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NEWS
News

Tuesday, July 25, 2023

First Merchants Corporation (NASDAQ - FRME)

 Second Quarter 2023 Highlights:

  • Net income available to common stockholders was $60.4 million and diluted earnings per common share totaled $1.02, compared to $38.5 million and $.63 in the second quarter of 2022, and $63.6 million and $1.07 in the first quarter of 2023.
  • Adjusted net income1 was $60.4 million and adjusted diluted earnings per share1 totaled $1.02, compared to $60.0 million and $1.01 in the second quarter of 2022, and $63.6 million and $1.07 in the first quarter of 2023.
  • Strong capital position with Common Equity Tier 1 Capital Ratio of 11.07 percent
  • Total loans grew $46.7 million, or 1.5 percent annualized on a linked quarter basis, and $163.2 million, or 5.4 percent annualized when excluding non-relationship based commercial loan sales that occurred during the quarter of $116.6 million.
  • Total deposits declined $122.1 million, or 3.3 percent annualized on a linked quarter basis
  • Nonaccrual loans totaled $69.2 million compared to $46.6 million on a linked quarter basis
  • The efficiency ratio totaled 52.21 percent for the quarter

     

    Mark Hardwick, Chief Executive Officer, stated, “We are pleased to report our second quarter 2023 results.  Performance remains healthy and strong and our teams continue to meet the demands of our communities and client base.”

    Second Quarter Financial Results:

    First Merchants Corporation (the “Corporation) has reported second quarter 2023 net income available to common stockholders of $60.4 million compared to $38.5 million during the same period in 2022.  Diluted earnings per common share for the period totaled $1.02 per share compared to the second quarter of 2022 result of $.63 per share. Prior year results included acquisition costs related to the acquisition of Level One of $29.3 million resulting in a reduction of $.38 of diluted earnings per common share.

    Total assets equaled $18.0 billion as of quarter-end and loans totaled $12.3 billion.  During the past twelve months, total loans grew by $1.0 billion, or 9.2 percent and were offset by the non-relationship based commercial loan sale of $116.6 million and PPP loan forgiveness of $29.6 million.  On a linked quarter basis, loans grew $163.2 million, or 5.4 percent, when excluding the loan sale that occurred during the quarter of $116.6 million.

    Investments, totaling $3.9 billion, decreased $738.5 million, or 16.0 percent, during the last twelve months and decreased $165.9 million, or 16.4 percent annualized on a linked quarter basis. The decline during the quarter was primarily due to $101.0 million of bond sales.

    Total deposits equaled $14.6 billion as of quarter-end and increased by $10.3 million over the past twelve months. Total deposits declined $122.1 million, or 3.3 percent annualized on a linked quarter basis.  The loan to deposit ratio for the current quarter ended at 84.3 percent.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $221.1 million as of quarter-end, or 1.80 percent of total loans, a decrease of $5.1 million from prior year.  Loan charge-offs, net of recoveries, for the quarter totaled $1.9 million.  No provision expense was recorded during the quarter or during the last twelve months. Non-performing assets to total assets were 0.43 percent for the second quarter of 2023, an increase of 13 basis points compared to 0.30 percent in the second quarter of 2022.

    Net-interest income, totaling $137.8 million for the quarter, declined $6.3 million, or 4.4 percent, compared to prior quarter and increased $9.2 million, or 7.1 percent compared to the second quarter of 2022.  Stated net-interest margin on a tax equivalent basis, totaling 3.39 percent, declined by 19 basis points compared to the first quarter of 2023 but increased 11 basis points compared to the second quarter of 2022.  Net-interest margin, excluding the impact of fair value accretion and PPP loans, totaled 3.34 percent, a decrease of 18 basis points compared to 3.52 percent for the first quarter of 2023 but an increase of 15 basis points from the second quarter of 2022.  During the quarter, increased deposit costs and mix offset the increase in earning asset yields reducing net-interest margin.

    Non-interest income, totaling $26.3 million for the quarter, increased $1.3 million or 5.3 percent compared to the first quarter of 2023 but decreased $2.0 million from the second quarter of 2022. The increase over first quarter of 2023 was driven primarily by higher gains on the sales of loans and BOLI death benefit gains.

    Non-interest expense totaled $92.6 million for the quarter, a decline of $1.1 million from the first quarter of 2023.  The decrease was from lower salaries and employee benefits, partially offset by increases in FDIC assessments and other real estate owned and foreclosure expense. 

    The Corporation’s total risk-based capital ratio equaled 13.48 percent, common equity tier 1 capital ratio equaled 11.07 percent, and the tangible common equity ratio totaled 7.99 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 second quarter earnings conference call and web cast at 11:30 a.m. (ET) on Tuesday, July 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/BIc7becea7282048a2b5559e10b25ca4af)

    In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/athyqu7i) during the time of the call. A replay of the webcast will be available until July 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) June 30,
      2023   2022
    ASSETS      
    Cash and due from banks $                  108,975   $                  212,559
    Interest-bearing deposits                     219,480                       136,702
    Investment securities, net of allowance for credit losses of $245,000 and $245,000                  3,891,491                    4,630,030
    Loans held for sale                      27,297                          9,060
    Loans                12,270,233                  11,397,417
    Less: Allowance for credit losses - loans                   (221,147)                     (226,275)
    Net loans                12,049,086                  11,171,142
    Premises and equipment                     114,402                       117,757
    Federal Home Loan Bank stock                      41,842                        38,111
    Interest receivable                      89,784                        68,728
    Goodwill and other intangibles                     743,465                       753,649
    Cash surrender value of life insurance                     307,020                       323,013
    Other real estate owned                        7,685                          6,521
    Tax asset, deferred and receivable                     113,724                       114,965
    Other assets                     254,161                       198,255
    TOTAL ASSETS $              17,968,412   $              17,780,492
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $               2,636,017   $               3,435,331
    Interest-bearing                11,945,138                  11,135,538
    Total Deposits                14,581,155                  14,570,869
    Borrowings:      
    Federal funds purchased                             —                       100,000
    Securities sold under repurchase agreements                     152,472                       186,468
    Federal Home Loan Bank advances                     723,480                       598,865
    Subordinated debentures and other borrowings                     151,325                       151,299
    Total Borrowings                  1,027,277                    1,036,632
    Interest payable                      13,595                          2,978
    Other liabilities                     200,820                       192,372
    Total Liabilities                15,822,847                  15,802,851
    STOCKHOLDERS' EQUITY      
    Preferred Stock, $1,000 par value, $1,000 liquidation value:      
    Authorized -- 600 cumulative shares      
    Issued and outstanding - 125 cumulative shares                           125                             125
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:      
    Authorized -- 10,000 non-cumulative perpetual shares      
    Issued and outstanding - 10,000 non-cumulative perpetual shares                      25,000                        25,000
    Common Stock, $.125 stated value:      
    Authorized -- 100,000,000 shares      
    Issued and outstanding - 59,297,148 and 59,059,866 shares                        7,412                          7,383
    Additional paid-in capital                  1,233,593                    1,226,378
    Retained earnings                  1,097,399                       917,311
    Accumulated other comprehensive loss                   (217,964)                     (198,556)
    Total Stockholders' Equity                  2,145,565                    1,977,641
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $              17,968,412   $              17,780,492


    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended   Six Months Ended
    (Dollars In Thousands, Except Per Share Amounts) June 30,   June 30,
      2023   2022   2023   2022
    INTEREST INCOME              
    Loans receivable:              
    Taxable $              186,256   $              106,787   $              358,609   $              185,862
    Tax-exempt                    7,760                      5,990                    15,469                    11,694
    Investment securities:              
    Taxable                    8,886                    10,372                    17,973                    18,882
    Tax-exempt                  14,279                    17,212                    30,349                    33,087
    Deposits with financial institutions                    3,164                        610                      3,801                        840
    Federal Home Loan Bank stock                    1,020                        175                      1,562                        321
    Total Interest Income                221,365                  141,146                  427,763                  250,686
    INTEREST EXPENSE              
    Deposits                  73,201                      8,485                  123,886                    12,779
    Federal funds purchased                      123                          76                      1,420                          76
    Securities sold under repurchase agreements                      979                        134                      1,827                        223
    Federal Home Loan Bank advances                    6,815                      1,774                    13,879                      2,992
    Subordinated debentures and other borrowings                    2,412                      2,016                      4,797                      3,675
    Total Interest Expense                  83,530                    12,485                  145,809                    19,745
    NET INTEREST INCOME                137,835                  128,661                  281,954                  230,941
    Provision for credit losses - loans                        —                    16,755                          —                    16,755
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES                137,835                  111,906                  281,954                  214,186
    NON-INTEREST INCOME              
    Service charges on deposit accounts                    7,813                      7,690                    15,172                    14,109
    Fiduciary and wealth management fees                    7,397                      7,634                    15,259                    14,966
    Card payment fees                    4,537                      5,175                      9,709                    10,898
    Net gains and fees on sales of loans                    3,632                      3,226                      6,031                      5,425
    Derivative hedge fees                      672                      1,444                      1,820                      2,362
    Other customer fees                      742                        662                      1,259                      1,072
    Earnings on cash surrender value of life insurance                    2,096                      1,308                      3,384                      3,004
    Net realized gains (losses) on sales of available for sale securities                  (1,392)                          90                    (2,963)                        656
    Other income                      822                      1,048                      1,645                      1,682
    Total Non-Interest Income                  26,319                    28,277                    51,316                    54,174
    NON-INTEREST EXPENSES              
    Salaries and employee benefits                  54,753                    56,041                  112,212                    98,560
    Net occupancy                    6,674                      6,648                    13,933                    12,835
    Equipment                    6,181                      6,720                    12,307                    11,800
    Marketing                    1,102                      1,414                      2,411                      2,150
    Outside data processing fees                    6,604                      4,881                    12,717                      9,244
    Printing and office supplies                      434                        381                        817                        726
    Intangible asset amortization                    2,182                      2,303                      4,379                      3,669
    FDIC assessments                    2,740                      2,924                      4,136                      5,116
    Other real estate owned and foreclosure expenses                      916                       (266)                        898                        298
    Professional and other outside services                    4,660                    10,267                      8,358                    13,220
    Other expenses                    6,347                      6,000                    14,145                    12,020
    Total Non-Interest Expenses                  92,593                    97,313                  186,313                  169,638
    INCOME BEFORE INCOME TAX                  71,561                    42,870                  146,957                    98,722
    Income tax expense                  10,699                      3,879                    22,016                    11,145
    NET INCOME                  60,862                    38,991                  124,941                    87,577
    Preferred stock dividends                      469                        469                        938                        469
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $               60,393   $               38,522   $              124,003   $               87,108
    Per Share Data:              
    Basic Net Income Available to Common Stockholders $                   1.02   $                   0.64   $                   2.09   $                   1.55
    Diluted Net Income Available to Common Stockholders $                   1.02   $                   0.63   $                   2.09   $                   1.54
    Cash Dividends Paid to Common Stockholders $                   0.34   $                   0.32   $                   0.66   $                   0.61
    Average Diluted Common Shares Outstanding (in thousands)                  59,448                    59,308                    59,446                    56,516


    FINANCIAL HIGHLIGHTS              
    (Dollars in thousands) Three Months Ended   Six  Months Ended
      June 30,   June 30,
      2023   2022   2023   2022
    NET CHARGE-OFFS (RECOVERIES) $              1,905      $                 263      $              2,130      $               (324)  
                   
    AVERAGE BALANCES:              
    Total Assets $       18,170,649      $       17,778,221      $       18,096,832      $       16,627,804   
    Total Loans         12,369,673              11,175,188              12,253,176              10,220,860   
    Total Earning Assets         16,968,465              16,435,747              16,896,834              15,355,265   
    Total Deposits         14,719,913              14,809,528              14,572,480              13,819,111   
    Total Stockholders' Equity           2,139,877                2,021,123                2,111,658                1,956,532   
                   
    FINANCIAL RATIOS:              
    Return on Average Assets 1.34 %   0.88 %   1.38 %   1.05 %
    Return on Average Stockholders' Equity                 11.29                        7.62                      11.74                        8.90   
    Return on Tangible Common Stockholders' Equity                 18.04                      12.91                      18.91                      13.98   
    Average Earning Assets to Average Assets                 93.38                      92.45                      93.37                      92.35   
    Allowance for Credit Losses - Loans as % of Total Loans                   1.80                        1.98                        1.80                        1.98   
    Net Charge-offs as % of Average Loans (Annualized)                   0.06                        0.01                        0.03                      (0.01)  
    Average Stockholders' Equity to Average Assets                 11.78                      11.37                      11.67                      11.77   
    Tax Equivalent Yield on Average Earning Assets                   5.36                        3.58                        5.21                        3.42   
    Interest Expense/Average Earning Assets                   1.97                        0.30                        1.73                        0.26   
    Net Interest Margin (FTE) on Average Earning Assets                   3.39                        3.28                        3.48                        3.16   
    Efficiency Ratio                 52.21                      58.45                      51.96                      55.90   
    Tangible Common Book Value Per Share $              23.34      $              20.45      $              23.34      $              20.45   


    NON-PERFORMING ASSETS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
      2023   2023   2022   2022   2022
    Non-Accrual Loans $        69,240      $        46,576      $        42,324      $        43,508      $        45,970   
    Troubled Debt Restructures (TDR)                 —                      —                    224                    195                    233   
    Non-Performing Loans (NPL)           69,240                46,576                42,548                43,703                46,203   
    Other Real Estate Owned and Repossessions            7,685                 7,777                 6,431                 6,454                 6,521   
    Non-Performing Assets (NPA)           76,925                54,353                48,979                50,157                52,724   
    90+ Days Delinquent               428                 7,032                 1,737                    764                    592   
    NPAs & 90 Day Delinquent $        77,353      $        61,385      $        50,716      $        50,921      $        53,316   
                       
    Allowance for Credit Losses - Loans $      221,147      $      223,052      $      223,277      $      226,702      $      226,275   
    Quarterly Net Charge-offs (Recoveries)            1,905                    225                 2,674                  (427)                   263   
    NPAs / Actual Assets % 0.43 %   0.30 %   0.27 %   0.28 %   0.30 %
    NPAs & 90 Day / Actual Assets % 0.43 %   0.34 %   0.28 %   0.29 %   0.30 %
    NPAs / Actual Loans and OREO % 0.63 %   0.44 %   0.41 %   0.43 %   0.46 %
    Allowance for Credit Losses - Loans / Actual Loans (%) 1.80 %   1.82 %   1.86 %   1.94 %   1.98 %
    Net Charge-offs (Recoveries) as % of Average Loans (Annualized) 0.06 %   0.01 %   0.12 %   (0.01)        %   0.01 %


    CONSOLIDATED BALANCE SHEETS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
      2023   2023   2022   2022   2022
    ASSETS                  
    Cash and due from banks $         108,975   $         125,818   $         122,594   $         119,532   $         212,559
    Interest-bearing deposits            219,480              352,695              126,061              179,593              136,702
    Investment securities, net of allowance for credit losses         3,891,491           4,057,389           4,263,788           4,294,768           4,630,030
    Loans held for sale             27,297                 9,408                 9,094               25,394                 9,060
    Loans       12,270,233         12,241,461         12,003,894         11,650,002         11,397,417
    Less: Allowance for credit losses - loans          (221,147)            (223,052)            (223,277)            (226,702)            (226,275)
    Net loans       12,049,086         12,018,409         11,780,617         11,423,300         11,171,142
    Premises and equipment            114,402              115,857              117,118              116,306              117,757
    Federal Home Loan Bank stock             41,842               41,878               38,525               38,056               38,111
    Interest receivable             89,784               85,515               85,070               71,605               68,728
    Goodwill and other intangibles            743,465              745,647              747,844              750,713              753,649
    Cash surrender value of life insurance            307,020              309,090              308,311              306,932              323,013
    Other real estate owned               7,685                 7,777                 6,431                 6,454                 6,521
    Tax asset, deferred and receivable            113,724              103,070              111,222              142,110              114,965
    Other assets            254,161              206,355              221,631              244,222              198,255
    TOTAL ASSETS $     17,968,412   $     18,178,908   $     17,938,306   $     17,718,985   $     17,780,492
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $      2,636,017   $      2,964,355   $      3,173,417   $      3,356,651   $      3,435,331
    Interest-bearing       11,945,138         11,738,932         11,209,328         11,078,174         11,135,538
    Total Deposits       14,581,155         14,703,287         14,382,745         14,434,825         14,570,869
    Borrowings:                  
    Federal funds purchased                    —                     20              171,560              185,000              100,000
    Securities sold under repurchase agreements            152,472              179,067              167,413              194,482              186,468
    Federal Home Loan Bank advances            723,480              823,577              823,674              643,769              598,865
    Subordinated debentures and other borrowings            151,325              151,312              151,298              151,301              151,299
    Total Borrowings         1,027,277           1,153,976           1,313,945           1,174,552           1,036,632
    Interest payable             13,595               11,979                 7,530                 4,971                 2,978
    Other liabilities            200,820              187,218              199,316              197,971              192,372
    Total Liabilities       15,822,847         16,056,460         15,903,536         15,812,319         15,802,851
    STOCKHOLDERS' EQUITY                  
    Preferred Stock, $1,000 par value, $1,000 liquidation value:                  
    Authorized -- 600 cumulative shares                  
    Issued and outstanding - 125 cumulative shares                  125                    125                    125                    125                    125
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:                  
    Authorized -- 10,000 non-cumulative perpetual shares                  
    Issued and outstanding - 10,000 non-cumulative perpetual shares             25,000               25,000               25,000               25,000               25,000
    Common Stock, $.125 stated value:                  
    Authorized -- 100,000,000 shares                  
    Issued and outstanding               7,412                 7,407                 7,396                 7,393                 7,383
    Additional paid-in capital         1,233,593           1,231,532           1,228,626           1,226,695           1,226,378
    Retained earnings         1,097,399           1,057,298           1,012,774              961,542              917,311
    Accumulated other comprehensive loss          (217,964)            (198,914)            (239,151)            (314,089)            (198,556)
    Total Stockholders' Equity         2,145,565           2,122,448           2,034,770           1,906,666           1,977,641
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $     17,968,412   $     18,178,908   $     17,938,306   $     17,718,985   $     17,780,492
                       


    CONSOLIDATED STATEMENTS OF INCOME                  
    (Dollars In Thousands, Except Per Share Amounts) June 30,   March 31,   December 31,   September 30,   June 30,
      2023   2023   2022   2022   2022
    INTEREST INCOME                  
    Loans receivable:                  
    Taxable $      186,256      $      172,353      $      156,102      $      128,504      $      106,787   
    Tax-exempt            7,760                 7,709                 6,930                 6,500                 5,990   
    Investment securities:                  
    Taxable            8,886                 9,087                 9,417                10,055                10,372   
    Tax-exempt           14,279                16,070                17,033                17,261                17,212   
    Deposits with financial institutions            3,164                    637                    959                    704                    610   
    Federal Home Loan Bank stock            1,020                    542                    541                    314                    175   
    Total Interest Income         221,365              206,398              190,982              163,338              141,146   
    INTEREST EXPENSE                  
    Deposits           73,201                50,685                33,516                16,644                 8,485   
    Federal funds purchased               123                 1,297                    808                    418                      76   
    Securities sold under repurchase agreements               979                    848                    541                    372                    134   
    Federal Home Loan Bank advances            6,815                 7,064                 4,932                 3,493                 1,774   
    Subordinated debentures and other borrowings            2,412                 2,385                 2,229                 2,105                 2,016   
    Total Interest Expense           83,530                62,279                42,026                23,032                12,485   
    NET INTEREST INCOME         137,835              144,119              148,956              140,306              128,661   
    Provision for credit losses - loans                 —                      —                      —                      —                16,755   
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES         137,835              144,119              148,956              140,306              111,906   
    NON-INTEREST INCOME                  
    Service charges on deposit accounts            7,813                 7,359                 7,097                 7,165                 7,690   
    Fiduciary and wealth management fees            7,397                 7,862                 7,501                 7,221                 7,634   
    Card payment fees            4,537                 5,172                 4,533                 4,776                 5,175   
    Net gains and fees on sales of loans            3,632                 2,399                 2,087                 2,543                 3,226   
    Derivative hedge fees               672                 1,148                    326                    700                 1,444   
    Other customer fees               742                    517                    362                    501                    662   
    Earnings on cash surrender value of life insurance            2,096                 1,288                 1,515                 6,655                 1,308   
    Net realized gains (losses) on sales of available for sale securities           (1,392)               (1,571)                     57                    481                      90   
    Other income (loss)               822                    823                    672                  (425)                1,048   
    Total Non-Interest Income           26,319                24,997                24,150                29,617                28,277   
    NON-INTEREST EXPENSES                  
    Salaries and employee benefits           54,753                57,459                52,331                56,002                56,041   
    Net occupancy            6,674                 7,259                 6,638                 6,738                 6,648   
    Equipment            6,181                 6,126                 6,148                 5,997                 6,720   
    Marketing            1,102                 1,309                 3,157                 2,401                 1,414   
    Outside data processing fees            6,604                 6,113                 5,611                 6,827                 4,881   
    Printing and office supplies               434                    383                    390                    472                    381   
    Intangible asset amortization            2,182                 2,197                 2,303                 2,303                 2,303   
    FDIC assessments            2,740                 1,396                 2,295                 2,824                 2,924   
    Other real estate owned and foreclosure expenses               916                    (18)                   197                    328                  (266)  
    Professional and other outside services            4,660                 3,698                 3,961                 4,461                10,267   
    Other expenses            6,347                 7,798                 6,668                 8,025                 6,000   
    Total Non-Interest Expenses           92,593                93,720                89,699                96,378                97,313   
    INCOME BEFORE INCOME TAX           71,561                75,396                83,407                73,545                42,870   
    Income tax expense           10,699                11,317                12,647                 9,793                 3,879   
    NET INCOME           60,862                64,079                70,760                63,752                38,991   
    Preferred stock dividends               469                    469                    468                    469                    469   
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $        60,393      $        63,610      $        70,292      $        63,283      $        38,522   
    Per Share Data:                  
    Basic Net Income Available to Common Stockholders $           1.02      $           1.07      $           1.20      $           1.08      $           0.64   
    Diluted Net Income Available to Common Stockholders $           1.02      $           1.07      $           1.19      $           1.08      $           0.63   
    Cash Dividends Paid to Common Stockholders $           0.34      $           0.32      $           0.32      $           0.32      $           0.32   
    Average Diluted Common Shares Outstanding (in thousands)           59,448                59,441                59,384                59,339                59,308   
    FINANCIAL RATIOS:                  
    Return on Average Assets 1.34 %   1.42 %   1.59 %   1.43 %   0.88 %
    Return on Average Stockholders' Equity            11.29                 12.21                 14.36                 12.54                   7.62   
    Return on Tangible Common Stockholders' Equity            18.04                 19.82                 24.21                 20.85                 12.91   
    Average Earning Assets to Average Assets            93.38                 93.35                 93.66                 92.90                 92.45   
    Allowance for Credit Losses - Loans as % of Total Loans              1.80                   1.82                   1.86                   1.94                   1.98   
    Net Charge-offs (Recoveries) as % of Average Loans (Annualized)              0.06                   0.01                   0.12                  (0.01)                  0.01   
    Average Stockholders' Equity to Average Assets            11.78                 11.56                 10.98                 11.36                 11.37   
    Tax Equivalent Yield on Average Earning Assets              5.36                   5.06                   4.73                   4.11                   3.58   
    Interest Expense/Average Earning Assets              1.97                   1.48                   1.01                   0.56                   0.30   
    Net Interest Margin (FTE) on Average Earning Assets              3.39                   3.58                   3.72                   3.55                   3.28   
    Efficiency Ratio            52.21                 51.72                 48.60                 53.34                 58.45   
    Tangible Common Book Value Per Share $          23.34      $          22.93      $          21.45      $          19.26      $          20.45   


    LOANS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
      2023   2023   2022   2022   2022
    Commercial and industrial loans $      3,531,395   $      3,502,204   $      3,437,126   $      3,330,529   $      3,297,477
    Agricultural land, production and other loans to farmers            230,003              219,598              241,793              221,954              214,904
    Real estate loans:                  
    Construction            949,918              960,979              835,582              828,923              745,983
    Commercial real estate, non-owner occupied         2,379,819           2,375,410           2,407,475           2,299,272           2,423,185
    Commercial real estate, owner occupied         1,179,739           1,244,117           1,246,528           1,268,567           1,264,563
    Residential         2,248,473           2,185,943           2,096,655           1,990,668           1,813,297
    Home equity            614,366              621,354              630,632              621,619              586,108
    Individuals' loans for household and other personal expenditures            172,896              172,389              175,211              173,225              157,264
    Public finance and other commercial loans            963,624              959,467              932,892              915,245              894,636
    Loans       12,270,233         12,241,461         12,003,894         11,650,002         11,397,417
    Allowance for credit losses - loans          (221,147)            (223,052)            (223,277)            (226,702)            (226,275)
    NET LOANS $     12,049,086   $     12,018,409   $     11,780,617   $     11,423,300   $     11,171,142


    DEPOSITS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
      2023   2023   2022   2022   2022
    Demand deposits $      8,045,455   $      8,422,387   $      8,448,797   $      8,534,950   $      8,785,889
    Savings deposits         4,530,255           4,499,487           4,657,140           5,054,490           4,875,880
    Certificates and other time deposits of $100,000 or more         1,160,303           1,040,379              742,539              443,588              436,942
    Other certificates and time deposits            680,965              574,886              468,712              381,365              446,973
    Brokered certificates of deposits            164,177              166,148               65,557               20,432               25,185
    TOTAL DEPOSITS $     14,581,155   $     14,703,287   $     14,382,745   $     14,434,825   $     14,570,869


    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS            
    (Dollars in Thousands)                      
      For the Three Months Ended
      June 30, 2023   June 30, 2022
      Average Balance   Interest
     Income /
    Expense     		  Average
    Rate     		  Average Balance   Interest
     Income /
    Expense     		  Average
    Rate
    ASSETS                      
    Interest-bearing deposits $         343,253   $        3,164   3.69 %   $         329,626   $           610   0.74 %
    Federal Home Loan Bank stock             41,873             1,020   9.74                  38,111                175   1.84   
    Investment Securities: (1)                      
    Taxable         1,876,676             8,886   1.89              2,189,193           10,372   1.90   
    Tax-exempt (2)         2,336,990           18,075   3.09              2,703,629           21,788   3.22   
    Total Investment Securities         4,213,666           26,961   2.56              4,892,822           32,160   2.63   
    Loans held for sale             19,328                300   6.21                  28,491                315   4.42   
    Loans: (3)                      
    Commercial         8,605,339          150,766   7.01              8,134,050           85,867   4.22   
    Real estate mortgage         2,031,136           20,345   4.01              1,458,317           12,657   3.47   
    Installment            831,775           14,844   7.14                 772,610             7,948   4.11   
    Tax-exempt (2)            882,095             9,823   4.45                 781,720             7,582   3.88   
    Total Loans       12,369,673          196,078   6.34            11,175,188          114,369   4.09   
    Total Earning Assets       16,968,465          227,223   5.36 %         16,435,747          147,314   3.58 %
    Total Non-Earning Assets         1,202,184                   1,342,474        
    TOTAL ASSETS $     18,170,649           $     17,778,221        
    LIABILITIES                      
    Interest-Bearing Deposits:                      
    Interest-bearing deposits $      5,546,232   $       34,574   2.49 %   $      5,372,474   $        4,569   0.34 %
    Money market deposits         2,766,876           18,684   2.70              3,024,560             2,130   0.28   
    Savings deposits         1,724,816             3,884   0.90              1,966,054                916   0.19   
    Certificates and other time deposits         1,883,998           16,059   3.41                 948,799                870   0.37   
    Total Interest-Bearing Deposits       11,921,922           73,201   2.46            11,311,887             8,485   0.30   
    Borrowings         1,110,486           10,329   3.72                 818,851             4,000   1.95   
    Total Interest-Bearing Liabilities       13,032,408           83,530   2.56            12,130,738           12,485   0.41   
    Noninterest-bearing deposits         2,797,991                   3,497,641        
    Other liabilities            200,373                      128,719        
    Total Liabilities       16,030,772                 15,757,098        
    STOCKHOLDERS' EQUITY         2,139,877                   2,021,123        
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $     18,170,649           83,530       $     17,778,221           12,485    
    Net Interest Income (FTE)     $     143,693           $     134,829    
    Net Interest Spread (FTE) (4)        2.80 %           3.17 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.36 %           3.58 %
    Interest Expense / Average Earning Assets         1.97 %           0.30 %
    Net Interest Margin (FTE) (5)        3.39 %           3.28 %
                           
    (1)  Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments.  Annualized amounts are computed using a 30/360 day basis.
    (2)  Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2023 and 2022.  These totals equal $5,858 and $6,168 for the three months ended June 30, 2023 and 2022, respectively. 
    (3)  Non accruing loans have been included in the average balances.
    (4)  Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5)  Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


                           
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS            
    (Dollars in Thousands)                      
      For the Six Months Ended
      June 30, 2023   June 30, 2022
      Average Balance   Interest
     Income /
    Expense     		  Average
    Rate     		  Average Balance   Interest
     Income /
    Expense     		  Average
    Rate
    Assets:                      
    Interest-bearing deposits $         258,504   $        3,801   2.94 %   $         406,698   $           840   0.41 %
    Federal Home Loan Bank stock             40,821             1,562   7.65                  33,040                321   1.94   
    Investment Securities: (1)                      
    Taxable         1,900,247           17,973   1.89              2,074,074           18,882   1.82   
    Tax-exempt (2)         2,444,086           38,416   3.14              2,620,593           41,882   3.20   
    Total Investment Securities         4,344,333           56,389   2.60              4,694,667           60,764   2.59   
    Loans held for sale             21,952                660   6.01                  18,181                355   3.91   
    Loans: (3)                      
    Commercial         8,544,945          290,428   6.80              7,504,740          150,545   4.01   
    Real estate mortgage         1,972,680           38,736   3.93              1,191,075           20,497   3.44   
    Installment            836,088           28,785   6.89                 741,994           14,465   3.90   
    Tax-exempt (2)            877,511           19,581   4.46                 764,870           14,803   3.87   
    Total Loans       12,253,176          378,190   6.17            10,220,860          200,665   3.93   
    Total Earning Assets       16,896,834          439,942   5.21 %         15,355,265          262,590   3.42 %
    Total Non-Earning Assets         1,199,998                   1,272,539        
    Total Assets $     18,096,832           $     16,627,804        
    Liabilities:                      
    Interest-Bearing deposits:                      
    Interest-bearing deposits $      5,405,696   $       59,237   2.19 %   $      5,200,923   $        6,977   0.27 %
    Money market deposits         2,756,519           32,261   2.34              2,770,904             3,002   0.22   
    Savings deposits         1,775,233             6,849   0.77              1,917,005             1,357   0.14   
    Certificates and other time deposits         1,676,291           25,539   3.05                 813,482             1,443   0.35   
    Total Interest-Bearing Deposits       11,613,739          123,886   2.13            10,702,314           12,779   0.24   
    Borrowings         1,201,392           21,923   3.65                 718,270             6,966   1.94   
    Total Interest-Bearing Liabilities       12,815,131          145,809   2.28            11,420,584           19,745   0.35   
    Noninterest-bearing deposits         2,958,741                   3,116,797        
    Other liabilities            211,302                      133,891        
    Total Liabilities       15,985,174                 14,671,272        
    Stockholders' Equity         2,111,658                   1,956,532        
    Total Liabilities and Stockholders' Equity $     18,096,832          145,809       $     16,627,804           19,745    
    Net Interest Income (FTE)     $     294,133           $     242,845    
    Net Interest Spread (FTE) (4)        2.93 %           3.07 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.21 %           3.42 %
    Interest Expense / Average Earning Assets         1.73 %           0.26 %
    Net Interest Margin (FTE) (5)        3.48 %           3.16 %
                           
    (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 $12,179  and $11,904 for the six  months ended June 30, 2023 and 2022, respectively. 
    (3)  Non accruing loans have been included in the average balances.                     
    (4)   Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5)  Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


    ADJUSTED EPS EXCLUDING PAYCHECK PROTECTION PROGRAM ("PPP") AND ACQUISITION-RELATED EXPENSES - NON-GAAP
    (Dollars In Thousands, Except Per Share Amounts) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
      2023   2023   2022   2022   2022   2023   2022
    Net Income Available to Common Stockholders - GAAP $         60,393   $         63,610   $         70,292   $           63,283   $         38,522   $        124,003   $         87,108
    Adjustments:                          
    PPP loan income                  (9)                  (25)                 (109)                  (323)                (891)                   (34)              (2,775)
    Acquisition-related expenses                  —                    —                  413                 3,417             12,549                    —              12,701
    Acquisition-related provision expense                  —                    —                    —                      —             16,755                    —              16,755
    Tax on adjustment                   2                     6                   (75)                  (759)              (6,967)                      8              (6,542)
    Adjusted Net Income Available to Common Stockholders - Non-GAAP $         60,386   $         63,591   $         70,521   $           65,618   $         59,968   $        123,977   $        107,247
                               
    Average Diluted Common Shares Outstanding (in thousands)           59,448             59,441              59,384                59,339             59,308              59,446              56,516
                               
    Diluted Earnings Per Common Share - GAAP $            1.02   $            1.07   $             1.19   $              1.08   $            0.63   $             2.09   $             1.54
    Adjustments:                          
    PPP loan income                  —                    —                (0.01)                      —               (0.01)                    —                (0.05)
    Acquisition-related expenses                  —                    —   0.01                   0.05                 0.22                    —                 0.22
    Acquisition-related provision expense                  —                    —                    —                      —                 0.30                    —                 0.30
    Tax on adjustment                  —                    —                    —                  (0.01)               (0.13)                    —                (0.12)
    Adjusted Diluted Earnings Per Common Share - Non-GAAP $            1.02   $            1.07   $             1.19   $              1.12   $            1.01   $             2.09   $             1.89


    RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
      2023   2023   2022   2022   2022   2023   2022
    Total Average Stockholders' Equity (GAAP) $  2,139,877      $  2,083,125      $  1,958,041      $    2,018,156      $  2,021,123      $  2,111,658      $  1,956,532   
    Less: Average Preferred Stock       (25,125)           (25,125)           (25,125)              (25,125)           (25,125)            (25,125)            (12,625)  
    Less: Average Intangible Assets, Net of Tax     (737,489)         (739,190)         (741,632)            (744,069)         (745,614)          (738,334)          (656,042)  
    Average Tangible Common Equity, Net of Tax (Non-GAAP) $  1,377,263      $  1,318,810      $  1,191,284      $    1,248,962      $  1,250,384      $  1,348,199      $  1,287,865   
                               
    Net Income Available to Common Stockholders (GAAP) $      60,393      $      63,610      $      70,292      $         63,283      $      38,521      $     124,003      $       87,108   
    Plus: Intangible Asset Amortization, Net of Tax          1,724               1,734               1,819                  1,819               1,820                3,458                2,898   
    Tangible Net Income (Non-GAAP) $      62,117      $      65,344      $      72,111      $         65,102      $      40,341      $     127,461      $       90,006   
                               
    Return on Tangible Common Equity (Non-GAAP) 18.04 %   19.82 %   24.21 %   20.85 %   12.91 %   18.91 %   13.98 %
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