EX-99.1 2 a1q23earningsreleaseex991.htm EX-99.1 Document




N / E / W / S R / E / L / E / A / S / E
    
April 25, 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 FIRST QUARTER 2023 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME)

First Quarter 2023 Highlights:

•    Net income available to common stockholders was $63.6 million for the first quarter and diluted earnings per common share totaled $1.07, compared to $48.6 million and $.91 in the first quarter of 2022, and $70.3 million and $1.19 in the fourth quarter of 2022.
•    Adjusted net income available to common stockholders1 for the first quarter was $63.6 million and adjusted diluted earnings per common share1 totaled $1.07, compared to $47.3 million and $.88 in the first quarter of 2022, and $70.5 million and $1.19 in the fourth quarter of 2022.
•    Strong liquidity and capital with Common Equity Tier 1 Capital Ratio of 10.82%.
•    Deposit growth of $320.5 million, or 8.9% annualized on a linked quarter basis.
•    Total loans grew $237.9 million, or 7.9% annualized on a linked quarter basis.
•    Non-accrual loans totaled $46.6 million compared to $42.3 million on a linked quarter basis.
•    The efficiency ratio totaled 51.72% for the quarter.

Mark Hardwick, Chief Executive Officer, stated, “Given the disruption in the banking industry, we are pleased to share a quarter-end balance sheet that reflects a very safe and sound institution with continued growth. Loans, Deposits, on-hand liquidity and capital all improved over year-end. We prioritized enhancing our liquidity position during the quarter while also meeting the demands of the customer base. Our team of bankers have been true brand ambassadors during the quarter by showing poise and confidence throughout the communities we serve. We remain focused on delivering our plan for the year.”

First Quarter Financial Results:

First Merchants Corporation (the “Corporation) has reported first quarter 2023 net income available to common stockholders of $63.6 million compared to $48.6 million during the same period in 2022. Earnings per share for the period totaled $1.07 per share compared to the first quarter of 2022 result of $.91 per share.

Total assets equaled $18.2 billion as of quarter-end and loans totaled $12.3 billion. Total loans increased $2.9 billion during the past twelve months. The acquisition of Level One contributed $1.6 billion of loans. Excluding acquired loans and PPP forgiveness, the Corporation experienced organic loan growth of $1.3 billion, or 14.4 percent, during the past twelve months. This was offset by the forgiveness of PPP loans of $88.5 million. Total loans grew organically $237.9 or 7.9% annualized on a linked quarter basis.

Investments, totaling $4.1 billion, decreased $431.9 million, or 9.6 percent, during the last twelve months and decreased $206.4 million or 19.4% annualized on a linked quarter basis.

Total deposits equaled $14.7 billion as of quarter-end and increased by $1.8 billion over the past twelve months. The acquisition of Level One contributed $1.9 billion in deposits resulting in an organic deposit decline of $133.5 million or 1.0%. Total deposits grew $320.5 million or 8.9% annualized on a linked quarter basis. The loan to deposit ratio for the current quarter ended at 83.3 percent.




The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $223.1 million as of quarter-end, or 1.82 percent of total loans, an increase of $27.1 million over prior year due to the acquisition of Level One. Loan charge offs, net of recoveries, for the quarter totaled $0.2 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 0.30% for the first quarter of 2023, a decrease of two basis points compared to 0.32% in the first quarter of 2022.

Net-interest income, totaling $144.1 million for the quarter, declined $4.9 million, or 3.3 percent, compared to prior quarter and increased $41.8 million, or 40.9 percent compared to the first quarter of 2022. Stated net-interest margin on a tax equivalent basis, totaling 3.58 percent, declined by 14 basis points compared to the fourth quarter of 2022 and increased 55 basis points compared to the first quarter of 2022. Net-interest margin excluding the impact of fair value accretion and PPP loans totaled 3.52%, a decrease of 13 basis points compared to 3.65% for the fourth quarter of 2022 and an increase of 55 basis points from the first quarter of 2022. During the quarter, increased deposit costs and mix offset the increase in earning asset yields causing a reduction of margin of eight basis points. The lower day count in the quarter caused a decline of five basis points.

Non-interest income, totaling $25.0 million for the quarter, increased $0.9 million compared to the fourth quarter of 2022 and decreased $0.9 million from the first quarter of 2022. The increase over the fourth quarter of 2022 was driven primarily by higher card payment fees, derivative hedge fees, offset by losses on the sale of available for sale securities.

Non-interest expense totaled $93.7 million for the quarter, an increase of $4.0 million from the fourth quarter of 2022. The increase was primarily due to higher salaries, incentives and employee benefits offset by lower marketing expenses and FDIC assessments. A one-time FDIC assessment credit of approximately $2.0 million was recorded lowering overall FDIC assessment cost for the quarter. Additionally, gains on the sales of properties were recorded in the fourth quarter and reflected in Other Expenses that did not recur in the current quarter, causing a negative quarter-over quarter variance.

The Corporation’s total risk-based capital ratio equaled 13.23 percent, common equity tier 1 capital ratio equaled 10.82 percent, and the tangible common equity ratio totaled 7.75 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

1 See “Non-GAAP Financial Information” for reconciliation









CONFERENCE CALL

First Merchants Corporation will conduct a first quarter earnings conference call and web cast at 10:30 a.m. (ET) on Tuesday, April 25, 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/BI257d3b7683714a4382f8765266a99667))

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/trq9ekv4) during the time of the call. A replay of the webcast will be available until April 25, 2024.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

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

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

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

Forward-Looking Statements

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




CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)March 31,
20232022
ASSETS
Cash and due from banks$125,818 $148,277 
Interest-bearing deposits352,695 395,262 
Investment securities, net of allowance for credit losses of $245,000 and $245,0004,057,389 4,489,263 
Loans held for sale9,408 3,938 
Loans12,241,461 9,356,241 
Less: Allowance for credit losses - loans(223,052)(195,984)
Net loans12,018,409 9,160,257 
Premises and equipment115,857 105,883 
Federal Home Loan Bank stock41,878 26,422 
Interest receivable85,515 56,081 
Goodwill and other intangibles745,647 569,494 
Cash surrender value of life insurance309,090 291,881 
Other real estate owned7,777 6,271 
Tax asset, deferred and receivable103,070 73,422 
Other assets206,355 138,807 
TOTAL ASSETS$18,178,908 $15,465,258 
LIABILITIES
Deposits:
Noninterest-bearing$2,964,355 $2,745,235 
Interest-bearing11,738,932 10,160,718 
Total Deposits14,703,287 12,905,953 
Borrowings:
Federal funds purchased20 — 
Securities sold under repurchase agreements179,067 169,697 
Federal Home Loan Bank advances823,577 308,960 
Subordinated debentures and other borrowings151,312 118,677 
Total Borrowings1,153,976 597,334 
Interest payable11,979 3,589 
Other liabilities187,218 150,749 
Total Liabilities16,056,460 13,657,625 
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 - 59,257,051 and 53,424,823 shares7,407 6,678 
Additional paid-in capital1,231,532 987,404 
Retained earnings1,057,298 897,818 
Accumulated other comprehensive loss(198,914)(84,392)
Total Stockholders' Equity2,122,448 1,807,633 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,178,908 $15,465,258 







CONSOLIDATED STATEMENTS OF INCOMEThree Months Ended
(Dollars In Thousands, Except Per Share Amounts)March 31,
20232022
INTEREST INCOME
Loans receivable:
Taxable$172,353 $79,075 
Tax-exempt7,709 5,704 
Investment securities:
Taxable9,087 8,510 
Tax-exempt16,070 15,875 
Deposits with financial institutions637 230 
Federal Home Loan Bank stock542 146 
Total Interest Income206,398 109,540 
INTEREST EXPENSE
Deposits50,685 4,294 
Federal funds purchased1,297 — 
Securities sold under repurchase agreements848 89 
Federal Home Loan Bank advances7,064 1,218 
Subordinated debentures and other borrowings2,385 1,659 
Total Interest Expense62,279 7,260 
NET INTEREST INCOME144,119 102,280 
Provision for credit losses - loans— — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES144,119 102,280 
NON-INTEREST INCOME
Service charges on deposit accounts7,359 6,419 
Fiduciary and wealth management fees7,862 7,332 
Card payment fees5,172 5,723 
Net gains and fees on sales of loans2,399 2,199 
Derivative hedge fees1,148 918 
Other customer fees517 410 
Earnings on cash surrender value of life insurance1,288 1,696 
Net realized gains (losses) on sales of available for sale securities(1,571)566 
Other income823 634 
Total Non-Interest Income24,997 25,897 
NON-INTEREST EXPENSES
Salaries and employee benefits57,459 42,519 
Net occupancy7,259 6,187 
Equipment6,126 5,080 
Marketing1,309 736 
Outside data processing fees6,113 4,363 
Printing and office supplies383 345 
Intangible asset amortization2,197 1,366 
FDIC assessments1,396 2,192 
Other real estate owned and foreclosure expenses(18)564 
Professional and other outside services3,698 2,953 
Other expenses7,798 6,020 
Total Non-Interest Expenses93,720 72,325 
INCOME BEFORE INCOME TAX75,396 55,852 
Income tax expense11,317 7,266 
NET INCOME64,079 48,586 
Preferred stock dividends469 — 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$63,610 $48,586 
Per Share Data:
Basic Net Income Available to Common Stockholders$1.07 $0.91 
Diluted Net Income Available to Common Stockholders$1.07 $0.91 
Cash Dividends Paid to Common Stockholders$0.32 $0.29 
Average Diluted Common Shares Outstanding (in thousands)59,441 53,616 




FINANCIAL HIGHLIGHTS
(Dollars in thousands)Three Months Ended
March 31,
20232022
NET CHARGE-OFFS (RECOVERIES)$225 $(587)
AVERAGE BALANCES:
Total Assets$18,022,195 $15,464,605 
Total Loans12,135,384 9,255,928 
Total Earning Assets16,824,407 14,262,777 
Total Deposits14,423,409 12,817,690 
Total Stockholders' Equity2,083,125 1,891,223 
FINANCIAL RATIOS:
Return on Average Assets1.42 %1.26 %
Return on Average Stockholders' Equity12.21 10.28 
Return on Tangible Common Stockholders' Equity19.82 14.99 
Average Earning Assets to Average Assets93.35 92.23 
Allowance for Credit Losses - Loans as % of Total Loans1.82 2.09 
Net Charge-offs as % of Average Loans (Annualized)0.01 (0.03)
Average Stockholders' Equity to Average Assets11.56 12.23 
Tax Equivalent Yield on Average Earning Assets5.06 3.23 
Interest Expense/Average Earning Assets1.48 0.20 
Net Interest Margin (FTE) on Average Earning Assets3.58 3.03 
Efficiency Ratio51.72 52.79 
Tangible Common Book Value Per Share$22.93 $23.26 

NON-PERFORMING ASSETS
(Dollars In Thousands)March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Non-Accrual Loans$46,576 $42,324 $43,508 $45,970 $42,698 
Troubled Debt Restructures (TDR)— 224 195 233 141 
Non-Performing Loans (NPL)46,576 42,548 43,703 46,203 42,839 
Other Real Estate Owned and Repossessions7,777 6,431 6,454 6,521 6,271 
Non-Performing Assets (NPA)54,353 48,979 50,157 52,724 49,110 
90+ Days Delinquent7,032 1,737 764 592 2,085 
NPAs & 90 Day Delinquent$61,385 $50,716 $50,921 $53,316 $51,195 
Allowance for Credit Losses - Loans$223,052 $223,277 $226,702 $226,275 $195,984 
Quarterly Net Charge-offs (Recoveries)225 2,674 (427)263 (587)
NPAs / Actual Assets %0.30 %0.27 %0.28 %0.30 %0.32 %
NPAs & 90 Day / Actual Assets %0.34 %0.28 %0.29 %0.30 %0.33 %
NPAs / Actual Loans and OREO %0.44 %0.41 %0.43 %0.46 %0.52 %
Allowance for Credit Losses - Loans / Actual Loans (%)1.82 %1.86 %1.94 %1.98 %2.09 %
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)0.01 %0.12 %(0.01)%0.01 %(0.03)%




CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)March 31,December 31,September 30,June 30,March 31,
20232022202220222022
ASSETS
Cash and due from banks$125,818 $122,594 $119,532 $212,559 $148,277 
Interest-bearing deposits352,695 126,061 179,593 136,702 395,262 
Investment securities, net of allowance for credit losses4,057,389 4,263,788 4,294,768 4,630,030 4,489,263 
Loans held for sale9,408 9,094 25,394 9,060 3,938 
Loans12,241,461 12,003,894 11,650,002 11,397,417 9,356,241 
Less: Allowance for credit losses - loans(223,052)(223,277)(226,702)(226,275)(195,984)
Net loans12,018,409 11,780,617 11,423,300 11,171,142 9,160,257 
Premises and equipment115,857 117,118 116,306 117,757 105,883 
Federal Home Loan Bank stock41,878 38,525 38,056 38,111 26,422 
Interest receivable85,515 85,070 71,605 68,728 56,081 
Goodwill and other intangibles745,647 747,844 750,713 753,649 569,494 
Cash surrender value of life insurance309,090 308,311 306,932 323,013 291,881 
Other real estate owned7,777 6,431 6,454 6,521 6,271 
Tax asset, deferred and receivable103,070 111,222 142,110 114,965 73,422 
Other assets206,355 221,631 244,222 198,255 138,807 
TOTAL ASSETS$18,178,908 $17,938,306 $17,718,985 $17,780,492 $15,465,258 
LIABILITIES
Deposits:
Noninterest-bearing$2,964,355 $3,173,417 $3,356,651 $3,435,331 $2,745,235 
Interest-bearing11,738,932 11,209,328 11,078,174 11,135,538 10,160,718 
Total Deposits14,703,287 14,382,745 14,434,825 14,570,869 12,905,953 
Borrowings:
Federal funds purchased20 171,560 185,000 100,000 — 
Securities sold under repurchase agreements179,067 167,413 194,482 186,468 169,697 
Federal Home Loan Bank advances823,577 823,674 643,769 598,865 308,960 
Subordinated debentures and other borrowings151,312 151,298 151,301 151,299 118,677 
Total Borrowings1,153,976 1,313,945 1,174,552 1,036,632 597,334 
Interest payable11,979 7,530 4,971 2,978 3,589 
Other liabilities187,218 199,316 197,971 192,372 150,749 
Total Liabilities16,056,460 15,903,536 15,812,319 15,802,851 13,657,625 
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares125 125 125 125 125 
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized -- 10,000 non-cumulative perpetual shares
Issued and outstanding - 10,000 non-cumulative perpetual shares25,000 25,000 25,000 25,000 — 
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding7,407 7,396 7,393 7,383 6,678 
Additional paid-in capital1,231,532 1,228,626 1,226,695 1,226,378 987,404 
Retained earnings1,057,298 1,012,774 961,542 917,311 897,818 
Accumulated other comprehensive loss(198,914)(239,151)(314,089)(198,556)(84,392)
Total Stockholders' Equity2,122,448 2,034,770 1,906,666 1,977,641 1,807,633 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,178,908 $17,938,306 $17,718,985 $17,780,492 $15,465,258 








CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)MarchDecember 31,September 30,June 30,March 31,
20232022202220222022
INTEREST INCOME
Loans receivable:
Taxable$172,353 $156,102 $128,504 $106,787 $79,075 
Tax-exempt7,709 6,930 6,500 5,990 5,704 
Investment securities:
Taxable9,087 9,417 10,055 10,372 8,510 
Tax-exempt16,070 17,033 17,261 17,212 15,875 
Deposits with financial institutions637 959 704 610 230 
Federal Home Loan Bank stock542 541 314 175 146 
Total Interest Income206,398 190,982 163,338 141,146 109,540 
INTEREST EXPENSE
Deposits50,685 33,516 16,644 8,485 4,294 
Federal funds purchased1,297 808 418 76 — 
Securities sold under repurchase agreements848 541 372 134 89 
Federal Home Loan Bank advances7,064 4,932 3,493 1,774 1,218 
Subordinated debentures and other borrowings2,385 2,229 2,105 2,016 1,659 
Total Interest Expense62,279 42,026 23,032 12,485 7,260 
NET INTEREST INCOME144,119 148,956 140,306 128,661 102,280 
Provision for credit losses - loans— — — 16,755 — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES144,119 148,956 140,306 111,906 102,280 
NON-INTEREST INCOME
Service charges on deposit accounts7,359 7,097 7,165 7,690 6,419 
Fiduciary and wealth management fees7,862 7,501 7,221 7,634 7,332 
Card payment fees5,172 4,533 4,776 5,175 5,723 
Net gains and fees on sales of loans2,399 2,087 2,543 3,226 2,199 
Derivative hedge fees1,148 326 700 1,444 918 
Other customer fees517 362 501 662 410 
Earnings on cash surrender value of life insurance1,288 1,515 6,655 1,308 1,696 
Net realized gains (losses) on sales of available for sale securities(1,571)57 481 90 566 
Other income (loss)823 672 (425)1,048 634 
Total Non-Interest Income24,997 24,150 29,617 28,277 25,897 
NON-INTEREST EXPENSES
Salaries and employee benefits57,459 52,331 56,002 56,041 42,519 
Net occupancy7,259 6,638 6,738 6,648 6,187 
Equipment6,126 6,148 5,997 6,720 5,080 
Marketing1,309 3,157 2,401 1,414 736 
Outside data processing fees6,113 5,611 6,827 4,881 4,363 
Printing and office supplies383 390 472 381 345 
Intangible asset amortization2,197 2,303 2,303 2,303 1,366 
FDIC assessments1,396 2,295 2,824 2,924 2,192 
Other real estate owned and foreclosure expenses(18)197 328 (266)564 
Professional and other outside services3,698 3,961 4,461 10,267 2,953 
Other expenses7,798 6,668 8,025 6,000 6,020 
Total Non-Interest Expenses93,720 89,699 96,378 97,313 72,325 
INCOME BEFORE INCOME TAX75,396 83,407 73,545 42,870 55,852 
Income tax expense11,317 12,647 9,793 3,879 7,266 
NET INCOME64,079 70,760 63,752 38,991 48,586 
Preferred stock dividends469 468 469 469 — 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$63,610 $70,292 $63,283 $38,522 $48,586 
Per Share Data:
Basic Net Income Available to Common Stockholders$1.07 $1.20 $1.08 $0.64 $0.91 
Diluted Net Income Available to Common Stockholders$1.07 $1.19 $1.08 $0.63 $0.91 
Cash Dividends Paid to Common Stockholders$0.32 $0.32 $0.32 $0.32 $0.29 
Average Diluted Common Shares Outstanding (in thousands)59,441 59,384 59,339 59,308 53,616 
FINANCIAL RATIOS:
Return on Average Assets1.42 %1.59 %1.43 %0.88 %1.26 %
Return on Average Stockholders' Equity12.21 14.36 12.54 7.62 10.28 
Return on Tangible Common Stockholders' Equity19.82 24.21 20.85 12.91 14.99 
Average Earning Assets to Average Assets93.35 93.66 92.90 92.45 92.23 
Allowance for Credit Losses - Loans as % of Total Loans1.82 1.86 1.94 1.98 2.09 
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)0.01 0.12 (0.01)0.01 (0.03)
Average Stockholders' Equity to Average Assets11.56 10.98 11.36 11.37 12.23 
Tax Equivalent Yield on Average Earning Assets5.06 4.73 4.11 3.58 3.23 
Interest Expense/Average Earning Assets1.48 1.01 0.56 0.30 0.20 
Net Interest Margin (FTE) on Average Earning Assets3.58 3.72 3.55 3.28 3.03 
Efficiency Ratio51.72 48.60 53.34 58.45 52.79 
Tangible Common Book Value Per Share$22.93 $21.45 $19.26 $20.45 $23.26 




LOANS
(Dollars In Thousands)March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Commercial and industrial loans$3,502,204 $3,437,126 $3,330,529 $3,297,477 $2,826,660 
Agricultural land, production and other loans to farmers219,598 241,793 221,954 214,904 209,077 
Real estate loans:
Construction960,979 835,582 828,923 745,983 552,975 
Commercial real estate, non-owner occupied2,375,410 2,407,475 2,299,272 2,423,185 2,073,197 
Commercial real estate, owner occupied1,244,117 1,246,528 1,268,567 1,264,563 974,521 
Residential2,185,943 2,096,655 1,990,668 1,813,297 1,226,695 
Home equity621,354 630,632 621,619 586,108 512,641 
Individuals' loans for household and other personal expenditures172,389 175,211 173,225 157,264 147,593 
Public finance and other commercial loans959,467 932,892 915,245 894,636 832,882 
Loans12,241,461 12,003,894 11,650,002 11,397,417 9,356,241 
Allowance for credit losses - loans(223,052)(223,277)(226,702)(226,275)(195,984)
NET LOANS$12,018,409 $11,780,617 $11,423,300 $11,171,142 $9,160,257 

DEPOSITS
(Dollars In Thousands)March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Demand deposits$8,422,387 $8,448,797 $8,534,950 $8,785,889 $7,806,033 
Savings deposits4,499,487 4,657,140 5,054,490 4,875,880 4,444,417 
Certificates and other time deposits of $100,000 or more1,040,379 742,539 443,588 436,942 252,033 
Other certificates and time deposits574,886 468,712 381,365 446,973 380,293 
Brokered certificates of deposits166,148 65,557 20,432 25,185 23,177 
TOTAL DEPOSITS$14,703,287 $14,382,745 $14,434,825 $14,570,869 $12,905,953 





CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Three Months Ended
March 31, 2023March 31, 2022
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
ASSETS
Interest-bearing deposits$172,814 $637 1.47 %$484,626 $230 0.19 %
Federal Home Loan Bank stock39,759 542 5.45 27,914 146 2.09 
Investment securities: (1)
Taxable1,924,079 9,087 1.89 1,957,675 8,510 1.74 
Tax-exempt (2)
2,552,371 20,342 3.19 2,536,634 20,095 3.17 
Total Investment Securities4,476,450 29,429 2.63 4,494,309 28,605 2.55 
Loans held for sale23,538 360 6.12 4,352 40 3.68 
Loans: (3)
Commercial8,483,879 139,661 6.58 6,868,438 64,679 3.77 
Real estate mortgage1,914,640 18,391 3.84 924,268 7,840 3.39 
Installment840,450 13,941 6.64 711,038 6,516 3.67 
Tax-exempt (2)
872,877 9,758 4.47 747,832 7,220 3.86 
Total Loans12,135,384 182,111 6.00 9,255,928 86,295 3.73 
Total Earning Assets16,824,407 212,719 5.06 %14,262,777 115,276 3.23 %
Total Non-Earning Assets1,197,788 1,201,828 
TOTAL ASSETS$18,022,195 $15,464,605 
LIABILITIES
Interest-bearing deposits:
Interest-bearing deposits$5,263,601 $24,662 1.87 %$5,027,466 $2,408 0.19 %
Money market deposits2,746,047 13,577 1.98 2,514,429 872 0.14 
Savings deposits1,826,209 2,965 0.65 1,867,411 441 0.09 
Certificates and other time deposits1,466,275 9,481 2.59 676,661 573 0.34 
Total Interest-Bearing Deposits11,302,132 50,685 1.79 10,085,967 4,294 0.17 
Borrowings:1,293,309 11,594 3.59 616,572 2,966 1.92 
Total Interest-Bearing Liabilities12,595,441 62,279 1.98 10,702,539 7,260 0.27 
Noninterest-bearing deposits3,121,277 2,731,723 
Other liabilities222,352 139,120 
Total Liabilities15,939,070 13,573,382 
STOCKHOLDERS' EQUITY2,083,125 1,891,223 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,022,195 62,279 $15,464,605 7,260 
Net Interest Income (FTE)$150,440 $108,016 
Net Interest Spread (FTE) (4)
3.08 %2.96 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets5.06 %3.23 %
Interest Expense / Average Earning Assets1.48 %0.20 %
Net Interest Margin (FTE) (5)
3.58 %3.03 %
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2023 and 2022. These totals equal $6,321 and $5,736 for the three months ended March 31, 2023 and 2022, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.






ADJUSTED EPS EXCLUDING PAYCHECK PROTECTION PROGRAM ("PPP") AND ACQUISITION-RELATED EXPENSES - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Net Income Available to Common Stockholders - GAAP$63,610 $70,292 $63,283 $38,522 $48,586 
Adjustments:
PPP loan income(25)(109)(323)(891)(1,884)
Acquisition-related expenses— 413 3,417 12,549 152 
Acquisition-related provision expense— — — 16,755 — 
Tax on adjustment6 (75)(759)(6,967)425 
Adjusted Net Income Available to Common Stockholders - Non-GAAP$63,591 $70,521 $65,618 $59,968 $47,279 
Average Diluted Common Shares Outstanding (in thousands)59,441 59,384 59,339 59,308 53,616 
Diluted Earnings Per Common Share - GAAP$1.07 $1.19 $1.08 $0.63 $0.91 
Adjustments:
PPP loan income— (0.01)— (0.01)(0.04)
Acquisition-related expenses— 0.010.050.22 — 
Acquisition-related provision expense— — — 0.30 — 
Tax on adjustment— — (0.01)(0.13)0.01 
Adjusted Diluted Earnings Per Common Share - Non-GAAP$1.07 $1.19 $1.12 $1.01 $0.88 

RETURN ON TANGIBLE COMMON EQUITY
(Dollars In Thousands)Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20232022202220222022
Total Average Stockholders' Equity (GAAP)$2,083,125 $1,958,041 $2,018,156 $2,021,123 $1,891,223 
Less: Average Preferred Stock(25,125)(25,125)(25,125)(25,125)(125)
Less: Average Intangible Assets, Net of Tax(739,190)(741,632)(744,069)(745,614)(565,476)
Average Tangible Common Equity, Net of Tax (Non-GAAP)$1,318,810 $1,191,284 $1,248,962 $1,250,384 $1,325,622 
Net Income Available to Common Stockholders (GAAP)$63,610 $70,292 $63,283 $38,521 $48,586 
Plus: Intangible Asset Amortization, Net of Tax1,734 1,819 1,819 1,820 1,079 
Tangible Net Income (Non-GAAP)$65,344 $72,111 $65,102 $40,341 $49,665 
Return on Tangible Common Equity (Non-GAAP)19.82 %24.21 %20.85 %12.91 %14.99 %