SEC Filing | First Merchants Corporation

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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): April 25, 2018

Commission File Number 0-17071

FIRST MERCHANTS CORPORATION

(Exact name of registrant as specified in its charter)



INDIANA	35-1544218
(State or other jurisdiction of incorporation)	(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)

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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o 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 o

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. o

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On April 25, 2018, First Merchants Corporation issued a press release to report its financial results for the first quarter ended March 31, 2018. 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.

(d) Exhibits.

Exhibit 99.1 Press Release, dated April 25, 2018, issued by First Merchants Corporation

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/ Mark K. Hardwick

Mark K. Hardwick

Executive Vice President,

Chief Financial Officer and Chief Operating Officer

Dated: April 25, 2018

EXHIBIT INDEX


Exhibit No.	Description

99.1 Press Release, dated April 25, 2018, issued by First Merchants Corporation

Exhibit

N / E / W / S R / E / L / E / A / S / E

April 25, 2018

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 32 PERCENT INCREASE IN FIRST QUARTER 2018 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME) has reported first quarter 2018 net income of $36.7 million, an increase of 58 percent, compared to $23.2 million during the same period in 2017. Earnings per share for the period totaled $.74 per share, an increase of 32 percent, compared to the first quarter of 2017 result of $.56 per share. The increase in net income was driven by several factors including strong core banking performance, two acquisitions that were fully integrated during the second half of 2017 and the impact of tax reform.

Total assets equaled $9.5 billion as of quarter-end and loans totaled $6.9 billion. The Corporation’s loan portfolio increased by $1.6 billion, or 31 percent, during the past twelve months. The acquisition of Independent Alliance Banks, Inc. in Fort Wayne, Indiana and the acquisition of The Arlington Bank in Upper Arlington, Ohio accounted for $950 million, or 18 percent, of loan growth. Additionally, organic loan growth totaled $677 million, or 13 percent. Total deposits equaled $7.3 billion as of quarter-end, an increase of $1.7 billion, or 30 percent. Our acquisition activity accounted for deposit growth of $1.1 billion, or 20 percent, while organic deposit growth totaled $577 million, or 10 percent.

Michael C. Rechin, President and Chief Executive Officer, stated, “Our first quarter of 2018 results reflect the strength of First Merchants' earning power and the health of our franchise marketplaces. 2017 was a busy M&A year for the company and it makes First Merchants an even stronger, more impactful player in the Midwest banking industry. Our management team is also pleased that organic balance sheet growth maintained momentum throughout the integration process. We are off to a productive start in 2018 posting a return on assets of 1.57 percent, fueled by a 51.3 percent efficiency ratio. Our organic loan and deposit growth of nearly 9 percent, should produce continued earnings improvement and stock price appreciation."

Net-interest income totaled $80 million for the quarter, an increase of $19 million, or 31 percent. Net-interest margin totaling 3.92 percent, declined by 6 basis points and included a reduction of 13 basis points related to tax reform. Yields on earning assets totaled 4.57 percent and the cost of supporting liabilities totaled .65 percent.

Non-interest income totaled $19.6 million for the quarter, a $4.7 million increase over the first quarter of 2017. Non-interest expense totaled $53.7 million, up from the 2017 total of $43.1 million. Increases in both non-interest income and non-interest expense are reflective of a significantly larger franchise as a result of the acquisition activity in 2017, which drove higher net income and improved efficiency in the quarter.

Tax expense for the first quarter of 2018 totaled $6.6 million, or 15.3 percent of pre-tax net income. Tax expense in the prior year totaled $7.2 million, or 23.6 percent. The improvement in tax expense was due to a decline in the federal tax rate from 35 percent to 21 percent. Our effective rate is 5.7 percentage points lower than the federal tax rate of 21 percent, primary due to approximately $10.9 million of tax-free loan, securities and life insurance income in the quarter.

The Corporation’s provision expense totaled $2.5 million due to loan growth and net charge-offs totaling $1.1 million during the quarter. The allowance for loan losses totaled $76.4 million as of March 31, 2018, up from $68.2 million as of March 31, 2017. Non-accrual loans totaled $27.5 million as of quarter-end and the allowance is 1.11 percent of total loans and 1.32 percent of non-purchased loans.

As of March 31, 2018, the Corporation’s total risk-based capital ratio equaled 13.69 percent, common equity tier 1 capital ratio equaled 11.04 percent, and the tangible common equity ratio totaled 9.32 percent.

CONFERENCE CALL

First Merchants Corporation will conduct a first quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, April 26, 2018.

To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's first quarter earnings release. International callers please call +1 412-317-1073. A replay of the call will be available until May 26, 2018. To access a replay of the call, US participants should dial (Toll Free) 877-344-7529, or for International participants, dial +1 412-317-0088. The replay passcode is 10117758.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme180426.html during the time of the call. A replay of the web cast will be available until April 26, 2019.

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 Lafayette Bank & Trust and First Merchants Private Wealth Advisors (each 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, credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

* * * *



CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	March 31,
	2018			2017
ASSETS
Cash and cash equivalents	$	128,828		$	104,247
Interest-bearing time deposits	24,233			20,439
Investment securities	1,543,820			1,327,217
Loans held for sale	4,469			1,262
Loans	6,901,696			5,274,909
Less: Allowance for loan losses	(76,420		)	(68,225		)
Net loans	6,825,276			5,206,684
Premises and equipment	94,741			91,311
Federal Home Loan Bank stock	24,588			17,964
Interest receivable	35,223			25,174
Goodwill and other intangibles	474,777			257,963
Cash surrender value of life insurance	221,949			202,574
Other real estate owned	9,698			8,293
Tax asset, deferred and receivable	24,177			32,074
Other assets	61,017			30,991
TOTAL ASSETS	$	9,472,796		$	7,326,193
LIABILITIES
Deposits:
Noninterest-bearing	$	1,698,958		$	1,373,778
Interest-bearing	5,628,677			4,261,531
Total Deposits	7,327,635			5,635,309
Borrowings:
Federal funds purchased	50,000			102,000
Securities sold under repurchase agreements	138,910			139,007
Federal Home Loan Bank advances	449,419			338,919
Subordinated debentures and term loans	138,297			128,862
Total Borrowings	776,626			708,788
Interest payable	5,376			3,875
Other liabilities	50,086			48,751
Total Liabilities	8,159,723			6,396,723
STOCKHOLDERS' EQUITY
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 shares
Issued and outstanding - 125 shares	125			125
Common Stock, $.125 stated value:
Authorized -- 100,000,000 and 50,000,000 shares ⁽¹⁾
Issued and outstanding - 49,243,096 and 41,047,543 shares	6,155			5,131
Additional paid-in capital	834,894			509,953
Retained earnings	493,624			417,983
Accumulated other comprehensive income (loss)	(21,725		)	(3,722		)
Total Stockholders' Equity	1,313,073			929,470
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	9,472,796		$	7,326,193

⁽¹⁾On May 1, 2017, the shareholders of First Merchants Corporation approved an amendment to the Articles of Incorporation to increase the number of shares of common stock authorized to issue from 50,000,000 to 100,000,000 shares.



CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
(Dollars In Thousands, Except Per Share Amounts)	March 31,
	2018		2017
INTEREST INCOME
Loans receivable:
Taxable	$	78,267	$	56,357
Tax-exempt	3,596		2,333
Investment securities:
Taxable	5,096		4,308
Tax-exempt	6,126		5,003
Deposits with financial institutions	131		44
Federal Home Loan Bank stock	404		189
Total Interest Income	93,620		68,234
INTEREST EXPENSE
Deposits	9,002		4,124
Federal funds purchased	380		228
Securities sold under repurchase agreements	173		88
Federal Home Loan Bank advances	2,159		978
Subordinated debentures and term loans	1,990		1,817
Total Interest Expense	13,704		7,235
NET INTEREST INCOME	79,916		60,999
Provision for loan losses	2,500		2,385
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	77,416		58,614
OTHER INCOME
Service charges on deposit accounts	4,777		4,174
Fiduciary and wealth management fees	3,416		2,640
Other customer fees	5,416		4,863
Earnings on cash surrender value of life insurance	1,176		898
Net gains and fees on sales of loans	1,821		1,275
Net realized gains on sales of available for sale securities	1,609		598
Other income	1,346		398
Total Other Income	19,561		14,846
OTHER EXPENSES
Salaries and employee benefits	32,226		25,732
Net occupancy	4,670		4,216
Equipment	3,668		2,807
Marketing	884		565
Outside data processing fees	2,964		2,616
Printing and office supplies	334		264
Intangible asset amortization	1,726		903
FDIC assessments	719		570
Other real estate owned and foreclosure expenses	402		531
Professional and other outside services	1,541		1,734
Other expenses	4,553		3,161
Total Other Expenses	53,687		43,099
INCOME BEFORE INCOME TAX	43,290		30,361
Income tax expense	6,611		7,168
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	36,679	$	23,193
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.75	$	0.57
Diluted Net Income Available to Common Stockholders	$	0.74	$	0.56
Cash Dividends Paid	$	0.18	$	0.15
Average Diluted Shares Outstanding (in thousands)	49,428		41,221



FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended
	March 31,
	2018			2017
NET CHARGE-OFFS	$	1,112		$	197

AVERAGE BALANCES:
Total Assets	$	9,372,736		$	7,217,151
Total Loans	6,811,087			5,180,243
Total Earning Assets	8,415,177			6,526,685
Total Deposits	7,153,164			5,590,357
Total Stockholders' Equity	1,308,804			914,062

FINANCIAL RATIOS:
Return on Average Assets	1.57		%	1.29		%
Return on Average Stockholders' Equity	11.21			10.15
Return on Average Common Stockholders' Equity	11.21			10.15
Average Earning Assets to Average Assets	89.78			90.43
Allowance for Loan Losses as % of Total Loans	1.11			1.29
Net Charge-offs as % of Average Loans (Annualized)	0.07			0.02
Average Stockholders' Equity to Average Assets	13.96			12.67
Tax Equivalent Yield on Earning Assets	4.57			4.42
Cost of Supporting Liabilities	0.65			0.44
Net Interest Margin (FTE) on Earning Assets	3.92			3.98
Efficiency Ratio	51.47			52.61
Tangible Common Book Value Per Share	$	17.14		$	16.49



NON-PERFORMING ASSETS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2018			2017			2017			2017			2017
Non-Accrual Loans	$	27,497		$	28,724		$	32,253		$	27,347		$	27,920
Renegotiated Loans	579			1,013			626			384			876
Non-Performing Loans (NPL)	28,076			29,737			32,879			27,731			28,796
Other Real Estate Owned	9,698			10,373			11,912			11,893			8,293
Non-Performing Assets (NPA)	37,774			40,110			44,791			39,624			37,089
90+ Days Delinquent	738			924			425			634			123
NPAs & 90 Day Delinquent	$	38,512		$	41,034		$	45,216		$	40,258		$	37,212

Allowance for Loan Losses	$	76,420		$	75,032		$	73,354		$	70,471		$	68,225
Quarterly Net Charge-offs	1,112			122			(800		)	629			197
NPAs / Actual Assets %	0.40		%	0.43		%	0.49		%	0.51		%	0.51		%
NPAs & 90 Day / Actual Assets %	0.41		%	0.44		%	0.50		%	0.52		%	0.51		%
NPAs / Actual Loans and OREO %	0.55		%	0.59		%	0.69		%	0.70		%	0.70		%
Allowance for Loan Losses / Actual Loans (%)	1.11		%	1.11		%	1.13		%	1.25		%	1.29		%
Net Charge-offs as % of Average Loans (Annualized)	0.07		%	0.01		%	(0.05		)%	0.05		%	0.02		%



CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2018			2017			2017			2017			2017
ASSETS
Cash and cash equivalents	$	128,828		$	154,905		$	146,607		$	142,650		$	104,247
Interest-bearing time deposits	24,233			35,027			72,950			48,305			20,439
Investment securities	1,543,820			1,560,602			1,468,887			1,343,323			1,327,217
Loans held for sale	4,469			7,216			4,514			4,036			1,262
Loans	6,901,696			6,751,199			6,483,448			5,613,144			5,274,909
Less: Allowance for loan losses	(76,420		)	(75,032		)	(73,354		)	(70,471		)	(68,225		)
Net loans	6,825,276			6,676,167			6,410,094			5,542,673			5,206,684
Premises and equipment	94,741			95,852			102,485			92,637			91,311
Federal Home Loan Bank stock	24,588			23,825			23,825			19,015			17,964
Interest receivable	35,223			37,130			32,366			27,597			25,174
Goodwill and other intangibles	474,777			476,503			478,558			309,686			257,963
Cash surrender value of life insurance	221,949			223,557			222,437			200,125			202,574
Other real estate owned	9,698			10,373			11,912			11,893			8,293
Tax asset, deferred and receivable	24,177			23,983			36,024			27,331			32,074
Other assets	61,017			42,338			38,744			35,758			30,991
TOTAL ASSETS	$	9,472,796		$	9,367,478		$	9,049,403		$	7,805,029		$	7,326,193
LIABILITIES
Deposits:
Noninterest-bearing	$	1,698,958		$	1,761,553		$	1,662,814		$	1,398,237		$	1,373,778
Interest-bearing	5,628,677			5,410,977			5,248,205			4,618,867			4,261,531
Total Deposits	7,327,635			7,172,530			6,911,019			6,017,104			5,635,309
Borrowings:
Federal funds purchased	50,000			144,038			100,000			134,608			102,000
Securities sold under repurchase agreements	138,910			136,623			142,107			127,884			139,007
Federal Home Loan Bank advances	449,419			414,377			406,820			312,715			338,919
Subordinated debentures and term loans	138,297			139,349			139,686			128,742			128,862
Total Borrowings	776,626			834,387			788,613			703,949			708,788
Interest payable	5,376			4,390			4,956			3,477			3,875
Other liabilities	50,086			52,708			61,695			45,383			48,751
Total Liabilities	8,159,723			8,064,015			7,766,283			6,769,913			6,396,723
STOCKHOLDERS' EQUITY
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 shares
Issued and outstanding	125			125			125			125			125
Common Stock, $.125 stated value:
Authorized -- 100,000,000 and 50,000,000 shares ⁽¹⁾
Issued and outstanding	6,155			6,145			6,143			5,394			5,131
Additional paid-in capital	834,894			834,870			833,451			593,904			509,953
Retained earnings	493,624			465,231			449,759			434,309			417,983
Accumulated other comprehensive income (loss)	(21,725		)	(2,908		)	(6,358		)	1,384			(3,722		)
Total Stockholders' Equity	1,313,073			1,303,463			1,283,120			1,035,116			929,470
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	9,472,796		$	9,367,478		$	9,049,403		$	7,805,029		$	7,326,193



CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	March 31,			December 31,			September 30,			June 30,			March 31,
	2018			2017			2017			2017			2017
INTEREST INCOME
Loans receivable:
Taxable	$	78,267		$	76,470		$	71,491		$	59,386		$	56,357
Tax-exempt	3,596			3,018			2,851			2,492			2,333
Investment securities:
Taxable	5,096			4,477			4,524			4,180			4,308
Tax-exempt	6,126			5,830			5,455			5,091			5,003
Deposits with financial institutions	131			294			284			114			44
Federal Home Loan Bank stock	404			259			242			204			189
Total Interest Income	93,620			90,348			84,847			71,467			68,234
INTEREST EXPENSE
Deposits	9,002			7,835			6,710			5,137			4,124
Federal funds purchased	380			55			175			103			228
Securities sold under repurchase agreements	173			146			133			110			88
Federal Home Loan Bank advances	2,159			1,577			1,464			1,177			978
Subordinated debentures and term loans	1,990			1,970			1,945			1,840			1,817
Total Interest Expense	13,704			11,583			10,427			8,367			7,235
NET INTEREST INCOME	79,916			78,765			74,420			63,100			60,999
Provision for loan losses	2,500			1,800			2,083			2,875			2,385
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	77,416			76,965			72,337			60,225			58,614
OTHER INCOME
Service charges on deposit accounts	4,777			5,066			5,044			4,438			4,174
Fiduciary and wealth management fees	3,416			3,345			2,995			2,609			2,640
Other customer fees	5,416			5,346			5,341			5,406			4,863
Earnings on cash surrender value of life insurance	1,176			1,133			1,575			2,971			898
Net gains and fees on sales of loans	1,821			2,355			2,317			1,617			1,275
Net realized gains on sales of available for sale securities	1,609			1,134			332			567			598
Other income	1,346			682			1,064			826			398
Total Other Income	19,561			19,061			18,668			18,434			14,846
OTHER EXPENSES
Salaries and employee benefits	32,226			33,760			33,244			27,076			25,732
Net occupancy	4,670			4,424			4,371			3,965			4,216
Equipment	3,668			3,898			3,478			2,907			2,807
Marketing	884			1,361			1,021			792			565
Outside data processing fees	2,964			3,378			3,162			3,086			2,616
Printing and office supplies	334			378			366			275			264
Intangible asset amortization	1,726			2,055			1,698			991			903
FDIC assessments	719			711			704			579			570
Other real estate owned and foreclosure expenses	402			311			330			731			531
Professional and other outside services	1,541			1,914			5,843			3,266			1,734
Other expenses	4,553			4,243			4,491			3,648			3,161
Total Other Expenses	53,687			56,433			58,708			47,316			43,099
INCOME BEFORE INCOME TAX	43,290			39,593			32,297			31,343			30,361
Income tax expense	6,611			15,210			7,939			7,207			7,168
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	36,679		$	24,383		$	24,358		$	24,136		$	23,193

Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.75		$	0.49		$	0.50		$	0.57		$	0.57
Diluted Net Income Available to Common Stockholders	$	0.74		$	0.49		$	0.50		$	0.57		$	0.56
Cash Dividends Paid	$	0.18		$	0.18		$	0.18		$	0.18		$	0.15
Average Diluted Shares Outstanding (in thousands)	49,428			49,379			48,644			42,244			41,221
FINANCIAL RATIOS:
Return on Average Assets	1.57		%	1.06		%	1.11		%	1.28		%	1.29		%
Return on Average Stockholders' Equity	11.21			7.53			7.83			9.82			10.15
Return on Average Common Stockholders' Equity	11.21			7.53			7.83			9.82			10.15
Average Earning Assets to Average Assets	89.78			88.73			89.16			89.97			90.43
Allowance for Loan Losses as % of Total Loans	1.11			1.11			1.13			1.25			1.29
Net Charge-offs as % of Average Loans (Annualized)	0.07			0.01			(0.05		)	0.05			0.02
Average Stockholders' Equity to Average Assets	13.96			14.11			14.15			12.98			12.67
Tax Equivalent Yield on Earning Assets	4.57			4.67			4.56			4.44			4.42
Cost of Supporting Liabilities	0.65			0.57			0.53			0.49			0.44
Net Interest Margin (FTE) on Earning Assets	3.92			4.10			4.03			3.95			3.98
Efficiency Ratio	51.47			53.29			58.30			53.61			52.61
Tangible Common Book Value Per Share	$	17.14		$	16.96		$	16.62		$	16.97		$	16.49



LOANS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2018			2017			2017			2017			2017
Commercial and industrial loans	$	1,554,169		$	1,493,493		$	1,436,092		$	1,289,884		$	1,258,840
Agricultural production financing and other loans to farmers	98,315			121,757			117,751			75,746			77,021
Real estate loans:
Construction	590,093			612,219			498,862			442,389			336,931
Commercial and farmland	2,713,994			2,562,691			2,571,253			2,167,729			2,118,431
Residential	948,644			962,765			938,437			847,580			737,918
Home equity	510,545			514,021			502,240			436,038			423,708
Individuals' loans for household and other personal expenditures	88,235			86,935			86,406			79,887			77,590
Lease financing receivables, net of unearned income	2,193			2,527			3,877			232			261
Other commercial loans	395,508			394,791			328,530			273,659			244,209
Loans	6,901,696			6,751,199			6,483,448			5,613,144			5,274,909
Allowance for loan losses	(76,420		)	(75,032		)	(73,354		)	(70,471		)	(68,225		)
NET LOANS	$	6,825,276		$	6,676,167		$	6,410,094		$	5,542,673		$	5,206,684



DEPOSITS
(Dollars In Thousands)	March 31,		December 31,		September 30,		June 30,		March 31,
	2018		2017		2017		2017		2017
Demand deposits	$	3,740,395	$	3,746,654	$	3,562,718	$	3,015,846	$	2,861,384
Savings deposits	2,109,071		1,994,366		1,884,705		1,708,478		1,565,174
Certificates and other time deposits of $100,000 or more	552,643		468,895		503,668		362,589		312,327
Other certificates and time deposits	584,377		581,894		585,042		511,935		476,741
Brokered deposits	341,149		380,721		374,886		418,256		419,683
TOTAL DEPOSITS	$	7,327,635	$	7,172,530	$	6,911,019	$	6,017,104	$	5,635,309



NET INTEREST INCOME
(Dollars in Thousands)	For the Three Months Ended
	March 31, 2018							March 31, 2017
	Average Balance			Interest Income / Expense		Average Rate		Average Balance			Interest Income / Expense		Average Rate
Assets:
Interest-bearing time deposits	$	32,776		$	131	1.60	%	$	30,463		$	45	0.59	%
Federal Home Loan Bank stock	24,385			404		6.63		17,964			189		4.21
Investment Securities: ⁽¹⁾
Taxable	810,385			5,096		2.52		711,490			4,308		2.42
Tax-Exempt ⁽²⁾	736,544			7,754		4.21		586,525			7,697		5.25
Total Investment Securities	1,546,929			12,850		3.32		1,298,015			12,005		3.70
Loans held for sale	10,636			137		5.15		3,840			45		4.69
Loans: ⁽³⁾
Commercial	4,980,450			62,154		4.99		3,781,045			44,092		4.66
Real Estate Mortgage	728,725			7,999		4.39		545,148			6,121		4.49
Installment	623,429			7,977		5.12		532,128			6,098		4.58
Tax-Exempt ⁽²⁾	467,847			4,552		3.89		318,082			3,589		4.51
Total Loans	6,811,087			82,819		4.86		5,180,243			59,945		4.63
Total Earning Assets	8,415,177			96,204		4.57		6,526,685			72,184		4.42
Net unrealized gain (loss) on securities available for sale	(6,440		)					593
Allowance for loan losses	(75,851		)					(66,933		)
Cash and cash equivalents	126,484							104,017
Premises and equipment	95,525							93,018
Other assets	817,841							559,771
Total Assets	$	9,372,736						$	7,217,151
Liabilities:
Interest-bearing deposits:
Interest-bearing NOW deposits	$	1,980,141		$	2,689	0.54	%	$	1,512,839		$	838	0.22	%
Money market deposits	1,089,694			1,275		0.47		789,378			341		0.17
Savings deposits	945,940			381		0.16		776,519			156		0.08
Certificates and other time deposits	1,486,093			4,657		1.25		1,165,079			2,789		0.96
Total Interest-bearing Deposits	5,501,868			9,002		0.65		4,243,815			4,124		0.39
Borrowings	848,208			4,702		2.22		664,921			3,111		1.87
Total Interest-bearing Liabilities	6,350,076			13,704		0.86		4,908,736			7,235		0.59
Noninterest-bearing deposits	1,651,296							1,346,542
Other liabilities	62,560							47,811
Total Liabilities	8,063,932							6,303,089
Stockholders' Equity	1,308,804							914,062
Total Liabilities and Stockholders' Equity	$	9,372,736		13,704				$	7,217,151		7,235
Net Interest Income (FTE)				$	82,500						$	64,949
Net Interest Spread (FTE)						3.71	%						3.83	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets						4.57	%						4.42	%
Interest Expense / Average Earning Assets						0.65	%						0.44	%
Net Interest Margin (FTE)						3.92	%						3.98	%

⁽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.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent and 35 percent for 2018 and 2017, respectively. These totals equal $2,584 and $3,950 for the three months ended March 31, 2018 and 2017, respectively.
⁽³⁾ Non accruing loans have been included in the average balances.