• First Merchants Corporation Announces Third Quarter 2023 Earnings Per Share

    Source: Nasdaq GlobeNewswire / 26 Oct 2023 08:00:52   America/New_York

    MUNCIE, Ind., Oct. 26, 2023 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)

    Third Quarter 2023 Highlights:

    • Net income available to common stockholders was $55.9 million and diluted earnings per common share totaled $0.94, compared to $63.3 million and $1.08 in the third quarter of 2022, and $60.4 million and $1.02 in the second quarter of 2023.
    • Strong capital position with Common Equity Tier 1 Capital Ratio of 11.26 percent.
    • Total loans grew $4.9 million, or 0.2 percent annualized on a linked quarter basis, and $743.6 million, or 6.4 percent during the last twelve months when excluding the impact of non-relationship based commercial loan sales that occurred during the prior quarter of $116.6 million.
    • Total deposits increased $65.4 million, or 1.8 percent annualized on a linked quarter basis, and $211.8 million, or 1.5 percent during the last twelve months.
    • Nonaccrual loans totaled $53.1 million compared to $69.2 million on a linked quarter basis.
    • The efficiency ratio totaled 53.91 percent for the quarter.

    Mark Hardwick, Chief Executive Officer, stated, “First Merchants continued to deliver top quartile operating returns while tactically managing the inflationary interest rate environment. Our teams are focused on meeting the demands of our customer base while planning for continued 2024 growth and performance.”

    Third Quarter Financial Results:

    First Merchants Corporation (the “Corporation”) has reported third quarter 2023 net income available to common stockholders of $55.9 million compared to $63.3 million during the same period in 2022. Diluted earnings per common share for the period totaled $0.94 per share compared to the third quarter of 2022 result of $1.08 per share.

    Total assets equaled $18.0 billion as of quarter-end and loans totaled $12.3 billion. During the past twelve months, total loans grew by $743.6 million, or 6.4 percent and were offset by the non-relationship based commercial loan sale of $116.6 million. On a linked quarter basis, loans grew $4.9 million, or 0.2 percent.

    Investments, totaling $3.7 billion, decreased $581.0 million, or 13.5 percent, during the last twelve months and decreased $177.8 million, or 18.3 percent annualized on a linked quarter basis. The decline during the quarter was due to $33.2 million of bond sales, $38.2 million of security paydowns and maturities, and the remainder was due to a decline in valuation of available for sale securities.

    Total deposits equaled $14.6 billion as of quarter-end and increased by $211.8 million, or 1.5 percent, over the past twelve months. Total deposits increased $65.4 million, or 1.8 percent annualized on a linked quarter basis. During the quarter, commercial and consumer deposits increased $327.8 million which was offset by a reduction in brokered deposits of $133.6 million and municipal deposits of $128.8 million due to seasonality. The loan to deposit ratio declined slightly to 84.0 percent at period end from 84.3 percent in the prior quarter.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $205.8 million as of quarter-end, or 1.67 percent of total loans, a decrease of $15.4 million from prior quarter. Loan charge-offs, net of recoveries, for the quarter totaled $20.4 million primarily due to the charge-off of a previously reported nonaccrual loan to a syndicated specialty finance company resulting from an apparent fraud that impacted our borrower's ability to repay. Net charge-offs were offset with provision expense for loans recorded during the quarter of $5.0 million. Reserves for unfunded commitments were reduced by $3.0 million during the quarter and now total $20.3 million. Net provision expense for the quarter totaled $2.0 million. Nonperforming assets to total assets were 0.33 percent for the third quarter of 2023, a decrease of 10 basis points compared to 0.43 percent in the prior quarter.

    Net interest income, totaling $133.4 million for the quarter, declined $4.5 million, or 3.2 percent, compared to prior quarter and decreased $6.9 million, or 4.9 percent, compared to the third quarter of 2022. Stated net interest margin on a tax equivalent basis totaling 3.29 percent, declined by 10 basis points compared to the second quarter of 2023 and decreased 26 basis points compared to the third quarter of 2022. During the quarter, increased deposit costs and a continued change in deposit mix offset the increase in earning asset yields reducing net interest margin.

    Noninterest income, totaling $27.8 million for the quarter, increased $1.5 million, or 5.8 percent, compared to the second quarter of 2023 but decreased $1.8 million from the third quarter of 2022. The increase over second quarter of 2023 was driven primarily by higher gains on the sales of loans.

    Noninterest expense totaled $93.9 million for the quarter, an increase of $1.3 million from the second quarter of 2023. The increase was from higher marketing costs and salaries and employee benefits, partially offset by a decline in professional and other outside service fees.

    The Corporation’s total risk-based capital ratio equaled 13.66 percent, common equity tier 1 capital ratio equaled 11.26 percent, and the tangible common equity ratio totaled 7.69 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

    CONFERENCE CALL

    First Merchants Corporation will conduct a third quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, October 26, 2023.

    To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BIf859606184ad4e98a66ef43d61469d2c)

    In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/t8uajbb8) during the time of the call. A replay of the webcast will be available until October 26, 2024.

    Detailed financial results are reported on the attached pages.

    About First Merchants Corporation

    First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

    First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

    FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

    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

    Forward-Looking Statements

    This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements of First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.


    CONSOLIDATED BALANCE SHEETS   
    (Dollars In Thousands)September 30,
      2023   2022 
    ASSETS   
    Cash and due from banks$125,173  $119,532 
    Interest-bearing deposits 348,639   179,593 
    Investment securities, net of allowance for credit losses of $245,000 and $245,000 3,713,724   4,294,768 
    Loans held for sale 30,972   25,394 
    Loans 12,271,422   11,650,002 
    Less: Allowance for credit losses - loans (205,782)  (226,702)
    Net loans 12,065,640   11,423,300 
    Premises and equipment 132,441   116,306 
    Federal Home Loan Bank stock 41,797   38,056 
    Interest receivable 90,011   71,605 
    Goodwill and other intangibles 741,283   750,713 
    Cash surrender value of life insurance 306,106   306,932 
    Other real estate owned 6,480   6,454 
    Tax asset, deferred and receivable 135,521   142,110 
    Other assets 258,861   244,222 
    TOTAL ASSETS$17,996,648  $17,718,985 
    LIABILITIES   
    Deposits:   
    Noninterest-bearing$2,554,984  $3,356,651 
    Interest-bearing 12,091,592   11,078,174 
    Total Deposits 14,646,576   14,434,825 
    Borrowings:   
    Federal funds purchased —   185,000 
    Securities sold under repurchase agreements 152,537   194,482 
    Federal Home Loan Bank advances 713,384   643,769 
    Subordinated debentures and other borrowings 158,665   151,301 
    Total Borrowings 1,024,586   1,174,552 
    Interest payable 16,473   4,971 
    Other liabilities 216,369   197,971 
    Total Liabilities 15,904,004   15,812,319 
    STOCKHOLDERS' EQUITY   
    Preferred Stock, $1,000 par value, $1,000 liquidation value:   
    Authorized -- 600 cumulative shares   
    Issued and outstanding - 125 cumulative shares 125   125 
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:   
    Authorized -- 10,000 non-cumulative perpetual shares   
    Issued and outstanding - 10,000 non-cumulative perpetual shares 25,000   25,000 
    Common Stock, $.125 stated value:   
    Authorized -- 100,000,000 shares   
    Issued and outstanding - 59,398,022 and 59,145,414 shares 7,425   7,393 
    Additional paid-in capital 1,234,402   1,226,695 
    Retained earnings 1,132,962   961,542 
    Accumulated other comprehensive loss (307,270)  (314,089)
    Total Stockholders' Equity 2,092,644   1,906,666 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$17,996,648  $17,718,985 


    CONSOLIDATED STATEMENTS OF INCOMEThree Months Ended Nine Months Ended
    (Dollars In Thousands, Except Per Share Amounts)September 30, September 30,
      2023   2022   2023   2022 
    INTEREST INCOME       
    Loans receivable:       
    Taxable$191,705  $128,504  $550,314  $314,366 
    Tax-exempt 8,288   6,500   23,757   18,194 
    Investment securities:       
    Taxable 8,590   10,055   26,563   28,937 
    Tax-exempt 13,947   17,261   44,296   50,348 
    Deposits with financial institutions 5,884   704   9,685   1,544 
    Federal Home Loan Bank stock 719   314   2,281   635 
    Total Interest Income 229,133   163,338   656,896   414,024 
    INTEREST EXPENSE       
    Deposits 85,551   16,644   209,437   29,423 
    Federal funds purchased —   418   1,420   494 
    Securities sold under repurchase agreements 797   372   2,624   595 
    Federal Home Loan Bank advances 6,896   3,493   20,775   6,485 
    Subordinated debentures and other borrowings 2,506   2,105   7,303   5,780 
    Total Interest Expense 95,750   23,032   241,559   42,777 
    NET INTEREST INCOME 133,383   140,306   415,337   371,247 
    Provision for credit losses 2,000   —   2,000   16,755 
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 131,383   140,306   413,337   354,492 
    NONINTEREST INCOME       
    Service charges on deposit accounts 7,975   7,165   23,147   21,274 
    Fiduciary and wealth management fees 7,394   7,221   22,653   22,187 
    Card payment fees 4,716   4,776   14,425   15,674 
    Net gains and fees on sales of loans 5,517   2,543   11,548   7,968 
    Derivative hedge fees 516   700   2,336   3,062 
    Other customer fees 384   501   1,643   1,573 
    Earnings on cash surrender value of life insurance 1,761   6,655   5,145   9,659 
    Net realized gains (losses) on sales of available for sale securities (1,650)  481   (4,613)  1,137 
    Other income (loss) 1,229   (425)  2,874   1,257 
    Total Noninterest Income 27,842   29,617   79,158   83,791 
    NONINTEREST EXPENSES       
    Salaries and employee benefits 55,566   56,002   167,778   154,562 
    Net occupancy 6,837   6,738   20,770   19,573 
    Equipment 5,698   5,997   18,005   17,797 
    Marketing 2,369   2,401   4,780   4,551 
    Outside data processing fees 6,573   6,827   19,290   16,071 
    Printing and office supplies 333   472   1,150   1,198 
    Intangible asset amortization 2,182   2,303   6,561   5,972 
    FDIC assessments 2,981   2,824   7,117   7,940 
    Other real estate owned and foreclosure expenses 677   328   1,575   626 
    Professional and other outside services 3,833   4,461   12,191   17,681 
    Other expenses 6,805   8,025   20,950   20,045 
    Total Noninterest Expenses 93,854   96,378   280,167   266,016 
    INCOME BEFORE INCOME TAX 65,371   73,545   212,328   172,267 
    Income tax expense 9,005   9,793   31,021   20,938 
    NET INCOME 56,366   63,752   181,307   151,329 
    Preferred stock dividends 468   469   1,406   938 
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$55,898  $63,283  $179,901  $150,391 
    Per Share Data:       
    Basic Net Income Available to Common Stockholders$0.95  $1.08  $3.04  $2.63 
    Diluted Net Income Available to Common Stockholders$0.94  $1.08  $3.03  $2.62 
    Cash Dividends Paid to Common Stockholders$0.34  $0.32  $1.00  $0.93 
    Average Diluted Common Shares Outstanding (in thousands) 59,503   59,339   59,465   57,468 


    FINANCIAL HIGHLIGHTS       
    (Dollars in thousands)Three Months Ended Nine Months Ended
     September 30, September 30,
      2023   2022   2023   2022 
    NET CHARGE-OFFS (RECOVERIES)$20,365  $(427) $22,495  $(751)
            
    AVERAGE BALANCES:       
    Total Assets$18,152,239  $17,770,623  $18,115,504  $17,012,930 
    Total Loans 12,287,632   11,488,203   12,264,787   10,647,950 
    Total Earning Assets 16,947,669   16,508,914   16,913,965   15,744,040 
    Total Deposits 14,735,592   14,577,532   14,627,448   14,074,696 
    Total Stockholders' Equity 2,154,232   2,018,156   2,126,005   1,977,299 
            
    FINANCIAL RATIOS:       
    Return on Average Assets 1.24%  1.43%  1.33%  1.19%
    Return on Average Stockholders' Equity 10.38   12.54   11.28   10.14 
    Return on Tangible Common Stockholders' Equity 16.54   20.85   18.10   16.22 
    Average Earning Assets to Average Assets 93.36   92.90   93.37   92.54 
    Allowance for Credit Losses - Loans as % of Total Loans 1.67   1.94   1.67   1.94 
    Net Charge-offs as % of Average Loans (Annualized) 0.66   (0.01)  0.24   (0.01)
    Average Stockholders' Equity to Average Assets 11.87   11.36   11.74   11.62 
    Tax Equivalent Yield on Average Earning Assets 5.55   4.11   5.32   3.66 
    Interest Expense/Average Earning Assets 2.26   0.56   1.90   0.36 
    Net Interest Margin (FTE) on Average Earning Assets 3.29   3.55   3.42   3.30 
    Efficiency Ratio 53.91   53.34   52.60   54.95 
    Tangible Common Book Value Per Share$22.43  $19.26  $22.43  $19.26 


    NONPERFORMING ASSETS         
    (Dollars In Thousands)September 30, June 30, March 31, December 31, September 30,
      2023   2023   2023   2022   2022 
    Nonaccrual Loans$53,102  $69,240  $46,576  $42,324  $43,508 
    Troubled Debt Restructures (TDR) —   —   —   224   195 
    Nonperforming Loans (NPL) 53,102   69,240   46,576   42,548   43,703 
    Other Real Estate Owned and Repossessions 6,480   7,685   7,777   6,431   6,454 
    Nonperforming Assets (NPA) 59,582   76,925   54,353   48,979   50,157 
    90+ Days Delinquent 89   428   7,032   1,737   764 
    NPAs & 90 Day Delinquent$59,671  $77,353  $61,385  $50,716  $50,921 
              
    Allowance for Credit Losses - Loans$205,782  $221,147  $223,052  $223,277  $226,702 
    Quarterly Net Charge-offs (Recoveries) 20,365   1,905   225   2,674   (427)
    NPAs / Actual Assets % 0.33%  0.43%  0.30%  0.27%  0.28%
    NPAs & 90 Day / Actual Assets % 0.33%  0.43%  0.34%  0.28%  0.29%
    NPAs / Actual Loans and OREO % 0.48%  0.63%  0.44%  0.41%  0.43%
    Allowance for Credit Losses - Loans / Actual Loans (%) 1.67%  1.80%  1.82%  1.86%  1.94%
    Net Charge-offs (Recoveries) as % of Average Loans (Annualized) 0.66%  0.06%  0.01%  0.12%  (0.01)%


    CONSOLIDATED BALANCE SHEETS         
    (Dollars In Thousands)September 30, June 30, March 31, December 31, September 30,
      2023   2023   2023   2022   2022 
    ASSETS         
    Cash and due from banks$125,173  $108,975  $125,818  $122,594  $119,532 
    Interest-bearing deposits 348,639   219,480   352,695   126,061   179,593 
    Investment securities, net of allowance for credit losses 3,713,724   3,891,491   4,057,389   4,263,788   4,294,768 
    Loans held for sale 30,972   27,297   9,408   9,094   25,394 
    Loans 12,271,422   12,270,233   12,241,461   12,003,894   11,650,002 
    Less: Allowance for credit losses - loans (205,782)  (221,147)  (223,052)  (223,277)  (226,702)
    Net loans 12,065,640   12,049,086   12,018,409   11,780,617   11,423,300 
    Premises and equipment 132,441   114,402   115,857   117,118   116,306 
    Federal Home Loan Bank stock 41,797   41,842   41,878   38,525   38,056 
    Interest receivable 90,011   89,784   85,515   85,070   71,605 
    Goodwill and other intangibles 741,283   743,465   745,647   747,844   750,713 
    Cash surrender value of life insurance 306,106   307,020   309,090   308,311   306,932 
    Other real estate owned 6,480   7,685   7,777   6,431   6,454 
    Tax asset, deferred and receivable 135,521   113,724   103,070   111,222   142,110 
    Other assets 258,861   254,161   206,355   221,631   244,222 
    TOTAL ASSETS$17,996,648  $17,968,412  $18,178,908  $17,938,306  $17,718,985 
    LIABILITIES         
    Deposits:         
    Noninterest-bearing$2,554,984  $2,636,017  $2,964,355  $3,173,417  $3,356,651 
    Interest-bearing 12,091,592   11,945,138   11,738,932   11,209,328   11,078,174 
    Total Deposits 14,646,576   14,581,155   14,703,287   14,382,745   14,434,825 
    Borrowings:         
    Federal funds purchased —   —   20   171,560   185,000 
    Securities sold under repurchase agreements 152,537   152,472   179,067   167,413   194,482 
    Federal Home Loan Bank advances 713,384   723,480   823,577   823,674   643,769 
    Subordinated debentures and other borrowings 158,665   151,325   151,312   151,298   151,301 
    Total Borrowings 1,024,586   1,027,277   1,153,976   1,313,945   1,174,552 
    Interest payable 16,473   13,595   11,979   7,530   4,971 
    Other liabilities 216,369   200,820   187,218   199,316   197,971 
    Total Liabilities 15,904,004   15,822,847   16,056,460   15,903,536   15,812,319 
    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 7,425   7,412   7,407   7,396   7,393 
    Additional paid-in capital 1,234,402   1,233,593   1,231,532   1,228,626   1,226,695 
    Retained earnings 1,132,962   1,097,399   1,057,298   1,012,774   961,542 
    Accumulated other comprehensive loss (307,270)  (217,964)  (198,914)  (239,151)  (314,089)
    Total Stockholders' Equity 2,092,644   2,145,565   2,122,448   2,034,770   1,906,666 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$17,996,648  $17,968,412  $18,178,908  $17,938,306  $17,718,985 
              


    CONSOLIDATED STATEMENTS OF INCOME         
    (Dollars In Thousands, Except Per Share Amounts)September 30, June 30, March 31, December 31, September 30,
      2023   2023   2023   2022   2022 
    INTEREST INCOME         
    Loans receivable:         
    Taxable$191,705  $186,256  $172,353  $156,102  $128,504 
    Tax-exempt 8,288   7,760   7,709   6,930   6,500 
    Investment securities:         
    Taxable 8,590   8,886   9,087   9,417   10,055 
    Tax-exempt 13,947   14,279   16,070   17,033   17,261 
    Deposits with financial institutions 5,884   3,164   637   959   704 
    Federal Home Loan Bank stock 719   1,020   542   541   314 
    Total Interest Income 229,133   221,365   206,398   190,982   163,338 
    INTEREST EXPENSE         
    Deposits 85,551   73,201   50,685   33,516   16,644 
    Federal funds purchased —   123   1,297   808   418 
    Securities sold under repurchase agreements 797   979   848   541   372 
    Federal Home Loan Bank advances 6,896   6,815   7,064   4,932   3,493 
    Subordinated debentures and other borrowings 2,506   2,412   2,385   2,229   2,105 
    Total Interest Expense 95,750   83,530   62,279   42,026   23,032 
    NET INTEREST INCOME 133,383   137,835   144,119   148,956   140,306 
    Provision for credit losses 2,000   —   —   —   — 
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 131,383   137,835   144,119   148,956   140,306 
    NONINTEREST INCOME         
    Service charges on deposit accounts 7,975   7,813   7,359   7,097   7,165 
    Fiduciary and wealth management fees 7,394   7,397   7,862   7,501   7,221 
    Card payment fees 4,716   4,537   5,172   4,533   4,776 
    Net gains and fees on sales of loans 5,517   3,632   2,399   2,087   2,543 
    Derivative hedge fees 516   672   1,148   326   700 
    Other customer fees 384   742   517   362   501 
    Earnings on cash surrender value of life insurance 1,761   2,096   1,288   1,515   6,655 
    Net realized gains (losses) on sales of available for sale securities (1,650)  (1,392)  (1,571)  57   481 
    Other income (loss) 1,229   822   823   672   (425)
    Total Noninterest Income 27,842   26,319   24,997   24,150   29,617 
    NONINTEREST EXPENSES         
    Salaries and employee benefits 55,566   54,753   57,459   52,331   56,002 
    Net occupancy 6,837   6,674   7,259   6,638   6,738 
    Equipment 5,698   6,181   6,126   6,148   5,997 
    Marketing 2,369   1,102   1,309   3,157   2,401 
    Outside data processing fees 6,573   6,604   6,113   5,611   6,827 
    Printing and office supplies 333   434   383   390   472 
    Intangible asset amortization 2,182   2,182   2,197   2,303   2,303 
    FDIC assessments 2,981   2,740   1,396   2,295   2,824 
    Other real estate owned and foreclosure expenses 677   916   (18)  197   328 
    Professional and other outside services 3,833   4,660   3,698   3,961   4,461 
    Other expenses 6,805   6,347   7,798   6,668   8,025 
    Total Noninterest Expenses 93,854   92,593   93,720   89,699   96,378 
    INCOME BEFORE INCOME TAX 65,371   71,561   75,396   83,407   73,545 
    Income tax expense 9,005   10,699   11,317   12,647   9,793 
    NET INCOME 56,366   60,862   64,079   70,760   63,752 
    Preferred stock dividends 468   469   469   468   469 
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$55,898  $60,393  $63,610  $70,292  $63,283 
    Per Share Data:         
    Basic Net Income Available to Common Stockholders$0.95  $1.02  $1.07  $1.20  $1.08 
    Diluted Net Income Available to Common Stockholders$0.94  $1.02  $1.07  $1.19  $1.08 
    Cash Dividends Paid to Common Stockholders$0.34  $0.34  $0.32  $0.32  $0.32 
    Average Diluted Common Shares Outstanding (in thousands) 59,503   59,448   59,441   59,384   59,339 
    FINANCIAL RATIOS:         
    Return on Average Assets 1.24%  1.34%  1.42%  1.59%  1.43%
    Return on Average Stockholders' Equity 10.38   11.29   12.21   14.36   12.54 
    Return on Tangible Common Stockholders' Equity 16.54   18.04   19.82   24.21   20.85 
    Average Earning Assets to Average Assets 93.36   93.38   93.35   93.66   92.90 
    Allowance for Credit Losses - Loans as % of Total Loans 1.67   1.80   1.82   1.86   1.94 
    Net Charge-offs (Recoveries) as % of Average Loans (Annualized) 0.66   0.06   0.01   0.12   (0.01)
    Average Stockholders' Equity to Average Assets 11.87   11.78   11.56   10.98   11.36 
    Tax Equivalent Yield on Average Earning Assets 5.55   5.36   5.06   4.73   4.11 
    Interest Expense/Average Earning Assets 2.26   1.97   1.48   1.01   0.56 
    Net Interest Margin (FTE) on Average Earning Assets 3.29   3.39   3.58   3.72   3.55 
    Efficiency Ratio 53.91   52.21   51.72   48.60   53.34 
    Tangible Common Book Value Per Share$22.43  $23.34  $22.93  $21.45  $19.26 


    LOANS         
    (Dollars In Thousands)September 30, June 30, March 31, December 31, September 30,
      2023   2023   2023   2022   2022 
    Commercial and industrial loans$3,490,953  $3,531,395  $3,502,204  $3,437,126  $3,330,529 
    Agricultural land, production and other loans to farmers 233,838   230,003   219,598   241,793   221,954 
    Real estate loans:         
    Construction 1,022,261   949,918   960,979   835,582   828,923 
    Commercial real estate, non-owner occupied 2,360,596   2,379,819   2,375,410   2,407,475   2,299,272 
    Commercial real estate, owner occupied 1,153,707   1,179,739   1,244,117   1,246,528   1,268,567 
    Residential 2,257,385   2,248,473   2,185,943   2,096,655   1,990,668 
    Home equity 609,352   614,366   621,354   630,632   621,619 
    Individuals' loans for household and other personal expenditures 176,523   172,896   172,389   175,211   173,225 
    Public finance and other commercial loans 966,807   963,624   959,467   932,892   915,245 
    Loans 12,271,422   12,270,233   12,241,461   12,003,894   11,650,002 
    Allowance for credit losses - loans (205,782)  (221,147)  (223,052)  (223,277)  (226,702)
    NET LOANS$12,065,640  $12,049,086  $12,018,409  $11,780,617  $11,423,300 


    DEPOSITS         
    (Dollars In Thousands)September 30, June 30, March 31, December 31, September 30,
      2023   2023   2023   2022   2022 
    Demand deposits$7,952,040  $8,045,455  $8,422,387  $8,448,797  $8,534,950 
    Savings deposits 4,572,162   4,530,255   4,499,487   4,657,140   5,054,490 
    Certificates and other time deposits of $100,000 or more 1,280,607   1,160,303   1,040,379   742,539   443,588 
    Other certificates and time deposits 761,196   680,965   574,886   468,712   381,365 
    Brokered certificates of deposits 80,571   164,177   166,148   65,557   20,432 
    TOTAL DEPOSITS$14,646,576  $14,581,155  $14,703,287  $14,382,745  $14,434,825 


    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS      
    (Dollars in Thousands)           
     For the Three Months Ended
     September 30, 2023 September 30, 2022
     Average Balance Interest
     Income /
    Expense    		 Average
    Rate    		 Average Balance Interest
     Income /
    Expense    		 Average
    Rate
    ASSETS           
    Interest-bearing deposits$502,967  $5,884  4.68% $190,434  $704  1.48%
    Federal Home Loan Bank stock 41,826   719  6.88   38,089   314  3.30 
    Investment Securities: (1)           
    Taxable 1,817,219   8,590  1.89   2,091,608   10,055  1.92 
    Tax-exempt (2) 2,298,025   17,655  3.07   2,700,580   21,849  3.24 
    Total Investment Securities 4,115,244   26,245  2.55   4,792,188   31,904  2.66 
    Loans held for sale 24,227   386  6.37   20,039   266  5.74 
    Loans: (3)           
    Commercial 8,456,527   153,993  7.28   8,177,895   103,227  5.05 
    Real estate mortgage 2,079,067   21,618  4.16   1,666,173   14,701  3.53 
    Installment 827,318   15,708  7.59   813,112   10,310  5.07 
    Tax-exempt (2) 900,493   10,491  4.66   810,984   8,228  4.06 
    Total Loans 12,287,632   202,196  6.58   11,488,203   136,732  4.76 
    Total Earning Assets 16,947,669   235,044  5.55%  16,508,914   169,654  4.11%
    Total Non-Earning Assets 1,204,570       1,261,709     
    TOTAL ASSETS$18,152,239      $17,770,623     
    LIABILITIES           
    Interest-Bearing Deposits:           
    Interest-bearing deposits$5,425,829  $37,780  2.79% $5,184,087  $8,723  0.67%
    Money market deposits 2,923,798   23,607  3.23   3,096,423   5,390  0.70 
    Savings deposits 1,641,338   3,844  0.94   1,978,596   1,538  0.31 
    Certificates and other time deposits 2,106,910   20,320  3.86   857,033   993  0.46 
    Total Interest-Bearing Deposits 12,097,875   85,551  2.83   11,116,139   16,644  0.60 
    Borrowings 1,032,180   10,199  3.95   1,013,893   6,388  2.52 
    Total Interest-Bearing Liabilities 13,130,055   95,750  2.92   12,130,032   23,032  0.76 
    Noninterest-bearing deposits 2,637,717       3,461,393     
    Other liabilities 230,235       161,042     
    Total Liabilities 15,998,007       15,752,467     
    STOCKHOLDERS' EQUITY 2,154,232       2,018,156     
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,152,239   95,750    $17,770,623   23,032   
    Net Interest Income (FTE)  $139,294      $146,622   
    Net Interest Spread (FTE) (4)    2.63%     3.35%
                
    Net Interest Margin (FTE):           
    Interest Income (FTE) / Average Earning Assets    5.55%     4.11%
    Interest Expense / Average Earning Assets    2.26%     0.56%
    Net Interest Margin (FTE) (5)    3.29%     3.55%
                
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2023 and 2022. These totals equal $5,911 and $6.316 for the three months ended September 30, 2023 and 2022, respectively.
    (3) Non accruing loans have been included in the average balances.
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


                
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS      
    (Dollars in Thousands)           
     For the Nine Months Ended
     September 30, 2023 September 30, 2022
     Average Balance Interest
     Income /
    Expense    		 Average
    Rate    		 Average Balance Interest
     Income /
    Expense    		 Average
    Rate
    Assets:           
    Interest-bearing deposits$340,887  $9,685  3.79% $333,818  $1,544  0.62%
    Federal Home Loan Bank stock 41,160   2,281  7.39   34,742   635  2.44 
    Investment Securities: (1)           
    Taxable 1,872,267   26,563  1.89   2,079,983   28,937  1.85 
    Tax-exempt (2) 2,394,864   56,071  3.12   2,647,547   63,732  3.21 
    Total Investment Securities 4,267,131   82,634  2.58   4,727,530   92,669  2.61 
    Loans held for sale 22,398   1,046  6.23   19,020   622  4.36 
    Loans: (3)           
    Commercial 8,515,148   444,422  6.96   7,731,591   253,770  4.38 
    Real estate mortgage 2,008,852   60,354  4.01   1,350,969   35,199  3.47 
    Installment 833,133   44,492  7.12   765,960   24,775  4.31 
    Tax-exempt (2) 885,256   30,072  4.53   780,410   23,030  3.93 
    Total Loans 12,264,787   580,386  6.31   10,647,950   337,396  4.22 
    Total Earning Assets 16,913,965   674,986  5.32%  15,744,040   432,244  3.66%
    Total Non-Earning Assets 1,201,539       1,268,890     
    Total Assets$18,115,504      $17,012,930     
    Liabilities:           
    Interest-Bearing deposits:           
    Interest-bearing deposits$5,412,482  $97,016  2.39% $5,195,249  $15,699  0.40%
    Money market deposits 2,812,891   55,868  2.65   2,880,603   8,392  0.39 
    Savings deposits 1,730,110   10,693  0.82   1,937,761   2,895  0.20 
    Certificates and other time deposits 1,821,408   45,860  3.36   828,158   2,437  0.39 
    Total Interest-Bearing Deposits 11,776,891   209,437  2.37   10,841,771   29,423  0.36 
    Borrowings 1,144,368   32,122  3.74   817,894   13,354  2.18 
    Total Interest-Bearing Liabilities 12,921,259   241,559  2.49   11,659,665   42,777  0.49 
    Noninterest-bearing deposits 2,850,557       3,232,925     
    Other liabilities 217,683       143,041     
    Total Liabilities 15,989,499       15,035,631     
    Stockholders' Equity 2,126,005       1,977,299     
    Total Liabilities and Stockholders' Equity$18,115,504   241,559    $17,012,930   42,777   
    Net Interest Income (FTE)  $433,427      $389,467   
    Net Interest Spread (FTE) (4)    2.83%     3.17%
                
    Net Interest Margin (FTE):           
    Interest Income (FTE) / Average Earning Assets    5.32%     3.66%
    Interest Expense / Average Earning Assets    1.90%     0.36%
    Net Interest Margin (FTE) (5)    3.42%     3.30%
                
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2023 and 2022. These totals equal $18,090 and $18,220 for the nine months ended September 30, 2023 and 2022, respectively.
    (3) Non accruing loans have been included in the average balances.           
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


    ADJUSTED EPS EXCLUDING PAYCHECK PROTECTION PROGRAM ("PPP") AND ACQUISITION-RELATED EXPENSES - NON-GAAP
    (Dollars In Thousands, Except Per Share Amounts)Three Months Ended Nine Months Ended
     September 30, June 30, March 31, December 31, September 30, September 30, September 30,
      2023   2023   2023   2022   2022   2023   2022 
    Net Income Available to Common Stockholders - GAAP$55,898  $60,393  $63,610  $70,292  $63,283  $179,901  $150,391 
    Adjustments:             
    PPP loan income (8)  (9)  (25)  (109)  (323)  (42)  (3,098)
    Acquisition-related expenses —   —   —   413   3,417   —   16,118 
    Acquisition-related provision expense —   —   —   —   —   —   16,755 
    Tax on adjustment 2   2   6   (75)  (759)  10   (7,301)
    Adjusted Net Income Available to Common Stockholders - Non-GAAP$55,892  $60,386  $63,591  $70,521  $65,618  $179,869  $172,865 
                  
    Average Diluted Common Shares Outstanding (in thousands) 59,503   59,448   59,441   59,384   59,339   59,465   57,468 
                  
    Diluted Earnings Per Common Share - GAAP$0.94  $1.02  $1.07  $1.19  $1.08  $3.03  $2.62 
    Adjustments:             
    PPP loan income —   —   —   (0.01)  —   —   (0.05)
    Acquisition-related expenses —   —   —   0.01   0.05   —   0.27 
    Acquisition-related provision expense —   —   —   —   —   —   0.30 
    Tax on adjustment —   —   —   —   (0.01)  —   (0.13)
    Adjusted Diluted Earnings Per Common Share - Non-GAAP$0.94  $1.02  $1.07  $1.19  $1.12  $3.03  $3.01 


    RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
    (Dollars In Thousands)Three Months Ended Nine Months Ended
     September 30, June 30, March 31, December 31, September 30, September 30, September 30,
      2023   2023   2023   2022   2022   2023   2022 
    Total Average Stockholders' Equity (GAAP)$2,154,232  $2,139,877  $2,083,125  $1,958,041  $2,018,156  $2,126,005  $1,977,299 
    Less: Average Preferred Stock (25,125)  (25,125)  (25,125)  (25,125)  (25,125)  (25,125)  (16,792)
    Less: Average Intangible Assets, Net of Tax (735,787)  (737,489)  (739,190)  (741,632)  (744,069)  (737,476)  (685,707)
    Average Tangible Common Equity, Net of Tax (Non-GAAP)$1,393,320  $1,377,263  $1,318,810  $1,191,284  $1,248,962  $1,363,404  $1,274,800 
                  
    Net Income Available to Common Stockholders (GAAP)$55,898  $60,393  $63,610  $70,292  $63,283  $179,901  $150,391 
    Plus: Intangible Asset Amortization, Net of Tax 1,724   1,724   1,734   1,819   1,819   5,182   4,718 
    Tangible Net Income (Non-GAAP)$57,622  $62,117  $65,344  $72,111  $65,102  $185,083  $155,109 
                  
    Return on Tangible Common Equity (Non-GAAP) 16.54%  18.04%  19.82%  24.21%  20.85%  18.10%  16.22%


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