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frme-20231026
0000712534false00007125342023-10-262023-10-260000712534us-gaap:CommonStockMember2023-10-262023-10-260000712534frme:DepositarySharesMember2023-10-262023-10-26


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
DATE OF REPORT (Date of earliest event reported): October 26, 2023

FIRST MERCHANTS CORPORATION
(Exact name of registrant as specified in its charter)
Indiana
(State or other jurisdiction of incorporation)
001-4134235-1544218
(Commission File Number)(IRS Employer Identification No.)

200 East Jackson Street
P.O. Box 792
Muncie, IN 47305-2814
(Address of principal executive offices, including zip code)
 
(765) 747-1500
(Registrant's telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
Title of Each ClassTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.125 stated value per shareFRMEThe Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/100th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series AFRMEPThe Nasdaq Stock Market LLC

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On October 26, 2023, First Merchants Corporation issued a press release to report its financial results for the third quarter ended September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Current Report on Form 8-K, including Exhibit No. 99.1 hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section. The information in this Current Report shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(a)    Not applicable.

(b)    Not applicable.

(c)    Not applicable.

(d)    Exhibits.

Exhibit 99.1 Press Release, dated October 26, 2023, issued by First Merchants Corporation

Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


First Merchants Corporation
(Registrant)
By: /s/ Michele M. Kawiecki
                        
Michele M. Kawiecki

Executive Vice President, Chief Financial Officer
(Principal Financial and Accounting Officer)
Dated: October 26, 2023



EXHIBIT INDEX

Exhibit No.    Description


99.1            Press Release, dated October 26, 2023, issued by First Merchants Corporation

104            Cover Page Interactive Data File (embedded within the Inline XBRL document)
Document




N / E / W / S R / E / L / E / A / S / E
    
October 26, 2023

FOR IMMEDIATE RELEASE
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

FIRST MERCHANTS CORPORATION ANNOUNCES THIRD QUARTER 2023 EARNINGS PER SHARE

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.

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,
20232022
ASSETS
Cash and due from banks$125,173 $119,532 
Interest-bearing deposits348,639 179,593 
Investment securities, net of allowance for credit losses of $245,000 and $245,0003,713,724 4,294,768 
Loans held for sale30,972 25,394 
Loans12,271,422 11,650,002 
Less: Allowance for credit losses - loans(205,782)(226,702)
Net loans12,065,640 11,423,300 
Premises and equipment132,441 116,306 
Federal Home Loan Bank stock41,797 38,056 
Interest receivable90,011 71,605 
Goodwill and other intangibles741,283 750,713 
Cash surrender value of life insurance306,106 306,932 
Other real estate owned6,480 6,454 
Tax asset, deferred and receivable135,521 142,110 
Other assets258,861 244,222 
TOTAL ASSETS$17,996,648 $17,718,985 
LIABILITIES
Deposits:
Noninterest-bearing$2,554,984 $3,356,651 
Interest-bearing12,091,592 11,078,174 
Total Deposits14,646,576 14,434,825 
Borrowings:
Federal funds purchased— 185,000 
Securities sold under repurchase agreements152,537 194,482 
Federal Home Loan Bank advances713,384 643,769 
Subordinated debentures and other borrowings158,665 151,301 
Total Borrowings1,024,586 1,174,552 
Interest payable16,473 4,971 
Other liabilities216,369 197,971 
Total Liabilities15,904,004 15,812,319 
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares125 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 shares25,000 25,000 
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 59,398,022 and 59,145,414 shares7,425 7,393 
Additional paid-in capital1,234,402 1,226,695 
Retained earnings1,132,962 961,542 
Accumulated other comprehensive loss(307,270)(314,089)
Total Stockholders' Equity2,092,644 1,906,666 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$17,996,648 $17,718,985 







CONSOLIDATED STATEMENTS OF INCOMEThree Months EndedNine Months Ended
(Dollars In Thousands, Except Per Share Amounts)September 30,September 30,
2023202220232022
INTEREST INCOME
Loans receivable:
Taxable$191,705 $128,504 $550,314 $314,366 
Tax-exempt8,288 6,500 23,757 18,194 
Investment securities:
Taxable8,590 10,055 26,563 28,937 
Tax-exempt13,947 17,261 44,296 50,348 
Deposits with financial institutions5,884 704 9,685 1,544 
Federal Home Loan Bank stock719 314 2,281 635 
Total Interest Income229,133 163,338 656,896 414,024 
INTEREST EXPENSE
Deposits85,551 16,644 209,437 29,423 
Federal funds purchased— 418 1,420 494 
Securities sold under repurchase agreements797 372 2,624 595 
Federal Home Loan Bank advances6,896 3,493 20,775 6,485 
Subordinated debentures and other borrowings2,506 2,105 7,303 5,780 
Total Interest Expense95,750 23,032 241,559 42,777 
NET INTEREST INCOME133,383 140,306 415,337 371,247 
Provision for credit losses2,000 — 2,000 16,755 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES131,383 140,306 413,337 354,492 
NONINTEREST INCOME
Service charges on deposit accounts7,975 7,165 23,147 21,274 
Fiduciary and wealth management fees7,394 7,221 22,653 22,187 
Card payment fees4,716 4,776 14,425 15,674 
Net gains and fees on sales of loans5,517 2,543 11,548 7,968 
Derivative hedge fees516 700 2,336 3,062 
Other customer fees384 501 1,643 1,573 
Earnings on cash surrender value of life insurance1,761 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 Income27,842 29,617 79,158 83,791 
NONINTEREST EXPENSES
Salaries and employee benefits55,566 56,002 167,778 154,562 
Net occupancy6,837 6,738 20,770 19,573 
Equipment5,698 5,997 18,005 17,797 
Marketing2,369 2,401 4,780 4,551 
Outside data processing fees6,573 6,827 19,290 16,071 
Printing and office supplies333 472 1,150 1,198 
Intangible asset amortization2,182 2,303 6,561 5,972 
FDIC assessments2,981 2,824 7,117 7,940 
Other real estate owned and foreclosure expenses677 328 1,575 626 
Professional and other outside services3,833 4,461 12,191 17,681 
Other expenses6,805 8,025 20,950 20,045 
Total Noninterest Expenses93,854 96,378 280,167 266,016 
INCOME BEFORE INCOME TAX65,371 73,545 212,328 172,267 
Income tax expense9,005 9,793 31,021 20,938 
NET INCOME56,366 63,752 181,307 151,329 
Preferred stock dividends468 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 EndedNine Months Ended
September 30,September 30,
2023202220232022
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 Loans12,287,632 11,488,203 12,264,787 10,647,950 
Total Earning Assets16,947,669 16,508,914 16,913,965 15,744,040 
Total Deposits14,735,592 14,577,532 14,627,448 14,074,696 
Total Stockholders' Equity2,154,232 2,018,156 2,126,005 1,977,299 
FINANCIAL RATIOS:
Return on Average Assets1.24 %1.43 %1.33 %1.19 %
Return on Average Stockholders' Equity10.38 12.54 11.28 10.14 
Return on Tangible Common Stockholders' Equity16.54 20.85 18.10 16.22 
Average Earning Assets to Average Assets93.36 92.90 93.37 92.54 
Allowance for Credit Losses - Loans as % of Total Loans1.67 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 Assets11.87 11.36 11.74 11.62 
Tax Equivalent Yield on Average Earning Assets5.55 4.11 5.32 3.66 
Interest Expense/Average Earning Assets2.26 0.56 1.90 0.36 
Net Interest Margin (FTE) on Average Earning Assets3.29 3.55 3.42 3.30 
Efficiency Ratio53.91 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,
20232023202320222022
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 Repossessions6,480 7,685 7,777 6,431 6,454 
Nonperforming Assets (NPA)59,582 76,925 54,353 48,979 50,157 
90+ Days Delinquent89 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,
20232023202320222022
ASSETS
Cash and due from banks$125,173 $108,975 $125,818 $122,594 $119,532 
Interest-bearing deposits348,639 219,480 352,695 126,061 179,593 
Investment securities, net of allowance for credit losses3,713,724 3,891,491 4,057,389 4,263,788 4,294,768 
Loans held for sale30,972 27,297 9,408 9,094 25,394 
Loans12,271,422 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 loans12,065,640 12,049,086 12,018,409 11,780,617 11,423,300 
Premises and equipment132,441 114,402 115,857 117,118 116,306 
Federal Home Loan Bank stock41,797 41,842 41,878 38,525 38,056 
Interest receivable90,011 89,784 85,515 85,070 71,605 
Goodwill and other intangibles741,283 743,465 745,647 747,844 750,713 
Cash surrender value of life insurance306,106 307,020 309,090 308,311 306,932 
Other real estate owned6,480 7,685 7,777 6,431 6,454 
Tax asset, deferred and receivable135,521 113,724 103,070 111,222 142,110 
Other assets258,861 254,161 206,355 221,631 244,222 
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-bearing12,091,592 11,945,138 11,738,932 11,209,328 11,078,174 
Total Deposits14,646,576 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 agreements152,537 152,472 179,067 167,413 194,482 
Federal Home Loan Bank advances713,384 723,480 823,577 823,674 643,769 
Subordinated debentures and other borrowings158,665 151,325 151,312 151,298 151,301 
Total Borrowings1,024,586 1,027,277 1,153,976 1,313,945 1,174,552 
Interest payable16,473 13,595 11,979 7,530 4,971 
Other liabilities216,369 200,820 187,218 199,316 197,971 
Total Liabilities15,904,004 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 shares125 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 shares25,000 25,000 25,000 25,000 25,000 
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding7,425 7,412 7,407 7,396 7,393 
Additional paid-in capital1,234,402 1,233,593 1,231,532 1,228,626 1,226,695 
Retained earnings1,132,962 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' Equity2,092,644 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,
20232023202320222022
INTEREST INCOME
Loans receivable:
Taxable$191,705 $186,256 $172,353 $156,102 $128,504 
Tax-exempt8,288 7,760 7,709 6,930 6,500 
Investment securities:
Taxable8,590 8,886 9,087 9,417 10,055 
Tax-exempt13,947 14,279 16,070 17,033 17,261 
Deposits with financial institutions5,884 3,164 637 959 704 
Federal Home Loan Bank stock719 1,020 542 541 314 
Total Interest Income229,133 221,365 206,398 190,982 163,338 
INTEREST EXPENSE
Deposits85,551 73,201 50,685 33,516 16,644 
Federal funds purchased— 123 1,297 808 418 
Securities sold under repurchase agreements797 979 848 541 372 
Federal Home Loan Bank advances6,896 6,815 7,064 4,932 3,493 
Subordinated debentures and other borrowings2,506 2,412 2,385 2,229 2,105 
Total Interest Expense95,750 83,530 62,279 42,026 23,032 
NET INTEREST INCOME133,383 137,835 144,119 148,956 140,306 
Provision for credit losses2,000 — — — — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES131,383 137,835 144,119 148,956 140,306 
NONINTEREST INCOME
Service charges on deposit accounts7,975 7,813 7,359 7,097 7,165 
Fiduciary and wealth management fees7,394 7,397 7,862 7,501 7,221 
Card payment fees4,716 4,537 5,172 4,533 4,776 
Net gains and fees on sales of loans5,517 3,632 2,399 2,087 2,543 
Derivative hedge fees516 672 1,148 326 700 
Other customer fees384 742 517 362 501 
Earnings on cash surrender value of life insurance1,761 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 Income27,842 26,319 24,997 24,150 29,617 
NONINTEREST EXPENSES
Salaries and employee benefits55,566 54,753 57,459 52,331 56,002 
Net occupancy6,837 6,674 7,259 6,638 6,738 
Equipment5,698 6,181 6,126 6,148 5,997 
Marketing2,369 1,102 1,309 3,157 2,401 
Outside data processing fees6,573 6,604 6,113 5,611 6,827 
Printing and office supplies333 434 383 390 472 
Intangible asset amortization2,182 2,182 2,197 2,303 2,303 
FDIC assessments2,981 2,740 1,396 2,295 2,824 
Other real estate owned and foreclosure expenses677 916 (18)197 328 
Professional and other outside services3,833 4,660 3,698 3,961 4,461 
Other expenses6,805 6,347 7,798 6,668 8,025 
Total Noninterest Expenses93,854 92,593 93,720 89,699 96,378 
INCOME BEFORE INCOME TAX65,371 71,561 75,396 83,407 73,545 
Income tax expense9,005 10,699 11,317 12,647 9,793 
NET INCOME56,366 60,862 64,079 70,760 63,752 
Preferred stock dividends468 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 Assets1.24 %1.34 %1.42 %1.59 %1.43 %
Return on Average Stockholders' Equity10.38 11.29 12.21 14.36 12.54 
Return on Tangible Common Stockholders' Equity16.54 18.04 19.82 24.21 20.85 
Average Earning Assets to Average Assets93.36 93.38 93.35 93.66 92.90 
Allowance for Credit Losses - Loans as % of Total Loans1.67 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 Assets11.87 11.78 11.56 10.98 11.36 
Tax Equivalent Yield on Average Earning Assets5.55 5.36 5.06 4.73 4.11 
Interest Expense/Average Earning Assets2.26 1.97 1.48 1.01 0.56 
Net Interest Margin (FTE) on Average Earning Assets3.29 3.39 3.58 3.72 3.55 
Efficiency Ratio53.91 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,
20232023202320222022
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 farmers233,838 230,003 219,598 241,793 221,954 
Real estate loans:
Construction1,022,261 949,918 960,979 835,582 828,923 
Commercial real estate, non-owner occupied2,360,596 2,379,819 2,375,410 2,407,475 2,299,272 
Commercial real estate, owner occupied1,153,707 1,179,739 1,244,117 1,246,528 1,268,567 
Residential2,257,385 2,248,473 2,185,943 2,096,655 1,990,668 
Home equity609,352 614,366 621,354 630,632 621,619 
Individuals' loans for household and other personal expenditures176,523 172,896 172,389 175,211 173,225 
Public finance and other commercial loans966,807 963,624 959,467 932,892 915,245 
Loans12,271,422 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,
20232023202320222022
Demand deposits$7,952,040 $8,045,455 $8,422,387 $8,448,797 $8,534,950 
Savings deposits4,572,162 4,530,255 4,499,487 4,657,140 5,054,490 
Certificates and other time deposits of $100,000 or more1,280,607 1,160,303 1,040,379 742,539 443,588 
Other certificates and time deposits761,196 680,965 574,886 468,712 381,365 
Brokered certificates of deposits80,571 164,177 166,148 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, 2023September 30, 2022
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
ASSETS
Interest-bearing deposits$502,967 $5,884 4.68 %$190,434 $704 1.48 %
Federal Home Loan Bank stock41,826 719 6.88 38,089 314 3.30 
Investment Securities: (1)
Taxable1,817,219 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 Securities4,115,244 26,245 2.55 4,792,188 31,904 2.66 
Loans held for sale24,227 386 6.37 20,039 266 5.74 
Loans: (3)
Commercial8,456,527 153,993 7.28 8,177,895 103,227 5.05 
Real estate mortgage2,079,067 21,618 4.16 1,666,173 14,701 3.53 
Installment827,318 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 Loans12,287,632 202,196 6.58 11,488,203 136,732 4.76 
Total Earning Assets16,947,669 235,044 5.55 %16,508,914 169,654 4.11 %
Total Non-Earning Assets1,204,570 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 deposits2,923,798 23,607 3.23 3,096,423 5,390 0.70 
Savings deposits1,641,338 3,844 0.94 1,978,596 1,538 0.31 
Certificates and other time deposits2,106,910 20,320 3.86 857,033 993 0.46 
Total Interest-Bearing Deposits12,097,875 85,551 2.83 11,116,139 16,644 0.60 
Borrowings1,032,180 10,199 3.95 1,013,893 6,388 2.52 
Total Interest-Bearing Liabilities13,130,055 95,750 2.92 12,130,032 23,032 0.76 
Noninterest-bearing deposits2,637,717 3,461,393 
Other liabilities230,235 161,042 
Total Liabilities15,998,007 15,752,467 
STOCKHOLDERS' EQUITY2,154,232 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 Assets5.55 %4.11 %
Interest Expense / Average Earning Assets2.26 %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, 2023September 30, 2022
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
Assets:
Interest-bearing deposits$340,887 $9,685 3.79 %$333,818 $1,544 0.62 %
Federal Home Loan Bank stock41,160 2,281 7.39 34,742 635 2.44 
Investment Securities: (1)
Taxable1,872,267 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 Securities4,267,131 82,634 2.58 4,727,530 92,669 2.61 
Loans held for sale22,398 1,046 6.23 19,020 622 4.36 
Loans: (3)
Commercial8,515,148 444,422 6.96 7,731,591 253,770 4.38 
Real estate mortgage2,008,852 60,354 4.01 1,350,969 35,199 3.47 
Installment833,133 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 Loans12,264,787 580,386 6.31 10,647,950 337,396 4.22 
Total Earning Assets16,913,965 674,986 5.32 %15,744,040 432,244 3.66 %
Total Non-Earning Assets1,201,539 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 deposits2,812,891 55,868 2.65 2,880,603 8,392 0.39 
Savings deposits1,730,110 10,693 0.82 1,937,761 2,895 0.20 
Certificates and other time deposits1,821,408 45,860 3.36 828,158 2,437 0.39 
Total Interest-Bearing Deposits11,776,891 209,437 2.37 10,841,771 29,423 0.36 
Borrowings1,144,368 32,122 3.74 817,894 13,354 2.18 
Total Interest-Bearing Liabilities12,921,259 241,559 2.49 11,659,665 42,777 0.49 
Noninterest-bearing deposits2,850,557 3,232,925 
Other liabilities217,683 143,041 
Total Liabilities15,989,499 15,035,631 
Stockholders' Equity2,126,005 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 Assets5.32 %3.66 %
Interest Expense / Average Earning Assets1.90 %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 EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
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 adjustment2 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 EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2023202320232022202220232022
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 Tax1,724 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 %