First Merchants Corporation Announces Third Quarter 2023 Earnings Per Share

MUNCIE, Ind., Oct. 26, 2023 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)

Third Quarter 2023 Highlights:

• Net income available to common stockholders was $55.9 million and diluted earnings per common share totaled $0.94, compared to $63.3 million and $1.08 in the third quarter of 2022, and $60.4 million and $1.02 in the second quarter of 2023.
• Strong capital position with Common Equity Tier 1 Capital Ratio of 11.26 percent.
• Total loans grew $4.9 million, or 0.2 percent annualized on a linked quarter basis, and $743.6 million, or 6.4 percent during the last twelve months when excluding the impact of non-relationship based commercial loan sales that occurred during the prior quarter of $116.6 million.
• Total deposits increased $65.4 million, or 1.8 percent annualized on a linked quarter basis, and $211.8 million, or 1.5 percent during the last twelve months.
• Nonaccrual loans totaled $53.1 million compared to $69.2 million on a linked quarter basis.
• The efficiency ratio totaled 53.91 percent for the quarter.

Mark Hardwick, Chief Executive Officer, stated, “First Merchants continued to deliver top quartile operating returns while tactically managing the inflationary interest rate environment. Our teams are focused on meeting the demands of our customer base while planning for continued 2024 growth and performance.”

Third Quarter Financial Results:

First Merchants Corporation (the “Corporation”) has reported third quarter 2023 net income available to common stockholders of $55.9 million compared to $63.3 million during the same period in 2022. Diluted earnings per common share for the period totaled $0.94 per share compared to the third quarter of 2022 result of $1.08 per share.

Total assets equaled $18.0 billion as of quarter-end and loans totaled $12.3 billion. During the past twelve months, total loans grew by $743.6 million, or 6.4 percent and were offset by the non-relationship based commercial loan sale of $116.6 million. On a linked quarter basis, loans grew $4.9 million, or 0.2 percent.

Investments, totaling $3.7 billion, decreased $581.0 million, or 13.5 percent, during the last twelve months and decreased $177.8 million, or 18.3 percent annualized on a linked quarter basis. The decline during the quarter was due to $33.2 million of bond sales, $38.2 million of security paydowns and maturities, and the remainder was due to a decline in valuation of available for sale securities.

Total deposits equaled $14.6 billion as of quarter-end and increased by $211.8 million, or 1.5 percent, over the past twelve months. Total deposits increased $65.4 million, or 1.8 percent annualized on a linked quarter basis. During the quarter, commercial and consumer deposits increased $327.8 million which was offset by a reduction in brokered deposits of $133.6 million and municipal deposits of $128.8 million due to seasonality. The loan to deposit ratio declined slightly to 84.0 percent at period end from 84.3 percent in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $205.8 million as of quarter-end, or 1.67 percent of total loans, a decrease of $15.4 million from prior quarter. Loan charge-offs, net of recoveries, for the quarter totaled $20.4 million primarily due to the charge-off of a previously reported nonaccrual loan to a syndicated specialty finance company resulting from an apparent fraud that impacted our borrower's ability to repay. Net charge-offs were offset with provision expense for loans recorded during the quarter of $5.0 million. Reserves for unfunded commitments were reduced by $3.0 million during the quarter and now total $20.3 million. Net provision expense for the quarter totaled $2.0 million. Nonperforming assets to total assets were 0.33 percent for the third quarter of 2023, a decrease of 10 basis points compared to 0.43 percent in the prior quarter.

Net interest income, totaling $133.4 million for the quarter, declined $4.5 million, or 3.2 percent, compared to prior quarter and decreased $6.9 million, or 4.9 percent, compared to the third quarter of 2022. Stated net interest margin on a tax equivalent basis totaling 3.29 percent, declined by 10 basis points compared to the second quarter of 2023 and decreased 26 basis points compared to the third quarter of 2022. During the quarter, increased deposit costs and a continued change in deposit mix offset the increase in earning asset yields reducing net interest margin.

Noninterest income, totaling $27.8 million for the quarter, increased $1.5 million, or 5.8 percent, compared to the second quarter of 2023 but decreased $1.8 million from the third quarter of 2022. The increase over second quarter of 2023 was driven primarily by higher gains on the sales of loans.

Noninterest expense totaled $93.9 million for the quarter, an increase of $1.3 million from the second quarter of 2023. The increase was from higher marketing costs and salaries and employee benefits, partially offset by a decline in professional and other outside service fees.

The Corporation’s total risk-based capital ratio equaled 13.66 percent, common equity tier 1 capital ratio equaled 11.26 percent, and the tangible common equity ratio totaled 7.69 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a third quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, October 26, 2023.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BIf859606184ad4e98a66ef43d61469d2c)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/t8uajbb8) during the time of the call. A replay of the webcast will be available until October 26, 2024.

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.

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

SOURCE: First Merchants Corporation, Muncie, Indiana

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 (including the ability to grow and maintain core deposits and retain large, uninsured deposits), 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.

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	September 30,
		2023				2022
ASSETS
Cash and due from banks	$	125,173			$	119,532
Interest-bearing deposits		348,639				179,593
Investment securities, net of allowance for credit losses of $245,000 and $245,000		3,713,724				4,294,768
Loans held for sale		30,972				25,394
Loans		12,271,422				11,650,002
Less: Allowance for credit losses - loans		(205,782	)			(226,702	)
Net loans		12,065,640				11,423,300
Premises and equipment		132,441				116,306
Federal Home Loan Bank stock		41,797				38,056
Interest receivable		90,011				71,605
Goodwill and other intangibles		741,283				750,713
Cash surrender value of life insurance		306,106				306,932
Other real estate owned		6,480				6,454
Tax asset, deferred and receivable		135,521				142,110
Other assets		258,861				244,222
TOTAL ASSETS	$	17,996,648			$	17,718,985
LIABILITIES
Deposits:
Noninterest-bearing	$	2,554,984			$	3,356,651
Interest-bearing		12,091,592				11,078,174
Total Deposits		14,646,576				14,434,825
Borrowings:
Federal funds purchased		—				185,000
Securities sold under repurchase agreements		152,537				194,482
Federal Home Loan Bank advances		713,384				643,769
Subordinated debentures and other borrowings		158,665				151,301
Total Borrowings		1,024,586				1,174,552
Interest payable		16,473				4,971
Other liabilities		216,369				197,971
Total Liabilities		15,904,004				15,812,319
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares		125				125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized -- 10,000 non-cumulative perpetual shares
Issued and outstanding - 10,000 non-cumulative perpetual shares		25,000				25,000
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 59,398,022 and 59,145,414 shares		7,425				7,393
Additional paid-in capital		1,234,402				1,226,695
Retained earnings		1,132,962				961,542
Accumulated other comprehensive loss		(307,270	)			(314,089	)
Total Stockholders' Equity		2,092,644				1,906,666
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	17,996,648			$	17,718,985

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended								Nine Months Ended
(Dollars In Thousands, Except Per Share Amounts)	September 30,								September 30,
		2023				2022				2023				2022
INTEREST INCOME
Loans receivable:
Taxable	$	191,705			$	128,504			$	550,314			$	314,366
Tax-exempt		8,288				6,500				23,757				18,194
Investment securities:
Taxable		8,590				10,055				26,563				28,937
Tax-exempt		13,947				17,261				44,296				50,348
Deposits with financial institutions		5,884				704				9,685				1,544
Federal Home Loan Bank stock		719				314				2,281				635
Total Interest Income		229,133				163,338				656,896				414,024
INTEREST EXPENSE
Deposits		85,551				16,644				209,437				29,423
Federal funds purchased		—				418				1,420				494
Securities sold under repurchase agreements		797				372				2,624				595
Federal Home Loan Bank advances		6,896				3,493				20,775				6,485
Subordinated debentures and other borrowings		2,506				2,105				7,303				5,780
Total Interest Expense		95,750				23,032				241,559				42,777
NET INTEREST INCOME		133,383				140,306				415,337				371,247
Provision for credit losses		2,000				—				2,000				16,755
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		131,383				140,306				413,337				354,492
NONINTEREST INCOME
Service charges on deposit accounts		7,975				7,165				23,147				21,274
Fiduciary and wealth management fees		7,394				7,221				22,653				22,187
Card payment fees		4,716				4,776				14,425				15,674
Net gains and fees on sales of loans		5,517				2,543				11,548				7,968
Derivative hedge fees		516				700				2,336				3,062
Other customer fees		384				501				1,643				1,573
Earnings on cash surrender value of life insurance		1,761				6,655				5,145				9,659
Net realized gains (losses) on sales of available for sale securities		(1,650	)			481				(4,613	)			1,137
Other income (loss)		1,229				(425	)			2,874				1,257
Total Noninterest Income		27,842				29,617				79,158				83,791
NONINTEREST EXPENSES
Salaries and employee benefits		55,566				56,002				167,778				154,562
Net occupancy		6,837				6,738				20,770				19,573
Equipment		5,698				5,997				18,005				17,797
Marketing		2,369				2,401				4,780				4,551
Outside data processing fees		6,573				6,827				19,290				16,071
Printing and office supplies		333				472				1,150				1,198
Intangible asset amortization		2,182				2,303				6,561				5,972
FDIC assessments		2,981				2,824				7,117				7,940
Other real estate owned and foreclosure expenses		677				328				1,575				626
Professional and other outside services		3,833				4,461				12,191				17,681
Other expenses		6,805				8,025				20,950				20,045
Total Noninterest Expenses		93,854				96,378				280,167				266,016
INCOME BEFORE INCOME TAX		65,371				73,545				212,328				172,267
Income tax expense		9,005				9,793				31,021				20,938
NET INCOME		56,366				63,752				181,307				151,329
Preferred stock dividends		468				469				1,406				938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	55,898			$	63,283			$	179,901			$	150,391
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.95			$	1.08			$	3.04			$	2.63
Diluted Net Income Available to Common Stockholders	$	0.94			$	1.08			$	3.03			$	2.62
Cash Dividends Paid to Common Stockholders	$	0.34			$	0.32			$	1.00			$	0.93
Average Diluted Common Shares Outstanding (in thousands)		59,503				59,339				59,465				57,468

FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended								Nine Months Ended
	September 30,								September 30,
		2023				2022				2023				2022
NET CHARGE-OFFS (RECOVERIES)	$	20,365			$	(427	)		$	22,495			$	(751	)
AVERAGE BALANCES:
Total Assets	$	18,152,239			$	17,770,623			$	18,115,504			$	17,012,930
Total Loans		12,287,632				11,488,203				12,264,787				10,647,950
Total Earning Assets		16,947,669				16,508,914				16,913,965				15,744,040
Total Deposits		14,735,592				14,577,532				14,627,448				14,074,696
Total Stockholders' Equity		2,154,232				2,018,156				2,126,005				1,977,299
FINANCIAL RATIOS:
Return on Average Assets		1.24	%			1.43	%			1.33	%			1.19	%
Return on Average Stockholders' Equity		10.38				12.54				11.28				10.14
Return on Tangible Common Stockholders' Equity		16.54				20.85				18.10				16.22
Average Earning Assets to Average Assets		93.36				92.90				93.37				92.54
Allowance for Credit Losses - Loans as % of Total Loans		1.67				1.94				1.67				1.94
Net Charge-offs as % of Average Loans (Annualized)		0.66				(0.01	)			0.24				(0.01	)
Average Stockholders' Equity to Average Assets		11.87				11.36				11.74				11.62
Tax Equivalent Yield on Average Earning Assets		5.55				4.11				5.32				3.66
Interest Expense/Average Earning Assets		2.26				0.56				1.90				0.36
Net Interest Margin (FTE) on Average Earning Assets		3.29				3.55				3.42				3.30
Efficiency Ratio		53.91				53.34				52.60				54.95
Tangible Common Book Value Per Share	$	22.43			$	19.26			$	22.43			$	19.26

NONPERFORMING ASSETS
(Dollars In Thousands)	September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
Nonaccrual Loans	$	53,102			$	69,240			$	46,576			$	42,324			$	43,508
Troubled Debt Restructures (TDR)		—				—				—				224				195
Nonperforming Loans (NPL)		53,102				69,240				46,576				42,548				43,703
Other Real Estate Owned and Repossessions		6,480				7,685				7,777				6,431				6,454
Nonperforming Assets (NPA)		59,582				76,925				54,353				48,979				50,157
90+ Days Delinquent		89				428				7,032				1,737				764
NPAs & 90 Day Delinquent	$	59,671			$	77,353			$	61,385			$	50,716			$	50,921
Allowance for Credit Losses - Loans	$	205,782			$	221,147			$	223,052			$	223,277			$	226,702
Quarterly Net Charge-offs (Recoveries)		20,365				1,905				225				2,674				(427	)
NPAs / Actual Assets %		0.33	%			0.43	%			0.30	%			0.27	%			0.28	%
NPAs & 90 Day / Actual Assets %		0.33	%			0.43	%			0.34	%			0.28	%			0.29	%
NPAs / Actual Loans and OREO %		0.48	%			0.63	%			0.44	%			0.41	%			0.43	%
Allowance for Credit Losses - Loans / Actual Loans (%)		1.67	%			1.80	%			1.82	%			1.86	%			1.94	%
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)		0.66	%			0.06	%			0.01	%			0.12	%			(0.01)	%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
ASSETS
Cash and due from banks	$	125,173			$	108,975			$	125,818			$	122,594			$	119,532
Interest-bearing deposits		348,639				219,480				352,695				126,061				179,593
Investment securities, net of allowance for credit losses		3,713,724				3,891,491				4,057,389				4,263,788				4,294,768
Loans held for sale		30,972				27,297				9,408				9,094				25,394
Loans		12,271,422				12,270,233				12,241,461				12,003,894				11,650,002
Less: Allowance for credit losses - loans		(205,782	)			(221,147	)			(223,052	)			(223,277	)			(226,702	)
Net loans		12,065,640				12,049,086				12,018,409				11,780,617				11,423,300
Premises and equipment		132,441				114,402				115,857				117,118				116,306
Federal Home Loan Bank stock		41,797				41,842				41,878				38,525				38,056
Interest receivable		90,011				89,784				85,515				85,070				71,605
Goodwill and other intangibles		741,283				743,465				745,647				747,844				750,713
Cash surrender value of life insurance		306,106				307,020				309,090				308,311				306,932
Other real estate owned		6,480				7,685				7,777				6,431				6,454
Tax asset, deferred and receivable		135,521				113,724				103,070				111,222				142,110
Other assets		258,861				254,161				206,355				221,631				244,222
TOTAL ASSETS	$	17,996,648			$	17,968,412			$	18,178,908			$	17,938,306			$	17,718,985
LIABILITIES
Deposits:
Noninterest-bearing	$	2,554,984			$	2,636,017			$	2,964,355			$	3,173,417			$	3,356,651
Interest-bearing		12,091,592				11,945,138				11,738,932				11,209,328				11,078,174
Total Deposits		14,646,576				14,581,155				14,703,287				14,382,745				14,434,825
Borrowings:
Federal funds purchased		—				—				20				171,560				185,000
Securities sold under repurchase agreements		152,537				152,472				179,067				167,413				194,482
Federal Home Loan Bank advances		713,384				723,480				823,577				823,674				643,769
Subordinated debentures and other borrowings		158,665				151,325				151,312				151,298				151,301
Total Borrowings		1,024,586				1,027,277				1,153,976				1,313,945				1,174,552
Interest payable		16,473				13,595				11,979				7,530				4,971
Other liabilities		216,369				200,820				187,218				199,316				197,971
Total Liabilities		15,904,004				15,822,847				16,056,460				15,903,536				15,812,319
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares		125				125				125				125				125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized -- 10,000 non-cumulative perpetual shares
Issued and outstanding - 10,000 non-cumulative perpetual shares		25,000				25,000				25,000				25,000				25,000
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding		7,425				7,412				7,407				7,396				7,393
Additional paid-in capital		1,234,402				1,233,593				1,231,532				1,228,626				1,226,695
Retained earnings		1,132,962				1,097,399				1,057,298				1,012,774				961,542
Accumulated other comprehensive loss		(307,270	)			(217,964	)			(198,914	)			(239,151	)			(314,089	)
Total Stockholders' Equity		2,092,644				2,145,565				2,122,448				2,034,770				1,906,666
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	17,996,648			$	17,968,412			$	18,178,908			$	17,938,306			$	17,718,985

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
INTEREST INCOME
Loans receivable:
Taxable	$	191,705			$	186,256			$	172,353			$	156,102			$	128,504
Tax-exempt		8,288				7,760				7,709				6,930				6,500
Investment securities:
Taxable		8,590				8,886				9,087				9,417				10,055
Tax-exempt		13,947				14,279				16,070				17,033				17,261
Deposits with financial institutions		5,884				3,164				637				959				704
Federal Home Loan Bank stock		719				1,020				542				541				314
Total Interest Income		229,133				221,365				206,398				190,982				163,338
INTEREST EXPENSE
Deposits		85,551				73,201				50,685				33,516				16,644
Federal funds purchased		—				123				1,297				808				418
Securities sold under repurchase agreements		797				979				848				541				372
Federal Home Loan Bank advances		6,896				6,815				7,064				4,932				3,493
Subordinated debentures and other borrowings		2,506				2,412				2,385				2,229				2,105
Total Interest Expense		95,750				83,530				62,279				42,026				23,032
NET INTEREST INCOME		133,383				137,835				144,119				148,956				140,306
Provision for credit losses		2,000				—				—				—				—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		131,383				137,835				144,119				148,956				140,306
NONINTEREST INCOME
Service charges on deposit accounts		7,975				7,813				7,359				7,097				7,165
Fiduciary and wealth management fees		7,394				7,397				7,862				7,501				7,221
Card payment fees		4,716				4,537				5,172				4,533				4,776
Net gains and fees on sales of loans		5,517				3,632				2,399				2,087				2,543
Derivative hedge fees		516				672				1,148				326				700
Other customer fees		384				742				517				362				501
Earnings on cash surrender value of life insurance		1,761				2,096				1,288				1,515				6,655
Net realized gains (losses) on sales of available for sale securities		(1,650	)			(1,392	)			(1,571	)			57				481
Other income (loss)		1,229				822				823				672				(425	)
Total Noninterest Income		27,842				26,319				24,997				24,150				29,617
NONINTEREST EXPENSES
Salaries and employee benefits		55,566				54,753				57,459				52,331				56,002
Net occupancy		6,837				6,674				7,259				6,638				6,738
Equipment		5,698				6,181				6,126				6,148				5,997
Marketing		2,369				1,102				1,309				3,157				2,401
Outside data processing fees		6,573				6,604				6,113				5,611				6,827
Printing and office supplies		333				434				383				390				472
Intangible asset amortization		2,182				2,182				2,197				2,303				2,303
FDIC assessments		2,981				2,740				1,396				2,295				2,824
Other real estate owned and foreclosure expenses		677				916				(18	)			197				328
Professional and other outside services		3,833				4,660				3,698				3,961				4,461
Other expenses		6,805				6,347				7,798				6,668				8,025
Total Noninterest Expenses		93,854				92,593				93,720				89,699				96,378
INCOME BEFORE INCOME TAX		65,371				71,561				75,396				83,407				73,545
Income tax expense		9,005				10,699				11,317				12,647				9,793
NET INCOME		56,366				60,862				64,079				70,760				63,752
Preferred stock dividends		468				469				469				468				469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	55,898			$	60,393			$	63,610			$	70,292			$	63,283
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.95			$	1.02			$	1.07			$	1.20			$	1.08
Diluted Net Income Available to Common Stockholders	$	0.94			$	1.02			$	1.07			$	1.19			$	1.08
Cash Dividends Paid to Common Stockholders	$	0.34			$	0.34			$	0.32			$	0.32			$	0.32
Average Diluted Common Shares Outstanding (in thousands)		59,503				59,448				59,441				59,384				59,339
FINANCIAL RATIOS:
Return on Average Assets		1.24	%			1.34	%			1.42	%			1.59	%			1.43	%
Return on Average Stockholders' Equity		10.38				11.29				12.21				14.36				12.54
Return on Tangible Common Stockholders' Equity		16.54				18.04				19.82				24.21				20.85
Average Earning Assets to Average Assets		93.36				93.38				93.35				93.66				92.90
Allowance for Credit Losses - Loans as % of Total Loans		1.67				1.80				1.82				1.86				1.94
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)		0.66				0.06				0.01				0.12				(0.01	)
Average Stockholders' Equity to Average Assets		11.87				11.78				11.56				10.98				11.36
Tax Equivalent Yield on Average Earning Assets		5.55				5.36				5.06				4.73				4.11
Interest Expense/Average Earning Assets		2.26				1.97				1.48				1.01				0.56
Net Interest Margin (FTE) on Average Earning Assets		3.29				3.39				3.58				3.72				3.55
Efficiency Ratio		53.91				52.21				51.72				48.60				53.34
Tangible Common Book Value Per Share	$	22.43			$	23.34			$	22.93			$	21.45			$	19.26

LOANS
(Dollars In Thousands)	September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
Commercial and industrial loans	$	3,490,953			$	3,531,395			$	3,502,204			$	3,437,126			$	3,330,529
Agricultural land, production and other loans to farmers		233,838				230,003				219,598				241,793				221,954
Real estate loans:
Construction		1,022,261				949,918				960,979				835,582				828,923
Commercial real estate, non-owner occupied		2,360,596				2,379,819				2,375,410				2,407,475				2,299,272
Commercial real estate, owner occupied		1,153,707				1,179,739				1,244,117				1,246,528				1,268,567
Residential		2,257,385				2,248,473				2,185,943				2,096,655				1,990,668
Home equity		609,352				614,366				621,354				630,632				621,619
Individuals' loans for household and other personal expenditures		176,523				172,896				172,389				175,211				173,225
Public finance and other commercial loans		966,807				963,624				959,467				932,892				915,245
Loans		12,271,422				12,270,233				12,241,461				12,003,894				11,650,002
Allowance for credit losses - loans		(205,782	)			(221,147	)			(223,052	)			(223,277	)			(226,702	)
NET LOANS	$	12,065,640			$	12,049,086			$	12,018,409			$	11,780,617			$	11,423,300

DEPOSITS
(Dollars In Thousands)	September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
Demand deposits	$	7,952,040			$	8,045,455			$	8,422,387			$	8,448,797			$	8,534,950
Savings deposits		4,572,162				4,530,255				4,499,487				4,657,140				5,054,490
Certificates and other time deposits of $100,000 or more		1,280,607				1,160,303				1,040,379				742,539				443,588
Other certificates and time deposits		761,196				680,965				574,886				468,712				381,365
Brokered certificates of deposits		80,571				164,177				166,148				65,557				20,432
TOTAL DEPOSITS	$	14,646,576			$	14,581,155			$	14,703,287			$	14,382,745			$	14,434,825

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Three Months Ended
	September 30, 2023											September 30, 2022
	Average Balance				Interest  Income / Expense				Average Rate			Average Balance				Interest  Income / Expense				Average Rate
ASSETS
Interest-bearing deposits	$	502,967			$	5,884			4.68	%		$	190,434			$	704			1.48	%
Federal Home Loan Bank stock		41,826				719			6.88				38,089				314			3.30
Investment Securities: (1)
Taxable		1,817,219				8,590			1.89				2,091,608				10,055			1.92
Tax-exempt (2)		2,298,025				17,655			3.07				2,700,580				21,849			3.24
Total Investment Securities		4,115,244				26,245			2.55				4,792,188				31,904			2.66
Loans held for sale		24,227				386			6.37				20,039				266			5.74
Loans: (3)
Commercial		8,456,527				153,993			7.28				8,177,895				103,227			5.05
Real estate mortgage		2,079,067				21,618			4.16				1,666,173				14,701			3.53
Installment		827,318				15,708			7.59				813,112				10,310			5.07
Tax-exempt (2)		900,493				10,491			4.66				810,984				8,228			4.06
Total Loans		12,287,632				202,196			6.58				11,488,203				136,732			4.76
Total Earning Assets		16,947,669				235,044			5.55	%			16,508,914				169,654			4.11	%
Total Non-Earning Assets		1,204,570											1,261,709
TOTAL ASSETS	$	18,152,239										$	17,770,623
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	5,425,829			$	37,780			2.79	%		$	5,184,087			$	8,723			0.67	%
Money market deposits		2,923,798				23,607			3.23				3,096,423				5,390			0.70
Savings deposits		1,641,338				3,844			0.94				1,978,596				1,538			0.31
Certificates and other time deposits		2,106,910				20,320			3.86				857,033				993			0.46
Total Interest-Bearing Deposits		12,097,875				85,551			2.83				11,116,139				16,644			0.60
Borrowings		1,032,180				10,199			3.95				1,013,893				6,388			2.52
Total Interest-Bearing Liabilities		13,130,055				95,750			2.92				12,130,032				23,032			0.76
Noninterest-bearing deposits		2,637,717											3,461,393
Other liabilities		230,235											161,042
Total Liabilities		15,998,007											15,752,467
STOCKHOLDERS' EQUITY		2,154,232											2,018,156
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,152,239				95,750						$	17,770,623				23,032
Net Interest Income (FTE)					$	139,294										$	146,622
Net Interest Spread (FTE) (4)									2.63	%										3.35	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets									5.55	%										4.11	%
Interest Expense / Average Earning Assets									2.26	%										0.56	%
Net Interest Margin (FTE) (5)									3.29	%										3.55	%
(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 2023 and 2022. These totals equal $5,911 and $6.316 for the three months ended September 30, 2023 and 2022, 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 Nine Months Ended
	September 30, 2023											September 30, 2022
	Average Balance				Interest  Income / Expense				Average Rate			Average Balance				Interest  Income / Expense				Average Rate
Assets:
Interest-bearing deposits	$	340,887			$	9,685			3.79	%		$	333,818			$	1,544			0.62	%
Federal Home Loan Bank stock		41,160				2,281			7.39				34,742				635			2.44
Investment Securities: (1)
Taxable		1,872,267				26,563			1.89				2,079,983				28,937			1.85
Tax-exempt (2)		2,394,864				56,071			3.12				2,647,547				63,732			3.21
Total Investment Securities		4,267,131				82,634			2.58				4,727,530				92,669			2.61
Loans held for sale		22,398				1,046			6.23				19,020				622			4.36
Loans: (3)
Commercial		8,515,148				444,422			6.96				7,731,591				253,770			4.38
Real estate mortgage		2,008,852				60,354			4.01				1,350,969				35,199			3.47
Installment		833,133				44,492			7.12				765,960				24,775			4.31
Tax-exempt (2)		885,256				30,072			4.53				780,410				23,030			3.93
Total Loans		12,264,787				580,386			6.31				10,647,950				337,396			4.22
Total Earning Assets		16,913,965				674,986			5.32	%			15,744,040				432,244			3.66	%
Total Non-Earning Assets		1,201,539											1,268,890
Total Assets	$	18,115,504										$	17,012,930
Liabilities:
Interest-Bearing deposits:
Interest-bearing deposits	$	5,412,482			$	97,016			2.39	%		$	5,195,249			$	15,699			0.40	%
Money market deposits		2,812,891				55,868			2.65				2,880,603				8,392			0.39
Savings deposits		1,730,110				10,693			0.82				1,937,761				2,895			0.20
Certificates and other time deposits		1,821,408				45,860			3.36				828,158				2,437			0.39
Total Interest-Bearing Deposits		11,776,891				209,437			2.37				10,841,771				29,423			0.36
Borrowings		1,144,368				32,122			3.74				817,894				13,354			2.18
Total Interest-Bearing Liabilities		12,921,259				241,559			2.49				11,659,665				42,777			0.49
Noninterest-bearing deposits		2,850,557											3,232,925
Other liabilities		217,683											143,041
Total Liabilities		15,989,499											15,035,631
Stockholders' Equity		2,126,005											1,977,299
Total Liabilities and Stockholders' Equity	$	18,115,504				241,559						$	17,012,930				42,777
Net Interest Income (FTE)					$	433,427										$	389,467
Net Interest Spread (FTE) (4)									2.83	%										3.17	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets									5.32	%										3.66	%
Interest Expense / Average Earning Assets									1.90	%										0.36	%
Net Interest Margin (FTE) (5)									3.42	%										3.30	%
(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 2023 and 2022. These totals equal $18,090 and $18,220 for the nine months ended September 30, 2023 and 2022, 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.

ADJUSTED EPS EXCLUDING PAYCHECK PROTECTION PROGRAM ("PPP") AND ACQUISITION-RELATED EXPENSES - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)	Three Months Ended																				Nine Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
		2023				2023				2023				2022				2022				2023				2022
Net Income Available to Common Stockholders - GAAP	$	55,898			$	60,393			$	63,610			$	70,292			$	63,283			$	179,901			$	150,391
Adjustments:
PPP loan income		(8	)			(9	)			(25	)			(109	)			(323	)			(42	)			(3,098	)
Acquisition-related expenses		—				—				—				413				3,417				—				16,118
Acquisition-related provision expense		—				—				—				—				—				—				16,755
Tax on adjustment		2				2				6				(75	)			(759	)			10				(7,301	)
Adjusted Net Income Available to Common Stockholders - Non-GAAP	$	55,892			$	60,386			$	63,591			$	70,521			$	65,618			$	179,869			$	172,865
Average Diluted Common Shares Outstanding (in thousands)		59,503				59,448				59,441				59,384				59,339				59,465				57,468
Diluted Earnings Per Common Share - GAAP	$	0.94			$	1.02			$	1.07			$	1.19			$	1.08			$	3.03			$	2.62
Adjustments:
PPP loan income		—				—				—				(0.01	)			—				—				(0.05	)
Acquisition-related expenses		—				—				—				0.01				0.05				—				0.27
Acquisition-related provision expense		—				—				—				—				—				—				0.30
Tax on adjustment		—				—				—				—				(0.01	)			—				(0.13	)
Adjusted Diluted Earnings Per Common Share - Non-GAAP	$	0.94			$	1.02			$	1.07			$	1.19			$	1.12			$	3.03			$	3.01

RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)	Three Months Ended																				Nine Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
		2023				2023				2023				2022				2022				2023				2022
Total Average Stockholders' Equity (GAAP)	$	2,154,232			$	2,139,877			$	2,083,125			$	1,958,041			$	2,018,156			$	2,126,005			$	1,977,299
Less: Average Preferred Stock		(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(16,792	)
Less: Average Intangible Assets, Net of Tax		(735,787	)			(737,489	)			(739,190	)			(741,632	)			(744,069	)			(737,476	)			(685,707	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,393,320			$	1,377,263			$	1,318,810			$	1,191,284			$	1,248,962			$	1,363,404			$	1,274,800
Net Income Available to Common Stockholders (GAAP)	$	55,898			$	60,393			$	63,610			$	70,292			$	63,283			$	179,901			$	150,391
Plus: Intangible Asset Amortization, Net of Tax		1,724				1,724				1,734				1,819				1,819				5,182				4,718
Tangible Net Income (Non-GAAP)	$	57,622			$	62,117			$	65,344			$	72,111			$	65,102			$	185,083			$	155,109
Return on Tangible Common Equity (Non-GAAP)		16.54	%			18.04	%			19.82	%			24.21	%			20.85	%			18.10	%			16.22	%