Old National Reports 24% EPS Growth from 2Q22, 11% on an Adjusted Basis(1), Driven by Robust Commercial Loan Growth and Net Interest Margin Expansion

EVANSVILLE, Ind., Oct. 25, 2022 (GLOBE NEWSWIRE) --

Old National Bancorp (NASDAQ: ONB) reports 3Q22 net income applicable to common shares of $136.1 million, diluted EPS of $0.47. Adjusted net income applicable to common shares1 of $150.4 million, adjusted diluted EPS of $0.51.

CEO COMMENTARY:

“With adjusted EPS growth of nearly 19%, year over year, and organic growth across most business lines, Old National once again demonstrated the strength of our expanded franchise,” said CEO Jim Ryan. “The improvement in our net interest margin and our continued strong credit, capital and efficiency metrics also reflect the strength of our franchise and Management's continuing focus on the fundamentals of our business."

THIRD QUARTER HIGHLIGHTS2:

Net Income	Net income applicable to common shares of $136.1 million; adjusted net income applicable to common shares1 of $150.4 million
	Earnings per diluted common share ("EPS") of $0.47; adjusted EPS1 of $0.51
Net Interest Income/NIM	Net interest income on a fully taxable equivalent basis1 of $381.5 million
	Net interest margin on a fully taxable equivalent basis1 ("NIM") of 3.71%, up 38 basis points ("bps")
Operating Performance	Pre-provision net revenue1 (“PPNR”) of $195.3 million; adjusted PPNR1 of $220.9 million
	Noninterest expense of $266.6 million; adjusted noninterest expense1 of $241.2 million
	Efficiency ratio1 of 56.2%; adjusted efficiency ratio1 of 50.7%
Loans and Credit Quality	End-of-period total loans3 of $30.5 billion, up 13.2% annualized compared to $29.6 billion at June 30, 2022
	º  Total commercial loans increased 16.6% annualized, excluding Paycheck Protection Program ("PPP") loans1
	º  Total consumer loans4 increased 7.1% annualized
	Total commercial production of $2.4 billion
	Commercial loan pipeline of $5.4 billion
	Provision for credit losses ("provision") of $11.3 million
	Net charge-offs of $7.6 million, or 10 bps of average loans; 2 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
	Non-performing loans of 0.81% of total loans
Return Profile & Capital	Return on average tangible common equity1 of 20.5%; adjusted return on average tangible common equity1 of 22.6%
Notable Items	$22.7 million of merger-related charges
	$2.7 million of amortization of tax credit investments

1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release 2 Comparisons are on a linked-quarter basis, unless otherwise noted      3 Includes loans held for sale 4 Includes consumer and residential real estate loans

RESULTS OF OPERATIONS

Old National Bancorp ("Old National") reported third quarter 2022 net income applicable to common shares of $136.1 million, or $0.47 per diluted common share.

Included in the third quarter were pre-tax charges of $22.7 million related to the February 15, 2022 merger with First Midwest. Excluding these charges and debt securities losses from the current quarter, adjusted net income was $150.4 million, or $0.51 per diluted common share.

LOANSRobust broad-based commercial and consumer loan growth.

• Period-end total loans3 were $30.5 billion at September 30, 2022, up 13.2% annualized from $29.6 billion at June 30, 2022, driven by strong commercial and consumer loan production.
• PPP loans decreased $38.1 million to $43.5 million at September 30, 2022, compared to June 30, 2022.
• Excluding PPP loans, total loans increased 13.7%, annualized, and total commercial loans increased 16.6%, annualized.
• Total commercial loan production in the third quarter was $2.4 billion; period-end commercial pipeline totaled $5.4 billion.
• Total consumer loans4 were $9.0 billion at September 30, 2022, up 7.1% annualized from June 30, 2022.
  • Consumer loans decreased $31.5 million, or 4.6% annualized, to $2.7 billion and residential mortgage loans grew $188.2 million, or 12.4% annualized, to $6.3 billion, driven by strong production.
• Average total loans in the third quarter were $29.9 billion, an increase of $1.0 billion from the second quarter of 2022.

DEPOSITSStrong deposit franchise with higher period-end balances.

• Period-end total deposits were $36.1 billion at September 30, 2022, compared to $35.5 billion at June 30, 2022.
• Increase in municipal deposits; commercial and retail deposits were stable.
• On average, total deposits for the third quarter were $35.8 billion, consistent with the second quarter of 2022.

NET INTEREST INCOME AND MARGINStrong loan growth and the higher rate environment favorably impact net interest income and margin.

• Net interest income on a fully taxable equivalent basis increased to $381.5 million in the third quarter of 2022 compared to $341.8 million in the second quarter of 2022, driven by higher interest rates, loan growth, and an additional day in the quarter, partially offset by lower accretion income on loans.
• Net interest margin on a fully taxable equivalent basis increased 38 bps to 3.71% compared to 3.33% for the second quarter of 2022.
• Accretion income on loans and borrowings was $25.4 million, or 25 bps of net interest margin, in the third quarter of 2022 compared to $35.0 million, or 34 bps of net interest margin, in the second quarter of 2022.
• Interest collected on nonaccrual loans was $1.2 million, or 1 bps of net interest margin, in the third quarter of 2022 compared to $3.2 million, or 3 bps of net interest margin, in the second quarter of 2022.
• Cost of total deposits was 0.12%, increasing 6 bps and the cost of total interest-bearing deposits increased 9 bps to 0.18% in the third quarter of 2022.

CREDIT QUALITYStrong credit quality continues to be a hallmark of the Old National franchise.

• Provision expense in the third quarter of 2022 was $11.3 million, compared to $9.2 million in the second quarter of 2022, reflecting strong loan growth.
• Net charge-offs in the third quarter were $7.6 million, or 10 bps of average loans compared to net charge-offs of $1.8 million in the second quarter of 2022, or 2 bps of average loans.
  • Net charge-offs include $5.9 million, or 8 bps of average loans, of charge-offs on PCD loans that had an allowance for credit losses established at acquisition.
• 30+ day delinquencies were 0.22% at the end of the third quarter, compared to 0.17% at the end of the second quarter.
• Non-performing loans as a percentage of total loans were 0.81% compared to 0.78% at the end of the second quarter of 2022.
• Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of September 30, 2022, the remaining discount on these acquired loans was $112 million.
• The allowance for credit losses stood at $302.3 million, or 0.99% of total loans at September 30, 2022, compared to 0.97% at June 30, 2022.

NONINTEREST INCOMEDecrease driven by lower wealth management revenue and other income.

• Total noninterest income for the third quarter of 2022 was $80.4 million, a decrease of $8.7 million from the second quarter of 2022.
• Wealth management fees were lower due to current market conditions and mortgage banking revenue continues to be impacted by the higher rate environment, as well as lower production and gain on sale margins.
• Other income for the second quarter of 2022 was elevated primarily due to equity investment returns and recoveries on previously charged-off acquired loans in addition to increased proceeds from company-owned life insurance.

NONINTEREST EXPENSEDisciplined expense management; efficiency ratio improved.

• Noninterest expense for the third quarter of 2022 was $266.6 million and included $22.7 million of merger-related charges, as well as $2.7 million of tax credit amortization.
• Excluding these items, adjusted noninterest expense for the third quarter was $241.3 million, compared to $239.3 million in the second quarter of 2022, up due primarily to approximately $7 million of lower deferred loan origination costs and year-to-date incentive accrual true-up, as well as $4 million of provision for unfunded commitments due to loan growth and higher marketing expense.
• The third quarter efficiency ratio was 56.2%, while the adjusted efficiency ratio was 50.7% for the third quarter of 2022 compared to 62.7% and 53.9%, respectively, for the second quarter of 2022.

INCOME TAXES

• On a fully taxable equivalent basis, income tax expense in the third quarter was $43.8 million, resulting in a 23.8% FTE tax rate, compared to 20.3% in the second quarter of 2022, reflective of higher pre-tax net income.
• Income tax expense included $3.1 million of tax credit benefit.

CAPITAL AND LIQUIDITYCapital ratios remain strong.

• Preliminary total risk-based capital was 11.84% and preliminary regulatory Tier 1 capital was 10.58%, impacted by strong loan growth, partly offset by retained earnings. In addition, total risk-based capital was impacted by the phase-out of $30 million of Tier 2 subordinated debt.
• Tangible common equity to tangible assets was 5.82% at the end of the third quarter compared to 6.20% in the second quarter of 2022, driven by the higher rate environment's impact on unrealized losses within the investment portfolio.
• The Company did not repurchase any shares of common stock during the quarter.
• A loan to deposit ratio of 84.7%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.

WEALTH MARKET EXPANSIONOld National has recently expanded into the Nashville, Tennessee area with the hiring of seven wealth management professionals. The experienced team, with an average tenure of over 20 years in wealth/investment services, will be led by Steve Cook, who will serve as Market President. This group will lead and operate a new wealth management office under the 1834 brand, which is the new high-net-worth brand of the Old National Wealth Group.

HEALTH SAVINGS ACCOUNTS SALEAs previously disclosed on June 27, 2022, Old National Bank, a wholly-owned subsidiary of Old National Bancorp, entered into a Custodial Transfer and Asset Purchase Agreement with UMB Bank, n.a. (“UMB”), pursuant to which UMB will acquire Old National Bank’s business of acting as a qualified custodian for, and administering, health savings accounts. Old National Bank serves as custodian for health savings accounts comprised of both investment accounts and deposit accounts. Upon completion of the sale, UMB will pay Old National a premium on deposit account balances transferred at closing, or a premium of approximately $95 million based on September 30, 2022 balances. Regulatory approval for the sale has been received. Subject to customary closing conditions, the parties anticipate completing the sale in mid-November of 2022.

SERVICE CHARGE PROGRAM ENHANCEMENTSIn early December, Old National will implement several enhancements to overdraft protection programs to provide clients with more flexibility. The changes will include the elimination of the non-sufficient fund ("NSF") fee when an item is returned, among other modifications that will benefit the consumer.

CONFERENCE CALL AND WEBCASTOld National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, October 25, 2022, to review third quarter 2022 financial results. The live audio webcast link and 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. To listen to the live conference call, dial U.S. (844) 200-6205 or International (929) 526-1599, Access code 504244. A replay of the call will also be available from noon Central Time on October 25, 2022 through November 8, 2022. To access the replay, dial U.S. (866) 813-9403 or international +44 (204) 525-0658, Access code 902394.

ABOUT OLD NATIONALOld National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the sixth largest commercial bank headquartered in the Midwest. With approximately $46 billion of assets and $27 billion of assets under management, Old National ranks among the top 35 banking companies based in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for eleven consecutive years.  Since its founding in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients and in the communities it serves. 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 MEASURESThe Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. 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.

The Company presents EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity, all adjusted for certain notable items. These items include the CECL Day 1 non-PCD provision expense, merger related charges associated with completed acquisitions, ONB Way charges, and net securities gains. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger related charges and the CECL Day 1 non-PCD provision expense from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

The Company presents loans excluding PPP loans. Management believes that excluding PPP loans is useful as it facilitates better comparability between periods. PPP loans are fully guaranteed by the Small Business Administration and are expected to be forgiven if the applicable criteria are met. Additionally, management believes excluding PPP loans from this item may enhance comparability for peer comparison.

Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes pre-provision net revenues, adjusted may be useful in assessing the Company's underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The Company presents adjusted noninterest expense, which excludes merger related charges, ONB Way charges and amortization of tax credit investments. Management believes that excluding these items from noninterest expense may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.

Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the previously provided tables and the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.

FORWARD-LOOKING STATEMENTSThis communication 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’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of the words "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "should," and "will," 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. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: the continued impact of the COVID-19 pandemic on our business as well as the business of our customers; competition; government legislation, regulations and policies; ability of Old National to execute its business plan, including the completion of the integration related to the merger between Old National and First Midwest and the achievement of the synergies and other benefits from the merger; changes in economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2021 and other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results or performance, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

CONTACTS:
Media: Kathy Schoettlin		Investors: Lynell Walton
(812) 465-7269		(812) 464-1366
Kathy.Schoettlin@oldnational.com		Lynell.Walton@oldnational.com

Financial Highlights (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended																Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2022			2022			2022			2021			2021				2022			2021
Income Statement
Net interest income	$	376,589		$	337,472		$	222,785		$	146,781		$	151,572			$	936,846		$	449,619
FTE adjustment1		4,950			4,314			3,772			3,442			3,501				13,036			10,471
Net interest income - tax equivalent basis		381,539			341,786			226,557			150,223			155,073				949,882			460,090
Provision for credit losses		11,287			9,245			97,569			(1,914	)		(4,613	)			118,101			(26,898	)
Noninterest income		80,385			89,117			65,240			51,484			54,515				234,742			162,735
Noninterest expense		(266,647	)		(277,395	)		(226,756	)		(131,937	)		(121,274	)			(770,798	)		(368,632	)
Net income (loss) available to common shareholders	$	136,119		$	110,952		$	(29,603	)	$	56,188		$	71,746			$	217,468		$	221,350
Per Common Share Data
Weighted average diluted shares		292,483			291,881			227,002			166,128			165,939				271,123			165,862
EPS, diluted	$	0.47		$	0.38		$	(0.13	)	$	0.34		$	0.43			$	0.80		$	1.33
Cash dividends		0.14			0.14			0.14			0.14			0.14				0.42			0.42
Dividend payout ratio2		30	%		37	%	(108)        %				41	%		33	%			53	%		32	%
Book value	$	16.05		$	16.51		$	17.03		$	18.16		$	18.31			$	16.05		$	18.31
Stock price		16.47			14.79			16.38			18.12			16.95				16.47			16.95
Tangible book value3		8.75			9.23			9.71			11.70			11.83				8.75			11.83
Performance Ratios
ROAA		1.22	%		1.01	%	(0.31)        %				0.93	%		1.20	%			0.72	%		1.25	%
ROAE		11.1	%		9.1	%	(2.9)        %				7.5	%		9.5	%			6.3	%		6.3	%
ROATCE3		20.5	%		16.9	%	(4.0)        %				12.1	%		15.1	%			11.5	%		15.8	%
NIM (FTE)		3.71	%		3.33	%		2.88	%		2.77	%		2.92	%			3.34	%		2.92	%
Efficiency ratio3		56.2	%		62.7	%		76.2	%		64.3	%		56.9	%			63.5	%		58.1	%
NCOs (recoveries) to average loans		0.10	%		0.02	%		0.05	%	(0.04)        %			(0.09)        %					0.06	%	(0.03)        %
ACLs to EOP loans		0.99	%		0.97	%		0.99	%		0.79	%		0.79	%			0.99	%		0.79	%
NPLs to EOP loans		0.81	%		0.78	%		0.88	%		0.92	%		0.94	%			0.81	%		0.94	%
Balance Sheet (EOP)
Total loans	$	30,528,933		$	29,553,648		$	28,336,244		$	13,601,846		$	13,584,828			$	30,528,933		$	13,584,828
Total assets		46,215,526			45,748,355			45,834,648			24,453,564			24,018,733				46,215,526			24,018,733
Total deposits		36,053,663			35,538,975			35,607,390			18,569,195			18,196,149				36,053,663			18,196,149
Total borrowed funds		4,264,750			4,384,411			4,347,560			2,575,240			2,536,303				4,264,750			2,536,303
Total shareholders' equity		4,943,383			5,078,783			5,232,114			3,012,018			3,035,892				4,943,383			3,035,892
Capital Ratios3
Risk-based capital ratios (EOP):
Tier 1 common equity		9.88	%		9.90	%		10.04	%		12.04	%		12.08	%			9.88	%		12.08	%
Tier 1 capital		10.58	%		10.63	%		10.79	%		12.04	%		12.08	%			10.58	%		12.08	%
Total capital		11.84	%		12.03	%		12.19	%		12.77	%		12.84	%			11.84	%		12.84	%
Leverage ratio (average assets)		8.26	%		8.19	%		10.58	%		8.59	%		8.54	%			8.26	%		8.54	%
Equity to assets (averages)		11.18	%		11.22	%		12.03	%		12.35	%		12.69	%			11.43	%		12.69	%
TCE to TA		5.82	%		6.20	%		6.51	%		8.30	%		8.55	%			5.82	%		8.55	%
Nonfinancial Data
Full-time equivalent employees		4,008			4,196			4,333			2,374			2,410				4,008			2,410
Banking centers		263			266			267			162			162				263			162
1 Calculated using the federal statutory tax rate in effect of 21% for all periods.
2 Cash dividends per common share divided by net income per common share (basic).
3 Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
September 30, 2022 capital ratios are preliminary.
FTE - Fully taxable equivalent basis ROAA - Return on average assets ROAE - Return on average equity
ROATCE - Return on average tangible common equity NCOs - Net Charge-offs ACL -Allowance for Credit Losses EOP - End of period actual balances NPLs - Non-performing Loans TCE - Tangible common equity TA - Tangible assets

Income Statement (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended																Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2022			2022			2022			2021			2021				2022			2021
Interest income	$	406,518		$	354,358		$	235,505		$	156,928		$	162,026			$	996,381		$	481,721
Less: interest expense		29,929			16,886			12,720			10,147			10,454				59,535			32,102
Net interest income		376,589			337,472			222,785			146,781			151,572				936,846			449,619
Provision		11,287			9,245			97,569			(1,914	)		(4,613	)			118,101			(26,898	)
Net interest income after provision		365,302			328,227			125,216			148,695			156,185				818,745			476,517
Wealth management fees		17,317			19,304			14,630			9,833			10,134				51,251			30,576
Service charges on deposit accounts		20,042			20,324			14,026			8,388			8,123				54,392			23,270
Debit card and ATM fees		10,608			11,222			7,599			5,804			5,745				29,429			17,962
Mortgage banking revenue		5,360			6,522			7,245			7,336			10,870				19,127			35,222
Investment product fees		8,042			8,568			7,322			6,258			6,475				23,932			18,381
Capital markets income		8,906			7,261			4,442			6,394			6,017				20,609			15,603
Company-owned life insurance		3,361			4,571			3,524			2,737			2,355				11,456			7,852
Other income		6,921			11,430			6,110			4,299			3,589				24,461			9,977
Gains (losses) on sales of debt securities		(172	)		(85	)		342			435			1,207				85			3,892
Total noninterest income		80,385			89,117			65,240			51,484			54,515				234,742			162,735
Salaries and employee benefits		147,203			161,817			124,147			72,336			71,005				433,167			211,762
Occupancy		26,418			26,496			21,019			13,151			12,757				73,933			41,683
Equipment		7,328			7,550			5,168			4,473			3,756				20,046			12,231
Marketing		10,361			9,119			4,276			4,723			3,267				23,756			7,961
Data processing		20,269			25,883			18,762			11,489			11,508				64,914			35,558
Communication		5,392			5,878			3,417			2,412			2,372				14,687			7,661
Professional fees		6,559			6,336			19,791			5,409			3,416				32,686			14,668
FDIC assessment		6,249			4,699			2,575			1,598			1,628				13,523			4,461
Amortization of intangibles		7,089			7,170			4,811			2,573			2,779				19,070			8,763
Amortization of tax credit investments		2,662			1,525			1,516			2,019			1,736				5,703			4,751
Other expense		27,117			20,922			21,274			11,754			7,050				69,313			19,133
Total noninterest expense		266,647			277,395			226,756			131,937			121,274				770,798			368,632
Income (loss) before income taxes		179,040			139,949			(36,300	)		68,242			89,426				282,689			270,620
Income tax expense (benefit)		38,887			24,964			(8,714	)		12,054			17,680				55,137			49,270
Net income (loss)	$	140,153		$	114,985		$	(27,586	)	$	56,188		$	71,746			$	227,552		$	221,350
Preferred dividends		(4,034	)		(4,033	)		(2,017	)		—			—				(10,084	)		—
Net income (loss) applicable to common shares	$	136,119		$	110,952		$	(29,603	)	$	56,188		$	71,746			$	217,468		$	221,350
EPS	$	0.47		$	0.38		$	(0.13	)	$	0.34		$	0.43			$	0.80		$	1.33
Weighted Average Common Shares Outstanding
Basic		290,961			290,862			227,002			165,278			165,258				269,843			165,144
Diluted		292,483			291,881			227,002			166,128			165,939				271,123			165,862
Common shares outstanding (EOP)		292,880			292,893			292,959			165,838			165,814				292,880			165,814

End of Period Balance Sheet (unaudited)
($ in thousands)
	September 30,			June 30,			March 31,			December 31,			September 30,
		2022			2022			2022			2021			2021
Earning Assets
Federal Reserve Bank account	$	328,391		$	334,570		$	1,545,389		$	627,354		$	600,581
Money market investments		6,374			7,774			12,419			22,002			16,294
Investments:
Treasury and government-sponsored agencies		2,186,551			2,461,173			2,527,568			1,778,357			1,803,273
Mortgage-backed securities		5,584,241			5,976,921			6,086,853			3,698,831			3,354,701
States and political subdivisions		1,829,561			1,839,333			1,840,823			1,654,986			1,609,283
Other securities		693,303			719,223			735,550			432,478			442,503
Total investments		10,293,656			10,996,650			11,190,794			7,564,652			7,209,760
Loans held for sale, at fair value		19,748			26,217			39,376			35,458			51,306
Loans:
Commercial		9,311,148			8,923,983			8,624,253			3,391,769			3,505,183
Commercial and agriculture real estate		12,227,888			11,796,503			11,337,735			6,380,674			6,290,632
Consumer:
Home equity		1,043,594			1,097,852			1,080,885			560,590			554,322
Other consumer loans		1,678,997			1,656,253			1,587,216			1,013,524			1,009,909
Subtotal of commercial and consumer loans		24,261,627			23,474,591			22,630,089			11,346,557			11,360,046
Residential real estate		6,267,306			6,079,057			5,706,155			2,255,289			2,224,782
Total loans		30,528,933			29,553,648			28,336,244			13,601,846			13,584,828
Total earning assets		41,177,102			40,918,859			41,124,222			21,851,312			21,462,769
Allowance for credit losses on loans		(302,254	)		(288,003	)		(280,507	)		(107,341	)		(107,868	)
Non-earning Assets:
Cash and due from banks		466,846			455,620			418,744			172,663			180,583
Premises and equipment, net		588,021			586,031			584,113			476,186			476,036
Operating lease right-of-use assets		187,626			192,196			201,802			69,560			69,912
Goodwill and other intangible assets		2,135,792			2,131,815			2,144,609			1,071,672			1,074,245
Company-owned life insurance		767,089			769,595			766,291			463,324			461,310
Other assets		1,195,304			982,242			875,374			456,188			401,746
Total non-earning assets		5,340,678			5,117,499			4,990,933			2,709,593			2,663,832
Total assets	$	46,215,526		$	45,748,355		$	45,834,648		$	24,453,564		$	24,018,733
Liabilities and Equity
Noninterest-bearing demand deposits	$	12,400,077		$	12,388,379		$	12,463,136		$	6,303,106		$	6,440,526
Interest-bearing:
Checking and NOW accounts		8,963,014			8,473,510			8,296,337			5,338,022			4,956,012
Savings accounts		6,616,512			6,796,152			6,871,767			3,798,494			3,708,807
Money market accounts		5,602,729			5,373,318			5,432,139			2,169,160			2,097,967
Other time deposits		2,393,083			2,479,304			2,544,011			960,413			992,837
Total core deposits		35,975,415			35,510,663			35,607,390			18,569,195			18,196,149
Brokered deposits		78,248			28,312			—			—			—
Total deposits		36,053,663			35,538,975			35,607,390			18,569,195			18,196,149
Federal funds purchased and interbank borrowings		301,031			1,561			1,721			276			34
Securities sold under agreements to repurchase		438,053			476,173			509,275			392,275			375,247
Federal Home Loan Bank advances		2,804,617			3,283,963			3,239,357			1,886,019			1,890,054
Other borrowings		721,049			622,714			597,207			296,670			270,968
Total borrowed funds		4,264,750			4,384,411			4,347,560			2,575,240			2,536,303
Operating lease liabilities		207,725			215,188			234,049			76,236			76,771
Accrued expenses and other liabilities		746,005			530,998			413,535			220,875			173,618
Total liabilities		41,272,143			40,669,572			40,602,534			21,441,546			20,982,841
Preferred stock, common stock, surplus, and retained earnings		5,751,833			5,647,916			5,570,313			3,014,393			2,979,082
Accumulated other comprehensive income (loss), net of tax		(808,450	)		(569,133	)		(338,199	)		(2,375	)		56,810
Total shareholders' equity		4,943,383			5,078,783			5,232,114			3,012,018			3,035,892
Total liabilities and shareholders' equity	$	46,215,526		$	45,748,355		$	45,834,648		$	24,453,564		$	24,018,733

Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
		Three Months Ended								Three Months Ended								Three Months Ended
		September 30, 2022								June 30, 2022								September 30, 2021
		Average			Income1/		Yield/			Average			Income1/		Yield/			Average			Income1/		Yield/
Earning Assets:		Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Money market and other interest-earning investments		$	514,362		$	935	0.72	%		$	1,088,005		$	1,830	0.67	%		$	467,572		$	177	0.15	%
Investments:
Treasury and government-sponsored agencies			2,326,070			13,212	2.27	%			2,487,717			11,818	1.90	%			1,730,553			6,968	1.61	%
Mortgage-backed securities			5,891,283			36,157	2.45	%			6,008,470			33,534	2.23	%			3,313,027			14,509	1.75	%
States and political subdivisions			1,829,322			14,631	3.20	%			1,834,189			14,571	3.18	%			1,586,743			12,609	3.18	%
Other securities			718,735			6,781	3.77	%			723,279			5,467	3.02	%			443,393			2,638	2.38	%
Total investments			10,765,410			70,781	2.63	%			11,053,655			65,390	2.37	%			7,073,716			36,724	2.08	%
Loans:2
Commercial			9,045,009			113,491	5.02	%			8,692,646			95,743	4.36	%			3,645,197			36,139	3.88	%
Commercial and agriculture real estate			11,929,892			136,780	4.59	%			11,547,958			113,545	3.89	%			6,200,144			57,820	3.65	%
Consumer:
Home equity			947,921			14,397	6.03	%			1,000,373			11,256	4.51	%			549,229			4,448	3.21	%
Other consumer loans			1,787,929			18,652	4.14	%			1,715,550			19,222	4.49	%			1,018,385			9,690	3.77	%
Subtotal commercial and consumer loans			23,710,751			283,320	4.78	%			22,956,527			239,766	4.19	%			11,412,955			108,097	3.76	%
Residential real estate loans			6,189,503			56,432	3.65	%			5,905,151			51,686	3.50	%			2,274,347			20,529	3.61	%
Total loans			29,900,254			339,752	4.54	%			28,861,678			291,452	4.01	%			13,687,302			128,626	3.70	%
Total earning assets		$	41,180,026		$	411,468	3.99	%		$	41,003,338		$	358,672	3.48	%		$	21,228,590		$	165,527	3.08	%
Less: Allowance for credit losses on loans			(290,215	)							(282,943	)							(111,216	)
Non-earning Assets:
Cash and due from banks		$	503,841							$	277,283							$	272,855
Other assets			4,522,171								4,735,701								2,479,079
Total assets		$	45,915,823							$	45,733,379							$	23,869,308
Interest-Bearing Liabilities:
Checking and NOW accounts		$	8,681,392		$	5,751	0.26	%		$	8,445,683		$	1,786	0.08	%		$	4,873,914		$	484	0.04	%
Savings accounts			6,733,465			547	0.03	%			6,835,675			673	0.04	%			3,678,944			500	0.05	%
Money market accounts			5,344,567			2,072	0.15	%			5,317,300			1,027	0.08	%			2,110,981			438	0.08	%
Other time deposits			2,463,573			2,168	0.35	%			2,491,998			1,627	0.26	%			998,060			1,156	0.46	%
Total interest-bearing core deposits			23,222,997			10,538	0.18	%			23,090,656			5,113	0.09	%			11,661,899			2,578	0.09	%
Brokered deposits			44,579			282	2.51	%			7,447			74	0.00	%			—			—	0.00	%
Total interest-bearing deposits			23,267,576			10,820	0.18	%			23,098,103			5,187	0.09	%			11,661,899			2,578	0.09	%
Federal funds purchased and interbank borrowings			122,311			720	2.34	%			1,222			2	0.47	%			689			—	0.00	%
Securities sold under agreements to repurchase			436,225			106	0.10	%			466,885			85	0.07	%			384,724			90	0.09	%
Federal Home Loan Bank advances			3,025,844			13,027	1.71	%			3,053,423			6,925	0.91	%			1,890,916			5,326	1.12	%
Other borrowings			676,874			5,256	3.08	%			611,772			4,687	3.06	%			270,597			2,460	3.64	%
Total borrowed funds			4,261,254			19,109	1.78	%			4,133,302			11,699	1.14	%			2,546,926			7,876	1.23	%
Total interest-bearing liabilities		$	27,528,830		$	29,929	0.43	%		$	27,231,405		$	16,886	0.25	%		$	14,208,825		$	10,454	0.29	%
Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits		$	12,575,011							$	12,714,946							$	6,314,100
Other liabilities			677,829								657,128								318,448
Shareholders' equity			5,134,153								5,129,900								3,027,935
Total liabilities and shareholders' equity		$	45,915,823							$	45,733,379							$	23,869,308
Net interest rate spread							3.56	%							3.23	%							2.79	%
Net interest margin (FTE)							3.71	%							3.33	%							2.92	%
FTE adjustment					$	4,950							$	4,314							$	3,501
1 Interest income is reflected on a FTE.
2 Includes loans held for sale.

Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)
		Nine Months Ended								Nine Months Ended
		September 30, 2022								September 30, 2021
		Average			Income1/		Yield/			Average			Income1/		Yield/
Earning Assets:		Balance			Expense		Rate			Balance			Expense		Rate
Money market and other interest-earning investments		$	976,579		$	3,073	0.42	%		$	357,151		$	313	0.12	%
Investments:
Treasury and government-sponsored agencies			2,336,897			33,249	1.90	%			1,509,931			17,820	1.57	%
Mortgage-backed securities			5,593,341			94,067	2.24	%			3,304,200			45,408	1.83	%
States and political subdivisions			1,801,053			42,839	3.17	%			1,523,175			37,174	3.25	%
Other securities			682,937			16,392	3.20	%			445,298			8,071	2.42	%
Total investments		$	10,414,228		$	186,547	2.39	%		$	6,782,604		$	108,473	2.13	%
Loans:2
Commercial			7,888,730			264,517	4.47	%			3,878,630			106,421	3.62	%
Commercial and agriculture real estate			10,753,988			327,733	4.06	%			6,109,795			171,221	3.70	%
Consumer:
Home equity			911,276			33,008	4.84	%			544,111			12,801	3.15	%
Other consumer loans			1,609,845			52,434	4.35	%			1,037,038			29,613	3.82	%
Subtotal commercial and consumer loans			21,163,839			677,692	4.27	%			11,569,574			320,056	3.70	%
Residential real estate loans			5,369,844			142,105	3.53	%			2,268,142			63,350	3.72	%
Total loans			26,533,683			819,797	4.12	%			13,837,716			383,406	3.67	%
Total earning assets		$	37,924,490		$	1,009,417	3.55	%		$	20,977,471		$	492,192	3.11	%
Less: Allowance for credit losses on loans			(247,558	)							(120,619	)
Non-earning Assets:
Cash and due from banks		$	350,848							$	266,543
Other assets			4,249,986								2,495,512
Total assets		$	42,277,766							$	23,618,907
Interest-Bearing Liabilities:
Checking and NOW accounts		$	7,977,524		$	8,133	0.14	%		$	4,895,539		$	1,608	0.04	%
Savings accounts			6,295,628			1,809	0.04	%			3,608,078			1,479	0.05	%
Money market accounts			4,819,252			3,791	0.11	%			2,060,325			1,293	0.08	%
Other time deposits			2,236,206			5,112	0.31	%			1,034,389			4,058	0.52	%
Total interest-bearing core deposits			21,328,610			18,845	0.12	%			11,598,331			8,438	0.10	%
Brokered deposits			17,505			356	2.72	%			55,312			31	0.08	%
Total interest-bearing deposits			21,346,115			19,201	0.12	%			11,653,643			8,469	0.10	%
Federal funds purchased and interbank borrowings			41,993			722	2.30	%			1,096			—	0.00	%
Securities sold under agreements to repurchase			450,966			287	0.09	%			396,495			305	0.10	%
Federal Home Loan Bank advances			2,891,347			25,915	1.20	%			1,907,322			15,953	1.12	%
Other borrowings			574,589			13,410	3.12	%			267,650			7,375	3.67	%
Total borrowed funds			3,958,895			40,334	1.36	%			2,572,563			23,633	1.23	%
Total interest-bearing liabilities			25,305,010			59,535	0.31	%			14,226,206			32,102	0.30	%
Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits		$	11,540,293							$	6,072,310
Other liabilities			601,619								323,310
Shareholders' equity			4,830,844								2,997,081
Total liabilities and shareholders' equity		$	42,277,766							$	23,618,907
Net interest rate spread							3.24	%							2.81	%
Net interest margin (FTE)							3.34	%							2.92	%
FTE adjustment					$	13,036							$	10,471
1 Interest income is reflected on a FTE.
2 Includes loans held for sale.

Asset Quality (EOP) (unaudited)
($ in thousands)
	Three Months Ended																Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2022			2022			2022			2021			2021				2022			2021
Allowance for credit losses on loans:
Beginning ACL	$	288,003		$	280,507		$	107,341		$	107,868		$	109,444			$	107,341		$	131,388
Allowance established for acquired PCD loans		10,558			—			78,531			—			—				89,089			—
Provision for credit losses1		11,288			9,254			97,409			(1,914	)		(4,613	)			117,951			(26,898	)
Gross charge-offs		(11,440	)		(4,096	)		(4,664	)		(545	)		(1,215	)			(20,200	)		(3,765	)
Gross recoveries		3,845			2,338			1,890			1,932			4,252				8,073			7,143
(NCOs) recoveries		(7,595	)		(1,758	)		(2,774	)		1,387			3,037				(12,127	)		3,378
Ending ACL	$	302,254		$	288,003		$	280,507		$	107,341		$	107,868			$	302,254		$	107,868
NCOs (recoveries) / average loans2		0.10	%		0.02	%		0.05	%	(0.04)        %			(0.09)        %					0.06	%	(0.03)        %
Average loans2	$	29,890,008		$	28,847,003		$	20,725,313		$	13,594,543		$	13,675,436			$	26,521,011		$	13,824,569
EOP loans2		30,528,933			29,553,648			28,336,244			13,601,846			13,584,828				30,528,933			13,584,828
ACL / EOP loans2		0.99	%		0.97	%		0.99	%		0.79	%		0.79	%			0.99	%		0.79	%
Underperforming Assets:
Loans 90 days and over (still accruing)	$	767		$	882		$	1,646		$	7		$	113			$	767		$	113
NPLs:
Nonaccrual loans3		233,659			214,924			227,925			106,691			111,586				233,659			111,586
TDRs still accruing		13,674			15,665			20,999			18,378			16,420				13,674			16,420
Total NPLs		247,333			230,589			248,924			125,069			128,006				247,333			128,006
Foreclosed assets		11,967			12,618			19,713			2,030			1,943				11,967			1,943
Total underperforming assets	$	260,067		$	244,089		$	270,283		$	127,106		$	130,062			$	260,067		$	130,062
Classified and Criticized Assets:
Nonaccrual loans3	$	233,659		$	214,924		$	227,925		$	106,691		$	111,586			$	233,659		$	111,586
Substandard loans (still accruing)		476,724			490,566			518,341			162,572			164,192				476,724			164,192
Loans 90 days and over (still accruing)		767			882			1,646			7			113				767			113
Total classified loans - "problem loans"		711,150			706,372			747,912			269,270			275,891				711,150			275,891
Other classified assets		24,773			25,004			24,676			4,338			4,300				24,773			4,300
Criticized loans - "special mention loans"		549,994			452,835			507,689			235,910			240,215				549,994			240,215
Total classified and criticized assets	$	1,285,917		$	1,184,211		$	1,280,277		$	509,518		$	520,406			$	1,285,917		$	520,406
Loans 30-89 days past due	$	65,632		$	48,889		$	94,114		$	16,347		$	13,263			$	65,632		$	13,263
NPLs / EOP loans2		0.81	%		0.78	%		0.88	%		0.92	%		0.94	%			0.81	%		0.94	%
ACL to NPLs		122	%		125	%		113	%		86	%		84	%			122	%		84	%
Under-performing assets / EOP loans2		0.85	%		0.83	%		0.95	%		0.93	%		0.96	%			0.85	%		0.96	%
Under-performing assets / EOP assets		0.56	%		0.53	%		0.59	%		0.52	%		0.54	%			0.56	%		0.54	%
30+ day delinquencies2		0.22	%		0.17	%		0.34	%		0.12	%		0.10	%			0.22	%		0.10	%
1 Excludes $0.2 million of expense to establish an allowance on held-to-maturity securities during the first quarter of 2022.
2 Excludes loans held for sale.
3 Includes non-accruing TDRs totaling $23.8 million at September 30, 2022, $24.3 million at June 30, 2022, $23.8 million at March 31, 2022, $11.7 million at December 31, 2021 and $12.8 million at September 30, 2021.
PCD - Purchased credit deteriorated TDR - Troubled debt restructuring

Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended																Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2022			2022			2022			2021			2021				2022			2021
Earnings Per Share:
Net income applicable to common shares	$	136,119		$	110,952		$	(29,603	)	$	56,188		$	71,746			$	217,468		$	221,350
Adjustments:
Debt Securities (gains) losses		172			85			(342	)		(435	)		(1,207	)			(85	)		(3,892	)
Tax effect1		(65	)		(30	)		62			109			302				(32	)		973
Debt securities (gains) losses, net		107			55			(280	)		(326	)		(905	)			(117	)		(2,919	)
Day 1 non-PCD		—			—			96,270			—			—				96,270			—
Tax effect1		—			—			(17,550	)		—			—				(17,550	)		—
Day 1 non-PCD, net		—			—			78,720			—			—				78,720			—
Merger related charges		22,743			36,585			52,299			6,683			1,361				111,627			7,901
Tax effect1		(8,529	)		(13,057	)		(9,534	)		(1,671	)		(340	)			(34,016	)		(1,975	)
Merger related charges, net		14,214			23,528			42,765			5,012			1,021				77,611			5,926
ONB Way		—			—			—			—			—				—			1,952
Tax effect1		—			—			—			—			—				—			(488	)
ONB Way, net		—			—			—			—			—				—			1,464
Total adjustments, net		14,321			23,583			121,205			4,686			116				156,214			4,471
Net income applicable to common shares, adjusted	$	150,440		$	134,535		$	91,602		$	60,874		$	71,862			$	373,682		$	225,821
Weighted average diluted common shares outstanding		292,483			291,881			227,002			166,128			165,939				271,123			165,862
EPS, diluted	$	0.47		$	0.38		$	(0.13	)	$	0.34		$	0.43			$	0.80		$	1.33
Adjusted EPS, diluted	$	0.51		$	0.46		$	0.40		$	0.37		$	0.43			$	1.38		$	1.36
NIM:
Net interest income	$	376,589		$	337,472		$	222,785		$	146,781		$	151,572			$	936,846		$	449,619
Add: FTE adjustment1		4,950			4,314			3,772			3,442			3,501				13,036			10,471
Net interest income (FTE)	$	381,539		$	341,786		$	226,557		$	150,223		$	155,073			$	949,882		$	460,090
Average earning assets	$	41,180,026		$	41,003,338		$	31,483,553		$	21,670,723		$	21,228,590			$	37,924,490		$	20,977,471
NIM		3.66	%		3.29	%		2.83	%		2.71	%		2.86	%			3.29	%		2.86	%
NIM (FTE)		3.71	%		3.33	%		2.88	%		2.77	%		2.92	%			3.34	%		2.92	%

Non-GAAP Measures (unaudited)
($ in thousands)
	Three Months Ended																Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2022			2022			2022			2021			2021				2022			2021
PPNR:
Net interest income (FTE)1	$	381,539		$	341,786		$	226,557		$	150,223		$	155,073			$	949,882		$	460,090
Add: Noninterest income		80,385			89,117			65,240			51,484			54,515				234,742			162,735
Total revenue (FTE)		461,924			430,903			291,797			201,707			209,588				1,184,624			622,825
Less: Noninterest expense		(266,647	)		(277,395	)		(226,756	)		(131,937	)		(121,274	)			(770,798	)		(368,632	)
PPNR	$	195,277		$	153,508		$	65,041		$	69,770		$	88,314			$	413,826		$	254,193
Adjustments:
Debt securities (gains) losses	$	172		$	85		$	(342	)	$	(435	)	$	(1,207	)		$	(85	)	$	(3,892	)
Noninterest income adjustments		172			85			(342	)		(435	)		(1,207	)			(85	)		(3,892	)
Adjusted revenue	$	462,096		$	430,988		$	291,455		$	201,272		$	208,381			$	1,184,539		$	618,933
Adjustments:
ONB Way	$	—		$	—		$	—		$	—		$	—			$	—		$	1,952
Merger related charges		22,743			36,585			52,299			6,683			1,361				111,627			7,901
Amortization of tax credit investments		2,662			1,525			1,516			2,019			1,736				5,703			4,751
Noninterest expense adjustments		25,405			38,110			53,815			8,702			3,097				117,330			14,604
Adjusted total noninterest expense		(241,242	)		(239,285	)		(172,941	)		(123,235	)		(118,177	)			(653,468	)		(354,028	)
Adjusted PPNR	$	220,854		$	191,703		$	118,514		$	78,037		$	90,204			$	531,071		$	264,905
Efficiency Ratio:
Noninterest expense	$	266,647		$	277,395		$	226,756		$	131,937		$	121,274			$	770,798		$	368,632
Less: Amortization of intangibles		(7,089	)		(7,170	)		(4,811	)		(2,573	)		(2,779	)			(19,070	)		(8,763	)
Noninterest expense, excl. amortization of intangibles		259,558			270,225			221,945			129,364			118,495				751,728			359,869
Less: Noninterest expense adjustments		(25,405	)		(38,110	)		(53,815	)		(8,702	)		(3,097	)			(117,330	)		(14,604	)
Adjusted noninterest expense	$	234,153		$	232,115		$	168,130		$	120,662		$	115,398			$	634,398		$	345,265
Total revenue (FTE)1	$	461,924		$	430,903		$	291,797		$	201,707		$	209,588			$	1,184,624		$	622,825
Less: Revenue adjustments		172			85			(342	)		(435	)		(1,207	)			(85	)		(3,892	)
Total adjusted revenue	$	462,096		$	430,988		$	291,455		$	201,272		$	208,381			$	1,184,539		$	618,933
Efficiency Ratio		56.17	%		62.70	%		76.15	%		64.27	%		56.86	%			63.46	%		58.14	%
Adjusted Efficiency Ratio		50.67	%		53.85	%		57.67	%		59.95	%		55.38	%			53.56	%		55.78	%

Non-GAAP Measures (unaudited)
($ in thousands)
	Three Months Ended																Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2022			2022			2022			2021			2021				2022			2021
ROAE and ROATCE:
Net income (loss) applicable to common shares	$	136,119		$	110,952		$	(29,603	)	$	56,188		$	71,746			$	217,468		$	221,350
Amortization of intangibles		7,089			7,170			4,811			2,573			2,779				19,070			8,763
Tax effect1		(1,772	)		(1,793	)		(877	)		(643	)		(695	)			(4,768	)		(2,191	)
Amortization of intangibles, net		5,317			5,378			3,934			1,930			2,084				14,302			6,572
Net income (loss) applicable to common shares, excluding intangible amortization		141,436			116,330			(25,669	)		58,118			73,830				231,770			227,922
Total adjustments, net		14,321			23,583			121,205			4,686			116				156,214			4,471
Adjusted tangible net income applicable to common shares	$	155,757		$	139,913		$	95,536		$	62,804		$	73,946			$	387,984		$	232,393
Average shareholders' equity	$	5,134,153		$	5,129,900		$	4,218,416		$	2,998,825		$	3,027,935			$	4,830,844		$	2,997,081
Less: Average preferred equity		(243,719	)		(243,719	)		(117,210	)		—			—				(202,013	)		—
Average shareholders' common equity	$	4,890,434		$	4,886,181		$	4,101,206		$	2,998,825		$	3,027,935			$	4,628,831		$	2,997,081
Average goodwill and other intangible assets		(2,129,858	)		(2,136,964	)		(1,550,624	)		(1,072,986	)		(1,075,579	)			(1,941,270	)		(1,078,441	)
Average tangible shareholder's common equity	$	2,760,576		$	2,749,217		$	2,550,582		$	1,925,839		$	1,952,356			$	2,687,561		$	1,918,640
ROAE		11.13	%		9.08	%		(2.89	)%		7.49	%		9.48	%			6.26	%		9.85	%
ROAE, adjusted		12.30	%		11.01	%		8.93	%		8.12	%		9.49	%			10.76	%		10.05	%
ROATCE		20.49	%		16.93	%		(4.03	)%		12.07	%		15.13	%			11.50	%		15.84	%
ROATCE, adjusted		22.57	%		20.36	%		14.98	%		13.04	%		15.16	%			19.25	%		16.15	%

Non-GAAP Measures (unaudited)
($ in thousands)
	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
		2022			2022			2022			2021			2021
Tangible Common Equity:
Shareholders' equity	$	4,943,383		$	5,078,783		$	5,232,114		$	3,012,018		$	3,035,892
Less: Preferred equity		(243,719	)		(243,719	)		(243,719	)		—			—
Shareholders' common equity	$	4,699,664		$	4,835,064		$	4,988,395		$	3,012,018		$	3,035,892
Less: Goodwill and other intangible assets		(2,135,792	)		(2,131,815	)		(2,144,609	)		(1,071,672	)		(1,074,245	)
Tangible shareholders' common equity	$	2,563,872		$	2,703,249		$	2,843,786		$	1,940,346		$	1,961,647
Total assets	$	46,215,526		$	45,748,355		$	45,834,648		$	24,453,564		$	24,018,733
Add: Trust overdrafts		—			—			1			—			116
Less: Goodwill and other intangible assets		(2,135,792	)		(2,131,815	)		(2,144,609	)		(1,071,672	)		(1,074,245	)
Tangible assets	$	44,079,734		$	43,616,540		$	43,690,040		$	23,381,892		$	22,944,604
Risk-weighted assets2	$	34,741,765		$	33,662,205		$	32,341,335		$	16,588,469		$	16,227,070
Tangible common equity to tangible assets		5.82	%		6.20	%		6.51	%		8.30	%		8.55	%
Tangible common equity to risk-weighted assets2		7.38	%		8.03	%		8.79	%		11.70	%		12.09	%
Tangible Common Equity:
Common shares outstanding		292,880			292,893			292,959			165,838			165,814
Tangible common book value	$	8.75		$	9.23		$	9.71		$	11.70		$	11.83
1 Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state).2 September 30, 2022 figures are preliminary.

Source: Old National Bancorp