Old National Bancorp (NASDAQ: ONB) reports 4Q21 net income of $56.2 million, diluted EPS of $0.34.
|
Adjusted1 net income of $60.9 million, or $0.37 per diluted share.
|
Full-year net income of $277.5 million, or $1.67 per diluted share. |
Adjusted1 net income of $286.5 million, or$1.73 per diluted share.
|
"Old National's 4th quarter capped off a year of record earnings driven by robust commercial loan growth, strong credit quality and well controlled expenses," said Chairman and CEO Jim Ryan. "I'm particularly pleased that we achieved these strong results while also working steadily to remain on-task to complete our anticipated merger with First Midwest Bank - which also enjoyed strong 4th quarter and full-year 2021 results."
|
Net income |
•Net income of $56.2 million
|
•Earnings per diluted share of $0.34
| |
Net interest income/NIM |
•Net interest income on a fully taxable equivalent basis of $150.2 million compared to $155.1 million
|
•Net interest margin on a fully taxable equivalent basis of 2.77% compared to 2.92%
| |
Operating Performance |
•Pre-provision net revenue1 ("PPNR") of $69.8 million
|
•Adjusted PPNR1 of $78.1 million
| |
•Noninterest expense of $131.9 million
| |
•Adjusted noninterest expense1 of $123.2 million
| |
•Efficiency ratio1 of 64.27%
| |
•Adjusted efficiency ratio1 of 59.95%
| |
Loans and Credit Quality |
•End-of-period total loans3 of $13,637.3 million compared to $13,636.1 million
|
◦Total commercial loans increased $162.5 million, excluding the $185.9 million decrease in PPP loans
| |
•Fourth-quarter total commercial production of $1.1 billion
| |
•Provision for credit losses was a recapture of $1.9 million
| |
•December 31 pipeline of $2.5 billion
| |
•Net recoveries of $1.4 million compared to net recoveries of $3.0 million
| |
•Non-performing loans of 0.92% of total loans compared to 0.94%
| |
Return Profile & Capital |
•Return on average common equity of 7.49%
|
•Return on average tangible common equity1 of 12.07%
| |
•Adjusted return on average tangible common equity1 of 13.04%
| |
•No shares of common stock were repurchased during the current quarter
| |
Notable Items |
•$2.0 million in tax credit amortization
|
•$6.7 million in merger-related charges
|
($ in millions, except EPS, shares in 000s) |
4Q21
|
Adjustments4
|
Adjusted 4Q21
| |||
Total Revenues (FTE) | $ | 201.7 | $ | (0.4) | $ | 201.3 |
Less: Provision for Credit Losses | 1.9 | - | 1.9 | |||
Less: Noninterest Expenses | (131.9) | 6.7 | (125.2) | |||
Income before Income Taxes (FTE) | $ | 71.7 | $ | 6.3 | $ | 78.0 |
Income Taxes (FTE) | (15.5) | (1.6) | (17.1) | |||
Net Income | $ | 56.2 | $ | 4.7 | $ | 60.9 |
Average Shares Outstanding | 166,128 | - | 166,128 | |||
Earnings Per Share - Diluted | $ | 0.34 | $ | 0.03 | $ | 0.37 |
($ in millions, except EPS, shares in 000s) | 2021 |
Adjustments4
|
Adjusted 2021
| |||
Total Revenues (FTE) | $ | 824.5 | $ | (4.3) | $ | 820.2 |
Less: Provision for Credit Losses | 28.8 | - | 28.8 | |||
Less: Noninterest Expenses | (500.5) | 16.5 | (484.0) | |||
Income before Income Taxes (FTE) | $ | 352.8 | $ | 12.2 | $ | 365.0 |
Income Taxes (FTE) | (75.3) | (3.2) | (78.5) | |||
Net Income | $ | 277.5 | $ | 9.0 | $ | 286.5 |
Average Shares Outstanding | 165,929 | - | 165,929 | |||
Earnings Per Share - Diluted | $ | 1.67 | $ | 0.06 | $ | 1.73 |
($ in millions) |
4Q21
|
3Q21
| ||
Net Interest Income | $ | 146.8 | $ | 151.6 |
Add: FTE Adjustment | 3.4 | 3.5 | ||
Net Interest Income (FTE) | $ | 150.2 | $ | 155.1 |
Average Earning Assets | $ | 21,670.7 | $ | 21,228.6 |
Net Interest Margin (FTE) | 2.77 | % | 2.92 | % |
($ in millions) |
4Q21
|
4Q20
| ||
Net Interest Income | $ | 146.8 | $ | 161.1 |
Add: FTE Adjustment | 3.4 | 3.5 | ||
Net Interest Income (FTE) | $ | 150.2 | $ | 164.6 |
Add: Total Noninterest Income | 51.5 | 58.5 | ||
Less: Noninterest Expense | 131.9 | 142.3 | ||
Pre-Provision Net Revenue | $ | 69.8 | $ | 80.8 |
Less: Debt Securities Gains/Losses | (0.4) | (0.2) | ||
Less: Gain on Branch Actions | - | (0.1) | ||
Add: Merger-Related Charges | 6.7 | - | ||
Add: ONB Way Charges | - | 3.6 | ||
Add: Amortization of Tax Credit Investments | 2.0 | 9.9 | ||
Adjusted Pre-Provision Net Revenue | $ | 78.1 | $ | 94.0 |
($ in millions) |
4Q21
|
3Q21
|
4Q20
|
2021
|
2020
| |||||
Noninterest Expense | $ | 131.9 | $ | 121.3 | $ | 142.3 | $ | 500.5 | $ | 541.4 |
Less: ONB Way Charges | - | - | (3.6) | (1.9) | (42.6) | |||||
Less: Merger-Related Charges | (6.7) | (1.4) | - | (14.6) | - | |||||
Noninterest Expense less Charges | $ | 125.2 | $ | 119.9 | $ | 138.7 | $ | 484.0 | $ | 498.8 |
Less: Amortization of Tax Credit Investments | (2.0) | (1.7) | (9.9) | (6.7) | (18.8) | |||||
Adjusted Noninterest Expense | $ | 123.2 | $ | 118.2 | $ | 128.8 | $ | 477.3 | $ | 480.0 |
Less: Intangible Amortization | (2.6) | (2.8) | (3.3) | (11.4) | (14.1) | |||||
Adjusted Noninterest Expense Less Intangible Amortization | $ | 120.6 | $ | 115.4 | $ | 125.5 | $ | 465.9 | $ | 465.9 |
Net Interest Income | $ | 146.8 | $ | 151.6 | $ | 161.1 | $ | 596.4 | $ | 596.1 |
FTE Adjustment | 3.4 | 3.5 | 3.5 | 13.9 | 13.6 | |||||
Net Interest Income (FTE) | $ | 150.2 | $ | 155.1 | $ | 164.6 | $ | 610.3 | $ | 609.7 |
Total Noninterest Income | 51.5 | 54.5 | 58.5 | 214.2 | 239.2 | |||||
Total Revenue (FTE) | $ | 201.7 | $ | 209.6 | $ | 223.1 | $ | 824.5 | $ | 848.9 |
Less: Debt Securities Gains/Losses | (0.4) | (1.2) | (0.2) | (4.3) | (10.8) | |||||
Less: Gain on Branch Actions | - | - | (0.1) | - | - | |||||
Adjusted Total Revenue (FTE) | $ | 201.3 | $ | 208.4 | $ | 222.8 | $ | 820.2 | $ | 838.1 |
Efficiency Ratio | 64.27 | % | 56.86 | % | 62.37 | % | 59.65 | % | 62.91 | % |
Adjusted Efficiency Ratio | 59.95 | % | 55.38 | % | 56.35 | % | 56.80 | % | 55.59 | % |
($ in millions) |
4Q21
|
3Q21
| ||
Net Income | $ | 56.2 | $ | 71.7 |
Add: Intangible Amortization (net of tax5)
| 1.9 | 2.1 | ||
Tangible Net Income | $ | 58.1 | $ | 73.8 |
Less: Securities Gains/Losses (net of tax5)
| (0.3) | (0.9) | ||
Add: Merger-Related Charges (net of tax5)
| 5.0 | 1.1 | ||
Adjusted Tangible Net Income | $ | 62.8 | $ | 74.0 |
Average Total Shareholders' Equity | 2,998.8 | 3,027.9 | ||
Less: Average Goodwill | (1,037.0) | (1,037.0) | ||
Less: Average Intangibles | (36.0) | (38.6) | ||
Average Tangible Shareholders' Equity | $ | 1,925.8 | $ | 1,952.3 |
Return on Average Tangible Common Equity | 12.07 | % | 15.13 | % |
Adjusted Return on Average Tangible Common Equity | 13.04 | % | 15.16 | % |
Financial Highlights (unaudited) | ||||||||||
($ and shares in thousands, except per share data) | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
2021 | 2021 | 2020 | 2021 | 2020 | ||||||
Income Statement | ||||||||||
Net interest income | $ | 146,781 | $ | 151,572 | $ | 161,079 | $ | 596,400 | $ | 596,094 |
Tax equivalent adjustment (1) | 3,442 | 3,501 | 3,517 | 13,913 | 13,586 | |||||
Net interest income - tax equivalent basis | 150,223 | 155,073 | 164,596 | 610,313 | 609,680 | |||||
Provision for credit losses | (1,914) | (4,613) | (1,100) | (28,812) | 38,395 | |||||
Noninterest income | 51,484 | 54,515 | 58,552 | 214,219 | 239,274 | |||||
Noninterest expense | 131,937 | 121,274 | 142,318 | 500,569 | 541,417 | |||||
Net income | 56,188 | 71,746 | 74,120 | 277,538 | 226,409 | |||||
Per Common Share Data | ||||||||||
Weighted average diluted shares | 166,128 | 165,939 | 165,631 | 165,929 | 166,177 | |||||
Net income (diluted) | $ | 0.34 | $ | 0.43 | $ | 0.44 | $ | 1.67 | $ | 1.36 |
Cash dividends | 0.14 | 0.14 | 0.14 | 0.56 | 0.56 | |||||
Common dividend payout ratio (2) | 41 | % | 33 | % | 31 | % | 33 | % | 41 | % |
Book value | $ | 18.16 | $ | 18.31 | $ | 17.98 | $ | 18.16 | $ | 17.98 |
Stock price | 18.12 | 16.95 | 16.56 | 18.12 | 16.56 | |||||
Tangible common book value (3) | 11.70 | 11.83 | 11.43 | 11.70 | 11.43 | |||||
Performance Ratios | ||||||||||
Return on average assets | 0.93 | % | 1.20 | % | 1.30 | % | 1.17 | % | 1.04 | % |
Return on average common equity | 7.49 | % | 9.48 | % | 10.11 | % | 9.26 | % | 7.87 | % |
Return on tangible common equity (3) | 11.98 | % | 15.05 | % | 16.20 | % | 14.74 | % | 12.54 | % |
Return on average tangible common equity (3) | 12.07 | % | 15.13 | % | 16.57 | % | 14.89 | % | 13.27 | % |
Net interest margin (FTE) | 2.77 | % | 2.92 | % | 3.26 | % | 2.89 | % | 3.18 | % |
Efficiency ratio (4) | 64.27 | % | 56.86 | % | 62.37 | % | 59.65 | % | 62.91 | % |
Net charge-offs (recoveries) to average loans | (0.04) | % | (0.09) | % | (0.03) | % | (0.03) | % | 0.02 | % |
Allowance for credit losses to ending loans | 0.79 | % | 0.79 | % | 0.95 | % | 0.79 | % | 0.95 | % |
Non-performing loans to ending loans | 0.92 | % | 0.94 | % | 1.20 | % | 0.92 | % | 1.20 | % |
Balance Sheet (EOP) | ||||||||||
Total loans | $ | 13,601,846 | $ | 13,584,828 | $ | 13,786,479 | $ | 13,601,846 | $ | 13,786,479 |
Total assets | 24,453,564 | 24,018,733 | 22,960,622 | 24,453,564 | 22,960,622 | |||||
Total deposits | 18,569,195 | 18,196,149 | 17,037,453 | 18,569,195 | 17,037,453 | |||||
Total borrowed funds | 2,575,240 | 2,536,303 | 2,676,554 | 2,575,240 | 2,676,554 | |||||
Total shareholders' equity | 3,012,018 | 3,035,892 | 2,972,656 | 3,012,018 | 2,972,656 | |||||
Capital Ratios (3) | ||||||||||
Risk-based capital ratios (EOP): | ||||||||||
Tier 1 common equity | 12.04 | % | 12.08 | % | 11.75 | % | 12.04 | % | 11.75 | % |
Tier 1 | 12.04 | % | 12.08 | % | 11.75 | % | 12.04 | % | 11.75 | % |
Total | 12.77 | % | 12.84 | % | 12.69 | % | 12.77 | % | 12.69 | % |
Leverage ratio (to average assets) | 8.59 | % | 8.54 | % | 8.20 | % | 8.59 | % | 8.20 | % |
Total equity to assets (averages) | 12.35 | % | 12.69 | % | 12.83 | % | 12.60 | % | 13.20 | % |
Tangible common equity to tangible assets | 8.30 | % | 8.55 | % | 8.64 | % | 8.30 | % | 8.64 | % |
Nonfinancial Data | ||||||||||
Full-time equivalent employees | 2,374 | 2,410 | 2,445 | 2,374 | 2,445 | |||||
Banking centers | 162 | 162 | 162 | 162 | 162 | |||||
(1) Calculated using the federal statutory tax rate in effect of 21% for all periods. | ||||||||||
(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. | ||||||||||
December 31, 2021 capital ratios are preliminary. | ||||||||||
(4) 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 debt securities transactions. This presentation excludes amortization of intangibles | ||||||||||
and net debt 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 |
Income Statement (unaudited) | ||||||||||
($ and shares in thousands, except per share data) | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
2021 | 2021 | 2020 | 2021 | 2020 | ||||||
Interest income | $ | 156,928 | $ | 162,026 | $ | 173,249 | $ | 638,649 | $ | 663,308 |
Less: interest expense | 10,147 | 10,454 | 12,170 | 42,249 | 67,214 | |||||
Net interest income | 146,781 | 151,572 | 161,079 | 596,400 | 596,094 | |||||
Provision for credit losses | (1,914) | (4,613) | (1,100) | (28,812) | 38,395 | |||||
Net interest income after provision for credit losses | 148,695 | 156,185 | 162,179 | 625,212 | 557,699 | |||||
Wealth management fees | 9,833 | 10,134 | 9,259 | 40,409 | 36,806 | |||||
Service charges on deposit accounts | 9,121 | 8,926 | 8,724 | 34,685 | 35,081 | |||||
Debit card and ATM fees | 5,071 | 4,942 | 5,072 | 20,739 | 20,178 | |||||
Mortgage banking revenue | 7,336 | 10,870 | 16,233 | 42,558 | 62,775 | |||||
Investment product fees | 6,258 | 6,475 | 5,544 | 24,639 | 21,614 | |||||
Capital markets income | 6,394 | 6,017 | 6,545 | 21,997 | 22,480 | |||||
Company-owned life insurance | 2,737 | 2,355 | 3,153 | 10,589 | 12,031 | |||||
Other income | 4,299 | 3,589 | 3,861 | 14,276 | 17,542 | |||||
Gains (losses) on sales of debt securities | 435 | 1,207 | 161 | 4,327 | 10,767 | |||||
Total noninterest income | 51,484 | 54,515 | 58,552 | 214,219 | 239,274 | |||||
Salaries and employee benefits | 72,336 | 71,005 | 78,001 | 284,098 | 293,590 | |||||
Occupancy | 13,151 | 12,757 | 13,008 | 54,834 | 55,316 | |||||
Equipment | 4,473 | 3,756 | 3,778 | 16,704 | 16,690 | |||||
Marketing | 4,723 | 3,267 | 3,242 | 12,684 | 10,874 | |||||
Data processing | 11,489 | 11,508 | 12,362 | 47,047 | 41,086 | |||||
Communication | 2,412 | 2,372 | 2,396 | 10,073 | 9,731 | |||||
Professional fees | 5,409 | 3,416 | 4,834 | 20,077 | 15,755 | |||||
FDIC assessment | 1,598 | 1,628 | 1,780 | 6,059 | 6,722 | |||||
Amortization of intangibles | 2,573 | 2,779 | 3,244 | 11,336 | 14,091 | |||||
Amortization of tax credit investments | 2,019 | 1,736 | 9,871 | 6,770 | 18,788 | |||||
Other expense | 11,754 | 7,050 | 9,802 | 30,887 | 58,774 | |||||
Total noninterest expense | 131,937 | 121,274 | 142,318 | 500,569 | 541,417 | |||||
Income before income taxes | 68,242 | 89,426 | 78,413 | 338,862 | 255,556 | |||||
Income tax expense | 12,054 | 17,680 | 4,293 | 61,324 | 29,147 | |||||
Net income | $ | 56,188 | $ | 71,746 | $ | 74,120 | $ | 277,538 | $ | 226,409 |
Diluted Earnings Per Share | ||||||||||
Net income | $ | 0.34 | $ | 0.43 | $ | 0.44 | $ | 1.67 | $ | 1.36 |
Average Common Shares Outstanding | ||||||||||
Basic | 165,278 | 165,258 | 164,799 | 165,178 | 165,509 | |||||
Diluted | 166,128 | 165,939 | 165,631 | 165,929 | 166,177 | |||||
Common shares outstanding at end of period | 165,838 | 165,814 | 165,367 | 165,838 | 165,367 | |||||
Balance Sheet (unaudited) | ||||||
($ in thousands) | ||||||
December 31, | September 30, | December 31, | ||||
2021 | 2021 | 2020 | ||||
Assets | ||||||
Federal Reserve Bank account | $ | 627,354 | $ | 600,581 | $ | 307,967 |
Money market investments | 22,002 | 16,294 | 13,537 | |||
Investments: | ||||||
Treasury and government-sponsored agencies | 1,778,357 | 1,803,273 | 852,196 | |||
Mortgage-backed securities | 3,698,831 | 3,354,701 | 3,339,098 | |||
States and political subdivisions | 1,654,986 | 1,609,283 | 1,492,162 | |||
Other securities | 432,478 | 442,503 | 458,639 | |||
Total investments | 7,564,652 | 7,209,760 | 6,142,095 | |||
Loans held for sale, at fair value | 35,458 | 51,306 | 63,250 | |||
Loans: | ||||||
Commercial | 3,391,769 | 3,505,183 | 3,956,422 | |||
Commercial and agriculture real estate | 6,380,674 | 6,290,632 | 5,946,512 | |||
Consumer: | ||||||
Home equity | 560,590 | 554,322 | 556,414 | |||
Other consumer loans | 1,013,524 | 1,009,909 | 1,078,709 | |||
Subtotal of commercial and consumer loans | 11,346,557 | 11,360,046 | 11,538,057 | |||
Residential real estate | 2,255,289 | 2,224,782 | 2,248,422 | |||
Total loans | 13,601,846 | 13,584,828 | 13,786,479 | |||
Total earning assets | 21,851,312 | 21,462,769 | 20,313,328 | |||
Allowance for credit losses | (107,341) | (107,868) | (131,388) | |||
Non-earning Assets: | ||||||
Cash and due from banks | 172,663 | 180,583 | 268,208 | |||
Premises and equipment, net | 476,186 | 476,036 | 464,408 | |||
Operating lease right-of-use assets | 69,560 | 69,912 | 76,197 | |||
Goodwill and other intangible assets | 1,071,672 | 1,074,245 | 1,083,008 | |||
Company-owned life insurance | 463,324 | 461,310 | 456,110 | |||
Other assets | 456,188 | 401,746 | 430,751 | |||
Total non-earning assets | 2,709,593 | 2,663,832 | 2,778,682 | |||
Total assets | $ | 24,453,564 | $ | 24,018,733 | $ | 22,960,622 |
Liabilities and Equity | ||||||
Noninterest-bearing demand deposits | $ | 6,303,106 | $ | 6,440,526 | $ | 5,633,672 |
Interest-bearing: | ||||||
Checking and NOW accounts | 5,338,022 | 4,956,012 | 4,877,046 | |||
Savings accounts | 3,798,494 | 3,708,807 | 3,395,747 | |||
Money market accounts | 2,169,160 | 2,097,967 | 1,908,118 | |||
Other time deposits | 960,413 | 992,837 | 1,103,313 | |||
Total core deposits | 18,569,195 | 18,196,149 | 16,917,896 | |||
Brokered deposits | - | - | 119,557 | |||
Total deposits | 18,569,195 | 18,196,149 | 17,037,453 | |||
Federal funds purchased and interbank borrowings | 276 | 34 | 1,166 | |||
Securities sold under agreements to repurchase | 392,275 | 375,247 | 431,166 | |||
Federal Home Loan Bank advances | 1,886,019 | 1,890,054 | 1,991,435 | |||
Other borrowings | 296,670 | 270,968 | 252,787 | |||
Total borrowed funds | 2,575,240 | 2,536,303 | 2,676,554 | |||
Operating lease liabilities | 76,236 | 76,771 | 86,598 | |||
Accrued expenses and other liabilities | 220,875 | 173,618 | 187,361 | |||
Total liabilities | 21,441,546 | 20,982,841 | 19,987,966 | |||
Common stock, surplus, and retained earnings | 3,014,393 | 2,979,082 | 2,824,885 | |||
Accumulated other comprehensive income (loss), net of tax | (2,375) | 56,810 | 147,771 | |||
Total shareholders' equity | 3,012,018 | 3,035,892 | 2,972,656 | |||
Total liabilities and shareholders' equity | $ | 24,453,564 | $ | 24,018,733 | $ | 22,960,622 |
Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||||||||
($ in thousands) | ||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||
December 31, 2021 | September 30, 2021 | December 31, 2020 | ||||||||||||||||
Average | Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | ||||||||||
Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||
Money market and other interest-earning | ||||||||||||||||||
investments | $ | 726,144 | $ | 276 | 0.15 | % | $ | 467,572 | $ | 177 | 0.15 | % | $ | 413,782 | $ | 126 | 0.12 | % |
Investments: | ||||||||||||||||||
Treasury and government-sponsored agencies | 1,763,544 | 6,390 | 1.45 | % | 1,730,553 | 6,968 | 1.61 | % | 648,314 | 2,937 | 1.81 | % | ||||||
Mortgage-backed securities | 3,513,482 | 15,071 | 1.72 | % | 3,313,027 | 14,509 | 1.75 | % | 3,291,436 | 16,137 | 1.96 | % | ||||||
States and political subdivisions | 1,625,390 | 12,941 | 3.18 | % | 1,586,743 | 12,609 | 3.18 | % | 1,437,890 | 12,008 | 3.34 | % | ||||||
Other securities | 438,583 | 2,608 | 2.38 | % | 443,393 | 2,638 | 2.38 | % | 462,836 | 2,629 | 2.27 | % | ||||||
Total investments | 7,340,999 | 37,010 | 2.02 | % | 7,073,716 | 36,724 | 2.08 | % | 5,840,476 | 33,711 | 2.31 | % | ||||||
Loans: (2) | ||||||||||||||||||
Commercial | 3,420,274 | 31,641 | 3.62 | % | 3,645,197 | 36,139 | 3.88 | % | 4,132,831 | 46,468 | 4.40 | % | ||||||
Commercial and agriculture real estate | 6,341,296 | 57,347 | 3.54 | % | 6,200,144 | 57,820 | 3.65 | % | 5,829,912 | 58,334 | 3.92 | % | ||||||
Consumer: | ||||||||||||||||||
Home equity | 556,851 | 4,380 | 3.12 | % | 549,229 | 4,448 | 3.21 | % | 550,548 | 4,380 | 3.17 | % | ||||||
Other consumer loans | 1,009,690 | 9,488 | 3.73 | % | 1,018,385 | 9,690 | 3.77 | % | 1,099,504 | 11,276 | 4.08 | % | ||||||
Subtotal commercial and consumer loans | 11,328,111 | 102,856 | 3.60 | % | 11,412,955 | 108,097 | 3.76 | % | 11,612,795 | 120,458 | 4.13 | % | ||||||
Residential real estate loans | 2,275,469 | 20,228 | 3.56 | % | 2,274,347 | 20,529 | 3.61 | % | 2,314,938 | 22,471 | 3.88 | % | ||||||
Total loans | 13,603,580 | 123,084 | 3.56 | % | 13,687,302 | 128,626 | 3.70 | % | 13,927,733 | 142,929 | 4.04 | % | ||||||
Total earning assets | $ | 21,670,723 | $ | 160,370 | 2.93 | % | $ | 21,228,590 | $ | 165,527 | 3.08 | % | $ | 20,181,991 | $ | 176,766 | 3.46 | % |
Less: Allowance for credit losses | (107,990) | (111,216) | (137,539) | |||||||||||||||
Non-earning Assets: | ||||||||||||||||||
Cash and due from banks | $ | 228,126 | $ | 272,855 | $ | 341,154 | ||||||||||||
Other assets | 2,481,792 | 2,479,079 | 2,479,253 | |||||||||||||||
Total assets | $ | 24,272,651 | $ | 23,869,308 | $ | 22,864,859 | ||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||
Checking and NOW accounts | $ | 5,093,496 | $ | 458 | 0.04 | % | $ | 4,873,914 | $ | 484 | 0.04 | % | $ | 4,708,568 | $ | 629 | 0.05 | % |
Savings accounts | 3,766,543 | 524 | 0.06 | % | 3,678,944 | 500 | 0.05 | % | 3,329,494 | 487 | 0.06 | % | ||||||
Money market accounts | 2,139,702 | 456 | 0.08 | % | 2,110,981 | 438 | 0.08 | % | 1,932,594 | 445 | 0.09 | % | ||||||
Other time deposits | 978,723 | 1,047 | 0.42 | % | 998,060 | 1,156 | 0.46 | % | 1,158,715 | 2,189 | 0.75 | % | ||||||
Total interest-bearing core deposits | 11,978,464 | 2,485 | 0.08 | % | 11,661,899 | 2,578 | 0.09 | % | 11,129,371 | 3,750 | 0.13 | % | ||||||
Brokered deposits | - | - | 0.00 | % | - | - | 0.00 | % | 37,176 | 26 | 0.28 | % | ||||||
Total interest-bearing deposits | 11,978,464 | 2,485 | 0.08 | % | 11,661,899 | 2,578 | 0.09 | % | 11,166,547 | 3,776 | 0.13 | % | ||||||
Federal funds purchased and interbank borrowings | 1,162 | - | 0.00 | % | 689 | - | 0.00 | % | 843 | - | 0.03 | % | ||||||
Securities sold under agreements to repurchase | 381,744 | 92 | 0.10 | % | 384,724 | 90 | 0.09 | % | 438,272 | 125 | 0.11 | % | ||||||
Federal Home Loan Bank advances | 1,887,821 | 5,122 | 1.08 | % | 1,890,916 | 5,326 | 1.12 | % | 2,089,519 | 5,953 | 1.13 | % | ||||||
Other borrowings | 274,926 | 2,448 | 3.56 | % | 270,597 | 2,460 | 3.64 | % | 240,815 | 2,316 | 3.85 | % | ||||||
Total borrowed funds | 2,545,653 | 7,662 | 1.19 | % | 2,546,926 | 7,876 | 1.23 | % | 2,769,449 | 8,394 | 1.21 | % | ||||||
Total interest-bearing liabilities | $ | 14,524,117 | $ | 10,147 | 0.28 | % | $ | 14,208,825 | $ | 10,454 | 0.29 | % | $ | 13,935,996 | $ | 12,170 | 0.35 | % |
Noninterest-Bearing Liabilities and Shareholders' Equity | ||||||||||||||||||
Demand deposits | $ | 6,435,829 | $ | 6,314,100 | $ | 5,644,017 | ||||||||||||
Other liabilities | 313,880 | 318,448 | 352,256 | |||||||||||||||
Shareholders' equity | 2,998,825 | 3,027,935 | 2,932,590 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 24,272,651 | $ | 23,869,308 | $ | 22,864,859 | ||||||||||||
Net interest rate spread | 2.65 | % | 2.79 | % | 3.11 | % | ||||||||||||
Net interest margin (FTE) | 2.77 | % | 2.92 | % | 3.26 | % | ||||||||||||
FTE adjustment | $ | 3,442 | $ | 3,501 | $ | 3,517 | ||||||||||||
(1) Interest income is reflected on a fully taxable equivalent basis (FTE). | ||||||||||||||||||
(2) Includes loans held for sale. | ||||||||||||||||||
Average Balance Sheet and Interest Rates (unaudited) | ||||||||||||
($ in thousands) | ||||||||||||
Twelve Months Ended | Twelve Months Ended | |||||||||||
December 31, 2021 | December 31, 2020 | |||||||||||
Average | Income (1)/ | Yield/ | Average | Income (1)/ | Yield/ | |||||||
Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | ||||||
Money market and other interest-earning | ||||||||||||
investments | $ | 450,158 | $ | 589 | 0.13 | % | $ | 174,494 | $ | 568 | 0.33 | % |
Investments: | ||||||||||||
Treasury and government-sponsored agencies | 1,573,855 | 24,209 | 1.54 | % | 547,054 | 12,124 | 2.22 | % | ||||
Mortgage-backed securities | 3,356,950 | 60,479 | 1.80 | % | 3,246,520 | 70,611 | 2.17 | % | ||||
States and political subdivisions | 1,548,939 | 50,115 | 3.24 | % | 1,347,490 | 47,034 | 3.49 | % | ||||
Other securities | 443,606 | 10,680 | 2.41 | % | 485,430 | 11,990 | 2.47 | % | ||||
Total investments | $ | 6,923,350 | $ | 145,483 | 2.10 | % | $ | 5,626,494 | $ | 141,759 | 2.52 | % |
Loans: (2) | ||||||||||||
Commercial | 3,763,099 | 138,063 | 3.67 | % | 3,843,089 | 140,473 | 3.66 | % | ||||
Commercial and agriculture real estate | 6,168,146 | 228,568 | 3.71 | % | 5,477,562 | 234,670 | 4.28 | % | ||||
Consumer: | ||||||||||||
Home equity | 547,322 | 17,181 | 3.14 | % | 553,570 | 18,561 | 3.35 | % | ||||
Other consumer loans | 1,030,145 | 39,100 | 3.80 | % | 1,131,028 | 46,661 | 4.13 | % | ||||
Subtotal commercial and consumer loans | 11,508,712 | 422,912 | 3.67 | % | 11,005,249 | 440,365 | 4.00 | % | ||||
Residential real estate loans | 2,269,989 | 83,578 | 3.68 | % | 2,352,444 | 94,202 | 4.00 | % | ||||
Total loans | 13,778,701 | 506,490 | 3.68 | % | 13,357,693 | 534,567 | 4.00 | % | ||||
Total earning assets | $ | 21,152,209 | $ | 652,562 | 3.09 | % | $ | 19,158,681 | $ | 676,894 | 3.53 | % |
Less: Allowance for credit losses | (117,436) | (115,321) | ||||||||||
Non-earning Assets: | ||||||||||||
Cash and due from banks | $ | 256,860 | $ | 327,053 | ||||||||
Other assets | 2,492,054 | 2,414,602 | ||||||||||
Total assets | $ | 23,783,687 | $ | 21,785,015 | ||||||||
Interest-Bearing Liabilities: | ||||||||||||
Checking and NOW accounts | $ | 4,945,435 | $ | 2,065 | 0.04 | % | $ | 4,464,027 | $ | 5,449 | 0.12 | % |
Savings accounts | 3,648,019 | 2,003 | 0.05 | % | 3,113,435 | 3,156 | 0.10 | % | ||||
Money market accounts | 2,080,332 | 1,750 | 0.08 | % | 1,866,196 | 4,585 | 0.25 | % | ||||
Other time deposits | 1,020,359 | 5,105 | 0.50 | % | 1,337,269 | 14,013 | 1.05 | % | ||||
Total interest-bearing core deposits | 11,694,145 | 10,923 | 0.09 | % | 10,780,927 | 27,203 | 0.25 | % | ||||
Brokered deposits | 41,371 | 31 | 0.08 | % | 85,041 | 966 | 1.14 | % | ||||
Total interest-bearing deposits | 11,735,516 | 10,954 | 0.09 | % | 10,865,968 | 28,169 | 0.26 | % | ||||
Federal funds purchased and interbank borrowings | 1,113 | - | 0.00 | % | 138,257 | 1,296 | 0.94 | % | ||||
Securities sold under agreements to repurchase | 392,777 | 397 | 0.10 | % | 375,961 | 854 | 0.23 | % | ||||
Federal Home Loan Bank advances | 1,902,407 | 21,075 | 1.11 | % | 2,055,155 | 27,274 | 1.33 | % | ||||
Other borrowings | 269,484 | 9,823 | 3.65 | % | 242,642 | 9,621 | 3.96 | % | ||||
Total borrowed funds | 2,565,781 | 31,295 | 1.22 | % | 2,812,015 | 39,045 | 1.39 | % | ||||
Total interest-bearing liabilities | 14,301,297 | 42,249 | 0.30 | % | 13,677,983 | 67,214 | 0.49 | % | ||||
Noninterest-Bearing Liabilities and Shareholders' Equity | ||||||||||||
Demand deposits | $ | 6,163,937 | $ | 4,945,506 | ||||||||
Other liabilities | 320,933 | 286,066 | ||||||||||
Shareholders' equity | 2,997,520 | 2,875,460 | ||||||||||
Total liabilities and shareholders' equity | $ | 23,783,687 | $ | 21,785,015 | ||||||||
Net interest rate spread | 2.79 | % | 3.04 | % | ||||||||
Net interest margin (FTE) | 2.89 | % | 3.18 | % | ||||||||
FTE adjustment | $ | 13,913 | $ | 13,586 | ||||||||
(1) Interest income is reflected on a fully taxable equivalent basis (FTE). | ||||||||||||
(2) Includes loans held for sale. | ||||||||||||
Asset Quality (EOP) (unaudited) | ||||||||||
($ in thousands) | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
2021 | 2021 | 2020 | 2021 | 2020 | ||||||
Beginning allowance for credit losses | $ | 107,868 | $ | 109,444 | $ | 131,388 | $ | 131,388 | $ | 54,619 |
Impact of adopting ASC 326 on 01/01/2020 | - | - | - | - | 41,347 | |||||
Provision for credit losses | (1,914) | (4,613) | (1,100) | (28,812) | 38,395 | |||||
Gross charge-offs | (545) | (1,215) | (707) | (4,310) | (15,553) | |||||
Gross recoveries | 1,932 | 4,252 | 1,807 | 9,075 | 12,580 | |||||
Net (charge-offs) recoveries | 1,387 | 3,037 | 1,100 | 4,765 | (2,973) | |||||
Ending allowance for credit losses | $ | 107,341 | $ | 107,868 | $ | 131,388 | $ | 107,341 | $ | 131,388 |
Net charge-offs (recoveries) / average loans (1) | (0.04) | % | (0.09) | % | (0.03) | % | (0.03) | % | 0.02 | % |
Average loans outstanding (1) | $ | 13,594,543 | $ | 13,675,436 | $ | 13,910,145 | $ | 13,766,590 | $ | 13,341,677 |
EOP loans outstanding (1) | 13,601,846 | 13,584,828 | 13,786,479 | 13,601,846 | 13,786,479 | |||||
Allowance for credit losses / EOP loans (1) | 0.79 | % | 0.79 | % | 0.95 | % | 0.79 | % | 0.95 | % |
Underperforming Assets: | ||||||||||
Loans 90 Days and over (still accruing) | $ | 7 | $ | 113 | $ | 167 | $ | 7 | $ | 167 |
Non-performing loans: | ||||||||||
Nonaccrual loans (2) | 106,691 | 111,586 | 147,339 | 106,691 | 147,339 | |||||
TDRs still accruing | 18,378 | 16,420 | 17,749 | 18,378 | 17,749 | |||||
Total non-performing loans | 125,069 | 128,006 | 165,088 | 125,069 | 165,088 | |||||
Foreclosed properties | 2,030 | 1,943 | 1,324 | 2,030 | 1,324 | |||||
Total underperforming assets | $ | 127,106 | $ | 130,062 | $ | 166,579 | $ | 127,106 | $ | 166,579 |
Classified and Criticized Assets: | ||||||||||
Nonaccrual loans (2) | 106,691 | 111,586 | 147,339 | 106,691 | 147,339 | |||||
Substandard accruing loans | 162,572 | 164,192 | 157,276 | 162,572 | 157,276 | |||||
Loans 90 days and over (still accruing) | 7 | 113 | 167 | 7 | 167 | |||||
Total classified loans - "problem loans" | $ | 269,270 | $ | 275,891 | $ | 304,782 | $ | 269,270 | $ | 304,782 |
Other classified assets | 4,338 | 4,300 | 3,706 | 4,338 | 3,706 | |||||
Criticized loans - "special mention loans" | 235,910 | 240,215 | 287,192 | 235,910 | 287,192 | |||||
Total classified and criticized assets | $ | 509,518 | $ | 520,406 | $ | 595,680 | $ | 509,518 | $ | 595,680 |
Non-performing loans / EOP loans (1) | 0.92 | % | 0.94 | % | 1.20 | % | 0.92 | % | 1.20 | % |
Allowance to non-performing loans | 86 | % | 84 | % | 80 | % | 86 | % | 80 | % |
Under-performing assets / EOP loans (1) | 0.93 | % | 0.96 | % | 1.21 | % | 0.93 | % | 1.21 | % |
EOP total assets | $ | 24,453,564 | $ | 24,018,733 | $ | 22,960,622 | $ | 24,453,564 | $ | 22,960,622 |
Under-performing assets / EOP assets | 0.52 | % | 0.54 | % | 0.73 | % | 0.52 | % | 0.73 | % |
EOP - End of period actual balances | ||||||||||
(1) Excludes loans held for sale. | ||||||||||
(2) Includes non-accruing TDRs totaling $11.7 million at December 31, 2021, $12.8 million at September 30, 2021, and $14.9 million at December 30, 2020. | ||||||||||
Non-GAAP Measures (unaudited) | ||||||||||
($ in thousands) | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
2021 | 2021 | 2020 | 2021 | 2020 | ||||||
Actual End of Period Balances | ||||||||||
GAAP shareholders' equity | $ | 3,012,018 | $ | 3,035,892 | $ | 2,972,656 | $ | 3,012,018 | $ | 2,972,656 |
Deduct: | ||||||||||
Goodwill | 1,036,994 | 1,036,994 | 1,036,994 | 1,036,994 | 1,036,994 | |||||
Intangibles | 34,678 | 37,251 | 46,014 | 34,678 | 46,014 | |||||
1,071,672 | 1,074,245 | 1,083,008 | 1,071,672 | 1,083,008 | ||||||
Tangible shareholders' equity | $ | 1,940,346 | $ | 1,961,647 | $ | 1,889,648 | $ | 1,940,346 | $ | 1,889,648 |
Average Balances | ||||||||||
GAAP shareholders' equity | $ | 2,998,825 | $ | 3,027,935 | $ | 2,932,590 | $ | 2,997,520 | $ | 2,875,460 |
Deduct: | ||||||||||
Goodwill | 1,036,994 | 1,036,994 | 1,036,994 | 1,036,994 | 1,036,994 | |||||
Intangibles | 35,992 | 38,585 | 47,536 | 40,071 | 52,740 | |||||
1,072,986 | 1,075,579 | 1,084,530 | 1,077,065 | 1,089,734 | ||||||
Average tangible shareholders' equity | $ | 1,925,839 | $ | 1,952,356 | $ | 1,848,060 | $ | 1,920,455 | $ | 1,785,726 |
Actual End of Period Balances | ||||||||||
GAAP assets | $ | 24,453,564 | $ | 24,018,733 | $ | 22,960,622 | $ | 24,453,564 | $ | 22,960,622 |
Add: | ||||||||||
Trust overdrafts | - | 116 | 26 | - | 26 | |||||
Deduct: | ||||||||||
Goodwill | 1,036,994 | 1,036,994 | 1,036,994 | 1,036,994 | 1,036,994 | |||||
Intangibles | 34,678 | 37,251 | 46,014 | 34,678 | 46,014 | |||||
1,071,672 | 1,074,245 | 1,083,008 | 1,071,672 | 1,083,008 | ||||||
Tangible assets | $ | 23,381,892 | $ | 22,944,604 | $ | 21,877,640 | $ | 23,381,892 | $ | 21,877,640 |
Risk-weighted assets (2) | $ | 16,588,469 | $ | 16,227,070 | $ | 15,369,076 | $ | 16,588,469 | $ | 15,369,076 |
GAAP net income | $ | 56,188 | $ | 71,746 | $ | 74,120 | $ | 277,538 | $ | 226,409 |
Add: | ||||||||||
Amortization of intangibles (net of tax) | 1,930 | 2,084 | 2,433 | 8,502 | 10,585 | |||||
Tangible net income | $ | 58,118 | $ | 73,830 | $ | 76,553 | $ | 286,040 | $ | 236,994 |
Tangible Ratios | ||||||||||
Return on tangible common equity | 11.98 | % | 15.05 | % | 16.20 | % | 14.74 | % | 12.54 | % |
Return on average tangible common equity | 12.07 | % | 15.13 | % | 16.57 | % | 14.89 | % | 13.27 | % |
Return on tangible assets | 0.99 | % | 1.29 | % | 1.40 | % | 1.22 | % | 1.08 | % |
Tangible common equity to tangible assets | 8.30 | % | 8.55 | % | 8.64 | % | 8.30 | % | 8.64 | % |
Tangible common equity to risk-weighted assets (2) | 11.70 | % | 12.09 | % | 12.30 | % | 11.70 | % | 12.30 | % |
Tangible common book value (1) | 11.70 | 11.83 | 11.43 | 11.70 | 11.43 | |||||
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 common equity (2) | $ | 1,998,056 | $ | 1,960,340 | $ | 1,805,194 | $ | 1,998,056 | $ | 1,805,194 |
Risk-weighted assets (2) | 16,588,469 | 16,227,070 | 15,369,076 | 16,588,469 | 15,369,076 | |||||
Tier 1 common equity to risk-weighted assets (2) | 12.04 | % | 12.08 | % | 11.75 | % | 12.04 | % | 11.75 | % |
(2) December 31, 2021 figures are preliminary. | ||||||||||
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Old National Bancorp published this content on 18 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2022 13:04:03 UTC.