(State or other jurisdiction of incorporation) | |||||
(Commission File Number) | (IRS Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
First Merchants Corporation | |||||||||||
(Registrant) | |||||||||||
By: /s/ Michele M. Kawiecki Michele M. Kawiecki Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) | |||||||||||
Dated: January 26, 2023 |
CONSOLIDATED BALANCE SHEETS | |||||||||||
(Dollars In Thousands) | December 31, | ||||||||||
2022 | 2021 | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 122,594 | $ | 167,146 | |||||||
Interest-bearing deposits | 126,061 | 474,154 | |||||||||
Investment securities, net of allowance for credit losses of $245,000 and $245,000 | 4,263,788 | 4,524,353 | |||||||||
Loans held for sale | 9,094 | 11,187 | |||||||||
Loans | 12,003,894 | 9,241,861 | |||||||||
Less: Allowance for credit losses - loans | (223,277) | (195,397) | |||||||||
Net loans | 11,780,617 | 9,046,464 | |||||||||
Premises and equipment | 117,118 | 105,655 | |||||||||
Federal Home Loan Bank stock | 38,525 | 28,736 | |||||||||
Interest receivable | 85,070 | 57,187 | |||||||||
Goodwill and other intangibles | 747,844 | 570,860 | |||||||||
Cash surrender value of life insurance | 308,311 | 291,041 | |||||||||
Other real estate owned | 6,431 | 558 | |||||||||
Tax asset, deferred and receivable | 111,222 | 35,641 | |||||||||
Other assets | 221,631 | 140,167 | |||||||||
TOTAL ASSETS | $ | 17,938,306 | $ | 15,453,149 | |||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $ | 3,173,417 | $ | 2,709,646 | |||||||
Interest-bearing | 11,209,328 | 10,022,931 | |||||||||
Total Deposits | 14,382,745 | 12,732,577 | |||||||||
Borrowings: | |||||||||||
Federal funds purchased | 171,560 | — | |||||||||
Securities sold under repurchase agreements | 167,413 | 181,577 | |||||||||
Federal Home Loan Bank advances | 823,674 | 334,055 | |||||||||
Subordinated debentures and other borrowings | 151,298 | 118,618 | |||||||||
Total Borrowings | 1,313,945 | 634,250 | |||||||||
Interest payable | 7,530 | 2,762 | |||||||||
Other liabilities | 199,316 | 170,989 | |||||||||
Total Liabilities | 15,903,536 | 13,540,578 | |||||||||
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 - 59,170,583 and 53,410,411 shares | 7,396 | 6,676 | |||||||||
Additional paid-in capital | 1,228,626 | 985,818 | |||||||||
Retained earnings | 1,012,774 | 864,839 | |||||||||
Accumulated other comprehensive income (loss) | (239,151) | 55,113 | |||||||||
Total Stockholders' Equity | 2,034,770 | 1,912,571 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 17,938,306 | $ | 15,453,149 |
CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
(Dollars In Thousands, Except Per Share Amounts) | December 31, | December 31, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||
Taxable | $ | 156,102 | $ | 80,583 | $ | 470,468 | $ | 338,009 | |||||||||||||||
Tax-exempt | 6,930 | 5,635 | 25,124 | 22,110 | |||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Taxable | 9,417 | 8,028 | 38,354 | 29,951 | |||||||||||||||||||
Tax-exempt | 17,033 | 15,411 | 67,381 | 55,331 | |||||||||||||||||||
Deposits with financial institutions | 959 | 173 | 2,503 | 634 | |||||||||||||||||||
Federal Home Loan Bank stock | 541 | 163 | 1,176 | 597 | |||||||||||||||||||
Total Interest Income | 190,982 | 109,993 | 605,006 | 446,632 | |||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||
Deposits | 33,516 | 5,589 | 62,939 | 23,319 | |||||||||||||||||||
Federal funds purchased | 808 | 1 | 1,302 | 5 | |||||||||||||||||||
Securities sold under repurchase agreements | 541 | 75 | 1,136 | 314 | |||||||||||||||||||
Federal Home Loan Bank advances | 4,932 | 1,389 | 11,417 | 5,672 | |||||||||||||||||||
Subordinated debentures and other borrowings | 2,229 | 1,666 | 8,009 | 6,642 | |||||||||||||||||||
Total Interest Expense | 42,026 | 8,720 | 84,803 | 35,952 | |||||||||||||||||||
NET INTEREST INCOME | 148,956 | 101,273 | 520,203 | 410,680 | |||||||||||||||||||
Provision for credit losses - loans | — | — | 16,755 | — | |||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 148,956 | 101,273 | 503,448 | 410,680 | |||||||||||||||||||
NON-INTEREST INCOME | |||||||||||||||||||||||
Service charges on deposit accounts | 7,097 | 6,462 | 28,371 | 23,571 | |||||||||||||||||||
Fiduciary and wealth management fees | 7,501 | 7,078 | 29,688 | 28,362 | |||||||||||||||||||
Card payment fees | 4,533 | 3,937 | 20,207 | 16,619 | |||||||||||||||||||
Net gains and fees on sales of loans | 2,087 | 3,423 | 10,055 | 19,689 | |||||||||||||||||||
Derivative hedge fees | 326 | 1,562 | 3,388 | 3,850 | |||||||||||||||||||
Other customer fees | 362 | 361 | 1,935 | 1,490 | |||||||||||||||||||
Earnings on cash surrender value of life insurance | 1,515 | 2,051 | 11,174 | 7,060 | |||||||||||||||||||
Net realized gains on sales of available for sale securities | 57 | 358 | 1,194 | 5,674 | |||||||||||||||||||
Other income | 672 | 615 | 1,929 | 3,008 | |||||||||||||||||||
Total Non-Interest Income | 24,150 | 25,847 | 107,941 | 109,323 | |||||||||||||||||||
NON-INTEREST EXPENSES | |||||||||||||||||||||||
Salaries and employee benefits | 52,331 | 42,432 | 206,893 | 166,995 | |||||||||||||||||||
Net occupancy | 6,638 | 5,644 | 26,211 | 23,326 | |||||||||||||||||||
Equipment | 6,148 | 4,994 | 23,945 | 19,401 | |||||||||||||||||||
Marketing | 3,157 | 1,840 | 7,708 | 5,762 | |||||||||||||||||||
Outside data processing fees | 5,611 | 4,581 | 21,682 | 18,317 | |||||||||||||||||||
Printing and office supplies | 390 | 356 | 1,588 | 1,217 | |||||||||||||||||||
Intangible asset amortization | 2,303 | 1,463 | 8,275 | 5,747 | |||||||||||||||||||
FDIC assessments | 2,295 | 1,862 | 10,235 | 6,243 | |||||||||||||||||||
Other real estate owned and foreclosure expenses | 197 | 171 | 823 | 992 | |||||||||||||||||||
Professional and other outside services | 3,961 | 3,627 | 21,642 | 11,913 | |||||||||||||||||||
Other expenses | 6,668 | 5,466 | 26,713 | 19,300 | |||||||||||||||||||
Total Non-Interest Expenses | 89,699 | 72,436 | 355,715 | 279,213 | |||||||||||||||||||
INCOME BEFORE INCOME TAX | 83,407 | 54,684 | 255,674 | 240,790 | |||||||||||||||||||
Income tax expense | 12,647 | 6,951 | 33,585 | 35,259 | |||||||||||||||||||
NET INCOME | 70,760 | 47,733 | 222,089 | 205,531 | |||||||||||||||||||
Preferred stock dividends | 468 | — | 1,406 | — | |||||||||||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 70,292 | $ | 47,733 | $ | 220,683 | $ | 205,531 | |||||||||||||||
Per Share Data: | |||||||||||||||||||||||
Basic Net Income Available to Common Stockholders | $ | 1.20 | $ | 0.89 | $ | 3.83 | $ | 3.82 | |||||||||||||||
Diluted Net Income Available to Common Stockholders | $ | 1.19 | $ | 0.89 | $ | 3.81 | $ | 3.81 | |||||||||||||||
Cash Dividends Paid to Common Stockholders | $ | 0.32 | $ | 0.29 | $ | 1.25 | $ | 1.13 | |||||||||||||||
Average Diluted Common Shares Outstanding (in thousands) | 59,384 | 53,660 | 57,950 | 53,984 |
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||
(Dollars in thousands) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
NET CHARGE-OFFS (RECOVERIES) | $ | 3,425 | $ | 4,575 | $ | 2,674 | $ | 9,306 | |||||||||||||||
AVERAGE BALANCES: | |||||||||||||||||||||||
Total Assets | $ | 17,834,468 | $ | 15,298,655 | $ | 17,220,002 | $ | 14,830,397 | |||||||||||||||
Total Loans | 11,818,911 | 9,076,652 | 10,943,051 | 9,170,650 | |||||||||||||||||||
Total Earning Assets | 16,702,944 | 14,053,310 | 15,985,691 | 13,579,113 | |||||||||||||||||||
Total Deposits | 14,564,853 | 12,647,737 | 14,198,243 | 12,176,231 | |||||||||||||||||||
Total Stockholders' Equity | 1,958,041 | 1,890,229 | 1,972,445 | 1,866,632 | |||||||||||||||||||
FINANCIAL RATIOS: | |||||||||||||||||||||||
Return on Average Assets | 1.59 | % | 1.25 | % | 1.29 | % | 1.39 | % | |||||||||||||||
Return on Average Stockholders' Equity | 14.36 | 10.10 | 11.19 | 11.01 | |||||||||||||||||||
Return on Average Common Stockholders' Equity | 14.55 | 10.10 | 11.30 | 11.01 | |||||||||||||||||||
Average Earning Assets to Average Assets | 93.66 | 91.86 | 92.83 | 91.56 | |||||||||||||||||||
Allowance for Credit Losses - Loans as % of Total Loans | 1.86 | 2.11 | 1.86 | 2.11 | |||||||||||||||||||
Net Charge-offs as % of Average Loans (Annualized) | 0.12 | 0.20 | 0.02 | 0.10 | |||||||||||||||||||
Average Stockholders' Equity to Average Assets | 10.98 | 12.36 | 11.45 | 12.59 | |||||||||||||||||||
Tax Equivalent Yield on Average Earning Assets | 4.73 | 3.29 | 3.94 | 3.44 | |||||||||||||||||||
Interest Expense/Average Earning Assets | 1.01 | 0.25 | 0.53 | 0.26 | |||||||||||||||||||
Net Interest Margin (FTE) on Average Earning Assets | 3.72 | 3.04 | 3.41 | 3.18 | |||||||||||||||||||
Efficiency Ratio | 48.60 | 53.49 | 53.20 | 50.94 | |||||||||||||||||||
Tangible Common Book Value Per Share | $ | 21.45 | $ | 25.21 | $ | 21.45 | $ | 25.21 |
NON-PERFORMING ASSETS | |||||||||||||||||||||||||||||
(Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||
Non-Accrual Loans | $ | 42,324 | $ | 43,508 | $ | 45,970 | $ | 42,698 | $ | 43,062 | |||||||||||||||||||
Renegotiated Loans | 224 | 195 | 233 | 141 | 329 | ||||||||||||||||||||||||
Non-Performing Loans (NPL) | 42,548 | 43,703 | 46,203 | 42,839 | 43,391 | ||||||||||||||||||||||||
Other Real Estate Owned and Repossessions | 6,431 | 6,454 | 6,521 | 6,271 | 558 | ||||||||||||||||||||||||
Non-Performing Assets (NPA) | 48,979 | 50,157 | 52,724 | 49,110 | 43,949 | ||||||||||||||||||||||||
90+ Days Delinquent | 1,737 | 764 | 592 | 2,085 | 963 | ||||||||||||||||||||||||
NPAs & 90 Day Delinquent | $ | 50,716 | $ | 50,921 | $ | 53,316 | $ | 51,195 | $ | 44,912 | |||||||||||||||||||
Allowance for Credit Losses - Loans | $ | 223,277 | $ | 226,702 | $ | 226,275 | $ | 195,984 | $ | 195,397 | |||||||||||||||||||
Quarterly Net Charge-offs (Recoveries) | 2,674 | (427) | 263 | (587) | 4,575 | ||||||||||||||||||||||||
NPAs / Actual Assets % | 0.27 | % | 0.28 | % | 0.30 | % | 0.32 | % | 0.28 | % | |||||||||||||||||||
NPAs & 90 Day / Actual Assets % | 0.28 | % | 0.29 | % | 0.30 | % | 0.33 | % | 0.29 | % | |||||||||||||||||||
NPAs / Actual Loans and OREO % | 0.41 | % | 0.43 | % | 0.46 | % | 0.52 | % | 0.47 | % | |||||||||||||||||||
Allowance for Credit Losses - Loans / Actual Loans (%) | 1.86 | % | 1.94 | % | 1.98 | % | 2.09 | % | 2.11 | % | |||||||||||||||||||
Net Charge-offs (Recoveries) as % of Average Loans (Annualized) | 0.12 | % | (0.01) | % | 0.01 | % | (0.03) | % | 0.20 | % | |||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||||
(Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Cash and due from banks | $ | 122,594 | $ | 119,532 | $ | 212,559 | $ | 148,277 | $ | 167,146 | |||||||||||||||||||
Interest-bearing deposits | 126,061 | 179,593 | 136,702 | 395,262 | 474,154 | ||||||||||||||||||||||||
Investment securities, net of allowance for credit losses | 4,263,788 | 4,294,768 | 4,630,030 | 4,489,263 | 4,524,353 | ||||||||||||||||||||||||
Loans held for sale | 9,094 | 25,394 | 9,060 | 3,938 | 11,187 | ||||||||||||||||||||||||
Loans | 12,003,894 | 11,650,002 | 11,397,417 | 9,356,241 | 9,241,861 | ||||||||||||||||||||||||
Less: Allowance for credit losses - loans | (223,277) | (226,702) | (226,275) | (195,984) | (195,397) | ||||||||||||||||||||||||
Net loans | 11,780,617 | 11,423,300 | 11,171,142 | 9,160,257 | 9,046,464 | ||||||||||||||||||||||||
Premises and equipment | 117,118 | 116,306 | 117,757 | 105,883 | 105,655 | ||||||||||||||||||||||||
Federal Home Loan Bank stock | 38,525 | 38,056 | 38,111 | 26,422 | 28,736 | ||||||||||||||||||||||||
Interest receivable | 85,070 | 71,605 | 68,728 | 56,081 | 57,187 | ||||||||||||||||||||||||
Goodwill and other intangibles | 747,844 | 750,713 | 753,649 | 569,494 | 570,860 | ||||||||||||||||||||||||
Cash surrender value of life insurance | 308,311 | 306,932 | 323,013 | 291,881 | 291,041 | ||||||||||||||||||||||||
Other real estate owned | 6,431 | 6,454 | 6,521 | 6,271 | 558 | ||||||||||||||||||||||||
Tax asset, deferred and receivable | 111,222 | 142,110 | 114,965 | 73,422 | 35,641 | ||||||||||||||||||||||||
Other assets | 221,631 | 244,222 | 198,255 | 138,807 | 140,167 | ||||||||||||||||||||||||
TOTAL ASSETS | $ | 17,938,306 | $ | 17,718,985 | $ | 17,780,492 | $ | 15,465,258 | $ | 15,453,149 | |||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Noninterest-bearing | $ | 3,173,417 | $ | 3,356,651 | $ | 3,435,331 | $ | 2,745,235 | $ | 2,709,646 | |||||||||||||||||||
Interest-bearing | 11,209,328 | 11,078,174 | 11,135,538 | 10,160,718 | 10,022,931 | ||||||||||||||||||||||||
Total Deposits | 14,382,745 | 14,434,825 | 14,570,869 | 12,905,953 | 12,732,577 | ||||||||||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||
Federal funds purchased | 171,560 | 185,000 | 100,000 | — | — | ||||||||||||||||||||||||
Securities sold under repurchase agreements | 167,413 | 194,482 | 186,468 | 169,697 | 181,577 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 823,674 | 643,769 | 598,865 | 308,960 | 334,055 | ||||||||||||||||||||||||
Subordinated debentures and other borrowings | 151,298 | 151,301 | 151,299 | 118,677 | 118,618 | ||||||||||||||||||||||||
Total Borrowings | 1,313,945 | 1,174,552 | 1,036,632 | 597,334 | 634,250 | ||||||||||||||||||||||||
Interest payable | 7,530 | 4,971 | 2,978 | 3,589 | 2,762 | ||||||||||||||||||||||||
Other liabilities | 199,316 | 197,971 | 192,372 | 150,749 | 170,989 | ||||||||||||||||||||||||
Total Liabilities | 15,903,536 | 15,812,319 | 15,802,851 | 13,657,625 | 13,540,578 | ||||||||||||||||||||||||
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 | — | — | ||||||||||||||||||||||||
Common Stock, $.125 stated value: | |||||||||||||||||||||||||||||
Authorized -- 100,000,000 shares | |||||||||||||||||||||||||||||
Issued and outstanding | 7,396 | 7,393 | 7,383 | 6,678 | 6,676 | ||||||||||||||||||||||||
Additional paid-in capital | 1,228,626 | 1,226,695 | 1,226,378 | 987,404 | 985,818 | ||||||||||||||||||||||||
Retained earnings | 1,012,774 | 961,542 | 917,311 | 897,818 | 864,839 | ||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (239,151) | (314,089) | (198,556) | (84,392) | 55,113 | ||||||||||||||||||||||||
Total Stockholders' Equity | 2,034,770 | 1,906,666 | 1,977,641 | 1,807,633 | 1,912,571 | ||||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 17,938,306 | $ | 17,718,985 | $ | 17,780,492 | $ | 15,465,258 | $ | 15,453,149 | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||||||
(Dollars In Thousands, Except Per Share Amounts) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Taxable | $ | 156,102 | $ | 128,504 | $ | 106,787 | $ | 79,075 | $ | 80,583 | |||||||||||||||||||
Tax-exempt | 6,930 | 6,500 | 5,990 | 5,704 | 5,635 | ||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Taxable | 9,417 | 10,055 | 10,372 | 8,510 | 8,028 | ||||||||||||||||||||||||
Tax-exempt | 17,033 | 17,261 | 17,212 | 15,875 | 15,411 | ||||||||||||||||||||||||
Deposits with financial institutions | 959 | 704 | 610 | 230 | 173 | ||||||||||||||||||||||||
Federal Home Loan Bank stock | 541 | 314 | 175 | 146 | 163 | ||||||||||||||||||||||||
Total Interest Income | 190,982 | 163,338 | 141,146 | 109,540 | 109,993 | ||||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||
Deposits | 33,516 | 16,644 | 8,485 | 4,294 | 5,589 | ||||||||||||||||||||||||
Federal funds purchased | 808 | 418 | 76 | — | 1 | ||||||||||||||||||||||||
Securities sold under repurchase agreements | 541 | 372 | 134 | 89 | 75 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 4,932 | 3,493 | 1,774 | 1,218 | 1,389 | ||||||||||||||||||||||||
Subordinated debentures and other borrowings | 2,229 | 2,105 | 2,016 | 1,659 | 1,666 | ||||||||||||||||||||||||
Total Interest Expense | 42,026 | 23,032 | 12,485 | 7,260 | 8,720 | ||||||||||||||||||||||||
NET INTEREST INCOME | 148,956 | 140,306 | 128,661 | 102,280 | 101,273 | ||||||||||||||||||||||||
Provision for credit losses - loans | — | — | 16,755 | — | — | ||||||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 148,956 | 140,306 | 111,906 | 102,280 | 101,273 | ||||||||||||||||||||||||
NON-INTEREST INCOME | |||||||||||||||||||||||||||||
Service charges on deposit accounts | 7,097 | 7,165 | 7,690 | 6,419 | 6,462 | ||||||||||||||||||||||||
Fiduciary and wealth management fees | 7,501 | 7,221 | 7,634 | 7,332 | 7,078 | ||||||||||||||||||||||||
Card payment fees | 4,533 | 4,776 | 5,175 | 5,723 | 3,937 | ||||||||||||||||||||||||
Net gains and fees on sales of loans | 2,087 | 2,543 | 3,226 | 2,199 | 3,423 | ||||||||||||||||||||||||
Derivative hedge fees | 326 | 700 | 1,444 | 918 | 1,562 | ||||||||||||||||||||||||
Other customer fees | 362 | 501 | 662 | 410 | 361 | ||||||||||||||||||||||||
Earnings on cash surrender value of life insurance | 1,515 | 6,655 | 1,308 | 1,696 | 2,051 | ||||||||||||||||||||||||
Net realized gains on sales of available for sale securities | 57 | 481 | 90 | 566 | 358 | ||||||||||||||||||||||||
Other income (loss) | 672 | (425) | 1,048 | 634 | 615 | ||||||||||||||||||||||||
Total Non-Interest Income | 24,150 | 29,617 | 28,277 | 25,897 | 25,847 | ||||||||||||||||||||||||
NON-INTEREST EXPENSES | |||||||||||||||||||||||||||||
Salaries and employee benefits | 52,331 | 56,002 | 56,041 | 42,519 | 42,432 | ||||||||||||||||||||||||
Net occupancy | 6,638 | 6,738 | 6,648 | 6,187 | 5,644 | ||||||||||||||||||||||||
Equipment | 6,148 | 5,997 | 6,720 | 5,080 | 4,994 | ||||||||||||||||||||||||
Marketing | 3,157 | 2,401 | 1,414 | 736 | 1,840 | ||||||||||||||||||||||||
Outside data processing fees | 5,611 | 6,827 | 4,881 | 4,363 | 4,581 | ||||||||||||||||||||||||
Printing and office supplies | 390 | 472 | 381 | 345 | 356 | ||||||||||||||||||||||||
Intangible asset amortization | 2,303 | 2,303 | 2,303 | 1,366 | 1,463 | ||||||||||||||||||||||||
FDIC assessments | 2,295 | 2,824 | 2,924 | 2,192 | 1,862 | ||||||||||||||||||||||||
Other real estate owned and foreclosure expenses | 197 | 328 | (266) | 564 | 171 | ||||||||||||||||||||||||
Professional and other outside services | 3,961 | 4,461 | 10,267 | 2,953 | 3,627 | ||||||||||||||||||||||||
Other expenses | 6,668 | 8,025 | 6,000 | 6,020 | 5,466 | ||||||||||||||||||||||||
Total Non-Interest Expenses | 89,699 | 96,378 | 97,313 | 72,325 | 72,436 | ||||||||||||||||||||||||
INCOME BEFORE INCOME TAX | 83,407 | 73,545 | 42,870 | 55,852 | 54,684 | ||||||||||||||||||||||||
Income tax expense | 12,647 | 9,793 | 3,879 | 7,266 | 6,951 | ||||||||||||||||||||||||
NET INCOME | 70,760 | 63,752 | 38,991 | 48,586 | 47,733 | ||||||||||||||||||||||||
Preferred stock dividends | 468 | 469 | 469 | — | — | ||||||||||||||||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 70,292 | $ | 63,283 | $ | 38,522 | $ | 48,586 | $ | 47,733 | |||||||||||||||||||
Per Share Data: | |||||||||||||||||||||||||||||
Basic Net Income Available to Common Stockholders | $ | 1.20 | $ | 1.08 | $ | 0.64 | $ | 0.91 | $ | 0.89 | |||||||||||||||||||
Diluted Net Income Available to Common Stockholders | $ | 1.19 | $ | 1.08 | $ | 0.63 | $ | 0.91 | $ | 0.89 | |||||||||||||||||||
Cash Dividends Paid to Common Stockholders | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.29 | $ | 0.29 | |||||||||||||||||||
Average Diluted Common Shares Outstanding (in thousands) | 59,384 | 59,339 | 59,308 | 53,616 | 53,660 | ||||||||||||||||||||||||
FINANCIAL RATIOS: | |||||||||||||||||||||||||||||
Return on Average Assets | 1.59 | % | 1.43 | % | 0.88 | % | 1.26 | % | 1.25 | % | |||||||||||||||||||
Return on Average Stockholders' Equity | 14.36 | 12.54 | 7.62 | 10.28 | 10.10 | ||||||||||||||||||||||||
Return on Average Common Stockholders' Equity | 14.55 | 12.70 | 7.72 | 10.28 | 10.10 | ||||||||||||||||||||||||
Average Earning Assets to Average Assets | 93.66 | 92.90 | 92.45 | 92.23 | 91.86 | ||||||||||||||||||||||||
Allowance for Credit Losses - Loans as % of Total Loans | 1.86 | 1.94 | 1.98 | 2.09 | 2.11 | ||||||||||||||||||||||||
Net Charge-offs (Recoveries) as % of Average Loans (Annualized) | 0.12 | (0.01) | 0.01 | (0.03) | 0.20 | ||||||||||||||||||||||||
Average Stockholders' Equity to Average Assets | 10.98 | 11.36 | 11.37 | 12.23 | 12.36 | ||||||||||||||||||||||||
Tax Equivalent Yield on Average Earning Assets | 4.73 | 4.11 | 3.58 | 3.23 | 3.29 | ||||||||||||||||||||||||
Interest Expense/Average Earning Assets | 1.01 | 0.56 | 0.30 | 0.20 | 0.25 | ||||||||||||||||||||||||
Net Interest Margin (FTE) on Average Earning Assets | 3.72 | 3.55 | 3.28 | 3.03 | 3.04 | ||||||||||||||||||||||||
Efficiency Ratio | 48.60 | 53.34 | 58.45 | 52.79 | 53.49 | ||||||||||||||||||||||||
Tangible Common Book Value Per Share | $ | 21.45 | $ | 19.26 | $ | 20.45 | $ | 23.26 | $ | 25.21 |
LOANS | |||||||||||||||||||||||||||||
(Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||
Commercial and industrial loans | $ | 3,437,126 | $ | 3,330,529 | $ | 3,297,477 | $ | 2,826,660 | $ | 2,714,565 | |||||||||||||||||||
Agricultural land, production and other loans to farmers | 241,793 | 221,954 | 214,904 | 209,077 | 246,442 | ||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction | 835,582 | 828,923 | 745,983 | 552,975 | 523,066 | ||||||||||||||||||||||||
Commercial real estate, non-owner occupied | 2,407,475 | 2,299,272 | 2,423,185 | 2,073,197 | 2,135,459 | ||||||||||||||||||||||||
Commercial real estate, owner occupied | 1,246,528 | 1,268,567 | 1,264,563 | 974,521 | 986,720 | ||||||||||||||||||||||||
Residential | 2,096,655 | 1,990,668 | 1,813,297 | 1,226,695 | 1,159,127 | ||||||||||||||||||||||||
Home equity | 630,632 | 621,619 | 586,108 | 512,641 | 523,754 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 175,211 | 173,225 | 157,264 | 147,593 | 146,092 | ||||||||||||||||||||||||
Public finance and other commercial loans | 932,892 | 915,245 | 894,636 | 832,882 | 806,636 | ||||||||||||||||||||||||
Loans | 12,003,894 | 11,650,002 | 11,397,417 | 9,356,241 | 9,241,861 | ||||||||||||||||||||||||
Allowance for credit losses - loans | (223,277) | (226,702) | (226,275) | (195,984) | (195,397) | ||||||||||||||||||||||||
NET LOANS | $ | 11,780,617 | $ | 11,423,300 | $ | 11,171,142 | $ | 9,160,257 | $ | 9,046,464 |
DEPOSITS | |||||||||||||||||||||||||||||
(Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||
Demand deposits | $ | 8,448,797 | $ | 8,534,950 | $ | 8,785,889 | $ | 7,806,033 | $ | 7,704,190 | |||||||||||||||||||
Savings deposits | 4,657,140 | 5,054,490 | 4,875,880 | 4,444,417 | 4,334,802 | ||||||||||||||||||||||||
Certificates and other time deposits of $100,000 or more | 742,539 | 443,588 | 436,942 | 252,033 | 273,379 | ||||||||||||||||||||||||
Other certificates and time deposits | 468,712 | 381,365 | 446,973 | 380,293 | 389,752 | ||||||||||||||||||||||||
Brokered deposits | 65,557 | 20,432 | 25,185 | 23,177 | 30,454 | ||||||||||||||||||||||||
TOTAL DEPOSITS | $ | 14,382,745 | $ | 14,434,825 | $ | 14,570,869 | $ | 12,905,953 | $ | 12,732,577 |
CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest Income / Expense | Average Rate | Average Balance | Interest Income / Expense | Average Rate | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 187,204 | $ | 959 | 2.05 | % | $ | 558,677 | $ | 173 | 0.12 | % | |||||||||||||||||||||||
Federal Home Loan Bank stock | 38,066 | 541 | 5.68 | 28,736 | 163 | 2.27 | |||||||||||||||||||||||||||||
Investment Securities: (1) | |||||||||||||||||||||||||||||||||||
Taxable | 1,987,161 | 9,417 | 1.90 | 1,936,519 | 8,028 | 1.66 | |||||||||||||||||||||||||||||
Tax-Exempt (2) | 2,671,602 | 21,561 | 3.23 | 2,452,726 | 19,508 | 3.18 | |||||||||||||||||||||||||||||
Total Investment Securities | 4,658,763 | 30,978 | 2.66 | 4,389,245 | 27,536 | 2.51 | |||||||||||||||||||||||||||||
Loans held for sale | 4,732 | 71 | 6.00 | 20,688 | 196 | 3.79 | |||||||||||||||||||||||||||||
Loans: (3) | |||||||||||||||||||||||||||||||||||
Commercial | 8,309,561 | 126,850 | 6.11 | 6,703,241 | 65,867 | 3.93 | |||||||||||||||||||||||||||||
Real Estate Mortgage | 1,827,749 | 16,654 | 3.64 | 889,571 | 7,866 | 3.54 | |||||||||||||||||||||||||||||
Installment | 843,562 | 12,527 | 5.94 | 711,309 | 6,654 | 3.74 | |||||||||||||||||||||||||||||
Tax-Exempt (2) | 833,307 | 8,772 | 4.21 | 751,843 | 7,133 | 3.79 | |||||||||||||||||||||||||||||
Total Loans | 11,818,911 | 164,874 | 5.58 | 9,076,652 | 87,716 | 3.87 | |||||||||||||||||||||||||||||
Total Earning Assets | 16,702,944 | 197,352 | 4.73 | % | 14,053,310 | 115,588 | 3.29 | % | |||||||||||||||||||||||||||
Total Non-Earning Assets | 1,131,524 | 1,245,345 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 17,834,468 | $ | 15,298,655 | |||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 5,238,422 | $ | 16,810 | 1.28 | % | $ | 4,912,556 | $ | 3,637 | 0.30 | % | |||||||||||||||||||||||
Money market deposits | 3,018,644 | 10,778 | 1.43 | 2,518,612 | 809 | 0.13 | |||||||||||||||||||||||||||||
Savings deposits | 1,895,551 | 2,125 | 0.45 | 1,828,631 | 461 | 0.10 | |||||||||||||||||||||||||||||
Certificates and other time deposits | 1,038,502 | 3,803 | 1.46 | 706,617 | 682 | 0.39 | |||||||||||||||||||||||||||||
Total Interest-bearing Deposits | 11,191,119 | 33,516 | 1.20 | 9,966,416 | 5,589 | 0.22 | |||||||||||||||||||||||||||||
Borrowings | 1,097,586 | 8,510 | 3.10 | 620,398 | 3,131 | 2.02 | |||||||||||||||||||||||||||||
Total Interest-bearing Liabilities | 12,288,705 | 42,026 | 1.37 | 10,586,814 | 8,720 | 0.33 | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | 3,373,734 | 2,681,321 | |||||||||||||||||||||||||||||||||
Other liabilities | 213,988 | 140,291 | |||||||||||||||||||||||||||||||||
Total Liabilities | 15,876,427 | 13,408,426 | |||||||||||||||||||||||||||||||||
Stockholders' Equity | 1,958,041 | 1,890,229 | |||||||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 17,834,468 | 42,026 | $ | 15,298,655 | 8,720 | |||||||||||||||||||||||||||||
Net Interest Income (FTE) | $ | 155,326 | $ | 106,868 | |||||||||||||||||||||||||||||||
Net Interest Spread (FTE) (4) | 3.36 | % | 2.96 | % | |||||||||||||||||||||||||||||||
Net Interest Margin (FTE): | |||||||||||||||||||||||||||||||||||
Interest Income (FTE) / Average Earning Assets | 4.73 | % | 3.29 | % | |||||||||||||||||||||||||||||||
Interest Expense / Average Earning Assets | 1.01 | % | 0.25 | % | |||||||||||||||||||||||||||||||
Net Interest Margin (FTE) (5) | 3.72 | % | 3.04 | % | |||||||||||||||||||||||||||||||
(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 2022 and 2021. These totals equal $6,370 and $5,595 for the three months ended December 31, 2022 and 2021, 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 Twelve Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest Income / Expense | Average Rate | Average Balance | Interest Income / Expense | Average Rate | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 296,863 | $ | 2,503 | 0.84 | % | $ | 521,637 | $ | 634 | 0.12 | % | |||||||||||||||||||||||
Federal Home Loan Bank stock | 35,580 | 1,176 | 3.31 | 28,736 | 597 | 2.08 | |||||||||||||||||||||||||||||
Investment Securities: (1) | |||||||||||||||||||||||||||||||||||
Taxable | 2,056,586 | 38,354 | 1.86 | 1,751,910 | 29,951 | 1.71 | |||||||||||||||||||||||||||||
Tax-Exempt (2) | 2,653,611 | 85,292 | 3.21 | 2,106,180 | 70,039 | 3.33 | |||||||||||||||||||||||||||||
Total Investment Securities | 4,710,197 | 123,646 | 2.63 | 3,858,090 | 99,990 | 2.59 | |||||||||||||||||||||||||||||
Loans held for sale | 14,715 | 692 | 4.70 | 19,190 | 747 | 3.89 | |||||||||||||||||||||||||||||
Loans: (3) | |||||||||||||||||||||||||||||||||||
Commercial | 7,877,271 | 380,621 | 4.83 | 6,818,968 | 276,368 | 4.05 | |||||||||||||||||||||||||||||
Real Estate Mortgage | 1,471,802 | 51,853 | 3.52 | 916,314 | 34,783 | 3.80 | |||||||||||||||||||||||||||||
Installment | 785,520 | 37,302 | 4.75 | 683,925 | 26,111 | 3.82 | |||||||||||||||||||||||||||||
Tax-Exempt (2) | 793,743 | 31,803 | 4.01 | 732,253 | 27,987 | 3.82 | |||||||||||||||||||||||||||||
Total Loans | 10,943,051 | 502,271 | 4.59 | 9,170,650 | 365,996 | 3.99 | |||||||||||||||||||||||||||||
Total Earning Assets | 15,985,691 | 629,596 | 3.94 | % | 13,579,113 | 467,217 | 3.44 | % | |||||||||||||||||||||||||||
Total Non-Earning Assets | 1,234,311 | 1,251,284 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 17,220,002 | $ | 14,830,397 | |||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 5,206,131 | $ | 32,511 | 0.62 | % | $ | 4,769,482 | $ | 14,512 | 0.30 | % | |||||||||||||||||||||||
Money market deposits | 2,915,397 | 19,170 | 0.66 | 2,351,803 | 3,203 | 0.14 | |||||||||||||||||||||||||||||
Savings deposits | 1,927,122 | 5,019 | 0.26 | 1,754,972 | 1,886 | 0.11 | |||||||||||||||||||||||||||||
Certificates and other time deposits | 881,176 | 6,239 | 0.71 | 783,733 | 3,718 | 0.47 | |||||||||||||||||||||||||||||
Total Interest-bearing Deposits | 10,929,826 | 62,939 | 0.58 | 9,659,990 | 23,319 | 0.24 | |||||||||||||||||||||||||||||
Borrowings | 888,392 | 21,864 | 2.46 | 639,791 | 12,633 | 1.97 | |||||||||||||||||||||||||||||
Total Interest-bearing Liabilities | 11,818,218 | 84,803 | 0.72 | 10,299,781 | 35,952 | 0.35 | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | 3,268,417 | 2,516,241 | |||||||||||||||||||||||||||||||||
Other liabilities | 160,922 | 147,743 | |||||||||||||||||||||||||||||||||
Total Liabilities | 15,247,557 | 12,963,765 | |||||||||||||||||||||||||||||||||
Stockholders' Equity | 1,972,445 | 1,866,632 | |||||||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 17,220,002 | 84,803 | $ | 14,830,397 | 35,952 | |||||||||||||||||||||||||||||
Net Interest Income (FTE) | $ | 544,793 | $ | 431,265 | |||||||||||||||||||||||||||||||
Net Interest Spread (FTE) (4) | 3.22 | % | 3.09 | % | |||||||||||||||||||||||||||||||
Net Interest Margin (FTE): | |||||||||||||||||||||||||||||||||||
Interest Income (FTE) / Average Earning Assets | 3.94 | % | 3.44 | % | |||||||||||||||||||||||||||||||
Interest Expense / Average Earning Assets | 0.53 | % | 0.26 | % | |||||||||||||||||||||||||||||||
Net Interest Margin (FTE) (5) | 3.41 | % | 3.18 | % | |||||||||||||||||||||||||||||||
(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 2022 and 2021. These totals equal $24,590 and $20,585 for the twelve months ended December 31, 2022 and 2021, 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 | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||
Net Income Available to Common Stockholders - GAAP | $ | 70,292 | $ | 63,283 | $ | 38,522 | $ | 48,586 | $ | 47,733 | $ | 220,683 | $ | 205,531 | |||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||
PPP loan income | (109) | (323) | (891) | (1,884) | (3,721) | (3,207) | (30,900) | ||||||||||||||||||||||||||||||||||
Acquisition-related expenses | 413 | 3,417 | 12,549 | 152 | — | 16,531 | — | ||||||||||||||||||||||||||||||||||
Acquisition-related provision expense | — | — | 16,755 | — | — | 16,755 | — | ||||||||||||||||||||||||||||||||||
Tax on adjustment | (75) | (759) | (6,967) | 425 | 912 | (7,376) | 7,577 | ||||||||||||||||||||||||||||||||||
Adjusted Net Income Available to Common Stockholders - Non-GAAP | $ | 70,521 | $ | 65,618 | $ | 59,968 | $ | 47,279 | $ | 44,924 | $ | 243,386 | $ | 182,208 | |||||||||||||||||||||||||||
Average Diluted Common Shares Outstanding (in thousands) | 59,384 | 59,339 | 59,308 | 53,616 | 53,660 | 57,950 | 53,984 | ||||||||||||||||||||||||||||||||||
Diluted Earnings Per Common Share - GAAP | $ | 1.19 | $ | 1.08 | $ | 0.63 | $ | 0.91 | $ | 0.89 | $ | 3.81 | $ | 3.81 | |||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||
PPP loan income | (0.01) | — | (0.01) | (0.04) | (0.07) | (0.06) | (0.57) | ||||||||||||||||||||||||||||||||||
Acquisition-related expenses | 0.01 | 0.05 | 0.22 | — | — | 0.28 | — | ||||||||||||||||||||||||||||||||||
Acquisition-related provision expense | — | — | 0.30 | — | — | 0.30 | — | ||||||||||||||||||||||||||||||||||
Tax on adjustment | — | (0.01) | (0.13) | 0.01 | 0.02 | (0.13) | 0.14 | ||||||||||||||||||||||||||||||||||
Adjusted Diluted Earnings Per Common Share - Non-GAAP | $ | 1.19 | $ | 1.12 | $ | 1.01 | $ | 0.88 | $ | 0.84 | $ | 4.20 | $ | 3.38 | |||||||||||||||||||||||||||