First Merchants Corporation Announces 2021 Record Results

MUNCIE, Ind., Jan. 27, 2022 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) has reported fourth quarter 2021 net income of $47.7 million compared to $45.1 million during the same period in 2020. Earnings per share for the period totaled $.89 per share compared to the fourth quarter 2020 result of $.83 per share. Net income for the year ended December 31, 2021 totaled $205.5 million, compared to $148.6 million during the same period in 2020. Year-to-date earnings per share totaled $3.81 compared to $2.74 in 2020.

Total assets equaled $15.5 billion as of year-end and loans totaled $9.3 billion. The Corporation experienced organic loan growth of $566 million, or 6.6 percent, during 2021. This was offset by the forgiveness of Paycheck Protection Program (“PPP”) loans of $560 million, resulting in net loan growth of $6 million. Investments increased $1.4 billion, or 43.8 percent, during the year and now total $4.5 billion. Total deposits equaled $12.7 billion as of year-end and increased by $1.4 billion, or 12.1 percent, during 2021.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.4 million as of year-end, or 2.11 percent of total loans. Net charge-offs for the quarter totaled $4.6 million and no provision expense was recorded during the quarter or during the year ended 2021. Provision expense taken during the three and twelve months ended December 31, 2020 of $4.5 million and $58.7 million, respectively, reflected our view of increased credit risk in 2020 related to the COVID-19 pandemic. An increase of $74.1 million in the ACL was also recorded on January 1, 2021 reflecting the adoption of the current expected credit losses (CECL) model. Non-accrual loans totaled $43.1 million as of year-end.

Mark Hardwick, Chief Executive Officer, stated, “2021 proved to be a record year on many levels, including total assets, loans, deposits, net income and earnings per share. Our employees, customers and communities showed an incredible amount of toughness, determination, teamwork and compassion for one another during a difficult year. First Merchants’ future is bright because of this special combination of heart and grit.” Hardwick also added, “It’s an honor to lead this First Merchants team and to be part of the dynamic markets that we serve.”

Net-interest income totaled $410.7 million for the year, an increase of $28.6 million or 7.5 percent, in the face of a net-interest margin decline of 11 basis points to 3.18 percent, reflecting an asset sensitive balance sheet. Yield on earning assets declined by 40 basis points totaling 3.44 percent offset by a decline of 29 basis points in the cost of supporting liabilities, which totaled 26 basis points for the year-ended 2021. Yield on earning assets for the fourth quarter totaled 3.29 percent with cost of supporting liabilities totaling 25 basis points, resulting in a margin of 3.04 percent. PPP loans contributed 8 basis points to margin during the fourth quarter of 2021, which was a decline of 9 basis points from the third quarter 2021 and a decline of 8 basis points from the fourth quarter of 2020, as the pace of PPP loan forgiveness slowed.

Non-interest income totaled $109.3 million for the year, a $0.6 million decline from 2020. Customer-related line items accounted for an increase of $2.6 million, or 3 percent, and was offset by a decline of $6.2 million on the gains on sales of securities. Fiduciary and wealth management fees hit a record high of $28.4 million for 2021, which included an increase of $1 million from the acquisition of Hoosier Trust Company. This was offset by the headwinds of the full year impact of the Durbin Amendment adoption on card payment fees which was effective July of 2020.

Non-interest expense totaled $279.2 million for the year ended 2021, a $15.8 million increase from 2020. The increase is primarily due to higher salaries, incentives, and employee benefits costs.

The Corporation’s loan to deposit ratio now totals 73 percent and loan to asset ratio totals 60 percent. Additionally, the Corporation’s total risk-based capital ratio equaled 13.92 percent, common equity tier 1 capital ratio equaled 11.68 percent, and the tangible common equity ratio totaled 9.01 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, January 27, 2022.

To participate, dial (Toll Free) 877-806-2932 and reference Conference ID 2169777. International callers please call +1 478-219-0639.

In order to view the webcast and presentation slides, please go to https://edge.media-server.com/mmc/p/i8985qq2 during the time of the call. A replay of the webcast will be available until January 27, 2023.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements of First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity, credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

SOURCE: First Merchants Corporation, Muncie, Indiana

For more information, contact:
Nicole M. Weaver, Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	December 31,
		2021				2020
ASSETS
Cash and cash equivalents	$	167,146			$	192,896
Interest-bearing deposits		474,154				392,305
Investment securities, net of allowance for credit losses of $245,000 and $0		4,524,353				3,146,787
Loans held for sale		11,187				3,966
Loans		9,241,861				9,243,174
Less: Allowance for credit losses - loans		(195,397	)			(130,648	)
Net loans		9,046,464				9,112,526
Premises and equipment		105,655				111,062
Federal Home Loan Bank stock		28,736				28,736
Interest receivable		57,187				53,948
Goodwill and other intangibles		570,860				572,893
Cash surrender value of life insurance		291,041				292,745
Other real estate owned		558				940
Tax asset, deferred and receivable		35,641				12,340
Other assets		140,167				146,066
TOTAL ASSETS	$	15,453,149			$	14,067,210
LIABILITIES
Deposits:
Noninterest-bearing	$	2,709,646			$	2,298,138
Interest-bearing		10,022,931				9,063,472
Total Deposits		12,732,577				11,361,610
Borrowings:
Securities sold under repurchase agreements		181,577				177,102
Federal Home Loan Bank advances		334,055				389,430
Subordinated debentures and other borrowings		118,618				118,380
Total Borrowings		634,250				684,912
Interest payable		2,762				3,287
Other liabilities		170,989				141,756
Total Liabilities		13,540,578				12,191,565
STOCKHOLDERS' EQUITY
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 shares
Issued and outstanding - 125 shares		125				125
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 53,410,411 and 53,922,359 shares		6,676				6,740
Additional paid-in capital		985,818				1,005,366
Retained earnings		864,839				788,578
Accumulated other comprehensive income		55,113				74,836
Total Stockholders' Equity		1,912,571				1,875,645
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	15,453,149			$	14,067,210

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended							Twelve Months Ended
(Dollars In Thousands, Except Per Share Amounts)	December 31,							December 31,
	2021			2020				2021			2020
INTEREST INCOME
Loans receivable:
Taxable	$	80,583		$	90,138			$	338,009		$	358,264
Tax-exempt		5,635			5,414				22,110			21,483
Investment securities:
Taxable		8,028			5,263				29,951			24,440
Tax-exempt		15,411			12,056				55,331			42,341
Deposits with financial institutions		173			139				634			938
Federal Home Loan Bank stock		163			214				597			1,042
Total Interest Income		109,993			113,224				446,632			448,508
INTEREST EXPENSE
Deposits		5,589			7,509				23,319			51,740
Federal funds purchased		1			2				5			120
Securities sold under repurchase agreements		75			77				314			604
Federal Home Loan Bank advances		1,389			1,656				5,672			6,973
Subordinated debentures and other borrowings		1,666			1,669				6,642			6,944
Total Interest Expense		8,720			10,913				35,952			66,381
NET INTEREST INCOME		101,273			102,311				410,680			382,127
Provision for credit losses - loans		—			4,482				—			58,673
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		101,273			97,829				410,680			323,454
OTHER INCOME
Service charges on deposit accounts		6,462			5,508				23,571			20,999
Fiduciary and wealth management fees		7,078			6,251				28,362			23,747
Card payment fees		3,937			3,502				16,619			19,502
Net gains and fees on sales of loans		3,423			5,393				19,689			18,271
Derivative hedge fees		1,562			2,281				3,850			6,977
Other customer fees		361			394				1,490			1,497
Earnings on cash surrender value of life insurance		2,051			1,283				7,060			5,140
Net realized gains on sales of available for sale securities		358			2,398				5,674			11,895
Other income		615			473				3,008			1,898
Total Other Income		25,847			27,483				109,323			109,926
OTHER EXPENSES
Salaries and employee benefits		42,432			41,809				166,995			155,937
Net occupancy		5,644			9,653				23,326			26,756
Equipment		4,994			5,555				19,401			19,344
Marketing		1,840			1,763				5,762			6,609
Outside data processing fees		4,581			3,839				18,317			14,432
Printing and office supplies		356			307				1,217			1,304
Intangible asset amortization		1,463			1,476				5,747			5,987
FDIC assessments		1,862			1,560				6,243			5,804
Other real estate owned and foreclosure expenses		171			(1,576	)			992			330
Professional and other outside services		3,627			2,836				11,913			8,901
Other expenses		5,466			5,314				19,300			18,001
Total Other Expenses		72,436			72,536				279,213			263,405
INCOME BEFORE INCOME TAX		54,684			52,776				240,790			169,975
Income tax expense		6,951			7,641				35,259			21,375
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	47,733		$	45,135			$	205,531		$	148,600
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.89		$	0.83			$	3.82		$	2.75
Diluted Net Income Available to Common Stockholders	$	0.89		$	0.83			$	3.81		$	2.74
Cash Dividends Paid	$	0.29		$	0.26			$	1.13		$	1.04
Average Diluted Shares Outstanding (in thousands)		53,660			54,050				53,984			54,220

FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
		2021				2020				2021				2020
NET CHARGE-OFFS	$	4,575			$	560			$	9,306			$	8,309
AVERAGE BALANCES:
Total Assets	$	15,298,655			$	13,968,047			$	14,830,397			$	13,466,269
Total Loans		9,076,652				9,240,304				9,170,650				9,051,155
Total Earning Assets		14,053,310				12,663,803				13,579,113				12,123,317
Total Deposits		12,647,737				11,283,040				12,176,231				10,728,106
Total Stockholders' Equity		1,890,229				1,856,896				1,866,632				1,825,135
FINANCIAL RATIOS:
Return on Average Assets		1.25	%			1.29	%			1.39	%			1.10	%
Return on Average Stockholders' Equity		10.10				9.72				11.01				8.14
Return on Average Common Stockholders' Equity		10.10				9.72				11.01				8.14
Average Earning Assets to Average Assets		91.86				90.66				91.56				90.03
Allowance for Credit Losses - Loans as % of Total Loans		2.11				1.41				2.11				1.41
Net Charge-offs as % of Average Loans (Annualized)		0.20				0.02				0.10				0.09
Average Stockholders' Equity to Average Assets		12.36				13.29				12.59				13.55
Tax Equivalent Yield on Average Earning Assets		3.29				3.72				3.44				3.84
Interest Expense/Average Earning Assets		0.25				0.34				0.26				0.55
Net Interest Margin (FTE) on Average Earning Assets		3.04				3.38				3.18				3.29
Efficiency Ratio		53.49				55.01				50.94				51.71
Tangible Common Book Value Per Share	$	25.21			$	24.27			$	25.21			$	24.27

NON-PERFORMING ASSETS
(Dollars In Thousands)	December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
Non-Accrual Loans	$	43,062			$	51,502			$	57,556			$	57,923			$	61,471
Renegotiated Loans		329				439				629				655				3,240
Non-Performing Loans (NPL)		43,391				51,941				58,185				58,578				64,711
Other Real Estate Owned and Repossessions		558				698				601				604				940
Non-Performing Assets (NPA)		43,949				52,639				58,786				59,182				65,651
90+ Days Delinquent		963				157				183				1,093				746
NPAs & 90 Day Delinquent	$	44,912			$	52,796			$	58,969			$	60,275			$	66,397
Allowance for Credit Losses - Loans	$	195,397			$	199,972			$	199,775			$	201,082			$	130,648
Quarterly Net Charge-offs		4,575				(197	)			1,307				3,621				560
NPAs / Actual Assets %		0.28	%			0.35	%			0.39	%			0.40	%			0.47	%
NPAs & 90 Day / Actual Assets %		0.29	%			0.35	%			0.40	%			0.41	%			0.47	%
NPAs / Actual Loans and OREO %		0.47	%			0.58	%			0.64	%			0.63	%			0.71	%
Allowance for Credit Losses - Loans / Actual Loans (%)		2.11	%			2.21	%			2.19	%			2.16	%			1.41	%
Net Charge-offs as % of Average Loans (Annualized)		0.20	%			(0.01	)%			0.06	%			0.16	%			0.02	%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
ASSETS
Cash and cash equivalents	$	167,146			$	169,261			$	167,596			$	187,901			$	192,896
Interest-bearing deposits		474,154				369,447				438,863				392,806				392,305
Investment securities, net of allowance for credit losses		4,524,353				4,445,516				4,148,314				3,700,857				3,146,787
Loans held for sale		11,187				5,990				18,582				4,430				3,966
Loans		9,241,861				9,041,576				9,121,250				9,318,228				9,243,174
Less: Allowance for credit losses - loans		(195,397	)			(199,972	)			(199,775	)			(201,082	)			(130,648	)
Net loans		9,046,464				8,841,604				8,921,475				9,117,146				9,112,526
Premises and equipment		105,655				104,814				103,822				109,432				111,062
Federal Home Loan Bank stock		28,736				28,736				28,736				28,736				28,736
Interest receivable		57,187				53,079				54,173				54,662				53,948
Goodwill and other intangibles		570,860				572,323				573,786				571,536				572,893
Cash surrender value of life insurance		291,041				291,825				294,462				293,766				292,745
Other real estate owned		558				698				601				604				940
Tax asset, deferred and receivable		35,641				39,504				36,924				40,163				12,340
Other assets		140,167				137,928				135,763				127,027				146,066
TOTAL ASSETS	$	15,453,149			$	15,060,725			$	14,923,097			$	14,629,066			$	14,067,210
LIABILITIES
Deposits:
Noninterest-bearing	$	2,709,646			$	2,554,323			$	2,479,853			$	2,494,891			$	2,298,138
Interest-bearing		10,022,931				9,794,366				9,723,547				9,456,889				9,063,472
Total Deposits		12,732,577				12,348,689				12,203,400				11,951,780				11,361,610
Borrowings:
Securities sold under repurchase agreements		181,577				183,589				146,904				185,721				177,102
Federal Home Loan Bank advances		334,055				334,149				334,243				359,337				389,430
Subordinated debentures and other borrowings		118,618				118,558				118,498				118,439				118,380
Total Borrowings		634,250				636,296				599,645				663,497				684,912
Interest payable		2,762				3,736				2,929				4,020				3,287
Other liabilities		170,989				203,914				245,323				203,913				141,756
Total Liabilities		13,540,578				13,192,635				13,051,297				12,823,210				12,191,565
STOCKHOLDERS' EQUITY
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 shares
Issued and outstanding		125				125				125				125				125
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding		6,676				6,689				6,747				6,744				6,740
Additional paid-in capital		985,818				988,659				1,009,182				1,007,300				1,005,366
Retained earnings		864,839				832,728				795,666				755,877				788,578
Accumulated other comprehensive income		55,113				39,889				60,080				35,810				74,836
Total Stockholders' Equity		1,912,571				1,868,090				1,871,800				1,805,856				1,875,645
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	15,453,149			$	15,060,725			$	14,923,097			$	14,629,066			$	14,067,210

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
INTEREST INCOME
Loans receivable:
Taxable	$	80,583			$	85,319			$	87,002			$	85,105			$	90,138
Tax-exempt		5,635				5,591				5,545				5,339				5,414
Investment securities:
Taxable		8,028				7,788				7,440				6,695				5,263
Tax-exempt		15,411				14,464				13,071				12,385				12,056
Deposits with financial institutions		173				218				129				114				139
Federal Home Loan Bank stock		163				168				88				178				214
Total Interest Income		109,993				113,548				113,275				109,816				113,224
INTEREST EXPENSE
Deposits		5,589				5,707				5,823				6,200				7,509
Federal funds purchased		1				—				2				2				2
Securities sold under repurchase agreements		75				77				75				87				77
Federal Home Loan Bank advances		1,389				1,389				1,452				1,442				1,656
Subordinated debentures and other borrowings		1,666				1,660				1,659				1,657				1,669
Total Interest Expense		8,720				8,833				9,011				9,388				10,913
NET INTEREST INCOME		101,273				104,715				104,264				100,428				102,311
Provision for credit losses - loans		—				—				—				—				4,482
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		101,273				104,715				104,264				100,428				97,829
OTHER INCOME
Service charges on deposit accounts		6,462				6,249				5,596				5,264				5,508
Fiduciary and wealth management fees		7,078				7,352				7,510				6,422				6,251
Card payment fees		3,937				4,156				4,159				4,367				3,502
Net gains and fees on sales of loans		3,423				3,955				8,325				3,986				5,393
Derivative hedge fees		1,562				1,028				943				317				2,281
Other customer fees		361				393				368				368				394
Earnings on cash surrender value of life insurance		2,051				2,468				1,205				1,336				1,283
Net realized gains on sales of available for sale securities		358				1,756				1,761				1,799				2,398
Other income		615				1,144				1,017				232				473
Total Other Income		25,847				28,501				30,884				24,091				27,483
OTHER EXPENSES
Salaries and employee benefits		42,432				43,314				42,438				38,811				41,809
Net occupancy		5,644				5,576				5,615				6,491				9,653
Equipment		4,994				4,529				4,848				5,030				5,555
Marketing		1,840				1,676				1,122				1,124				1,763
Outside data processing fees		4,581				4,794				4,698				4,244				3,839
Printing and office supplies		356				265				313				283				307
Intangible asset amortization		1,463				1,463				1,464				1,357				1,476
FDIC assessments		1,862				1,552				1,461				1,368				1,560
Other real estate owned and foreclosure expenses		171				(91	)			178				734				(1,576	)
Professional and other outside services		3,627				2,767				2,976				2,543				2,836
Other expenses		5,466				5,539				4,182				4,113				5,314
Total Other Expenses		72,436				71,384				69,295				66,098				72,536
INCOME BEFORE INCOME TAX		54,684				61,832				65,853				58,421				52,776
Income tax expense		6,951				9,062				10,294				8,952				7,641
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	47,733			$	52,770			$	55,559			$	49,469			$	45,135
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.89			$	0.98			$	1.03			$	0.92			$	0.83
Diluted Net Income Available to Common Stockholders	$	0.89			$	0.98			$	1.03			$	0.91			$	0.83
Cash Dividends Paid	$	0.29			$	0.29			$	0.29			$	0.26			$	0.26
Average Diluted Shares Outstanding (in thousands)		53,660				53,960				54,184				54,134				54,050
FINANCIAL RATIOS:
Return on Average Assets		1.25	%			1.41	%			1.51	%			1.39	%			1.29	%
Return on Average Stockholders' Equity		10.10				11.17				12.04				10.75				9.72
Return on Average Common Stockholders' Equity		10.10				11.17				12.04				10.75				9.72
Average Earning Assets to Average Assets		91.86				91.57				91.87				91.43				90.66
Allowance for Credit Losses - Loans as % of Total Loans		2.11				2.21				2.19				2.16				1.41
Net Charge-offs as % of Average Loans (Annualized)		0.20				(0.01	)			0.06				0.16				0.02
Average Stockholders' Equity to Average Assets		12.36				12.59				12.51				12.92				13.29
Tax Equivalent Yield on Average Earning Assets		3.29				3.46				3.49				3.52				3.72
Interest Expense/Average Earning Assets		0.25				0.26				0.27				0.29				0.34
Net Interest Margin (FTE) on Average Earning Assets		3.04				3.20				3.22				3.23				3.38
Efficiency Ratio		53.49				51.18				48.91				50.23				55.01
Tangible Common Book Value Per Share	$	25.21			$	24.31			$	24.15			$	22.98			$	24.27

LOANS
(Dollars In Thousands)	December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
Commercial and industrial loans	$	2,714,565			$	2,573,615			$	2,671,076			$	2,876,212			$	2,776,699
Agricultural land, production and other loans to farmers		246,442				240,686				235,020				245,631				281,884
Real estate loans:
Construction		523,066				521,889				491,200				541,224				484,723
Commercial real estate, non-owner occupied		2,135,459				2,150,387				2,263,497				2,178,832				2,220,949
Commercial real estate, owner occupied		986,720				952,441				953,501				950,038				958,501
Residential		1,159,127				1,154,373				1,127,442				1,239,925				1,234,741
Home equity		523,754				531,307				489,997				482,229				508,259
Individuals' loans for household and other personal expenditures		146,092				135,093				130,819				126,387				129,479
Public finance and other commercial loans		806,636				781,785				758,698				677,750				647,939
Loans		9,241,861				9,041,576				9,121,250				9,318,228				9,243,174
Allowance for credit losses - loans		(195,397	)			(199,972	)			(199,775	)			(201,082	)			(130,648	)
NET LOANS	$	9,046,464			$	8,841,604			$	8,921,475			$	9,117,146			$	9,112,526

DEPOSITS
(Dollars In Thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
		2021			2021			2021			2021			2020
Demand deposits	$	7,704,190		$	7,317,399		$	7,261,603		$	7,245,850		$	6,821,152
Savings deposits		4,334,802			4,301,483			4,157,552			3,857,624			3,661,713
Certificates and other time deposits of $100,000 or more		273,379			283,396			304,394			332,745			346,194
Other certificates and time deposits		389,752			404,010			423,922			449,655			459,168
Brokered deposits		30,454			42,401			55,929			65,906			73,383
TOTAL DEPOSITS	$	12,732,577		$	12,348,689		$	12,203,400		$	11,951,780		$	11,361,610

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Three Months Ended
	December 31, 2021									December 31, 2020
	Average Balance			Interest  Income / Expense			Average Rate			Average Balance			Interest  Income / Expense			Average Rate
Assets:
Interest-bearing deposits	$	558,677		$	173		0.12	%		$	437,766		$	139		0.13	%
Federal Home Loan Bank stock		28,736			163		2.27				28,736			214		2.98
Investment Securities: (1)
Taxable		1,936,519			8,028		1.66				1,222,916			5,263		1.72
Tax-Exempt (2)		2,452,726			19,508		3.18				1,734,081			15,261		3.52
Total Investment Securities		4,389,245			27,536		2.51				2,956,997			20,524		2.78
Loans held for sale		20,688			196		3.79				19,103			200		4.19
Loans: (3)
Commercial		6,703,241			65,867		3.93				6,925,491			73,530		4.25
Real Estate Mortgage		889,571			7,866		3.54				911,042			9,482		4.16
Installment		711,309			6,654		3.74				698,619			6,925		3.96
Tax-Exempt (2)		751,843			7,133		3.79				686,049			6,854		4.00
Total Loans		9,076,652			87,716		3.87				9,240,304			96,991		4.20
Total Earning Assets		14,053,310			115,588		3.29	%			12,663,803			117,868		3.72	%
Total Non-Earning Assets		1,245,345									1,304,244
Total Assets	$	15,298,655								$	13,968,047
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits	$	4,912,556		$	3,637		0.30	%		$	4,393,991		$	3,888		0.35	%
Money market deposits		2,518,612			809		0.13				2,051,985			1,164		0.23
Savings deposits		1,828,631			461		0.10				1,613,886			634		0.16
Certificates and other time deposits		706,617			682		0.39				961,187			1,823		0.76
Total Interest-bearing Deposits		9,966,416			5,589		0.22				9,021,049			7,509		0.33
Borrowings		620,398			3,131		2.02				683,068			3,404		1.99
Total Interest-bearing Liabilities		10,586,814			8,720		0.33				9,704,117			10,913		0.45
Noninterest-bearing deposits		2,681,321									2,261,991
Other liabilities		140,291									145,043
Total Liabilities		13,408,426									12,111,151
Stockholders' Equity		1,890,229									1,856,896
Total Liabilities and Stockholders' Equity	$	15,298,655			8,720					$	13,968,047			10,913
Net Interest Income (FTE)				$	106,868								$	106,955
Net Interest Spread (FTE) (4)							2.96	%								3.27	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets							3.29	%								3.72	%
Interest Expense / Average Earning Assets							0.25	%								0.34	%
Net Interest Margin (FTE) (5)							3.04	%								3.38	%
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2021 and 2020. These totals equal $5,595 and $4,644 for the three months ended December 31, 2021 and 2020, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Twelve Months Ended
	December 31, 2021									December 31, 2020
	Average Balance			Interest  Income / Expense			Average Rate			Average Balance			Interest  Income / Expense			Average Rate
Assets:
Interest-bearing deposits	$	521,637		$	634		0.12	%		$	319,686		$	938		0.29	%
Federal Home Loan Bank stock		28,736			597		2.08				28,736			1,042		3.63
Investment Securities: (1)
Taxable		1,751,910			29,951		1.71				1,282,827			24,440		1.91
Tax-Exempt (2)		2,106,180			70,039		3.33				1,440,913			53,596		3.72
Total Investment Securities		3,858,090			99,990		2.59				2,723,740			78,036		2.87
Loans held for sale		19,190			747		3.89				18,559			781		4.21
Loans: (3)
Commercial		6,818,968			276,368		4.05				6,755,215			286,773		4.25
Real Estate Mortgage		916,314			34,783		3.80				889,083			40,002		4.50
Installment		683,925			26,111		3.82				718,815			30,708		4.27
Tax-Exempt (2)		732,253			27,987		3.82				669,483			27,194		4.06
Total Loans		9,170,650			365,996		3.99				9,051,155			385,458		4.26
Total Earning Assets		13,579,113			467,217		3.44	%			12,123,317			465,474		3.84	%
Total Non-Earning Assets		1,251,284									1,342,952
Total Assets	$	14,830,397								$	13,466,269
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits	$	4,769,482		$	14,512		0.30	%		$	4,009,566		$	20,239		0.50	%
Money market deposits		2,351,803			3,203		0.14				1,769,478			7,810		0.44
Savings deposits		1,754,972			1,886		0.11				1,534,069			3,641		0.24
Certificates and other time deposits		783,733			3,718		0.47				1,346,967			20,050		1.49
Total Interest-bearing Deposits		9,659,990			23,319		0.24				8,660,080			51,740		0.60
Borrowings		639,791			12,633		1.97				768,238			14,641		1.91
Total Interest-bearing Liabilities		10,299,781			35,952		0.35				9,428,318			66,381		0.70
Noninterest-bearing deposits		2,516,241									2,068,026
Other liabilities		147,743									144,790
Total Liabilities		12,963,765									11,641,134
Stockholders' Equity		1,866,632									1,825,135
Total Liabilities and Stockholders' Equity	$	14,830,397			35,952					$	13,466,269			66,381
Net Interest Income (FTE)				$	431,265								$	399,093
Net Interest Spread (FTE) (4)							3.09	%								3.14	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets							3.44	%								3.84	%
Interest Expense / Average Earning Assets							0.26	%								0.55	%
Net Interest Margin (FTE) (5)							3.18	%								3.29	%
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2021 and 2020. These totals equal $20,585 and $16,966 for the twelve months ended December 31, 2021 and 2020, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.