N / E / W / S R / E / L / E / A / S / E
    
January 25, 2024

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 FOURTH QUARTER 2023 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME)

Fourth Quarter 2023 Highlights:

•    Net income available to common stockholders was $42.0 million and diluted earnings per common share totaled $0.71 compared to $70.3 million and $1.19 in the fourth quarter of 2022, and $55.9 million and $0.94 in the third quarter of 2023. Net income and diluted earnings per common share, excluding one-time charges of $12.7 million incurred during the quarter, totaled $51.6 million and $0.87, respectively.
•    Strong capital position with Common Equity Tier 1 Capital Ratio of 11.35 percent.
•    Total loans grew $202.6 million, or 6.6 percent annualized on a linked quarter basis, and $608.6 million, or 5.1 percent during the last twelve months when excluding the impact of a non-relationship commercial loan portfolio sale of $116.6 million that occurred during the second quarter.
•    Total deposits increased $174.9 million, or 4.8 percent annualized on a linked quarter basis, and $438.7 million, or 3.1 percent during the last twelve months.
•    Nonaccrual loans totaled $53.6 million compared to $53.1 million on a linked quarter basis.
•    The efficiency ratio totaled 63.26 percent for the quarter and 55.56% excluding $12.7 million of one-time charges incurred during the quarter.

Mark Hardwick, Chief Executive Officer, stated, "During a year where safety and soundness became the highest priority of stakeholders, we are very pleased with the positioning of our balance sheet. The Bank’s liquidity position improved by $585 million as cash increased by $300 million and borrowings declined by $285 million year over year. Our tangible common equity increased by $222 million driving our tangible common equity ratio from 7.37 percent to 8.44 percent and the allowance to loans continues to be top decile totaling 1.64 percent." Hardwick added, "Our team built this resilient balance sheet while also producing core loan growth of just over 5 percent and deposit growth of 3 percent. In a year with large bank failures, our company produced solid results with net income totaling $222 million, a strong ROA of 1.23%, and an efficiency ratio of 55%. These results are without any adjustments for one-time charges totaling $12.7 million which were incurred in the fourth quarter. The actions taken during the quarter to reduce costs will lead to an even more efficient franchise in 2024."

Fourth Quarter Financial Results:

First Merchants Corporation (the “Corporation) has reported fourth quarter 2023 net income available to common stockholders of $42.0 million compared to $70.3 million during the same period in 2022. Diluted earnings per common share for the period totaled $0.71 per share compared to the fourth quarter of 2022 result of $1.19 per share. The corporation incurred $12.7 million of one-time charges during the quarter including $4.3 million from an FDIC special assessment, $6.3 million from employee early retirement and severance costs, and $2.1 million from a lease termination.

Total assets equaled $18.3 billion as of quarter-end and loans totaled $12.5 billion. During the past twelve months, total loans grew by $608.6 million, or 5.1 percent and were offset by a non-relationship based commercial loan sale of $116.6 million that occurred in the second quarter. On a linked quarter basis, loans grew $202.6 million, or 6.6 percent annualized.





Investments securities, totaling $3.8 billion, decreased $452.4 million, or 10.6 percent, during the last twelve months and increased $97.6 million, or 10.5 percent annualized on a linked quarter basis. The increase during the fourth quarter was due to a $163.1 million increase in value of available for sale securities offset by bond sales of $43.3 million and security paydowns and maturities.

Total deposits equaled $14.8 billion as of quarter-end and increased by $438.7 million, or 3.1 percent, over the past twelve months. Total deposits increased $174.9 million, or 4.8 percent annualized on a linked quarter basis. During the quarter, customer deposits increased $280.0 million which was offset by a reduction in brokered deposits of $105.1 million. The loan to deposit ratio increased slightly to 84.4 percent at period end from 84.0 percent in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $204.9 million as of quarter-end, or 1.64 percent of total loans, a decrease of $0.8 million from prior quarter. Loan charge-offs, net of recoveries, for the quarter totaled $3.1 million. Net charge-offs were offset with provision expense for loans recorded during the quarter of $2.3 million. Reserves for unfunded commitments totaling $19.5 million declined during the quarter due to reserve release of $0.8 million. Net provision expense for the quarter totaled $1.5 million. Non-performing assets to total assets were 0.32 percent for the fourth quarter of 2023, a decrease of one basis point compared to 0.33 percent in the prior quarter.

Net interest income, totaling $130.1 million for the quarter, declined $3.3 million, or 2.5 percent, compared to prior quarter and decreased $18.9 million, or 12.7 percent, compared to the fourth quarter of 2022. Stated net-interest margin on a tax equivalent basis totaling 3.16 percent, declined by 13 basis points compared to the third quarter of 2023 and decreased 56 basis points compared to the fourth 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 $26.4 million for the quarter, decreased $1.4 million, or 5.0 percent, compared to the third quarter of 2023 but increased $2.3 million from the fourth quarter of 2022. The decrease from third quarter of 2023 was driven by lower gains on the sales of loans, higher realized losses on the sales of securities, and a negative valuation adjustment related to CRA investments. These declines were somewhat offset by an increase in fiduciary and wealth management fees and gains on bank-owned life insurance.

Noninterest expense totaled $108.1 million for the quarter, an increase of $14.2 million from the third quarter of 2023. The increase was from higher credit-related expenses and one-time charges totaling $12.7 million as described above.

The Corporation’s total risk-based capital ratio equaled 13.67 percent, common equity tier 1 capital ratio equaled 11.35 percent, and the tangible common equity ratio totaled 8.44 percent, which was an increase of 75 basis points from prior quarter. These ratios continue to demonstrate the Corporation’s strong capital and liquidity position.





CONFERENCE CALL

First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, January 25, 2024.

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/BIed9b1a3a96754f9abe7b067d12fe2826)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/9hsczd2t) during the time of the call. A replay of the webcast will be available until January 25, 2025.

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)December 31,
20232022
ASSETS
Cash and due from banks$112,649 $122,594 
Interest-bearing deposits436,080 126,061 
Investment securities, net of allowance for credit losses of $245,000 and $245,0003,811,364 4,263,788 
Loans held for sale18,934 9,094 
Loans12,486,027 12,003,894 
Less: Allowance for credit losses - loans(204,934)(223,277)
Net loans12,281,093 11,780,617 
Premises and equipment133,896 117,118 
Federal Home Loan Bank stock41,769 38,525 
Interest receivable97,664 85,070 
Goodwill and other intangibles739,101 747,844 
Cash surrender value of life insurance306,301 308,311 
Other real estate owned4,831 6,431 
Tax asset, deferred and receivable99,883 111,222 
Other assets225,914 221,631 
TOTAL ASSETS$18,309,479 $17,938,306 
LIABILITIES
Deposits:
Noninterest-bearing$2,500,062 $3,173,417 
Interest-bearing12,321,391 11,209,328 
Total Deposits14,821,453 14,382,745 
Borrowings:
Federal funds purchased— 171,560 
Securities sold under repurchase agreements157,280 167,413 
Federal Home Loan Bank advances712,852 823,674 
Subordinated debentures and other borrowings158,644 151,298 
Total Borrowings1,028,776 1,313,945 
Interest payable18,912 7,530 
Other liabilities192,625 199,316 
Total Liabilities16,061,766 15,903,536 
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares125 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 shares25,000 25,000 
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 59,424,122 and 59,170,583 shares7,428 7,396 
Additional paid-in capital1,236,506 1,228,626 
Retained earnings1,154,624 1,012,774 
Accumulated other comprehensive income (loss)(175,970)(239,151)
Total Stockholders' Equity2,247,713 2,034,770 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,309,479 $17,938,306 







CONSOLIDATED STATEMENTS OF INCOMEThree Months EndedTwelve Months Ended
(Dollars In Thousands, Except Per Share Amounts)December 31.December 31.
2023202220232022
INTEREST INCOME
Loans receivable:
Taxable$197,523 $156,102 $747,837 $470,468 
Tax-exempt8,197 6,930 31,954 25,124 
Investment securities:
Taxable8,644 9,417 35,207 38,354 
Tax-exempt13,821 17,033 58,117 67,381 
Deposits with financial institutions8,034 959 17,719 2,503 
Federal Home Loan Bank stock771 541 3,052 1,176 
Total Interest Income236,990 190,982 893,886 605,006 
INTEREST EXPENSE
Deposits96,655 33,516 306,092 62,939 
Federal funds purchased1 808 1,421 1,302 
Securities sold under repurchase agreements827 541 3,451 1,136 
Federal Home Loan Bank advances6,431 4,932 27,206 11,417 
Subordinated debentures and other borrowings3,013 2,229 10,316 8,009 
Total Interest Expense106,927 42,026 348,486 84,803 
NET INTEREST INCOME130,063 148,956 545,400 520,203 
Provision for credit losses1,500 — 3,500 16,755 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES128,563 148,956 541,900 503,448 
NONINTEREST INCOME
Service charges on deposit accounts7,690 7,097 30,837 28,371 
Fiduciary and wealth management fees8,187 7,501 30,840 29,688 
Card payment fees4,437 4,533 18,862 20,207 
Net gains and fees on sales of loans4,111 2,087 15,659 10,055 
Derivative hedge fees1,049 326 3,385 3,388 
Other customer fees237 362 1,880 1,935 
Earnings on cash surrender value of life insurance3,202 1,515 8,347 11,174 
Net realized gains (losses) on sales of available for sale securities(2,317)57 (6,930)1,194 
Other income (loss)(152)672 2,722 1,929 
Total Noninterest Income26,444 24,150 105,602 107,941 
NONINTEREST EXPENSES
Salaries and employee benefits60,967 52,331 228,745 206,893 
Net occupancy9,089 6,638 29,859 26,211 
Equipment6,108 6,148 24,113 23,945 
Marketing2,647 3,157 7,427 7,708 
Outside data processing fees5,875 5,611 25,165 21,682 
Printing and office supplies402 390 1,552 1,588 
Intangible asset amortization2,182 2,303 8,743 8,275 
FDIC assessments7,557 2,295 14,674 10,235 
Other real estate owned and foreclosure expenses1,743 197 3,318 823 
Professional and other outside services3,981 3,961 16,172 21,642 
Other expenses7,552 6,668 28,502 26,713 
Total Noninterest Expenses108,103 89,699 388,270 355,715 
INCOME BEFORE INCOME TAX46,904 83,407 259,232 255,674 
Income tax expense4,425 12,647 35,446 33,585 
NET INCOME42,479 70,760 223,786 222,089 
Preferred stock dividends469 468 1,875 1,406 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$42,010 $70,292 $221,911 $220,683 
Per Share Data:
Basic Net Income Available to Common Stockholders$0.71 $1.20 $3.74 $3.83 
Diluted Net Income Available to Common Stockholders$0.71 $1.19 $3.73 $3.81 
Cash Dividends Paid to Common Stockholders$0.34 $0.32 $1.34 $1.25 
Average Diluted Common Shares Outstanding (in thousands)59,556 59,384 59,489 57,950 




FINANCIAL HIGHLIGHTS
(Dollars in thousands)Three Months EndedTwelve Months Ended
December 31,December 31,
2023202220232022
NET CHARGE-OFFS (RECOVERIES)$3,148 $3,425 $25,643 $2,674 
AVERAGE BALANCES:
Total Assets$18,397,200 $17,834,468 $18,186,507 $17,220,002 
Total Loans12,396,451 11,818,911 12,297,974 10,943,051 
Total Earning Assets17,222,714 16,702,944 16,991,787 15,985,691 
Total Deposits15,000,580 14,564,853 14,721,498 14,198,243 
Total Stockholders' Equity2,130,993 1,958,041 2,127,262 1,972,445 
FINANCIAL RATIOS:
Return on Average Assets0.92 %1.59 %1.23 %1.29 %
Return on Average Stockholders' Equity7.89 14.36 10.43 11.19 
Return on Tangible Common Stockholders' Equity12.75 24.21 16.76 18.12 
Average Earning Assets to Average Assets93.62 93.66 93.43 92.83 
Allowance for Credit Losses - Loans as % of Total Loans1.64 1.86 1.64 1.86 
Net Charge-offs as % of Average Loans (Annualized)0.10 0.12 0.21 0.02 
Average Stockholders' Equity to Average Assets11.58 10.98 11.70 11.45 
Tax Equivalent Yield on Average Earning Assets5.64 4.73 5.40 3.94 
Interest Expense/Average Earning Assets2.48 1.01 2.05 0.53 
Net Interest Margin (FTE) on Average Earning Assets3.16 3.72 3.35 3.41 
Efficiency Ratio63.26 48.60 55.17 53.20 
Tangible Common Book Value Per Share$25.06 $21.45 $25.06 $21.45 

NONPERFORMING ASSETS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20232023202320232022
Nonaccrual Loans$53,580 $53,102 $69,240 $46,576 $42,324 
Troubled Debt Restructures (TDR)— — — — 224 
Nonperforming Loans (NPL)53,580 53,102 69,240 46,576 42,548 
Other Real Estate Owned and Repossessions4,831 6,480 7,685 7,777 6,431 
Nonperforming Assets (NPA)58,411 59,582 76,925 54,353 48,979 
90+ Days Delinquent172 89 428 7,032 1,737 
NPAs & 90 Day Delinquent$58,583 $59,671 $77,353 $61,385 $50,716 
Allowance for Credit Losses - Loans$204,934 $205,782 $221,147 $223,052 $223,277 
Quarterly Net Charge-offs3,148 20,365 1,905 225 2,674 
NPAs / Actual Assets %0.32 %0.33 %0.43 %0.30 %0.27 %
NPAs & 90 Day / Actual Assets %0.32 %0.33 %0.43 %0.34 %0.28 %
NPAs / Actual Loans and OREO %0.47 %0.48 %0.63 %0.44 %0.41 %
Allowance for Credit Losses - Loans / Actual Loans (%)1.64 %1.67 %1.80 %1.82 %1.86 %
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)0.10 %0.66 %0.06 %0.01 %0.12 %




CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20232023202320232022
ASSETS
Cash and due from banks$112,649 $125,173 $108,975 $125,818 $122,594 
Interest-bearing deposits436,080 348,639 219,480 352,695 126,061 
Investment securities, net of allowance for credit losses3,811,364 3,713,724 3,891,491 4,057,389 4,263,788 
Loans held for sale18,934 30,972 27,297 9,408 9,094 
Loans12,486,027 12,271,422 12,270,233 12,241,461 12,003,894 
Less: Allowance for credit losses - loans(204,934)(205,782)(221,147)(223,052)(223,277)
Net loans12,281,093 12,065,640 12,049,086 12,018,409 11,780,617 
Premises and equipment133,896 132,441 114,402 115,857 117,118 
Federal Home Loan Bank stock41,769 41,797 41,842 41,878 38,525 
Interest receivable97,664 90,011 89,784 85,515 85,070 
Goodwill and other intangibles739,101 741,283 743,465 745,647 747,844 
Cash surrender value of life insurance306,301 306,106 307,020 309,090 308,311 
Other real estate owned4,831 6,480 7,685 7,777 6,431 
Tax asset, deferred and receivable99,883 135,521 113,724 103,070 111,222 
Other assets225,914 258,861 254,161 206,355 221,631 
TOTAL ASSETS$18,309,479 $17,996,648 $17,968,412 $18,178,908 $17,938,306 
LIABILITIES
Deposits:
Noninterest-bearing$2,500,062 $2,554,984 $2,636,017 $2,964,355 $3,173,417 
Interest-bearing12,321,391 12,091,592 11,945,138 11,738,932 11,209,328 
Total Deposits14,821,453 14,646,576 14,581,155 14,703,287 14,382,745 
Borrowings:
Federal funds purchased— — — 20 171,560 
Securities sold under repurchase agreements157,280 152,537 152,472 179,067 167,413 
Federal Home Loan Bank advances712,852 713,384 723,480 823,577 823,674 
Subordinated debentures and other borrowings158,644 158,665 151,325 151,312 151,298 
Total Borrowings1,028,776 1,024,586 1,027,277 1,153,976 1,313,945 
Interest payable18,912 16,473 13,595 11,979 7,530 
Other liabilities192,625 216,369 200,820 187,218 199,316 
Total Liabilities16,061,766 15,904,004 15,822,847 16,056,460 15,903,536 
STOCKHOLDERS' EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized -- 600 cumulative shares
Issued and outstanding - 125 cumulative shares125 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 shares25,000 25,000 25,000 25,000 25,000 
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding7,428 7,425 7,412 7,407 7,396 
Additional paid-in capital1,236,506 1,234,402 1,233,593 1,231,532 1,228,626 
Retained earnings1,154,624 1,132,962 1,097,399 1,057,298 1,012,774 
Accumulated other comprehensive loss(175,970)(307,270)(217,964)(198,914)(239,151)
Total Stockholders' Equity2,247,713 2,092,644 2,145,565 2,122,448 2,034,770 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,309,479 $17,996,648 $17,968,412 $18,178,908 $17,938,306 








CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)December 31,September 30,June 30,March 31,December 31,
20232023202320232022
INTEREST INCOME
Loans receivable:
Taxable$197,523 $191,705 $186,256 $172,353 $156,102 
Tax-exempt8,197 8,288 7,760 7,709 6,930 
Investment securities:
Taxable8,644 8,590 8,886 9,087 9,417 
Tax-exempt13,821 13,947 14,279 16,070 17,033 
Deposits with financial institutions8,034 5,884 3,164 637 959 
Federal Home Loan Bank stock771 719 1,020 542 541 
Total Interest Income236,990 229,133 221,365 206,398 190,982 
INTEREST EXPENSE
Deposits96,655 85,551 73,201 50,685 33,516 
Federal funds purchased1 — 123 1,297 808 
Securities sold under repurchase agreements827 797 979 848 541 
Federal Home Loan Bank advances6,431 6,896 6,815 7,064 4,932 
Subordinated debentures and other borrowings3,013 2,506 2,412 2,385 2,229 
Total Interest Expense106,927 95,750 83,530 62,279 42,026 
NET INTEREST INCOME130,063 133,383 137,835 144,119 148,956 
Provision for credit losses1,500 2,000 — — — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES128,563 131,383 137,835 144,119 148,956 
NONINTEREST INCOME
Service charges on deposit accounts7,690 7,975 7,813 7,359 7,097 
Fiduciary and wealth management fees8,187 7,394 7,397 7,862 7,501 
Card payment fees4,437 4,716 4,537 5,172 4,533 
Net gains and fees on sales of loans4,111 5,517 3,632 2,399 2,087 
Derivative hedge fees1,049 516 672 1,148 326 
Other customer fees237 384 742 517 362 
Earnings on cash surrender value of life insurance3,202 1,761 2,096 1,288 1,515 
Net realized gains (losses) on sales of available for sale securities(2,317)(1,650)(1,392)(1,571)57 
Other income (loss)(152)1,229 822 823 672 
Total Noninterest Income26,444 27,842 26,319 24,997 24,150 
NONINTEREST EXPENSES
Salaries and employee benefits60,967 55,566 54,753 57,459 52,331 
Net occupancy9,089 6,837 6,674 7,259 6,638 
Equipment6,108 5,698 6,181 6,126 6,148 
Marketing2,647 2,369 1,102 1,309 3,157 
Outside data processing fees5,875 6,573 6,604 6,113 5,611 
Printing and office supplies402 333 434 383 390 
Intangible asset amortization2,182 2,182 2,182 2,197 2,303 
FDIC assessments7,557 2,981 2,740 1,396 2,295 
Other real estate owned and foreclosure expenses1,743 677 916 (18)197 
Professional and other outside services3,981 3,833 4,660 3,698 3,961 
Other expenses7,552 6,805 6,347 7,798 6,668 
Total Noninterest Expenses108,103 93,854 92,593 93,720 89,699 
INCOME BEFORE INCOME TAX46,904 65,371 71,561 75,396 83,407 
Income tax expense4,425 9,005 10,699 11,317 12,647 
NET INCOME42,479 56,366 60,862 64,079 70,760 
Preferred stock dividends469 468 469 469 468 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$42,010 $55,898 $60,393 $63,610 $70,292 
Per Share Data:
Basic Net Income Available to Common Stockholders$0.71 $0.95 $1.02 $1.07 $1.20 
Diluted Net Income Available to Common Stockholders$0.71 $0.94 $1.02 $1.07 $1.19 
Cash Dividends Paid to Common Stockholders$0.34 $0.34 $0.34 $0.32 $0.32 
Average Diluted Common Shares Outstanding (in thousands)59,556 59,503 59,448 59,441 59,384 
FINANCIAL RATIOS:
Return on Average Assets0.92 %1.24 %1.34 %1.42 %1.59 %
Return on Average Stockholders' Equity7.89 10.38 11.29 12.21 14.36 
Return on Tangible Common Stockholders' Equity12.75 16.54 18.04 19.82 24.21 
Average Earning Assets to Average Assets93.62 93.36 93.38 93.35 93.66 
Allowance for Credit Losses - Loans as % of Total Loans1.64 1.67 1.80 1.82 1.86 
Net Charge-offs as % of Average Loans (Annualized)0.10 0.66 0.06 0.01 0.12 
Average Stockholders' Equity to Average Assets11.58 11.87 11.78 11.56 10.98 
Tax Equivalent Yield on Average Earning Assets5.64 5.55 5.36 5.06 4.73 
Interest Expense/Average Earning Assets2.48 2.26 1.97 1.48 1.01 
Net Interest Margin (FTE) on Average Earning Assets3.16 3.29 3.39 3.58 3.72 
Efficiency Ratio63.26 53.91 52.21 51.72 48.60 
Tangible Common Book Value Per Share$25.06 $22.43 $23.34 $22.93 $21.45 




LOANS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20232023202320232022
Commercial and industrial loans$3,670,948 $3,490,953 $3,531,395 $3,502,204 $3,437,126 
Agricultural land, production and other loans to farmers263,414 233,838 230,003 219,598 241,793 
Real estate loans:
Construction957,545 1,022,261 949,918 960,979 835,582 
Commercial real estate, non-owner occupied2,400,839 2,360,596 2,379,819 2,375,410 2,407,475 
Commercial real estate, owner occupied1,162,083 1,153,707 1,179,739 1,244,117 1,246,528 
Residential2,288,921 2,257,385 2,248,473 2,185,943 2,096,655 
Home equity617,571 609,352 614,366 621,354 630,632 
Individuals' loans for household and other personal expenditures168,388 176,523 172,896 172,389 175,211 
Public finance and other commercial loans956,318 966,807 963,624 959,467 932,892 
Loans12,486,027 12,271,422 12,270,233 12,241,461 12,003,894 
Allowance for credit losses - loans(204,934)(205,782)(221,147)(223,052)(223,277)
NET LOANS$12,281,093 $12,065,640 $12,049,086 $12,018,409 $11,780,617 

DEPOSITS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20232023202320232022
Demand deposits$7,965,862 $7,952,040 $8,045,455 $8,422,387 $8,448,797 
Savings deposits4,516,433 4,572,162 4,530,255 4,499,487 4,657,140 
Certificates and other time deposits of $100,000 or more1,408,985 1,280,607 1,160,303 1,040,379 742,539 
Other certificates and time deposits849,906 761,196 680,965 574,886 468,712 
Brokered certificates of deposits80,267 80,571 164,177 166,148 65,557 
TOTAL DEPOSITS$14,821,453 $14,646,576 $14,581,155 $14,703,287 $14,382,745 





CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Three Months Ended
December 31, 2023December 31, 2022
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
ASSETS
Interest-bearing deposits$700,705 $8,034 4.59 %$187,204 $959 2.05 %
Federal Home Loan Bank stock41,792 771 7.38 38,066 541 5.68 
Investment Securities: (1)
Taxable1,801,533 8,644 1.92 1,987,161 9,417 1.90 
Tax-exempt (2)
2,282,233 17,495 3.07 2,671,602 21,561 3.23 
Total Investment Securities4,083,766 26,139 2.56 4,658,763 30,978 2.66 
Loans held for sale16,355 246 6.02 4,732 71 6.00 
Loans: (3)
Commercial8,533,233 159,190 7.46 8,309,561 126,850 6.11 
Real estate mortgage2,118,060 21,829 4.12 1,827,749 16,654 3.64 
Installment820,728 16,258 7.92 843,562 12,527 5.94 
Tax-exempt (2)
908,075 10,376 4.57 833,307 8,772 4.21 
Total Loans12,396,451 207,899 6.71 11,818,911 164,874 5.58 
Total Earning Assets17,222,714 242,843 5.64 %16,702,944 197,352 4.73 %
Total Non-Earning Assets1,174,486 1,131,524 
TOTAL ASSETS$18,397,200 $17,834,468 
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits$5,504,725 $40,996 2.98 %$5,238,422 $16,810 1.28 %
Money market deposits3,096,085 27,909 3.61 3,018,644 10,778 1.43 
Savings deposits1,587,758 3,913 0.99 1,895,551 2,125 0.45 
Certificates and other time deposits2,225,528 23,837 4.28 1,038,502 3,803 1.46 
Total Interest-Bearing Deposits12,414,096 96,655 3.11 11,191,119 33,516 1.20 
Borrowings1,013,856 10,272 4.05 1,097,586 8,510 3.10 
Total Interest-Bearing Liabilities13,427,952 106,927 3.19 12,288,705 42,026 1.37 
Noninterest-bearing deposits2,586,484 3,373,734 
Other liabilities251,771 213,988 
Total Liabilities16,266,207 15,876,427 
STOCKHOLDERS' EQUITY2,130,993 1,958,041 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,397,200 106,927 $17,834,468 42,026 
Net Interest Income (FTE)$135,916 $155,326 
Net Interest Spread (FTE) (4)
2.45 %3.36 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets5.64 %4.73 %
Interest Expense / Average Earning Assets2.48 %1.01 %
Net Interest Margin (FTE) (5)
3.16 %3.72 %
(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 $5,853 and $6.370 for the three months ended December 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.







CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Twelve Months Ended
December 31, 2023December 31, 2022
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
Assets:
Interest-bearing deposits$431,581 $17,719 4.11 %$296,863 $2,503 0.84 %
Federal Home Loan Bank stock41,319 3,052 7.39 35,580 1,176 3.31 
Investment Securities: (1)
Taxable1,854,438 35,207 1.90 2,056,586 38,354 1.86 
Tax-exempt (2)
2,366,475 73,566 3.11 2,653,611 85,292 3.21 
Total Investment Securities4,220,913 108,773 2.58 4,710,197 123,646 2.63 
Loans held for sale21,766 1,292 5.94 14,715 692 4.70 
Loans: (3)
Commercial8,519,706 603,611 7.08 7,877,271 380,621 4.83 
Real estate mortgage2,035,488 82,183 4.04 1,471,802 51,853 3.52 
Installment830,006 60,751 7.32 785,520 37,302 4.75 
Tax-exempt (2)
891,008 40,448 4.54 793,743 31,803 4.01 
Total Loans12,297,974 788,285 6.41 10,943,051 502,271 4.59 
Total Earning Assets16,991,787 917,829 5.40 %15,985,691 629,596 3.94 %
Total Non-Earning Assets1,194,720 1,234,311 
Total Assets$18,186,507 $17,220,002 
Liabilities:
Interest-Bearing deposits:
Interest-bearing deposits$5,435,733 $138,012 2.54 %$5,206,131 $32,511 0.62 %
Money market deposits2,884,271 83,777 2.90 2,915,397 19,170 0.66 
Savings deposits1,694,230 14,606 0.86 1,927,122 5,019 0.26 
Certificates and other time deposits1,923,268 69,697 3.62 881,176 6,239 0.71 
Total Interest-Bearing Deposits11,937,502 306,092 2.56 10,929,826 62,939 0.58 
Borrowings1,111,472 42,394 3.81 888,392 21,864 2.46 
Total Interest-Bearing Liabilities13,048,974 348,486 2.67 11,818,218 84,803 0.72 
Noninterest-bearing deposits2,783,996 3,268,417 
Other liabilities226,275 160,922 
Total Liabilities16,059,245 15,247,557 
Stockholders' Equity2,127,262 1,972,445 
Total Liabilities and Stockholders' Equity$18,186,507 348,486 $17,220,002 84,803 
Net Interest Income (FTE)$569,343 $544,793 
Net Interest Spread (FTE) (4)
2.73 %3.22 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets5.40 %3.94 %
Interest Expense / Average Earning Assets2.05 %0.53 %
Net Interest Margin (FTE) (5)
3.35 %3.41 %
(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 $23,943 and $24,590 for the years ended December 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 NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2023202320232023202220232022
Net Income Available to Common Stockholders - GAAP$42,010 $55,898 $60,393 $63,610 $70,292 $221,911 $220,683 
Adjustments:
PPP loan income(7)(8)(9)(25)(109)(49)(3,207)
Acquisition-related expenses— — — — 413 — 16,531 
Acquisition-related provision expense— — — — — — 16,755 
Non-core expenses1
12,682 — — — — 12,682 — 
Tax on adjustments(3,088)2 2 6 (75)(3,078)(7,376)
Adjusted Net Income Available to Common Stockholders - Non-GAAP$51,597 $55,892 $60,386 $63,591 $70,521 $231,466 $243,386 
Average Diluted Common Shares Outstanding (in thousands)59,556 59,503 59,448 59,441 59,384 59,489 57,590 
Diluted Earnings Per Common Share - GAAP$0.71 $0.94 $1.02 $1.07 $1.19 $3.73 $3.81 
Adjustments:
PPP loan income— — — — (0.01)— (0.06)
Acquisition-related expenses— — — — 0.01 — 0.28 
Acquisition-related provision expense— — — — — — 0.30 
Non-core expenses1
0.21 — — — — 0.21 — 
Tax on adjustments(0.05)— — — — (0.05)(0.13)
Adjusted Diluted Earnings Per Common Share - Non-GAAP$0.87 $0.94 $1.02 $1.07 $1.19 $3.89 $4.20 
1 - Non-core expenses include one-time charges consisting of $6.3 million from early retirement and severance costs, $4.3 million from the FDIC special assessment, and $2.1 million from a lease termination.


RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2023202320232023202220232022
Total Average Stockholders' Equity (GAAP)$2,130,993 $2,154,232 $2,139,877 $2,083,125 $1,958,041 $2,127,262 $1,972,445 
Less: Average Preferred Stock(25,125)(25,125)(25,125)(25,125)(25,125)(25,125)(18,875)
Less: Average Intangible Assets, Net of Tax(734,007)(735,787)(737,489)(739,190)(741,632)(736,601)(699,803)
Average Tangible Common Equity, Net of Tax (Non-GAAP)$1,371,861 $1,393,320 $1,377,263 $1,318,810 $1,191,284 $1,365,536 $1,253,767 
Net Income Available to Common Stockholders (GAAP)$42,010 $55,898 $60,393 $63,610 $70,292 $221,911 $220,683 
Plus: Intangible Asset Amortization, Net of Tax1,724 1,724 1,724 1,734 1,819 6,906 6,537 
Tangible Net Income (Non-GAAP)$43,734 $57,622 $62,117 $65,344 $72,111 $228,817 $227,220 
Return on Tangible Common Equity (Non-GAAP)12.75 %16.54 %18.04 %19.82 %24.21 %16.76 %18.12 %