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

October 26, 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 THIRD QUARTER 2023 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME)

Third Quarter 2023 Highlights:

•    Net income available to common stockholders was $55.9 million and diluted earnings per common share totaled $0.94, compared to $63.3 million and $1.08 in the third quarter of 2022, and $60.4 million and $1.02 in the second quarter of 2023.

•    Strong capital position with Common Equity Tier 1 Capital Ratio of 11.26 percent.

•    Total loans grew $4.9 million, or 0.2 percent annualized on a linked quarter basis, and $743.6 million, or 6.4 percent during the last twelve months when excluding the impact of non-relationship based commercial loan sales that occurred during the prior quarter of $116.6 million.

•    Total deposits increased $65.4 million, or 1.8 percent annualized on a linked quarter basis, and $211.8 million, or 1.5 percent during the last twelve months.

•    Nonaccrual loans totaled $53.1 million compared to $69.2 million on a linked quarter basis.

•    The efficiency ratio totaled 53.91 percent for the quarter.

Mark Hardwick, Chief Executive Officer, stated, “First Merchants continued to deliver top quartile operating returns while tactically managing the inflationary, interest rate environment. Our teams are focused on meeting the demands of our customer base while planning for continued 2024 growth and performance.”

Third Quarter Financial Results:

First Merchants Corporation (the “Corporation) has reported third quarter 2023 net income available to common stockholders of $55.9 million compared to $63.3 million during the same period in 2022. Diluted earnings per common share for the period totaled $0.94 per share compared to the third quarter of 2022 result of $1.08 per 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 $743.6 million, or 6.4 percent and were offset by the non-relationship based commercial loan sale of $116.6 million. On a linked quarter basis, loans grew $4.9 million, or 0.2 percent.

Investments, totaling $3.7 billion, decreased $581.0 million, or 13.5 percent, during the last twelve months and decreased $177.8 million, or 18.3 percent annualized on a linked quarter basis. The decline during the quarter was due to $33.2 million of bond sales, $38.2 million of security paydowns and maturities, and the remainder was due to a decline in valuation of available for sale securities.

Total deposits equaled $14.6 billion as of quarter-end and increased by $211.8 million, or 1.5 percent, over the past twelve months. Total deposits increased $65.4 million, or 1.8 percent annualized on a linked quarter basis. During the quarter, commercial and consumer deposits increased $327.8 million which was offset by a reduction in brokered deposits of $133.6 million and municipal deposits of $128.8 million due to seasonality. The loan to deposit ratio declined slightly to 84.0 percent at period end from 84.3 percent in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $205.8 million as of quarter-end, or 1.67 percent of total loans, a decrease of $15.4 million from prior quarter. Loan charge-offs, net of recoveries, for the quarter totaled $20.4 million primarily due to the charge-off of a previously reported nonaccrual loan to a syndicated specialty finance company resulting from an apparent fraud that impacted our borrower's ability to repay. Net charge-offs were offset with provision expense for loans recorded during the quarter of $5.0 million. Reserves for unfunded commitments were reduced by $3.0 million during the quarter and now total $20.3 million. Net provision expense for the quarter totaled $2.0 million. Nonperforming assets to total assets were 0.33 percent for the third quarter of 2023, a decrease of 10 basis points compared to 0.43 percent in the prior quarter.

Net interest income, totaling $133.4 million for the quarter, declined $4.5 million, or 3.2 percent, compared to prior quarter and decreased $6.9 million, or 4.9 percent, compared to the third quarter of 2022. Stated net interest margin on a tax equivalent basis totaling 3.29 percent, declined by 10 basis points compared to the second quarter of 2023 and decreased 26 basis points compared to the third quarter of 2022. During the quarter, increased deposit costs and a continued change in deposit mix offset the increase in earning asset yields reducing net interest margin.

Noninterest income, totaling $27.8 million for the quarter, increased $1.5 million, or 5.8 percent, compared to the second quarter of 2023 but decreased $1.8 million from the third quarter of 2022. The increase over second quarter of 2023 was driven primarily by higher gains on the sales of loans.

Noninterest expense totaled $93.9 million for the quarter, an increase of $1.3 million from the second quarter of 2023. The increase was from higher marketing costs and salaries and employee benefits, partially offset by a decline in professional and other outside service fees.

The Corporation’s total risk-based capital ratio equaled 13.66 percent, common equity tier 1 capital ratio equaled 11.26 percent, and the tangible common equity ratio totaled 7.69 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a third quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, October 26, 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/BIf859606184ad4e98a66ef43d61469d2c)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/t8uajbb8) during the time of the call. A replay of the webcast will be available until October 26, 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)			September 30,
			2023						2022
ASSETS
Cash and due from banks			$	125,173					$	119,532
Interest-bearing deposits			348,639						179,593
Investment securities, net of allowance for credit losses of $245,000 and $245,000			3,713,724						4,294,768
Loans held for sale			30,972						25,394
Loans			12,271,422						11,650,002
Less: Allowance for credit losses - loans			(205,782)						(226,702)
Net loans			12,065,640						11,423,300
Premises and equipment			132,441						116,306
Federal Home Loan Bank stock			41,797						38,056
Interest receivable			90,011						71,605
Goodwill and other intangibles			741,283						750,713
Cash surrender value of life insurance			306,106						306,932
Other real estate owned			6,480						6,454
Tax asset, deferred and receivable			135,521						142,110
Other assets			258,861						244,222
TOTAL ASSETS			$	17,996,648					$	17,718,985
LIABILITIES
Deposits:
Noninterest-bearing			$	2,554,984					$	3,356,651
Interest-bearing			12,091,592						11,078,174
Total Deposits			14,646,576						14,434,825
Borrowings:
Federal funds purchased			—						185,000
Securities sold under repurchase agreements			152,537						194,482
Federal Home Loan Bank advances			713,384						643,769
Subordinated debentures and other borrowings			158,665						151,301
Total Borrowings			1,024,586						1,174,552
Interest payable			16,473						4,971
Other liabilities			216,369						197,971
Total Liabilities			15,904,004						15,812,319
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 - 59,398,022 and 59,145,414 shares			7,425						7,393
Additional paid-in capital			1,234,402						1,226,695
Retained earnings			1,132,962						961,542
Accumulated other comprehensive loss			(307,270)						(314,089)
Total Stockholders' Equity			2,092,644						1,906,666
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	17,996,648					$	17,718,985

CONSOLIDATED STATEMENTS OF INCOME			Three Months Ended												Nine Months Ended
(Dollars In Thousands, Except Per Share Amounts)			September 30,												September 30,
			2023						2022						2023						2022
INTEREST INCOME
Loans receivable:
Taxable			$	191,705					$	128,504					$	550,314					$	314,366
Tax-exempt			8,288						6,500						23,757						18,194
Investment securities:
Taxable			8,590						10,055						26,563						28,937
Tax-exempt			13,947						17,261						44,296						50,348
Deposits with financial institutions			5,884						704						9,685						1,544
Federal Home Loan Bank stock			719						314						2,281						635
Total Interest Income			229,133						163,338						656,896						414,024
INTEREST EXPENSE
Deposits			85,551						16,644						209,437						29,423
Federal funds purchased			—						418						1,420						494
Securities sold under repurchase agreements			797						372						2,624						595
Federal Home Loan Bank advances			6,896						3,493						20,775						6,485
Subordinated debentures and other borrowings			2,506						2,105						7,303						5,780
Total Interest Expense			95,750						23,032						241,559						42,777
NET INTEREST INCOME			133,383						140,306						415,337						371,247
Provision for credit losses			2,000						—						2,000						16,755
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			131,383						140,306						413,337						354,492
NONINTEREST INCOME
Service charges on deposit accounts			7,975						7,165						23,147						21,274
Fiduciary and wealth management fees			7,394						7,221						22,653						22,187
Card payment fees			4,716						4,776						14,425						15,674
Net gains and fees on sales of loans			5,517						2,543						11,548						7,968
Derivative hedge fees			516						700						2,336						3,062
Other customer fees			384						501						1,643						1,573
Earnings on cash surrender value of life insurance			1,761						6,655						5,145						9,659
Net realized gains (losses) on sales of available for sale securities			(1,650)						481						(4,613)						1,137
Other income (loss)			1,229						(425)						2,874						1,257
Total Noninterest Income			27,842						29,617						79,158						83,791
NONINTEREST EXPENSES
Salaries and employee benefits			55,566						56,002						167,778						154,562
Net occupancy			6,837						6,738						20,770						19,573
Equipment			5,698						5,997						18,005						17,797
Marketing			2,369						2,401						4,780						4,551
Outside data processing fees			6,573						6,827						19,290						16,071
Printing and office supplies			333						472						1,150						1,198
Intangible asset amortization			2,182						2,303						6,561						5,972
FDIC assessments			2,981						2,824						7,117						7,940
Other real estate owned and foreclosure expenses			677						328						1,575						626
Professional and other outside services			3,833						4,461						12,191						17,681
Other expenses			6,805						8,025						20,950						20,045
Total Noninterest Expenses			93,854						96,378						280,167						266,016
INCOME BEFORE INCOME TAX			65,371						73,545						212,328						172,267
Income tax expense			9,005						9,793						31,021						20,938
NET INCOME			56,366						63,752						181,307						151,329
Preferred stock dividends			468						469						1,406						938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS			$	55,898					$	63,283					$	179,901					$	150,391
Per Share Data:
Basic Net Income Available to Common Stockholders			$	0.95					$	1.08					$	3.04					$	2.63
Diluted Net Income Available to Common Stockholders			$	0.94					$	1.08					$	3.03					$	2.62
Cash Dividends Paid to Common Stockholders			$	0.34					$	0.32					$	1.00					$	0.93
Average Diluted Common Shares Outstanding (in thousands)			59,503						59,339						59,465						57,468

FINANCIAL HIGHLIGHTS
(Dollars in thousands)			Three Months Ended												Nine Months Ended
			September 30,												September 30,
			2023						2022						2023						2022
NET CHARGE-OFFS (RECOVERIES)			$	20,365					$	(427)					$	22,495					$	(751)
AVERAGE BALANCES:
Total Assets			$	18,152,239					$	17,770,623					$	18,115,504					$	17,012,930
Total Loans			12,287,632						11,488,203						12,264,787						10,647,950
Total Earning Assets			16,947,669						16,508,914						16,913,965						15,744,040
Total Deposits			14,735,592						14,577,532						14,627,448						14,074,696
Total Stockholders' Equity			2,154,232						2,018,156						2,126,005						1,977,299
FINANCIAL RATIOS:
Return on Average Assets			1.24		%				1.43		%				1.33		%				1.19		%
Return on Average Stockholders' Equity			10.38						12.54						11.28						10.14
Return on Tangible Common Stockholders' Equity			16.54						20.85						18.10						16.22
Average Earning Assets to Average Assets			93.36						92.90						93.37						92.54
Allowance for Credit Losses - Loans as % of Total Loans			1.67						1.94						1.67						1.94
Net Charge-offs as % of Average Loans (Annualized)			0.66						(0.01)						0.24						(0.01)
Average Stockholders' Equity to Average Assets			11.87						11.36						11.74						11.62
Tax Equivalent Yield on Average Earning Assets			5.55						4.11						5.32						3.66
Interest Expense/Average Earning Assets			2.26						0.56						1.90						0.36
Net Interest Margin (FTE) on Average Earning Assets			3.29						3.55						3.42						3.30
Efficiency Ratio			53.91						53.34						52.60						54.95
Tangible Common Book Value Per Share			$	22.43					$	19.26					$	22.43					$	19.26

NONPERFORMING ASSETS
(Dollars In Thousands)			September 30,						June 30,						March 31,						December 31,						September 30,
			2023						2023						2023						2022						2022
Nonaccrual Loans			$	53,102					$	69,240					$	46,576					$	42,324					$	43,508
Troubled Debt Restructures (TDR)			—						—						—						224						195
Nonperforming Loans (NPL)			53,102						69,240						46,576						42,548						43,703
Other Real Estate Owned and Repossessions			6,480						7,685						7,777						6,431						6,454
Nonperforming Assets (NPA)			59,582						76,925						54,353						48,979						50,157
90+ Days Delinquent			89						428						7,032						1,737						764
NPAs & 90 Day Delinquent			$	59,671					$	77,353					$	61,385					$	50,716					$	50,921
Allowance for Credit Losses - Loans			$	205,782					$	221,147					$	223,052					$	223,277					$	226,702
Quarterly Net Charge-offs (Recoveries)			20,365						1,905						225						2,674						(427)
NPAs / Actual Assets %			0.33		%				0.43		%				0.30		%				0.27		%				0.28		%
NPAs & 90 Day / Actual Assets %			0.33		%				0.43		%				0.34		%				0.28		%				0.29		%
NPAs / Actual Loans and OREO %			0.48		%				0.63		%				0.44		%				0.41		%				0.43		%
Allowance for Credit Losses - Loans / Actual Loans (%)			1.67		%				1.80		%				1.82		%				1.86		%				1.94		%
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)			0.66		%				0.06		%				0.01		%				0.12		%				(0.01)		%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)			September 30,						June 30,						March 31,						December 31,						September 30,
			2023						2023						2023						2022						2022
ASSETS
Cash and due from banks			$	125,173					$	108,975					$	125,818					$	122,594					$	119,532
Interest-bearing deposits			348,639						219,480						352,695						126,061						179,593
Investment securities, net of allowance for credit losses			3,713,724						3,891,491						4,057,389						4,263,788						4,294,768
Loans held for sale			30,972						27,297						9,408						9,094						25,394
Loans			12,271,422						12,270,233						12,241,461						12,003,894						11,650,002
Less: Allowance for credit losses - loans			(205,782)						(221,147)						(223,052)						(223,277)						(226,702)
Net loans			12,065,640						12,049,086						12,018,409						11,780,617						11,423,300
Premises and equipment			132,441						114,402						115,857						117,118						116,306
Federal Home Loan Bank stock			41,797						41,842						41,878						38,525						38,056
Interest receivable			90,011						89,784						85,515						85,070						71,605
Goodwill and other intangibles			741,283						743,465						745,647						747,844						750,713
Cash surrender value of life insurance			306,106						307,020						309,090						308,311						306,932
Other real estate owned			6,480						7,685						7,777						6,431						6,454
Tax asset, deferred and receivable			135,521						113,724						103,070						111,222						142,110
Other assets			258,861						254,161						206,355						221,631						244,222
TOTAL ASSETS			$	17,996,648					$	17,968,412					$	18,178,908					$	17,938,306					$	17,718,985
LIABILITIES
Deposits:
Noninterest-bearing			$	2,554,984					$	2,636,017					$	2,964,355					$	3,173,417					$	3,356,651
Interest-bearing			12,091,592						11,945,138						11,738,932						11,209,328						11,078,174
Total Deposits			14,646,576						14,581,155						14,703,287						14,382,745						14,434,825
Borrowings:
Federal funds purchased			—						—						20						171,560						185,000
Securities sold under repurchase agreements			152,537						152,472						179,067						167,413						194,482
Federal Home Loan Bank advances			713,384						723,480						823,577						823,674						643,769
Subordinated debentures and other borrowings			158,665						151,325						151,312						151,298						151,301
Total Borrowings			1,024,586						1,027,277						1,153,976						1,313,945						1,174,552
Interest payable			16,473						13,595						11,979						7,530						4,971
Other liabilities			216,369						200,820						187,218						199,316						197,971
Total Liabilities			15,904,004						15,822,847						16,056,460						15,903,536						15,812,319
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			7,425						7,412						7,407						7,396						7,393
Additional paid-in capital			1,234,402						1,233,593						1,231,532						1,228,626						1,226,695
Retained earnings			1,132,962						1,097,399						1,057,298						1,012,774						961,542
Accumulated other comprehensive loss			(307,270)						(217,964)						(198,914)						(239,151)						(314,089)
Total Stockholders' Equity			2,092,644						2,145,565						2,122,448						2,034,770						1,906,666
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	17,996,648					$	17,968,412					$	18,178,908					$	17,938,306					$	17,718,985

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)			September 30,						June 30,						March 31,						December 31,						September 30,
			2023						2023						2023						2022						2022
INTEREST INCOME
Loans receivable:
Taxable			$	191,705					$	186,256					$	172,353					$	156,102					$	128,504
Tax-exempt			8,288						7,760						7,709						6,930						6,500
Investment securities:
Taxable			8,590						8,886						9,087						9,417						10,055
Tax-exempt			13,947						14,279						16,070						17,033						17,261
Deposits with financial institutions			5,884						3,164						637						959						704
Federal Home Loan Bank stock			719						1,020						542						541						314
Total Interest Income			229,133						221,365						206,398						190,982						163,338
INTEREST EXPENSE
Deposits			85,551						73,201						50,685						33,516						16,644
Federal funds purchased			—						123						1,297						808						418
Securities sold under repurchase agreements			797						979						848						541						372
Federal Home Loan Bank advances			6,896						6,815						7,064						4,932						3,493
Subordinated debentures and other borrowings			2,506						2,412						2,385						2,229						2,105
Total Interest Expense			95,750						83,530						62,279						42,026						23,032
NET INTEREST INCOME			133,383						137,835						144,119						148,956						140,306
Provision for credit losses			2,000						—						—						—						—
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			131,383						137,835						144,119						148,956						140,306
NONINTEREST INCOME
Service charges on deposit accounts			7,975						7,813						7,359						7,097						7,165
Fiduciary and wealth management fees			7,394						7,397						7,862						7,501						7,221
Card payment fees			4,716						4,537						5,172						4,533						4,776
Net gains and fees on sales of loans			5,517						3,632						2,399						2,087						2,543
Derivative hedge fees			516						672						1,148						326						700
Other customer fees			384						742						517						362						501
Earnings on cash surrender value of life insurance			1,761						2,096						1,288						1,515						6,655
Net realized gains (losses) on sales of available for sale securities			(1,650)						(1,392)						(1,571)						57						481
Other income (loss)			1,229						822						823						672						(425)
Total Noninterest Income			27,842						26,319						24,997						24,150						29,617
NONINTEREST EXPENSES
Salaries and employee benefits			55,566						54,753						57,459						52,331						56,002
Net occupancy			6,837						6,674						7,259						6,638						6,738
Equipment			5,698						6,181						6,126						6,148						5,997
Marketing			2,369						1,102						1,309						3,157						2,401
Outside data processing fees			6,573						6,604						6,113						5,611						6,827
Printing and office supplies			333						434						383						390						472
Intangible asset amortization			2,182						2,182						2,197						2,303						2,303
FDIC assessments			2,981						2,740						1,396						2,295						2,824
Other real estate owned and foreclosure expenses			677						916						(18)						197						328
Professional and other outside services			3,833						4,660						3,698						3,961						4,461
Other expenses			6,805						6,347						7,798						6,668						8,025
Total Noninterest Expenses			93,854						92,593						93,720						89,699						96,378
INCOME BEFORE INCOME TAX			65,371						71,561						75,396						83,407						73,545
Income tax expense			9,005						10,699						11,317						12,647						9,793
NET INCOME			56,366						60,862						64,079						70,760						63,752
Preferred stock dividends			468						469						469						468						469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS			$	55,898					$	60,393					$	63,610					$	70,292					$	63,283
Per Share Data:
Basic Net Income Available to Common Stockholders			$	0.95					$	1.02					$	1.07					$	1.20					$	1.08
Diluted Net Income Available to Common Stockholders			$	0.94					$	1.02					$	1.07					$	1.19					$	1.08
Cash Dividends Paid to Common Stockholders			$	0.34					$	0.34					$	0.32					$	0.32					$	0.32
Average Diluted Common Shares Outstanding (in thousands)			59,503						59,448						59,441						59,384						59,339
FINANCIAL RATIOS:
Return on Average Assets			1.24		%				1.34		%				1.42		%				1.59		%				1.43		%
Return on Average Stockholders' Equity			10.38						11.29						12.21						14.36						12.54
Return on Tangible Common Stockholders' Equity			16.54						18.04						19.82						24.21						20.85
Average Earning Assets to Average Assets			93.36						93.38						93.35						93.66						92.90
Allowance for Credit Losses - Loans as % of Total Loans			1.67						1.80						1.82						1.86						1.94
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)			0.66						0.06						0.01						0.12						(0.01)
Average Stockholders' Equity to Average Assets			11.87						11.78						11.56						10.98						11.36
Tax Equivalent Yield on Average Earning Assets			5.55						5.36						5.06						4.73						4.11
Interest Expense/Average Earning Assets			2.26						1.97						1.48						1.01						0.56
Net Interest Margin (FTE) on Average Earning Assets			3.29						3.39						3.58						3.72						3.55
Efficiency Ratio			53.91						52.21						51.72						48.60						53.34
Tangible Common Book Value Per Share			$	22.43					$	23.34					$	22.93					$	21.45					$	19.26

LOANS
(Dollars In Thousands)			September 30,						June 30,						March 31,						December 31,						September 30,
			2023						2023						2023						2022						2022
Commercial and industrial loans			$	3,490,953					$	3,531,395					$	3,502,204					$	3,437,126					$	3,330,529
Agricultural land, production and other loans to farmers			233,838						230,003						219,598						241,793						221,954
Real estate loans:
Construction			1,022,261						949,918						960,979						835,582						828,923
Commercial real estate, non-owner occupied			2,360,596						2,379,819						2,375,410						2,407,475						2,299,272
Commercial real estate, owner occupied			1,153,707						1,179,739						1,244,117						1,246,528						1,268,567
Residential			2,257,385						2,248,473						2,185,943						2,096,655						1,990,668
Home equity			609,352						614,366						621,354						630,632						621,619
Individuals' loans for household and other personal expenditures			176,523						172,896						172,389						175,211						173,225
Public finance and other commercial loans			966,807						963,624						959,467						932,892						915,245
Loans			12,271,422						12,270,233						12,241,461						12,003,894						11,650,002
Allowance for credit losses - loans			(205,782)						(221,147)						(223,052)						(223,277)						(226,702)
NET LOANS			$	12,065,640					$	12,049,086					$	12,018,409					$	11,780,617					$	11,423,300

DEPOSITS
(Dollars In Thousands)			September 30,						June 30,						March 31,						December 31,						September 30,
			2023						2023						2023						2022						2022
Demand deposits			$	7,952,040					$	8,045,455					$	8,422,387					$	8,448,797					$	8,534,950
Savings deposits			4,572,162						4,530,255						4,499,487						4,657,140						5,054,490
Certificates and other time deposits of $100,000 or more			1,280,607						1,160,303						1,040,379						742,539						443,588
Other certificates and time deposits			761,196						680,965						574,886						468,712						381,365
Brokered certificates of deposits			80,571						164,177						166,148						65,557						20,432
TOTAL DEPOSITS			$	14,646,576					$	14,581,155					$	14,703,287					$	14,382,745					$	14,434,825

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
			For the Three Months Ended
			September 30, 2023																		September 30, 2022
			Average Balance						Interest  Income / Expense						Average Rate						Average Balance						Interest  Income / Expense						Average Rate
ASSETS
Interest-bearing deposits			$	502,967					$	5,884					4.68		%				$	190,434					$	704					1.48		%
Federal Home Loan Bank stock			41,826						719						6.88						38,089						314						3.30
Investment Securities: (1)
Taxable			1,817,219						8,590						1.89						2,091,608						10,055						1.92
Tax-exempt (2)			2,298,025						17,655						3.07						2,700,580						21,849						3.24
Total Investment Securities			4,115,244						26,245						2.55						4,792,188						31,904						2.66
Loans held for sale			24,227						386						6.37						20,039						266						5.74
Loans: (3)
Commercial			8,456,527						153,993						7.28						8,177,895						103,227						5.05
Real estate mortgage			2,079,067						21,618						4.16						1,666,173						14,701						3.53
Installment			827,318						15,708						7.59						813,112						10,310						5.07
Tax-exempt (2)			900,493						10,491						4.66						810,984						8,228						4.06
Total Loans			12,287,632						202,196						6.58						11,488,203						136,732						4.76
Total Earning Assets			16,947,669						235,044						5.55		%				16,508,914						169,654						4.11		%
Total Non-Earning Assets			1,204,570																		1,261,709
TOTAL ASSETS			$	18,152,239																	$	17,770,623
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits			$	5,425,829					$	37,780					2.79		%				$	5,184,087					$	8,723					0.67		%
Money market deposits			2,923,798						23,607						3.23						3,096,423						5,390						0.70
Savings deposits			1,641,338						3,844						0.94						1,978,596						1,538						0.31
Certificates and other time deposits			2,106,910						20,320						3.86						857,033						993						0.46
Total Interest-Bearing Deposits			12,097,875						85,551						2.83						11,116,139						16,644						0.60
Borrowings			1,032,180						10,199						3.95						1,013,893						6,388						2.52
Total Interest-Bearing Liabilities			13,130,055						95,750						2.92						12,130,032						23,032						0.76
Noninterest-bearing deposits			2,637,717																		3,461,393
Other liabilities			230,235																		161,042
Total Liabilities			15,998,007																		15,752,467
STOCKHOLDERS' EQUITY			2,154,232																		2,018,156
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	18,152,239					95,750												$	17,770,623					23,032
Net Interest Income (FTE)									$	139,294																	$	146,622
Net Interest Spread (FTE) (4)															2.63		%																3.35		%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets															5.55		%																4.11		%
Interest Expense / Average Earning Assets															2.26		%																0.56		%
Net Interest Margin (FTE) (5)															3.29		%																3.55		%
(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 $5,911 and $6.316 for the three months ended September 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 Nine Months Ended
			September 30, 2023																		September 30, 2022
			Average Balance						Interest  Income / Expense						Average Rate						Average Balance						Interest  Income / Expense						Average Rate
Assets:
Interest-bearing deposits			$	340,887					$	9,685					3.79		%				$	333,818					$	1,544					0.62		%
Federal Home Loan Bank stock			41,160						2,281						7.39						34,742						635						2.44
Investment Securities: (1)
Taxable			1,872,267						26,563						1.89						2,079,983						28,937						1.85
Tax-exempt (2)			2,394,864						56,071						3.12						2,647,547						63,732						3.21
Total Investment Securities			4,267,131						82,634						2.58						4,727,530						92,669						2.61
Loans held for sale			22,398						1,046						6.23						19,020						622						4.36
Loans: (3)
Commercial			8,515,148						444,422						6.96						7,731,591						253,770						4.38
Real estate mortgage			2,008,852						60,354						4.01						1,350,969						35,199						3.47
Installment			833,133						44,492						7.12						765,960						24,775						4.31
Tax-exempt (2)			885,256						30,072						4.53						780,410						23,030						3.93
Total Loans			12,264,787						580,386						6.31						10,647,950						337,396						4.22
Total Earning Assets			16,913,965						674,986						5.32		%				15,744,040						432,244						3.66		%
Total Non-Earning Assets			1,201,539																		1,268,890
Total Assets			$	18,115,504																	$	17,012,930
Liabilities:
Interest-Bearing deposits:
Interest-bearing deposits			$	5,412,482					$	97,016					2.39		%				$	5,195,249					$	15,699					0.40		%
Money market deposits			2,812,891						55,868						2.65						2,880,603						8,392						0.39
Savings deposits			1,730,110						10,693						0.82						1,937,761						2,895						0.20
Certificates and other time deposits			1,821,408						45,860						3.36						828,158						2,437						0.39
Total Interest-Bearing Deposits			11,776,891						209,437						2.37						10,841,771						29,423						0.36
Borrowings			1,144,368						32,122						3.74						817,894						13,354						2.18
Total Interest-Bearing Liabilities			12,921,259						241,559						2.49						11,659,665						42,777						0.49
Noninterest-bearing deposits			2,850,557																		3,232,925
Other liabilities			217,683																		143,041
Total Liabilities			15,989,499																		15,035,631
Stockholders' Equity			2,126,005																		1,977,299
Total Liabilities and Stockholders' Equity			$	18,115,504					241,559												$	17,012,930					42,777
Net Interest Income (FTE)									$	433,427																	$	389,467
Net Interest Spread (FTE) (4)															2.83		%																3.17		%
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets															5.32		%																3.66		%
Interest Expense / Average Earning Assets															1.90		%																0.36		%
Net Interest Margin (FTE) (5)															3.42		%																3.30		%
(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 $18,090 and $18,220 for the nine months ended September 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																														Nine Months Ended
			September 30,						June 30,						March 31,						December 31,						September 30,						September 30,						September 30,
			2023						2023						2023						2022						2022						2023						2022
Net Income Available to Common Stockholders - GAAP			$	55,898					$	60,393					$	63,610					$	70,292					$	63,283					$	179,901					$	150,391
Adjustments:
PPP loan income			(8)						(9)						(25)						(109)						(323)						(42)						(3,098)
Acquisition-related expenses			—						—						—						413						3,417						—						16,118
Acquisition-related provision expense			—						—						—						—						—						—						16,755
Tax on adjustment			2						2						6						(75)						(759)						10						(7,301)
Adjusted Net Income Available to Common Stockholders - Non-GAAP			$	55,892					$	60,386					$	63,591					$	70,521					$	65,618					$	179,869					$	172,865
Average Diluted Common Shares Outstanding (in thousands)			59,503						59,448						59,441						59,384						59,339						59,465						57,468
Diluted Earnings Per Common Share - GAAP			$	0.94					$	1.02					$	1.07					$	1.19					$	1.08					$	3.03					$	2.62
Adjustments:
PPP loan income			—						—						—						(0.01)						—						—						(0.05)
Acquisition-related expenses			—						—						—						0.01						0.05						—						0.27
Acquisition-related provision expense			—						—						—						—						—						—						0.30
Tax on adjustment			—						—						—						—						(0.01)						—						(0.13)
Adjusted Diluted Earnings Per Common Share - Non-GAAP			$	0.94					$	1.02					$	1.07					$	1.19					$	1.12					$	3.03					$	3.01

RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)			Three Months Ended																														Nine Months Ended
			September 30,						June 30,						March 31,						December 31,						September 30,						September 30,						September 30,
			2023						2023						2023						2022						2022						2023						2022
Total Average Stockholders' Equity (GAAP)			$	2,154,232					$	2,139,877					$	2,083,125					$	1,958,041					$	2,018,156					$	2,126,005					$	1,977,299
Less: Average Preferred Stock			(25,125)						(25,125)						(25,125)						(25,125)						(25,125)						(25,125)						(16,792)
Less: Average Intangible Assets, Net of Tax			(735,787)						(737,489)						(739,190)						(741,632)						(744,069)						(737,476)						(685,707)
Average Tangible Common Equity, Net of Tax (Non-GAAP)			$	1,393,320					$	1,377,263					$	1,318,810					$	1,191,284					$	1,248,962					$	1,363,404					$	1,274,800
Net Income Available to Common Stockholders (GAAP)			$	55,898					$	60,393					$	63,610					$	70,292					$	63,283					$	179,901					$	150,391
Plus: Intangible Asset Amortization, Net of Tax			1,724						1,724						1,734						1,819						1,819						5,182						4,718
Tangible Net Income (Non-GAAP)			$	57,622					$	62,117					$	65,344					$	72,111					$	65,102					$	185,083					$	155,109
Return on Tangible Common Equity (Non-GAAP)			16.54		%				18.04		%				19.82		%				24.21		%				20.85		%				18.10		%				16.22		%