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

First Quarter 2024 Highlights:

• Net income available to common stockholders was $47.5 million and diluted earnings per common share totaled $0.80 compared to $63.6 million and $1.07 in the first quarter of 2023, and $42.0 million and $0.71 in the fourth quarter of 2023.   Net income and diluted earnings per common share, excluding non-core charges of $3.5 million incurred during the quarter, totaled $50.1 million and $0.85, respectively.
• Strong capital position with Common Equity Tier 1 Capital Ratio of 11.25 percent.
• Total loans declined $24.3 million, or 0.8 percent annualized on a linked quarter basis, but increased $346.4 million, or 2.8 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 of 2023.
• Total deposits increased $63.1 million, or 1.7 percent annualized on a linked quarter basis, and $181.3 million, or 1.2 percent during the last twelve months.
• Net charge-offs totaled 7 basis points of average loans (annualized) compared to 10 basis points on a linked quarter basis.
• Nonperforming assets to total assets were 37 basis points compared to 32 basis points on a linked quarter basis.
• The efficiency ratio totaled 59.21 percent for the quarter and 57.03 percent excluding $3.5 million of non-core charges incurred during the quarter.
  

Mark Hardwick, Chief Executive Officer, stated, "Given the length and severity of the inverted yield curve, we were pleased to see relative stabilization of our net interest margin during the quarter. Capital, liquidity, the allowance for credit losses and earnings are strong and supported share repurchase activity during the quarter of $30 million, as well as, the redemption of $40 million in sub-debt." Hardwick added, "Three of our four major technology initiatives have also been deployed to include in-branch account opening, consumer online and mobile upgrades, and a new Private Wealth platform."

First Quarter Financial Results:

First Merchants Corporation (the “Corporation) has reported first quarter 2024 net income available to common stockholders of $47.5 million compared to $63.6 million during the same period in 2023.   Diluted earnings per common share for the period totaled $0.80 compared to the first quarter of 2023 result of $1.07 per share. The corporation incurred $3.5 million of non-core charges during the quarter including $1.1 million from an additional FDIC special assessment and $2.4 million of digital platform conversion costs.  

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 $346.4 million, or 2.8 percent and were offset by a non-relationship based commercial loan sale of $116.6 million that occurred in the second quarter of 2023.   On a linked quarter basis, loans declined $24.3 million, or 0.8 percent annualized.

Investments securities, totaling $3.8 billion, decreased $273.8 million, or 6.7 percent, during the last twelve months and decreased $27.8 million, or 2.9 percent annualized on a linked quarter basis.

Total deposits equaled $14.9 billion as of quarter-end and increased by $181.3 million, or 1.2 percent, over the past twelve months. Total deposits increased $63.1 million, or 1.7 percent annualized on a linked quarter basis.   During the quarter, customer deposits increased $87.3 million which was offset by a reduction in brokered deposits of $24.2 million. The loan to deposit ratio declined slightly to 83.9 percent at period end from 84.4 percent in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $204.7 million as of quarter-end, a decrease of $0.3 million from prior quarter.   Loan charge-offs, net of recoveries, for the quarter totaled $2.3 million. Provision expense for loans was recorded during the quarter of $2.0 million resulting in an ACL as a percent of loans of 1.64 percent.   Reserves for unfunded commitments totaling $19.5 million remain unchanged from prior quarter.   Non-performing assets to total assets were 0.37 percent for the first quarter of 2024, an increase of five basis points compared to 0.32 percent in the prior quarter.

Net interest income, totaling $127.1 million for the quarter, declined $3.0 million, or 2.3 percent, compared to prior quarter and decreased $17.1 million, or 11.8 percent, compared to the first quarter of 2023.   Stated net-interest margin on a tax equivalent basis totaling 3.10 percent, declined by six basis points compared to the fourth quarter of 2023 and decreased 48 basis points compared to the first quarter of 2023.   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 $26.6 million for the quarter, increased $0.2 million, compared to the fourth quarter of 2023 and increased $1.6 million from the first quarter of 2023. Customer-related fees declined $1.2 million from prior quarter due to lower gains on sales of loans and derivative hedge fees.   Non-customer related fees increased $1.4 million from prior quarter primarily due to realized losses on the sales of securities recorded in the prior quarter.

Noninterest expense totaled $96.9 million for the quarter, a decrease of $11.2 million from the fourth quarter of 2023 due to a decline in non-core charges and lower marketing spend.   Non-core charges incurred during the quarter totaled $3.5 million and included $1.1 million from an additional FDIC special assessment and $2.4 million of digital platform conversion costs.   Non-core charges recorded in the prior quarter totaled $12.7 million and included $4.3 million from an FDIC special assessment, $6.3 million of early retirement and severance costs, and $2.1 million from a lease termination.   

The Corporation’s total risk-based capital ratio equaled 13.34 percent, common equity tier 1 capital ratio equaled 11.25 percent, and the tangible common equity ratio totaled 8.32 percent. These ratios continue to demonstrate the Corporation’s strong capital 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, April 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/BIdd109dbd75ba4d42a3ddae5a62b4e2a1)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/8p72e5ye) during the time of the call. A replay of the webcast will be available until April 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.

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

SOURCE: First Merchants Corporation, Muncie, Indiana

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	March 31,
		2024				2023
ASSETS
Cash and due from banks	$	100,514			$	125,818
Interest-bearing deposits		410,497				352,695
Investment securities, net of allowance for credit losses of $245,000 and $245,000		3,783,574				4,057,389
Loans held for sale		15,118				9,408
Loans		12,465,582				12,241,461
Less: Allowance for credit losses - loans		(204,681	)			(223,052	)
Net loans		12,260,901				12,018,409
Premises and equipment		132,706				115,857
Federal Home Loan Bank stock		41,758				41,878
Interest receivable		92,550				85,515
Goodwill and other intangibles		737,144				745,647
Cash surrender value of life insurance		306,028				309,090
Other real estate owned		4,886				7,777
Tax asset, deferred and receivable		101,121				103,070
Other assets		331,006				270,777
TOTAL ASSETS	$	18,317,803			$	18,243,330
LIABILITIES
Deposits:
Noninterest-bearing	$	2,338,364			$	2,964,355
Interest-bearing		12,546,220				11,738,932
Total Deposits		14,884,584				14,703,287
Borrowings:
Federal funds purchased		—				20
Securities sold under repurchase agreements		130,264				179,067
Federal Home Loan Bank advances		612,778				823,577
Subordinated debentures and other borrowings		118,612				151,312
Total Borrowings		861,654				1,153,976
Interest payable		19,262				11,979
Other liabilities		327,500				251,640
Total Liabilities		16,093,000				16,120,882
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 - 58,564,819 and 59,257,051 shares		7,321				7,407
Additional paid-in capital		1,208,447				1,231,532
Retained earnings		1,181,939				1,057,298
Accumulated other comprehensive loss		(198,029	)			(198,914	)
Total Stockholders' Equity		2,224,803				2,122,448
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,317,803			$	18,243,330

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
(Dollars In Thousands, Except Per Share Amounts)	March 31,
		2024				2023
INTEREST INCOME
Loans receivable:
Taxable	$	198,023			$	172,353
Tax-exempt		8,190				7,709
Investment securities:
Taxable		8,748				9,087
Tax-exempt		13,611				16,070
Deposits with financial institutions		6,493				637
Federal Home Loan Bank stock		835				542
Total Interest Income		235,900				206,398
INTEREST EXPENSE
Deposits		98,285				50,685
Federal funds purchased		—				1,297
Securities sold under repurchase agreements		1,032				848
Federal Home Loan Bank advances		6,773				7,064
Subordinated debentures and other borrowings		2,747				2,385
Total Interest Expense		108,837				62,279
NET INTEREST INCOME		127,063				144,119
Provision for credit losses		2,000				—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		125,063				144,119
NONINTEREST INCOME
Service charges on deposit accounts		7,907				7,359
Fiduciary and wealth management fees		8,200				7,862
Card payment fees		4,500				5,172
Net gains and fees on sales of loans		3,254				2,399
Derivative hedge fees		263				1,148
Other customer fees		427				517
Earnings on cash surrender value of life insurance		1,592				1,288
Net realized losses on sales of available for sale securities		(2	)			(1,571	)
Other income		497				823
Total Noninterest Income		26,638				24,997
NONINTEREST EXPENSES
Salaries and employee benefits		58,293				57,459
Net occupancy		7,312				7,259
Equipment		6,226				6,126
Marketing		1,198				1,309
Outside data processing fees		6,889				6,113
Printing and office supplies		353				383
Intangible asset amortization		1,957				2,197
FDIC assessments		4,287				1,396
Other real estate owned and foreclosure expenses		534				(18	)
Professional and other outside services		3,952				3,698
Other expenses		5,934				7,798
Total Noninterest Expenses		96,935				93,720
INCOME BEFORE INCOME TAX		54,766				75,396
Income tax expense		6,825				11,317
NET INCOME		47,941				64,079
Preferred stock dividends		469				469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	47,472			$	63,610
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.80			$	1.07
Diluted Net Income Available to Common Stockholders	$	0.80			$	1.07
Cash Dividends Paid to Common Stockholders	$	0.34			$	0.32
Average Diluted Common Shares Outstanding (in thousands)		59,273				59,441

FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended
	March 31,
		2024				2023
NET CHARGE-OFFS	$	2,253			$	225
AVERAGE BALANCES:
Total Assets	$	18,430,521			$	18,022,195
Total Loans		12,477,066				12,135,384
Total Earning Assets		17,123,851				16,824,407
Total Deposits		14,881,205				14,423,409
Total Stockholders' Equity		2,242,139				2,083,125
FINANCIAL RATIOS:
Return on Average Assets		1.04	%			1.42	%
Return on Average Stockholders' Equity		8.47				12.21
Return on Tangible Common Stockholders' Equity		13.21				19.82
Average Earning Assets to Average Assets		92.91				93.35
Allowance for Credit Losses - Loans as % of Total Loans		1.64				1.82
Net Charge-offs as % of Average Loans (Annualized)		0.07				0.01
Average Stockholders' Equity to Average Assets		12.17				11.56
Tax Equivalent Yield on Average Earning Assets		5.65				5.06
Interest Expense/Average Earning Assets		2.55				1.48
Net Interest Margin (FTE) on Average Earning Assets		3.10				3.58
Efficiency Ratio		59.21				51.72
Tangible Common Book Value Per Share	$	25.07			$	22.93

NONPERFORMING ASSETS
(Dollars In Thousands)	March 31,				December 31,				September 30,				June 30,				March 31,
		2024				2023				2023				2023				2023
Nonaccrual Loans	$	62,478			$	53,580			$	53,102			$	69,240			$	46,576
Other Real Estate Owned and Repossessions		4,886				4,831				6,480				7,685				7,777
Nonperforming Assets (NPA)		67,364				58,411				59,582				76,925				54,353
90+ Days Delinquent		2,838				172				89				428				7,032
NPAs & 90 Day Delinquent	$	70,202			$	58,583			$	59,671			$	77,353			$	61,385
Allowance for Credit Losses - Loans	$	204,681			$	204,934			$	205,782			$	221,147			$	223,052
Quarterly Net Charge-offs		2,253				3,148				20,365				1,905				225
NPAs / Actual Assets %		0.37	%			0.32	%			0.33	%			0.43	%			0.30	%
NPAs & 90 Day / Actual Assets %		0.38	%			0.32	%			0.33	%			0.43	%			0.34	%
NPAs / Actual Loans and OREO %		0.54	%			0.47	%			0.48	%			0.63	%			0.44	%
Allowance for Credit Losses - Loans / Actual Loans (%)		1.64	%			1.64	%			1.67	%			1.80	%			1.82	%
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)		0.07	%			0.10	%			0.66	%			0.06	%			0.01	%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	March 31,				December 31,				September 30,				June 30,				March 31,
		2024				2023				2023				2023				2023
ASSETS
Cash and due from banks	$	100,514			$	112,649			$	125,173			$	108,975			$	125,818
Interest-bearing deposits		410,497				436,080				348,639				219,480				352,695
Investment securities, net of allowance for credit losses		3,783,574				3,811,364				3,713,724				3,891,491				4,057,389
Loans held for sale		15,118				18,934				30,972				27,297				9,408
Loans		12,465,582				12,486,027				12,271,422				12,270,233				12,241,461
Less: Allowance for credit losses - loans		(204,681	)			(204,934	)			(205,782	)			(221,147	)			(223,052	)
Net loans		12,260,901				12,281,093				12,065,640				12,049,086				12,018,409
Premises and equipment		132,706				133,896				132,441				114,402				115,857
Federal Home Loan Bank stock		41,758				41,769				41,797				41,842				41,878
Interest receivable		92,550				97,664				90,011				89,784				85,515
Goodwill and other intangibles		737,144				739,101				741,283				743,465				745,647
Cash surrender value of life insurance		306,028				306,301				306,106				307,020				309,090
Other real estate owned		4,886				4,831				6,480				7,685				7,777
Tax asset, deferred and receivable		101,121				99,883				135,521				113,724				103,070
Other assets		331,006				322,322				340,476				318,005				270,777
TOTAL ASSETS	$	18,317,803			$	18,405,887			$	18,078,263			$	18,032,256			$	18,243,330
LIABILITIES
Deposits:
Noninterest-bearing	$	2,338,364			$	2,500,062			$	2,554,984			$	2,636,017			$	2,964,355
Interest-bearing		12,546,220				12,321,391				12,091,592				11,945,138				11,738,932
Total Deposits		14,884,584				14,821,453				14,646,576				14,581,155				14,703,287
Borrowings:
Federal funds purchased		—				—				—				—				20
Securities sold under repurchase agreements		130,264				157,280				152,537				152,472				179,067
Federal Home Loan Bank advances		612,778				712,852				713,384				723,480				823,577
Subordinated debentures and other borrowings		118,612				158,644				158,665				151,325				151,312
Total Borrowings		861,654				1,028,776				1,024,586				1,027,277				1,153,976
Interest payable		19,262				18,912				16,473				13,595				11,979
Other liabilities		327,500				289,033				297,984				264,664				251,640
Total Liabilities		16,093,000				16,158,174				15,985,619				15,886,691				16,120,882
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		7,321				7,428				7,425				7,412				7,407
Additional paid-in capital		1,208,447				1,236,506				1,234,402				1,233,593				1,231,532
Retained earnings		1,181,939				1,154,624				1,132,962				1,097,399				1,057,298
Accumulated other comprehensive loss		(198,029	)			(175,970	)			(307,270	)			(217,964	)			(198,914	)
Total Stockholders' Equity		2,224,803				2,247,713				2,092,644				2,145,565				2,122,448
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,317,803			$	18,405,887			$	18,078,263			$	18,032,256			$	18,243,330

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	March 31,				December 31,				September 30,				June 30,				March 31,
		2024				2023				2023				2023				2023
INTEREST INCOME
Loans receivable:
Taxable	$	198,023			$	197,523			$	191,705			$	186,256			$	172,353
Tax-exempt		8,190				8,197				8,288				7,760				7,709
Investment securities:
Taxable		8,748				8,644				8,590				8,886				9,087
Tax-exempt		13,611				13,821				13,947				14,279				16,070
Deposits with financial institutions		6,493				8,034				5,884				3,164				637
Federal Home Loan Bank stock		835				771				719				1,020				542
Total Interest Income		235,900				236,990				229,133				221,365				206,398
INTEREST EXPENSE
Deposits		98,285				96,655				85,551				73,201				50,685
Federal funds purchased		—				1				—				123				1,297
Securities sold under repurchase agreements		1,032				827				797				979				848
Federal Home Loan Bank advances		6,773				6,431				6,896				6,815				7,064
Subordinated debentures and other borrowings		2,747				3,013				2,506				2,412				2,385
Total Interest Expense		108,837				106,927				95,750				83,530				62,279
NET INTEREST INCOME		127,063				130,063				133,383				137,835				144,119
Provision for credit losses		2,000				1,500				2,000				—				—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		125,063				128,563				131,383				137,835				144,119
NONINTEREST INCOME
Service charges on deposit accounts		7,907				7,690				7,975				7,813				7,359
Fiduciary and wealth management fees		8,200				8,187				7,394				7,397				7,862
Card payment fees		4,500				4,437				4,716				4,537				5,172
Net gains and fees on sales of loans		3,254				4,111				5,517				3,632				2,399
Derivative hedge fees		263				1,049				516				672				1,148
Other customer fees		427				237				384				742				517
Earnings on cash surrender value of life insurance		1,592				3,202				1,761				2,096				1,288
Net realized losses on sales of available for sale securities		(2	)			(2,317	)			(1,650	)			(1,392	)			(1,571	)
Other income (loss)		497				(152	)			1,229				822				823
Total Noninterest Income		26,638				26,444				27,842				26,319				24,997
NONINTEREST EXPENSES
Salaries and employee benefits		58,293				60,967				55,566				54,753				57,459
Net occupancy		7,312				9,089				6,837				6,674				7,259
Equipment		6,226				6,108				5,698				6,181				6,126
Marketing		1,198				2,647				2,369				1,102				1,309
Outside data processing fees		6,889				5,875				6,573				6,604				6,113
Printing and office supplies		353				402				333				434				383
Intangible asset amortization		1,957				2,182				2,182				2,182				2,197
FDIC assessments		4,287				7,557				2,981				2,740				1,396
Other real estate owned and foreclosure expenses		534				1,743				677				916				(18	)
Professional and other outside services		3,952				3,981				3,833				4,660				3,698
Other expenses		5,934				7,552				6,805				6,347				7,798
Total Noninterest Expenses		96,935				108,103				93,854				92,593				93,720
INCOME BEFORE INCOME TAX		54,766				46,904				65,371				71,561				75,396
Income tax expense		6,825				4,425				9,005				10,699				11,317
NET INCOME		47,941				42,479				56,366				60,862				64,079
Preferred stock dividends		469				469				468				469				469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	47,472			$	42,010			$	55,898			$	60,393			$	63,610
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.80			$	0.71			$	0.95			$	1.02			$	1.07
Diluted Net Income Available to Common Stockholders	$	0.80			$	0.71			$	0.94			$	1.02			$	1.07
Cash Dividends Paid to Common Stockholders	$	0.34			$	0.34			$	0.34			$	0.34			$	0.32
Average Diluted Common Shares Outstanding (in thousands)		59,273				59,556				59,503				59,448				59,441
FINANCIAL RATIOS:
Return on Average Assets		1.04	%			0.92	%			1.24	%			1.34	%			1.42	%
Return on Average Stockholders' Equity		8.47				7.89				10.38				11.29				12.21
Return on Tangible Common Stockholders' Equity		13.21				12.75				16.54				18.04				19.82
Average Earning Assets to Average Assets		92.91				93.62				93.36				93.38				93.35
Allowance for Credit Losses - Loans as % of Total Loans		1.64				1.64				1.67				1.80				1.82
Net Charge-offs as % of Average Loans (Annualized)		0.07				0.10				0.66				0.06				0.01
Average Stockholders' Equity to Average Assets		12.17				11.58				11.87				11.78				11.56
Tax Equivalent Yield on Average Earning Assets		5.65				5.64				5.55				5.36				5.06
Interest Expense/Average Earning Assets		2.55				2.48				2.26				1.97				1.48
Net Interest Margin (FTE) on Average Earning Assets		3.10				3.16				3.29				3.39				3.58
Efficiency Ratio		59.21				63.26				53.91				52.21				51.72
Tangible Common Book Value Per Share	$	25.07			$	25.06			$	22.43			$	23.34			$	22.93

LOANS
(Dollars In Thousands)	March 31,				December 31,				September 30,				June 30,				March 31,
		2024				2023				2023				2023				2023
Commercial and industrial loans	$	3,722,365			$	3,670,948			$	3,490,953			$	3,531,395			$	3,502,204
Agricultural land, production and other loans to farmers		234,431				263,414				233,838				230,003				219,598
Real estate loans:
Construction		941,726				957,545				1,022,261				949,918				960,979
Commercial real estate, non-owner occupied		2,368,360				2,400,839				2,360,596				2,379,819				2,375,410
Commercial real estate, owner occupied		1,137,894				1,162,083				1,153,707				1,179,739				1,244,117
Residential		2,316,490				2,288,921				2,257,385				2,248,473				2,185,943
Home equity		618,258				617,571				609,352				614,366				621,354
Individuals' loans for household and other personal expenditures		161,459				168,388				176,523				172,896				172,389
Public finance and other commercial loans		964,599				956,318				966,807				963,624				959,467
Loans		12,465,582				12,486,027				12,271,422				12,270,233				12,241,461
Allowance for credit losses - loans		(204,681	)			(204,934	)			(205,782	)			(221,147	)			(223,052	)
NET LOANS	$	12,260,901			$	12,281,093			$	12,065,640			$	12,049,086			$	12,018,409

DEPOSITS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
Demand deposits	$	7,771,976		$	7,965,862		$	7,952,040		$	8,045,455		$	8,422,387
Savings deposits		4,679,593			4,516,433			4,572,162			4,530,255			4,499,487
Certificates and other time deposits of $100,000 or more		1,451,443			1,408,985			1,280,607			1,160,303			1,040,379
Other certificates and time deposits		901,280			849,906			761,196			680,965			574,886
Brokered certificates of deposits		80,292			80,267			80,571			164,177			166,148
TOTAL DEPOSITS	$	14,884,584		$	14,821,453		$	14,646,576		$	14,581,155		$	14,703,287

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Three Months Ended
	March 31, 2024									March 31, 2023
	Average Balance			Interest  Income / Expense			Average Rate			Average Balance			Interest  Income / Expense			Average Rate
ASSETS
Interest-bearing deposits	$	575,699		$	6,493		4.51	%		$	172,814		$	637		1.47	%
Federal Home Loan Bank stock		41,764			835		8.00				39,759			542		5.45
Investment Securities: (1)
Taxable		1,783,057			8,748		1.96				1,924,079			9,087		1.89
Tax-exempt (2)		2,246,265			17,229		3.07				2,552,371			20,342		3.19
Total Investment Securities		4,029,322			25,977		2.58				4,476,450			29,429		2.63
Loans held for sale		21,782			328		6.02				23,538			360		6.12
Loans: (3)
Commercial		8,598,110			159,209		7.41				8,483,879			139,661		6.58
Real estate mortgage		2,130,947			22,357		4.20				1,914,640			18,391		3.84
Installment		821,815			16,129		7.85				840,450			13,941		6.64
Tax-exempt (2)		904,412			10,367		4.59				872,877			9,758		4.47
Total Loans		12,477,066			208,390		6.68				12,135,384			182,111		6.00
Total Earning Assets		17,123,851			241,695		5.65	%			16,824,407			212,719		5.06	%
Total Non-Earning Assets		1,306,670									1,197,788
TOTAL ASSETS	$	18,430,521								$	18,022,195
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	5,419,821		$	39,491		2.91	%		$	5,263,601		$	24,662		1.87	%
Money market deposits		3,045,478			27,383		3.60				2,746,047			13,577		1.98
Savings deposits		1,559,877			3,801		0.97				1,826,209			2,965		0.65
Certificates and other time deposits		2,427,859			27,610		4.55				1,466,275			9,481		2.59
Total Interest-Bearing Deposits		12,453,035			98,285		3.16				11,302,132			50,685		1.79
Borrowings		1,011,812			10,552		4.17				1,293,309			11,594		3.59
Total Interest-Bearing Liabilities		13,464,847			108,837		3.23				12,595,441			62,279		1.98
Noninterest-bearing deposits		2,428,170									3,121,277
Other liabilities		295,365									222,352
Total Liabilities		16,188,382									15,939,070
STOCKHOLDERS' EQUITY		2,242,139									2,083,125
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,430,521			108,837					$	18,022,195			62,279
Net Interest Income (FTE)				$	132,858								$	150,440
Net Interest Spread (FTE) (4)							2.42	%								3.08	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets							5.65	%								5.06	%
Interest Expense / Average Earning Assets							2.55	%								1.48	%
Net Interest Margin (FTE) (5)							3.10	%								3.58	%
(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 2024 and 2023. These totals equal $5,795 and $6,321 for the three months ended March 31, 2024 and 2023, 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
	March 31,				December 31,				September 30,				June 30,				March 31,
		2024				2023				2023				2023				2023
Net Income Available to Common Stockholders - GAAP	$	47,472			$	42,010			$	55,898			$	60,393			$	63,610
Adjustments:
PPP loan income		—				(7	)			(8	)			(9	)			(25	)
Non-core expenses1,2		3,481				12,682				—				—				—
Tax on adjustments		(848	)			(3,088	)			2				2				6
Adjusted Net Income Available to Common Stockholders - Non-GAAP	$	50,105			$	51,597			$	55,892			$	60,386			$	63,591
Average Diluted Common Shares Outstanding (in thousands)		59,273				59,556				59,503				59,448				59,441
Diluted Earnings Per Common Share - GAAP	$	0.80			$	0.71			$	0.94			$	1.02			$	1.07
Adjustments:
PPP loan income		—				—				—				—				—
Non-core expenses1,2		0.06				0.21				—				—				—
Tax on adjustments		(0.01	)			(0.05	)			—				—				—
Adjusted Diluted Earnings Per Common Share - Non-GAAP	$	0.85			$	0.87			$	0.94			$	1.02			$	1.07

¹ - Non-core expenses in 4Q23 included $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.
² - Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.

RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
		2024				2023				2023				2023				2023
Total Average Stockholders' Equity (GAAP)	$	2,242,139			$	2,130,993			$	2,154,232			$	2,139,877			$	2,083,125
Less: Average Preferred Stock		(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)
Less: Average Intangible Assets, Net of Tax		(732,432	)			(734,007	)			(735,787	)			(737,489	)			(739,190	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,484,582			$	1,371,861			$	1,393,320			$	1,377,263			$	1,318,810
Net Income Available to Common Stockholders (GAAP)	$	47,472			$	42,010			$	55,898			$	60,393			$	63,610
Plus: Intangible Asset Amortization, Net of Tax		1,546				1,724				1,724				1,724				1,734
Tangible Net Income (Non-GAAP)	$	49,018			$	43,734			$	57,622			$	62,117			$	65,344
Return on Tangible Common Equity (Non-GAAP)		13.21	%			12.75	%			16.54	%			18.04	%			19.82	%