First Merchants Corporation Announces Second Quarter 2024 Earnings Per Share

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

Second Quarter 2024 Highlights:

• Net income available to common stockholders was $39.5 million and diluted earnings per common share totaled $.68 in the second quarter of 2024, compared to $60.4 million and $1.02 in the second quarter of 2023, and $47.5 million and $.80 in the first quarter of 2024.
• Strong capital position with Common Equity Tier 1 Capital Ratio of 11.02 percent.
• Net interest margin totaled 3.16 percent compared to 3.10 percent on a linked quarter basis.
  
  
• Total loans grew $191.2 million, or 6.1 percent annualized on a linked quarter basis, and $374.4 million, or 3.0 percent during the last twelve months.
  
  
• Total deposits declined $315.5 million, or 8.5 percent annualized on a linked quarter basis.
  
  
• Nonperforming assets to total assets were 36 basis points compared to 37 basis points on a linked quarter basis.
  
  
• The efficiency ratio totaled 53.84 percent for the quarter.

Mark Hardwick, Chief Executive Officer, stated, "We are pleased that net interest margin improved by 6 basis points over the first quarter of 2024 and that net interest income increased by $1.5 million over the same period. Non-interest income and non-interest expense also compared favorably helping the company produce an efficiency ratio better than our stated key performance indicator of less than 55 percent." Hardwick added, "The elevated provision expense driven by higher than normal net charge-off's was the singular item that weakened our performance in the quarter."

Second Quarter Financial Results:

First Merchants Corporation (the "Corporation") has reported second quarter 2024 net income available to common stockholders of $39.5 million compared to $60.4 million during the same period in 2023. Diluted earnings per common share for the period totaled $.68 per share compared to the second quarter of 2023 result of $1.02 per share.

Total assets equaled $18.3 billion as of quarter-end and loans totaled $12.7 billion. During the past twelve months, total loans grew by $374.4 million, or 3.0 percent. On a linked quarter basis, loans grew $191.2 million, or 6.1 percent with growth primarily in Commercial & Industrial loans.

Investments, totaling $3.8 billion, decreased $138.4 million, or 3.6 percent, during the last twelve months and decreased $30.5 million, or 3.2 percent annualized on a linked quarter basis.

Total deposits equaled $14.6 billion as of quarter-end and decreased by $12.1 million over the past twelve months. Total deposits declined $315.5 million, or 8.5 percent annualized on a linked quarter basis with noninterest-bearing deposits remaining stable. The loan to deposit ratio for the current quarter ended at 87.0 percent.

The Corporation's Allowance for Credit Losses – Loans (ACL) totaled $189.5 million as of quarter-end, or 1.50 percent of total loans. Loan charge-offs, net of recoveries, for the quarter totaled $39.6 million and provision expense of $24.5 million was recorded during the quarter.  Reserves for unfunded commitments totaling $19.5 million remain unchanged from prior quarter. Non-performing assets to total assets were 0.36 percent for the second quarter of 2024, a decrease of one basis point compared to 0.37 percent in the prior quarter.

Net interest income, totaling $128.6 million for the quarter, increased $1.5 million, or 1.2 percent, compared to prior quarter but decreased $9.3 million, or 6.7 percent compared to the second quarter of 2023. Stated net-interest margin on a tax equivalent basis, totaling 3.16 percent, increased by six basis points compared to the first quarter of 2024 but decreased 23 basis points compared to the second quarter of 2023. During the quarter, higher yields on earnings assets and lower yields on interest bearing liabilities both contributed to the increase in net-interest margin over last quarter.

Noninterest income, totaling $31.3 million for the quarter, increased $4.7 million, or 17.6 percent, compared to the first quarter of 2024 and increased $5.0 million from the second quarter of 2023. The increase over first quarter of 2024 was driven primarily by higher gains on the sales of loans, private wealth fees, and an increase in CRA investment valuations recorded through Other Income on the Income Statement.

Noninterest expense totaled $91.4 million for the quarter, a decline of $5.5 million from the first quarter of 2024. The decrease was from lower salaries and employee benefits and lower FDIC assessments, offset by the inclusion of $0.7 million of gains on the sale of properties in the prior quarter which were recorded in Other Expenses.

The Corporation's total risk-based capital ratio equaled 12.95 percent, common equity tier 1 capital ratio equaled 11.02 percent, and the tangible common equity ratio totaled 8.27 percent. These ratios continue to reflect the Corporation's strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, July 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/BId0844162db694c8f80a4e6caa546f714)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/d6tnudnp) during the time of the call. A replay of the webcast will be available until July 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)	June 30,
		2024				2023
ASSETS
Cash and due from banks	$	105,372			$	108,975
Interest-bearing deposits		168,528				219,480
Investment securities, net of allowance for credit losses of $245,000 and $245,000		3,753,088				3,891,491
Loans held for sale		32,292				27,297
Loans		12,639,650				12,270,233
Less: Allowance for credit losses - loans		(189,537	)			(221,147	)
Net loans		12,450,113				12,049,086
Premises and equipment		133,245				114,402
Federal Home Loan Bank stock		41,738				41,842
Interest receivable		97,546				89,784
Goodwill and other intangibles		735,373				743,465
Cash surrender value of life insurance		306,379				307,020
Other real estate owned		4,824				7,685
Tax asset, deferred and receivable		107,080				113,724
Other assets		367,845				318,005
TOTAL ASSETS	$	18,303,423			$	18,032,256
LIABILITIES
Deposits:
Noninterest-bearing	$	2,303,313			$	2,636,017
Interest-bearing		12,265,757				11,945,138
Total Deposits		14,569,070				14,581,155
Borrowings:
Federal funds purchased		147,229				—
Securities sold under repurchase agreements		100,451				152,472
Federal Home Loan Bank advances		832,703				723,480
Subordinated debentures and other borrowings		93,589				151,325
Total Borrowings		1,173,972				1,027,277
Interest payable		18,554				13,595
Other liabilities		329,302				264,664
Total Liabilities		16,090,898				15,886,691
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 - 58,045,653 and 59,297,148 shares		7,256				7,412
Additional paid-in capital		1,191,193				1,233,593
Retained earnings		1,200,930				1,097,399
Accumulated other comprehensive loss		(211,979	)			(217,964	)
Total Stockholders' Equity		2,212,525				2,145,565
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,303,423			$	18,032,256

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended								Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)	June 30,								June 30,
		2024				2023				2024				2023
INTEREST INCOME
Loans receivable:
Taxable	$	201,413			$	186,256			$	399,436			$	358,609
Tax-exempt		8,430				7,760				16,620				15,469
Investment securities:
Taxable		9,051				8,886				17,799				17,973
Tax-exempt		13,613				14,279				27,224				30,349
Deposits with financial institutions		2,995				3,164				9,488				3,801
Federal Home Loan Bank stock		879				1,020				1,714				1,562
Total Interest Income		236,381				221,365				472,281				427,763
INTEREST EXPENSE
Deposits		99,151				73,201				197,436				123,886
Federal funds purchased		126				123				126				1,420
Securities sold under repurchase agreements		645				979				1,677				1,827
Federal Home Loan Bank advances		6,398				6,815				13,171				13,879
Subordinated debentures and other borrowings		1,490				2,412				4,237				4,797
Total Interest Expense		107,810				83,530				216,647				145,809
NET INTEREST INCOME		128,571				137,835				255,634				281,954
Provision for credit losses		24,500				—				26,500				—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		104,071				137,835				229,134				281,954
NONINTEREST INCOME
Service charges on deposit accounts		8,214				7,813				16,121				15,172
Fiduciary and wealth management fees		8,825				7,397				17,025				15,259
Card payment fees		4,739				4,537				9,239				9,709
Net gains and fees on sales of loans		5,141				3,632				8,395				6,031
Derivative hedge fees		489				672				752				1,820
Other customer fees		460				742				887				1,259
Earnings on cash surrender value of life insurance		1,929				2,096				3,521				3,384
Net realized losses on sales of available for sale securities		(49	)			(1,392	)			(51	)			(2,963	)
Other income		1,586				822				2,083				1,645
Total Noninterest Income		31,334				26,319				57,972				51,316
NONINTEREST EXPENSES
Salaries and employee benefits		52,214				54,753				110,507				112,212
Net occupancy		6,746				6,674				14,058				13,933
Equipment		6,599				6,181				12,825				12,307
Marketing		1,773				1,102				2,971				2,411
Outside data processing fees		7,072				6,604				13,961				12,717
Printing and office supplies		354				434				707				817
Intangible asset amortization		1,771				2,182				3,728				4,379
FDIC assessments		3,278				2,740				7,565				4,136
Other real estate owned and foreclosure expenses		373				916				907				898
Professional and other outside services		3,822				4,660				7,774				8,358
Other expenses		7,411				6,347				13,345				14,145
Total Noninterest Expenses		91,413				92,593				188,348				186,313
INCOME BEFORE INCOME TAX		43,992				71,561				98,758				146,957
Income tax expense		4,067				10,699				10,892				22,016
NET INCOME		39,925				60,862				87,866				124,941
Preferred stock dividends		469				469				938				938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	39,456			$	60,393			$	86,928			$	124,003
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.68			$	1.02			$	1.48			$	2.09
Diluted Net Income Available to Common Stockholders	$	0.68			$	1.02			$	1.48			$	2.09
Cash Dividends Paid to Common Stockholders	$	0.35			$	0.34			$	0.69			$	0.66
Average Diluted Common Shares Outstanding (in thousands)		58,328				59,448				58,800				59,446

FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended								Six Months Ended
	June 30,								June 30,
		2024				2023				2024				2023
NET CHARGE-OFFS	$	39,644			$	1,905			$	41,897			$	2,130
AVERAGE BALANCES:
Total Assets	$	18,332,159			$	18,170,649			$	18,381,340			$	18,096,832
Total Loans		12,620,530				12,369,673				12,548,798				12,253,176
Total Earning Assets		17,013,984				16,968,465				17,068,917				16,896,834
Total Deposits		14,895,867				14,719,913				14,888,536				14,572,480
Total Stockholders' Equity		2,203,361				2,139,877				2,222,750				2,111,658
FINANCIAL RATIOS:
Return on Average Assets		0.87	%			1.34	%			0.96	%			1.38	%
Return on Average Stockholders' Equity		7.16				11.29				7.82				11.74
Return on Tangible Common Stockholders' Equity		11.29				18.04				12.26				18.91
Average Earning Assets to Average Assets		92.81				93.38				92.86				93.37
Allowance for Credit Losses - Loans as % of Total Loans		1.50				1.80				1.50				1.80
Net Charge-offs as % of Average Loans (Annualized)		1.26				0.06				0.67				0.03
Average Stockholders' Equity to Average Assets		12.02				11.78				12.09				11.67
Tax Equivalent Yield on Average Earning Assets		5.69				5.36				5.67				5.21
Interest Expense/Average Earning Assets		2.53				1.97				2.54				1.73
Net Interest Margin (FTE) on Average Earning Assets		3.16				3.39				3.13				3.48
Efficiency Ratio		53.84				52.21				56.47				51.96
Tangible Common Book Value Per Share	$	25.10			$	23.34			$	25.10			$	23.34

NONPERFORMING ASSETS
(Dollars In Thousands)	June 30,				March 31,				December 31,				September 30,				June 30,
		2024				2024				2023				2023				2023
Nonaccrual Loans	$	61,906			$	62,478			$	53,580			$	53,102			$	69,240
Other Real Estate Owned and Repossessions		4,824				4,886				4,831				6,480				7,685
Nonperforming Assets (NPA)		66,730				67,364				58,411				59,582				76,925
90+ Days Delinquent		1,686				2,838				172				89				428
NPAs & 90 Day Delinquent	$	68,416			$	70,202			$	58,583			$	59,671			$	77,353
Allowance for Credit Losses - Loans	$	189,537			$	204,681			$	204,934			$	205,782			$	221,147
Quarterly Net Charge-offs		39,644				2,253				3,148				20,365				1,905
NPAs / Actual Assets %		0.36	%			0.37	%			0.32	%			0.33	%			0.43	%
NPAs & 90 Day / Actual Assets %		0.37	%			0.38	%			0.32	%			0.33	%			0.43	%
NPAs / Actual Loans and OREO %		0.53	%			0.54	%			0.47	%			0.48	%			0.63	%
Allowance for Credit Losses - Loans / Actual Loans (%)		1.50	%			1.64	%			1.64	%			1.67	%			1.80	%
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)		1.26	%			0.07	%			0.10	%			0.66	%			0.06	%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	June 30,				March 31,				December 31,				September 30,				June 30,
		2024				2024				2023				2023				2023
ASSETS
Cash and due from banks	$	105,372			$	100,514			$	112,649			$	125,173			$	108,975
Interest-bearing deposits		168,528				410,497				436,080				348,639				219,480
Investment securities, net of allowance for credit losses		3,753,088				3,783,574				3,811,364				3,713,724				3,891,491
Loans held for sale		32,292				15,118				18,934				30,972				27,297
Loans		12,639,650				12,465,582				12,486,027				12,271,422				12,270,233
Less: Allowance for credit losses - loans		(189,537	)			(204,681	)			(204,934	)			(205,782	)			(221,147	)
Net loans		12,450,113				12,260,901				12,281,093				12,065,640				12,049,086
Premises and equipment		133,245				132,706				133,896				132,441				114,402
Federal Home Loan Bank stock		41,738				41,758				41,769				41,797				41,842
Interest receivable		97,546				92,550				97,664				90,011				89,784
Goodwill and other intangibles		735,373				737,144				739,101				741,283				743,465
Cash surrender value of life insurance		306,379				306,028				306,301				306,106				307,020
Other real estate owned		4,824				4,886				4,831				6,480				7,685
Tax asset, deferred and receivable		107,080				101,121				99,883				135,521				113,724
Other assets		367,845				331,006				322,322				340,476				318,005
TOTAL ASSETS	$	18,303,423			$	18,317,803			$	18,405,887			$	18,078,263			$	18,032,256
LIABILITIES
Deposits:
Noninterest-bearing	$	2,303,313			$	2,338,364			$	2,500,062			$	2,554,984			$	2,636,017
Interest-bearing		12,265,757				12,546,220				12,321,391				12,091,592				11,945,138
Total Deposits		14,569,070				14,884,584				14,821,453				14,646,576				14,581,155
Borrowings:
Federal funds purchased		147,229				—				—				—				—
Securities sold under repurchase agreements		100,451				130,264				157,280				152,537				152,472
Federal Home Loan Bank advances		832,703				612,778				712,852				713,384				723,480
Subordinated debentures and other borrowings		93,589				118,612				158,644				158,665				151,325
Total Borrowings		1,173,972				861,654				1,028,776				1,024,586				1,027,277
Interest payable		18,554				19,262				18,912				16,473				13,595
Other liabilities		329,302				327,500				289,033				297,984				264,664
Total Liabilities		16,090,898				16,093,000				16,158,174				15,985,619				15,886,691
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		7,256				7,321				7,428				7,425				7,412
Additional paid-in capital		1,191,193				1,208,447				1,236,506				1,234,402				1,233,593
Retained earnings		1,200,930				1,181,939				1,154,624				1,132,962				1,097,399
Accumulated other comprehensive loss		(211,979	)			(198,029	)			(175,970	)			(307,270	)			(217,964	)
Total Stockholders' Equity		2,212,525				2,224,803				2,247,713				2,092,644				2,145,565
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,303,423			$	18,317,803			$	18,405,887			$	18,078,263			$	18,032,256

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	June 30,				March 31,				December 31,				September 30,				June 30,
		2024				2024				2023				2023				2023
INTEREST INCOME
Loans receivable:
Taxable	$	201,413			$	198,023			$	197,523			$	191,705			$	186,256
Tax-exempt		8,430				8,190				8,197				8,288				7,760
Investment securities:
Taxable		9,051				8,748				8,644				8,590				8,886
Tax-exempt		13,613				13,611				13,821				13,947				14,279
Deposits with financial institutions		2,995				6,493				8,034				5,884				3,164
Federal Home Loan Bank stock		879				835				771				719				1,020
Total Interest Income		236,381				235,900				236,990				229,133				221,365
INTEREST EXPENSE
Deposits		99,151				98,285				96,655				85,551				73,201
Federal funds purchased		126				—				1				—				123
Securities sold under repurchase agreements		645				1,032				827				797				979
Federal Home Loan Bank advances		6,398				6,773				6,431				6,896				6,815
Subordinated debentures and other borrowings		1,490				2,747				3,013				2,506				2,412
Total Interest Expense		107,810				108,837				106,927				95,750				83,530
NET INTEREST INCOME		128,571				127,063				130,063				133,383				137,835
Provision for credit losses		24,500				2,000				1,500				2,000				—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		104,071				125,063				128,563				131,383				137,835
NONINTEREST INCOME
Service charges on deposit accounts		8,214				7,907				7,690				7,975				7,813
Fiduciary and wealth management fees		8,825				8,200				8,187				7,394				7,397
Card payment fees		4,739				4,500				4,437				4,716				4,537
Net gains and fees on sales of loans		5,141				3,254				4,111				5,517				3,632
Derivative hedge fees		489				263				1,049				516				672
Other customer fees		460				427				237				384				742
Earnings on cash surrender value of life insurance		1,929				1,592				3,202				1,761				2,096
Net realized losses on sales of available for sale securities		(49	)			(2	)			(2,317	)			(1,650	)			(1,392	)
Other income (loss)		1,586				497				(152	)			1,229				822
Total Noninterest Income		31,334				26,638				26,444				27,842				26,319
NONINTEREST EXPENSES
Salaries and employee benefits		52,214				58,293				60,967				55,566				54,753
Net occupancy		6,746				7,312				9,089				6,837				6,674
Equipment		6,599				6,226				6,108				5,698				6,181
Marketing		1,773				1,198				2,647				2,369				1,102
Outside data processing fees		7,072				6,889				5,875				6,573				6,604
Printing and office supplies		354				353				402				333				434
Intangible asset amortization		1,771				1,957				2,182				2,182				2,182
FDIC assessments		3,278				4,287				7,557				2,981				2,740
Other real estate owned and foreclosure expenses		373				534				1,743				677				916
Professional and other outside services		3,822				3,952				3,981				3,833				4,660
Other expenses		7,411				5,934				7,552				6,805				6,347
Total Noninterest Expenses		91,413				96,935				108,103				93,854				92,593
INCOME BEFORE INCOME TAX		43,992				54,766				46,904				65,371				71,561
Income tax expense		4,067				6,825				4,425				9,005				10,699
NET INCOME		39,925				47,941				42,479				56,366				60,862
Preferred stock dividends		469				469				469				468				469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	39,456			$	47,472			$	42,010			$	55,898			$	60,393
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.68			$	0.80			$	0.71			$	0.95			$	1.02
Diluted Net Income Available to Common Stockholders	$	0.68			$	0.80			$	0.71			$	0.94			$	1.02
Cash Dividends Paid to Common Stockholders	$	0.35			$	0.34			$	0.34			$	0.34			$	0.34
Average Diluted Common Shares Outstanding (in thousands)		58,328				59,273				59,556				59,503				59,448
FINANCIAL RATIOS:
Return on Average Assets		0.87	%			1.04	%			0.92	%			1.24	%			1.34	%
Return on Average Stockholders' Equity		7.16				8.47				7.89				10.38				11.29
Return on Tangible Common Stockholders' Equity		11.29				13.21				12.75				16.54				18.04
Average Earning Assets to Average Assets		92.81				92.91				93.62				93.36				93.38
Allowance for Credit Losses - Loans as % of Total Loans		1.50				1.64				1.64				1.67				1.80
Net Charge-offs as % of Average Loans (Annualized)		1.26				0.07				0.10				0.66				0.06
Average Stockholders' Equity to Average Assets		12.02				12.17				11.58				11.87				11.78
Tax Equivalent Yield on Average Earning Assets		5.69				5.65				5.64				5.55				5.36
Interest Expense/Average Earning Assets		2.53				2.55				2.48				2.26				1.97
Net Interest Margin (FTE) on Average Earning Assets		3.16				3.10				3.16				3.29				3.39
Efficiency Ratio		53.84				59.21				63.26				53.91				52.21
Tangible Common Book Value Per Share	$	25.10			$	25.07			$	25.06			$	22.43			$	23.34

LOANS
(Dollars In Thousands)	June 30,				March 31,				December 31,				September 30,				June 30,
		2024				2024				2023				2023				2023
Commercial and industrial loans	$	3,949,817			$	3,722,365			$	3,670,948			$	3,490,953			$	3,531,395
Agricultural land, production and other loans to farmers		239,926				234,431				263,414				233,838				230,003
Real estate loans:
Construction		823,267				941,726				957,545				1,022,261				949,918
Commercial real estate, non-owner occupied		2,323,533				2,368,360				2,400,839				2,360,596				2,379,819
Commercial real estate, owner occupied		1,174,195				1,137,894				1,162,083				1,153,707				1,179,739
Residential		2,370,905				2,316,490				2,288,921				2,257,385				2,248,473
Home equity		631,104				618,258				617,571				609,352				614,366
Individuals' loans for household and other personal expenditures		162,089				161,459				168,388				176,523				172,896
Public finance and other commercial loans		964,814				964,599				956,318				966,807				963,624
Loans		12,639,650				12,465,582				12,486,027				12,271,422				12,270,233
Allowance for credit losses - loans		(189,537	)			(204,681	)			(204,934	)			(205,782	)			(221,147	)
NET LOANS	$	12,450,113			$	12,260,901			$	12,281,093			$	12,065,640			$	12,049,086

DEPOSITS
(Dollars In Thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
		2024			2024			2023			2023			2023
Demand deposits	$	7,757,679		$	7,771,976		$	7,965,862		$	7,952,040		$	8,045,455
Savings deposits		4,339,161			4,679,593			4,516,433			4,572,162			4,530,255
Certificates and other time deposits of $100,000 or more		1,415,131			1,451,443			1,408,985			1,280,607			1,160,303
Other certificates and time deposits		889,949			901,280			849,906			761,196			680,965
Brokered certificates of deposits		167,150			80,292			80,267			80,571			164,177
TOTAL DEPOSITS	$	14,569,070		$	14,884,584		$	14,821,453		$	14,646,576		$	14,581,155

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Three Months Ended
	June 30, 2024									June 30, 2023
	Average Balance			Interest Income / Expense			Average Rate			Average Balance			Interest Income / Expense			Average Rate
ASSETS
Interest-bearing deposits	$	322,647		$	2,995		3.71	%		$	343,253		$	3,164		3.69	%
Federal Home Loan Bank stock		41,749			879		8.42				41,873			1,020		9.74
Investment Securities:(1)
Taxable		1,788,749			9,051		2.02				1,876,676			8,886		1.89
Tax-exempt(2)		2,240,309			17,232		3.08				2,336,990			18,075		3.09
Total Investment Securities		4,029,058			26,283		2.61				4,213,666			26,961		2.56
Loans held for sale		28,585			431		6.03				19,328			300		6.21
Loans:(3)
Commercial		8,691,746			160,848		7.40				8,605,339			150,766		7.01
Real estate mortgage		2,150,591			23,799		4.43				2,031,136			20,345		4.01
Installment		823,417			16,335		7.94				831,775			14,844		7.14
Tax-exempt(2)		926,191			10,670		4.61				882,095			9,823		4.45
Total Loans		12,620,530			212,083		6.72				12,369,673			196,078		6.34
Total Earning Assets		17,013,984			242,240		5.69	%			16,968,465			227,223		5.36	%
Total Non-Earning Assets		1,318,175									1,202,184
TOTAL ASSETS	$	18,332,159								$	18,170,649
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	5,586,549		$	40,994		2.94	%		$	5,546,232		$	34,574		2.49	%
Money market deposits		3,036,398			27,230		3.59				2,766,876			18,684		2.70
Savings deposits		1,508,734			3,476		0.92				1,724,816			3,884		0.90
Certificates and other time deposits		2,414,967			27,451		4.55				1,883,998			16,059		3.41
Total Interest-Bearing Deposits		12,546,648			99,151		3.16				11,921,922			73,201		2.46
Borrowings		885,919			8,659		3.91				1,110,486			10,329		3.72
Total Interest-Bearing Liabilities		13,432,567			107,810		3.21				13,032,408			83,530		2.56
Noninterest-bearing deposits		2,349,219									2,797,991
Other liabilities		347,012									200,373
Total Liabilities		16,128,798									16,030,772
STOCKHOLDERS' EQUITY		2,203,361									2,139,877
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,332,159			107,810					$	18,170,649			83,530
Net Interest Income (FTE)				$	134,430								$	143,693
Net Interest Spread (FTE)(4)							2.48	%								2.80	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets							5.69	%								5.36	%
Interest Expense / Average Earning Assets							2.53	%								1.97	%
Net Interest Margin (FTE)(5)							3.16	%								3.39	%
(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 $5,859 and $5,858 for the three months ended June 30, 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.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Six Months Ended
	June 30, 2024									June 30, 2023
	Average Balance			Interest Income / Expense			Average Rate			Average Balance			Interest Income / Expense			Average Rate
Assets:
Federal Funds Sold
Interest-bearing deposits	$	449,173		$	9,488		4.22	%		$	258,504		$	3,801		2.94	%
Federal Home Loan Bank stock		41,757			1,714		8.21				40,821			1,562		7.65
Investment Securities:(1)
Taxable		1,785,903			17,799		1.99				1,900,247			17,973		1.89
Tax-exempt(2)		2,243,286			34,461		3.07				2,444,086			38,416		3.14
Total Investment Securities		4,029,189			52,260		2.59				4,344,333			56,389		2.60
Loans held for sale		25,184			759		6.03				21,952			660		6.01
Loans:(3)
Commercial		8,644,927			320,057		7.40				8,544,945			290,428		6.80
Real estate mortgage		2,140,769			46,156		4.31				1,972,680			38,736		3.93
Installment		822,616			32,464		7.89				836,088			28,785		6.89
Tax-exempt(2)		915,302			21,038		4.60				877,511			19,581		4.46
Total Loans		12,548,798			420,474		6.70				12,253,176			378,190		6.17
Total Earning Assets		17,068,917			483,936		5.67	%			16,896,834			439,942		5.21	%
Total Non-Earning Assets		1,312,423									1,199,998
Total Assets	$	18,381,340								$	18,096,832
Liabilities:
Interest-Bearing deposits:
Interest-bearing deposits	$	5,503,185		$	80,484		2.92	%		$	5,405,696		$	59,237		2.19	%
Money market deposits		3,040,938			54,613		3.59				2,756,519			32,261		2.34
Savings deposits		1,534,305			7,277		0.95				1,775,233			6,849		0.77
Certificates and other time deposits		2,421,413			55,062		4.55				1,676,291			25,539		3.05
Total Interest-Bearing Deposits		12,499,841			197,436		3.16				11,613,739			123,886		2.13
Borrowings		948,866			19,211		4.05				1,201,392			21,923		3.65
Total Interest-Bearing Liabilities		13,448,707			216,647		3.22				12,815,131			145,809		2.28
Noninterest-bearing deposits		2,388,695									2,958,741
Other liabilities		321,188									211,302
Total Liabilities		16,158,590									15,985,174
Stockholders' Equity		2,222,750									2,111,658
Total Liabilities and Stockholders' Equity	$	18,381,340			216,647					$	18,096,832			145,809
Net Interest Income (FTE)				$	267,289								$	294,133
Net Interest Spread (FTE)(4)							2.45	%								2.93	%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets							5.67	%								5.21	%
Interest Expense / Average Earning Assets							2.54	%								1.73	%
Net Interest Margin (FTE)(5)							3.13	%								3.48	%
(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 $11,655 and $12,179 for the six months ended June 30, 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																			Six Months Ended
	June 30,			March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
		2024			2024				2023				2023				2023				2024				2023
Net Income Available to Common Stockholders - GAAP	$	39,456		$	47,472			$	42,010			$	55,898			$	60,393			$	86,928			$	124,003
Adjustments:
PPP loan income		—			—				(7	)			(8	)			(9	)			—				(34	)
Non-core expenses1,2		—			3,481				12,682				—				—				3,481				—
Tax on adjustments		—			(848	)			(3,088	)			2				2				(848	)			8
Adjusted Net Income Available to Common Stockholders - Non-GAAP	$	39,456		$	50,105			$	51,597			$	55,892			$	60,386			$	89,561			$	123,977
Average Diluted Common Shares Outstanding (in thousands)		58,328			59,273				59,556				59,503				59,448				58,800				59,446
Diluted Earnings Per Common Share - GAAP	$	0.68		$	0.80			$	0.71			$	0.94			$	1.02			$	1.48			$	2.09
Adjustments:
PPP loan income		—			—				—				—				—				—				—
Non-core expenses1,2		—			0.06				0.21				—				—				0.06				—
Tax on adjustments		—			(0.01	)			(0.05	)			—				—				(0.01	)			—
Adjusted Diluted Earnings Per Common Share - Non-GAAP	$	0.68		$	0.85			$	0.87			$	0.94			$	1.02			$	1.53			$	2.09

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.

NET INTEREST MARGIN ("NIM"), ADJUSTED
(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,
		2024				2024				2023				2023				2023				2024				2023
Net Interest Income (GAAP)	$	128,571			$	127,063			$	130,063			$	133,383			$	137,835			$	255,634			$	281,954
Fully Taxable Equivalent ("FTE") Adjustment		5,859				5,795				5,853				5,911				5,858				11,655				12,179
Net Interest Income (FTE) (non-GAAP)	$	134,430			$	132,858			$	135,916			$	139,294			$	143,693			$	267,289			$	294,133
Average Earning Assets (GAAP)	$	17,013,984			$	17,123,851			$	17,222,714			$	16,947,669			$	16,968,465			$	17,068,917			$	16,896,834
Net Interest Margin (GAAP)		3.02	%			2.97	%			3.02	%			3.15	%			3.25	%			3.00	%			3.34	%
Net Interest Margin (FTE) (non-GAAP)		3.16	%			3.10	%			3.16	%			3.29	%			3.39	%			3.13	%			3.48	%

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,
		2024				2024				2023				2023				2023				2024				2023
Total Average Stockholders' Equity (GAAP)	$	2,203,361			$	2,242,139			$	2,130,993			$	2,154,232			$	2,139,877			$	2,222,750			$	2,111,658
Less: Average Preferred Stock		(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)
Less: Average Intangible Assets, Net of Tax		(730,980	)			(732,432	)			(734,007	)			(735,787	)			(737,489	)			(731,706	)			(738,334	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,447,256			$	1,484,582			$	1,371,861			$	1,393,320			$	1,377,263			$	1,465,919			$	1,348,199
Net Income Available to Common Stockholders (GAAP)	$	39,456			$	47,472			$	42,010			$	55,898			$	60,393			$	86,928			$	124,003
Plus: Intangible Asset Amortization, Net of Tax		1,399				1,546				1,724				1,724				1,724				2,945				3,458
Tangible Net Income (Non-GAAP)	$	40,855			$	49,018			$	43,734			$	57,622			$	62,117			$	89,873			$	127,461
Return on Tangible Common Equity (Non-GAAP)		11.29	%			13.21	%			12.75	%			16.54	%			18.04	%			12.26	%			18.91	%