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NEWS
News

Thursday, January 26, 2023

First Merchants Corporation (NASDAQ - FRME)

Fourth Quarter 2022 Highlights:

  • Net income available to common stockholders was $70.3 million and diluted earnings per common share totaled $1.19, compared to $47.7 million and $.89 in the fourth quarter of 2021, and $63.3 million and $1.08 in the third quarter of 2022. 
  • Adjusted net income available to common stockholders1 for the fourth quarter was $70.5 million and adjusted diluted earnings per common share1 totaled $1.19, compared to $44.9 million and $.84 in the fourth quarter of 2021, and $65.6 million and $1.12 in the third quarter of 2022.
  • Total loans grew $344.1 million, or 11.8% annualized on a linked quarter basis, excluding the forgiveness of $6.5 million in Paycheck Protection Program (“PPP”) loans.
  • Total deposits declined $52.1 million, or 1.4% annualized on a linked quarter basis.
  • Nonaccrual loans totaled $42.3 million compared to $43.5 million on a linked quarter basis.
  • Net interest income totaled $149.0 million, an increase of $8.7 million, or 6.2% on a linked quarter basis.
  • The efficiency ratio totaled 48.60% for the quarter.

Full Year 2022 Highlights:

  • Net income available to common stockholders was $220.7 million and diluted earnings per common share totaled $3.81, compared to $205.5 million and $3.81 in 2021.
  • Adjusted net income available to common stockholders1 for 2022 was $243.4 million and adjusted diluted earnings per common share1 totaled $4.20, compared to $182.2 million and $3.38 in 2021.
  • Total loans grew $2.8 billion during 2022, which included $1.6 billion from the acquisition of Level One Bancorp Inc. (“Level One”).  Excluding the forgiveness of $145.3 million in Paycheck Protection Program (“PPP”) loans, organic loan growth totaled $1.3 billion or 13.9% during the year.
  • Net interest income totaled $520.2 million, an increase of $109.5 million, or 26.7% over prior year.
  • The efficiency ratio totaled 53.20% for 2022, but was 50.66% after excluding $16.5 million in acquisition-related expenses that were incurred during the year.

     

    Mark Hardwick, Chief Executive Officer, stated, “First Merchants completed 2022 with a strong quarter and closed the books on another successful year.  We are pleased to have the acquisition and integration of Level One behind us so that we can focus on the organic opportunities ahead.  First Merchants’ earnings power is pretty easy to digest when assessing our quarterly results.  We look forward to continued growth and high levels of performance in 2023”

    Fourth Quarter Financial Results

    First Merchants Corporation (the “Corporation) has reported fourth quarter 2022 net income available to common stockholders of $70.3 million compared to $47.7 million during the same period in 2021.  Diluted earnings per common share for the period totaled $1.19 per share compared to the fourth quarter of 2021 result of $.89 per share.

    Total assets equaled $17.9 billion as of quarter-end and loans totaled $12.0 billion.  Total loans increased $2.8 billion during the past twelve months.  The acquisition of Level One contributed $1.6 billion of loans.  Excluding acquired loans, the Corporation experienced organic loan growth of $1.3 billion, or 13.9 percent, during the past twelve months. This was offset by the forgiveness of PPP loans of $145.3 million.  Investments decreased $260.6 million, or 5.8 percent, during the last twelve months and now total $4.3 billion. 

    Total deposits equaled $14.4 billion as of quarter-end and increased by $1.7 billion over the past twelve months. The acquisition of Level One contributed $1.9 billion in deposits resulting in an organic deposit decline of $280.6 million or 2.2%.  The balance sheet growth mix resulted in an increase in the loan to deposit ratio of 10.9% over the past twelve months with the current quarter ratio ending at 83.5 percent.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $223.3 million as of quarter-end, or 1.86 percent of total loans, an increase of $27.9 million over prior year due to the acquisition of Level One.  Loan charge offs, net of recoveries, for the quarter totaled $3.4 million.  No provision expense was recorded during the quarter or during the last twelve months other than CECL Day 1 expense of $16.8 million due to the acquisition of Level One. Non-performing assets to total assets were 0.27% for the fourth quarter of 2022, a decrease of one basis point compared to 0.28% in the fourth quarter of 2021.

    Net-interest income totaling $149.0 million for the quarter, continued to grow with an increase of $8.7 million, or 6.2 percent, over prior quarter, and an increase of $47.7 million, or 47 percent compared to the fourth quarter of 2021.  Stated net-interest margin on a tax equivalent basis, totaling 3.72 percent, increased by 17 basis points compared to the third quarter of 2022 and 68 basis points compared to the fourth quarter of 2021.  Net-interest margin excluding the impact of fair value accretion and PPP loans totaled 3.65% for the quarter, an increase of 18 basis points compared to 3.47% for the third quarter of 2022 and an increase of 73 basis points from the fourth quarter of 2021.  During the quarter, the yield on earning assets expanded 62 basis points from higher loan and investment portfolio yields as well as organic loan growth, offset by a 45 basis point increase in funding costs.

    Non-interest income, totaling $24.2 million for the quarter, decreased $5.5 million or 18.5% compared to the third quarter of 2022. The decrease was primarily driven by lower earnings on cash surrender value of life insurance which was elevated in the third quarter due to a large $5.2 million BOLI death benefit. Non-interest income decreased $1.7 million from the fourth quarter of 2021 due primarily to lower gains on the sale of mortgage loans and lower derivative hedge fees. 

    Non-interest expense totaled $89.7 million for the quarter, a decrease of $6.7 million from the third quarter of 2022.  The third quarter included $3.4 million of acquisition-related expenses.  The quarter over quarter decline also reflected lower salaries and benefits expense as well as some one-time gains on sales of properties recorded in the fourth quarter. 

    The Corporation’s total risk-based capital ratio equaled 13.08 percent, common equity tier 1 capital ratio equaled 10.65 percent, and the tangible common equity ratio totaled 7.34 percent.  These ratios continue to reflect the Corporation’s strong capital position.

    1 See “Non-GAAP Financial Information” for reconciliation

    CONFERENCE CALL

    First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 10:30 a.m. (ET) on Thursday, January 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/BI6fcecfffac4e446dae35bea4a13966ee)

    In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/7rxb6jtk) during the time of the call. A replay of the webcast will be available until January 26, 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.

    * * * *

    CONSOLIDATED BALANCE SHEETS
    (Dollars In Thousands) December 31,
    2022 2021
    ASSETS
    Cash and due from banks $                  122,594 $                  167,146
    Interest-bearing deposits                     126,061                     474,154
    Investment securities, net of allowance for credit losses of $245,000 and $245,000                  4,263,788                  4,524,353
    Loans held for sale                        9,094                      11,187
    Loans                12,003,894                  9,241,861
    Less: Allowance for credit losses - loans                   (223,277)                   (195,397)
    Net loans                11,780,617                  9,046,464
    Premises and equipment                     117,118                     105,655
    Federal Home Loan Bank stock                      38,525                      28,736
    Interest receivable                      85,070                      57,187
    Goodwill and other intangibles                     747,844                     570,860
    Cash surrender value of life insurance                     308,311                     291,041
    Other real estate owned                        6,431                           558
    Tax asset, deferred and receivable                     111,222                      35,641
    Other assets                     221,631                     140,167
    TOTAL ASSETS $              17,938,306 $              15,453,149
    LIABILITIES
    Deposits:
    Noninterest-bearing $               3,173,417 $               2,709,646
    Interest-bearing                11,209,328                10,022,931
    Total Deposits                14,382,745                12,732,577
    Borrowings:
    Federal funds purchased                     171,560                             —
    Securities sold under repurchase agreements                     167,413                     181,577
    Federal Home Loan Bank advances                     823,674                     334,055
    Subordinated debentures and other borrowings                     151,298                     118,618
    Total Borrowings                  1,313,945                     634,250
    Interest payable                        7,530                        2,762
    Other liabilities                     199,316                     170,989
    Total Liabilities                15,903,536                13,540,578
    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                             —
    Common Stock, $.125 stated value:
    Authorized -- 100,000,000 shares
    Issued and outstanding - 59,170,583 and 53,410,411 shares                        7,396                        6,676
    Additional paid-in capital                  1,228,626                     985,818
    Retained earnings                  1,012,774                     864,839
    Accumulated other comprehensive income (loss)                   (239,151)                      55,113
    Total Stockholders' Equity                  2,034,770                  1,912,571
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $              17,938,306 $              15,453,149
    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Twelve Months Ended
    (Dollars In Thousands, Except Per Share Amounts) December 31, December 31,
    2022 2021 2022 2021
    INTEREST INCOME
    Loans receivable:
    Taxable $              156,102 $               80,583 $              470,468 $              338,009
    Tax-exempt                    6,930                    5,635                  25,124                  22,110
    Investment securities:
    Taxable                    9,417                    8,028                  38,354                  29,951
    Tax-exempt                  17,033                  15,411                  67,381                  55,331
    Deposits with financial institutions                      959                      173                    2,503                      634
    Federal Home Loan Bank stock                      541                      163                    1,176                      597
    Total Interest Income                190,982                109,993                605,006                446,632
    INTEREST EXPENSE
    Deposits                  33,516                    5,589                  62,939                  23,319
    Federal funds purchased                      808                          1                    1,302                          5
    Securities sold under repurchase agreements                      541                        75                    1,136                      314
    Federal Home Loan Bank advances                    4,932                    1,389                  11,417                    5,672
    Subordinated debentures and other borrowings                    2,229                    1,666                    8,009                    6,642
    Total Interest Expense                  42,026                    8,720                  84,803                  35,952
    NET INTEREST INCOME                148,956                101,273                520,203                410,680
    Provision for credit losses - loans                        —                        —                  16,755                        —
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES                148,956                101,273                503,448                410,680
    NON-INTEREST INCOME
    Service charges on deposit accounts                    7,097                    6,462                  28,371                  23,571
    Fiduciary and wealth management fees                    7,501                    7,078                  29,688                  28,362
    Card payment fees                    4,533                    3,937                  20,207                  16,619
    Net gains and fees on sales of loans                    2,087                    3,423                  10,055                  19,689
    Derivative hedge fees                      326                    1,562                    3,388                    3,850
    Other customer fees                      362                      361                    1,935                    1,490
    Earnings on cash surrender value of life insurance                    1,515                    2,051                  11,174                    7,060
    Net realized gains on sales of available for sale securities                        57                      358                    1,194                    5,674
    Other income                      672                      615                    1,929                    3,008
    Total Non-Interest Income                  24,150                  25,847                107,941                109,323
    NON-INTEREST EXPENSES
    Salaries and employee benefits                  52,331                  42,432                206,893                166,995
    Net occupancy                    6,638                    5,644                  26,211                  23,326
    Equipment                    6,148                    4,994                  23,945                  19,401
    Marketing                    3,157                    1,840                    7,708                    5,762
    Outside data processing fees                    5,611                    4,581                  21,682                  18,317
    Printing and office supplies                      390                      356                    1,588                    1,217
    Intangible asset amortization                    2,303                    1,463                    8,275                    5,747
    FDIC assessments                    2,295                    1,862                  10,235                    6,243
    Other real estate owned and foreclosure expenses                      197                      171                      823                      992
    Professional and other outside services                    3,961                    3,627                  21,642                  11,913
    Other expenses                    6,668                    5,466                  26,713                  19,300
    Total Non-Interest Expenses                  89,699                  72,436                355,715                279,213
    INCOME BEFORE INCOME TAX                  83,407                  54,684                255,674                240,790
    Income tax expense                  12,647                    6,951                  33,585                  35,259
    NET INCOME                  70,760                  47,733                222,089                205,531
    Preferred stock dividends                      468                        —                    1,406                        —
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $               70,292 $               47,733 $              220,683 $              205,531
    Per Share Data:
    Basic Net Income Available to Common Stockholders $                   1.20 $                   0.89 $                   3.83 $                   3.82
    Diluted Net Income Available to Common Stockholders $                   1.19 $                   0.89 $                   3.81 $                   3.81
    Cash Dividends Paid to Common Stockholders $                   0.32 $                   0.29 $                   1.25 $                   1.13
    Average Diluted Common Shares Outstanding (in thousands)                  59,384                  53,660                  57,950                  53,984
    FINANCIAL HIGHLIGHTS
    (Dollars in thousands) Three Months Ended Twelve  Months Ended
    December 31, December 31,
    2022 2021 2022 2021
    NET CHARGE-OFFS (RECOVERIES) $              3,425    $              4,575    $              2,674    $              9,306   
    AVERAGE BALANCES:
    Total Assets $       17,834,468    $       15,298,655    $       17,220,002    $       14,830,397   
    Total Loans         11,818,911              9,076,652            10,943,051              9,170,650   
    Total Earning Assets         16,702,944            14,053,310            15,985,691            13,579,113   
    Total Deposits         14,564,853            12,647,737            14,198,243            12,176,231   
    Total Stockholders' Equity           1,958,041              1,890,229              1,972,445              1,866,632   
    FINANCIAL RATIOS:
    Return on Average Assets 1.59 % 1.25 % 1.29 % 1.39 %
    Return on Average Stockholders' Equity                 14.36                    10.10                    11.19                    11.01   
    Return on Average Common Stockholders' Equity                 14.55                    10.10                    11.30                    11.01   
    Average Earning Assets to Average Assets                 93.66                    91.86                    92.83                    91.56   
    Allowance for Credit Losses - Loans as % of Total Loans                   1.86                      2.11                      1.86                      2.11   
    Net Charge-offs as % of Average Loans (Annualized)                   0.12                      0.20                      0.02                      0.10   
    Average Stockholders' Equity to Average Assets                 10.98                    12.36                    11.45                    12.59   
    Tax Equivalent Yield on Average Earning Assets                   4.73                      3.29                      3.94                      3.44   
    Interest Expense/Average Earning Assets                   1.01                      0.25                      0.53                      0.26   
    Net Interest Margin (FTE) on Average Earning Assets                   3.72                      3.04                      3.41                      3.18   
    Efficiency Ratio                 48.60                    53.49                    53.20                    50.94   
    Tangible Common Book Value Per Share $              21.45    $              25.21    $              21.45    $              25.21   
    NON-PERFORMING ASSETS
    (Dollars In Thousands) December 31, September 30, June 30, March 31, December 31,
    2022 2022 2022 2022 2021
    Non-Accrual Loans $        42,324    $        43,508    $        45,970    $        42,698    $        43,062   
    Renegotiated Loans               224                  195                  233                  141                  329   
    Non-Performing Loans (NPL)           42,548              43,703              46,203              42,839              43,391   
    Other Real Estate Owned and Repossessions            6,431               6,454               6,521               6,271                  558   
    Non-Performing Assets (NPA)           48,979              50,157              52,724              49,110              43,949   
    90+ Days Delinquent            1,737                  764                  592               2,085                  963   
    NPAs & 90 Day Delinquent $        50,716    $        50,921    $        53,316    $        51,195    $        44,912   
    Allowance for Credit Losses - Loans $      223,277    $      226,702    $      226,275    $      195,984    $      195,397   
    Quarterly Net Charge-offs (Recoveries)            2,674                (427)                 263                (587)              4,575   
    NPAs / Actual Assets % 0.27 % 0.28 % 0.30 % 0.32 % 0.28 %
    NPAs & 90 Day / Actual Assets % 0.28 % 0.29 % 0.30 % 0.33 % 0.29 %
    NPAs / Actual Loans and OREO % 0.41 % 0.43 % 0.46 % 0.52 % 0.47 %
    Allowance for Credit Losses - Loans / Actual Loans (%) 1.86 % 1.94 % 1.98 % 2.09 % 2.11 %
    Net Charge-offs (Recoveries) as % of Average Loans (Annualized) 0.12 % (0.01)        % 0.01 % (0.03)        % 0.20 %
    CONSOLIDATED BALANCE SHEETS
    (Dollars In Thousands) December 31, September 30, June 30, March 31, December 31,
    2022 2022 2022 2022 2021
    ASSETS
    Cash and due from banks $         122,594 $         119,532 $         212,559 $         148,277 $         167,146
    Interest-bearing deposits            126,061            179,593            136,702            395,262            474,154
    Investment securities, net of allowance for credit losses         4,263,788         4,294,768         4,630,030         4,489,263         4,524,353
    Loans held for sale               9,094             25,394               9,060               3,938             11,187
    Loans       12,003,894       11,650,002       11,397,417         9,356,241         9,241,861
    Less: Allowance for credit losses - loans          (223,277)          (226,702)          (226,275)          (195,984)          (195,397)
    Net loans       11,780,617       11,423,300       11,171,142         9,160,257         9,046,464
    Premises and equipment            117,118            116,306            117,757            105,883            105,655
    Federal Home Loan Bank stock             38,525             38,056             38,111             26,422             28,736
    Interest receivable             85,070             71,605             68,728             56,081             57,187
    Goodwill and other intangibles            747,844            750,713            753,649            569,494            570,860
    Cash surrender value of life insurance            308,311            306,932            323,013            291,881            291,041
    Other real estate owned               6,431               6,454               6,521               6,271                  558
    Tax asset, deferred and receivable            111,222            142,110            114,965             73,422             35,641
    Other assets            221,631            244,222            198,255            138,807            140,167
    TOTAL ASSETS $     17,938,306 $     17,718,985 $     17,780,492 $     15,465,258 $     15,453,149
    LIABILITIES
    Deposits:
    Noninterest-bearing $      3,173,417 $      3,356,651 $      3,435,331 $      2,745,235 $      2,709,646
    Interest-bearing       11,209,328       11,078,174       11,135,538       10,160,718       10,022,931
    Total Deposits       14,382,745       14,434,825       14,570,869       12,905,953       12,732,577
    Borrowings:
    Federal funds purchased            171,560            185,000            100,000                    —                    —
    Securities sold under repurchase agreements            167,413            194,482            186,468            169,697            181,577
    Federal Home Loan Bank advances            823,674            643,769            598,865            308,960            334,055
    Subordinated debentures and other borrowings            151,298            151,301            151,299            118,677            118,618
    Total Borrowings         1,313,945         1,174,552         1,036,632            597,334            634,250
    Interest payable               7,530               4,971               2,978               3,589               2,762
    Other liabilities            199,316            197,971            192,372            150,749            170,989
    Total Liabilities       15,903,536       15,812,319       15,802,851       13,657,625       13,540,578
    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                    —                    —
    Common Stock, $.125 stated value:
    Authorized -- 100,000,000 shares
    Issued and outstanding               7,396               7,393               7,383               6,678               6,676
    Additional paid-in capital         1,228,626         1,226,695         1,226,378            987,404            985,818
    Retained earnings         1,012,774            961,542            917,311            897,818            864,839
    Accumulated other comprehensive income (loss)          (239,151)          (314,089)          (198,556)            (84,392)             55,113
    Total Stockholders' Equity         2,034,770         1,906,666         1,977,641         1,807,633         1,912,571
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $     17,938,306 $     17,718,985 $     17,780,492 $     15,465,258 $     15,453,149
    CONSOLIDATED STATEMENTS OF INCOME
    (Dollars In Thousands, Except Per Share Amounts) December 31, September 30, June 30, March 31, December 31,
    2022 2022 2022 2022 2021
    INTEREST INCOME
    Loans receivable:
    Taxable $      156,102    $      128,504    $      106,787    $        79,075    $        80,583   
    Tax-exempt            6,930               6,500               5,990               5,704               5,635   
    Investment securities:
    Taxable            9,417              10,055              10,372               8,510               8,028   
    Tax-exempt           17,033              17,261              17,212              15,875              15,411   
    Deposits with financial institutions               959                  704                  610                  230                  173   
    Federal Home Loan Bank stock               541                  314                  175                  146                  163   
    Total Interest Income         190,982            163,338            141,146            109,540            109,993   
    INTEREST EXPENSE
    Deposits           33,516              16,644               8,485               4,294               5,589   
    Federal funds purchased               808                  418                    76                    —                     1   
    Securities sold under repurchase agreements               541                  372                  134                    89                    75   
    Federal Home Loan Bank advances            4,932               3,493               1,774               1,218               1,389   
    Subordinated debentures and other borrowings            2,229               2,105               2,016               1,659               1,666   
    Total Interest Expense           42,026              23,032              12,485               7,260               8,720   
    NET INTEREST INCOME         148,956            140,306            128,661            102,280            101,273   
    Provision for credit losses - loans                 —                    —              16,755                    —                    —   
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES         148,956            140,306            111,906            102,280            101,273   
    NON-INTEREST INCOME
    Service charges on deposit accounts            7,097               7,165               7,690               6,419               6,462   
    Fiduciary and wealth management fees            7,501               7,221               7,634               7,332               7,078   
    Card payment fees            4,533               4,776               5,175               5,723               3,937   
    Net gains and fees on sales of loans            2,087               2,543               3,226               2,199               3,423   
    Derivative hedge fees               326                  700               1,444                  918               1,562   
    Other customer fees               362                  501                  662                  410                  361   
    Earnings on cash surrender value of life insurance            1,515               6,655               1,308               1,696               2,051   
    Net realized gains on sales of available for sale securities                 57                  481                    90                  566                  358   
    Other income (loss)               672                (425)              1,048                  634                  615   
    Total Non-Interest Income           24,150              29,617              28,277              25,897              25,847   
    NON-INTEREST EXPENSES
    Salaries and employee benefits           52,331              56,002              56,041              42,519              42,432   
    Net occupancy            6,638               6,738               6,648               6,187               5,644   
    Equipment            6,148               5,997               6,720               5,080               4,994   
    Marketing            3,157               2,401               1,414                  736               1,840   
    Outside data processing fees            5,611               6,827               4,881               4,363               4,581   
    Printing and office supplies               390                  472                  381                  345                  356   
    Intangible asset amortization            2,303               2,303               2,303               1,366               1,463   
    FDIC assessments            2,295               2,824               2,924               2,192               1,862   
    Other real estate owned and foreclosure expenses               197                  328                (266)                 564                  171   
    Professional and other outside services            3,961               4,461              10,267               2,953               3,627   
    Other expenses            6,668               8,025               6,000               6,020               5,466   
    Total Non-Interest Expenses           89,699              96,378              97,313              72,325              72,436   
    INCOME BEFORE INCOME TAX           83,407              73,545              42,870              55,852              54,684   
    Income tax expense           12,647               9,793               3,879               7,266               6,951   
    NET INCOME           70,760              63,752              38,991              48,586              47,733   
    Preferred stock dividends               468                  469                  469                    —                    —   
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $        70,292    $        63,283    $        38,522    $        48,586    $        47,733   
    Per Share Data:
    Basic Net Income Available to Common Stockholders $           1.20    $           1.08    $           0.64    $           0.91    $           0.89   
    Diluted Net Income Available to Common Stockholders $           1.19    $           1.08    $           0.63    $           0.91    $           0.89   
    Cash Dividends Paid to Common Stockholders $           0.32    $           0.32    $           0.32    $           0.29    $           0.29   
    Average Diluted Common Shares Outstanding (in thousands)           59,384              59,339              59,308              53,616              53,660   
    FINANCIAL RATIOS:
    Return on Average Assets 1.59 % 1.43 % 0.88 % 1.26 % 1.25 %
    Return on Average Stockholders' Equity            14.36               12.54                 7.62               10.28               10.10   
    Return on Average Common Stockholders' Equity            14.55               12.70                 7.72               10.28               10.10   
    Average Earning Assets to Average Assets            93.66               92.90               92.45               92.23               91.86   
    Allowance for Credit Losses - Loans as % of Total Loans              1.86                 1.94                 1.98                 2.09                 2.11   
    Net Charge-offs (Recoveries) as % of Average Loans (Annualized)              0.12                (0.01)                0.01                (0.03)                0.20   
    Average Stockholders' Equity to Average Assets            10.98               11.36               11.37               12.23               12.36   
    Tax Equivalent Yield on Average Earning Assets              4.73                 4.11                 3.58                 3.23                 3.29   
    Interest Expense/Average Earning Assets              1.01                 0.56                 0.30                 0.20                 0.25   
    Net Interest Margin (FTE) on Average Earning Assets              3.72                 3.55                 3.28                 3.03                 3.04   
    Efficiency Ratio            48.60               53.34               58.45               52.79               53.49   
    Tangible Common Book Value Per Share $          21.45    $          19.26    $          20.45    $          23.26    $          25.21   
    LOANS
    (Dollars In Thousands) December 31, September 30, June 30, March 31, December 31,
    2022 2022 2022 2022 2021
    Commercial and industrial loans $      3,437,126 $      3,330,529 $      3,297,477 $      2,826,660 $      2,714,565
    Agricultural land, production and other loans to farmers            241,793            221,954            214,904            209,077            246,442
    Real estate loans:
    Construction            835,582            828,923            745,983            552,975            523,066
    Commercial real estate, non-owner occupied         2,407,475         2,299,272         2,423,185         2,073,197         2,135,459
    Commercial real estate, owner occupied         1,246,528         1,268,567         1,264,563            974,521            986,720
    Residential         2,096,655         1,990,668         1,813,297         1,226,695         1,159,127
    Home equity            630,632            621,619            586,108            512,641            523,754
    Individuals' loans for household and other personal expenditures            175,211            173,225            157,264            147,593            146,092
    Public finance and other commercial loans            932,892            915,245            894,636            832,882            806,636
    Loans       12,003,894       11,650,002       11,397,417         9,356,241         9,241,861
    Allowance for credit losses - loans          (223,277)          (226,702)          (226,275)          (195,984)          (195,397)
    NET LOANS $     11,780,617 $     11,423,300 $     11,171,142 $      9,160,257 $      9,046,464
    DEPOSITS
    (Dollars In Thousands) December 31, September 30, June 30, March 31, December 31,
    2022 2022 2022 2022 2021
    Demand deposits $      8,448,797 $      8,534,950 $      8,785,889 $      7,806,033 $      7,704,190
    Savings deposits         4,657,140         5,054,490         4,875,880         4,444,417         4,334,802
    Certificates and other time deposits of $100,000 or more            742,539            443,588            436,942            252,033            273,379
    Other certificates and time deposits            468,712            381,365            446,973            380,293            389,752
    Brokered deposits             65,557             20,432             25,185             23,177             30,454
    TOTAL DEPOSITS $     14,382,745 $     14,434,825 $     14,570,869 $     12,905,953 $     12,732,577
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars in Thousands)
    For the Three Months Ended
    December 31, 2022 December 31, 2021
    Average Balance Interest
     Income /
    Expense     		Average
    Rate     		Average Balance Interest
     Income /
    Expense     		Average
    Rate
    Assets:
    Interest-bearing deposits $         187,204 $           959 2.05 % $         558,677 $           173 0.12 %
    Federal Home Loan Bank stock             38,066              541 5.68                28,736              163 2.27   
    Investment Securities: (1)
    Taxable         1,987,161           9,417 1.90            1,936,519           8,028 1.66   
    Tax-Exempt (2)         2,671,602         21,561 3.23            2,452,726         19,508 3.18   
    Total Investment Securities         4,658,763         30,978 2.66            4,389,245         27,536 2.51   
    Loans held for sale               4,732               71 6.00                20,688              196 3.79   
    Loans: (3)
    Commercial         8,309,561        126,850 6.11            6,703,241         65,867 3.93   
    Real Estate Mortgage         1,827,749         16,654 3.64               889,571           7,866 3.54   
    Installment            843,562         12,527 5.94               711,309           6,654 3.74   
    Tax-Exempt (2)            833,307           8,772 4.21               751,843           7,133 3.79   
    Total Loans       11,818,911        164,874 5.58            9,076,652         87,716 3.87   
    Total Earning Assets       16,702,944        197,352 4.73 %       14,053,310        115,588 3.29 %
    Total Non-Earning Assets         1,131,524         1,245,345
    Total Assets $     17,834,468 $     15,298,655  
    Liabilities:
    Interest-bearing deposits:
    Interest-bearing deposits $      5,238,422 $       16,810 1.28 % $      4,912,556 $        3,637 0.30 %
    Money market deposits         3,018,644         10,778 1.43            2,518,612              809 0.13   
    Savings deposits         1,895,551           2,125 0.45            1,828,631              461 0.10   
    Certificates and other time deposits         1,038,502           3,803 1.46               706,617              682 0.39   
    Total Interest-bearing Deposits       11,191,119         33,516 1.20            9,966,416           5,589 0.22   
    Borrowings         1,097,586           8,510 3.10               620,398           3,131 2.02   
    Total Interest-bearing Liabilities       12,288,705         42,026 1.37          10,586,814           8,720 0.33   
    Noninterest-bearing deposits         3,373,734         2,681,321
    Other liabilities            213,988            140,291
    Total Liabilities       15,876,427       13,408,426
    Stockholders' Equity         1,958,041         1,890,229
    Total Liabilities and Stockholders' Equity $     17,834,468         42,026 $     15,298,655           8,720
    Net Interest Income (FTE) $     155,326 $     106,868
    Net Interest Spread (FTE) (4) 3.36 %     2.96 %
    Net Interest Margin (FTE):
    Interest Income (FTE) / Average Earning Assets 4.73 % 3.29 %
    Interest Expense / Average Earning Assets 1.01 % 0.25 %
    Net Interest Margin (FTE) (5) 3.72 % 3.04 %
    (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 2022 and 2021.  These totals equal $6,370 and $5,595 for the three months ended December 31, 2022 and 2021, 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, 2022 December 31, 2021
    Average Balance Interest
     Income /
    Expense     		Average
    Rate     		Average Balance Interest
     Income /
    Expense     		Average
    Rate
    Assets:
    Interest-bearing deposits $         296,863 $        2,503 0.84 % $         521,637 $           634 0.12 %
    Federal Home Loan Bank stock             35,580           1,176 3.31                28,736              597 2.08   
    Investment Securities: (1)
    Taxable         2,056,586         38,354 1.86            1,751,910         29,951 1.71   
    Tax-Exempt (2)         2,653,611         85,292 3.21            2,106,180         70,039 3.33   
    Total Investment Securities         4,710,197        123,646 2.63            3,858,090         99,990 2.59   
    Loans held for sale             14,715              692 4.70                19,190              747 3.89   
    Loans: (3)
    Commercial         7,877,271        380,621 4.83            6,818,968        276,368 4.05   
    Real Estate Mortgage         1,471,802         51,853 3.52               916,314         34,783 3.80   
    Installment            785,520         37,302 4.75               683,925         26,111 3.82   
    Tax-Exempt (2)            793,743         31,803 4.01               732,253         27,987 3.82   
    Total Loans       10,943,051        502,271 4.59            9,170,650        365,996 3.99   
    Total Earning Assets       15,985,691        629,596 3.94 %       13,579,113        467,217 3.44 %
    Total Non-Earning Assets         1,234,311         1,251,284
    Total Assets $     17,220,002 $     14,830,397
    Liabilities:
    Interest-bearing deposits:
    Interest-bearing deposits $      5,206,131 $       32,511 0.62 % $      4,769,482 $       14,512 0.30 %
    Money market deposits         2,915,397         19,170 0.66            2,351,803           3,203 0.14   
    Savings deposits         1,927,122           5,019 0.26            1,754,972           1,886 0.11   
    Certificates and other time deposits            881,176           6,239 0.71               783,733           3,718 0.47   
    Total Interest-bearing Deposits       10,929,826         62,939 0.58            9,659,990         23,319 0.24   
    Borrowings            888,392         21,864 2.46               639,791         12,633 1.97   
    Total Interest-bearing Liabilities       11,818,218         84,803 0.72          10,299,781         35,952 0.35   
    Noninterest-bearing deposits         3,268,417         2,516,241
    Other liabilities            160,922            147,743
    Total Liabilities       15,247,557       12,963,765
    Stockholders' Equity         1,972,445         1,866,632
    Total Liabilities and Stockholders' Equity $     17,220,002         84,803 $     14,830,397         35,952
    Net Interest Income (FTE) $     544,793 $     431,265
    Net Interest Spread (FTE) (4) 3.22 % 3.09 %
    Net Interest Margin (FTE):
    Interest Income (FTE) / Average Earning Assets 3.94 % 3.44 %
    Interest Expense / Average Earning Assets 0.53 % 0.26 %
    Net Interest Margin (FTE) (5) 3.41 % 3.18 %
    (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 2022 and 2021.  These totals equal $24,590  and $20,585 for the twelve  months ended December 31, 2022 and 2021, 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 Twelve Months Ended
    December 31, September 30, June 30, March 31, December 31, December 31, December 31,
    2022 2022 2022 2022 2021 2022 2021
    Net Income Available to Common Stockholders - GAAP $         70,292 $         63,283 $        38,522 $         48,586 $         47,733 $        220,683 $        205,531
    Adjustments:
    PPP loan income               (109)               (323)             (891)            (1,884)            (3,721)            (3,207)           (30,900)
    Acquisition-related expenses                413              3,417          12,549                152                  —            16,531                  —
    Acquisition-related provision expense                  —                  —          16,755                  —                  —            16,755                  —
    Tax on adjustment                 (75)               (759)           (6,967)                425                912            (7,376)              7,577
    Adjusted Net Income Available to Common Stockholders - Non-GAAP $         70,521 $         65,618 $        59,968 $         47,279 $         44,924 $        243,386 $        182,208
    Average Diluted Common Shares Outstanding (in thousands)            59,384            59,339          59,308            53,616            53,660            57,950            53,984
    Diluted Earnings Per Common Share - GAAP $             1.19 $             1.08 $           0.63 $            0.91 $             0.89 $             3.81 $             3.81
    Adjustments:
    PPP loan income              (0.01)                  —            (0.01)              (0.04)              (0.07)              (0.06)              (0.57)
    Acquisition-related expenses 0.01 0.05 0.22                  —                  — 0.28                  —
    Acquisition-related provision expense                  —                  —              0.30                  —                  —               0.30                  —
    Tax on adjustment                  —              (0.01)            (0.13)               0.01               0.02              (0.13)               0.14
    Adjusted Diluted Earnings Per Common Share - Non-GAAP $             1.19 $             1.12 $           1.01 $            0.88 $             0.84 $             4.20 $             3.38
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