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

July 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 SECOND QUARTER 2023 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME)

Second Quarter 2023 Highlights:

•    Net income available to common stockholders was $60.4 million and diluted earnings per common share totaled $1.02, compared to $38.5 million and $.63 in the second quarter of 2022, and $63.6 million and $1.07 in the first quarter of 2023.

•    Adjusted net income1 was $60.4 million and adjusted diluted earnings per share1 totaled $1.02, compared to $60.0 million and $1.01 in the second quarter of 2022, and $63.6 million and $1.07 in the first quarter of 2023.

•    Strong capital position with Common Equity Tier 1 Capital Ratio of 11.07 percent

•    Total loans grew $46.7 million, or 1.5 percent annualized on a linked quarter basis, and $163.2 million, or 5.4 percent annualized when excluding non-relationship based commercial loan sales that occurred during the quarter of $116.6 million.

•    Total deposits declined $122.1 million, or 3.3 percent annualized on a linked quarter basis

•    Nonaccrual loans totaled $69.2 million compared to $46.6 million on a linked quarter basis

•    The efficiency ratio totaled 52.21 percent for the quarter

Mark Hardwick, Chief Executive Officer, stated, “We are pleased to report our second quarter 2023 results. Performance remains healthy and strong and our teams continue to meet the demands of our communities and client base.”

Second Quarter Financial Results:

First Merchants Corporation (the “Corporation) has reported second quarter 2023 net income available to common stockholders of $60.4 million compared to $38.5 million during the same period in 2022. Diluted earnings per common share for the period totaled $1.02 per share compared to the second quarter of 2022 result of $.63 per share. Prior year results included acquisition costs related to the acquisition of Level One of $29.3 million resulting in a reduction of $.38 of diluted earnings per common share.

Total assets equaled $18.0 billion as of quarter-end and loans totaled $12.3 billion. During the past twelve months, total loans grew by $1.0 billion, or 9.2 percent and were offset by the non-relationship based commercial loan sale of $116.6 million and PPP loan forgiveness of $29.6 million. On a linked quarter basis, loans grew $163.2 million, or 5.4 percent, when excluding the loan sale that occurred during the quarter of $116.6 million.

Investments, totaling $3.9 billion, decreased $738.5 million, or 16.0 percent, during the last twelve months and decreased $165.9 million, or 16.4 percent annualized on a linked quarter basis. The decline during the quarter was primarily due to $101.0 million of bond sales.

Total deposits equaled $14.6 billion as of quarter-end and increased by $10.3 million over the past twelve months. Total deposits declined $122.1 million, or 3.3 percent annualized on a linked quarter basis. The loan to deposit ratio for the current quarter ended at 84.3 percent.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $221.1 million as of quarter-end, or 1.80 percent of total loans, a decrease of $5.1 million from prior year. Loan charge-offs, net of recoveries, for the quarter totaled $1.9 million. No provision expense was recorded during the quarter or during the last twelve months. Non-performing assets to total assets were 0.43 percent for the second quarter of 2023, an increase of 13 basis points compared to 0.30 percent in the second quarter of 2022.

Net-interest income, totaling $137.8 million for the quarter, declined $6.3 million, or 4.4 percent, compared to prior quarter and increased $9.2 million, or 7.1 percent compared to the second quarter of 2022. Stated net-interest margin on a tax equivalent basis, totaling 3.39 percent, declined by 19 basis points compared to the first quarter of 2023 but increased 11 basis points compared to the second quarter of 2022. Net-interest margin, excluding the impact of fair value accretion and PPP loans, totaled 3.34 percent, a decrease of 18 basis points compared to 3.52 percent for the first quarter of 2023 but an increase of 15 basis points from the second quarter of 2022. During the quarter, increased deposit costs and mix offset the increase in earning asset yields reducing net-interest margin.

Non-interest income, totaling $26.3 million for the quarter, increased $1.3 million or 5.3 percent compared to the first quarter of 2023 but decreased $2.0 million from the second quarter of 2022. The increase over first quarter of 2023 was driven primarily by higher gains on the sales of loans and BOLI death benefit gains.

Non-interest expense totaled $92.6 million for the quarter, a decline of $1.1 million from the first quarter of 2023. The decrease was from lower salaries and employee benefits, partially offset by increases in FDIC assessments and other real estate owned and foreclosure expense.

The Corporation’s total risk-based capital ratio equaled 13.48 percent, common equity tier 1 capital ratio equaled 11.07 percent, and the tangible common equity ratio totaled 7.99 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 second quarter earnings conference call and web cast at 11:30 a.m. (ET) on Tuesday, July 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/BIc7becea7282048a2b5559e10b25ca4af)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/athyqu7i) during the time of the call. A replay of the webcast will be available until July 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)			June 30,
			2023						2022
ASSETS
Cash and due from banks			$	108,975					$	212,559
Interest-bearing deposits			219,480						136,702
Investment securities, net of allowance for credit losses of $245,000 and $245,000			3,891,491						4,630,030
Loans held for sale			27,297						9,060
Loans			12,270,233						11,397,417
Less: Allowance for credit losses - loans			(221,147)						(226,275)
Net loans			12,049,086						11,171,142
Premises and equipment			114,402						117,757
Federal Home Loan Bank stock			41,842						38,111
Interest receivable			89,784						68,728
Goodwill and other intangibles			743,465						753,649
Cash surrender value of life insurance			307,020						323,013
Other real estate owned			7,685						6,521
Tax asset, deferred and receivable			113,724						114,965
Other assets			254,161						198,255
TOTAL ASSETS			$	17,968,412					$	17,780,492
LIABILITIES
Deposits:
Noninterest-bearing			$	2,636,017					$	3,435,331
Interest-bearing			11,945,138						11,135,538
Total Deposits			14,581,155						14,570,869
Borrowings:
Federal funds purchased			—						100,000
Securities sold under repurchase agreements			152,472						186,468
Federal Home Loan Bank advances			723,480						598,865
Subordinated debentures and other borrowings			151,325						151,299
Total Borrowings			1,027,277						1,036,632
Interest payable			13,595						2,978
Other liabilities			200,820						192,372
Total Liabilities			15,822,847						15,802,851
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						25,000
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 59,297,148 and 59,059,866 shares			7,412						7,383
Additional paid-in capital			1,233,593						1,226,378
Retained earnings			1,097,399						917,311
Accumulated other comprehensive loss			(217,964)						(198,556)
Total Stockholders' Equity			2,145,565						1,977,641
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	17,968,412					$	17,780,492

CONSOLIDATED STATEMENTS OF INCOME			Three Months Ended												Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)			June 30,												June 30,
			2023						2022						2023						2022
INTEREST INCOME
Loans receivable:
Taxable			$	186,256					$	106,787					$	358,609					$	185,862
Tax-exempt			7,760						5,990						15,469						11,694
Investment securities:
Taxable			8,886						10,372						17,973						18,882
Tax-exempt			14,279						17,212						30,349						33,087
Deposits with financial institutions			3,164						610						3,801						840
Federal Home Loan Bank stock			1,020						175						1,562						321
Total Interest Income			221,365						141,146						427,763						250,686
INTEREST EXPENSE
Deposits			73,201						8,485						123,886						12,779
Federal funds purchased			123						76						1,420						76
Securities sold under repurchase agreements			979						134						1,827						223
Federal Home Loan Bank advances			6,815						1,774						13,879						2,992
Subordinated debentures and other borrowings			2,412						2,016						4,797						3,675
Total Interest Expense			83,530						12,485						145,809						19,745
NET INTEREST INCOME			137,835						128,661						281,954						230,941
Provision for credit losses - loans			—						16,755						—						16,755
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			137,835						111,906						281,954						214,186
NON-INTEREST INCOME
Service charges on deposit accounts			7,813						7,690						15,172						14,109
Fiduciary and wealth management fees			7,397						7,634						15,259						14,966
Card payment fees			4,537						5,175						9,709						10,898
Net gains and fees on sales of loans			3,632						3,226						6,031						5,425
Derivative hedge fees			672						1,444						1,820						2,362
Other customer fees			742						662						1,259						1,072
Earnings on cash surrender value of life insurance			2,096						1,308						3,384						3,004
Net realized gains (losses) on sales of available for sale securities			(1,392)						90						(2,963)						656
Other income			822						1,048						1,645						1,682
Total Non-Interest Income			26,319						28,277						51,316						54,174
NON-INTEREST EXPENSES
Salaries and employee benefits			54,753						56,041						112,212						98,560
Net occupancy			6,674						6,648						13,933						12,835
Equipment			6,181						6,720						12,307						11,800
Marketing			1,102						1,414						2,411						2,150
Outside data processing fees			6,604						4,881						12,717						9,244
Printing and office supplies			434						381						817						726
Intangible asset amortization			2,182						2,303						4,379						3,669
FDIC assessments			2,740						2,924						4,136						5,116
Other real estate owned and foreclosure expenses			916						(266)						898						298
Professional and other outside services			4,660						10,267						8,358						13,220
Other expenses			6,347						6,000						14,145						12,020
Total Non-Interest Expenses			92,593						97,313						186,313						169,638
INCOME BEFORE INCOME TAX			71,561						42,870						146,957						98,722
Income tax expense			10,699						3,879						22,016						11,145
NET INCOME			60,862						38,991						124,941						87,577
Preferred stock dividends			469						469						938						469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS			$	60,393					$	38,522					$	124,003					$	87,108
Per Share Data:
Basic Net Income Available to Common Stockholders			$	1.02					$	0.64					$	2.09					$	1.55
Diluted Net Income Available to Common Stockholders			$	1.02					$	0.63					$	2.09					$	1.54
Cash Dividends Paid to Common Stockholders			$	0.34					$	0.32					$	0.66					$	0.61
Average Diluted Common Shares Outstanding (in thousands)			59,448						59,308						59,446						56,516

FINANCIAL HIGHLIGHTS
(Dollars in thousands)			Three Months Ended												Six Months Ended
			June 30,												June 30,
			2023						2022						2023						2022
NET CHARGE-OFFS (RECOVERIES)			$	1,905					$	263					$	2,130					$	(324)
AVERAGE BALANCES:
Total Assets			$	18,170,649					$	17,778,221					$	18,096,832					$	16,627,804
Total Loans			12,369,673						11,175,188						12,253,176						10,220,860
Total Earning Assets			16,968,465						16,435,747						16,896,834						15,355,265
Total Deposits			14,719,913						14,809,528						14,572,480						13,819,111
Total Stockholders' Equity			2,139,877						2,021,123						2,111,658						1,956,532
FINANCIAL RATIOS:
Return on Average Assets			1.34		%				0.88		%				1.38		%				1.05		%
Return on Average Stockholders' Equity			11.29						7.62						11.74						8.90
Return on Tangible Common Stockholders' Equity			18.04						12.91						18.91						13.98
Average Earning Assets to Average Assets			93.38						92.45						93.37						92.35
Allowance for Credit Losses - Loans as % of Total Loans			1.80						1.98						1.80						1.98
Net Charge-offs as % of Average Loans (Annualized)			0.06						0.01						0.03						(0.01)
Average Stockholders' Equity to Average Assets			11.78						11.37						11.67						11.77
Tax Equivalent Yield on Average Earning Assets			5.36						3.58						5.21						3.42
Interest Expense/Average Earning Assets			1.97						0.30						1.73						0.26
Net Interest Margin (FTE) on Average Earning Assets			3.39						3.28						3.48						3.16
Efficiency Ratio			52.21						58.45						51.96						55.90
Tangible Common Book Value Per Share			$	23.34					$	20.45					$	23.34					$	20.45

NON-PERFORMING ASSETS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2023						2023						2022						2022						2022
Non-Accrual Loans			$	69,240					$	46,576					$	42,324					$	43,508					$	45,970
Troubled Debt Restructures (TDR)			—						—						224						195						233
Non-Performing Loans (NPL)			69,240						46,576						42,548						43,703						46,203
Other Real Estate Owned and Repossessions			7,685						7,777						6,431						6,454						6,521
Non-Performing Assets (NPA)			76,925						54,353						48,979						50,157						52,724
90+ Days Delinquent			428						7,032						1,737						764						592
NPAs & 90 Day Delinquent			$	77,353					$	61,385					$	50,716					$	50,921					$	53,316
Allowance for Credit Losses - Loans			$	221,147					$	223,052					$	223,277					$	226,702					$	226,275
Quarterly Net Charge-offs (Recoveries)			1,905						225						2,674						(427)						263
NPAs / Actual Assets %			0.43		%				0.30		%				0.27		%				0.28		%				0.30		%
NPAs & 90 Day / Actual Assets %			0.43		%				0.34		%				0.28		%				0.29		%				0.30		%
NPAs / Actual Loans and OREO %			0.63		%				0.44		%				0.41		%				0.43		%				0.46		%
Allowance for Credit Losses - Loans / Actual Loans (%)			1.80		%				1.82		%				1.86		%				1.94		%				1.98		%
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)			0.06		%				0.01		%				0.12		%				(0.01)		%				0.01		%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2023						2023						2022						2022						2022
ASSETS
Cash and due from banks			$	108,975					$	125,818					$	122,594					$	119,532					$	212,559
Interest-bearing deposits			219,480						352,695						126,061						179,593						136,702
Investment securities, net of allowance for credit losses			3,891,491						4,057,389						4,263,788						4,294,768						4,630,030
Loans held for sale			27,297						9,408						9,094						25,394						9,060
Loans			12,270,233						12,241,461						12,003,894						11,650,002						11,397,417
Less: Allowance for credit losses - loans			(221,147)						(223,052)						(223,277)						(226,702)						(226,275)
Net loans			12,049,086						12,018,409						11,780,617						11,423,300						11,171,142
Premises and equipment			114,402						115,857						117,118						116,306						117,757
Federal Home Loan Bank stock			41,842						41,878						38,525						38,056						38,111
Interest receivable			89,784						85,515						85,070						71,605						68,728
Goodwill and other intangibles			743,465						745,647						747,844						750,713						753,649
Cash surrender value of life insurance			307,020						309,090						308,311						306,932						323,013
Other real estate owned			7,685						7,777						6,431						6,454						6,521
Tax asset, deferred and receivable			113,724						103,070						111,222						142,110						114,965
Other assets			254,161						206,355						221,631						244,222						198,255
TOTAL ASSETS			$	17,968,412					$	18,178,908					$	17,938,306					$	17,718,985					$	17,780,492
LIABILITIES
Deposits:
Noninterest-bearing			$	2,636,017					$	2,964,355					$	3,173,417					$	3,356,651					$	3,435,331
Interest-bearing			11,945,138						11,738,932						11,209,328						11,078,174						11,135,538
Total Deposits			14,581,155						14,703,287						14,382,745						14,434,825						14,570,869
Borrowings:
Federal funds purchased			—						20						171,560						185,000						100,000
Securities sold under repurchase agreements			152,472						179,067						167,413						194,482						186,468
Federal Home Loan Bank advances			723,480						823,577						823,674						643,769						598,865
Subordinated debentures and other borrowings			151,325						151,312						151,298						151,301						151,299
Total Borrowings			1,027,277						1,153,976						1,313,945						1,174,552						1,036,632
Interest payable			13,595						11,979						7,530						4,971						2,978
Other liabilities			200,820						187,218						199,316						197,971						192,372
Total Liabilities			15,822,847						16,056,460						15,903,536						15,812,319						15,802,851
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						25,000
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding			7,412						7,407						7,396						7,393						7,383
Additional paid-in capital			1,233,593						1,231,532						1,228,626						1,226,695						1,226,378
Retained earnings			1,097,399						1,057,298						1,012,774						961,542						917,311
Accumulated other comprehensive loss			(217,964)						(198,914)						(239,151)						(314,089)						(198,556)
Total Stockholders' Equity			2,145,565						2,122,448						2,034,770						1,906,666						1,977,641
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	17,968,412					$	18,178,908					$	17,938,306					$	17,718,985					$	17,780,492

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)			June 30,						March 31,						December 31,						September 30,						June 30,
			2023						2023						2022						2022						2022
INTEREST INCOME
Loans receivable:
Taxable			$	186,256					$	172,353					$	156,102					$	128,504					$	106,787
Tax-exempt			7,760						7,709						6,930						6,500						5,990
Investment securities:
Taxable			8,886						9,087						9,417						10,055						10,372
Tax-exempt			14,279						16,070						17,033						17,261						17,212
Deposits with financial institutions			3,164						637						959						704						610
Federal Home Loan Bank stock			1,020						542						541						314						175
Total Interest Income			221,365						206,398						190,982						163,338						141,146
INTEREST EXPENSE
Deposits			73,201						50,685						33,516						16,644						8,485
Federal funds purchased			123						1,297						808						418						76
Securities sold under repurchase agreements			979						848						541						372						134
Federal Home Loan Bank advances			6,815						7,064						4,932						3,493						1,774
Subordinated debentures and other borrowings			2,412						2,385						2,229						2,105						2,016
Total Interest Expense			83,530						62,279						42,026						23,032						12,485
NET INTEREST INCOME			137,835						144,119						148,956						140,306						128,661
Provision for credit losses - loans			—						—						—						—						16,755
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			137,835						144,119						148,956						140,306						111,906
NON-INTEREST INCOME
Service charges on deposit accounts			7,813						7,359						7,097						7,165						7,690
Fiduciary and wealth management fees			7,397						7,862						7,501						7,221						7,634
Card payment fees			4,537						5,172						4,533						4,776						5,175
Net gains and fees on sales of loans			3,632						2,399						2,087						2,543						3,226
Derivative hedge fees			672						1,148						326						700						1,444
Other customer fees			742						517						362						501						662
Earnings on cash surrender value of life insurance			2,096						1,288						1,515						6,655						1,308
Net realized gains (losses) on sales of available for sale securities			(1,392)						(1,571)						57						481						90
Other income (loss)			822						823						672						(425)						1,048
Total Non-Interest Income			26,319						24,997						24,150						29,617						28,277
NON-INTEREST EXPENSES
Salaries and employee benefits			54,753						57,459						52,331						56,002						56,041
Net occupancy			6,674						7,259						6,638						6,738						6,648
Equipment			6,181						6,126						6,148						5,997						6,720
Marketing			1,102						1,309						3,157						2,401						1,414
Outside data processing fees			6,604						6,113						5,611						6,827						4,881
Printing and office supplies			434						383						390						472						381
Intangible asset amortization			2,182						2,197						2,303						2,303						2,303
FDIC assessments			2,740						1,396						2,295						2,824						2,924
Other real estate owned and foreclosure expenses			916						(18)						197						328						(266)
Professional and other outside services			4,660						3,698						3,961						4,461						10,267
Other expenses			6,347						7,798						6,668						8,025						6,000
Total Non-Interest Expenses			92,593						93,720						89,699						96,378						97,313
INCOME BEFORE INCOME TAX			71,561						75,396						83,407						73,545						42,870
Income tax expense			10,699						11,317						12,647						9,793						3,879
NET INCOME			60,862						64,079						70,760						63,752						38,991
Preferred stock dividends			469						469						468						469						469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS			$	60,393					$	63,610					$	70,292					$	63,283					$	38,522
Per Share Data:
Basic Net Income Available to Common Stockholders			$	1.02					$	1.07					$	1.20					$	1.08					$	0.64
Diluted Net Income Available to Common Stockholders			$	1.02					$	1.07					$	1.19					$	1.08					$	0.63
Cash Dividends Paid to Common Stockholders			$	0.34					$	0.32					$	0.32					$	0.32					$	0.32
Average Diluted Common Shares Outstanding (in thousands)			59,448						59,441						59,384						59,339						59,308
FINANCIAL RATIOS:
Return on Average Assets			1.34		%				1.42		%				1.59		%				1.43		%				0.88		%
Return on Average Stockholders' Equity			11.29						12.21						14.36						12.54						7.62
Return on Tangible Common Stockholders' Equity			18.04						19.82						24.21						20.85						12.91
Average Earning Assets to Average Assets			93.38						93.35						93.66						92.90						92.45
Allowance for Credit Losses - Loans as % of Total Loans			1.80						1.82						1.86						1.94						1.98
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)			0.06						0.01						0.12						(0.01)						0.01
Average Stockholders' Equity to Average Assets			11.78						11.56						10.98						11.36						11.37
Tax Equivalent Yield on Average Earning Assets			5.36						5.06						4.73						4.11						3.58
Interest Expense/Average Earning Assets			1.97						1.48						1.01						0.56						0.30
Net Interest Margin (FTE) on Average Earning Assets			3.39						3.58						3.72						3.55						3.28
Efficiency Ratio			52.21						51.72						48.60						53.34						58.45
Tangible Common Book Value Per Share			$	23.34					$	22.93					$	21.45					$	19.26					$	20.45

LOANS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2023						2023						2022						2022						2022
Commercial and industrial loans			$	3,531,395					$	3,502,204					$	3,437,126					$	3,330,529					$	3,297,477
Agricultural land, production and other loans to farmers			230,003						219,598						241,793						221,954						214,904
Real estate loans:
Construction			949,918						960,979						835,582						828,923						745,983
Commercial real estate, non-owner occupied			2,379,819						2,375,410						2,407,475						2,299,272						2,423,185
Commercial real estate, owner occupied			1,179,739						1,244,117						1,246,528						1,268,567						1,264,563
Residential			2,248,473						2,185,943						2,096,655						1,990,668						1,813,297
Home equity			614,366						621,354						630,632						621,619						586,108
Individuals' loans for household and other personal expenditures			172,896						172,389						175,211						173,225						157,264
Public finance and other commercial loans			963,624						959,467						932,892						915,245						894,636
Loans			12,270,233						12,241,461						12,003,894						11,650,002						11,397,417
Allowance for credit losses - loans			(221,147)						(223,052)						(223,277)						(226,702)						(226,275)
NET LOANS			$	12,049,086					$	12,018,409					$	11,780,617					$	11,423,300					$	11,171,142

DEPOSITS
(Dollars In Thousands)			June 30,						March 31,						December 31,						September 30,						June 30,
			2023						2023						2022						2022						2022
Demand deposits			$	8,045,455					$	8,422,387					$	8,448,797					$	8,534,950					$	8,785,889
Savings deposits			4,530,255						4,499,487						4,657,140						5,054,490						4,875,880
Certificates and other time deposits of $100,000 or more			1,160,303						1,040,379						742,539						443,588						436,942
Other certificates and time deposits			680,965						574,886						468,712						381,365						446,973
Brokered certificates of deposits			164,177						166,148						65,557						20,432						25,185
TOTAL DEPOSITS			$	14,581,155					$	14,703,287					$	14,382,745					$	14,434,825					$	14,570,869

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
			For the Three Months Ended
			June 30, 2023																		June 30, 2022
			Average Balance						Interest  Income / Expense						Average Rate						Average Balance						Interest  Income / Expense						Average Rate
ASSETS
Interest-bearing deposits			$	343,253					$	3,164					3.69		%				$	329,626					$	610					0.74		%
Federal Home Loan Bank stock			41,873						1,020						9.74						38,111						175						1.84
Investment Securities: (1)
Taxable			1,876,676						8,886						1.89						2,189,193						10,372						1.90
Tax-exempt (2)			2,336,990						18,075						3.09						2,703,629						21,788						3.22
Total Investment Securities			4,213,666						26,961						2.56						4,892,822						32,160						2.63
Loans held for sale			19,328						300						6.21						28,491						315						4.42
Loans: (3)
Commercial			8,605,339						150,766						7.01						8,134,050						85,867						4.22
Real estate mortgage			2,031,136						20,345						4.01						1,458,317						12,657						3.47
Installment			831,775						14,844						7.14						772,610						7,948						4.11
Tax-exempt (2)			882,095						9,823						4.45						781,720						7,582						3.88
Total Loans			12,369,673						196,078						6.34						11,175,188						114,369						4.09
Total Earning Assets			16,968,465						227,223						5.36		%				16,435,747						147,314						3.58		%
Total Non-Earning Assets			1,202,184																		1,342,474
TOTAL ASSETS			$	18,170,649																	$	17,778,221
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits			$	5,546,232					$	34,574					2.49		%				$	5,372,474					$	4,569					0.34		%
Money market deposits			2,766,876						18,684						2.70						3,024,560						2,130						0.28
Savings deposits			1,724,816						3,884						0.90						1,966,054						916						0.19
Certificates and other time deposits			1,883,998						16,059						3.41						948,799						870						0.37
Total Interest-Bearing Deposits			11,921,922						73,201						2.46						11,311,887						8,485						0.30
Borrowings			1,110,486						10,329						3.72						818,851						4,000						1.95
Total Interest-Bearing Liabilities			13,032,408						83,530						2.56						12,130,738						12,485						0.41
Noninterest-bearing deposits			2,797,991																		3,497,641
Other liabilities			200,373																		128,719
Total Liabilities			16,030,772																		15,757,098
STOCKHOLDERS' EQUITY			2,139,877																		2,021,123
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	18,170,649					83,530												$	17,778,221					12,485
Net Interest Income (FTE)									$	143,693																	$	134,829
Net Interest Spread (FTE) (4)															2.80		%																3.17		%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets															5.36		%																3.58		%
Interest Expense / Average Earning Assets															1.97		%																0.30		%
Net Interest Margin (FTE) (5)															3.39		%																3.28		%
(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 $5,858 and $6,168 for the three months ended June 30, 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.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
			For the Six Months Ended
			June 30, 2023																		June 30, 2022
			Average Balance						Interest  Income / Expense						Average Rate						Average Balance						Interest  Income / Expense						Average Rate
Assets:
Interest-bearing deposits			$	258,504					$	3,801					2.94		%				$	406,698					$	840					0.41		%
Federal Home Loan Bank stock			40,821						1,562						7.65						33,040						321						1.94
Investment Securities: (1)
Taxable			1,900,247						17,973						1.89						2,074,074						18,882						1.82
Tax-exempt (2)			2,444,086						38,416						3.14						2,620,593						41,882						3.20
Total Investment Securities			4,344,333						56,389						2.60						4,694,667						60,764						2.59
Loans held for sale			21,952						660						6.01						18,181						355						3.91
Loans: (3)
Commercial			8,544,945						290,428						6.80						7,504,740						150,545						4.01
Real estate mortgage			1,972,680						38,736						3.93						1,191,075						20,497						3.44
Installment			836,088						28,785						6.89						741,994						14,465						3.90
Tax-exempt (2)			877,511						19,581						4.46						764,870						14,803						3.87
Total Loans			12,253,176						378,190						6.17						10,220,860						200,665						3.93
Total Earning Assets			16,896,834						439,942						5.21		%				15,355,265						262,590						3.42		%
Total Non-Earning Assets			1,199,998																		1,272,539
Total Assets			$	18,096,832																	$	16,627,804
Liabilities:
Interest-Bearing deposits:
Interest-bearing deposits			$	5,405,696					$	59,237					2.19		%				$	5,200,923					$	6,977					0.27		%
Money market deposits			2,756,519						32,261						2.34						2,770,904						3,002						0.22
Savings deposits			1,775,233						6,849						0.77						1,917,005						1,357						0.14
Certificates and other time deposits			1,676,291						25,539						3.05						813,482						1,443						0.35
Total Interest-Bearing Deposits			11,613,739						123,886						2.13						10,702,314						12,779						0.24
Borrowings			1,201,392						21,923						3.65						718,270						6,966						1.94
Total Interest-Bearing Liabilities			12,815,131						145,809						2.28						11,420,584						19,745						0.35
Noninterest-bearing deposits			2,958,741																		3,116,797
Other liabilities			211,302																		133,891
Total Liabilities			15,985,174																		14,671,272
Stockholders' Equity			2,111,658																		1,956,532
Total Liabilities and Stockholders' Equity			$	18,096,832					145,809												$	16,627,804					19,745
Net Interest Income (FTE)									$	294,133																	$	242,845
Net Interest Spread (FTE) (4)															2.93		%																3.07		%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets															5.21		%																3.42		%
Interest Expense / Average Earning Assets															1.73		%																0.26		%
Net Interest Margin (FTE) (5)															3.48		%																3.16		%
(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 $12,179 and $11,904 for the six months ended June 30, 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																														Six Months Ended
			June 30,						March 31,						December 31,						September 30,						June 30,						June 30,						June 30,
			2023						2023						2022						2022						2022						2023						2022
Net Income Available to Common Stockholders - GAAP			$	60,393					$	63,610					$	70,292					$	63,283					$	38,522					$	124,003					$	87,108
Adjustments:
PPP loan income			(9)						(25)						(109)						(323)						(891)						(34)						(2,775)
Acquisition-related expenses			—						—						413						3,417						12,549						—						12,701
Acquisition-related provision expense			—						—						—						—						16,755						—						16,755
Tax on adjustment			2						6						(75)						(759)						(6,967)						8						(6,542)
Adjusted Net Income Available to Common Stockholders - Non-GAAP			$	60,386					$	63,591					$	70,521					$	65,618					$	59,968					$	123,977					$	107,247
Average Diluted Common Shares Outstanding (in thousands)			59,448						59,441						59,384						59,339						59,308						59,446						56,516
Diluted Earnings Per Common Share - GAAP			$	1.02					$	1.07					$	1.19					$	1.08					$	0.63					$	2.09					$	1.54
Adjustments:
PPP loan income			—						—						(0.01)						—						(0.01)						—						(0.05)
Acquisition-related expenses			—						—						0.01						0.05						0.22						—						0.22
Acquisition-related provision expense			—						—						—						—						0.30						—						0.30
Tax on adjustment			—						—						—						(0.01)						(0.13)						—						(0.12)
Adjusted Diluted Earnings Per Common Share - Non-GAAP			$	1.02					$	1.07					$	1.19					$	1.12					$	1.01					$	2.09					$	1.89

RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)			Three Months Ended																														Six Months Ended
			June 30,						March 31,						December 31,						September 30,						June 30,						June 30,						June 30,
			2023						2023						2022						2022						2022						2023						2022
Total Average Stockholders' Equity (GAAP)			$	2,139,877					$	2,083,125					$	1,958,041					$	2,018,156					$	2,021,123					$	2,111,658					$	1,956,532
Less: Average Preferred Stock			(25,125)						(25,125)						(25,125)						(25,125)						(25,125)						(25,125)						(12,625)
Less: Average Intangible Assets, Net of Tax			(737,489)						(739,190)						(741,632)						(744,069)						(745,614)						(738,334)						(656,042)
Average Tangible Common Equity, Net of Tax (Non-GAAP)			$	1,377,263					$	1,318,810					$	1,191,284					$	1,248,962					$	1,250,384					$	1,348,199					$	1,287,865
Net Income Available to Common Stockholders (GAAP)			$	60,393					$	63,610					$	70,292					$	63,283					$	38,521					$	124,003					$	87,108
Plus: Intangible Asset Amortization, Net of Tax			1,724						1,734						1,819						1,819						1,820						3,458						2,898
Tangible Net Income (Non-GAAP)			$	62,117					$	65,344					$	72,111					$	65,102					$	40,341					$	127,461					$	90,006
Return on Tangible Common Equity (Non-GAAP)			18.04		%				19.82		%				24.21		%				20.85		%				12.91		%				18.91		%				13.98		%