NEWS

MUNCIE, Ind., Jan. 25, 2024 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)

First Merchants Corporation (NASDAQ - FRME)

 

Fourth Quarter 2023 Highlights:

 

• Net income available to common stockholders was $42.0 million and diluted earnings per common share totaled $0.71 compared to $70.3 million and $1.19 in the fourth quarter of 2022, and $55.9 million and $0.94 in the third quarter of 2023.  Net income and diluted earnings per common share, excluding one-time charges of $12.7 million incurred during the quarter, totaled $51.6 million and $0.87, respectively.
• Strong capital position with Common Equity Tier 1 Capital Ratio of 11.35 percent.
• Total loans grew $202.6 million, or 6.6 percent annualized on a linked quarter basis, and $608.6 million, or 5.1 percent during the last twelve months when excluding the impact of a non-relationship commercial loan portfolio sale of $116.6 million that occurred during the second quarter.
• Total deposits increased $174.9 million, or 4.8 percent annualized on a linked quarter basis, and $438.7 million, or 3.1 percent during the last twelve months.
• Nonaccrual loans totaled $53.6 million compared to $53.1 million on a linked quarter basis.
• The efficiency ratio totaled 63.26 percent for the quarter and 55.56% excluding $12.7 million of one-time charges incurred during the quarter.

   

  Mark Hardwick, Chief Executive Officer, stated, "During a year where safety and soundness became the highest priority of stakeholders, we are very pleased with the positioning of our balance sheet.  The Bank’s liquidity position improved by $585 million as cash increased by $300 million and borrowings declined by $285 million year over year.  Our tangible common equity increased by $222 million driving our tangible common equity ratio from 7.37 percent to 8.44 percent and the allowance to loans continues to be top decile totaling 1.64 percent."  Hardwick added, "Our team built this resilient balance sheet while also producing core loan growth of just over 5 percent and deposit growth of 3 percent.  In a year with large bank failures, our company produced solid results with net income totaling $222 million, a strong ROA of 1.23%, and an efficiency ratio of 55%.  These results are without any adjustments for one-time charges totaling $12.7 million which were incurred in the fourth quarter.  The actions taken during the quarter to reduce costs will lead to an even more efficient franchise in 2024."

   

  Fourth Quarter Financial Results:

   

  First Merchants Corporation (the “Corporation) has reported fourth quarter 2023 net income available to common stockholders of $42.0 million compared to $70.3 million during the same period in 2022.  Diluted earnings per common share for the period totaled $0.71 per share compared to the fourth quarter of 2022 result of $1.19 per share. The corporation incurred $12.7 million of one-time charges during the quarter including $4.3 million from an FDIC special assessment, $6.3 million from employee early retirement and severance costs, and $2.1 million from a lease termination.

   

  Total assets equaled $18.3 billion as of quarter-end and loans totaled $12.5 billion.  During the past twelve months, total loans grew by $608.6 million, or 5.1 percent and were offset by a non-relationship based commercial loan sale of $116.6 million that occurred in the second quarter.  On a linked quarter basis, loans grew $202.6 million, or 6.6 percent annualized.

   

  Investments securities, totaling $3.8 billion, decreased $452.4 million, or 10.6 percent, during the last twelve months and increased $97.6 million, or 10.5 percent annualized on a linked quarter basis. The increase during the fourth quarter was due to a $163.1 million increase in value of available for sale securities offset by bond sales of $43.3 million and security paydowns and maturities.

   

  Total deposits equaled $14.8 billion as of quarter-end and increased by $438.7 million, or 3.1 percent, over the past twelve months. Total deposits increased $174.9 million, or 4.8 percent annualized on a linked quarter basis.  During the quarter, customer deposits increased $280.0 million which was offset by a reduction in brokered deposits of $105.1 million. The loan to deposit ratio increased slightly to 84.4 percent at period end from 84.0 percent in the prior quarter.

   

  The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $204.9 million as of quarter-end, or 1.64 percent of total loans, a decrease of $0.8 million from prior quarter.  Loan charge-offs, net of recoveries, for the quarter totaled $3.1 million. Net charge-offs were offset with provision expense for loans recorded during the quarter of $2.3 million.  Reserves for unfunded commitments totaling $19.5 million declined during the quarter due to reserve release of $0.8 million.  Net provision expense for the quarter totaled $1.5 million.  Non-performing assets to total assets were 0.32 percent for the fourth quarter of 2023, a decrease of one basis point compared to 0.33 percent in the prior quarter.

   

  Net interest income, totaling $130.1 million for the quarter, declined $3.3 million, or 2.5 percent, compared to prior quarter and decreased $18.9 million, or 12.7 percent, compared to the fourth quarter of 2022.  Stated net-interest margin on a tax equivalent basis totaling 3.16 percent, declined by 13 basis points compared to the third quarter of 2023 and decreased 56 basis points compared to the fourth quarter of 2022.  During the quarter, increased deposit costs and a continued change in deposit mix offset the increase in earning asset yields reducing net-interest margin.

   

  Noninterest income, totaling $26.4 million for the quarter, decreased $1.4 million, or 5.0 percent, compared to the third quarter of 2023 but increased $2.3 million from the fourth quarter of 2022. The decrease from third quarter of 2023 was driven by lower gains on the sales of loans, higher realized losses on the sales of securities, and a negative valuation adjustment related to CRA investments. These declines were somewhat offset by an increase in fiduciary and wealth management fees and gains on bank-owned life insurance.

   

  Noninterest expense totaled $108.1 million for the quarter, an increase of $14.2 million from the third quarter of 2023.  The increase was from higher credit-related expenses and one-time charges totaling $12.7 million as described above. 

   

  The Corporation’s total risk-based capital ratio equaled 13.67 percent, common equity tier 1 capital ratio equaled 11.35 percent, and the tangible common equity ratio totaled 8.44 percent, which was an increase of 75 basis points from prior quarter. These ratios continue to demonstrate the Corporation’s strong capital and liquidity position.

   

   

  CONFERENCE CALL

   

  First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, January 25, 2024.

   

  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/BIed9b1a3a96754f9abe7b067d12fe2826)

   

  In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/9hsczd2t) during the time of the call. A replay of the webcast will be available until January 25, 2025. 

   

  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)	December 31,
  	2023		2022
  ASSETS
  Cash and due from banks	$                  112,649		$                  122,594
  Interest-bearing deposits	436,080		126,061
  Investment securities, net of allowance for credit losses of $245,000 and $245,000	3,811,364		4,263,788
  Loans held for sale	18,934		9,094
  Loans	12,486,027		12,003,894
  Less: Allowance for credit losses - loans	(204,934)		(223,277)
  Net loans	12,281,093		11,780,617
  Premises and equipment	133,896		117,118
  Federal Home Loan Bank stock	41,769		38,525
  Interest receivable	97,664		85,070
  Goodwill and other intangibles	739,101		747,844
  Cash surrender value of life insurance	306,301		308,311
  Other real estate owned	4,831		6,431
  Tax asset, deferred and receivable	99,883		111,222
  Other assets	225,914		221,631
  TOTAL ASSETS	$              18,309,479		$              17,938,306
  LIABILITIES
  Deposits:
  Noninterest-bearing	$               2,500,062		$               3,173,417
  Interest-bearing	12,321,391		11,209,328
  Total Deposits	14,821,453		14,382,745
  Borrowings:
  Federal funds purchased	—		171,560
  Securities sold under repurchase agreements	157,280		167,413
  Federal Home Loan Bank advances	712,852		823,674
  Subordinated debentures and other borrowings	158,644		151,298
  Total Borrowings	1,028,776		1,313,945
  Interest payable	18,912		7,530
  Other liabilities	192,625		199,316
  Total Liabilities	16,061,766		15,903,536
  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 - 59,424,122 and 59,170,583 shares	7,428		7,396
  Additional paid-in capital	1,236,506		1,228,626
  Retained earnings	1,154,624		1,012,774
  Accumulated other comprehensive income (loss)	(175,970)		(239,151)
  Total Stockholders' Equity	2,247,713		2,034,770
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$              18,309,479		$              17,938,306

   

   

   

   

  CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended				Twelve Months Ended
  (Dollars In Thousands, Except Per Share Amounts)	December 31.				December 31.
  	2023		2022		2023		2022
  INTEREST INCOME
  Loans receivable:
  Taxable	$              197,523		$              156,102		$              747,837		$              470,468
  Tax-exempt	8,197		6,930		31,954		25,124
  Investment securities:
  Taxable	8,644		9,417		35,207		38,354
  Tax-exempt	13,821		17,033		58,117		67,381
  Deposits with financial institutions	8,034		959		17,719		2,503
  Federal Home Loan Bank stock	771		541		3,052		1,176
  Total Interest Income	236,990		190,982		893,886		605,006
  INTEREST EXPENSE
  Deposits	96,655		33,516		306,092		62,939
  Federal funds purchased	1		808		1,421		1,302
  Securities sold under repurchase agreements	827		541		3,451		1,136
  Federal Home Loan Bank advances	6,431		4,932		27,206		11,417
  Subordinated debentures and other borrowings	3,013		2,229		10,316		8,009
  Total Interest Expense	106,927		42,026		348,486		84,803
  NET INTEREST INCOME	130,063		148,956		545,400		520,203
  Provision for credit losses	1,500		—		3,500		16,755
  NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	128,563		148,956		541,900		503,448
  NONINTEREST INCOME
  Service charges on deposit accounts	7,690		7,097		30,837		28,371
  Fiduciary and wealth management fees	8,187		7,501		30,840		29,688
  Card payment fees	4,437		4,533		18,862		20,207
  Net gains and fees on sales of loans	4,111		2,087		15,659		10,055
  Derivative hedge fees	1,049		326		3,385		3,388
  Other customer fees	237		362		1,880		1,935
  Earnings on cash surrender value of life insurance	3,202		1,515		8,347		11,174
  Net realized gains (losses) on sales of available for sale securities	(2,317)		57		(6,930)		1,194
  Other income (loss)	(152)		672		2,722		1,929
  Total Noninterest Income	26,444		24,150		105,602		107,941
  NONINTEREST EXPENSES
  Salaries and employee benefits	60,967		52,331		228,745		206,893
  Net occupancy	9,089		6,638		29,859		26,211
  Equipment	6,108		6,148		24,113		23,945
  Marketing	2,647		3,157		7,427		7,708
  Outside data processing fees	5,875		5,611		25,165		21,682
  Printing and office supplies	402		390		1,552		1,588
  Intangible asset amortization	2,182		2,303		8,743		8,275
  FDIC assessments	7,557		2,295		14,674		10,235
  Other real estate owned and foreclosure expenses	1,743		197		3,318		823
  Professional and other outside services	3,981		3,961		16,172		21,642
  Other expenses	7,552		6,668		28,502		26,713
  Total Noninterest Expenses	108,103		89,699		388,270		355,715
  INCOME BEFORE INCOME TAX	46,904		83,407		259,232		255,674
  Income tax expense	4,425		12,647		35,446		33,585
  NET INCOME	42,479		70,760		223,786		222,089
  Preferred stock dividends	469		468		1,875		1,406
  NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$               42,010		$               70,292		$              221,911		$              220,683
  Per Share Data:
  Basic Net Income Available to Common Stockholders	$                   0.71		$                   1.20		$                   3.74		$                   3.83
  Diluted Net Income Available to Common Stockholders	$                   0.71		$                   1.19		$                   3.73		$                   3.81
  Cash Dividends Paid to Common Stockholders	$                   0.34		$                   0.32		$                   1.34		$                   1.25
  Average Diluted Common Shares Outstanding (in thousands)	59,556		59,384		59,489		57,950

   

  FINANCIAL HIGHLIGHTS
  (Dollars in thousands)	Three Months Ended				Twelve  Months Ended
  	December 31,				December 31,
  	2023		2022		2023		2022
  NET CHARGE-OFFS (RECOVERIES)	$              3,148		$              3,425		$             25,643		$              2,674
  AVERAGE BALANCES:
  Total Assets	$       18,397,200		$       17,834,468		$       18,186,507		$       17,220,002
  Total Loans	12,396,451		11,818,911		12,297,974		10,943,051
  Total Earning Assets	17,222,714		16,702,944		16,991,787		15,985,691
  Total Deposits	15,000,580		14,564,853		14,721,498		14,198,243
  Total Stockholders' Equity	2,130,993		1,958,041		2,127,262		1,972,445
  FINANCIAL RATIOS:
  Return on Average Assets	0.92 %		1.59 %		1.23 %		1.29 %
  Return on Average Stockholders' Equity	7.89		14.36		10.43		11.19
  Return on Tangible Common Stockholders' Equity	12.75		24.21		16.76		18.12
  Average Earning Assets to Average Assets	93.62		93.66		93.43		92.83
  Allowance for Credit Losses - Loans as % of Total Loans	1.64		1.86		1.64		1.86
  Net Charge-offs as % of Average Loans (Annualized)	0.10		0.12		0.21		0.02
  Average Stockholders' Equity to Average Assets	11.58		10.98		11.70		11.45
  Tax Equivalent Yield on Average Earning Assets	5.64		4.73		5.40		3.94
  Interest Expense/Average Earning Assets	2.48		1.01		2.05		0.53
  Net Interest Margin (FTE) on Average Earning Assets	3.16		3.72		3.35		3.41
  Efficiency Ratio	63.26		48.60		55.17		53.20
  Tangible Common Book Value Per Share	$              25.06		$              21.45		$              25.06		$              21.45

   

  NONPERFORMING ASSETS
  (Dollars In Thousands)	December 31,		September 30,		June 30,		March 31,		December 31,
  	2023		2023		2023		2023		2022
  Nonaccrual Loans	$        53,580		$        53,102		$        69,240		$        46,576		$        42,324
  Troubled Debt Restructures (TDR)	—		—		—		—		224
  Nonperforming Loans (NPL)	53,580		53,102		69,240		46,576		42,548
  Other Real Estate Owned and Repossessions	4,831		6,480		7,685		7,777		6,431
  Nonperforming Assets (NPA)	58,411		59,582		76,925		54,353		48,979
  90+ Days Delinquent	172		89		428		7,032		1,737
  NPAs & 90 Day Delinquent	$        58,583		$        59,671		$        77,353		$        61,385		$        50,716
  Allowance for Credit Losses - Loans	$      204,934		$      205,782		$      221,147		$      223,052		$      223,277
  Quarterly Net Charge-offs	3,148		20,365		1,905		225		2,674
  NPAs / Actual Assets %	0.32 %		0.33 %		0.43 %		0.30 %		0.27 %
  NPAs & 90 Day / Actual Assets %	0.32 %		0.33 %		0.43 %		0.34 %		0.28 %
  NPAs / Actual Loans and OREO %	0.47 %		0.48 %		0.63 %		0.44 %		0.41 %
  Allowance for Credit Losses - Loans / Actual Loans (%)	1.64 %		1.67 %		1.80 %		1.82 %		1.86 %
  Net Charge-offs (Recoveries) as % of Average Loans (Annualized)	0.10 %		0.66 %		0.06 %		0.01 %		0.12 %

   

  CONSOLIDATED BALANCE SHEETS
  (Dollars In Thousands)	December 31,		September 30,		June 30,		March 31,		December 31,
  	2023		2023		2023		2023		2022
  ASSETS
  Cash and due from banks	$         112,649		$         125,173		$         108,975		$         125,818		$         122,594
  Interest-bearing deposits	436,080		348,639		219,480		352,695		126,061
  Investment securities, net of allowance for credit losses	3,811,364		3,713,724		3,891,491		4,057,389		4,263,788
  Loans held for sale	18,934		30,972		27,297		9,408		9,094
  Loans	12,486,027		12,271,422		12,270,233		12,241,461		12,003,894
  Less: Allowance for credit losses - loans	(204,934)		(205,782)		(221,147)		(223,052)		(223,277)
  Net loans	12,281,093		12,065,640		12,049,086		12,018,409		11,780,617
  Premises and equipment	133,896		132,441		114,402		115,857		117,118
  Federal Home Loan Bank stock	41,769		41,797		41,842		41,878		38,525
  Interest receivable	97,664		90,011		89,784		85,515		85,070
  Goodwill and other intangibles	739,101		741,283		743,465		745,647		747,844
  Cash surrender value of life insurance	306,301		306,106		307,020		309,090		308,311
  Other real estate owned	4,831		6,480		7,685		7,777		6,431
  Tax asset, deferred and receivable	99,883		135,521		113,724		103,070		111,222
  Other assets	225,914		258,861		254,161		206,355		221,631
  TOTAL ASSETS	$     18,309,479		$     17,996,648		$     17,968,412		$     18,178,908		$     17,938,306
  LIABILITIES
  Deposits:
  Noninterest-bearing	$      2,500,062		$      2,554,984		$      2,636,017		$      2,964,355		$      3,173,417
  Interest-bearing	12,321,391		12,091,592		11,945,138		11,738,932		11,209,328
  Total Deposits	14,821,453		14,646,576		14,581,155		14,703,287		14,382,745
  Borrowings:
  Federal funds purchased	—		—		—		20		171,560
  Securities sold under repurchase agreements	157,280		152,537		152,472		179,067		167,413
  Federal Home Loan Bank advances	712,852		713,384		723,480		823,577		823,674
  Subordinated debentures and other borrowings	158,644		158,665		151,325		151,312		151,298
  Total Borrowings	1,028,776		1,024,586		1,027,277		1,153,976		1,313,945
  Interest payable	18,912		16,473		13,595		11,979		7,530
  Other liabilities	192,625		216,369		200,820		187,218		199,316
  Total Liabilities	16,061,766		15,904,004		15,822,847		16,056,460		15,903,536
  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	7,428		7,425		7,412		7,407		7,396
  Additional paid-in capital	1,236,506		1,234,402		1,233,593		1,231,532		1,228,626
  Retained earnings	1,154,624		1,132,962		1,097,399		1,057,298		1,012,774
  Accumulated other comprehensive loss	(175,970)		(307,270)		(217,964)		(198,914)		(239,151)
  Total Stockholders' Equity	2,247,713		2,092,644		2,145,565		2,122,448		2,034,770
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$     18,309,479		$     17,996,648		$     17,968,412		$     18,178,908		$     17,938,306

   

   

   

   

   

  CONSOLIDATED STATEMENTS OF INCOME
  (Dollars In Thousands, Except Per Share Amounts)	December 31,		September 30,		June 30,		March 31,		December 31,
  	2023		2023		2023		2023		2022
  INTEREST INCOME
  Loans receivable:
  Taxable	$      197,523		$      191,705		$      186,256		$      172,353		$      156,102
  Tax-exempt	8,197		8,288		7,760		7,709		6,930
  Investment securities:
  Taxable	8,644		8,590		8,886		9,087		9,417
  Tax-exempt	13,821		13,947		14,279		16,070		17,033
  Deposits with financial institutions	8,034		5,884		3,164		637		959
  Federal Home Loan Bank stock	771		719		1,020		542		541
  Total Interest Income	236,990		229,133		221,365		206,398		190,982
  INTEREST EXPENSE
  Deposits	96,655		85,551		73,201		50,685		33,516
  Federal funds purchased	1		—		123		1,297		808
  Securities sold under repurchase agreements	827		797		979		848		541
  Federal Home Loan Bank advances	6,431		6,896		6,815		7,064		4,932
  Subordinated debentures and other borrowings	3,013		2,506		2,412		2,385		2,229
  Total Interest Expense	106,927		95,750		83,530		62,279		42,026
  NET INTEREST INCOME	130,063		133,383		137,835		144,119		148,956
  Provision for credit losses	1,500		2,000		—		—		—
  NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	128,563		131,383		137,835		144,119		148,956
  NONINTEREST INCOME
  Service charges on deposit accounts	7,690		7,975		7,813		7,359		7,097
  Fiduciary and wealth management fees	8,187		7,394		7,397		7,862		7,501
  Card payment fees	4,437		4,716		4,537		5,172		4,533
  Net gains and fees on sales of loans	4,111		5,517		3,632		2,399		2,087
  Derivative hedge fees	1,049		516		672		1,148		326
  Other customer fees	237		384		742		517		362
  Earnings on cash surrender value of life insurance	3,202		1,761		2,096		1,288		1,515
  Net realized gains (losses) on sales of available for sale securities	(2,317)		(1,650)		(1,392)		(1,571)		57
  Other income (loss)	(152)		1,229		822		823		672
  Total Noninterest Income	26,444		27,842		26,319		24,997		24,150
  NONINTEREST EXPENSES
  Salaries and employee benefits	60,967		55,566		54,753		57,459		52,331
  Net occupancy	9,089		6,837		6,674		7,259		6,638
  Equipment	6,108		5,698		6,181		6,126		6,148
  Marketing	2,647		2,369		1,102		1,309		3,157
  Outside data processing fees	5,875		6,573		6,604		6,113		5,611
  Printing and office supplies	402		333		434		383		390
  Intangible asset amortization	2,182		2,182		2,182		2,197		2,303
  FDIC assessments	7,557		2,981		2,740		1,396		2,295
  Other real estate owned and foreclosure expenses	1,743		677		916		(18)		197
  Professional and other outside services	3,981		3,833		4,660		3,698		3,961
  Other expenses	7,552		6,805		6,347		7,798		6,668
  Total Noninterest Expenses	108,103		93,854		92,593		93,720		89,699
  INCOME BEFORE INCOME TAX	46,904		65,371		71,561		75,396		83,407
  Income tax expense	4,425		9,005		10,699		11,317		12,647
  NET INCOME	42,479		56,366		60,862		64,079		70,760
  Preferred stock dividends	469		468		469		469		468
  NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$        42,010		$        55,898		$        60,393		$        63,610		$        70,292
  Per Share Data:
  Basic Net Income Available to Common Stockholders	$           0.71		$           0.95		$           1.02		$           1.07		$           1.20
  Diluted Net Income Available to Common Stockholders	$           0.71		$           0.94		$           1.02		$           1.07		$           1.19
  Cash Dividends Paid to Common Stockholders	$           0.34		$           0.34		$           0.34		$           0.32		$           0.32
  Average Diluted Common Shares Outstanding (in thousands)	59,556		59,503		59,448		59,441		59,384
  FINANCIAL RATIOS:
  Return on Average Assets	0.92 %		1.24 %		1.34 %		1.42 %		1.59 %
  Return on Average Stockholders' Equity	7.89		10.38		11.29		12.21		14.36
  Return on Tangible Common Stockholders' Equity	12.75		16.54		18.04		19.82		24.21
  Average Earning Assets to Average Assets	93.62		93.36		93.38		93.35		93.66
  Allowance for Credit Losses - Loans as % of Total Loans	1.64		1.67		1.80		1.82		1.86
  Net Charge-offs as % of Average Loans (Annualized)	0.10		0.66		0.06		0.01		0.12
  Average Stockholders' Equity to Average Assets	11.58		11.87		11.78		11.56		10.98
  Tax Equivalent Yield on Average Earning Assets	5.64		5.55		5.36		5.06		4.73
  Interest Expense/Average Earning Assets	2.48		2.26		1.97		1.48		1.01
  Net Interest Margin (FTE) on Average Earning Assets	3.16		3.29		3.39		3.58		3.72
  Efficiency Ratio	63.26		53.91		52.21		51.72		48.60
  Tangible Common Book Value Per Share	$          25.06		$          22.43		$          23.34		$          22.93		$          21.45

   

  LOANS
  (Dollars In Thousands)	December 31,		September 30,		June 30,		March 31,		December 31,
  	2023		2023		2023		2023		2022
  Commercial and industrial loans	$      3,670,948		$      3,490,953		$      3,531,395		$      3,502,204		$      3,437,126
  Agricultural land, production and other loans to farmers	263,414		233,838		230,003		219,598		241,793
  Real estate loans:
  Construction	957,545		1,022,261		949,918		960,979		835,582
  Commercial real estate, non-owner occupied	2,400,839		2,360,596		2,379,819		2,375,410		2,407,475
  Commercial real estate, owner occupied	1,162,083		1,153,707		1,179,739		1,244,117		1,246,528
  Residential	2,288,921		2,257,385		2,248,473		2,185,943		2,096,655
  Home equity	617,571		609,352		614,366		621,354		630,632
  Individuals' loans for household and other personal expenditures	168,388		176,523		172,896		172,389		175,211
  Public finance and other commercial loans	956,318		966,807		963,624		959,467		932,892
  Loans	12,486,027		12,271,422		12,270,233		12,241,461		12,003,894
  Allowance for credit losses - loans	(204,934)		(205,782)		(221,147)		(223,052)		(223,277)
  NET LOANS	$     12,281,093		$     12,065,640		$     12,049,086		$     12,018,409		$     11,780,617

   

  DEPOSITS
  (Dollars In Thousands)	December 31,		September 30,		June 30,		March 31,		December 31,
  	2023		2023		2023		2023		2022
  Demand deposits	$      7,965,862		$      7,952,040		$      8,045,455		$      8,422,387		$      8,448,797
  Savings deposits	4,516,433		4,572,162		4,530,255		4,499,487		4,657,140
  Certificates and other time deposits of $100,000 or more	1,408,985		1,280,607		1,160,303		1,040,379		742,539
  Other certificates and time deposits	849,906		761,196		680,965		574,886		468,712
  Brokered certificates of deposits	80,267		80,571		164,177		166,148		65,557
  TOTAL DEPOSITS	$     14,821,453		$     14,646,576		$     14,581,155		$     14,703,287		$     14,382,745

   

   

  CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
  (Dollars in Thousands)
  	For the Three Months Ended
  	December 31, 2023						December 31, 2022
  	Average Balance		Interest  Income / Expense		Average Rate		Average Balance		Interest  Income / Expense		Average Rate
  ASSETS
  Interest-bearing deposits	$         700,705		$        8,034		4.59 %		$         187,204		$           959		2.05 %
  Federal Home Loan Bank stock	41,792		771		7.38		38,066		541		5.68
  Investment Securities: (1)
  Taxable	1,801,533		8,644		1.92		1,987,161		9,417		1.90
  Tax-exempt (2)	2,282,233		17,495		3.07		2,671,602		21,561		3.23
  Total Investment Securities	4,083,766		26,139		2.56		4,658,763		30,978		2.66
  Loans held for sale	16,355		246		6.02		4,732		71		6.00
  Loans: (3)
  Commercial	8,533,233		159,190		7.46		8,309,561		126,850		6.11
  Real estate mortgage	2,118,060		21,829		4.12		1,827,749		16,654		3.64
  Installment	820,728		16,258		7.92		843,562		12,527		5.94
  Tax-exempt (2)	908,075		10,376		4.57		833,307		8,772		4.21
  Total Loans	12,396,451		207,899		6.71		11,818,911		164,874		5.58
  Total Earning Assets	17,222,714		242,843		5.64 %		16,702,944		197,352		4.73 %
  Total Non-Earning Assets	1,174,486						1,131,524
  TOTAL ASSETS	$     18,397,200						$     17,834,468
  LIABILITIES
  Interest-Bearing Deposits:
  Interest-bearing deposits	$      5,504,725		$       40,996		2.98 %		$      5,238,422		$       16,810		1.28 %
  Money market deposits	3,096,085		27,909		3.61		3,018,644		10,778		1.43
  Savings deposits	1,587,758		3,913		0.99		1,895,551		2,125		0.45
  Certificates and other time deposits	2,225,528		23,837		4.28		1,038,502		3,803		1.46
  Total Interest-Bearing Deposits	12,414,096		96,655		3.11		11,191,119		33,516		1.20
  Borrowings	1,013,856		10,272		4.05		1,097,586		8,510		3.10
  Total Interest-Bearing Liabilities	13,427,952		106,927		3.19		12,288,705		42,026		1.37
  Noninterest-bearing deposits	2,586,484						3,373,734
  Other liabilities	251,771						213,988
  Total Liabilities	16,266,207						15,876,427
  STOCKHOLDERS' EQUITY	2,130,993						1,958,041
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$     18,397,200		106,927				$     17,834,468		42,026
  Net Interest Income (FTE)			$     135,916						$     155,326
  Net Interest Spread (FTE) (4)					2.45 %						3.36 %
  Net Interest Margin (FTE):
  Interest Income (FTE) / Average Earning Assets					5.64 %						4.73 %
  Interest Expense / Average Earning Assets					2.48 %						1.01 %
  Net Interest Margin (FTE) (5)					3.16 %						3.72 %
  (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 $5,853 and $6.370 for the three months ended December 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.

   

   

   

   

  CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
  (Dollars in Thousands)
  	For the Twelve Months Ended
  	December 31, 2023						December 31, 2022
  	Average Balance		Interest  Income / Expense		Average Rate		Average Balance		Interest  Income / Expense		Average Rate
  Assets:
  Interest-bearing deposits	$         431,581		$       17,719		4.11 %		$         296,863		$        2,503		0.84 %
  Federal Home Loan Bank stock	41,319		3,052		7.39		35,580		1,176		3.31
  Investment Securities: (1)
  Taxable	1,854,438		35,207		1.90		2,056,586		38,354		1.86
  Tax-exempt (2)	2,366,475		73,566		3.11		2,653,611		85,292		3.21
  Total Investment Securities	4,220,913		108,773		2.58		4,710,197		123,646		2.63
  Loans held for sale	21,766		1,292		5.94		14,715		692		4.70
  Loans: (3)
  Commercial	8,519,706		603,611		7.08		7,877,271		380,621		4.83
  Real estate mortgage	2,035,488		82,183		4.04		1,471,802		51,853		3.52
  Installment	830,006		60,751		7.32		785,520		37,302		4.75
  Tax-exempt (2)	891,008		40,448		4.54		793,743		31,803		4.01
  Total Loans	12,297,974		788,285		6.41		10,943,051		502,271		4.59
  Total Earning Assets	16,991,787		917,829		5.40 %		15,985,691		629,596		3.94 %
  Total Non-Earning Assets	1,194,720						1,234,311
  Total Assets	$     18,186,507						$     17,220,002
  Liabilities:
  Interest-Bearing deposits:
  Interest-bearing deposits	$      5,435,733		$     138,012		2.54 %		$      5,206,131		$       32,511		0.62 %
  Money market deposits	2,884,271		83,777		2.90		2,915,397		19,170		0.66
  Savings deposits	1,694,230		14,606		0.86		1,927,122		5,019		0.26
  Certificates and other time deposits	1,923,268		69,697		3.62		881,176		6,239		0.71
  Total Interest-Bearing Deposits	11,937,502		306,092		2.56		10,929,826		62,939		0.58
  Borrowings	1,111,472		42,394		3.81		888,392		21,864		2.46
  Total Interest-Bearing Liabilities	13,048,974		348,486		2.67		11,818,218		84,803		0.72
  Noninterest-bearing deposits	2,783,996						3,268,417
  Other liabilities	226,275						160,922
  Total Liabilities	16,059,245						15,247,557
  Stockholders' Equity	2,127,262						1,972,445
  Total Liabilities and Stockholders' Equity	$     18,186,507		348,486				$     17,220,002		84,803
  Net Interest Income (FTE)			$     569,343						$     544,793
  Net Interest Spread (FTE) (4)					2.73 %						3.22 %
  Net Interest Margin (FTE):
  Interest Income (FTE) / Average Earning Assets					5.40 %						3.94 %
  Interest Expense / Average Earning Assets					2.05 %						0.53 %
  Net Interest Margin (FTE) (5)					3.35 %						3.41 %
  (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  $23,943 and $24,590 for the years  ended December 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 NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - NON-GAAP
  (Dollars In Thousands, Except Per Share Amounts)	Three Months Ended										Twelve Months Ended
  	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
  	2023		2023		2023		2023		2022		2023		2022
  Net Income Available to Common Stockholders - GAAP	$         42,010		$          55,898		$         60,393		$         63,610		$         70,292		$        221,911		$        220,683
  Adjustments:
  PPP loan income	(7)		(8)		(9)		(25)		(109)		(49)		(3,207)
  Acquisition-related expenses	—		—		—		—		413		—		16,531
  Acquisition-related provision expense	—		—		—		—		—		—		16,755
  Non-core expenses1	12,682		—		—		—		—		12,682		—
  Tax on adjustments	(3,088)		2		2		6		(75)		(3,078)		(7,376)
  Adjusted Net Income Available to Common Stockholders - Non-GAAP	$         51,597		$          55,892		$         60,386		$         63,591		$         70,521		$        231,466		$        243,386
  Average Diluted Common Shares Outstanding (in thousands)	59,556		59,503		59,448		59,441		59,384		59,489		57,590
  Diluted Earnings Per Common Share - GAAP	$             0.71		$             0.94		$            1.02		$            1.07		$             1.19		$             3.73		$             3.81
  Adjustments:
  PPP loan income	—		—		—		—		(0.01)		—		(0.06)
  Acquisition-related expenses	—		—		—		—		0.01		—		0.28
  Acquisition-related provision expense	—		—		—		—		—		—		0.30
  Non-core expenses1	0.21		—		—		—		—		0.21		—
  Tax on adjustments	(0.05)		—		—		—		—		(0.05)		(0.13)
  Adjusted Diluted Earnings Per Common Share - Non-GAAP	$             0.87		$             0.94		$            1.02		$            1.07		$             1.19		$             3.89		$             4.20

  ¹ - Non-core expenses include one-time charges consisting of $6.3 million from early retirement and severance costs, $4.3 million from the FDIC special assessment, and $2.1 million from a lease termination.

   

   

  RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
  (Dollars In Thousands)	Three Months Ended										Twelve Months Ended
  	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
  	2023		2023		2023		2023		2022		2023		2022
  Total Average Stockholders' Equity (GAAP)	$  2,130,993		$   2,154,232		$ 2,139,877		$  2,083,125		$  1,958,041		$  2,127,262		$  1,972,445
  Less: Average Preferred Stock	(25,125)		(25,125)		(25,125)		(25,125)		(25,125)		(25,125)		(18,875)
  Less: Average Intangible Assets, Net of Tax	(734,007)		(735,787)		(737,489)		(739,190)		(741,632)		(736,601)		(699,803)
  Average Tangible Common Equity, Net of Tax (Non-GAAP)	$  1,371,861		$   1,393,320		$ 1,377,263		$  1,318,810		$  1,191,284		$  1,365,536		$  1,253,767
  Net Income Available to Common Stockholders (GAAP)	$       42,010		$       55,898		$     60,393		$      63,610		$       70,292		$     221,911		$     220,683
  Plus: Intangible Asset Amortization, Net of Tax	1,724		1,724		1,724		1,734		1,819		6,906		6,537
  Tangible Net Income (Non-GAAP)	$       43,734		$       57,622		$     62,117		$      65,344		$       72,111		$     228,817		$     227,220
  Return on Tangible Common Equity (Non-GAAP)	12.75 %		16.54 %		18.04 %		19.82 %		24.21 %		16.76 %		18.12 %