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0000712534false00007125342024-07-252024-07-250000712534us-gaap:CommonStockMember2024-07-252024-07-250000712534frme:DepositarySharesMember2024-07-252024-07-25


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): July 25, 2024

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 July 25, 2024, First Merchants Corporation issued a press release to report its financial results for the second quarter ended June 30, 2024. 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 July 25, 2024, 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: July 25, 2024



EXHIBIT INDEX

Exhibit No.    Description


99.1            Press Release, dated July 25, 2024, 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
    
July 25, 2024

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 SECOND QUARTER 2024 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME)

Second Quarter 2024 Highlights:

•    Net income available to common stockholders was $39.5 million and diluted earnings per common share totaled $.68 in the second quarter of 2024, compared to $60.4 million and $1.02 in the second quarter of 2023, and $47.5 million and $.80 in the first quarter of 2024.
•    Strong capital position with Common Equity Tier 1 Capital Ratio of 11.02 percent.
•    Net interest margin totaled 3.16 percent compared to 3.10 percent on a linked quarter basis.
•    Total loans grew $191.2 million, or 6.1 percent annualized on a linked quarter basis, and $374.4 million, or 3.0 percent during the last twelve months.
•    Total deposits declined $315.5 million, or 8.5 percent annualized on a linked quarter basis.
•    Nonperforming assets to total assets were 36 basis points compared to 37 basis points on a linked quarter basis.
•    The efficiency ratio totaled 53.84 percent for the quarter.

Mark Hardwick, Chief Executive Officer, stated, "We are pleased that net interest margin improved by 6 basis points over the first quarter of 2024 and that net interest income increased by $1.5 million over the same period. Non-interest income and non-interest expense also compared favorably helping the company produce an efficiency ratio better than our stated key performance indicator of less than 55 percent." Hardwick added, "The elevated provision expense driven by higher than normal net charge-off’s was the singular item that weakened our performance in the quarter. "

Second Quarter Financial Results:

First Merchants Corporation (the “Corporation) has reported second quarter 2024 net income available to common stockholders of $39.5 million compared to $60.4 million during the same period in 2023. Diluted earnings per common share for the period totaled $.68 per share compared to the second quarter of 2023 result of $1.02 per share.

Total assets equaled $18.3 billion as of quarter-end and loans totaled $12.7 billion. During the past twelve months, total loans grew by $374.4 million, or 3.0 percent. On a linked quarter basis, loans grew $191.2 million, or 6.1 percent with growth primarily in Commercial & Industrial loans.

Investments, totaling $3.8 billion, decreased $138.4 million, or 3.6 percent, during the last twelve months and decreased $30.5 million, or 3.2 percent annualized on a linked quarter basis.

Total deposits equaled $14.6 billion as of quarter-end and decreased by $12.1 million over the past twelve months. Total deposits declined $315.5 million, or 8.5 percent annualized on a linked quarter basis with noninterest-bearing deposits remaining stable. The loan to deposit ratio for the current quarter ended at 87.0 percent.






The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $189.5 million as of quarter-end, or 1.50 percent of total loans. Loan charge-offs, net of recoveries, for the quarter totaled $39.6 million and provision expense of $24.5 million was recorded during the quarter. Reserves for unfunded commitments totaling $19.5 million remain unchanged from prior quarter. Non-performing assets to total assets were 0.36 percent for the second quarter of 2024, a decrease of one basis point compared to 0.37 percent in the prior quarter.

Net interest income, totaling $128.6 million for the quarter, increased $1.5 million, or 1.2 percent, compared to prior quarter but decreased $9.3 million, or 6.7 percent compared to the second quarter of 2023. Stated net-interest margin on a tax equivalent basis, totaling 3.16 percent, increased by six basis points compared to the first quarter of 2024 but decreased 23 basis points compared to the second quarter of 2023. During the quarter, higher yields on earnings assets and lower yields on interest bearing liabilities both contributed to the increase in net-interest margin over last quarter.

Noninterest income, totaling $31.3 million for the quarter, increased $4.7 million, or 17.6 percent, compared to the first quarter of 2024 and increased $5.0 million from the second quarter of 2023. The increase over first quarter of 2024 was driven primarily by higher gains on the sales of loans, private wealth fees, and an increase in CRA investment valuations recorded through Other Income on the Income Statement.

Noninterest expense totaled $91.4 million for the quarter, a decline of $5.5 million from the first quarter of 2024. The decrease was from lower salaries and employee benefits and lower FDIC assessments, offset by the inclusion of $0.7 million of gains on the sale of properties in the prior quarter which were recorded in Other Expenses.

The Corporation’s total risk-based capital ratio equaled 12.95 percent, common equity tier 1 capital ratio equaled 11.02 percent, and the tangible common equity ratio totaled 8.27 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.







CONFERENCE CALL

First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, July 25, 2024.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BId0844162db694c8f80a4e6caa546f714)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/d6tnudnp) during the time of the call. A replay of the webcast will be available until July 25, 2025.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

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

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

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

Forward-Looking Statements

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





CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)June 30,
20242023
ASSETS
Cash and due from banks$105,372 $108,975 
Interest-bearing deposits168,528 219,480 
Investment securities, net of allowance for credit losses of $245,000 and $245,0003,753,088 3,891,491 
Loans held for sale32,292 27,297 
Loans12,639,650 12,270,233 
Less: Allowance for credit losses - loans(189,537)(221,147)
Net loans12,450,113 12,049,086 
Premises and equipment133,245 114,402 
Federal Home Loan Bank stock41,738 41,842 
Interest receivable97,546 89,784 
Goodwill and other intangibles735,373 743,465 
Cash surrender value of life insurance306,379 307,020 
Other real estate owned4,824 7,685 
Tax asset, deferred and receivable107,080 113,724 
Other assets367,845 318,005 
TOTAL ASSETS$18,303,423 $18,032,256 
LIABILITIES
Deposits:
Noninterest-bearing$2,303,313 $2,636,017 
Interest-bearing12,265,757 11,945,138 
Total Deposits14,569,070 14,581,155 
Borrowings:
Federal funds purchased147,229 — 
Securities sold under repurchase agreements100,451 152,472 
Federal Home Loan Bank advances832,703 723,480 
Subordinated debentures and other borrowings93,589 151,325 
Total Borrowings1,173,972 1,027,277 
Interest payable18,554 13,595 
Other liabilities329,302 264,664 
Total Liabilities16,090,898 15,886,691 
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 - 58,045,653 and 59,297,148 shares7,256 7,412 
Additional paid-in capital1,191,193 1,233,593 
Retained earnings1,200,930 1,097,399 
Accumulated other comprehensive loss(211,979)(217,964)
Total Stockholders' Equity2,212,525 2,145,565 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,303,423 $18,032,256 








CONSOLIDATED STATEMENTS OF INCOMEThree Months EndedSix Months Ended
(Dollars In Thousands, Except Per Share Amounts)June 30,June 30,
2024202320242023
INTEREST INCOME
Loans receivable:
Taxable$201,413 $186,256 $399,436 $358,609 
Tax-exempt8,430 7,760 16,620 15,469 
Investment securities:
Taxable9,051 8,886 17,799 17,973 
Tax-exempt13,613 14,279 27,224 30,349 
Deposits with financial institutions2,995 3,164 9,488 3,801 
Federal Home Loan Bank stock879 1,020 1,714 1,562 
Total Interest Income236,381 221,365 472,281 427,763 
INTEREST EXPENSE
Deposits99,151 73,201 197,436 123,886 
Federal funds purchased126 123 126 1,420 
Securities sold under repurchase agreements645 979 1,677 1,827 
Federal Home Loan Bank advances6,398 6,815 13,171 13,879 
Subordinated debentures and other borrowings1,490 2,412 4,237 4,797 
Total Interest Expense107,810 83,530 216,647 145,809 
NET INTEREST INCOME128,571 137,835 255,634 281,954 
Provision for credit losses24,500 — 26,500 — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES104,071 137,835 229,134 281,954 
NONINTEREST INCOME
Service charges on deposit accounts8,214 7,813 16,121 15,172 
Fiduciary and wealth management fees8,825 7,397 17,025 15,259 
Card payment fees4,739 4,537 9,239 9,709 
Net gains and fees on sales of loans5,141 3,632 8,395 6,031 
Derivative hedge fees489 672 752 1,820 
Other customer fees460 742 887 1,259 
Earnings on cash surrender value of life insurance1,929 2,096 3,521 3,384 
Net realized losses on sales of available for sale securities(49)(1,392)(51)(2,963)
Other income1,586 822 2,083 1,645 
Total Noninterest Income31,334 26,319 57,972 51,316 
NONINTEREST EXPENSES
Salaries and employee benefits52,214 54,753 110,507 112,212 
Net occupancy6,746 6,674 14,058 13,933 
Equipment6,599 6,181 12,825 12,307 
Marketing1,773 1,102 2,971 2,411 
Outside data processing fees7,072 6,604 13,961 12,717 
Printing and office supplies354 434 707 817 
Intangible asset amortization1,771 2,182 3,728 4,379 
FDIC assessments3,278 2,740 7,565 4,136 
Other real estate owned and foreclosure expenses373 916 907 898 
Professional and other outside services3,822 4,660 7,774 8,358 
Other expenses7,411 6,347 13,345 14,145 
Total Noninterest Expenses91,413 92,593 188,348 186,313 
INCOME BEFORE INCOME TAX43,992 71,561 98,758 146,957 
Income tax expense4,067 10,699 10,892 22,016 
NET INCOME39,925 60,862 87,866 124,941 
Preferred stock dividends469 469 938 938 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$39,456 $60,393 $86,928 $124,003 
Per Share Data:
Basic Net Income Available to Common Stockholders$0.68 $1.02 $1.48 $2.09 
Diluted Net Income Available to Common Stockholders$0.68 $1.02 $1.48 $2.09 
Cash Dividends Paid to Common Stockholders$0.35 $0.34 $0.69 $0.66 
Average Diluted Common Shares Outstanding (in thousands)58,328 59,448 58,800 59,446 





FINANCIAL HIGHLIGHTS
(Dollars in thousands)Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
NET CHARGE-OFFS$39,644 $1,905 $41,897 $2,130 
AVERAGE BALANCES:
Total Assets$18,332,159 $18,170,649 $18,381,340 $18,096,832 
Total Loans12,620,530 12,369,673 12,548,798 12,253,176 
Total Earning Assets17,013,984 16,968,465 17,068,917 16,896,834 
Total Deposits14,895,867 14,719,913 14,888,536 14,572,480 
Total Stockholders' Equity2,203,361 2,139,877 2,222,750 2,111,658 
FINANCIAL RATIOS:
Return on Average Assets0.87 %1.34 %0.96 %1.38 %
Return on Average Stockholders' Equity7.16 11.29 7.82 11.74 
Return on Tangible Common Stockholders' Equity11.29 18.04 12.26 18.91 
Average Earning Assets to Average Assets92.81 93.38 92.86 93.37 
Allowance for Credit Losses - Loans as % of Total Loans1.50 1.80 1.50 1.80 
Net Charge-offs as % of Average Loans (Annualized)1.26 0.06 0.67 0.03 
Average Stockholders' Equity to Average Assets12.02 11.78 12.09 11.67 
Tax Equivalent Yield on Average Earning Assets5.69 5.36 5.67 5.21 
Interest Expense/Average Earning Assets2.53 1.97 2.54 1.73 
Net Interest Margin (FTE) on Average Earning Assets3.16 3.39 3.13 3.48 
Efficiency Ratio53.84 52.21 56.47 51.96 
Tangible Common Book Value Per Share$25.10 $23.34 $25.10 $23.34 

NONPERFORMING ASSETS
(Dollars In Thousands)June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Nonaccrual Loans$61,906 $62,478 $53,580 $53,102 $69,240 
Other Real Estate Owned and Repossessions4,824 4,886 4,831 6,480 7,685 
Nonperforming Assets (NPA)66,730 67,364 58,411 59,582 76,925 
90+ Days Delinquent1,686 2,838 172 89 428 
NPAs & 90 Day Delinquent$68,416 $70,202 $58,583 $59,671 $77,353 
Allowance for Credit Losses - Loans$189,537 $204,681 $204,934 $205,782 $221,147 
Quarterly Net Charge-offs39,644 2,253 3,148 20,365 1,905 
NPAs / Actual Assets %0.36 %0.37 %0.32 %0.33 %0.43 %
NPAs & 90 Day / Actual Assets %0.37 %0.38 %0.32 %0.33 %0.43 %
NPAs / Actual Loans and OREO %0.53 %0.54 %0.47 %0.48 %0.63 %
Allowance for Credit Losses - Loans / Actual Loans (%)1.50 %1.64 %1.64 %1.67 %1.80 %
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)1.26 %0.07 %0.10 %0.66 %0.06 %





CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)June 30,March 31,December 31,September 30,June 30,
20242024202320232023
ASSETS
Cash and due from banks$105,372 $100,514 $112,649 $125,173 $108,975 
Interest-bearing deposits168,528 410,497 436,080 348,639 219,480 
Investment securities, net of allowance for credit losses3,753,088 3,783,574 3,811,364 3,713,724 3,891,491 
Loans held for sale32,292 15,118 18,934 30,972 27,297 
Loans12,639,650 12,465,582 12,486,027 12,271,422 12,270,233 
Less: Allowance for credit losses - loans(189,537)(204,681)(204,934)(205,782)(221,147)
Net loans12,450,113 12,260,901 12,281,093 12,065,640 12,049,086 
Premises and equipment133,245 132,706 133,896 132,441 114,402 
Federal Home Loan Bank stock41,738 41,758 41,769 41,797 41,842 
Interest receivable97,546 92,550 97,664 90,011 89,784 
Goodwill and other intangibles735,373 737,144 739,101 741,283 743,465 
Cash surrender value of life insurance306,379 306,028 306,301 306,106 307,020 
Other real estate owned4,824 4,886 4,831 6,480 7,685 
Tax asset, deferred and receivable107,080 101,121 99,883 135,521 113,724 
Other assets367,845 331,006 322,322 340,476 318,005 
TOTAL ASSETS$18,303,423 $18,317,803 $18,405,887 $18,078,263 $18,032,256 
LIABILITIES
Deposits:
Noninterest-bearing$2,303,313 $2,338,364 $2,500,062 $2,554,984 $2,636,017 
Interest-bearing12,265,757 12,546,220 12,321,391 12,091,592 11,945,138 
Total Deposits14,569,070 14,884,584 14,821,453 14,646,576 14,581,155 
Borrowings:
Federal funds purchased147,229 — — — — 
Securities sold under repurchase agreements100,451 130,264 157,280 152,537 152,472 
Federal Home Loan Bank advances832,703 612,778 712,852 713,384 723,480 
Subordinated debentures and other borrowings93,589 118,612 158,644 158,665 151,325 
Total Borrowings1,173,972 861,654 1,028,776 1,024,586 1,027,277 
Interest payable18,554 19,262 18,912 16,473 13,595 
Other liabilities329,302 327,500 289,033 297,984 264,664 
Total Liabilities16,090,898 16,093,000 16,158,174 15,985,619 15,886,691 
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 outstanding7,256 7,321 7,428 7,425 7,412 
Additional paid-in capital1,191,193 1,208,447 1,236,506 1,234,402 1,233,593 
Retained earnings1,200,930 1,181,939 1,154,624 1,132,962 1,097,399 
Accumulated other comprehensive loss(211,979)(198,029)(175,970)(307,270)(217,964)
Total Stockholders' Equity2,212,525 2,224,803 2,247,713 2,092,644 2,145,565 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,303,423 $18,317,803 $18,405,887 $18,078,263 $18,032,256 









CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)June 30,March 31,December 31,September 30,June 30,
20242024202320232023
INTEREST INCOME
Loans receivable:
Taxable$201,413 $198,023 $197,523 $191,705 $186,256 
Tax-exempt8,430 8,190 8,197 8,288 7,760 
Investment securities:
Taxable9,051 8,748 8,644 8,590 8,886 
Tax-exempt13,613 13,611 13,821 13,947 14,279 
Deposits with financial institutions2,995 6,493 8,034 5,884 3,164 
Federal Home Loan Bank stock879 835 771 719 1,020 
Total Interest Income236,381 235,900 236,990 229,133 221,365 
INTEREST EXPENSE
Deposits99,151 98,285 96,655 85,551 73,201 
Federal funds purchased126 — 1 — 123 
Securities sold under repurchase agreements645 1,032 827 797 979 
Federal Home Loan Bank advances6,398 6,773 6,431 6,896 6,815 
Subordinated debentures and other borrowings1,490 2,747 3,013 2,506 2,412 
Total Interest Expense107,810 108,837 106,927 95,750 83,530 
NET INTEREST INCOME128,571 127,063 130,063 133,383 137,835 
Provision for credit losses24,500 2,000 1,500 2,000 — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES104,071 125,063 128,563 131,383 137,835 
NONINTEREST INCOME
Service charges on deposit accounts8,214 7,907 7,690 7,975 7,813 
Fiduciary and wealth management fees8,825 8,200 8,187 7,394 7,397 
Card payment fees4,739 4,500 4,437 4,716 4,537 
Net gains and fees on sales of loans5,141 3,254 4,111 5,517 3,632 
Derivative hedge fees489 263 1,049 516 672 
Other customer fees460 427 237 384 742 
Earnings on cash surrender value of life insurance1,929 1,592 3,202 1,761 2,096 
Net realized losses on sales of available for sale securities(49)(2)(2,317)(1,650)(1,392)
Other income (loss)1,586 497 (152)1,229 822 
Total Noninterest Income31,334 26,638 26,444 27,842 26,319 
NONINTEREST EXPENSES
Salaries and employee benefits52,214 58,293 60,967 55,566 54,753 
Net occupancy6,746 7,312 9,089 6,837 6,674 
Equipment6,599 6,226 6,108 5,698 6,181 
Marketing1,773 1,198 2,647 2,369 1,102 
Outside data processing fees7,072 6,889 5,875 6,573 6,604 
Printing and office supplies354 353 402 333 434 
Intangible asset amortization1,771 1,957 2,182 2,182 2,182 
FDIC assessments3,278 4,287 7,557 2,981 2,740 
Other real estate owned and foreclosure expenses373 534 1,743 677 916 
Professional and other outside services3,822 3,952 3,981 3,833 4,660 
Other expenses7,411 5,934 7,552 6,805 6,347 
Total Noninterest Expenses91,413 96,935 108,103 93,854 92,593 
INCOME BEFORE INCOME TAX43,992 54,766 46,904 65,371 71,561 
Income tax expense4,067 6,825 4,425 9,005 10,699 
NET INCOME39,925 47,941 42,479 56,366 60,862 
Preferred stock dividends469 469 469 468 469 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$39,456 $47,472 $42,010 $55,898 $60,393 
Per Share Data:
Basic Net Income Available to Common Stockholders$0.68 $0.80 $0.71 $0.95 $1.02 
Diluted Net Income Available to Common Stockholders$0.68 $0.80 $0.71 $0.94 $1.02 
Cash Dividends Paid to Common Stockholders$0.35 $0.34 $0.34 $0.34 $0.34 
Average Diluted Common Shares Outstanding (in thousands)58,328 59,273 59,556 59,503 59,448 
FINANCIAL RATIOS:
Return on Average Assets0.87 %1.04 %0.92 %1.24 %1.34 %
Return on Average Stockholders' Equity7.16 8.47 7.89 10.38 11.29 
Return on Tangible Common Stockholders' Equity11.29 13.21 12.75 16.54 18.04 
Average Earning Assets to Average Assets92.81 92.91 93.62 93.36 93.38 
Allowance for Credit Losses - Loans as % of Total Loans1.50 1.64 1.64 1.67 1.80 
Net Charge-offs as % of Average Loans (Annualized)1.26 0.07 0.10 0.66 0.06 
Average Stockholders' Equity to Average Assets12.02 12.17 11.58 11.87 11.78 
Tax Equivalent Yield on Average Earning Assets5.69 5.65 5.64 5.55 5.36 
Interest Expense/Average Earning Assets2.53 2.55 2.48 2.26 1.97 
Net Interest Margin (FTE) on Average Earning Assets3.16 3.10 3.16 3.29 3.39 
Efficiency Ratio53.84 59.21 63.26 53.91 52.21 
Tangible Common Book Value Per Share$25.10 $25.07 $25.06 $22.43 $23.34 





LOANS
(Dollars In Thousands)June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Commercial and industrial loans$3,949,817 $3,722,365 $3,670,948 $3,490,953 $3,531,395 
Agricultural land, production and other loans to farmers239,926 234,431 263,414 233,838 230,003 
Real estate loans:
Construction823,267 941,726 957,545 1,022,261 949,918 
Commercial real estate, non-owner occupied2,323,533 2,368,360 2,400,839 2,360,596 2,379,819 
Commercial real estate, owner occupied1,174,195 1,137,894 1,162,083 1,153,707 1,179,739 
Residential2,370,905 2,316,490 2,288,921 2,257,385 2,248,473 
Home equity631,104 618,258 617,571 609,352 614,366 
Individuals' loans for household and other personal expenditures162,089 161,459 168,388 176,523 172,896 
Public finance and other commercial loans964,814 964,599 956,318 966,807 963,624 
Loans12,639,650 12,465,582 12,486,027 12,271,422 12,270,233 
Allowance for credit losses - loans(189,537)(204,681)(204,934)(205,782)(221,147)
NET LOANS$12,450,113 $12,260,901 $12,281,093 $12,065,640 $12,049,086 

DEPOSITS
(Dollars In Thousands)June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Demand deposits$7,757,679 $7,771,976 $7,965,862 $7,952,040 $8,045,455 
Savings deposits4,339,161 4,679,593 4,516,433 4,572,162 4,530,255 
Certificates and other time deposits of $100,000 or more1,415,131 1,451,443 1,408,985 1,280,607 1,160,303 
Other certificates and time deposits889,949 901,280 849,906 761,196 680,965 
Brokered certificates of deposits167,150 80,292 80,267 80,571 164,177 
TOTAL DEPOSITS$14,569,070 $14,884,584 $14,821,453 $14,646,576 $14,581,155 






CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Three Months Ended
June 30, 2024June 30, 2023
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
ASSETS
Interest-bearing deposits$322,647 $2,995 3.71 %$343,253 $3,164 3.69 %
Federal Home Loan Bank stock41,749 879 8.42 41,873 1,020 9.74 
Investment Securities: (1)
Taxable1,788,749 9,051 2.02 1,876,676 8,886 1.89 
Tax-exempt (2)
2,240,309 17,232 3.08 2,336,990 18,075 3.09 
Total Investment Securities4,029,058 26,283 2.61 4,213,666 26,961 2.56 
Loans held for sale28,585 431 6.03 19,328 300 6.21 
Loans: (3)
Commercial8,691,746 160,848 7.40 8,605,339 150,766 7.01 
Real estate mortgage2,150,591 23,799 4.43 2,031,136 20,345 4.01 
Installment823,417 16,335 7.94 831,775 14,844 7.14 
Tax-exempt (2)
926,191 10,670 4.61 882,095 9,823 4.45 
Total Loans12,620,530 212,083 6.72 12,369,673 196,078 6.34 
Total Earning Assets17,013,984 242,240 5.69 %16,968,465 227,223 5.36 %
Total Non-Earning Assets1,318,175 1,202,184 
TOTAL ASSETS$18,332,159 $18,170,649 
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits$5,586,549 $40,994 2.94 %$5,546,232 $34,574 2.49 %
Money market deposits3,036,398 27,230 3.59 2,766,876 18,684 2.70 
Savings deposits1,508,734 3,476 0.92 1,724,816 3,884 0.90 
Certificates and other time deposits2,414,967 27,451 4.55 1,883,998 16,059 3.41 
Total Interest-Bearing Deposits12,546,648 99,151 3.16 11,921,922 73,201 2.46 
Borrowings885,919 8,659 3.91 1,110,486 10,329 3.72 
Total Interest-Bearing Liabilities13,432,567 107,810 3.21 13,032,408 83,530 2.56 
Noninterest-bearing deposits2,349,219 2,797,991 
Other liabilities347,012 200,373 
Total Liabilities16,128,798 16,030,772 
STOCKHOLDERS' EQUITY2,203,361 2,139,877 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,332,159 107,810 $18,170,649 83,530 
Net Interest Income (FTE)$134,430 $143,693 
Net Interest Spread (FTE) (4)
2.48 %2.80 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets5.69 %5.36 %
Interest Expense / Average Earning Assets2.53 %1.97 %
Net Interest Margin (FTE) (5)
3.16 %3.39 %
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $5,859 and $5,858 for the three months ended June 30, 2024 and 2023, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.













CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Six Months Ended
June 30, 2024June 30, 2023
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
Assets:
Federal Funds Sold
Interest-bearing deposits$449,173 $9,488 4.22 %$258,504 $3,801 2.94 %
Federal Home Loan Bank stock41,757 1,714 8.21 40,821 1,562 7.65 
Investment Securities: (1)
Taxable1,785,903 17,799 1.99 1,900,247 17,973 1.89 
Tax-exempt (2)
2,243,286 34,461 3.07 2,444,086 38,416 3.14 
Total Investment Securities4,029,189 52,260 2.59 4,344,333 56,389 2.60 
Loans held for sale25,184 759 6.03 21,952 660 6.01 
Loans: (3)
Commercial8,644,927 320,057 7.40 8,544,945 290,428 6.80 
Real estate mortgage2,140,769 46,156 4.31 1,972,680 38,736 3.93 
Installment822,616 32,464 7.89 836,088 28,785 6.89 
Tax-exempt (2)
915,302 21,038 4.60 877,511 19,581 4.46 
Total Loans12,548,798 420,474 6.70 12,253,176 378,190 6.17 
Total Earning Assets17,068,917 483,936 5.67 %16,896,834 439,942 5.21 %
Total Non-Earning Assets1,312,423 1,199,998 
Total Assets$18,381,340 $18,096,832 
Liabilities:
Interest-Bearing deposits:
Interest-bearing deposits$5,503,185 $80,484 2.92 %$5,405,696 $59,237 2.19 %
Money market deposits3,040,938 54,613 3.59 2,756,519 32,261 2.34 
Savings deposits1,534,305 7,277 0.95 1,775,233 6,849 0.77 
Certificates and other time deposits2,421,413 55,062 4.55 1,676,291 25,539 3.05 
Total Interest-Bearing Deposits12,499,841 197,436 3.16 11,613,739 123,886 2.13 
Borrowings948,866 19,211 4.05 1,201,392 21,923 3.65 
Total Interest-Bearing Liabilities13,448,707 216,647 3.22 12,815,131 145,809 2.28 
Noninterest-bearing deposits2,388,695 2,958,741 
Other liabilities321,188 211,302 
Total Liabilities16,158,590 15,985,174 
Stockholders' Equity2,222,750 2,111,658 
Total Liabilities and Stockholders' Equity$18,381,340 216,647 $18,096,832 145,809 
Net Interest Income (FTE)$267,289 $294,133 
Net Interest Spread (FTE) (4)
2.45 %2.93 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets5.67 %5.21 %
Interest Expense / Average Earning Assets2.54 %1.73 %
Net Interest Margin (FTE) (5)
3.13 %3.48 %
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $11,655 and $12,179 for the six months ended June 30, 2024 and 2023, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.







ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)Three Months EndedSix Months Ended
June 30,March 31,December 31,September 30,June 30,June 30,June 30,
2024202420232023202320242023
Net Income Available to Common Stockholders - GAAP$39,456 $47,472 $42,010 $55,898 $60,393 $86,928 $124,003 
Adjustments:
PPP loan income— — (7)(8)(9)— (34)
Non-core expenses1,2
— 3,481 12,682 — — 3,481 — 
Tax on adjustments— (848)(3,088)2 2 (848)8 
Adjusted Net Income Available to Common Stockholders - Non-GAAP$39,456 $50,105 $51,597 $55,892 $60,386 $89,561 $123,977 
Average Diluted Common Shares Outstanding (in thousands)58,328 59,273 59,556 59,503 59,448 58,800 59,446 
Diluted Earnings Per Common Share - GAAP$0.68 $0.80 $0.71 $0.94 $1.02 $1.48 $2.09 
Adjustments:
PPP loan income— — — — — — — 
Non-core expenses1,2
— 0.06 0.21 — — 0.06 — 
Tax on adjustments— (0.01)(0.05)— — (0.01)— 
Adjusted Diluted Earnings Per Common Share - Non-GAAP$0.68 $0.85 $0.87 $0.94 $1.02 $1.53 $2.09 
1 - Non-core expenses in 4Q23 included $6.3 million from early retirement and severance costs, $4.3 million from the FDIC special assessment, and $2.1 million from a lease termination.
2 - Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
NET INTEREST MARGIN ("NIM"), ADJUSTED
(Dollars in Thousands, Except Per Share Amounts)
Three Months EndedSix Months Ended
June 30,March 31,December 31,September 30,June 30,June 30,June 30,
2024202420232023202320242023
Net Interest Income (GAAP)$128,571 $127,063 $130,063 $133,383 $137,835 $255,634 $281,954 
Fully Taxable Equivalent ("FTE") Adjustment5,859 5,795 5,853 5,911 5,858 11,655 12,179 
Net Interest Income (FTE) (non-GAAP)$134,430 $132,858 $135,916 $139,294 $143,693 $267,289 $294,133 
Average Earning Assets (GAAP)$17,013,984 $17,123,851 $17,222,714 $16,947,669 $16,968,465 $17,068,917 $16,896,834 
Net Interest Margin (GAAP)3.02 %2.97 %3.02 %3.15 %3.25 %3.00 %3.34 %
Net Interest Margin (FTE) (non-GAAP)3.16 %3.10 %3.16 %3.29 %3.39 %3.13 %3.48 %

RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)Three Months EndedSix Months Ended
June 30,March 31,December 31,September 30,June 30,June 30,June 30,
2024202420232023202320242023
Total Average Stockholders' Equity (GAAP)$2,203,361 $2,242,139 $2,130,993 $2,154,232 $2,139,877 $2,222,750 $2,111,658 
Less: Average Preferred Stock(25,125)(25,125)(25,125)(25,125)(25,125)(25,125)(25,125)
Less: Average Intangible Assets, Net of Tax(730,980)(732,432)(734,007)(735,787)(737,489)(731,706)(738,334)
Average Tangible Common Equity, Net of Tax (Non-GAAP)$1,447,256 $1,484,582 $1,371,861 $1,393,320 $1,377,263 $1,465,919 $1,348,199 
Net Income Available to Common Stockholders (GAAP)$39,456 $47,472 $42,010 $55,898 $60,393 $86,928 $124,003 
Plus: Intangible Asset Amortization, Net of Tax1,399 1,546 1,724 1,724 1,724 2,945 3,458 
Tangible Net Income (Non-GAAP)$40,855 $49,018 $43,734 $57,622 $62,117 $89,873 $127,461 
Return on Tangible Common Equity (Non-GAAP)11.29 %13.21 %12.75 %16.54 %18.04 %12.26 %18.91 %