 56,288 72,554 1,091,443 1,095,121 1,106,540 1,093,282 1,108,812 Averagetangible $ 1,753,955 $ 1,738,402 $ 1,651,706 $ 1,746,178 $ 1,627,526 shareholders'equity Actual End ofPeriod BalancesGAAP assets $ 22,102,188 $ 20,741,141 $ 20,145,285 $ 22,102,188 $ 20,145,285 Add: Trust 15 119 29 15 29 overdrafts Deduct: Goodwill 1,036,994 1,036,994 1,036,258 1,036,994 1,036,258 Intangibles 52,717 56,329 68,220 52,717 68,220 1,089,711 1,093,323 1,104,478 1,089,711 1,104,478 Tangible $ 21,012,492 $ 19,647,937 $ 19,040,836 $ 21,012,492 $ 19,040,836 assets Risk-weighted $ 14,416,184 $ 14,420,130 $ 13,996,770 $ 14,416,184 $ 13,996,770 assets GAAP net $ 51,705 $ 22,640 $ 62,964 $ 74,345 $ 119,240 income Add: Amortizationof 2,708 2,849 3,262 5,557 6,635 intangibles(net of tax) Tangible net $ 54,413 $ 25,489 $ 66,226 $ 79,902 $ 125,875 income Tangible RatiosReturn ontangible 12.27 % 5.89 % 15.59 % 9.01 % 14.82 %common equityReturn onaverage 12.41 % 5.86 % 16.04 % 9.15 % 15.47 %tangiblecommon equityReturn ontangible 1.04 % 0.52 % 1.39 % 0.76 % 1.32 %assetsTangiblecommon equity 8.45 % 8.81 % 8.92 % 8.45 % 8.92 %to tangibleassetsTangiblecommon equityto 12.31 % 12.00 % 12.14 % 12.31 % 12.14 %risk-weightedassetsTangiblecommon book 10.75 10.48 9.86 10.75 9.86 value (1) Tangible common equity presentation includes other comprehensive income as iscommon in other company releases.(1) Tangible common shareholders' equity divided by common shares issued andoutstanding at period-end. Tier 1 $ 1,686,714 $ 1,643,249 $ 1,664,277 $ 1,686,714 $ 1,664,277 capital Risk-weighted 14,416,184 14,420,130 13,996,770 14,416,184 13,996,770 assets Tier 1 commonequity to 11.70 % 11.40 % 11.89 % 11.70 % 11.89 %risk-weightedassets

Media: Kathy A. Schoettlin (812) 465-7269Investors: Lynell J. Walton (812) 464-1366