First Merchants Corporation Announces First Quarter 2024 Earnings Per Share

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 expenses ^1,2		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 expenses ^1,2		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	%