Exhibit

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

October 24, 2019

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 2019 RESULTS WITH THE ADDITION OF MONROE BANK AND TRUST

First Merchants Corporation (NASDAQ - FRME) has reported third quarter 2019 net income of $36.8 million compared to $41.1 million during the same period in 2018. Earnings per share for the period totaled $.71 per share compared to third quarter 2018 results of $.83 per share. Included in the third quarter results are $11.2 million, or $.17 per share, of one-time charges related to the closing of our acquisition of Monroe Bank & Trust on September 1, 2019.

Total assets equaled $12.3 billion as of quarter-end and loans totaled $8.3 billion. The Corporation’s loan portfolio increased by $1.2 billion, or 17.1 percent, during the past twelve months. Investments increased $864 million, or 53.2 percent, during the same period and now total $2.5 billion. The acquisition of Monroe Bank & Trust accounted for $731 million of the increase in loans. Total deposits equaled $9.8 billion as of quarter-end and increased by $2.1 billion, or 27.9 percent, since September 30, 2018. Of the increase, Monroe Bank & Trust accounted for $1.1 billion.

The Corporation’s loan to deposit ratio now totals 85.1 percent and loan to asset ratio totals 67.4 percent. Additionally, the Corporation’s total risk-based capital ratio equaled 14.37 percent, common equity tier 1 capital ratio equaled 12.14 percent, and the tangible common equity ratio totaled 9.95 percent.

Michael C. Rechin, President and Chief Executive Officer, stated, “First Merchants posted strong financial results as our local economies continue to flourish and our clients look to our bank for growth solutions. The signature event for the quarter was the legal closing of the Monroe Bank & Trust transaction. The merger extends our franchise with a community bank that enjoys a dominant market share position. Our plan to operationally integrate Monroe Bank & Trust into First Merchants next month will accelerate our marketplace momentum into 2020 to include a reduction in our overall funding costs.”

Net-interest income for the quarter totaled $88.9 million, an increase of $2.4 million from third quarter 2018, even as net-interest margin declined by 43 basis points totaling 3.62 percent. Yields on earning assets totaled 4.77 percent, a decline of 11 basis points of which nearly half was due to lower fair value accretion. The cost of supporting liabilities increased by 32 basis points and totaled 1.15 percent.

Non-interest income totaled $22.1 million for the quarter, a $2.6 million, or 13.3 percent increase from the third quarter of 2018. Customer specific line items accounted for $3.1 million of the increase, with derivative hedge income accounting for $909,000 of the growth. Non-interest expense totaled $67.4 million up from the 2018 total of $55 million. Of the $12.4 million increase from the third quarter of 2018, merger related expenses accounted for $11.2 million.

The Corporation’s provision expense for the quarter totaled $600,000 and net charge-offs were $1.3 million. The allowance for loan losses reached $80.6 million as of September 30, 2019, up from $78.4 million as of September 30, 2018. Non-accrual loans declined to $22.7 million as of quarter-end and the allowance is .97 percent of total loans and 1.16 percent of non-purchased loans.

CONFERENCE CALL

First Merchants Corporation will conduct a third quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, October 24, 2019.

To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's third quarter earnings release. International callers please call +1 412-317-1073. A replay of the call will be available until November 24, 2019. To access a replay of the call, US participants should dial (Toll Free) 877-344-7529, Canada participants should dial 855-669-9658, or for International participants, dial +1 412-317-0088. The replay access code is 10134821.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme191024.html during the time of the call. A replay of the web cast will be available until October 24, 2020.

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, 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,
	2019			2018
ASSETS
Cash and cash equivalents	$	202,383		$	142,501
Interest-bearing time deposits	230,101			66,763
Investment securities	2,489,420			1,625,251
Loans held for sale	7,910			3,022
Loans	8,299,260			7,088,071
Less: Allowance for loan losses	(80,571		)	(78,406		)
Net loans	8,218,689			7,009,665
Premises and equipment	113,446			93,728
Federal Home Loan Bank stock	28,736			24,588
Interest receivable	45,923			38,531
Goodwill and other intangibles	579,751			471,409
Cash surrender value of life insurance	286,747			223,865
Other real estate owned	7,156			8,859
Tax asset, deferred and receivable	15,187			25,933
Other assets	99,612			53,167
TOTAL ASSETS	$	12,325,061		$	9,787,282
LIABILITIES
Deposits:
Noninterest-bearing	$	1,777,365		$	1,464,190
Interest-bearing	7,988,086			6,168,962
Total Deposits	9,765,451			7,633,152
Borrowings:
Federal funds purchased	—			90,000
Securities sold under repurchase agreements	191,603			118,824
Federal Home Loan Bank advances	354,609			385,458
Subordinated debentures and term loans	138,630			138,408
Total Borrowings	684,842			732,690
Interest payable	7,855			5,920
Other liabilities	117,901			54,094
Total Liabilities	10,576,049			8,425,856
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 shares
Issued and outstanding - 55,345,672 and 49,304,542 shares	6,918			6,163
Additional paid-in capital	1,053,148			837,996
Retained earnings	663,173			552,551
Accumulated other comprehensive income (loss)	25,648			(35,409		)
Total Stockholders' Equity	1,749,012			1,361,426
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	12,325,061		$	9,787,282



CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended					Nine Months Ended
(Dollars In Thousands, Except Per Share Amounts)	September 30,					September 30,
	2019			2018		2019		2018
INTEREST INCOME
Loans receivable:
Taxable	$	96,850		$	88,479	$	280,155	$	251,409
Tax-exempt	4,500			3,761		12,897		10,989
Investment securities:
Taxable	6,729			5,514		19,822		16,044
Tax-exempt	8,335			6,493		22,660		18,865
Deposits with financial institutions	1,363			270		3,022		1,034
Federal Home Loan Bank stock	355			283		1,028		950
Total Interest Income	118,132			104,800		339,584		299,291
INTEREST EXPENSE
Deposits	24,830			13,685		67,511		34,852
Federal funds purchased	15			229		225		670
Securities sold under repurchase agreements	385			174		1,057		519
Federal Home Loan Bank advances	1,894			2,137		5,400		6,141
Subordinated debentures and term loans	2,076			2,089		6,315		6,136
Total Interest Expense	29,200			18,314		80,508		48,318
NET INTEREST INCOME	88,932			86,486		259,076		250,973
Provision for loan losses	600			1,400		2,300		5,563
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	88,332			85,086		256,776		245,410
OTHER INCOME
Service charges on deposit accounts	6,107			5,619		16,639		15,434
Fiduciary and wealth management fees	4,429			3,673		12,178		11,064
Card payment fees	5,158			4,586		14,813		13,642
Net gains and fees on sales of loans	2,227			1,841		5,258		5,262
Derivative hedge fees	1,684			775		3,952		1,848
Other customer fees	450			452		1,230		1,349
Earnings on cash surrender value of life insurance	1,144			961		3,079		3,144
Net realized gains on sales of available for sale securities	393			1,285		3,376		4,016
Other income	524			335		1,918		1,520
Total Other Income	22,116			19,527		62,443		57,279
OTHER EXPENSES
Salaries and employee benefits	38,942			32,936		104,679		97,354
Net occupancy	4,777			4,586		14,273		13,604
Equipment	4,030			3,483		11,789		10,707
Marketing	1,332			1,216		5,158		3,574
Outside data processing fees	4,435			3,422		12,048		9,848
Printing and office supplies	312			334		961		992
Intangible asset amortization	1,356			1,650		4,404		5,094
FDIC assessments	(668		)	856		717		2,286
Other real estate owned and foreclosure expenses	294			455		2,362		1,219
Professional and other outside services	8,251			1,844		12,511		5,174
Other expenses	4,293			4,240		12,660		12,361
Total Other Expenses	67,354			55,022		181,562		162,213
INCOME BEFORE INCOME TAX	43,094			49,591		137,657		140,476
Income tax expense	6,337			8,478		21,027		23,050
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	36,757		$	41,113	$	116,630	$	117,426
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.71		$	0.83	$	2.33	$	2.38
Diluted Net Income Available to Common Stockholders	$	0.71		$	0.83	$	2.32	$	2.37
Cash Dividends Paid	$	0.26		$	0.22	$	0.74	$	0.62
Average Diluted Shares Outstanding (in thousands)	51,570			49,492		50,227		49,458



FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
NET CHARGE-OFFS	$	1,303		$	537		$	2,281		$	2,189

AVERAGE BALANCES:
Total Assets	$	11,277,742		$	9,756,680		$	10,623,664		$	9,610,219
Total Loans	7,773,328			7,099,694			7,464,910			6,962,460
Total Earning Assets	10,192,183			8,810,758			9,618,285			8,657,152
Total Deposits	8,922,222			7,603,625			8,397,056			7,466,187
Total Stockholders' Equity	1,596,595			1,358,904			1,502,474			1,331,867

FINANCIAL RATIOS:
Return on Average Assets	1.30		%	1.69		%	1.46		%	1.63		%
Return on Average Stockholders' Equity	9.21			12.10			10.35			11.76
Return on Average Common Stockholders' Equity	9.21			12.10			10.35			11.76
Average Earning Assets to Average Assets	90.37			90.30			90.54			90.08
Allowance for Loan Losses as % of Total Loans	0.97			1.11			0.97			1.11
Net Charge-offs as % of Average Loans (Annualized)	0.07			0.03			0.04			0.04
Average Stockholders' Equity to Average Assets	14.16			13.93			14.14			13.86
Tax Equivalent Yield on Average Earning Assets	4.77			4.88			4.84			4.73
Interest Expense/Average Earning Assets	1.15			0.83			1.12			0.74
Net Interest Margin (FTE) on Average Earning Assets	3.62			4.05			3.72			3.99
Efficiency Ratio	57.60			49.25			53.36			49.94
Tangible Common Book Value Per Share	$	21.26		$	18.16		$	21.26		$	18.16



NON-PERFORMING ASSETS
(Dollars In Thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
	2019			2019			2019			2018			2018
Non-Accrual Loans	$	22,728		$	25,635		$	27,949		$	26,148		$	20,421
Renegotiated Loans	576			640			709			1,103			968
Non-Performing Loans (NPL)	23,304			26,275			28,658			27,251			21,389
Other Real Estate Owned	7,156			1,131			1,877			2,179			8,859
Non-Performing Assets (NPA)	30,460			27,406			30,535			29,430			30,248
90+ Days Delinquent	82			209			134			1,855			50
NPAs & 90 Day Delinquent	$	30,542		$	27,615		$	30,669		$	31,285		$	30,298

Allowance for Loan Losses	$	80,571		$	81,274		$	80,902		$	80,552		$	78,406
Quarterly Net Charge-offs	1,303			128			850			(482		)	537
NPAs / Actual Assets %	0.25		%	0.26		%	0.30		%	0.30		%	0.31		%
NPAs & 90 Day / Actual Assets %	0.25		%	0.26		%	0.30		%	0.32		%	0.31		%
NPAs / Actual Loans and OREO %	0.37		%	0.36		%	0.42		%	0.41		%	0.43		%
Allowance for Loan Losses / Actual Loans (%)	0.97		%	1.08		%	1.11		%	1.11		%	1.11		%
Net Charge-offs as % of Average Loans (Annualized)	0.07		%	0.01		%	0.05		%	(0.03		)%	0.03		%



CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
	2019			2019			2019			2018			2018
ASSETS
Cash and cash equivalents	$	202,383		$	128,185		$	115,878		$	139,247		$	142,501
Interest-bearing time deposits	230,101			129,614			70,672			36,963			66,763
Investment securities	2,489,420			2,092,924			1,862,659			1,632,582			1,625,251
Loans held for sale	7,910			5,854			3,330			4,778			3,022
Loans	8,299,260			7,511,370			7,299,320			7,224,467			7,088,071
Less: Allowance for loan losses	(80,571		)	(81,274		)	(80,902		)	(80,552		)	(78,406		)
Net loans	8,218,689			7,430,096			7,218,418			7,143,915			7,009,665
Premises and equipment	113,446			91,767			91,863			93,420			93,728
Federal Home Loan Bank stock	28,736			24,588			24,588			24,588			24,588
Interest receivable	45,923			45,150			40,931			40,881			38,531
Goodwill and other intangibles	579,751			466,736			468,256			469,784			471,409
Cash surrender value of life insurance	286,747			226,241			225,928			224,939			223,865
Other real estate owned	7,156			1,131			1,877			2,179			8,859
Tax asset, deferred and receivable	15,187			12,340			16,094			23,668			25,933
Other assets	99,612			83,231			70,431			47,772			53,167
TOTAL ASSETS	$	12,325,061		$	10,737,857		$	10,210,925		$	9,884,716		$	9,787,282
LIABILITIES
Deposits:
Noninterest-bearing	$	1,777,365		$	1,353,165		$	1,381,183		$	1,447,907		$	1,464,190
Interest-bearing	7,988,086			6,966,163			6,666,615			6,306,686			6,168,962
Total Deposits	9,765,451			8,319,328			8,047,798			7,754,593			7,633,152
Borrowings:
Federal funds purchased	—			75,000			20,000			104,000			90,000
Securities sold under repurchase agreements	191,603			119,674			111,783			113,512			118,824
Federal Home Loan Bank advances	354,609			460,042			345,013			314,986			385,458
Subordinated debentures and term loans	138,630			138,574			138,519			138,463			138,408
Total Borrowings	684,842			793,290			615,315			670,961			732,690
Interest payable	7,855			6,740			7,313			5,607			5,920
Other liabilities	117,901			116,863			84,651			45,295			54,094
Total Liabilities	10,576,049			9,236,221			8,755,077			8,476,456			8,425,856
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 shares
Issued and outstanding	6,918			6,182			6,179			6,169			6,163
Additional paid-in capital	1,053,148			841,365			839,919			840,052			837,996
Retained earnings	663,173			639,362			611,220			583,336			552,551
Accumulated other comprehensive income (loss)	25,648			14,602			(1,595		)	(21,422		)	(35,409		)
Total Stockholders' Equity	1,749,012			1,501,636			1,455,848			1,408,260			1,361,426
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	12,325,061		$	10,737,857		$	10,210,925		$	9,884,716		$	9,787,282



CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	September 30,			June 30,			March 31,			December 31,			September 30,
	2019			2019			2019			2018			2018
INTEREST INCOME
Loans receivable:
Taxable	$	96,850		$	92,824		$	90,481		$	91,092		$	88,479
Tax-exempt	4,500			4,244			4,153			3,873			3,761
Investment securities:
Taxable	6,729			6,998			6,095			5,553			5,514
Tax-exempt	8,335			7,454			6,871			6,644			6,493
Deposits with financial institutions	1,363			784			875			1,207			270
Federal Home Loan Bank stock	355			335			338			284			283
Total Interest Income	118,132			112,639			108,813			108,653			104,800
INTEREST EXPENSE
Deposits	24,830			23,087			19,594			16,690			13,685
Federal funds purchased	15			117			93			48			229
Securities sold under repurchase agreements	385			342			330			243			174
Federal Home Loan Bank advances	1,894			1,692			1,814			1,691			2,137
Subordinated debentures and term loans	2,076			2,123			2,116			2,097			2,089
Total Interest Expense	29,200			27,361			23,947			20,769			18,314
NET INTEREST INCOME	88,932			85,278			84,866			87,884			86,486
Provision for loan losses	600			500			1,200			1,664			1,400
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	88,332			84,778			83,666			86,220			85,086
OTHER INCOME
Service charges on deposit accounts	6,107			5,437			5,095			5,516			5,619
Fiduciary and wealth management fees	4,429			3,931			3,818			3,842			3,673
Card payment fees	5,158			4,829			4,826			4,393			4,586
Net gains and fees on sales of loans	2,227			1,736			1,295			1,767			1,841
Derivative hedge fees	1,684			1,487			781			645			775
Other customer fees	450			341			439			511			452
Earnings on cash surrender value of life insurance	1,144			946			989			1,074			961
Net realized gains on sales of available for sale securities	393			1,843			1,140			253			1,285
Other income	524			1,064			330			1,179			335
Total Other Income	22,116			21,614			18,713			19,180			19,527
OTHER EXPENSES
Salaries and employee benefits	38,942			32,709			33,028			34,350			32,936
Net occupancy	4,777			4,469			5,027			4,737			4,586
Equipment	4,030			4,117			3,642			3,627			3,483
Marketing	1,332			2,752			1,074			1,107			1,216
Outside data processing fees	4,435			3,929			3,684			3,367			3,422
Printing and office supplies	312			334			315			433			334
Intangible asset amortization	1,356			1,520			1,528			1,625			1,650
FDIC assessments	(668		)	678			707			634			856
Other real estate owned and foreclosure expenses	294			903			1,165			251			455
Professional and other outside services	8,251			2,376			1,884			3,002			1,844
Other expenses	4,293			3,800			4,567			4,605			4,240
Total Other Expenses	67,354			57,587			56,621			57,738			55,022
INCOME BEFORE INCOME TAX	43,094			48,805			45,758			47,662			49,591
Income tax expense	6,337			7,749			6,941			5,949			8,478
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	36,757		$	41,056		$	38,817		$	41,713		$	41,113

Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.71		$	0.83		$	0.79		$	0.85		$	0.83
Diluted Net Income Available to Common Stockholders	$	0.71		$	0.83		$	0.78		$	0.85		$	0.83
Cash Dividends Paid	$	0.26		$	0.26		$	0.22		$	0.22		$	0.22
Average Diluted Shares Outstanding (in thousands)	51,570			49,550			49,541			49,511			49,492
FINANCIAL RATIOS:
Return on Average Assets	1.30		%	1.56		%	1.54		%	1.68		%	1.69		%
Return on Average Stockholders' Equity	9.21			11.10			10.86			12.10			12.10
Return on Average Common Stockholders' Equity	9.21			11.10			10.86			12.10			12.10
Average Earning Assets to Average Assets	90.37			90.66			90.60			90.41			90.30
Allowance for Loan Losses as % of Total Loans	0.97			1.08			1.11			1.11			1.11
Net Charge-offs as % of Average Loans (Annualized)	0.07			0.01			0.05			(0.03		)	0.03
Average Stockholders' Equity to Average Assets	14.16			14.09			14.18			13.90			13.93
Tax Equivalent Yield on Average Earning Assets	4.77			4.86			4.89			4.97			4.88
Interest Expense/Average Earning Assets	1.15			1.15			1.05			0.93			0.83
Net Interest Margin (FTE) on Average Earning Assets	3.62			3.71			3.84			4.04			4.05
Efficiency Ratio	57.60			51.00			51.18			50.97			49.25
Tangible Common Book Value Per Share	$	21.26		$	21.01		$	20.07		$	19.12		$	18.16



LOANS
(Dollars In Thousands)	September 30,			June 30,			March 31,			December 31,			September 30,
	2019			2019			2019			2018			2018
Commercial and industrial loans	$	2,034,311		$	1,877,042		$	1,788,628		$	1,726,664		$	1,655,569
Agricultural production financing and other loans to farmers	90,462			83,452			80,357			92,404			88,504
Real estate loans:
Construction	670,138			624,548			542,501			545,729			668,608
Commercial and farmland	3,144,649			2,821,689			2,838,798			2,832,102			2,699,629
Residential	1,155,403			993,802			976,668			966,421			965,893
Home equity	601,335			548,006			536,208			528,157			517,303
Individuals' loans for household and other personal expenditures	131,246			98,384			108,216			99,788			98,709
Public finance and other commercial loans	471,716			464,447			427,944			433,202			393,856
Loans	8,299,260			7,511,370			7,299,320			7,224,467			7,088,071
Allowance for loan losses	(80,571		)	(81,274		)	(80,902		)	(80,552		)	(78,406		)
NET LOANS	$	8,218,689		$	7,430,096		$	7,218,418		$	7,143,915		$	7,009,665



DEPOSITS
(Dollars In Thousands)	September 30,		June 30,		March 31,		December 31,		September 30,
	2019		2019		2019		2018		2018
Demand deposits	$	5,183,971	$	4,309,473	$	4,101,156	$	3,985,178	$	3,870,816
Savings deposits	2,808,745		2,358,720		2,338,266		2,282,701		2,212,675
Certificates and other time deposits of $100,000 or more	731,693		720,536		670,199		593,592		602,002
Other certificates and time deposits	811,780		729,392		704,527		646,682		625,341
Brokered deposits	229,262		201,207		233,650		246,440		322,318
TOTAL DEPOSITS	$	9,765,451	$	8,319,328	$	8,047,798	$	7,754,593	$	7,633,152



CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Three Months Ended
	September 30, 2019							September 30, 2018
	Average Balance			Interest Income / Expense		Average Rate		Average Balance			Interest Income / Expense		Average Rate
Assets:
Interest-bearing time deposits	$	262,082		$	1,363	2.06	%	$	52,027		$	270	2.08	%
Federal Home Loan Bank stock	24,633			355		5.76		24,588			283		4.60
Investment Securities: ⁽¹⁾
Taxable	1,104,612			6,729		2.44		857,507			5,514		2.57
Tax-Exempt ⁽²⁾	1,027,528			10,551		4.11		776,942			8,219		4.23
Total Investment Securities	2,132,140			17,280		3.24		1,634,449			13,733		3.36
Loans held for sale	21,913			274		5.00		11,038			142		5.15
Loans: ⁽³⁾
Commercial	5,674,956			77,370		5.45		5,226,284			71,223		5.45
Real Estate Mortgage	822,874			9,518		4.63		739,356			8,383		4.54
Installment	715,428			9,688		5.42		655,738			8,731		5.33
Tax-Exempt ⁽²⁾	538,157			5,696		4.23		467,278			4,761		4.08
Total Loans	7,773,328			102,546		5.28		7,099,694			93,240		5.25
Total Earning Assets	10,192,183			121,544		4.77	%	8,810,758			107,526		4.88	%
Net unrealized gain (loss) on securities available for sale	30,353							(15,245		)
Allowance for loan losses	(80,918		)					(77,763		)
Cash and cash equivalents	143,266							128,557
Premises and equipment	99,021							94,422
Other assets	893,837							815,951
Total Assets	$	11,277,742						$	9,756,680
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits	$	3,134,675		$	9,285	1.18	%	$	2,399,477		$	4,909	0.82	%
Money market deposits	1,307,647			3,766		1.14		1,062,154			1,551		0.58
Savings deposits	1,244,859			2,523		0.80		1,081,369			1,500		0.55
Certificates and other time deposits	1,736,759			9,256		2.11		1,536,697			5,725		1.49
Total Interest-bearing Deposits	7,423,940			24,830		1.33		6,079,697			13,685		0.90
Borrowings	660,107			4,370		2.59		741,092			4,629		2.50
Total Interest-bearing Liabilities	8,084,047			29,200		1.43		6,820,789			18,314		1.07
Noninterest-bearing deposits	1,498,282							1,523,928
Other liabilities	98,818							53,059
Total Liabilities	9,681,147							8,397,776
Stockholders' Equity	1,596,595							1,358,904
Total Liabilities and Stockholders' Equity	$	11,277,742		29,200				$	9,756,680		18,314
Net Interest Income (FTE)				$	92,344						$	89,212
Net Interest Spread (FTE) ⁽⁴⁾						3.34	%						3.81	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets						4.77	%						4.88	%
Interest Expense / Average Earning Assets						1.15	%						0.83	%
Net Interest Margin (FTE) ⁽⁵⁾						3.62	%						4.05	%

⁽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 for 2019 and 2018. These totals equal $3,412 and $2,726 for the three months ended September 30, 2019 and 2018, 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, 2019							September 30, 2018
	Average Balance			Interest Income / Expense		Average Rate		Average Balance			Interest Income / Expense		Average Rate
Assets:
Interest-bearing time deposits	$	184,640		$	3,022	2.18	%	$	76,570		$	1,034	1.80	%
Federal Home Loan Bank stock	24,603			1,028		5.57		24,521			950		5.17
Investment Securities: ⁽¹⁾
Taxable	1,021,102			19,822		2.59		840,425			16,044		2.55
Tax-Exempt ⁽²⁾	923,030			28,684		4.14		753,176			23,880		4.23
Total Investment Securities	1,944,132			48,506		3.33		1,593,601			39,924		3.34
Loans held for sale	13,618			512		5.01		9,520			363		5.08
Loans: ⁽³⁾
Commercial	5,469,377			224,766		5.48		5,116,405			200,886		5.24
Real Estate Mortgage	778,778			26,526		4.54		732,469			25,174		4.58
Installment	686,055			28,351		5.51		637,140			24,986		5.23
Tax-Exempt ⁽²⁾	517,082			16,325		4.21		466,926			13,910		3.97
Total Loans	7,464,910			296,480		5.30		6,962,460			265,319		5.08
Total Earning Assets	9,618,285			349,036		4.84	%	8,657,152			307,227		4.73	%
Net unrealized gain on securities available for sale	12,856							(11,616		)
Allowance for loan losses	(81,172		)					(76,944		)
Cash and cash equivalents	130,587							129,181
Premises and equipment	94,628							94,897
Other assets	848,480							817,549
Total Assets	$	10,623,664						$	9,610,219
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits	$	2,921,762		$	24,844	1.13	%	$	2,236,644		$	12,013	0.72	%
Money market deposits	1,222,860			10,057		1.10		1,077,792			4,270		0.53
Savings deposits	1,187,173			7,315		0.82		1,041,600			3,214		0.41
Certificates and other time deposits	1,652,141			25,295		2.04		1,504,851			15,355		1.36
Total Interest-bearing Deposits	6,983,936			67,511		1.29		5,860,887			34,852		0.79
Borrowings	636,295			12,997		2.72		754,054			13,466		2.38
Total Interest-bearing Liabilities	7,620,231			80,508		1.41		6,614,941			48,318		0.97
Noninterest-bearing deposits	1,413,120							1,605,300
Other liabilities	87,839							58,111
Total Liabilities	9,121,190							8,278,352
Stockholders' Equity	1,502,474							1,331,867
Total Liabilities and Stockholders' Equity	$	10,623,664		80,508				$	9,610,219		48,318
Net Interest Income (FTE)				$	268,528						$	258,909
Net Interest Spread (FTE) ⁽⁴⁾						3.43	%						3.76	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets						4.84	%						4.73	%
Interest Expense / Average Earning Assets						1.12	%						0.74	%
Net Interest Margin (FTE) ⁽⁵⁾						3.72	%						3.99	%

⁽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 for 2019 and 2018. These totals equal $9,452 and $7,936 for the nine months ended September 30, 2019 and 2018, 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.