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

July 23, 2020

FOR IMMEDIATE RELEASE

For more information, contact:

Nicole M. Weaver, Vice President and Director of Corporate Administration

765-521-7619

http://www.firstmerchants.com

SOURCE: First Merchants Corporation, Muncie, Indiana

FIRST MERCHANTS CORPORATION ANNOUNCES SECOND QUARTER 2020 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME) has reported second quarter 2020 net income of $33 million compared to $41.1 million during the same period in 2019. Earnings per share for the period totaled $.62 per share compared to the second quarter of 2019 result of $.83 per share. Year-to-date net income totaled $67.3 million compared to $79.9 million during the six months ended June 30, 2019. Year-to-date earnings per share totaled $1.24 compared to $1.61 during the same period in 2019.

Total assets equaled $13.8 billion as of the quarter-ended June 30, 2020 and loans totaled $9.3 billion. The Corporation’s loan portfolio increased by $1.8 billion, or 23.7 percent, during the past twelve months. Investments increased $696 million, or 33.3 percent, during the same period and now totals $2.8 billion. Total deposits equaled $11 billion as of quarter-end and increased by $2.6 billion, or 31.8 percent, from the same period in 2019. Our acquisition of Monroe Bank & Trust (“MBT”), which closed on September 1, 2019, accounted for $733 million of loan growth and $1.1 billion of deposit growth. Additionally, Payroll Protection Program (“PPP”) loans accounted for $883 million of the period’s loan growth.

The loan to deposit ratio now totals 84.8 percent and loan to asset ratio totals 67.3 percent. As of June 30, 2020, the Corporation’s total risk-based capital ratio equaled 14.2 percent, the common equity tier 1 capital ratio equaled 11.8 percent, and the tangible common equity ratio totaled 9.31 percent. Excluding PPP loans, our tangible common equity ratio totaled 9.93 percent.

The Corporation’s provision expense totaled $21.9 million and net charge-offs for the quarter totaled just $230,000. The allowance for loan losses totaled $121.1 million as of June 30, 2020, up from $81.3 million as of June 30, 2019. The Corporation chose to defer the adoption of the current expected credit loss (“CECL”) model so allowance for loan losses were calculated under the incurred loss method. Allowance for loan losses is 1.30% of total loans, 1.62% including remaining fair value marks with allowance, and 1.79% excluding PPP loans from total loans. The increased year-to-date provision expense of $41.6 million primarily reflects our view of increased credit risk related to the COVID-19 pandemic. Remaining fair value marks on purchased loans is $29.3 million.

Michael C. Rechin, President and Chief Executive Officer, stated, “Our financial results for the second quarter 2020 combine stressed economic conditions and net interest margin pressure with the opportunity to provide our clients access to the SBA’s Payroll Protection Program. Our bankers really leaned into the PPP offering on behalf of businesses throughout our markets because it fits our culture and strategy as a largely commercial bank. Several thousand borrowers looked to the bank to assist their efforts in employee retention in a most challenging time. In the near-term, the magnitude of our participation grew our balance sheet substantially in loans and deposits. The funding affords borrowers time to weather the COVID-19 initiated recession.” Rechin also added, “Despite the reopening of Midwest economies and reducing unemployment, we recorded a $22 million provision reflecting our uncertain economic environment. With stay at home orders in place through much of the quarter, our technology proved to be a key point of service delivery for our clients. The results we achieved in pre-tax, pre-provision earnings, capital growth and efficiency remain at top quartile performance levels.”

Net-interest income for the quarter totaled $93 million, down $859,000 from the first quarter of 2020, as linked quarterly net interest margin declined by 27 basis points totaling 3.19 percent. Yields on earning assets decreased by 66 basis points totaling 3.72 percent and the cost of supporting liabilities decreased by 39 basis points and totaled 53 basis points. The addition of $883 million of PPP loans negatively impacted margin by 6 basis points, but the major driver was the decline in LIBOR from 99 basis points as of March 31, 2020 to just 16 basis points on June 30, 2020.

Non-interest income totaled $26.5 million for the quarter, a $4.9 million increase over the second quarter of 2019, but a $3.3 million decrease from the first quarter of 2020. Gains from the sale of mortgage loans remain strong given the rate environment, while service charges on deposit accounts were less than planned due to higher than normal average balances per account. Non-interest expense totaled $60 million for the quarter compared to $57.6 million in the second quarter of 2019 and $66.2 million in the first quarter of 2020. The primary drivers of the linked quarterly results were a $2.3 million deferral of salary expense related to PPP loan originations, a $1.1 million reduction in bonus accruals and a $1.6 million decrease in processing fees related to termination of a debit card rewards program.

CONFERENCE CALL

First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, July 23, 2020.

To participate, dial (Toll Free) 877-507-0578 and reference First Merchants Corporation's second quarter earnings release. International callers please call +1 412-317-1073. A replay of the call will be available until August 21, 2020. 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 10144066.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme200723.html during the time of the call. A replay of the web cast will be available until July 23, 2021.

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)			June 30,
			2020						2019
ASSETS
Cash and cash equivalents			$	229,759					$	128,185
Interest-bearing time deposits			380,021						129,614
Investment securities			2,789,379						2,092,924
Loans held for sale			901						5,854
Loans			9,298,541						7,511,370
Less: Allowance for loan losses			(121,119)						(81,274)
Net loans			9,177,422						7,430,096
Premises and equipment			112,548						91,767
Federal Home Loan Bank stock			28,736						24,588
Interest receivable			57,063						45,150
Goodwill and other intangibles			575,855						466,736
Cash surrender value of life insurance			290,715						226,241
Other real estate owned			7,367						1,131
Tax asset, deferred and receivable			13,126						12,340
Other assets			156,486						83,231
TOTAL ASSETS			$	13,819,378					$	10,737,857
LIABILITIES
Deposits:
Noninterest-bearing			$	2,260,351					$	1,353,165
Interest-bearing			8,705,637						6,966,163
Total Deposits			10,965,988						8,319,328
Borrowings:
Federal funds purchased			—						75,000
Securities sold under repurchase agreements			181,150						119,674
Federal Home Loan Bank advances			400,817						460,042
Subordinated debentures and other borrowings			285,197						138,574
Total Borrowings			867,164						793,290
Interest payable			5,587						6,740
Other liabilities			171,544						116,863
Total Liabilities			12,010,283						9,236,221
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 - 53,795,500 and 49,456,594 shares			6,724						6,182
Additional paid-in capital			1,002,962						841,365
Retained earnings			735,439						639,362
Accumulated other comprehensive income (loss)			63,845						14,602
Total Stockholders' Equity			1,809,095						1,501,636
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	13,819,378					$	10,737,857

CONSOLIDATED STATEMENTS OF INCOME			Three Months Ended																		Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)			June 30,																		June 30,
			2020						2019						2020						2019
INTEREST INCOME
Loans receivable:
Taxable			$	87,312					$	92,824					$	183,964					$	183,305
Tax-exempt			5,359						4,244						10,674						8,397
Investment securities:
Taxable			6,147						6,998						13,778						13,093
Tax-exempt			10,019						7,454						19,354						14,325
Deposits with financial institutions			134						784						709						1,659
Federal Home Loan Bank stock			281						335						580						673
Total Interest Income			109,252						112,639						229,059						221,452
INTEREST EXPENSE
Deposits			12,707						23,087						34,455						42,681
Federal funds purchased			2						117						113						210
Securities sold under repurchase agreements			92						342						444						672
Federal Home Loan Bank advances			1,794						1,692						3,568						3,506
Subordinated debentures and other borrowings			1,639						2,123						3,584						4,239
Total Interest Expense			16,234						27,361						42,164						51,308
NET INTEREST INCOME			93,018						85,278						186,895						170,144
Provision for loan losses			21,895						500						41,647						1,700
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES			71,123						84,778						145,248						168,444
OTHER INCOME
Service charges on deposit accounts			4,312						5,437						10,282						10,532
Fiduciary and wealth management fees			5,601						3,931						11,586						7,749
Card payment fees			6,097						4,829						12,004						9,655
Net gains and fees on sales of loans			3,674						1,736						7,037						3,031
Derivative hedge fees			1,042						1,487						2,981						2,268
Other customer fees			333						341						731						780
Earnings on cash surrender value of life insurance			1,326						946						2,686						1,935
Net realized gains on sales of available for sale securities			3,068						1,843						7,680						2,983
Other income			1,028						1,064						1,293						1,394
Total Other Income			26,481						21,614						56,280						40,327
OTHER EXPENSES
Salaries and employee benefits			35,698						32,709						74,941						65,737
Net occupancy			5,447						4,469						11,248						9,496
Equipment			4,489						4,117						8,833						7,759
Marketing			2,092						2,752						3,535						3,826
Outside data processing fees			2,618						3,929						6,817						7,613
Printing and office supplies			279						334						666						649
Intangible asset amortization			1,511						1,520						3,025						3,048
FDIC assessments			1,472						678						2,995						1,385
Other real estate owned and foreclosure expenses			684						903						1,189						2,068
Professional and other outside services			1,553						2,376						3,811						4,260
Other expenses			4,146						3,800						9,100						8,367
Total Other Expenses			59,989						57,587						126,160						114,208
INCOME BEFORE INCOME TAX			37,615						48,805						75,368						94,563
Income tax expense			4,623						7,749						8,113						14,690
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS			$	32,992					$	41,056					$	67,255					$	79,873
Per Share Data:
Basic Net Income Available to Common Stockholders			$	0.62					$	0.83					$	1.24					$	1.62
Diluted Net Income Available to Common Stockholders			$	0.62					$	0.83					$	1.24					$	1.61
Cash Dividends Paid			$	0.26					$	0.26					$	0.52					$	0.48
Average Diluted Shares Outstanding (in thousands)			53,943						49,550						54,430						49,545

FINANCIAL HIGHLIGHTS
(Dollars in thousands)			Three Months Ended																		Six Months Ended
			June 30,																		June 30,
			2020						2019						2020						2019
NET CHARGE-OFFS			$	230					$	128					$	812					$	978
AVERAGE BALANCES:
Total Assets			$	13,655,322					$	10,499,948					$	13,114,280					$	10,291,205
Total Loans			9,180,610						7,385,315						8,853,591						7,308,146
Total Earning Assets			12,187,442						9,518,892						11,739,936						9,326,579
Total Deposits			10,789,909						8,321,459						10,338,091						8,130,120
Total Stockholders' Equity			1,795,509						1,479,254						1,805,963						1,454,633
FINANCIAL RATIOS:
Return on Average Assets			0.97		%				1.56		%				1.03		%				1.55		%
Return on Average Stockholders' Equity			7.35						11.10						7.45						10.98
Return on Average Common Stockholders' Equity			7.35						11.10						7.45						10.98
Average Earning Assets to Average Assets			89.25						90.66						89.52						90.63
Allowance for Loan Losses as % of Total Loans			1.30						1.08						1.30						1.08
Net Charge-offs as % of Average Loans (Annualized)			0.01						0.01						0.02						0.03
Average Stockholders' Equity to Average Assets			13.15						14.09						13.77						14.13
Tax Equivalent Yield on Average Earning Assets			3.72						4.86						4.04						4.88
Interest Expense/Average Earning Assets			0.53						1.15						0.72						1.10
Net Interest Margin (FTE) on Average Earning Assets			3.19						3.71						3.32						3.78
Efficiency Ratio			47.95						51.00						50.09						51.09
Tangible Common Book Value Per Share			$	23.04					$	21.01					$	23.04					$	21.01

NON-PERFORMING ASSETS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2020						2020						2019						2019						2019
Non-Accrual Loans			$	50,102					$	15,649					$	15,949					$	22,728					$	25,635
Renegotiated Loans			1,086						665						841						576						640
Non-Performing Loans (NPL)			51,188						16,314						16,790						23,304						26,275
Other Real Estate Owned and Repossessions			7,409						8,017						7,527						7,156						1,131
Non-Performing Assets (NPA)			58,597						24,331						24,317						30,460						27,406
90+ Days Delinquent			4,981						312						69						82						209
NPAs & 90 Day Delinquent			$	63,578					$	24,643					$	24,386					$	30,542					$	27,615
Allowance for Loan Losses			$	121,119					$	99,454					$	80,284					$	80,571					$	81,274
Quarterly Net Charge-offs			230						582						787						1,303						128
NPAs / Actual Assets %			0.42		%				0.19		%				0.20		%				0.25		%				0.26		%
NPAs & 90 Day / Actual Assets %			0.46		%				0.19		%				0.20		%				0.25		%				0.26		%
NPAs / Actual Loans and OREO %			0.63		%				0.28		%				0.29		%				0.37		%				0.36		%
Allowance for Loan Losses / Actual Loans (%)			1.30		%				1.15		%				0.95		%				0.97		%				1.08		%
Net Charge-offs as % of Average Loans (Annualized)			0.01		%				0.03		%				0.04		%				0.07		%				0.01		%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2020						2020						2019						2019						2019
ASSETS
Cash and cash equivalents			$	229,759					$	127,731					$	177,201					$	202,383					$	128,185
Interest-bearing time deposits			380,021						132,944						118,263						230,101						129,614
Investment securities			2,789,379						2,697,954						2,596,063						2,489,420						2,092,924
Loans held for sale			901						5,039						9,037						7,910						5,854
Loans			9,298,541						8,606,849						8,459,310						8,299,260						7,511,370
Less: Allowance for loan losses			(121,119)						(99,454)						(80,284)						(80,571)						(81,274)
Net loans			9,177,422						8,507,395						8,379,026						8,218,689						7,430,096
Premises and equipment			112,548						114,045						113,055						113,446						91,767
Federal Home Loan Bank stock			28,736						28,736						28,736						28,736						24,588
Interest receivable			57,063						47,489						48,901						45,923						45,150
Goodwill and other intangibles			575,855						577,366						578,880						579,751						466,736
Cash surrender value of life insurance			290,715						289,574						288,206						286,747						226,241
Other real estate owned			7,367						7,972						7,527						7,156						1,131
Tax asset, deferred and receivable			13,126						9,497						12,165						15,187						12,340
Other assets			156,486						147,776						100,194						99,612						83,231
TOTAL ASSETS			$	13,819,378					$	12,693,518					$	12,457,254					$	12,325,061					$	10,737,857
LIABILITIES
Deposits:
Noninterest-bearing			$	2,260,351					$	1,688,205					$	1,736,396					$	1,777,365					$	1,353,165
Interest-bearing			8,705,637						8,182,279						8,103,560						7,988,086						6,966,163
Total Deposits			10,965,988						9,870,484						9,839,956						9,765,451						8,319,328
Borrowings:
Federal funds purchased			—						47,000						55,000						—						75,000
Securities sold under repurchase agreements			181,150						183,317						187,946						191,603						119,674
Federal Home Loan Bank advances			400,817						480,995						351,072						354,609						460,042
Subordinated debentures and other borrowings			285,197						128,741						138,685						138,630						138,574
Total Borrowings			867,164						840,053						732,703						684,842						793,290
Interest payable			5,587						7,746						6,754						7,855						6,740
Other liabilities			171,544						197,275						91,404						117,901						116,863
Total Liabilities			12,010,283						10,915,558						10,670,817						10,576,049						9,236,221
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			6,724						6,719						6,921						6,918						6,182
Additional paid-in capital			1,002,962						1,000,942						1,054,997						1,053,148						841,365
Retained earnings			735,439						716,518						696,520						663,173						639,362
Accumulated other comprehensive income (loss)			63,845						53,656						27,874						25,648						14,602
Total Stockholders' Equity			1,809,095						1,777,960						1,786,437						1,749,012						1,501,636
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	13,819,378					$	12,693,518					$	12,457,254					$	12,325,061					$	10,737,857

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)			June 30,						March 31,						December 31,						September 30,						June 30,
			2020						2020						2019						2019						2019
INTEREST INCOME
Loans receivable:
Taxable			$	87,312					$	96,652					$	102,617					$	96,850					$	92,824
Tax-exempt			5,359						5,315						4,671						4,500						4,244
Investment securities:
Taxable			6,147						7,631						7,993						6,729						6,998
Tax-exempt			10,019						9,335						8,995						8,335						7,454
Deposits with financial institutions			134						575						1,203						1,363						784
Federal Home Loan Bank stock			281						299						342						355						335
Total Interest Income			109,252						119,807						125,821						118,132						112,639
INTEREST EXPENSE
Deposits			12,707						21,748						24,074						24,830						23,087
Federal funds purchased			2						111						26						15						117
Securities sold under repurchase agreements			92						352						367						385						342
Federal Home Loan Bank advances			1,794						1,774						1,776						1,894						1,692
Subordinated debentures and other borrowings			1,639						1,945						1,994						2,076						2,123
Total Interest Expense			16,234						25,930						28,237						29,200						27,361
NET INTEREST INCOME			93,018						93,877						97,584						88,932						85,278
Provision for loan losses			21,895						19,752						500						600						500
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES			71,123						74,125						97,084						88,332						84,778
OTHER INCOME
Service charges on deposit accounts			4,312						5,970						6,312						6,107						5,437
Fiduciary and wealth management fees			5,601						5,985						5,384						4,429						3,931
Card payment fees			6,097						5,907						5,430						5,158						4,829
Net gains and fees on sales of loans			3,674						3,363						2,633						2,227						1,736
Derivative hedge fees			1,042						1,939						1,405						1,684						1,487
Other customer fees			333						398						434						450						341
Earnings on cash surrender value of life insurance			1,326						1,360						1,458						1,144						946
Net realized gains on sales of available for sale securities			3,068						4,612						1,039						393						1,843
Other income			1,028						265						150						524						1,064
Total Other Income			26,481						29,799						24,245						22,116						21,614
OTHER EXPENSES
Salaries and employee benefits			35,698						39,243						39,358						38,942						32,709
Net occupancy			5,447						5,801						5,311						4,777						4,469
Equipment			4,489						4,344						4,429						4,030						4,117
Marketing			2,092						1,443						1,492						1,332						2,752
Outside data processing fees			2,618						4,199						4,428						4,435						3,929
Printing and office supplies			279						387						484						312						334
Intangible asset amortization			1,511						1,514						1,590						1,356						1,520
FDIC assessments			1,472						1,523						—						(668)						678
Other real estate owned and foreclosure expenses			684						505						66						294						903
Professional and other outside services			1,553						2,258						2,899						8,251						2,376
Other expenses			4,146						4,954						5,144						4,293						3,800
Total Other Expenses			59,989						66,171						65,201						67,354						57,587
INCOME BEFORE INCOME TAX			37,615						37,753						56,128						43,094						48,805
Income tax expense			4,623						3,490						8,298						6,337						7,749
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS			$	32,992					$	34,263					$	47,830					$	36,757					$	41,056
Per Share Data:
Basic Net Income Available to Common Stockholders			$	0.62					$	0.63					$	0.87					$	0.71					$	0.83
Diluted Net Income Available to Common Stockholders			$	0.62					$	0.62					$	0.87					$	0.71					$	0.83
Cash Dividends Paid			$	0.26					$	0.26					$	0.26					$	0.26					$	0.26
Average Diluted Shares Outstanding (in thousands)			53,943						54,918						55,520						51,570						49,550
FINANCIAL RATIOS:
Return on Average Assets			0.97		%				1.09		%				1.53		%				1.30		%				1.56		%
Return on Average Stockholders' Equity			7.35						7.55						10.82						9.21						11.10
Return on Average Common Stockholders' Equity			7.35						7.55						10.82						9.21						11.10
Average Earning Assets to Average Assets			89.25						89.81						89.71						90.37						90.66
Allowance for Loan Losses as % of Total Loans			1.30						1.15						0.95						0.97						1.08
Net Charge-offs as % of Average Loans (Annualized)			0.01						0.03						0.04						0.07						0.01
Average Stockholders' Equity to Average Assets			13.15						14.45						14.17						14.16						14.09
Tax Equivalent Yield on Average Earning Assets			3.72						4.38						4.63						4.77						4.86
Interest Expense/Average Earning Assets			0.53						0.92						1.01						1.15						1.15
Net Interest Margin (FTE) on Average Earning Assets			3.19						3.46						3.62						3.62						3.71
Efficiency Ratio			47.95						52.17						51.07						57.60						51.00
Tangible Common Book Value Per Share			$	23.04					$	22.46					$	21.94					$	21.26					$	21.01

LOANS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2020						2020						2019						2019						2019
Commercial and industrial loans			$	2,898,329					$	2,199,226					$	2,109,879					$	2,034,311					$	1,877,042
Agricultural production financing and other loans to farmers			93,838						87,421						93,861						90,462						83,452
Real estate loans:
Construction			640,560						643,674						787,568						670,138						624,548
Commercial and farmland			3,239,998						3,268,168						3,052,698						3,144,649						2,821,689
Residential			1,145,187						1,121,556						1,143,217						1,155,403						993,802
Home equity			532,314						570,398						588,984						601,335						548,006
Individuals' loans for household and other personal expenditures			123,611						129,765						135,989						131,246						98,384
Public finance and other commercial loans			624,704						586,641						547,114						471,716						464,447
Loans			9,298,541						8,606,849						8,459,310						8,299,260						7,511,370
Allowance for loan losses			(121,119)						(99,454)						(80,284)						(80,571)						(81,274)
NET LOANS			$	9,177,422					$	8,507,395					$	8,379,026					$	8,218,689					$	7,430,096

DEPOSITS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2020						2020						2019						2019						2019
Demand deposits			$	6,288,360					$	5,293,200					$	5,250,568					$	5,183,971					$	4,309,473
Savings deposits			3,278,156						2,962,821						2,896,177						2,808,745						2,358,720
Certificates and other time deposits of $100,000 or more			607,474						694,062						736,843						731,693						720,536
Other certificates and time deposits			669,119						717,723						741,759						811,780						729,392
Brokered deposits			122,879						202,678						214,609						229,262						201,207
TOTAL DEPOSITS			$	10,965,988					$	9,870,484					$	9,839,956					$	9,765,451					$	8,319,328

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
			For the Three Months Ended
			June 30, 2020																														June 30, 2019
			Average Balance						Interest  Income / Expense						Average Rate						Average Balance						Interest  Income / Expense						Average Rate
Assets:
Interest-bearing time deposits			$	378,489					$	134					0.14		%				$	144,626					$	784					2.17		%
Federal Home Loan Bank stock			28,736						281						3.91						24,588						335						5.45
Investment Securities: (1)
Taxable			1,282,080						6,147						1.92						1,054,068						6,998						2.66
Tax-Exempt (2)			1,317,527						12,682						3.85						910,295						9,435						4.15
Total Investment Securities			2,599,607						18,829						2.90						1,964,363						16,433						3.35
Loans held for sale			12,630						131						4.15						11,430						127						4.44
Loans: (3)
Commercial			6,890,010						69,463						4.03						5,419,169						74,638						5.51
Real Estate Mortgage			887,257						10,122						4.56						766,528						8,686						4.53
Installment			724,165						7,596						4.20						677,133						9,373						5.54
Tax-Exempt (2)			666,548						6,784						4.07						511,055						5,372						4.20
Total Loans			9,180,610						94,096						4.10						7,385,315						98,196						5.32
Total Earning Assets			12,187,442						113,340						3.72		%				9,518,892						115,748						4.86		%
Net unrealized gain (loss) on securities available for sale			56,807																		12,841
Allowance for loan losses			(106,858)																		(81,691)
Cash and cash equivalents			303,491																		130,987
Premises and equipment			113,528																		91,563
Other assets			1,100,912																		827,356
Total Assets			$	13,655,322																	$	10,499,948
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits			$	3,951,819					$	4,186					0.42		%				$	2,935,925					$	8,541					1.16		%
Money market deposits			1,673,104						1,696						0.41						1,220,020						3,509						1.15
Savings deposits			1,521,312						596						0.16						1,164,901						2,525						0.87
Certificates and other time deposits			1,498,002						6,229						1.66						1,652,203						8,512						2.06
Total Interest-bearing Deposits			8,644,237						12,707						0.59						6,973,049						23,087						1.32
Borrowings			909,258						3,527						1.55						613,446						4,274						2.79
Total Interest-bearing Liabilities			9,553,495						16,234						0.68						7,586,495						27,361						1.44
Noninterest-bearing deposits			2,145,672																		1,348,410
Other liabilities			160,646																		85,789
Total Liabilities			11,859,813																		9,020,694
Stockholders' Equity			1,795,509																		1,479,254
Total Liabilities and Stockholders' Equity			$	13,655,322					16,234												$	10,499,948					27,361
Net Interest Income (FTE)									$	97,106																	$	88,387
Net Interest Spread (FTE) (4)															3.04		%																3.42		%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets															3.72		%																4.86		%
Interest Expense / Average Earning Assets															0.53		%																1.15		%
Net Interest Margin (FTE) (5)															3.19		%																3.71		%
(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 2020 and 2019. These totals equal $4,088 and $3,109 for the three months ended June 30, 2020 and 2019, respectively.
(3) Non accruing loans have been included in the average balances.
(4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
			For the Six Months Ended
			June 30, 2020																														June 30, 2019
			Average Balance						Interest  Income / Expense						Average Rate						Average Balance						Interest  Income / Expense						Average Rate
Assets:
Federal Funds Sold
Interest-bearing time deposits			$	269,174					$	709					0.53		%				$	145,277					$	1,659					2.28		%
Federal Home Loan Bank stock			28,736						580						4.04						24,588						673						5.47
Investment Securities: (1)
Taxable			1,325,313						13,778						2.08						978,654						13,093						2.68
Tax-Exempt (2)			1,263,122						24,499						3.88						869,914						18,133						4.17
Total Investment Securities			2,588,435						38,277						2.96						1,848,568						31,226						3.38
Loans held for sale			14,924						324						4.34						10,697						239						4.47
Loans: (3)
Commercial			6,562,673						146,415						4.46						5,364,884						147,394						5.49
Real Estate Mortgage			878,956						20,524						4.67						755,070						17,008						4.51
Installment			741,889						16,701						4.50						671,125						18,664						5.56
Tax-Exempt (2)			655,149						13,511						4.12						506,370						10,629						4.20
Total Loans			8,853,591						197,475						4.46						7,308,146						193,934						5.31
Total Earning Assets			11,739,936						237,041						4.04		%				9,326,579						227,492						4.88		%
Net unrealized gain on securities available for sale			52,732																		3,963
Allowance for loan losses			(94,009)																		(81,301)
Cash and cash equivalents			231,624																		124,143
Premises and equipment			113,670																		92,395
Other assets			1,070,327																		825,426
Total Assets			$	13,114,280																	$	10,291,205
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits			$	3,770,530					$	12,461					0.66		%				$	2,813,541					$	15,560					1.11		%
Money market deposits			1,604,474						5,479						0.68						1,179,765						6,291						1.07
Savings deposits			1,473,183						2,424						0.33						1,157,852						4,792						0.83
Certificates and other time deposits			1,582,322						14,091						1.78						1,609,130						16,038						1.99
Total Interest-bearing Deposits			8,430,509						34,455						0.82						6,760,288						42,681						1.26
Borrowings			828,721						7,709						1.86						624,192						8,627						2.76
Total Interest-bearing Liabilities			9,259,230						42,164						0.91						7,384,480						51,308						1.39
Noninterest-bearing deposits			1,907,582																		1,369,832
Other liabilities			141,505																		82,260
Total Liabilities			11,308,317																		8,836,572
Stockholders' Equity			1,805,963																		1,454,633
Total Liabilities and Stockholders' Equity			$	13,114,280					42,164												$	10,291,205					51,308
Net Interest Income (FTE)									$	194,877																	$	176,184
Net Interest Spread (FTE) (4)															3.13		%																3.49		%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets															4.04		%																4.88		%
Interest Expense / Average Earning Assets															0.72		%																1.10		%
Net Interest Margin (FTE) (5)															3.32		%																3.78		%
(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 2020 and 2019. These totals equal $7,982 and $6,040 for the six months ended June 30, 2020 and 2019, 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.