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NEWS
News

Tuesday, April 25, 2023

First Quarter 2023 Highlights:

 

  • Net income available to common stockholders was $63.6 million for the first quarter and diluted earnings per common share totaled $1.07, compared to $48.6 million and $.91 in the first quarter of 2022, and $70.3 million and $1.19 in the fourth quarter of 2022. 
  • Adjusted net income available to common stockholders1 for the first quarter was $63.6 million and adjusted diluted earnings per common share1 totaled $1.07, compared to $47.3 million and $.88 in the first quarter of 2022, and $70.5 million and $1.19 in the fourth quarter of 2022.
  • Strong liquidity and capital with Common Equity Tier 1 Capital Ratio of 10.82%.
  • Deposit growth of $320.5 million, or 8.9% annualized on a linked quarter basis.
  • Total loans grew $237.9 million, or 7.9% annualized on a linked quarter basis.
  • Non-accrual loans totaled $46.6 million compared to $42.3 million on a linked quarter basis.
  • The efficiency ratio totaled 51.72% for the quarter.

     

    Mark Hardwick, Chief Executive Officer, stated, “Given the disruption in the banking industry, we are pleased to share a quarter-end balance sheet that reflects a very safe and sound institution with continued growth.  Loans, Deposits, on-hand liquidity and capital all improved over year-end.  We prioritized enhancing our liquidity position during the quarter while also meeting the demands of the customer base.  Our team of bankers have been true brand ambassadors during the quarter by showing poise and confidence throughout the communities we serve.  We remain focused on delivering our plan for the year.”

    First Quarter Financial Results:

    First Merchants Corporation (the “Corporation) has reported first quarter 2023 net income available to common stockholders of $63.6 million compared to $48.6 million during the same period in 2022.  Earnings per share for the period totaled $1.07 per share compared to the first quarter of 2022 result of $.91 per share.

    Total assets equaled $18.2 billion as of quarter-end and loans totaled $12.3 billion.  Total loans increased $2.9 billion during the past twelve months.  The acquisition of Level One contributed $1.6 billion of loans.  Excluding acquired loans and PPP forgiveness, the Corporation experienced organic loan growth of $1.3 billion, or 14.4 percent, during the past twelve months. This was offset by the forgiveness of PPP loans of $88.5 million.  Total loans grew organically $237.9 or 7.9% annualized on a linked quarter basis.

    Investments, totaling $4.1 billion, decreased $431.9 million, or 9.6 percent, during the last twelve months and decreased $206.4 million or 19.4% annualized on a linked quarter basis.

     Total deposits equaled $14.7 billion as of quarter-end and increased by $1.8 billion over the past twelve months. The acquisition of Level One contributed $1.9 billion in deposits resulting in an organic deposit decline of $133.5 million or 1.0%.  Total deposits grew $320.5 million or 8.9% annualized on a linked quarter basis.  The loan to deposit ratio for the current quarter ended at 83.3 percent.

     The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $223.1 million as of quarter-end, or 1.82 percent of total loans, an increase of $27.1 million over prior year due to the acquisition of Level One.  Loan charge offs, net of recoveries, for the quarter totaled $0.2 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 0.30% for the first quarter of 2023, a decrease of two basis points compared to 0.32% in the first quarter of 2022.

    Net-interest income, totaling $144.1 million for the quarter, declined $4.9 million, or 3.3 percent, compared to prior quarter and increased $41.8 million, or 40.9 percent compared to the first quarter of 2022.  Stated net-interest margin on a tax equivalent basis, totaling 3.58 percent, declined by 14 basis points compared to the fourth quarter of 2022 and increased 55 basis points compared to the first quarter of 2022.  Net-interest margin excluding the impact of fair value accretion and PPP loans totaled 3.52%, a decrease of 13 basis points compared to 3.65% for the fourth quarter of 2022 and an increase of 55 basis points from the first quarter of 2022.  During the quarter, increased deposit costs and mix offset the increase in earning asset yields causing a reduction of margin of eight basis points.  The lower day count in the quarter caused a decline of five basis points.

     Non-interest income, totaling $25.0 million for the quarter, increased $0.9 million compared to the fourth quarter of 2022 and decreased $0.9 million from the first quarter of 2022. The increase over the fourth quarter of 2022 was driven primarily by higher card payment fees, derivative hedge fees, offset by losses on the sale of available for sale securities. 

     Non-interest expense totaled $93.7 million for the quarter, an increase of $4.0 million from the fourth quarter of 2022. The increase was primarily due to higher salaries, incentives and employee benefits offset by lower marketing expenses and FDIC assessments.  A one-time FDIC assessment credit of approximately $2.0 million was recorded lowering overall FDIC assessment cost for the quarter.  Additionally, gains on the sales of properties were recorded in the fourth quarter and reflected in Other Expenses that did not recur in the current quarter, causing a negative quarter-over quarter variance.

     The Corporation’s total risk-based capital ratio equaled 13.23 percent, common equity tier 1 capital ratio equaled 10.82 percent, and the tangible common equity ratio totaled 7.75 percent.  These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

    1 See “Non-GAAP Financial Information” for reconciliation

     

    CONFERENCE CALL

     

    First Merchants Corporation will conduct a first quarter earnings conference call and web cast at 10:30 a.m. (ET) on Tuesday, April 25, 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/BI257d3b7683714a4382f8765266a99667))

    In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/trq9ekv4) during the time of the call. A replay of the webcast will be available until April 25, 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.

     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) March 31,
      2023   2022
    ASSETS      
    Cash and due from banks $                  125,818   $                  148,277
    Interest-bearing deposits                     352,695                       395,262
    Investment securities, net of allowance for credit losses of $245,000 and $245,000                  4,057,389                    4,489,263
    Loans held for sale                        9,408                          3,938
    Loans                12,241,461                    9,356,241
    Less: Allowance for credit losses - loans                   (223,052)                     (195,984)
    Net loans                12,018,409                    9,160,257
    Premises and equipment                     115,857                       105,883
    Federal Home Loan Bank stock                      41,878                        26,422
    Interest receivable                      85,515                        56,081
    Goodwill and other intangibles                     745,647                       569,494
    Cash surrender value of life insurance                     309,090                       291,881
    Other real estate owned                        7,777                          6,271
    Tax asset, deferred and receivable                     103,070                        73,422
    Other assets                     206,355                       138,807
    TOTAL ASSETS $              18,178,908   $              15,465,258
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $               2,964,355   $               2,745,235
    Interest-bearing                11,738,932                  10,160,718
    Total Deposits                14,703,287                  12,905,953
    Borrowings:      
    Federal funds purchased                            20                               —
    Securities sold under repurchase agreements                     179,067                       169,697
    Federal Home Loan Bank advances                     823,577                       308,960
    Subordinated debentures and other borrowings                     151,312                       118,677
    Total Borrowings                  1,153,976                       597,334
    Interest payable                      11,979                          3,589
    Other liabilities                     187,218                       150,749
    Total Liabilities                16,056,460                  13,657,625
    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 - 59,257,051 and 53,424,823 shares                        7,407                          6,678
    Additional paid-in capital                  1,231,532                       987,404
    Retained earnings                  1,057,298                       897,818
    Accumulated other comprehensive loss                   (198,914)                       (84,392)
    Total Stockholders' Equity                  2,122,448                    1,807,633
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $              18,178,908   $              15,465,258


    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended
    (Dollars In Thousands, Except Per Share Amounts) March 31,
      2023   2022
    INTEREST INCOME      
    Loans receivable:      
    Taxable $              172,353   $               79,075
    Tax-exempt                    7,709                      5,704
    Investment securities:      
    Taxable                    9,087                      8,510
    Tax-exempt                  16,070                    15,875
    Deposits with financial institutions                      637                        230
    Federal Home Loan Bank stock                      542                        146
    Total Interest Income                206,398                  109,540
    INTEREST EXPENSE      
    Deposits                  50,685                      4,294
    Federal funds purchased                    1,297                          —
    Securities sold under repurchase agreements                      848                          89
    Federal Home Loan Bank advances                    7,064                      1,218
    Subordinated debentures and other borrowings                    2,385                      1,659
    Total Interest Expense                  62,279                      7,260
    NET INTEREST INCOME                144,119                  102,280
    Provision for credit losses - loans                        —                          —
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES                144,119                  102,280
    NON-INTEREST INCOME      
    Service charges on deposit accounts                    7,359                      6,419
    Fiduciary and wealth management fees                    7,862                      7,332
    Card payment fees                    5,172                      5,723
    Net gains and fees on sales of loans                    2,399                      2,199
    Derivative hedge fees                    1,148                        918
    Other customer fees                      517                        410
    Earnings on cash surrender value of life insurance                    1,288                      1,696
    Net realized gains (losses) on sales of available for sale securities                  (1,571)                        566
    Other income                      823                        634
    Total Non-Interest Income                  24,997                    25,897
    NON-INTEREST EXPENSES      
    Salaries and employee benefits                  57,459                    42,519
    Net occupancy                    7,259                      6,187
    Equipment                    6,126                      5,080
    Marketing                    1,309                        736
    Outside data processing fees                    6,113                      4,363
    Printing and office supplies                      383                        345
    Intangible asset amortization                    2,197                      1,366
    FDIC assessments                    1,396                      2,192
    Other real estate owned and foreclosure expenses                       (18)                        564
    Professional and other outside services                    3,698                      2,953
    Other expenses                    7,798                      6,020
    Total Non-Interest Expenses                  93,720                    72,325
    INCOME BEFORE INCOME TAX                  75,396                    55,852
    Income tax expense                  11,317                      7,266
    NET INCOME                  64,079                    48,586
    Preferred stock dividends                      469                          —
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $               63,610   $               48,586
    Per Share Data:      
    Basic Net Income Available to Common Stockholders $                   1.07   $                   0.91
    Diluted Net Income Available to Common Stockholders $                   1.07   $                   0.91
    Cash Dividends Paid to Common Stockholders $                   0.32   $                   0.29
    Average Diluted Common Shares Outstanding (in thousands)                  59,441                    53,616


    FINANCIAL HIGHLIGHTS      
    (Dollars in thousands) Three Months Ended
      March 31,
      2023   2022
    NET CHARGE-OFFS (RECOVERIES) $                 225      $               (587)  
           
    AVERAGE BALANCES:      
    Total Assets $       18,022,195      $       15,464,605   
    Total Loans         12,135,384                9,255,928   
    Total Earning Assets         16,824,407              14,262,777   
    Total Deposits         14,423,409              12,817,690   
    Total Stockholders' Equity           2,083,125                1,891,223   
           
    FINANCIAL RATIOS:      
    Return on Average Assets 1.42 %   1.26 %
    Return on Average Stockholders' Equity                 12.21                      10.28   
    Return on Tangible Common Stockholders' Equity                 19.82                      14.99   
    Average Earning Assets to Average Assets                 93.35                      92.23   
    Allowance for Credit Losses - Loans as % of Total Loans                   1.82                        2.09   
    Net Charge-offs as % of Average Loans (Annualized)                   0.01                      (0.03)  
    Average Stockholders' Equity to Average Assets                 11.56                      12.23   
    Tax Equivalent Yield on Average Earning Assets                   5.06                        3.23   
    Interest Expense/Average Earning Assets                   1.48                        0.20   
    Net Interest Margin (FTE) on Average Earning Assets                   3.58                        3.03   
    Efficiency Ratio                 51.72                      52.79   
    Tangible Common Book Value Per Share $              22.93      $              23.26   


    NON-PERFORMING ASSETS                  
    (Dollars In Thousands) March 31,   December 31,   September 30,   June 30,   March 31,
      2023   2022   2022   2022   2022
    Non-Accrual Loans $        46,576      $        42,324      $        43,508      $        45,970      $        42,698   
    Troubled Debt Restructures (TDR)                 —                    224                    195                    233                    141   
    Non-Performing Loans (NPL)           46,576                42,548                43,703                46,203                42,839   
    Other Real Estate Owned and Repossessions            7,777                 6,431                 6,454                 6,521                 6,271   
    Non-Performing Assets (NPA)           54,353                48,979                50,157                52,724                49,110   
    90+ Days Delinquent            7,032                 1,737                    764                    592                 2,085   
    NPAs & 90 Day Delinquent $        61,385      $        50,716      $        50,921      $        53,316      $        51,195   
                       
    Allowance for Credit Losses - Loans $      223,052      $      223,277      $      226,702      $      226,275      $      195,984   
    Quarterly Net Charge-offs (Recoveries)               225                 2,674                  (427)                   263                  (587)  
    NPAs / Actual Assets % 0.30 %   0.27 %   0.28 %   0.30 %   0.32 %
    NPAs & 90 Day / Actual Assets % 0.34 %   0.28 %   0.29 %   0.30 %   0.33 %
    NPAs / Actual Loans and OREO % 0.44 %   0.41 %   0.43 %   0.46 %   0.52 %
    Allowance for Credit Losses - Loans / Actual Loans (%) 1.82 %   1.86 %   1.94 %   1.98 %   2.09 %
    Net Charge-offs (Recoveries) as % of Average Loans (Annualized) 0.01 %   0.12 %   (0.01)        %   0.01 %   (0.03)        %

     

    CONSOLIDATED BALANCE SHEETS                  
    (Dollars In Thousands) March 31,   December 31,   September 30,   June 30,   March 31,
      2023   2022   2022   2022   2022
    ASSETS                  
    Cash and due from banks $         125,818   $         122,594   $         119,532   $         212,559   $         148,277
    Interest-bearing deposits            352,695              126,061              179,593              136,702              395,262
    Investment securities, net of allowance for credit losses         4,057,389           4,263,788           4,294,768           4,630,030           4,489,263
    Loans held for sale               9,408                 9,094               25,394                 9,060                 3,938
    Loans       12,241,461         12,003,894         11,650,002         11,397,417           9,356,241
    Less: Allowance for credit losses - loans          (223,052)            (223,277)            (226,702)            (226,275)            (195,984)
    Net loans       12,018,409         11,780,617         11,423,300         11,171,142           9,160,257
    Premises and equipment            115,857              117,118              116,306              117,757              105,883
    Federal Home Loan Bank stock             41,878               38,525               38,056               38,111               26,422
    Interest receivable             85,515               85,070               71,605               68,728               56,081
    Goodwill and other intangibles            745,647              747,844              750,713              753,649              569,494
    Cash surrender value of life insurance            309,090              308,311              306,932              323,013              291,881
    Other real estate owned               7,777                 6,431                 6,454                 6,521                 6,271
    Tax asset, deferred and receivable            103,070              111,222              142,110              114,965               73,422
    Other assets            206,355              221,631              244,222              198,255              138,807
    TOTAL ASSETS $     18,178,908   $     17,938,306   $     17,718,985   $     17,780,492   $     15,465,258
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $      2,964,355   $      3,173,417   $      3,356,651   $      3,435,331   $      2,745,235
    Interest-bearing       11,738,932         11,209,328         11,078,174         11,135,538         10,160,718
    Total Deposits       14,703,287         14,382,745         14,434,825         14,570,869         12,905,953
    Borrowings:                  
    Federal funds purchased                   20              171,560              185,000              100,000                      —
    Securities sold under repurchase agreements            179,067              167,413              194,482              186,468              169,697
    Federal Home Loan Bank advances            823,577              823,674              643,769              598,865              308,960
    Subordinated debentures and other borrowings            151,312              151,298              151,301              151,299              118,677
    Total Borrowings         1,153,976           1,313,945           1,174,552           1,036,632              597,334
    Interest payable             11,979                 7,530                 4,971                 2,978                 3,589
    Other liabilities            187,218              199,316              197,971              192,372              150,749
    Total Liabilities       16,056,460         15,903,536         15,812,319         15,802,851         13,657,625
    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                      —
    Common Stock, $.125 stated value:                  
    Authorized -- 100,000,000 shares                  
    Issued and outstanding               7,407                 7,396                 7,393                 7,383                 6,678
    Additional paid-in capital         1,231,532           1,228,626           1,226,695           1,226,378              987,404
    Retained earnings         1,057,298           1,012,774              961,542              917,311              897,818
    Accumulated other comprehensive loss          (198,914)            (239,151)            (314,089)            (198,556)              (84,392)
    Total Stockholders' Equity         2,122,448           2,034,770           1,906,666           1,977,641           1,807,633
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $     18,178,908   $     17,938,306   $     17,718,985   $     17,780,492   $     15,465,258
                       


    CONSOLIDATED STATEMENTS OF INCOME                  
    (Dollars In Thousands, Except Per Share Amounts) March   December 31,   September 30,   June 30,   March 31,
      2023   2022   2022   2022   2022
    INTEREST INCOME                  
    Loans receivable:                  
    Taxable $      172,353      $      156,102      $      128,504      $      106,787      $        79,075   
    Tax-exempt            7,709                 6,930                 6,500                 5,990                 5,704   
    Investment securities:                  
    Taxable            9,087                 9,417                10,055                10,372                 8,510   
    Tax-exempt           16,070                17,033                17,261                17,212                15,875   
    Deposits with financial institutions               637                    959                    704                    610                    230   
    Federal Home Loan Bank stock               542                    541                    314                    175                    146   
    Total Interest Income         206,398              190,982              163,338              141,146              109,540   
    INTEREST EXPENSE                  
    Deposits           50,685                33,516                16,644                 8,485                 4,294   
    Federal funds purchased            1,297                    808                    418                      76                      —   
    Securities sold under repurchase agreements               848                    541                    372                    134                      89   
    Federal Home Loan Bank advances            7,064                 4,932                 3,493                 1,774                 1,218   
    Subordinated debentures and other borrowings            2,385                 2,229                 2,105                 2,016                 1,659   
    Total Interest Expense           62,279                42,026                23,032                12,485                 7,260   
    NET INTEREST INCOME         144,119              148,956              140,306              128,661              102,280   
    Provision for credit losses - loans                 —                      —                      —                16,755                      —   
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES         144,119              148,956              140,306              111,906              102,280   
    NON-INTEREST INCOME                  
    Service charges on deposit accounts            7,359                 7,097                 7,165                 7,690                 6,419   
    Fiduciary and wealth management fees            7,862                 7,501                 7,221                 7,634                 7,332   
    Card payment fees            5,172                 4,533                 4,776                 5,175                 5,723   
    Net gains and fees on sales of loans            2,399                 2,087                 2,543                 3,226                 2,199   
    Derivative hedge fees            1,148                    326                    700                 1,444                    918   
    Other customer fees               517                    362                    501                    662                    410   
    Earnings on cash surrender value of life insurance            1,288                 1,515                 6,655                 1,308                 1,696   
    Net realized gains (losses) on sales of available for sale securities           (1,571)                     57                    481                      90                    566   
    Other income (loss)               823                    672                  (425)                1,048                    634   
    Total Non-Interest Income           24,997                24,150                29,617                28,277                25,897   
    NON-INTEREST EXPENSES                  
    Salaries and employee benefits           57,459                52,331                56,002                56,041                42,519   
    Net occupancy            7,259                 6,638                 6,738                 6,648                 6,187   
    Equipment            6,126                 6,148                 5,997                 6,720                 5,080   
    Marketing            1,309                 3,157                 2,401                 1,414                    736   
    Outside data processing fees            6,113                 5,611                 6,827                 4,881                 4,363   
    Printing and office supplies               383                    390                    472                    381                    345   
    Intangible asset amortization            2,197                 2,303                 2,303                 2,303                 1,366   
    FDIC assessments            1,396                 2,295                 2,824                 2,924                 2,192   
    Other real estate owned and foreclosure expenses               (18)                   197                    328                  (266)                   564   
    Professional and other outside services            3,698                 3,961                 4,461                10,267                 2,953   
    Other expenses            7,798                 6,668                 8,025                 6,000                 6,020   
    Total Non-Interest Expenses           93,720                89,699                96,378                97,313                72,325   
    INCOME BEFORE INCOME TAX           75,396                83,407                73,545                42,870                55,852   
    Income tax expense           11,317                12,647                 9,793                 3,879                 7,266   
    NET INCOME           64,079                70,760                63,752                38,991                48,586   
    Preferred stock dividends               469                    468                    469                    469                      —   
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $        63,610      $        70,292      $        63,283      $        38,522      $        48,586   
    Per Share Data:                  
    Basic Net Income Available to Common Stockholders $           1.07      $           1.20      $           1.08      $           0.64      $           0.91   
    Diluted Net Income Available to Common Stockholders $           1.07      $           1.19      $           1.08      $           0.63      $           0.91   
    Cash Dividends Paid to Common Stockholders $           0.32      $           0.32      $           0.32      $           0.32      $           0.29   
    Average Diluted Common Shares Outstanding (in thousands)           59,441                59,384                59,339                59,308                53,616   
    FINANCIAL RATIOS:                  
    Return on Average Assets 1.42 %   1.59 %   1.43 %   0.88 %   1.26 %
    Return on Average Stockholders' Equity            12.21                 14.36                 12.54                   7.62                 10.28   
    Return on Tangible Common Stockholders' Equity            19.82                 24.21                 20.85                 12.91                 14.99   
    Average Earning Assets to Average Assets            93.35                 93.66                 92.90                 92.45                 92.23   
    Allowance for Credit Losses - Loans as % of Total Loans              1.82                   1.86                   1.94                   1.98                   2.09   
    Net Charge-offs (Recoveries) as % of Average Loans (Annualized)              0.01                   0.12                  (0.01)                  0.01                  (0.03)  
    Average Stockholders' Equity to Average Assets            11.56                 10.98                 11.36                 11.37                 12.23   
    Tax Equivalent Yield on Average Earning Assets              5.06                   4.73                   4.11                   3.58                   3.23   
    Interest Expense/Average Earning Assets              1.48                   1.01                   0.56                   0.30                   0.20   
    Net Interest Margin (FTE) on Average Earning Assets              3.58                   3.72                   3.55                   3.28                   3.03   
    Efficiency Ratio            51.72                 48.60                 53.34                 58.45                 52.79   
    Tangible Common Book Value Per Share $          22.93      $          21.45      $          19.26      $          20.45      $          23.26   


    LOANS                  
    (Dollars In Thousands) March 31,   December 31,   September 30,   June 30,   March 31,
      2023   2022   2022   2022   2022
    Commercial and industrial loans $      3,502,204   $      3,437,126   $      3,330,529   $      3,297,477   $      2,826,660
    Agricultural land, production and other loans to farmers            219,598              241,793              221,954              214,904              209,077
    Real estate loans:                  
    Construction            960,979              835,582              828,923              745,983              552,975
    Commercial real estate, non-owner occupied         2,375,410           2,407,475           2,299,272           2,423,185           2,073,197
    Commercial real estate, owner occupied         1,244,117           1,246,528           1,268,567           1,264,563              974,521
    Residential         2,185,943           2,096,655           1,990,668           1,813,297           1,226,695
    Home equity            621,354              630,632              621,619              586,108              512,641
    Individuals' loans for household and other personal expenditures            172,389              175,211              173,225              157,264              147,593
    Public finance and other commercial loans            959,467              932,892              915,245              894,636              832,882
    Loans       12,241,461         12,003,894         11,650,002         11,397,417           9,356,241
    Allowance for credit losses - loans          (223,052)            (223,277)            (226,702)            (226,275)            (195,984)
    NET LOANS $     12,018,409   $     11,780,617   $     11,423,300   $     11,171,142   $      9,160,257


    DEPOSITS                  
    (Dollars In Thousands) March 31,   December 31,   September 30,   June 30,   March 31,
      2023   2022   2022   2022   2022
    Demand deposits $      8,422,387   $      8,448,797   $      8,534,950   $      8,785,889   $      7,806,033
    Savings deposits         4,499,487           4,657,140           5,054,490           4,875,880           4,444,417
    Certificates and other time deposits of $100,000 or more         1,040,379              742,539              443,588              436,942              252,033
    Other certificates and time deposits            574,886              468,712              381,365              446,973              380,293
    Brokered certificates of deposits            166,148               65,557               20,432               25,185               23,177
    TOTAL DEPOSITS $     14,703,287   $     14,382,745   $     14,434,825   $     14,570,869   $     12,905,953

     

    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS            
    (Dollars in Thousands)                      
      For the Three Months Ended
      March 31, 2023   March 31, 2022
      Average Balance   Interest
     Income /
    Expense     		  Average
    Rate     		  Average Balance   Interest
     Income /
    Expense     		  Average
    Rate
    ASSETS                      
    Interest-bearing deposits $         172,814   $           637   1.47 %   $         484,626   $           230   0.19 %
    Federal Home Loan Bank stock             39,759                542   5.45                  27,914                146   2.09   
    Investment securities: (1)                      
    Taxable         1,924,079             9,087   1.89              1,957,675             8,510   1.74   
    Tax-exempt (2)         2,552,371           20,342   3.19              2,536,634           20,095   3.17   
    Total Investment Securities         4,476,450           29,429   2.63              4,494,309           28,605   2.55   
    Loans held for sale             23,538                360   6.12                    4,352                 40   3.68   
    Loans: (3)                      
    Commercial         8,483,879          139,661   6.58              6,868,438           64,679   3.77   
    Real estate mortgage         1,914,640           18,391   3.84                 924,268             7,840   3.39   
    Installment            840,450           13,941   6.64                 711,038             6,516   3.67   
    Tax-exempt (2)            872,877             9,758   4.47                 747,832             7,220   3.86   
    Total Loans       12,135,384          182,111   6.00              9,255,928           86,295   3.73   
    Total Earning Assets       16,824,407          212,719   5.06 %         14,262,777          115,276   3.23 %
    Total Non-Earning Assets         1,197,788                   1,201,828        
    TOTAL ASSETS $     18,022,195           $     15,464,605        
    LIABILITIES                      
    Interest-bearing deposits:                      
    Interest-bearing deposits $      5,263,601   $       24,662   1.87 %   $      5,027,466   $        2,408   0.19 %
    Money market deposits         2,746,047           13,577   1.98              2,514,429                872   0.14   
    Savings deposits         1,826,209             2,965   0.65              1,867,411                441   0.09   
    Certificates and other time deposits         1,466,275             9,481   2.59                 676,661                573   0.34   
    Total Interest-Bearing Deposits       11,302,132           50,685   1.79            10,085,967             4,294   0.17   
    Borrowings:         1,293,309           11,594   3.59                 616,572             2,966   1.92   
    Total Interest-Bearing Liabilities       12,595,441           62,279   1.98            10,702,539             7,260   0.27   
    Noninterest-bearing deposits         3,121,277                   2,731,723        
    Other liabilities            222,352                      139,120        
    Total Liabilities       15,939,070                 13,573,382        
    STOCKHOLDERS' EQUITY         2,083,125                   1,891,223        
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $     18,022,195           62,279       $     15,464,605             7,260    
    Net Interest Income (FTE)     $     150,440           $     108,016    
    Net Interest Spread (FTE) (4)        3.08 %           2.96 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.06 %           3.23 %
    Interest Expense / Average Earning Assets         1.48 %           0.20 %
    Net Interest Margin (FTE) (5)        3.58 %           3.03 %
                           
    (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 $6,321 and $5,736 for the three months ended March 31, 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
      March 31,   December 31,   September 30,   June 30,   March 31,
      2023   2022   2022   2022   2022
    Net Income Available to Common Stockholders - GAAP $         63,610   $         70,292   $         63,283   $         38,522   $         48,586
    Adjustments:                  
    PPP loan income                (25)                (109)                 (323)                (891)              (1,884)
    Acquisition-related expenses                  —                  413                3,417             12,549                  152
    Acquisition-related provision expense                  —                    —                    —             16,755                    —
    Tax on adjustment                   6                  (75)                 (759)              (6,967)                  425
    Adjusted Net Income Available to Common Stockholders - Non-GAAP $         63,591   $         70,521   $         65,618   $         59,968   $         47,279
                       
    Average Diluted Common Shares Outstanding (in thousands)           59,441             59,384              59,339             59,308             53,616
                       
    Diluted Earnings Per Common Share - GAAP $            1.07   $            1.19   $             1.08   $            0.63   $            0.91
    Adjustments:                  
    PPP loan income                  —               (0.01)                    —               (0.01)               (0.04)
    Acquisition-related expenses                  —   0.01   0.05                 0.22                    —
    Acquisition-related provision expense                  —                    —                    —                 0.30                    —
    Tax on adjustment                  —                    —                (0.01)               (0.13)                 0.01
    Adjusted Diluted Earnings Per Common Share - Non-GAAP $            1.07   $            1.19   $             1.12   $            1.01   $            0.88

     

    RETURN ON TANGIBLE COMMON EQUITY                  
    (Dollars In Thousands) Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
      2023   2022   2022   2022   2022
    Total Average Stockholders' Equity (GAAP) $  2,083,125      $  1,958,041      $   2,018,156      $  2,021,123      $  1,891,223   
    Less: Average Preferred Stock       (25,125)           (25,125)            (25,125)           (25,125)               (125)  
    Less: Average Intangible Assets, Net of Tax     (739,190)         (741,632)           (744,069)         (745,614)         (565,476)  
    Average Tangible Common Equity, Net of Tax (Non-GAAP) $  1,318,810      $  1,191,284      $   1,248,962      $  1,250,384      $  1,325,622   
                       
    Net Income Available to Common Stockholders (GAAP) $      63,610      $      70,292      $       63,283      $      38,521      $      48,586   
    Plus: Intangible Asset Amortization, Net of Tax          1,734               1,819                 1,819               1,820               1,079   
    Tangible Net Income (Non-GAAP) $      65,344      $      72,111      $       65,102      $      40,341      $      49,665   
                       
    Return on Tangible Common Equity (Non-GAAP) 19.82 %   24.21 %   20.85 %   12.91 %   14.99 %
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