First Midwest Bancorp, Inc. Announces 2021 Third Quarter Results – EPS Up 110% From a Year Ago

CHICAGO, Oct. 19, 2021 (GLOBE NEWSWIRE) -- First Midwest Bancorp, Inc. (the "Company" or "First Midwest"), the holding company of First Midwest Bank (the "Bank"), today reported results of operations and financial condition for the third quarter of 2021. Net income applicable to common shares for the third quarter of 2021 was $50 million, or $0.44 per diluted common share, compared to $47 million, or $0.41 per diluted common share, for the second quarter of 2021, and $23 million, or $0.21 per diluted common share, for the third quarter of 2020.

Comparative results for the third and second quarters of 2021 and the third quarter of 2020 were, in certain cases, impacted by the timing of costs related to acquisitions, retail and balance sheet optimization strategies, and securities gains. Such results were also impacted by the Company’s response to the COVID-19 pandemic (the "pandemic"), as well as federal, state, and local responses to the pandemic. To facilitate comparisons between periods, adjustments to reported results have been made to reflect these impacts. For additional detail on these adjustments, see the "Non-GAAP Financial Information" section presented later in this release.

SELECT THIRD QUARTER HIGHLIGHTS

• Improved diluted EPS to $0.44, up 7% and 110% from the second quarter of 2021 and third quarter of 2020, respectively.

  • Generated total revenue of $190 million, consistent with the linked quarter and up 14% over the prior year.

    • Net interest income totaled $145 million at a net margin of 2.91%, down approximately 5 basis points ("bps") from both prior periods, largely due to elevated liquidity.

    • Fee-based revenues increased to $42 million, up 1% and 11% from the second quarter of 2021 and third quarter of 2020, respectively, with record wealth management fees.

  • Controlled noninterest expense, adjusted, to average assets, excluding PPP loans, to 2.10%, down 12 and 9 bps from the second quarter of 2021 and third quarter of 2020, respectively.

• Grew total loans to $15 billion, up 2% annualized from June 30, 2021 and 7% from September 30, 2020, excluding PPP loans, largely on the strength of 4% annualized commercial lending growth.

• Increased total average deposits to $17.3 billion, up 2% from the prior quarter and 9% from the prior year quarter.

• Established the allowance for credit losses ("ACL") at $215 million, or 1.49% of total loans, excluding PPP loans, compared to 1.56% at June 30, 2021 and 1.83% at September 30, 2020.

  • Lowered non-performing assets to total loans plus foreclosed assets to 0.78% compared to 1.01% and 1.11% as of June 30, 2021 and September 30, 2020, respectively.

  • Reduced net loan charge-offs ("NCOs") to $7 million, compared to $16 million and $9 million in the second quarter of 2021 and third quarter of 2020, respectively, excluding purchased credit deteriorated ("PCD") loans.

• Increased Tier 1 capital to 12.0% of risk-weighted assets, up 28 bps from the linked quarter and 51 bps from a year ago as a result of higher retained earnings and the ongoing suspension of the Company's stock repurchase program.
  

"We were very pleased with our performance for the quarter," said Michael L. Scudder, Chairman of the Board and Chief Executive Officer of the Company. "Operating performance once again profited from increasing business momentum, sales production and tight control of our operating costs. The quarter was further aided by no provision for loan losses, reflective of both the strengthening economy and improving credit metrics."

Mr. Scudder concluded, "We remain very encouraged and excited about what lies ahead for our Company. Our teams are highly engaged as we see continuing economic recovery and growing opportunities for business expansion. As we look to our future, our ongoing integration efforts relative to our announced business combination with Old National Bank are on pace and in line with our expectations. This combination will see us grow to become one of the Midwest’s largest commercial banks and position us well for continued growth, investment, and innovation in talent, capabilities, and services – all to the benefit of our clients, colleagues, communities and stockholders."

PENDING MERGER

First Midwest and Old National Bancorp

On June 1, 2021, the Company and Old National Bancorp ("Old National"), the holding company for Old National Bank, jointly announced that they entered into a definitive merger agreement to combine in an all-stock merger of equals transaction to create a premier Midwestern bank with approximately $45 billion of combined assets. The merger agreement provides for a fixed exchange ratio whereby holders of First Midwest common stock will receive 1.1336 shares of Old National common stock for each share of First Midwest common stock they own. The merger agreement has been unanimously approved by the boards of directors, and has also been approved by approximately 99% of the votes cast at the shareholder meetings, of both companies.

As of the date of announcement, the overall transaction was valued at approximately $6.5 billion. On August 19, 2021, the Office of the Comptroller of the Currency approved the application for the merger of First Midwest Bank and Old National Bank. Completion of the merger remains subject to regulatory approval by the Board of Governors of the Federal Reserve System and certain other customary closing conditions set forth in the merger agreement.

⁽¹⁾ This metric is a non-GAAP financial measure. For details on the calculation of this metric, see the sections titled "Non-GAAP Financial Information" and "Non-GAAP Reconciliations" presented later in this release.

OPERATING PERFORMANCE

Net Interest Income and Margin Analysis
(Dollar amounts in thousands)

	Quarters Ended
	September 30, 2021												June 30, 2021												September 30, 2020
	Average Balance				Interest				Yield/ Rate (%)				Average Balance				Interest				Yield/ Rate (%)				Average Balance				Interest				Yield/ Rate (%)
Assets
Other interest-earning assets	$	1,672,005			$	1,222			0.29				$	1,185,187			$	745			0.25				$	1,234,948			$	799			0.26
Securities(1)	3,265,812				16,189				1.98				3,226,974				16,752				2.08				3,291,724				19,721				2.40
Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") stock	106,759				852				3.19				106,330				934				3.51				150,033				976				2.60
Loans, excluding PPP loans(1)	14,364,785				127,631				3.53				14,095,989				125,264				3.56				13,558,857				131,680				3.86
PPP loans(1)	549,380				9,772				7.06				1,035,386				11,258				4.36				1,194,808				7,001				2.33
Total loans(1)	14,914,165				137,403				3.66				15,131,375				136,522				3.62				14,753,665				138,681				3.74
Total interest-earning assets(1)	19,958,741				155,666				3.10				19,649,866				154,953				3.16				19,430,370				160,177				3.28
Cash and due from banks	277,720												268,450												284,730
Allowance for loan losses	(215,395		)										(235,770		)										(243,667		)
Other assets	1,878,494												1,850,663												2,055,262
Total assets	$	21,899,560											$	21,533,209											$	21,526,695
Liabilities and Stockholders' Equity
Savings deposits	$	2,785,816			124				0.02				$	2,740,893			121				0.02				$	2,342,355			104				0.02
NOW accounts	3,213,637				275				0.03				3,048,990				261				0.03				2,744,034				307				0.04
Money market deposits	3,211,355				549				0.07				3,055,420				559				0.07				2,781,666				724				0.10
Time deposits	1,800,493				1,915				0.42				1,876,216				2,190				0.47				2,302,019				5,702				0.99
Borrowed funds	1,281,968				3,146				0.97				1,288,107				3,112				0.97				2,436,922				6,021				0.98
Senior and subordinated debt	235,284				3,467				5.85				235,080				3,469				5.92				234,464				3,498				5.94
Total interest-bearing liabilities	12,528,553				9,476				0.30				12,244,706				9,712				0.32				12,841,460				16,356				0.51
Demand deposits	6,272,903												6,254,791												5,631,355
Total funding sources	18,801,456								0.20				18,499,497								0.21				18,472,815								0.35
Other liabilities	364,576												347,178												378,786
Stockholders' equity	2,733,528												2,686,534												2,675,094
Total liabilities and stockholders' equity	$	21,899,560											$	21,533,209											$	21,526,695
Tax-equivalent net interest income/margin(1)					146,190				2.91								145,241				2.96								143,821				2.95
Tax-equivalent adjustment					(994		)										(953		)										(1,092		)
Net interest income (GAAP)(1)					$	145,196											$	144,288											$	142,729
Impact of acquired loan accretion(1)					$	6,231			0.12								$	5,975			0.12								$	7,960			0.16
Tax-equivalent net interest income/ margin, adjusted(1)					$	139,959			2.79								$	139,266			2.84								$	135,861			2.79

⁽¹⁾ Interest income and yields on tax-exempt securities and loans are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. The corresponding income tax impact related to tax-exempt items is recorded in income tax expense. These adjustments have no impact on net income. See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

Net interest income for the third quarter of 2021 was up 0.6% from the second quarter of 2021 and 1.7% from the third quarter of 2020. The increase in net interest income compared to the second quarter of 2021 resulted primarily from growth in loans, excluding PPP loans, an increase in the number of days, partially offset by lower fees on PPP loans. Compared to the third quarter of 2020, net interest income was impacted by loan growth, lower cost of funds, and an increase in interest income and fees on PPP loans, partially offset by lower interest rates and acquired loan accretion.

Acquired loan accretion contributed $6.2 million, $6.0 million, and $8.0 million to net interest income for the third quarter of 2021, second quarter of 2021, and third quarter of 2020, respectively.

Tax-equivalent net interest margin for the current quarter was 2.91%, decreasing 5 and 4 basis points from the second quarter of 2021 and third quarter of 2020, respectively. Excluding the impact of acquired loan accretion, tax-equivalent net interest margin was 2.79%, down 5 basis points from the second quarter of 2021 and consistent with the third quarter of 2020. Compared to the second quarter of 2021, tax-equivalent net interest margin decreased due primarily to a higher balance of other interest-earning assets from seasonal municipal deposits and higher demand deposits as a result of PPP loan funds and other government stimuli. Tax-equivalent net interest margin compared to the third quarter of 2020 was impacted positively by PPP loan income and lower cost of funds, offset by lower interest rates on loans and securities, as well as a higher balance of other interest-earning assets due to higher demand deposits as a result of PPP loan funds and other government stimuli.

For the third quarter of 2021, total average interest-earning assets rose by $308.9 million and $528.4 million from the second quarter of 2021 and third quarter of 2020, respectively. The increase compared to both prior periods resulted primarily from a higher balance of other interest-earning assets due to higher demand deposits as a result of PPP loan funds and other government stimuli, as well as loan growth. In addition, the rise in other interest-earning assets was impacted by the normal seasonal increase in municipal deposits compared to the second quarter of 2021.

Total average funding sources for the third quarter of 2021 increased by $302.0 million from the second quarter of 2021 and $328.6 million from the third quarter of 2020. The increase compared to the second quarter of 2021 was impacted by seasonal municipal deposits whereas compared to the third quarter of 2020 the increase was driven primarily by deposit growth due to higher customer balances resulting from PPP funds and other government stimuli. In addition, average funding sources compared to the third quarter of 2020 were impacted by a decrease in FHLB advances.

Noninterest Income Analysis
(Dollar amounts in thousands)

		Quarters Ended												September 30, 2021 Percent Change From
		September 30, 2021				June 30, 2021				September 30, 2020				June 30, 2021			September 30, 2020
Wealth management fees		$	14,820			$	14,555			$	12,837			1.8			15.4
Service charges on deposit accounts		11,496				10,778				10,342				6.7			11.2
Mortgage banking income		6,664				6,749				6,659				(1.3	)		0.1
Card-based fees, net		4,992				4,764				4,472				4.8			11.6
Capital market products income		1,333				1,954				886				(31.8	)		50.5
Other service charges, commissions, and fees		2,832				2,823				2,823				0.3			0.3
Total fee-based revenues		42,137				41,623				38,019				1.2			10.8
Other income		3,043				4,647				2,523				(34.5	)		20.6
Swap termination costs		—				—				(14,285		)		N/M			N/M
Net securities gains		—				—				14,328				N/M			N/M
Total noninterest income		$	45,180			$	46,270			$	40,585			(2.4	)		11.3

N/M – Not meaningful.

Total noninterest income of $45.2 million was down 2.4% from the second quarter of 2021 and up 11.3% from the third quarter of 2020. Record wealth management fees resulted from continued sales of fiduciary and investment advisory services to new and existing customers compared to both prior periods. The increase in service charges on deposit accounts and net card-based fees compared to the second quarter of 2021 was due primarily to seasonality, whereas the increase from the third quarter of 2020 resulted from the impact of higher transaction volumes due to economic recovery since the onset of the pandemic. Capital market products income resulted from levels of sales to corporate clients in light of market conditions that were lower than the second quarter of 2021 and higher than the third quarter of 2020.

Mortgage banking income for the third quarter of 2021 resulted from sales of $199.9 million of 1-4 family mortgage loans in the secondary market compared to $207.8 million in the second quarter of 2021 and $251.8 million in the third quarter of 2020. Compared to the third quarter of 2020, mortgage banking income was impacted by an increase in market pricing on sales of 1-4 family mortgage loans.

Other income increased compared to the third quarter of 2020 due to net gains from the disposition of branch properties and other miscellaneous items. Other income for the second quarter of 2021 was elevated as a result of positive fair value adjustments on equity securities.

During the third quarter of 2020, the Company terminated longer term interest rate swaps with notional amounts of $1.1 billion due to excess liquidity and in response to market conditions. At the same time, the Company liquidated $160 million of securities. As a result of these transactions, $14.3 million of pre-tax securities gains was fully offset by $14.3 million of pre-tax loss on swap terminations.

Noninterest Expense Analysis
(Dollar amounts in thousands)

		Quarters Ended												September 30, 2021 Percent Change From
		September 30, 2021				June 30, 2021				September 30, 2020				June 30, 2021			September 30, 2020
Salaries and employee benefits:
Salaries and wages		$	51,503			$	51,887			$	53,385			(0.7	)		(3.5	)
Retirement and other employee benefits		10,924				12,324				11,349				(11.4	)		(3.7	)
Total salaries and employee benefits		62,427				64,211				64,734				(2.8	)		(3.6	)
Net occupancy and equipment expense		14,198				13,654				13,736				4.0			3.4
Technology and related costs		10,742				10,453				10,416				2.8			3.1
Professional services		6,991				7,568				7,325				(7.6	)		(4.6	)
Advertising and promotions		3,168				2,899				2,688				9.3			17.9
Net other real estate owned ("OREO") expense		(4		)		160				544				(102.5	)		(100.7	)
Other expenses		15,616				14,670				12,374				6.4			26.2
Acquisition and integration related expenses		2,916				7,773				881				(62.5	)		231.0
Optimization costs		—				31				18,376				N/M			N/M
Total noninterest expense		$	116,054			$	121,419			$	131,074			(4.4	)		(11.5	)
Acquisition and integration related expenses		(2,916		)		(7,773		)		(881		)		(62.5	)		231.0
Optimization costs		—				(31		)		(18,376		)		N/M			N/M
Total noninterest expense, adjusted(1)		$	113,138			$	113,615			$	111,817			(0.4	)		1.2

N/M – Not meaningful.

⁽¹⁾ See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

Total noninterest expense was down 4.4% and 11.5% from the second quarter of 2021 and third quarter of 2020, respectively. Noninterest expense for all periods presented was impacted by acquisition and integration related expenses. In addition, the second quarter of 2021 and third quarter of 2020 were impacted by optimization costs. Excluding these items, noninterest expense for the third quarter of 2021 was $113.1 million, consistent with the second quarter of 2021 and up 1.2% from the third quarter of 2020. Overall, noninterest expense, adjusted, to average assets, excluding PPP loans, was 2.10% for the second quarter of 2021, down 12 and 9 basis points from the second quarter of 2021 and third quarter of 2020, respectively.

Salaries and employee benefits decreased compared to the second quarter of 2021 driven primarily by lower pension plan lump-sum payments to retired employees and lower commissions resulting from sales of 1-4 family mortgage loans in the secondary market. Compared to the third quarter of 2020, salaries and employee benefits decreased due mainly to ongoing benefits of optimization strategies, partially offset by higher compensation accruals and merit increases. Other expenses increased compared to both prior periods due to higher servicing fees from purchases of consumer loans and other miscellaneous expenses.

Optimization costs primarily include valuation adjustments related to locations identified for closure, modernization of our ATM network, advisory fees, employee severance, and other expenses associated with locations identified for closure.

Acquisition and integration related expenses for the third and second quarters of 2021 resulted primarily from the pending merger with Old National and for the third quarter of 2020 resulted from the acquisition of Park Bank.

LOAN PORTFOLIO AND ASSET QUALITY

Loan Portfolio Composition
(Dollar amounts in thousands)

		As of												September 30, 2021 Percent Change From
		September 30, 2021				June 30, 2021				September 30, 2020				June 30, 2021			September 30, 2020
Commercial and industrial		$	4,705,458			$	4,608,148			$	4,635,571			2.1			1.5
Agricultural		349,159				342,834				377,466				1.8			(7.5	)
Commercial real estate:
Office, retail, and industrial		1,765,592				1,807,428				1,950,406				(2.3	)		(9.5	)
Multi-family		1,082,941				1,012,722				868,293				6.9			24.7
Construction		595,204				577,338				631,607				3.1			(5.8	)
Other commercial real estate		1,408,955				1,461,370				1,452,994				(3.6	)		(3.0	)
Total commercial real estate		4,852,692				4,858,858				4,903,300				(0.1	)		(1.0	)
Total corporate loans, excluding PPP loans		9,907,309				9,809,840				9,916,337				1.0			(0.1	)
PPP loans		384,100				705,915				1,196,538				(45.6	)		(67.9	)
Total corporate loans		10,291,409				10,515,755				11,112,875				(2.1	)		(7.4	)
Home equity		591,126				629,367				827,746				(6.1	)		(28.6	)
1-4 family mortgages		3,332,732				3,287,773				2,287,555				1.4			45.7
Installment		573,465				602,324				425,012				(4.8	)		34.9
Total consumer loans		4,497,323				4,519,464				3,540,313				(0.5	)		27.0
Total loans		$	14,788,732			$	15,035,219			$	14,653,188			(1.6	)		0.9

Total loans includes loans originated under the PPP loan programs, which totaled $384.1 million, $705.9 million, and $1.2 billion as of September 30, 2021, June 30, 2021, and September 30, 2020, respectively. Excluding these loans, total loans were up 2% annualized from June 30, 2021 and 7% from September 30, 2020. Strong production and line usage within our sector-based lending businesses drove the 3.9% annualized total corporate loan growth, excluding PPP loans, compared to the second quarter of 2021. Compared to the third quarter of 2020, strong production and line usage in corporate loans, excluding PPP loans, was offset by higher paydowns.

Consumer loans compared to both prior periods were impacted by purchases of 1-4 family mortgages, as well as strong production in the 1-4 family mortgages portfolio, which offset higher prepayments. In addition, consumer loans compared to the third quarter of 2020 were impacted by purchases of installment loans.

Allowance for Credit Losses
(Dollar amounts in thousands)

		As of or for the Quarters Ended												September 30, 2021 Percent Change From
		September 30, 2021				June 30, 2021				September 30, 2020				June 30, 2021			September 30, 2020
ACL, excluding PCD loans		$	195,903			$	200,640			$	209,988			(2.4	)		(6.7	)
PCD loan ACL		18,963				22,586				36,885				(16.0	)		(48.6	)
Total ACL		$	214,866			$	223,226			$	246,873			(3.7	)		(13.0	)
Provision for credit losses		$	—			$	—			$	15,927			N/M			N/M
ACL to total loans		1.45		%		1.48		%		1.68		%
ACL to total loans, excluding PPP loans(1)		1.49		%		1.56		%		1.83		%
ACL to non-accrual loans		243.94		%		179.32		%		171.95		%

N/M – Not meaningful.

⁽¹⁾ This ratio excludes PPP loans that are fully guaranteed by the Small Business Administration ("SBA"). As a result, no allowance for credit losses is associated with these loans. See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

The ACL was $214.9 million or 1.45% of total loans as of September 30, 2021, decreasing $8.4 million from June 30, 2021 and $32.0 million compared to September 30, 2020. Excluding the impact of PPP loans, ACL to total loans was 1.49% as of September 30, 2021, compared to 1.56% and 1.83% as of June 30, 2021 and September 30, 2020, respectively. The decrease from both prior periods reflects net charge-offs on PCD loans that previously had an ACL established upon acquisition, net charge-offs on loans that previously had specific allowances for loan losses established, and an improving credit environment.

Asset Quality
(Dollar amounts in thousands)

		As of												September 30, 2021 Percent Change From
		September 30, 2021				June 30, 2021				September 30, 2020				June 30, 2021			September 30, 2020
Non-accrual loans, excluding PCD loans(1)		$	64,166			$	101,381			$	103,582			(36.7	)		(38.1	)
Non-accrual PCD loans		23,917				23,101				39,990				3.5			(40.2	)
Total non-accrual loans		88,083				124,482				143,572				(29.2	)		(38.6	)
90 days or more past due loans, still accruing interest(1)		1,293				878				3,781				47.3			(65.8	)
Total non-performing loans, ("NPLs")		89,376				125,360				147,353				(28.7	)		(39.3	)
Accruing troubled debt restructurings ("TDRs")		539				782				841				(31.1	)		(35.9	)
Foreclosed assets(2)		26,375				26,732				15,299				(1.3	)		72.4
Total non-performing assets ("NPAs")		$	116,290			$	152,874			$	163,493			(23.9	)		(28.9	)
30-89 days past due loans		$	30,718			$	21,051			$	21,551			45.9			42.5
Special mention loans(3)		$	330,218			$	343,547			$	395,295			(3.9	)		(16.5	)
Substandard loans(3)		351,192				325,727				311,430				7.8			12.8
Total performing loans classified as substandard and special mention(3)		$	681,410			$	669,274			$	706,725			1.8			(3.6	)
Non-accrual loans to total loans:
Non-accrual loans to total loans		0.60		%		0.83		%		0.98		%
Non-accrual loans to total loans, excluding PPP loans(1)(4)		0.61		%		0.87		%		1.07		%
Non-accrual loans to total loans, excluding PCD and PPP loans(1)(4)		0.45		%		0.72		%		0.78		%
Non-performing loans to total loans:
NPLs to total loans		0.60		%		0.83		%		1.01		%
NPLs to total loans, excluding PPP loans(1)(4)		0.62		%		0.87		%		1.10		%
NPLs to total loans, excluding PCD and PPP loans(1)(4)		0.46		%		0.72		%		0.81		%
Non-performing assets to total loans plus foreclosed assets:
NPAs to total loans plus foreclosed assets		0.78		%		1.01		%		1.11		%
NPAs to total loans plus foreclosed assets, excluding PPP loans(1)(4)		0.81		%		1.06		%		1.21		%
NPAs to total loans plus foreclosed assets, excluding PCD and PPP loans(1)(4)		0.65		%		0.92		%		0.93		%
Performing loans classified as substandard and special mention to corporate loans:
Performing loans classified as substandard and special mention to corporate loans(3)		6.62		%		6.36		%		6.36		%
Performing loans classified as substandard and special mention to corporate loans, excluding PPP loans(3)		6.88		%		6.82		%		7.13		%

⁽¹⁾ See the "Non-GAAP Financial Information" section presented later in this release for a discussion of this non-GAAP financial measure.

⁽²⁾ Foreclosed assets consists of OREO and other foreclosed assets acquired in partial or total satisfaction of defaulted loans. Other foreclosed assets are included in other assets in the Consolidated Statements of Financial Condition.

⁽³⁾ Performing loans classified as substandard and special mention excludes accruing TDRs.

⁽⁴⁾ This ratio excludes PPP loans that are fully guaranteed by the SBA. As a result, no allowance for credit losses is associated with these loans.

NPAs represented 0.78% of total loans and foreclosed assets at September 30, 2021 compared to 1.01% and 1.11% at June 30, 2021 and September 30, 2020, respectively. Excluding the impact of PCD and PPP loans, NPAs to total loans plus foreclosed assets was 0.65% at September 30, 2021, compared to 0.92% at June 30, 2021 and 0.93% at September 30, 2020, reflective of the final resolution of certain corporate credits and normal fluctuations that occur on a quarterly basis. In addition, one corporate loan relationship was transferred from non-accrual loans to foreclosed assets during the first nine months of 2021.

Performing loans classified as substandard and special mention were $681 million for the third quarter of 2021 compared to $669 million and $707 million at June 30, 2021 and September 30, 2020, respectively. The increase from the second quarter of 2021 resulted from normal fluctuations that occur on a quarterly basis. The decrease from the third quarter of 2020 was due primarily to the payoff of certain corporate credits in addition to upgrade and downgrade activity.

Charge-Off Data
(Dollar amounts in thousands)

		Quarters Ended
		September 30, 2021				% of Total			June 30, 2021				% of Total			September 30, 2020				% of Total
Net loan charge-offs(1)
Commercial and industrial		$	5,002			59.8			$	14,733			71.0			$	5,470		34.7
Agricultural