First Merchants Corporation Announces First Quarter 2023 Earnings Per Share

First Merchants Corporation (NASDAQ - FRME)

First Quarter 2023 Highlights:

Net income available to common stockholders was $63.6 million for the first quarter and diluted earnings per common share totaled $1.07, compared to $48.6 million and $.91 in the first quarter of 2022, and $70.3 million and $1.19 in the fourth quarter of 2022.
Adjusted net income available to common stockholders1 for the first quarter was $63.6 million and adjusted diluted earnings per common share1 totaled $1.07, compared to $47.3 million and $.88 in the first quarter of 2022, and $70.5 million and $1.19 in the fourth quarter of 2022.
Strong liquidity and capital with Common Equity Tier 1 Capital Ratio of 10.82%.
Deposit growth of $320.5 million, or 8.9% annualized on a linked quarter basis.
Total loans grew $237.9 million, or 7.9% annualized on a linked quarter basis.
Non-accrual loans totaled $46.6 million compared to $42.3 million on a linked quarter basis.
The efficiency ratio totaled 51.72% for the quarter.

Mark Hardwick, Chief Executive Officer, stated, “Given the disruption in the banking industry, we are pleased to share a quarter-end balance sheet that reflects a very safe and sound institution with continued growth. Loans, Deposits, on-hand liquidity and capital all improved over year-end. We prioritized enhancing our liquidity position during the quarter while also meeting the demands of the customer base. Our team of bankers have been true brand ambassadors during the quarter by showing poise and confidence throughout the communities we serve. We remain focused on delivering our plan for the year.”

First Quarter Financial Results:

First Merchants Corporation (the “Corporation) has reported first quarter 2023 net income available to common stockholders of $63.6 million compared to $48.6 million during the same period in 2022. Earnings per share for the period totaled $1.07 per share compared to the first quarter of 2022 result of $.91 per share.

Total assets equaled $18.2 billion as of quarter-end and loans totaled $12.3 billion. Total loans increased $2.9 billion during the past twelve months. The acquisition of Level One contributed $1.6 billion of loans. Excluding acquired loans and PPP forgiveness, the Corporation experienced organic loan growth of $1.3 billion, or 14.4 percent, during the past twelve months. This was offset by the forgiveness of PPP loans of $88.5 million. Total loans grew organically $237.9 or 7.9% annualized on a linked quarter basis.

Investments, totaling $4.1 billion, decreased $431.9 million, or 9.6 percent, during the last twelve months and decreased $206.4 million or 19.4% annualized on a linked quarter basis.

Total deposits equaled $14.7 billion as of quarter-end and increased by $1.8 billion over the past twelve months. The acquisition of Level One contributed $1.9 billion in deposits resulting in an organic deposit decline of $133.5 million or 1.0%. Total deposits grew $320.5 million or 8.9% annualized on a linked quarter basis. The loan to deposit ratio for the current quarter ended at 83.3 percent.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $223.1 million as of quarter-end, or 1.82 percent of total loans, an increase of $27.1 million over prior year due to the acquisition of Level One. Loan charge offs, net of recoveries, for the quarter totaled $0.2 million. No provision expense was recorded during the quarter or during the last twelve months other than CECL Day 1 expense of $16.8 million due to the acquisition of Level One. Non-performing assets to total assets were 0.30% for the first quarter of 2023, a decrease of two basis points compared to 0.32% in the first quarter of 2022.

Net-interest income, totaling $144.1 million for the quarter, declined $4.9 million, or 3.3 percent, compared to prior quarter and increased $41.8 million, or 40.9 percent compared to the first quarter of 2022. Stated net-interest margin on a tax equivalent basis, totaling 3.58 percent, declined by 14 basis points compared to the fourth quarter of 2022 and increased 55 basis points compared to the first quarter of 2022. Net-interest margin excluding the impact of fair value accretion and PPP loans totaled 3.52%, a decrease of 13 basis points compared to 3.65% for the fourth quarter of 2022 and an increase of 55 basis points from the first quarter of 2022. During the quarter, increased deposit costs and mix offset the increase in earning asset yields causing a reduction of margin of eight basis points. The lower day count in the quarter caused a decline of five basis points.

Non-interest income, totaling $25.0 million for the quarter, increased $0.9 million compared to the fourth quarter of 2022 and decreased $0.9 million from the first quarter of 2022. The increase over the fourth quarter of 2022 was driven primarily by higher card payment fees, derivative hedge fees, offset by losses on the sale of available for sale securities.

Non-interest expense totaled $93.7 million for the quarter, an increase of $4.0 million from the fourth quarter of 2022. The increase was primarily due to higher salaries, incentives and employee benefits offset by lower marketing expenses and FDIC assessments. A one-time FDIC assessment credit of approximately $2.0 million was recorded lowering overall FDIC assessment cost for the quarter. Additionally, gains on the sales of properties were recorded in the fourth quarter and reflected in Other Expenses that did not recur in the current quarter, causing a negative quarter-over quarter variance.

The Corporation’s total risk-based capital ratio equaled 13.23 percent, common equity tier 1 capital ratio equaled 10.82 percent, and the tangible common equity ratio totaled 7.75 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

1 See “Non-GAAP Financial Information” for reconciliation

CONFERENCE CALL

First Merchants Corporation will conduct a first quarter earnings conference call and web cast at 10:30 a.m. (ET) on Tuesday, April 25, 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/BI257d3b7683714a4382f8765266a99667)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/trq9ekv4) during the time of the call. A replay of the webcast will be available until April 25, 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.

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)	March 31,
		2023			2022
ASSETS
Cash and due from banks	$	125,818		$	148,277
Interest-bearing deposits		352,695			395,262
Investment securities, net of allowance for credit losses of $245,000 and $245,000		4,057,389			4,489,263
Loans held for sale		9,408			3,938
Loans		12,241,461			9,356,241
Less: Allowance for credit losses - loans		(223,052	)		(195,984	)
Net loans		12,018,409			9,160,257
Premises and equipment		115,857			105,883
Federal Home Loan Bank stock		41,878			26,422
Interest receivable		85,515			56,081
Goodwill and other intangibles		745,647			569,494
Cash surrender value of life insurance		309,090			291,881
Other real estate owned		7,777			6,271
Tax asset, deferred and receivable		103,070			73,422
Other assets		206,355			138,807
TOTAL ASSETS	$	18,178,908		$	15,465,258
LIABILITIES
Deposits:
Noninterest-bearing	$	2,964,355		$	2,745,235
Interest-bearing		11,738,932			10,160,718
Total Deposits		14,703,287			12,905,953
Borrowings:
Federal funds purchased		20			—
Securities sold under repurchase agreements		179,067			169,697
Federal Home Loan Bank advances		823,577			308,960
Subordinated debentures and other borrowings		151,312			118,677
Total Borrowings		1,153,976			597,334
Interest payable		11,979			3,589
Other liabilities		187,218			150,749
Total Liabilities		16,056,460			13,657,625
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			—
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 59,257,051 and 53,424,823 shares		7,407			6,678
Additional paid-in capital		1,231,532			987,404
Retained earnings		1,057,298			897,818
Accumulated other comprehensive loss		(198,914	)		(84,392	)
Total Stockholders' Equity		2,122,448			1,807,633
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,178,908		$	15,465,258

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
(Dollars In Thousands, Except Per Share Amounts)	March 31,
		2023			2022
INTEREST INCOME
Loans receivable:
Taxable	$	172,353		$	79,075
Tax-exempt		7,709			5,704
Investment securities:
Taxable		9,087			8,510
Tax-exempt		16,070			15,875
Deposits with financial institutions		637			230
Federal Home Loan Bank stock		542			146
Total Interest Income		206,398			109,540
INTEREST EXPENSE
Deposits		50,685			4,294
Federal funds purchased		1,297			—
Securities sold under repurchase agreements		848			89
Federal Home Loan Bank advances		7,064			1,218
Subordinated debentures and other borrowings		2,385			1,659
Total Interest Expense		62,279			7,260
NET INTEREST INCOME		144,119			102,280
Provision for credit losses - loans		—			—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		144,119			102,280
NON-INTEREST INCOME
Service charges on deposit accounts		7,359			6,419
Fiduciary and wealth management fees		7,862			7,332
Card payment fees		5,172			5,723
Net gains and fees on sales of loans		2,399			2,199
Derivative hedge fees		1,148			918
Other customer fees		517			410
Earnings on cash surrender value of life insurance		1,288			1,696
Net realized gains (losses) on sales of available for sale securities		(1,571	)		566
Other income		823			634
Total Non-Interest Income		24,997			25,897
NON-INTEREST EXPENSES
Salaries and employee benefits		57,459			42,519
Net occupancy		7,259			6,187
Equipment		6,126			5,080
Marketing		1,309			736
Outside data processing fees		6,113			4,363
Printing and office supplies		383			345
Intangible asset amortization		2,197			1,366
FDIC assessments		1,396			2,192
Other real estate owned and foreclosure expenses		(18	)		564
Professional and other outside services		3,698			2,953
Other expenses		7,798			6,020
Total Non-Interest Expenses		93,720			72,325
INCOME BEFORE INCOME TAX		75,396			55,852
Income tax expense		11,317			7,266
NET INCOME		64,079			48,586
Preferred stock dividends		469			—
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	63,610		$	48,586
Per Share Data:
Basic Net Income Available to Common Stockholders	$	1.07		$	0.91
Diluted Net Income Available to Common Stockholders	$	1.07		$	0.91
Cash Dividends Paid to Common Stockholders	$	0.32		$	0.29
Average Diluted Common Shares Outstanding (in thousands)		59,441			53,616

FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended
	March 31,
		2023			2022
NET CHARGE-OFFS (RECOVERIES)	$	225		$	(587	)

AVERAGE BALANCES:
Total Assets	$	18,022,195		$	15,464,605
Total Loans		12,135,384			9,255,928
Total Earning Assets		16,824,407			14,262,777
Total Deposits		14,423,409			12,817,690
Total Stockholders' Equity		2,083,125			1,891,223

FINANCIAL RATIOS:
Return on Average Assets		1.42	%		1.26	%
Return on Average Stockholders' Equity		12.21			10.28
Return on Tangible Common Stockholders' Equity		19.82			14.99
Average Earning Assets to Average Assets		93.35			92.23
Allowance for Credit Losses - Loans as % of Total Loans		1.82			2.09
Net Charge-offs as % of Average Loans (Annualized)		0.01			(0.03	)
Average Stockholders' Equity to Average Assets		11.56			12.23
Tax Equivalent Yield on Average Earning Assets		5.06			3.23
Interest Expense/Average Earning Assets		1.48			0.20
Net Interest Margin (FTE) on Average Earning Assets		3.58			3.03
Efficiency Ratio		51.72			52.79
Tangible Common Book Value Per Share	$	22.93		$	23.26

NON-PERFORMING ASSETS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
		2023			2022			2022			2022			2022
Non-Accrual Loans	$	46,576		$	42,324		$	43,508		$	45,970		$	42,698
Troubled Debt Restructures (TDR)		—			224			195			233			141
Non-Performing Loans (NPL)		46,576			42,548			43,703			46,203			42,839
Other Real Estate Owned and Repossessions		7,777			6,431			6,454			6,521			6,271
Non-Performing Assets (NPA)		54,353			48,979			50,157			52,724			49,110
90+ Days Delinquent		7,032			1,737			764			592			2,085
NPAs & 90 Day Delinquent	$	61,385		$	50,716		$	50,921		$	53,316		$	51,195

Allowance for Credit Losses - Loans	$	223,052		$	223,277		$	226,702		$	226,275		$	195,984
Quarterly Net Charge-offs (Recoveries)		225			2,674			(427	)		263			(587	)
NPAs / Actual Assets %		0.30	%		0.27	%		0.28	%		0.30	%		0.32	%
NPAs & 90 Day / Actual Assets %		0.34	%		0.28	%		0.29	%		0.30	%		0.33	%
NPAs / Actual Loans and OREO %		0.44	%		0.41	%		0.43	%		0.46	%		0.52	%
Allowance for Credit Losses - Loans / Actual Loans (%)		1.82	%		1.86	%		1.94	%		1.98	%		2.09	%
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)		0.01	%		0.12	%		(0.01	)%		0.01	%		(0.03	)%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
		2023			2022			2022			2022			2022
ASSETS
Cash and due from banks	$	125,818		$	122,594		$	119,532		$	212,559		$	148,277
Interest-bearing deposits		352,695			126,061			179,593			136,702			395,262
Investment securities, net of allowance for credit losses		4,057,389			4,263,788			4,294,768			4,630,030			4,489,263
Loans held for sale		9,408			9,094			25,394			9,060			3,938
Loans		12,241,461			12,003,894			11,650,002			11,397,417			9,356,241
Less: Allowance for credit losses - loans		(223,052	)		(223,277	)		(226,702	)		(226,275	)		(195,984	)
Net loans		12,018,409			11,780,617			11,423,300			11,171,142			9,160,257
Premises and equipment		115,857			117,118			116,306			117,757			105,883
Federal Home Loan Bank stock		41,878			38,525			38,056			38,111			26,422
Interest receivable		85,515			85,070			71,605			68,728			56,081
Goodwill and other intangibles		745,647			747,844			750,713			753,649			569,494
Cash surrender value of life insurance		309,090			308,311			306,932			323,013			291,881
Other real estate owned		7,777			6,431			6,454			6,521			6,271
Tax asset, deferred and receivable		103,070			111,222			142,110			114,965			73,422
Other assets		206,355			221,631			244,222			198,255			138,807
TOTAL ASSETS	$	18,178,908		$	17,938,306		$	17,718,985		$	17,780,492		$	15,465,258
LIABILITIES
Deposits:
Noninterest-bearing	$	2,964,355		$	3,173,417		$	3,356,651		$	3,435,331		$	2,745,235
Interest-bearing		11,738,932			11,209,328			11,078,174			11,135,538			10,160,718
Total Deposits		14,703,287			14,382,745			14,434,825			14,570,869			12,905,953
Borrowings:
Federal funds purchased		20			171,560			185,000			100,000			—
Securities sold under repurchase agreements		179,067			167,413			194,482			186,468			169,697
Federal Home Loan Bank advances		823,577			823,674			643,769			598,865			308,960
Subordinated debentures and other borrowings		151,312			151,298			151,301			151,299			118,677
Total Borrowings		1,153,976			1,313,945			1,174,552			1,036,632			597,334
Interest payable		11,979			7,530			4,971			2,978			3,589
Other liabilities		187,218			199,316			197,971			192,372			150,749
Total Liabilities		16,056,460			15,903,536			15,812,319			15,802,851			13,657,625
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			—
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding		7,407			7,396			7,393			7,383			6,678
Additional paid-in capital		1,231,532			1,228,626			1,226,695			1,226,378			987,404
Retained earnings		1,057,298			1,012,774			961,542			917,311			897,818
Accumulated other comprehensive loss		(198,914	)		(239,151	)		(314,089	)		(198,556	)		(84,392	)
Total Stockholders' Equity		2,122,448			2,034,770			1,906,666			1,977,641			1,807,633
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,178,908		$	17,938,306		$	17,718,985		$	17,780,492		$	15,465,258

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	March			December 31,			September 30,			June 30,			March 31,
		2023			2022			2022			2022			2022
INTEREST INCOME
Loans receivable:
Taxable	$	172,353		$	156,102		$	128,504		$	106,787		$	79,075
Tax-exempt		7,709			6,930			6,500			5,990			5,704
Investment securities:
Taxable		9,087			9,417			10,055			10,372			8,510
Tax-exempt		16,070			17,033			17,261			17,212			15,875
Deposits with financial institutions		637			959			704			610			230
Federal Home Loan Bank stock		542			541			314			175			146
Total Interest Income		206,398			190,982			163,338			141,146			109,540
INTEREST EXPENSE
Deposits		50,685			33,516			16,644			8,485			4,294
Federal funds purchased		1,297			808			418			76			—
Securities sold under repurchase agreements		848			541			372			134			89
Federal Home Loan Bank advances		7,064			4,932			3,493			1,774			1,218
Subordinated debentures and other borrowings		2,385			2,229			2,105			2,016			1,659
Total Interest Expense		62,279			42,026			23,032			12,485			7,260
NET INTEREST INCOME		144,119			148,956			140,306			128,661			102,280
Provision for credit losses - loans		—			—			—			16,755			—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		144,119			148,956			140,306			111,906			102,280
NON-INTEREST INCOME
Service charges on deposit accounts		7,359			7,097			7,165			7,690			6,419
Fiduciary and wealth management fees		7,862			7,501			7,221			7,634			7,332
Card payment fees		5,172			4,533			4,776			5,175			5,723
Net gains and fees on sales of loans		2,399			2,087			2,543			3,226			2,199
Derivative hedge fees		1,148			326			700			1,444			918
Other customer fees		517			362			501			662			410
Earnings on cash surrender value of life insurance		1,288			1,515			6,655			1,308			1,696
Net realized gains (losses) on sales of available for sale securities		(1,571	)		57			481			90			566
Other income (loss)		823			672			(425	)		1,048			634
Total Non-Interest Income		24,997			24,150			29,617			28,277			25,897
NON-INTEREST EXPENSES
Salaries and employee benefits		57,459			52,331			56,002			56,041			42,519
Net occupancy		7,259			6,638			6,738			6,648			6,187
Equipment		6,126			6,148			5,997			6,720			5,080
Marketing		1,309			3,157			2,401			1,414			736
Outside data processing fees		6,113			5,611			6,827			4,881			4,363
Printing and office supplies		383			390			472			381			345
Intangible asset amortization		2,197			2,303			2,303			2,303			1,366
FDIC assessments		1,396			2,295			2,824			2,924			2,192
Other real estate owned and foreclosure expenses		(18	)		197			328			(266	)		564
Professional and other outside services		3,698			3,961			4,461			10,267			2,953
Other expenses		7,798			6,668			8,025			6,000			6,020
Total Non-Interest Expenses		93,720			89,699			96,378			97,313			72,325
INCOME BEFORE INCOME TAX		75,396			83,407			73,545			42,870			55,852
Income tax expense		11,317			12,647			9,793			3,879			7,266
NET INCOME		64,079			70,760			63,752			38,991			48,586
Preferred stock dividends		469			468			469			469			—
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	63,610		$	70,292		$	63,283		$	38,522		$	48,586
Per Share Data:
Basic Net Income Available to Common Stockholders	$	1.07		$	1.20		$	1.08		$	0.64		$	0.91
Diluted Net Income Available to Common Stockholders	$	1.07		$	1.19		$	1.08		$	0.63		$	0.91
Cash Dividends Paid to Common Stockholders	$	0.32		$	0.32		$	0.32		$	0.32		$	0.29
Average Diluted Common Shares Outstanding (in thousands)		59,441			59,384			59,339			59,308			53,616
FINANCIAL RATIOS:
Return on Average Assets		1.42	%		1.59	%		1.43	%		0.88	%		1.26	%
Return on Average Stockholders' Equity		12.21			14.36			12.54			7.62			10.28
Return on Tangible Common Stockholders' Equity		19.82			24.21			20.85			12.91			14.99
Average Earning Assets to Average Assets		93.35			93.66			92.90			92.45			92.23
Allowance for Credit Losses - Loans as % of Total Loans		1.82			1.86			1.94			1.98			2.09
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)		0.01			0.12			(0.01	)		0.01			(0.03	)
Average Stockholders' Equity to Average Assets		11.56			10.98			11.36			11.37			12.23
Tax Equivalent Yield on Average Earning Assets		5.06			4.73			4.11			3.58			3.23
Interest Expense/Average Earning Assets		1.48			1.01			0.56			0.30			0.20
Net Interest Margin (FTE) on Average Earning Assets		3.58			3.72			3.55			3.28			3.03
Efficiency Ratio		51.72			48.60			53.34			58.45			52.79
Tangible Common Book Value Per Share	$	22.93		$	21.45		$	19.26		$	20.45		$	23.26

LOANS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
		2023			2022			2022			2022			2022
Commercial and industrial loans	$	3,502,204		$	3,437,126		$	3,330,529		$	3,297,477		$	2,826,660
Agricultural land, production and other loans to farmers		219,598			241,793			221,954			214,904			209,077
Real estate loans:
Construction		960,979			835,582			828,923			745,983			552,975
Commercial real estate, non-owner occupied		2,375,410			2,407,475			2,299,272			2,423,185			2,073,197
Commercial real estate, owner occupied		1,244,117			1,246,528			1,268,567			1,264,563			974,521
Residential		2,185,943			2,096,655			1,990,668			1,813,297			1,226,695
Home equity		621,354			630,632			621,619			586,108			512,641
Individuals' loans for household and other personal expenditures		172,389			175,211			173,225			157,264			147,593
Public finance and other commercial loans		959,467			932,892			915,245			894,636			832,882
Loans		12,241,461			12,003,894			11,650,002			11,397,417			9,356,241
Allowance for credit losses - loans		(223,052	)		(223,277	)		(226,702	)		(226,275	)		(195,984	)
NET LOANS	$	12,018,409		$	11,780,617		$	11,423,300		$	11,171,142		$	9,160,257

DEPOSITS
(Dollars In Thousands)	March 31,		December 31,		September 30,		June 30,		March 31,
		2023		2022		2022		2022		2022
Demand deposits	$	8,422,387	$	8,448,797	$	8,534,950	$	8,785,889	$	7,806,033
Savings deposits		4,499,487		4,657,140		5,054,490		4,875,880		4,444,417
Certificates and other time deposits of $100,000 or more		1,040,379		742,539		443,588		436,942		252,033
Other certificates and time deposits		574,886		468,712		381,365		446,973		380,293
Brokered certificates of deposits		166,148		65,557		20,432		25,185		23,177
TOTAL DEPOSITS	$	14,703,287	$	14,382,745	$	14,434,825	$	14,570,869	$	12,905,953

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Three Months Ended
	March 31, 2023						March 31, 2022
	Average Balance		InterestIncome /Expense		AverageRate		Average Balance		InterestIncome /Expense		AverageRate
ASSETS
Interest-bearing deposits	$	172,814	$	637	1.47	%	$	484,626	$	230	0.19	%
Federal Home Loan Bank stock		39,759		542	5.45			27,914		146	2.09
Investment securities:(1)
Taxable		1,924,079		9,087	1.89			1,957,675		8,510	1.74
Tax-exempt(2)		2,552,371		20,342	3.19			2,536,634		20,095	3.17
Total Investment Securities		4,476,450		29,429	2.63			4,494,309		28,605	2.55
Loans held for sale		23,538		360	6.12			4,352		40	3.68
Loans:(3)
Commercial		8,483,879		139,661	6.58			6,868,438		64,679	3.77
Real estate mortgage		1,914,640		18,391	3.84			924,268		7,840	3.39
Installment		840,450		13,941	6.64			711,038		6,516	3.67
Tax-exempt(2)		872,877		9,758	4.47			747,832		7,220	3.86
Total Loans		12,135,384		182,111	6.00			9,255,928		86,295	3.73
Total Earning Assets		16,824,407		212,719	5.06	%		14,262,777		115,276	3.23	%
Total Non-Earning Assets		1,197,788						1,201,828
TOTAL ASSETS	$	18,022,195					$	15,464,605
LIABILITIES
Interest-bearing deposits:
Interest-bearing deposits	$	5,263,601	$	24,662	1.87	%	$	5,027,466	$	2,408	0.19	%
Money market deposits		2,746,047		13,577	1.98			2,514,429		872	0.14
Savings deposits		1,826,209		2,965	0.65			1,867,411		441	0.09
Certificates and other time deposits		1,466,275		9,481	2.59			676,661		573	0.34
Total Interest-Bearing Deposits		11,302,132		50,685	1.79			10,085,967		4,294	0.17
Borrowings:		1,293,309		11,594	3.59			616,572		2,966	1.92
Total Interest-Bearing Liabilities		12,595,441		62,279	1.98			10,702,539		7,260	0.27
Noninterest-bearing deposits		3,121,277						2,731,723
Other liabilities		222,352						139,120
Total Liabilities		15,939,070						13,573,382
STOCKHOLDERS' EQUITY		2,083,125						1,891,223
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	18,022,195		62,279			$	15,464,605		7,260
Net Interest Income (FTE)			$	150,440					$	108,016
Net Interest Spread (FTE)(4)					3.08	%					2.96	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.06	%					3.23	%
Interest Expense / Average Earning Assets					1.48	%					0.20	%
Net Interest Margin (FTE)(5)					3.58	%					3.03	%

(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 $6,321 and $5,736 for the three months ended March 31, 2023 and 2022, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

ADJUSTED EPS EXCLUDING PAYCHECK PROTECTION PROGRAM ("PPP") AND ACQUISITION-RELATED EXPENSES - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2023			2022			2022			2022			2022
Net Income Available to Common Stockholders - GAAP	$	63,610		$	70,292		$	63,283		$	38,522		$	48,586
Adjustments:
PPP loan income		(25	)		(109	)		(323	)		(891	)		(1,884	)
Acquisition-related expenses		—			413			3,417			12,549			152
Acquisition-related provision expense		—			—			—			16,755			—
Tax on adjustment		6			(75	)		(759	)		(6,967	)		425
Adjusted Net Income Available to Common Stockholders - Non-GAAP	$	63,591		$	70,521		$	65,618		$	59,968		$	47,279

Average Diluted Common Shares Outstanding (in thousands)		59,441			59,384			59,339			59,308			53,616

Diluted Earnings Per Common Share - GAAP	$	1.07		$	1.19		$	1.08		$	0.63		$	0.91
Adjustments:
PPP loan income		—			(0.01	)		—			(0.01	)		(0.04	)
Acquisition-related expenses		—			0.01			0.05			0.22			—
Acquisition-related provision expense		—			—			—			0.30			—
Tax on adjustment		—			—			(0.01	)		(0.13	)		0.01
Adjusted Diluted Earnings Per Common Share - Non-GAAP	$	1.07		$	1.19		$	1.12		$	1.01		$	0.88

RETURN ON TANGIBLE COMMON EQUITY
(Dollars In Thousands)	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2023			2022			2022			2022			2022
Total Average Stockholders' Equity (GAAP)	$	2,083,125		$	1,958,041		$	2,018,156		$	2,021,123		$	1,891,223
Less: Average Preferred Stock		(25,125	)		(25,125	)		(25,125	)		(25,125	)		(125	)
Less: Average Intangible Assets, Net of Tax		(739,190	)		(741,632	)		(744,069	)		(745,614	)		(565,476	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,318,810		$	1,191,284		$	1,248,962		$	1,250,384		$	1,325,622

Net Income Available to Common Stockholders (GAAP)	$	63,610		$	70,292		$	63,283		$	38,521		$	48,586
Plus: Intangible Asset Amortization, Net of Tax		1,734			1,819			1,819			1,820			1,079
Tangible Net Income (Non-GAAP)	$	65,344		$	72,111		$	65,102		$	40,341		$	49,665

Return on Tangible Common Equity (Non-GAAP)		19.82	%		24.21	%		20.85	%		12.91	%		14.99	%