EX-99.1 2 a4q22earningsreleaseex991.htm EX-99.1 Document




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

FOR IMMEDIATE RELEASE
For more information, contact:
Nicole M. Weaver, Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com

SOURCE: First Merchants Corporation, Muncie, Indiana

FIRST MERCHANTS CORPORATION ANNOUNCES RECORD FOURTH QUARTER AND FULL YEAR 2022 RESULTS

First Merchants Corporation (NASDAQ - FRME)

Fourth Quarter 2022 Highlights:

•    Net income available to common stockholders was $70.3 million and diluted earnings per common share totaled $1.19, compared to $47.7 million and $.89 in the fourth quarter of 2021, and $63.3 million and $1.08 in the third quarter of 2022.
•    Adjusted net income available to common stockholders1 for the fourth quarter was $70.5 million and adjusted diluted earnings per common share1 totaled $1.19, compared to $44.9 million and $.84 in the fourth quarter of 2021, and $65.6 million and $1.12 in the third quarter of 2022.
•    Total loans grew $344.1 million, or 11.8% annualized on a linked quarter basis, excluding the forgiveness of $6.5 million in Paycheck Protection Program (“PPP”) loans.
•    Total deposits declined $52.1 million, or 1.4% annualized on a linked quarter basis.
•    Nonaccrual loans totaled $42.3 million compared to $43.5 million on a linked quarter basis.
•    Net interest income totaled $149.0 million, an increase of $8.7 million, or 6.2% on a linked quarter basis.
•    The efficiency ratio totaled 48.60% for the quarter.

Full Year 2022 Highlights:

•    Net income available to common stockholders was $220.7 million and diluted earnings per common share totaled $3.81, compared to $205.5 million and $3.81 in 2021.
•    Adjusted net income available to common stockholders1 for 2022 was $243.4 million and adjusted diluted earnings per common share1 totaled $4.20, compared to $182.2 million and $3.38 in 2021.
•    Total loans grew $2.8 billion during 2022, which included $1.6 billion from the acquisition of Level One Bancorp Inc. (“Level One”). Excluding the forgiveness of $145.3 million in Paycheck Protection Program (“PPP”) loans, organic loan growth totaled $1.3 billion or 13.9% during the year.
•    Net interest income totaled $520.2 million, an increase of $109.5 million, or 26.7% over prior year.
•    The efficiency ratio totaled 53.20% for 2022, but was 50.66% after excluding $16.5 million in acquisition-related expenses that were incurred during the year.

Mark Hardwick, Chief Executive Officer, stated, “First Merchants completed 2022 with a strong quarter and closed the books on another successful year. We are pleased to have the acquisition and integration of Level One behind us so that we can focus on the organic opportunities ahead. First Merchants’ earnings power is pretty easy to digest when assessing our quarterly results. We look forward to continued growth and high levels of performance in 2023”







Fourth Quarter Financial Results

First Merchants Corporation (the “Corporation) has reported fourth quarter 2022 net income available to common stockholders of $70.3 million compared to $47.7 million during the same period in 2021. Diluted earnings per common share for the period totaled $1.19 per share compared to the fourth quarter of 2021 result of $.89 per share.

Total assets equaled $17.9 billion as of quarter-end and loans totaled $12.0 billion. Total loans increased $2.8 billion during the past twelve months. The acquisition of Level One contributed $1.6 billion of loans. Excluding acquired loans, the Corporation experienced organic loan growth of $1.3 billion, or 13.9 percent, during the past twelve months. This was offset by the forgiveness of PPP loans of $145.3 million. Investments decreased $260.6 million, or 5.8 percent, during the last twelve months and now total $4.3 billion.

Total deposits equaled $14.4 billion as of quarter-end and increased by $1.7 billion over the past twelve months. The acquisition of Level One contributed $1.9 billion in deposits resulting in an organic deposit decline of $280.6 million or 2.2%. The balance sheet growth mix resulted in an increase in the loan to deposit ratio of 10.9% over the past twelve months with the current quarter ratio ending at 83.5 percent.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $223.3 million as of quarter-end, or 1.86 percent of total loans, an increase of $27.9 million over prior year due to the acquisition of Level One. Loan charge offs, net of recoveries, for the quarter totaled $3.4 million. No provision expense was recorded during the quarter or during the last twelve months other than CECL Day 1 expense of $16.8 million due to the acquisition of Level One. Non-performing assets to total assets were 0.27% for the fourth quarter of 2022, a decrease of one basis point compared to 0.28% in the fourth quarter of 2021.

Net-interest income totaling $149.0 million for the quarter, continued to grow with an increase of $8.7 million, or 6.2 percent, over prior quarter, and an increase of $47.7 million, or 47 percent compared to the fourth quarter of 2021. Stated net-interest margin on a tax equivalent basis, totaling 3.72 percent, increased by 17 basis points compared to the third quarter of 2022 and 68 basis points compared to the fourth quarter of 2021. Net-interest margin excluding the impact of fair value accretion and PPP loans totaled 3.65% for the quarter, an increase of 18 basis points compared to 3.47% for the third quarter of 2022 and an increase of 73 basis points from the fourth quarter of 2021. During the quarter, the yield on earning assets expanded 62 basis points from higher loan and investment portfolio yields as well as organic loan growth, offset by a 45 basis point increase in funding costs.

Non-interest income, totaling $24.2 million for the quarter, decreased $5.5 million or 18.5% compared to the third quarter of 2022. The decrease was primarily driven by lower earnings on cash surrender value of life insurance which was elevated in the third quarter due to a large $5.2 million BOLI death benefit. Non-interest income decreased $1.7 million from the fourth quarter of 2021 due primarily to lower gains on the sale of mortgage loans and lower derivative hedge fees.

Non-interest expense totaled $89.7 million for the quarter, a decrease of $6.7 million from the third quarter of 2022. The third quarter included $3.4 million of acquisition-related expenses. The quarter over quarter decline also reflected lower salaries and benefits expense as well as some one-time gains on sales of properties recorded in the fourth quarter.

The Corporation’s total risk-based capital ratio equaled 13.08 percent, common equity tier 1 capital ratio equaled 10.65 percent, and the tangible common equity ratio totaled 7.34 percent. These ratios continue to reflect the Corporation’s strong capital position.

1 See “Non-GAAP Financial Information” for reconciliation









CONFERENCE CALL

First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 10:30 a.m. (ET) on Thursday, January 26, 2023.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BI6fcecfffac4e446dae35bea4a13966ee)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/7rxb6jtk) during the time of the call. A replay of the webcast will be available until January 26, 2023.

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)December 31,
20222021
ASSETS
Cash and due from banks$122,594 $167,146 
Interest-bearing deposits126,061 474,154 
Investment securities, net of allowance for credit losses of $245,000 and $245,0004,263,788 4,524,353 
Loans held for sale9,094 11,187 
Loans12,003,894 9,241,861 
Less: Allowance for credit losses - loans(223,277)(195,397)
Net loans11,780,617 9,046,464 
Premises and equipment117,118 105,655 
Federal Home Loan Bank stock38,525 28,736 
Interest receivable85,070 57,187 
Goodwill and other intangibles747,844 570,860 
Cash surrender value of life insurance308,311 291,041 
Other real estate owned6,431 558 
Tax asset, deferred and receivable111,222 35,641 
Other assets221,631 140,167 
TOTAL ASSETS$17,938,306 $15,453,149 
LIABILITIES
Deposits:
Noninterest-bearing$3,173,417 $2,709,646 
Interest-bearing11,209,328 10,022,931 
Total Deposits14,382,745 12,732,577 
Borrowings:
Federal funds purchased171,560 — 
Securities sold under repurchase agreements167,413 181,577 
Federal Home Loan Bank advances823,674 334,055 
Subordinated debentures and other borrowings151,298 118,618 
Total Borrowings1,313,945 634,250 
Interest payable7,530 2,762 
Other liabilities199,316 170,989 
Total Liabilities15,903,536 13,540,578 
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative 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 — 
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 59,170,583 and 53,410,411 shares7,396 6,676 
Additional paid-in capital1,228,626 985,818 
Retained earnings1,012,774 864,839 
Accumulated other comprehensive income (loss)(239,151)55,113 
Total Stockholders' Equity2,034,770 1,912,571 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$17,938,306 $15,453,149 







CONSOLIDATED STATEMENTS OF INCOMEThree Months EndedTwelve Months Ended
(Dollars In Thousands, Except Per Share Amounts)December 31,December 31,
2022202120222021
INTEREST INCOME
Loans receivable:
Taxable$156,102 $80,583 $470,468 $338,009 
Tax-exempt6,930 5,635 25,124 22,110 
Investment securities:
Taxable9,417 8,028 38,354 29,951 
Tax-exempt17,033 15,411 67,381 55,331 
Deposits with financial institutions959 173 2,503 634 
Federal Home Loan Bank stock541 163 1,176 597 
Total Interest Income190,982 109,993 605,006 446,632 
INTEREST EXPENSE
Deposits33,516 5,589 62,939 23,319 
Federal funds purchased808 1 1,302 5 
Securities sold under repurchase agreements541 75 1,136 314 
Federal Home Loan Bank advances4,932 1,389 11,417 5,672 
Subordinated debentures and other borrowings2,229 1,666 8,009 6,642 
Total Interest Expense42,026 8,720 84,803 35,952 
NET INTEREST INCOME148,956 101,273 520,203 410,680 
Provision for credit losses - loans— — 16,755 — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES148,956 101,273 503,448 410,680 
NON-INTEREST INCOME
Service charges on deposit accounts7,097 6,462 28,371 23,571 
Fiduciary and wealth management fees7,501 7,078 29,688 28,362 
Card payment fees4,533 3,937 20,207 16,619 
Net gains and fees on sales of loans2,087 3,423 10,055 19,689 
Derivative hedge fees326 1,562 3,388 3,850 
Other customer fees362 361 1,935 1,490 
Earnings on cash surrender value of life insurance1,515 2,051 11,174 7,060 
Net realized gains on sales of available for sale securities57 358 1,194 5,674 
Other income672 615 1,929 3,008 
Total Non-Interest Income24,150 25,847 107,941 109,323 
NON-INTEREST EXPENSES
Salaries and employee benefits52,331 42,432 206,893 166,995 
Net occupancy6,638 5,644 26,211 23,326 
Equipment6,148 4,994 23,945 19,401 
Marketing3,157 1,840 7,708 5,762 
Outside data processing fees5,611 4,581 21,682 18,317 
Printing and office supplies390 356 1,588 1,217 
Intangible asset amortization2,303 1,463 8,275 5,747 
FDIC assessments2,295 1,862 10,235 6,243 
Other real estate owned and foreclosure expenses197 171 823 992 
Professional and other outside services3,961 3,627 21,642 11,913 
Other expenses6,668 5,466 26,713 19,300 
Total Non-Interest Expenses89,699 72,436 355,715 279,213 
INCOME BEFORE INCOME TAX83,407 54,684 255,674 240,790 
Income tax expense12,647 6,951 33,585 35,259 
NET INCOME70,760 47,733 222,089 205,531 
Preferred stock dividends468 — 1,406 — 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$70,292 $47,733 $220,683 $205,531 
Per Share Data:
Basic Net Income Available to Common Stockholders$1.20 $0.89 $3.83 $3.82 
Diluted Net Income Available to Common Stockholders$1.19 $0.89 $3.81 $3.81 
Cash Dividends Paid to Common Stockholders$0.32 $0.29 $1.25 $1.13 
Average Diluted Common Shares Outstanding (in thousands)59,384 53,660 57,950 53,984 




FINANCIAL HIGHLIGHTS
(Dollars in thousands)Three Months EndedTwelve Months Ended
December 31,December 31,
2022202120222021
NET CHARGE-OFFS (RECOVERIES)$3,425 $4,575 $2,674 $9,306 
AVERAGE BALANCES:
Total Assets$17,834,468 $15,298,655 $17,220,002 $14,830,397 
Total Loans11,818,911 9,076,652 10,943,051 9,170,650 
Total Earning Assets16,702,944 14,053,310 15,985,691 13,579,113 
Total Deposits14,564,853 12,647,737 14,198,243 12,176,231 
Total Stockholders' Equity1,958,041 1,890,229 1,972,445 1,866,632 
FINANCIAL RATIOS:
Return on Average Assets1.59 %1.25 %1.29 %1.39 %
Return on Average Stockholders' Equity14.36 10.10 11.19 11.01 
Return on Average Common Stockholders' Equity14.55 10.10 11.30 11.01 
Average Earning Assets to Average Assets93.66 91.86 92.83 91.56 
Allowance for Credit Losses - Loans as % of Total Loans1.86 2.11 1.86 2.11 
Net Charge-offs as % of Average Loans (Annualized)0.12 0.20 0.02 0.10 
Average Stockholders' Equity to Average Assets10.98 12.36 11.45 12.59 
Tax Equivalent Yield on Average Earning Assets4.73 3.29 3.94 3.44 
Interest Expense/Average Earning Assets1.01 0.25 0.53 0.26 
Net Interest Margin (FTE) on Average Earning Assets3.72 3.04 3.41 3.18 
Efficiency Ratio48.60 53.49 53.20 50.94 
Tangible Common Book Value Per Share$21.45 $25.21 $21.45 $25.21 

NON-PERFORMING ASSETS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Non-Accrual Loans$42,324 $43,508 $45,970 $42,698 $43,062 
Renegotiated Loans224 195 233 141 329 
Non-Performing Loans (NPL)42,548 43,703 46,203 42,839 43,391 
Other Real Estate Owned and Repossessions6,431 6,454 6,521 6,271 558 
Non-Performing Assets (NPA)48,979 50,157 52,724 49,110 43,949 
90+ Days Delinquent1,737 764 592 2,085 963 
NPAs & 90 Day Delinquent$50,716 $50,921 $53,316 $51,195 $44,912 
Allowance for Credit Losses - Loans$223,277 $226,702 $226,275 $195,984 $195,397 
Quarterly Net Charge-offs (Recoveries)2,674 (427)263 (587)4,575 
NPAs / Actual Assets %0.27 %0.28 %0.30 %0.32 %0.28 %
NPAs & 90 Day / Actual Assets %0.28 %0.29 %0.30 %0.33 %0.29 %
NPAs / Actual Loans and OREO %0.41 %0.43 %0.46 %0.52 %0.47 %
Allowance for Credit Losses - Loans / Actual Loans (%)1.86 %1.94 %1.98 %2.09 %2.11 %
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)0.12 %(0.01)%0.01 %(0.03)%0.20 %




CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20222022202220222021
ASSETS
Cash and due from banks$122,594 $119,532 $212,559 $148,277 $167,146 
Interest-bearing deposits126,061 179,593 136,702 395,262 474,154 
Investment securities, net of allowance for credit losses4,263,788 4,294,768 4,630,030 4,489,263 4,524,353 
Loans held for sale9,094 25,394 9,060 3,938 11,187 
Loans12,003,894 11,650,002 11,397,417 9,356,241 9,241,861 
Less: Allowance for credit losses - loans(223,277)(226,702)(226,275)(195,984)(195,397)
Net loans11,780,617 11,423,300 11,171,142 9,160,257 9,046,464 
Premises and equipment117,118 116,306 117,757 105,883 105,655 
Federal Home Loan Bank stock38,525 38,056 38,111 26,422 28,736 
Interest receivable85,070 71,605 68,728 56,081 57,187 
Goodwill and other intangibles747,844 750,713 753,649 569,494 570,860 
Cash surrender value of life insurance308,311 306,932 323,013 291,881 291,041 
Other real estate owned6,431 6,454 6,521 6,271 558 
Tax asset, deferred and receivable111,222 142,110 114,965 73,422 35,641 
Other assets221,631 244,222 198,255 138,807 140,167 
TOTAL ASSETS$17,938,306 $17,718,985 $17,780,492 $15,465,258 $15,453,149 
LIABILITIES
Deposits:
Noninterest-bearing$3,173,417 $3,356,651 $3,435,331 $2,745,235 $2,709,646 
Interest-bearing11,209,328 11,078,174 11,135,538 10,160,718 10,022,931 
Total Deposits14,382,745 14,434,825 14,570,869 12,905,953 12,732,577 
Borrowings:
Federal funds purchased171,560 185,000 100,000 — — 
Securities sold under repurchase agreements167,413 194,482 186,468 169,697 181,577 
Federal Home Loan Bank advances823,674 643,769 598,865 308,960 334,055 
Subordinated debentures and other borrowings151,298 151,301 151,299 118,677 118,618 
Total Borrowings1,313,945 1,174,552 1,036,632 597,334 634,250 
Interest payable7,530 4,971 2,978 3,589 2,762 
Other liabilities199,316 197,971 192,372 150,749 170,989 
Total Liabilities15,903,536 15,812,319 15,802,851 13,657,625 13,540,578 
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative 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 — — 
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding7,396 7,393 7,383 6,678 6,676 
Additional paid-in capital1,228,626 1,226,695 1,226,378 987,404 985,818 
Retained earnings1,012,774 961,542 917,311 897,818 864,839 
Accumulated other comprehensive income (loss)(239,151)(314,089)(198,556)(84,392)55,113 
Total Stockholders' Equity2,034,770 1,906,666 1,977,641 1,807,633 1,912,571 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$17,938,306 $17,718,985 $17,780,492 $15,465,258 $15,453,149 








CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)December 31,September 30,June 30,March 31,December 31,
20222022202220222021
INTEREST INCOME
Loans receivable:
Taxable$156,102 $128,504 $106,787 $79,075 $80,583 
Tax-exempt6,930 6,500 5,990 5,704 5,635 
Investment securities:
Taxable9,417 10,055 10,372 8,510 8,028 
Tax-exempt17,033 17,261 17,212 15,875 15,411 
Deposits with financial institutions959 704 610 230 173 
Federal Home Loan Bank stock541 314 175 146 163 
Total Interest Income190,982 163,338 141,146 109,540 109,993 
INTEREST EXPENSE
Deposits33,516 16,644 8,485 4,294 5,589 
Federal funds purchased808 418 76 — 1 
Securities sold under repurchase agreements541 372 134 89 75 
Federal Home Loan Bank advances4,932 3,493 1,774 1,218 1,389 
Subordinated debentures and other borrowings2,229 2,105 2,016 1,659 1,666 
Total Interest Expense42,026 23,032 12,485 7,260 8,720 
NET INTEREST INCOME148,956 140,306 128,661 102,280 101,273 
Provision for credit losses - loans— — 16,755 — — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES148,956 140,306 111,906 102,280 101,273 
NON-INTEREST INCOME
Service charges on deposit accounts7,097 7,165 7,690 6,419 6,462 
Fiduciary and wealth management fees7,501 7,221 7,634 7,332 7,078 
Card payment fees4,533 4,776 5,175 5,723 3,937 
Net gains and fees on sales of loans2,087 2,543 3,226 2,199 3,423 
Derivative hedge fees326 700 1,444 918 1,562 
Other customer fees362 501 662 410 361 
Earnings on cash surrender value of life insurance1,515 6,655 1,308 1,696 2,051 
Net realized gains on sales of available for sale securities57 481 90 566 358 
Other income (loss)672 (425)1,048 634 615 
Total Non-Interest Income24,150 29,617 28,277 25,897 25,847 
NON-INTEREST EXPENSES
Salaries and employee benefits52,331 56,002 56,041 42,519 42,432 
Net occupancy6,638 6,738 6,648 6,187 5,644 
Equipment6,148 5,997 6,720 5,080 4,994 
Marketing3,157 2,401 1,414 736 1,840 
Outside data processing fees5,611 6,827 4,881 4,363 4,581 
Printing and office supplies390 472 381 345 356 
Intangible asset amortization2,303 2,303 2,303 1,366 1,463 
FDIC assessments2,295 2,824 2,924 2,192 1,862 
Other real estate owned and foreclosure expenses197 328 (266)564 171 
Professional and other outside services3,961 4,461 10,267 2,953 3,627 
Other expenses6,668 8,025 6,000 6,020 5,466 
Total Non-Interest Expenses89,699 96,378 97,313 72,325 72,436 
INCOME BEFORE INCOME TAX83,407 73,545 42,870 55,852 54,684 
Income tax expense12,647 9,793 3,879 7,266 6,951 
NET INCOME70,760 63,752 38,991 48,586 47,733 
Preferred stock dividends468 469 469 — — 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$70,292 $63,283 $38,522 $48,586 $47,733 
Per Share Data:
Basic Net Income Available to Common Stockholders$1.20 $1.08 $0.64 $0.91 $0.89 
Diluted Net Income Available to Common Stockholders$1.19 $1.08 $0.63 $0.91 $0.89 
Cash Dividends Paid to Common Stockholders$0.32 $0.32 $0.32 $0.29 $0.29 
Average Diluted Common Shares Outstanding (in thousands)59,384 59,339 59,308 53,616 53,660 
FINANCIAL RATIOS:
Return on Average Assets1.59 %1.43 %0.88 %1.26 %1.25 %
Return on Average Stockholders' Equity14.36 12.54 7.62 10.28 10.10 
Return on Average Common Stockholders' Equity14.55 12.70 7.72 10.28 10.10 
Average Earning Assets to Average Assets93.66 92.90 92.45 92.23 91.86 
Allowance for Credit Losses - Loans as % of Total Loans1.86 1.94 1.98 2.09 2.11 
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)0.12 (0.01)0.01 (0.03)0.20 
Average Stockholders' Equity to Average Assets10.98 11.36 11.37 12.23 12.36 
Tax Equivalent Yield on Average Earning Assets4.73 4.11 3.58 3.23 3.29 
Interest Expense/Average Earning Assets1.01 0.56 0.30 0.20 0.25 
Net Interest Margin (FTE) on Average Earning Assets3.72 3.55 3.28 3.03 3.04 
Efficiency Ratio48.60 53.34 58.45 52.79 53.49 
Tangible Common Book Value Per Share$21.45 $19.26 $20.45 $23.26 $25.21 




LOANS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Commercial and industrial loans$3,437,126 $3,330,529 $3,297,477 $2,826,660 $2,714,565 
Agricultural land, production and other loans to farmers241,793 221,954 214,904 209,077 246,442 
Real estate loans:
Construction835,582 828,923 745,983 552,975 523,066 
Commercial real estate, non-owner occupied2,407,475 2,299,272 2,423,185 2,073,197 2,135,459 
Commercial real estate, owner occupied1,246,528 1,268,567 1,264,563 974,521 986,720 
Residential2,096,655 1,990,668 1,813,297 1,226,695 1,159,127 
Home equity630,632 621,619 586,108 512,641 523,754 
Individuals' loans for household and other personal expenditures175,211 173,225 157,264 147,593 146,092 
Public finance and other commercial loans932,892 915,245 894,636 832,882 806,636 
Loans12,003,894 11,650,002 11,397,417 9,356,241 9,241,861 
Allowance for credit losses - loans(223,277)(226,702)(226,275)(195,984)(195,397)
NET LOANS$11,780,617 $11,423,300 $11,171,142 $9,160,257 $9,046,464 

DEPOSITS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Demand deposits$8,448,797 $8,534,950 $8,785,889 $7,806,033 $7,704,190 
Savings deposits4,657,140 5,054,490 4,875,880 4,444,417 4,334,802 
Certificates and other time deposits of $100,000 or more742,539 443,588 436,942 252,033 273,379 
Other certificates and time deposits468,712 381,365 446,973 380,293 389,752 
Brokered deposits65,557 20,432 25,185 23,177 30,454 
TOTAL DEPOSITS$14,382,745 $14,434,825 $14,570,869 $12,905,953 $12,732,577 





CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Three Months Ended
December 31, 2022December 31, 2021
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
Assets: 
Interest-bearing deposits$187,204 $959 2.05 %$558,677 $173 0.12 %
Federal Home Loan Bank stock38,066 541 5.68 28,736 163 2.27 
Investment Securities: (1)
 
Taxable1,987,161 9,417 1.90 1,936,519 8,028 1.66 
Tax-Exempt (2)
2,671,602 21,561 3.23 2,452,726 19,508 3.18 
Total Investment Securities4,658,763 30,978 2.66 4,389,245 27,536 2.51 
Loans held for sale4,732 71 6.00 20,688 196 3.79 
Loans: (3)
Commercial8,309,561 126,850 6.11 6,703,241 65,867 3.93 
Real Estate Mortgage1,827,749 16,654 3.64 889,571 7,866 3.54 
Installment843,562 12,527 5.94 711,309 6,654 3.74 
Tax-Exempt (2)
833,307 8,772 4.21 751,843 7,133 3.79 
Total Loans11,818,911 164,874 5.58 9,076,652 87,716 3.87 
Total Earning Assets16,702,944 197,352 4.73 %14,053,310 115,588 3.29 %
Total Non-Earning Assets1,131,524 1,245,345 
Total Assets$17,834,468 $15,298,655  
Liabilities:  
Interest-bearing deposits:  
Interest-bearing deposits$5,238,422 $16,810 1.28 %$4,912,556 $3,637 0.30 %
Money market deposits3,018,644 10,778 1.43 2,518,612 809 0.13 
Savings deposits1,895,551 2,125 0.45 1,828,631 461 0.10 
Certificates and other time deposits1,038,502 3,803 1.46 706,617 682 0.39 
Total Interest-bearing Deposits11,191,119 33,516 1.20 9,966,416 5,589 0.22 
Borrowings1,097,586 8,510 3.10 620,398 3,131 2.02 
Total Interest-bearing Liabilities12,288,705 42,026 1.37 10,586,814 8,720 0.33 
Noninterest-bearing deposits3,373,734 2,681,321  
Other liabilities213,988 140,291  
Total Liabilities15,876,427 13,408,426  
Stockholders' Equity1,958,041 1,890,229  
Total Liabilities and Stockholders' Equity$17,834,468 42,026 $15,298,655 8,720 
Net Interest Income (FTE)$155,326  $106,868 
Net Interest Spread (FTE) (4)
3.36 %  2.96 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets4.73 %3.29 %
Interest Expense / Average Earning Assets1.01 %0.25 %
Net Interest Margin (FTE) (5)
3.72 %3.04 %
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2022 and 2021. These totals equal $6,370 and $5,595 for the three months ended December 31, 2022 and 2021, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.










CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Twelve Months Ended
December 31, 2022December 31, 2021
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
Assets:
Interest-bearing deposits$296,863 $2,503 0.84 %$521,637 $634 0.12 %
Federal Home Loan Bank stock35,580 1,176 3.31 28,736 597 2.08 
Investment Securities: (1)
Taxable2,056,586 38,354 1.86 1,751,910 29,951 1.71 
Tax-Exempt (2)
2,653,611 85,292 3.21 2,106,180 70,039 3.33 
Total Investment Securities4,710,197 123,646 2.63 3,858,090 99,990 2.59 
Loans held for sale14,715 692 4.70 19,190 747 3.89 
Loans: (3)
Commercial7,877,271 380,621 4.83 6,818,968 276,368 4.05 
Real Estate Mortgage1,471,802 51,853 3.52 916,314 34,783 3.80 
Installment785,520 37,302 4.75 683,925 26,111 3.82 
Tax-Exempt (2)
793,743 31,803 4.01 732,253 27,987 3.82 
Total Loans10,943,051 502,271 4.59 9,170,650 365,996 3.99 
Total Earning Assets15,985,691 629,596 3.94 %13,579,113 467,217 3.44 %
Total Non-Earning Assets1,234,311 1,251,284 
Total Assets$17,220,002 $14,830,397 
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits$5,206,131 $32,511 0.62 %$4,769,482 $14,512 0.30 %
Money market deposits2,915,397 19,170 0.66 2,351,803 3,203 0.14 
Savings deposits1,927,122 5,019 0.26 1,754,972 1,886 0.11 
Certificates and other time deposits881,176 6,239 0.71 783,733 3,718 0.47 
Total Interest-bearing Deposits10,929,826 62,939 0.58 9,659,990 23,319 0.24 
Borrowings888,392 21,864 2.46 639,791 12,633 1.97 
Total Interest-bearing Liabilities11,818,218 84,803 0.72 10,299,781 35,952 0.35 
Noninterest-bearing deposits3,268,417 2,516,241 
Other liabilities160,922 147,743 
Total Liabilities15,247,557 12,963,765 
Stockholders' Equity1,972,445 1,866,632 
Total Liabilities and Stockholders' Equity$17,220,002 84,803 $14,830,397 35,952 
Net Interest Income (FTE)$544,793 $431,265 
Net Interest Spread (FTE) (4)
3.22 %3.09 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets3.94 %3.44 %
Interest Expense / Average Earning Assets0.53 %0.26 %
Net Interest Margin (FTE) (5)
3.41 %3.18 %
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2022 and 2021. These totals equal $24,590 and $20,585 for the twelve months ended December 31, 2022 and 2021, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.










ADJUSTED EPS EXCLUDING PAYCHECK PROTECTION PROGRAM ("PPP") AND ACQUISITION-RELATED EXPENSES - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2022202220222022202120222021
Net Income Available to Common Stockholders - GAAP$70,292 $63,283 $38,522 $48,586 $47,733 $220,683 $205,531 
Adjustments:
PPP loan income(109)(323)(891)(1,884)(3,721)(3,207)(30,900)
Acquisition-related expenses413 3,417 12,549 152 — 16,531 — 
Acquisition-related provision expense— — 16,755 — — 16,755 — 
Tax on adjustment(75)(759)(6,967)425 912 (7,376)7,577 
Adjusted Net Income Available to Common Stockholders - Non-GAAP$70,521 $65,618 $59,968 $47,279 $44,924 $243,386 $182,208 
Average Diluted Common Shares Outstanding (in thousands)59,384 59,339 59,308 53,616 53,660 57,950 53,984 
Diluted Earnings Per Common Share - GAAP$1.19 $1.08 $0.63 $0.91 $0.89 $3.81 $3.81 
Adjustments:
PPP loan income(0.01)— (0.01)(0.04)(0.07)(0.06)(0.57)
Acquisition-related expenses0.010.050.22— — 0.28— 
Acquisition-related provision expense— — 0.30 — — 0.30 — 
Tax on adjustment— (0.01)(0.13)0.01 0.02 (0.13)0.14 
Adjusted Diluted Earnings Per Common Share - Non-GAAP$1.19 $1.12 $1.01 $0.88 $0.84 $4.20 $3.38