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

July 26, 2021

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 2021 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME) has reported second quarter 2021 net income of $55.6 million compared to $33 million during the same period in 2020. Earnings per share for the period totaled $1.03 per share compared to the second quarter of 2020 result of $.62 per share. Year-to-date net income totaled $105 million compared to $67.3 million during the six months ended June 30, 2020. Year-to-date earnings per share totaled $1.94 compared to $1.24 during the same period in 2020.

Total assets equaled $14.9 billion as of the quarter-ended June 30, 2021 and loans totaled $9.1 billion. The Corporation experienced organic loan growth of $289.6 million, or 3.4 percent during the last twelve months, offset by the forgiveness of Paycheck Protection Program (“PPP”) loans which accounted for a decline of $466.9 million. As a result, the loan portfolio decreased by $177.3 million, or 1.9 percent, during that period. Organic loan growth, on an annualized basis, was 6.7 percent in the second quarter 2021. Investments increased $1.4 billion, or 48.7 percent, during the last twelve months and now total $4.1 billion. Total deposits equaled $12.2 billion as of quarter-end and increased by $1.2 billion, or 11.3 percent, from the same period in 2020.

The Corporation’s Allowance for Credit Losses – Loans totaled $199.8 million as of quarter-end, or 2.19% of total loans. Net charge-offs for the quarter totaled $1.3 million and no provision expense was recorded. Provision expense taken during the three and six months ended June 30, 2020 of $21.9 million and $41.6 million, respectively, reflected our view of increased credit risk related to the COVID-19 pandemic. Non-accrual loans as of quarter-end totaled $57.6 million.

Mark Hardwick, Chief Executive Officer, stated, “Our management team is pleased with our record setting second quarter net income. It’s very satisfying to achieve great financial results while serving our clients and communities. Our healthy levels of loan growth, earning asset growth, credit quality, capital levels and efficiency will lead us into the future. I am proud of our teammates for staying focused on our goals and continuously finding ways to win for our stakeholders.”

Net-interest income for the quarter totaled $104.3 million, an increase of $11.2 million from the second quarter of 2020, or 12.1 percent. Net interest margin, on a tax equivalent basis, totaling 3.22 percent, increased by 3 basis points compared to the second quarter of 2020. Yields on earning assets for the second quarter totaled 3.49 percent and cost of supporting liabilities totaled 27 basis points. Fair value accretion contributed less to margin as it accounted for 7 basis points in the second quarter of 2021, compared to 12 basis points in the second quarter of 2020. PPP loans contributed 15 basis points to margin during the second quarter of 2021, but subtracted 6 basis points from margin in the same quarter of 2020.

Non-interest income totaled $30.9 million for the quarter, a $4.4 million increase over the second quarter of 2020. Gains from the sale of mortgage loans were exceptionally strong and enhanced by a large portfolio mortgage loan sale contributing a gain of $2.9 million during the quarter. Fiduciary and wealth management fees increased $1.9 million over the second quarter of 2020, which was offset by a decline in card payment fees due to the adoption of the Durbin Amendment. Non-interest expense totaled $69.3 million for the quarter compared to $60 million in the second quarter of 2020 and $66.1 million in the first quarter of 2021. Total expenses in the second quarter of 2020 were unusually low and reflected 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. Total expenses increased on a linked quarter basis primarily due to increased salaries and incentives.

The loan to deposit ratio now totals 74.9 percent and loan to asset ratio totals 61.3 percent. As of June 30, 2021, the Corporation’s total risk-based capital ratio equaled 14.23 percent, the common equity tier 1 capital ratio equaled 11.94 percent, and the tangible common equity ratio totaled 9.04 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 2:30 p.m. (ET) on Monday, July 26, 2021.

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 26, 2021. 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 10157361.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme210726.html during the time of the call. A replay of the web cast will be available until July 26, 2022.

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,
			2021						2020
ASSETS
Cash and cash equivalents			$	167,596					$	229,759
Interest-bearing deposits			438,863						380,021
Investment securities, net of allowance for credit losses of $245,000 and $0			4,148,314						2,789,379
Loans held for sale			18,582						901
Loans			9,121,250						9,298,541
Less: Allowance for credit losses - loans			(199,775)						(121,119)
Net loans			8,921,475						9,177,422
Premises and equipment			103,822						112,548
Federal Home Loan Bank stock			28,736						28,736
Interest receivable			54,173						57,063
Goodwill and other intangibles			573,786						575,855
Cash surrender value of life insurance			294,462						290,715
Other real estate owned			601						7,367
Tax asset, deferred and receivable			36,924						13,126
Other assets			135,763						156,486
TOTAL ASSETS			$	14,923,097					$	13,819,378
LIABILITIES
Deposits:
Noninterest-bearing			$	2,479,853					$	2,260,351
Interest-bearing			9,723,547						8,705,637
Total Deposits			12,203,400						10,965,988
Borrowings:
Securities sold under repurchase agreements			146,904						181,150
Federal Home Loan Bank advances			334,243						400,817
Subordinated debentures and other borrowings			118,498						285,197
Total Borrowings			599,645						867,164
Interest payable			2,929						5,587
Other liabilities			245,323						171,544
Total Liabilities			13,051,297						12,010,283
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 - 53,972,386 and 53,795,500 shares			6,747						6,724
Additional paid-in capital			1,009,182						1,002,962
Retained earnings			795,666						735,439
Accumulated other comprehensive income			60,080						63,845
Total Stockholders' Equity			1,871,800						1,809,095
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	14,923,097					$	13,819,378

CONSOLIDATED STATEMENTS OF INCOME			Three Months Ended												Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)			June 30,												June 30,
			2021						2020						2021						2020
INTEREST INCOME
Loans receivable:
Taxable			$	87,002					$	87,312					$	172,107					$	183,964
Tax-exempt			5,545						5,359						10,884						10,674
Investment securities:
Taxable			7,440						6,147						14,135						13,778
Tax-exempt			13,071						10,019						25,456						19,354
Deposits with financial institutions			129						134						243						709
Federal Home Loan Bank stock			88						281						266						580
Total Interest Income			113,275						109,252						223,091						229,059
INTEREST EXPENSE
Deposits			5,823						12,707						12,023						34,455
Federal funds purchased			2						2						4						113
Securities sold under repurchase agreements			75						92						162						444
Federal Home Loan Bank advances			1,452						1,794						2,894						3,568
Subordinated debentures and other borrowings			1,659						1,639						3,316						3,584
Total Interest Expense			9,011						16,234						18,399						42,164
NET INTEREST INCOME			104,264						93,018						204,692						186,895
Provision for credit losses - loans			—						21,895						—						41,647
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			104,264						71,123						204,692						145,248
OTHER INCOME
Service charges on deposit accounts			5,596						4,312						10,860						10,282
Fiduciary and wealth management fees			7,510						5,601						13,932						11,586
Card payment fees			4,159						6,097						8,526						12,004
Net gains and fees on sales of loans			8,325						3,674						12,311						7,037
Derivative hedge fees			943						1,042						1,260						2,981
Other customer fees			368						333						736						731
Earnings on cash surrender value of life insurance			1,205						1,326						2,541						2,686
Net realized gains on sales of available for sale securities			1,761						3,068						3,560						7,680
Other income			1,017						1,028						1,249						1,293
Total Other Income			30,884						26,481						54,975						56,280
OTHER EXPENSES
Salaries and employee benefits			42,438						35,698						81,249						74,941
Net occupancy			5,615						5,447						12,106						11,248
Equipment			4,848						4,489						9,878						8,833
Marketing			1,122						2,092						2,246						3,535
Outside data processing fees			4,698						2,618						8,942						6,817
Printing and office supplies			313						279						596						666
Intangible asset amortization			1,464						1,511						2,821						3,025
FDIC assessments			1,461						1,472						2,829						2,995
Other real estate owned and foreclosure expenses			178						684						912						1,189
Professional and other outside services			2,976						1,553						5,519						3,811
Other expenses			4,182						4,146						8,295						9,100
Total Other Expenses			69,295						59,989						135,393						126,160
INCOME BEFORE INCOME TAX			65,853						37,615						124,274						75,368
Income tax expense			10,294						4,623						19,246						8,113
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS			$	55,559					$	32,992					$	105,028					$	67,255
Per Share Data:
Basic Net Income Available to Common Stockholders			$	1.03					$	0.62					$	1.95					$	1.24
Diluted Net Income Available to Common Stockholders			$	1.03					$	0.62					$	1.94					$	1.24
Cash Dividends Paid			$	0.29					$	0.26					$	0.55					$	0.52
Average Diluted Shares Outstanding (in thousands)			54,184						53,943						54,159						54,430

FINANCIAL HIGHLIGHTS
(Dollars in thousands)			Three Months Ended												Six Months Ended
			June 30,												June 30,
			2021						2020						2021						2020
NET CHARGE-OFFS			$	1,307					$	230					$	4,928					$	812
AVERAGE BALANCES:
Total Assets			$	14,758,597					$	13,655,322					$	14,503,087					$	13,114,280
Total Loans			9,282,524						9,180,610						9,259,600						8,853,591
Total Earning Assets			13,558,956						12,187,442						13,292,617						11,739,936
Total Deposits			12,125,153						10,789,909						11,848,075						10,338,091
Total Stockholders' Equity			1,846,037						1,795,509						1,843,250						1,805,963
FINANCIAL RATIOS:
Return on Average Assets			1.51		%				0.97		%				1.45		%				1.03		%
Return on Average Stockholders' Equity			12.04						7.35						11.40						7.45
Return on Average Common Stockholders' Equity			12.04						7.35						11.40						7.45
Average Earning Assets to Average Assets			91.87						89.25						91.65						89.52
Allowance for Credit Losses - Loans as % of Total Loans			2.19						1.30						2.19						1.30
Net Charge-offs as % of Average Loans (Annualized)			0.06						0.01						0.11						0.02
Average Stockholders' Equity to Average Assets			12.51						13.15						12.71						13.77
Tax Equivalent Yield on Average Earning Assets			3.49						3.72						3.51						4.04
Interest Expense/Average Earning Assets			0.27						0.53						0.28						0.72
Net Interest Margin (FTE) on Average Earning Assets			3.22						3.19						3.23						3.32
Efficiency Ratio			48.91						47.95						49.54						50.09
Tangible Common Book Value Per Share			$	24.15					$	23.04					$	24.15					$	23.04

NON-PERFORMING ASSETS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2021						2021						2020						2020						2020
Non-Accrual Loans			$	57,556					$	57,923					$	61,471					$	56,739					$	50,102
Renegotiated Loans			629						655						3,240						2,677						1,086
Non-Performing Loans (NPL)			58,185						58,578						64,711						59,416						51,188
Other Real Estate Owned and Repossessions			601						604						940						6,984						7,409
Non-Performing Assets (NPA)			58,786						59,182						65,651						66,400						58,597
90+ Days Delinquent			183						1,093						746						1,330						4,981
NPAs & 90 Day Delinquent			$	58,969					$	60,275					$	66,397					$	67,730					$	63,578
Allowance for Credit Losses - Loans			$	199,775					$	201,082					$	130,648					$	126,726					$	121,119
Quarterly Net Charge-offs			1,307						3,621						560						6,937						230
NPAs / Actual Assets %			0.39		%				0.40		%				0.47		%				0.48		%				0.42		%
NPAs & 90 Day / Actual Assets %			0.40		%				0.41		%				0.47		%				0.49		%				0.46		%
NPAs / Actual Loans and OREO %			0.64		%				0.63		%				0.71		%				0.72		%				0.63		%
Allowance for Credit Losses - Loans / Actual Loans (%)			2.19		%				2.16		%				1.41		%				1.37		%				1.30		%
Net Charge-offs as % of Average Loans (Annualized)			0.06		%				0.16		%				0.02		%				0.30		%				0.01		%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2021						2021						2020						2020						2020
ASSETS
Cash and cash equivalents			$	167,596					$	187,901					$	192,896					$	164,632					$	229,759
Interest-bearing deposits			438,863						392,806						392,305						273,936						380,021
Investment securities, net of allowance for credit losses			4,148,314						3,700,857						3,146,787						2,933,286						2,789,379
Loans held for sale			18,582						4,430						3,966						3,183						901
Loans			9,121,250						9,318,228						9,243,174						9,243,833						9,298,541
Less: Allowance for credit losses - loans			(199,775)						(201,082)						(130,648)						(126,726)						(121,119)
Net loans			8,921,475						9,117,146						9,112,526						9,117,107						9,177,422
Premises and equipment			103,822						109,432						111,062						112,959						112,548
Federal Home Loan Bank stock			28,736						28,736						28,736						28,736						28,736
Interest receivable			54,173						54,662						53,948						52,992						57,063
Goodwill and other intangibles			573,786						571,536						572,893						574,369						575,855
Cash surrender value of life insurance			294,462						293,766						292,745						291,543						290,715
Other real estate owned			601						604						940						6,942						7,367
Tax asset, deferred and receivable			36,924						40,163						12,340						21,762						13,126
Other assets			135,763						127,027						146,066						155,903						156,486
TOTAL ASSETS			$	14,923,097					$	14,629,066					$	14,067,210					$	13,737,350					$	13,819,378
LIABILITIES
Deposits:
Noninterest-bearing			$	2,479,853					$	2,494,891					$	2,298,138					$	2,187,607					$	2,260,351
Interest-bearing			9,723,547						9,456,889						9,063,472						8,718,546						8,705,637
Total Deposits			12,203,400						11,951,780						11,361,610						10,906,153						10,965,988
Borrowings:
Federal funds purchased			—						—						—						80,000						—
Securities sold under repurchase agreements			146,904						185,721						177,102						187,732						181,150
Federal Home Loan Bank advances			334,243						359,337						389,430						399,522						400,817
Subordinated debentures and other borrowings			118,498						118,439						118,380						118,320						285,197
Total Borrowings			599,645						663,497						684,912						785,574						867,164
Interest payable			2,929						4,020						3,287						5,038						5,587
Other liabilities			245,323						203,913						141,756						206,929						171,544
Total Liabilities			13,051,297						12,823,210						12,191,565						11,903,694						12,010,283
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			6,747						6,744						6,740						6,736						6,724
Additional paid-in capital			1,009,182						1,007,300						1,005,366						1,003,777						1,002,962
Retained earnings			795,666						755,877						788,578						757,550						735,439
Accumulated other comprehensive income			60,080						35,810						74,836						65,468						63,845
Total Stockholders' Equity			1,871,800						1,805,856						1,875,645						1,833,656						1,809,095
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	14,923,097					$	14,629,066					$	14,067,210					$	13,737,350					$	13,819,378

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)			June 30						March 31,						December 31,						September 30,						June 30,
			2021						2021						2020						2020						2020
INTEREST INCOME
Loans receivable:
Taxable			$	87,002					$	85,105					$	90,138					$	84,162					$	87,312
Tax-exempt			5,545						5,339						5,414						5,395						5,359
Investment securities:
Taxable			7,440						6,695						5,263						5,399						6,147
Tax-exempt			13,071						12,385						12,056						10,931						10,019
Deposits with financial institutions			129						114						139						90						134
Federal Home Loan Bank stock			88						178						214						248						281
Total Interest Income			113,275						109,816						113,224						106,225						109,252
INTEREST EXPENSE
Deposits			5,823						6,200						7,509						9,776						12,707
Federal funds purchased			2						2						2						5						2
Securities sold under repurchase agreements			75						87						77						83						92
Federal Home Loan Bank advances			1,452						1,442						1,656						1,749						1,794
Subordinated debentures and other borrowings			1,659						1,657						1,669						1,691						1,639
Total Interest Expense			9,011						9,388						10,913						13,304						16,234
NET INTEREST INCOME			104,264						100,428						102,311						92,921						93,018
Provision for credit losses - loans			—						—						4,482						12,544						21,895
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			104,264						100,428						97,829						80,377						71,123
OTHER INCOME
Service charges on deposit accounts			5,596						5,264						5,508						5,209						4,312
Fiduciary and wealth management fees			7,510						6,422						6,251						5,910						5,601
Card payment fees			4,159						4,367						3,502						3,996						6,097
Net gains and fees on sales of loans			8,325						3,986						5,393						5,841						3,674
Derivative hedge fees			943						317						2,281						1,715						1,042
Other customer fees			368						368						394						372						333
Earnings on cash surrender value of life insurance			1,205						1,336						1,283						1,171						1,326
Net realized gains on sales of available for sale securities			1,761						1,799						2,398						1,817						3,068
Other income			1,017						232						473						132						1,028
Total Other Income			30,884						24,091						27,483						26,163						26,481
OTHER EXPENSES
Salaries and employee benefits			42,438						38,811						41,809						39,187						35,698
Net occupancy			5,615						6,491						9,653						5,855						5,447
Equipment			4,848						5,030						5,555						4,956						4,489
Marketing			1,122						1,124						1,763						1,311						2,092
Outside data processing fees			4,698						4,244						3,839						3,776						2,618
Printing and office supplies			313						283						307						331						279
Intangible asset amortization			1,464						1,357						1,476						1,486						1,511
FDIC assessments			1,461						1,368						1,560						1,249						1,472
Other real estate owned and foreclosure expenses			178						734						(1,576)						717						684
Professional and other outside services			2,976						2,543						2,836						2,254						1,553
Other expenses			4,182						4,113						5,314						3,587						4,146
Total Other Expenses			69,295						66,098						72,536						64,709						59,989
INCOME BEFORE INCOME TAX			65,853						58,421						52,776						41,831						37,615
Income tax expense			10,294						8,952						7,641						5,621						4,623
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS			$	55,559					$	49,469					$	45,135					$	36,210					$	32,992
Per Share Data:
Basic Net Income Available to Common Stockholders			$	1.03					$	0.92					$	0.83					$	0.67					$	0.62
Diluted Net Income Available to Common Stockholders			$	1.03					$	0.91					$	0.83					$	0.67					$	0.62
Cash Dividends Paid			$	0.29					$	0.26					$	0.26					$	0.26					$	0.26
Average Diluted Shares Outstanding (in thousands)			54,184						54,134						54,050						53,971						53,943
FINANCIAL RATIOS:
Return on Average Assets			1.51		%				1.39		%				1.29		%				1.06		%				0.97		%
Return on Average Stockholders' Equity			12.04						10.75						9.72						7.91						7.35
Return on Average Common Stockholders' Equity			12.04						10.75						9.72						7.91						7.35
Average Earning Assets to Average Assets			91.87						91.43						90.66						90.34						89.25
Allowance for Credit Losses - Loans as % of Total Loans			2.19						2.16						1.41						1.37						1.30
Net Charge-offs as % of Average Loans (Annualized)			0.06						0.16						0.02						0.30						0.01
Average Stockholders' Equity to Average Assets			12.51						12.92						13.29						13.41						13.15
Tax Equivalent Yield on Average Earning Assets			3.49						3.52						3.72						3.58						3.72
Interest Expense/Average Earning Assets			0.27						0.29						0.34						0.43						0.53
Net Interest Margin (FTE) on Average Earning Assets			3.22						3.23						3.38						3.15						3.19
Efficiency Ratio			48.91						50.23						55.01						51.40						47.95
Tangible Common Book Value Per Share			$	24.15					$	22.98					$	24.27					$	23.48					$	23.04

LOANS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2021						2021						2020						2020						2020
Commercial and industrial loans			$	2,671,076					$	2,876,212					$	2,776,699					$	2,875,331					$	2,898,329
Agricultural land, production and other loans to farmers			235,020						245,631						281,884						301,192						316,815
Real estate loans:
Construction			491,200						541,224						484,723						622,084						640,560
Commercial real estate, non-owner occupied			2,263,497						2,178,832						2,220,949						2,098,589						2,097,767
Commercial real estate, owner occupied			953,501						950,038						958,501						931,815						919,254
Residential			1,127,442						1,239,925						1,234,741						1,146,406						1,145,187
Home equity			489,997						482,229						508,259						527,458						532,314
Individuals' loans for household and other personal expenditures			130,819						126,387						129,479						125,411						123,611
Public finance and other commercial loans			758,698						677,750						647,939						615,547						624,704
Loans			9,121,250						9,318,228						9,243,174						9,243,833						9,298,541
Allowance for credit losses - loans			(199,775)						(201,082)						(130,648)						(126,726)						(121,119)
NET LOANS			$	8,921,475					$	9,117,146					$	9,112,526					$	9,117,107					$	9,177,422

DEPOSITS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2021						2021						2020						2020						2020
Demand deposits			$	7,261,603					$	7,245,850					$	6,821,152					$	6,279,554					$	6,288,360
Savings deposits			4,157,552						3,857,624						3,661,713						3,518,286						3,278,156
Certificates and other time deposits of $100,000 or more			304,394						332,745						346,194						467,610						607,474
Other certificates and time deposits			423,922						449,655						459,168						542,919						669,119
Brokered deposits			55,929						65,906						73,383						97,784						122,879
TOTAL DEPOSITS			$	12,203,400					$	11,951,780					$	11,361,610					$	10,906,153					$	10,965,988

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
			For the Three Months Ended
			June 30, 2021																		June 30, 2020
			Average Balance						Interest  Income / Expense						Average Rate						Average Balance						Interest  Income / Expense						Average Rate
Assets:
Interest-bearing deposits			$	545,752					$	129					0.09		%				$	378,489					$	134					0.14		%
Federal Home Loan Bank stock			28,736						88						1.22						28,736						281						3.91
Investment Securities: (1)
Taxable			1,732,367						7,440						1.72						1,282,080						6,147						1.92
Tax-Exempt (2)			1,969,577						16,546						3.36						1,317,527						12,682						3.85
Total Investment Securities			3,701,944						23,986						2.59						2,599,607						18,829						2.90
Loans held for sale			25,039						237						3.79						12,630						131						4.15
Loans: (3)
Commercial			6,953,227						70,886						4.08						6,890,010						69,463						4.03
Real Estate Mortgage			912,662						9,488						4.16						887,257						10,122						4.56
Installment			659,515						6,391						3.88						724,165						7,596						4.20
Tax-Exempt (2)			732,081						7,019						3.84						666,548						6,784						4.07
Total Loans			9,282,524						94,021						4.05						9,180,610						94,096						4.10
Total Earning Assets			13,558,956						118,224						3.49		%				12,187,442						113,340						3.72		%
Net unrealized gain (loss) on securities available for sale			44,250																		56,807
Allowance for credit losses			(201,051)																		(106,858)
Cash and cash equivalents			171,489																		303,491
Premises and equipment			107,369																		113,528
Other assets			1,077,584																		1,100,912
Total Assets			$	14,758,597																	$	13,655,322
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits			$	4,745,181					$	3,560					0.30		%				$	3,951,819					$	4,186					0.42		%
Money market deposits			2,337,143						796						0.14						1,673,104						1,696						0.41
Savings deposits			1,740,233						462						0.11						1,521,312						596						0.16
Certificates and other time deposits			812,370						1,005						0.49						1,498,002						6,229						1.66
Total Interest-bearing Deposits			9,634,927						5,823						0.24						8,644,237						12,707						0.59
Borrowings			644,702						3,188						1.98						909,258						3,527						1.55
Total Interest-bearing Liabilities			10,279,629						9,011						0.35						9,553,495						16,234						0.68
Noninterest-bearing deposits			2,490,226																		2,145,672
Other liabilities			142,705																		160,646
Total Liabilities			12,912,560																		11,859,813
Stockholders' Equity			1,846,037																		1,795,509
Total Liabilities and Stockholders' Equity			$	14,758,597					9,011												$	13,655,322					16,234
Net Interest Income (FTE)									$	109,213																	$	97,106
Net Interest Spread (FTE) (4)															3.14		%																3.04		%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets															3.49		%																3.72		%
Interest Expense / Average Earning Assets															0.27		%																0.53		%
Net Interest Margin (FTE) (5)															3.22		%																3.19		%
(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 2021 and 2020. These totals equal $4,949 and $4,088 for the three months ended June 30, 2021 and 2020, 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, 2021																		June 30, 2020
			Average Balance						Interest  Income / Expense						Average Rate						Average Balance						Interest  Income / Expense						Average Rate
Assets:
Interest-bearing deposits			$	493,791					$	243					0.10		%				$	269,174					$	709					0.53		%
Federal Home Loan Bank stock			28,736						266						1.85						28,736						580						4.04
Investment Securities: (1)
Taxable			1,613,847						14,135						1.75						1,325,313						13,778						2.08
Tax-Exempt (2)			1,896,643						32,223						3.40						1,263,122						24,499						3.88
Total Investment Securities			3,510,490						46,358						2.64						2,588,435						38,277						2.96
Loans held for sale			20,572						393						3.82						14,924						324						4.34
Loans: (3)
Commercial			6,915,234						140,060						4.05						6,562,673						146,415						4.46
Real Estate Mortgage			943,830						18,774						3.98						878,956						20,524						4.67
Installment			666,870						12,880						3.86						741,889						16,701						4.50
Tax-Exempt (2)			713,094						13,777						3.86						655,149						13,511						4.12
Total Loans			9,259,600						185,884						4.01						8,853,591						197,475						4.46
Total Earning Assets			13,292,617						232,751						3.51		%				11,739,936						237,041						4.04		%
Net unrealized gain on securities available for sale			49,922																		52,732
Allowance for credit losses			(202,693)																		(94,009)
Cash and cash equivalents			168,647																		231,624
Premises and equipment			109,170																		113,670
Other assets			1,085,424																		1,070,327
Total Assets			$	14,503,087																	$	13,114,280
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits			$	4,681,439					$	7,269					0.31		%				$	3,770,530					$	12,461					0.66		%
Money market deposits			2,212,425						1,631						0.15						1,604,474						5,479						0.68
Savings deposits			1,700,601						938						0.11						1,473,183						2,424						0.33
Certificates and other time deposits			835,722						2,185						0.52						1,582,322						14,091						1.78
Total Interest-bearing Deposits			9,430,187						12,023						0.25						8,430,509						34,455						0.82
Borrowings			659,826						6,376						1.93						828,721						7,709						1.86
Total Interest-bearing Liabilities			10,090,013						18,399						0.36						9,259,230						42,164						0.91
Noninterest-bearing deposits			2,417,888																		1,907,582
Other liabilities			151,936																		141,505
Total Liabilities			12,659,837																		11,308,317
Stockholders' Equity			1,843,250																		1,805,963
Total Liabilities and Stockholders' Equity			$	14,503,087					18,399												$	13,114,280					42,164
Net Interest Income (FTE)									$	214,352																	$	194,877
Net Interest Spread (FTE) (4)															3.15		%																3.13		%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets															3.51		%																4.04		%
Interest Expense / Average Earning Assets															0.28		%																0.72		%
Net Interest Margin (FTE) (5)															3.23		%																3.32		%
(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 2021 and 2020. These totals equal $9,660 and $7,982 for the six months ended June 30, 2021 and 2020, 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.