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,
			2023						2022
ASSETS
Cash and due from banks			$	125,818					$	148,277
Interest-bearing deposits			352,695						395,262
Investment securities, net of allowance for credit losses of $245,000 and $245,000			4,057,389						4,489,263
Loans held for sale			9,408						3,938
Loans			12,241,461						9,356,241
Less: Allowance for credit losses - loans			(223,052)						(195,984)
Net loans			12,018,409						9,160,257
Premises and equipment			115,857						105,883
Federal Home Loan Bank stock			41,878						26,422
Interest receivable			85,515						56,081
Goodwill and other intangibles			745,647						569,494
Cash surrender value of life insurance			309,090						291,881
Other real estate owned			7,777						6,271
Tax asset, deferred and receivable			103,070						73,422
Other assets			206,355						138,807
TOTAL ASSETS			$	18,178,908					$	15,465,258
LIABILITIES
Deposits:
Noninterest-bearing			$	2,964,355					$	2,745,235
Interest-bearing			11,738,932						10,160,718
Total Deposits			14,703,287						12,905,953
Borrowings:
Federal funds purchased			20						—
Securities sold under repurchase agreements			179,067						169,697
Federal Home Loan Bank advances			823,577						308,960
Subordinated debentures and other borrowings			151,312						118,677
Total Borrowings			1,153,976						597,334
Interest payable			11,979						3,589
Other liabilities			187,218						150,749
Total Liabilities			16,056,460						13,657,625
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares			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 shares			25,000						—
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 59,257,051 and 53,424,823 shares			7,407						6,678
Additional paid-in capital			1,231,532						987,404
Retained earnings			1,057,298						897,818
Accumulated other comprehensive loss			(198,914)						(84,392)
Total Stockholders' Equity			2,122,448						1,807,633
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	18,178,908					$	15,465,258

CONSOLIDATED STATEMENTS OF INCOME			Three Months Ended
(Dollars In Thousands, Except Per Share Amounts)			March 31,
			2023						2022
INTEREST INCOME
Loans receivable:
Taxable			$	172,353					$	79,075
Tax-exempt			7,709						5,704
Investment securities:
Taxable			9,087						8,510
Tax-exempt			16,070						15,875
Deposits with financial institutions			637						230
Federal Home Loan Bank stock			542						146
Total Interest Income			206,398						109,540
INTEREST EXPENSE
Deposits			50,685						4,294
Federal funds purchased			1,297						—
Securities sold under repurchase agreements			848						89
Federal Home Loan Bank advances			7,064						1,218
Subordinated debentures and other borrowings			2,385						1,659
Total Interest Expense			62,279						7,260
NET INTEREST INCOME			144,119						102,280
Provision for credit losses - loans			—						—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			144,119						102,280
NON-INTEREST INCOME
Service charges on deposit accounts			7,359						6,419
Fiduciary and wealth management fees			7,862						7,332
Card payment fees			5,172						5,723
Net gains and fees on sales of loans			2,399						2,199
Derivative hedge fees			1,148						918
Other customer fees			517						410
Earnings on cash surrender value of life insurance			1,288						1,696
Net realized gains (losses) on sales of available for sale securities			(1,571)						566
Other income			823						634
Total Non-Interest Income			24,997						25,897
NON-INTEREST EXPENSES
Salaries and employee benefits			57,459						42,519
Net occupancy			7,259						6,187
Equipment			6,126						5,080
Marketing			1,309						736
Outside data processing fees			6,113						4,363
Printing and office supplies			383						345
Intangible asset amortization			2,197						1,366
FDIC assessments			1,396						2,192
Other real estate owned and foreclosure expenses			(18)						564
Professional and other outside services			3,698						2,953
Other expenses			7,798						6,020
Total Non-Interest Expenses			93,720						72,325
INCOME BEFORE INCOME TAX			75,396						55,852
Income tax expense			11,317						7,266
NET INCOME			64,079						48,586
Preferred stock dividends			469						—
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,
			2023						2022
NET CHARGE-OFFS (RECOVERIES)			$	225					$	(587)
AVERAGE BALANCES:
Total Assets			$	18,022,195					$	15,464,605
Total Loans			12,135,384						9,255,928
Total Earning Assets			16,824,407						14,262,777
Total Deposits			14,423,409						12,817,690
Total Stockholders' Equity			2,083,125						1,891,223
FINANCIAL RATIOS:
Return on Average Assets			1.42		%				1.26		%
Return on Average Stockholders' Equity			12.21						10.28
Return on Tangible Common Stockholders' Equity			19.82						14.99
Average Earning Assets to Average Assets			93.35						92.23
Allowance for Credit Losses - Loans as % of Total Loans			1.82						2.09
Net Charge-offs as % of Average Loans (Annualized)			0.01						(0.03)
Average Stockholders' Equity to Average Assets			11.56						12.23
Tax Equivalent Yield on Average Earning Assets			5.06						3.23
Interest Expense/Average Earning Assets			1.48						0.20
Net Interest Margin (FTE) on Average Earning Assets			3.58						3.03
Efficiency Ratio			51.72						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,
			2023						2022						2022						2022						2022
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 Repossessions			7,777						6,431						6,454						6,521						6,271
Non-Performing Assets (NPA)			54,353						48,979						50,157						52,724						49,110
90+ Days Delinquent			7,032						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,
			2023						2022						2022						2022						2022
ASSETS
Cash and due from banks			$	125,818					$	122,594					$	119,532					$	212,559					$	148,277
Interest-bearing deposits			352,695						126,061						179,593						136,702						395,262
Investment securities, net of allowance for credit losses			4,057,389						4,263,788						4,294,768						4,630,030						4,489,263
Loans held for sale			9,408						9,094						25,394						9,060						3,938
Loans			12,241,461						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 loans			12,018,409						11,780,617						11,423,300						11,171,142						9,160,257
Premises and equipment			115,857						117,118						116,306						117,757						105,883
Federal Home Loan Bank stock			41,878						38,525						38,056						38,111						26,422
Interest receivable			85,515						85,070						71,605						68,728						56,081
Goodwill and other intangibles			745,647						747,844						750,713						753,649						569,494
Cash surrender value of life insurance			309,090						308,311						306,932						323,013						291,881
Other real estate owned			7,777						6,431						6,454						6,521						6,271
Tax asset, deferred and receivable			103,070						111,222						142,110						114,965						73,422
Other assets			206,355						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-bearing			11,738,932						11,209,328						11,078,174						11,135,538						10,160,718
Total Deposits			14,703,287						14,382,745						14,434,825						14,570,869						12,905,953
Borrowings:
Federal funds purchased			20						171,560						185,000						100,000						—
Securities sold under repurchase agreements			179,067						167,413						194,482						186,468						169,697
Federal Home Loan Bank advances			823,577						823,674						643,769						598,865						308,960
Subordinated debentures and other borrowings			151,312						151,298						151,301						151,299						118,677
Total Borrowings			1,153,976						1,313,945						1,174,552						1,036,632						597,334
Interest payable			11,979						7,530						4,971						2,978						3,589
Other liabilities			187,218						199,316						197,971						192,372						150,749
Total Liabilities			16,056,460						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 shares			125						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 shares			25,000						25,000						25,000						25,000						—
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding			7,407						7,396						7,393						7,383						6,678
Additional paid-in capital			1,231,532						1,228,626						1,226,695						1,226,378						987,404
Retained earnings			1,057,298						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' Equity			2,122,448						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)			March						December 31,						September 30,						June 30,						March 31,
			2023						2022						2022						2022						2022
INTEREST INCOME
Loans receivable:
Taxable			$	172,353					$	156,102					$	128,504					$	106,787					$	79,075
Tax-exempt			7,709						6,930						6,500						5,990						5,704
Investment securities:
Taxable			9,087						9,417						10,055						10,372						8,510
Tax-exempt			16,070						17,033						17,261						17,212						15,875
Deposits with financial institutions			637						959						704						610						230
Federal Home Loan Bank stock			542						541						314						175						146
Total Interest Income			206,398						190,982						163,338						141,146						109,540
INTEREST EXPENSE
Deposits			50,685						33,516						16,644						8,485						4,294
Federal funds purchased			1,297						808						418						76						—
Securities sold under repurchase agreements			848						541						372						134						89
Federal Home Loan Bank advances			7,064						4,932						3,493						1,774						1,218
Subordinated debentures and other borrowings			2,385						2,229						2,105						2,016						1,659
Total Interest Expense			62,279						42,026						23,032						12,485						7,260
NET INTEREST INCOME			144,119						148,956						140,306						128,661						102,280
Provision for credit losses - loans			—						—						—						16,755						—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			144,119						148,956						140,306						111,906						102,280
NON-INTEREST INCOME
Service charges on deposit accounts			7,359						7,097						7,165						7,690						6,419
Fiduciary and wealth management fees			7,862						7,501						7,221						7,634						7,332
Card payment fees			5,172						4,533						4,776						5,175						5,723
Net gains and fees on sales of loans			2,399						2,087						2,543						3,226						2,199
Derivative hedge fees			1,148						326						700						1,444						918
Other customer fees			517						362						501						662						410
Earnings on cash surrender value of life insurance			1,288						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 Income			24,997						24,150						29,617						28,277						25,897
NON-INTEREST EXPENSES
Salaries and employee benefits			57,459						52,331						56,002						56,041						42,519
Net occupancy			7,259						6,638						6,738						6,648						6,187
Equipment			6,126						6,148						5,997						6,720						5,080
Marketing			1,309						3,157						2,401						1,414						736
Outside data processing fees			6,113						5,611						6,827						4,881						4,363
Printing and office supplies			383						390						472						381						345
Intangible asset amortization			2,197						2,303						2,303						2,303						1,366
FDIC assessments			1,396						2,295						2,824						2,924						2,192
Other real estate owned and foreclosure expenses			(18)						197						328						(266)						564
Professional and other outside services			3,698						3,961						4,461						10,267						2,953
Other expenses			7,798						6,668						8,025						6,000						6,020
Total Non-Interest Expenses			93,720						89,699						96,378						97,313						72,325
INCOME BEFORE INCOME TAX			75,396						83,407						73,545						42,870						55,852
Income tax expense			11,317						12,647						9,793						3,879						7,266
NET INCOME			64,079						70,760						63,752						38,991						48,586
Preferred stock dividends			469						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 Assets			1.42		%				1.59		%				1.43		%				0.88		%				1.26		%
Return on Average Stockholders' Equity			12.21						14.36						12.54						7.62						10.28
Return on Tangible Common Stockholders' Equity			19.82						24.21						20.85						12.91						14.99
Average Earning Assets to Average Assets			93.35						93.66						92.90						92.45						92.23
Allowance for Credit Losses - Loans as % of Total 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)
Average Stockholders' Equity to Average Assets			11.56						10.98						11.36						11.37						12.23
Tax Equivalent Yield on Average Earning Assets			5.06						4.73						4.11						3.58						3.23
Interest Expense/Average Earning Assets			1.48						1.01						0.56						0.30						0.20
Net Interest Margin (FTE) on Average Earning Assets			3.58						3.72						3.55						3.28						3.03
Efficiency Ratio			51.72						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,
			2023						2022						2022						2022						2022
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 farmers			219,598						241,793						221,954						214,904						209,077
Real estate loans:
Construction			960,979						835,582						828,923						745,983						552,975
Commercial real estate, non-owner occupied			2,375,410						2,407,475						2,299,272						2,423,185						2,073,197
Commercial real estate, owner occupied			1,244,117						1,246,528						1,268,567						1,264,563						974,521
Residential			2,185,943						2,096,655						1,990,668						1,813,297						1,226,695
Home equity			621,354						630,632						621,619						586,108						512,641
Individuals' loans for household and other personal expenditures			172,389						175,211						173,225						157,264						147,593
Public finance and other commercial loans			959,467						932,892						915,245						894,636						832,882
Loans			12,241,461						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,
			2023						2022						2022						2022						2022
Demand deposits			$	8,422,387					$	8,448,797					$	8,534,950					$	8,785,889					$	7,806,033
Savings deposits			4,499,487						4,657,140						5,054,490						4,875,880						4,444,417
Certificates and other time deposits of $100,000 or more			1,040,379						742,539						443,588						436,942						252,033
Other certificates and time deposits			574,886						468,712						381,365						446,973						380,293
Brokered certificates of deposits			166,148						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, 2023																		March 31, 2022
			Average Balance						Interest  Income / Expense						Average Rate						Average Balance						Interest  Income / Expense						Average Rate
ASSETS
Interest-bearing deposits			$	172,814					$	637					1.47		%				$	484,626					$	230					0.19		%
Federal Home Loan Bank stock			39,759						542						5.45						27,914						146						2.09
Investment securities: (1)
Taxable			1,924,079						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 Securities			4,476,450						29,429						2.63						4,494,309						28,605						2.55
Loans held for sale			23,538						360						6.12						4,352						40						3.68
Loans: (3)
Commercial			8,483,879						139,661						6.58						6,868,438						64,679						3.77
Real estate mortgage			1,914,640						18,391						3.84						924,268						7,840						3.39
Installment			840,450						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 Loans			12,135,384						182,111						6.00						9,255,928						86,295						3.73
Total Earning Assets			16,824,407						212,719						5.06		%				14,262,777						115,276						3.23		%
Total Non-Earning Assets			1,197,788																		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 deposits			2,746,047						13,577						1.98						2,514,429						872						0.14
Savings deposits			1,826,209						2,965						0.65						1,867,411						441						0.09
Certificates and other time deposits			1,466,275						9,481						2.59						676,661						573						0.34
Total Interest-Bearing Deposits			11,302,132						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 Liabilities			12,595,441						62,279						1.98						10,702,539						7,260						0.27
Noninterest-bearing deposits			3,121,277																		2,731,723
Other liabilities			222,352																		139,120
Total Liabilities			15,939,070																		13,573,382
STOCKHOLDERS' EQUITY			2,083,125																		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 Assets															5.06		%																3.23		%
Interest Expense / Average Earning Assets															1.48		%																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,
			2023						2022						2022						2022						2022
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 adjustment			6						(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			—						0.01						0.05						0.22						—
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,
			2023						2022						2022						2022						2022
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 Tax			1,734						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		%