N / E / W / S R / E / L / E / A / S / E
    
January 30, 2025

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 2024 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME)

Fourth Quarter 2024 Highlights:

•    Net income available to common stockholders was $63.9 million and diluted earnings per common share totaled $1.10, compared to $48.7 million and $0.84 in the third quarter of 2024, and $42.0 million and $0.71 in the fourth quarter of 2023. Excluding the impact of the branch sale and repositioning of the available for sale securities portfolio, adjusted net income available to common stockholders1 was $58.1 million or $1.00 per share for the fourth quarter of 2024.
•    Strong capital position with Common Equity Tier 1 Capital Ratio of 11.43% and Tangible Common Equity to Tangible Assets Ratio of 8.81%.
•    Net interest margin was 3.28% compared to 3.23% on a linked quarter basis and 3.16% in the fourth quarter of 2023.
•    Total loans grew $185.6 million, or 5.9% annualized, on a linked quarter basis, and $368.1 million, or 2.9% during the last twelve months.
•    Total deposits increased $156.5 million, or 4.4% annualized, on a linked quarter basis, and declined $32.4 million, or 0.2%, during the last twelve months after normalizing for deposits sold during the fourth quarter.
•    Nonperforming assets to total assets were 43 basis points compared to 35 basis points on a linked quarter basis.
•Adjusted efficiency ratio totaled 53.60%1 for the quarter.
•Completed the sale of five Illinois branches and certain loans and deposits to Old Second National Bank on December 6, 2024.

"The fourth quarter was a strong finish to the year and showed the momentum we have built with healthy increases in core earnings, NIM and ROA," said Mark Hardwick, Chief Executive Officer of First Merchants Bank. "We restructured a portion of our securities portfolio and completed the Illinois branch sale to help prioritize our core markets. These actions and the completion of multiple technology initiatives in 2024 have positioned First Merchants to deliver strong results in 2025."

Fourth Quarter Financial Results:

First Merchants Corporation (the “Corporation”) reported fourth quarter 2024 net income available to common stockholders of $63.9 million compared to $42.0 million during the same period in 2023. Diluted earnings per common share for the period totaled $1.10 compared to the fourth quarter of 2023 result of $0.71. Excluding non-core income and expenses incurred in each period, adjusted net income available to common stockholders1 for the fourth quarter 2024 was $58.1 million, or $1.00 diluted earnings per common share compared to $53.4 million, or $0.90 in the same period in 2023.

During the quarter, the Corporation completed the sale of five Illinois branches along with loans of $7.4 million and deposits of $267.4 million, generating a gain of $20.0 million recorded in non-interest income. The sale of these branches represents the Corporation’s exit from suburban Chicago markets.







Total assets equaled $18.3 billion and loans totaled $12.9 billion as of quarter-end. During the past twelve months, total loans grew by $368.1 million, or 2.9%. On a linked quarter basis, loans grew $185.6 million, or 5.9% annualized, with growth primarily in commercial loans.

Investments totaling $3.5 billion decreased $350.7 million, or 9.2%, during the last twelve months and decreased $201.5 million on a linked quarter basis. The decline during the quarter was partially due to the sale of $109.6 million of available for sale securities with a weighted average tax-equivalent yield of 2.31%, which resulted in a loss of $11.6 million. The remaining decline for the quarter was due to security paydowns and maturities, as well as a decline in valuation of securities reflecting the movement of interest rates. Sales of available for sale securities in 2024 totaled $268.5 million and resulted in a loss of $20.8 million.

Total deposits were $14.5 billion as of quarter-end and decreased by $299.8 million, or 2.0%, over the past twelve months. The decline was primarily due to the sale of the Illinois branches during the fourth quarter which included $267.4 million of deposits. Excluding this impact, deposits declined by $32.4 million in 2024. On a linked quarter basis, deposits grew by $156.5 million, or 4.4% annualized. The loan to deposit ratio increased slightly to 88.5% at period end from 88.0% in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $192.8 million as of quarter-end, or 1.50% of total loans, an increase of $4.9 million from prior quarter. Loan charge-offs, net of recoveries totaled $0.8 million and provision for loans of $5.7 million was recorded during the quarter. Reserves for unfunded commitments totaled $18.0 million declining during the quarter due to reserve release of $1.5 million. Net provision for the quarter totaled $4.2 million. Non-performing assets to total assets were 43 basis points for the fourth quarter of 2024, an increase of eight basis points compared to 35 basis points in the prior quarter.

Net interest income totaled $134.4 million for the quarter, an increase of $3.3 million, or 2.5%, compared to the prior quarter and an increase of $4.3 million, or 3.3%, compared to the fourth quarter of 2023. Fully taxable equivalent net interest margin was 3.28%, an increase of five basis points compared to the third quarter of 2024, and an increase of 12 basis points compared to the fourth quarter of 2023. The increase in net interest margin compared to the third quarter was due to lower funding costs and a more favorable earning asset and funding mix.

Noninterest income totaled $42.7 million for the quarter, an increase of $17.9 million compared to the third quarter of 2024 and an increase of $16.3 million compared to the fourth quarter of 2023. When excluding non-core income from each period, noninterest income totaled $34.4 million for the quarter, an increase of $0.4 million compared to third quarter of 2024, and an increase of $5.6 million compared to the fourth quarter of 2023. The increase in core noninterest income over the fourth quarter of 2023 was primarily due to an increase in gains on sales of loans and CRA investment income.

Noninterest expense totaled $96.3 million for the quarter, an increase of $1.7 million from the third quarter of 2024 and a decrease of $11.8 million from the fourth quarter of 2023. The increase in the linked quarter was from higher marketing costs and other one-time operating expenses. The decrease from the fourth quarter of 2023 was due to one-time charges incurred in the prior year which included an FDIC special assessment, early retirement and severance costs, and a lease termination.

The Corporation’s total risk-based capital ratio totaled 13.31%, common equity tier 1 capital ratio totaled 11.43%, and the tangible common equity ratio totaled 8.81%. 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 fourth quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, January 30, 2025.

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/BIc49ad0293a7844dca2e7171f51e600dd95f36e86b6)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/9t5v76m2) during the time of the call. A replay of the webcast will be available until January 30, 2026.

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 about 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,
20242023
ASSETS
Cash and due from banks$87,616 $112,649 
Interest-bearing deposits298,891 436,080 
Investment securities, net of allowance for credit losses of $245,000 and $245,0003,460,695 3,811,364 
Loans held for sale18,663 18,934 
Loans12,854,359 12,486,027 
Less: Allowance for credit losses - loans(192,757)(204,934)
Net loans12,661,602 12,281,093 
Premises and equipment129,743 133,896 
Federal Home Loan Bank stock41,690 41,769 
Interest receivable91,829 97,664 
Goodwill and other intangibles731,830 739,101 
Cash surrender value of life insurance304,906 306,301 
Other real estate owned4,948 4,831 
Tax asset, deferred and receivable92,387 99,883 
Other assets387,169 322,322 
TOTAL ASSETS$18,311,969 $18,405,887 
LIABILITIES
Deposits:
Noninterest-bearing$2,325,579 $2,500,062 
Interest-bearing12,196,047 12,321,391 
Total Deposits14,521,626 14,821,453 
Borrowings:
Federal funds purchased99,226 — 
Securities sold under repurchase agreements142,876 157,280 
Federal Home Loan Bank advances822,554 712,852 
Subordinated debentures and other borrowings93,529 158,644 
Total Borrowings1,158,185 1,028,776 
Interest payable16,102 18,912 
Other liabilities311,073 289,033 
Total Liabilities16,006,986 16,158,174 
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 - 57,974,535 and 59,424,122 shares7,247 7,428 
Additional paid-in capital1,188,768 1,236,506 
Retained earnings1,272,528 1,154,624 
Accumulated other comprehensive loss(188,685)(175,970)
Total Stockholders' Equity2,304,983 2,247,713 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,311,969 $18,405,887 








CONSOLIDATED STATEMENTS OF INCOMEThree Months EndedTwelve Months Ended
(Dollars In Thousands, Except Per Share Amounts)December 31,December 31,
2024202320242023
INTEREST INCOME
Loans:
Taxable$197,536 $197,523 $803,652 $747,837 
Tax-exempt9,020 8,197 34,262 31,954 
Investment securities:
Taxable9,024 8,644 36,086 35,207 
Tax-exempt12,754 13,821 53,487 58,117 
Deposits with financial institutions5,350 8,034 16,992 17,719 
Federal Home Loan Bank stock958 771 3,527 3,052 
Total Interest Income234,642 236,990 948,006 893,886 
INTEREST EXPENSE
Deposits89,835 96,655 386,127 306,092 
Federal funds purchased26 1 481 1,421 
Securities sold under repurchase agreements680 827 3,057 3,451 
Federal Home Loan Bank advances8,171 6,431 29,886 27,206 
Subordinated debentures and other borrowings1,560 3,013 7,341 10,316 
Total Interest Expense100,272 106,927 426,892 348,486 
NET INTEREST INCOME134,370 130,063 521,114 545,400 
Provision for credit losses4,200 1,500 35,700 3,500 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES130,170 128,563 485,414 541,900 
NONINTEREST INCOME
Service charges on deposit accounts8,124 7,690 32,606 30,837 
Fiduciary and wealth management fees8,665 8,187 34,215 30,840 
Card payment fees4,957 4,437 19,317 18,862 
Net gains and fees on sales of loans5,681 4,111 20,840 15,659 
Derivative hedge fees1,594 1,049 3,082 3,385 
Other customer fees316 237 1,547 1,880 
Earnings on cash surrender value of life insurance2,188 3,202 8,464 8,347 
Net realized losses on sales of available for sale securities(11,592)(2,317)(20,757)(6,930)
Gain on branch sale19,983 — 19,983 — 
Other income (loss)2,826 (152)6,283 2,722 
Total Noninterest Income42,742 26,444 125,580 105,602 
NONINTEREST EXPENSES
Salaries and employee benefits55,437 60,967 221,167 228,745 
Net occupancy7,335 9,089 28,387 29,859 
Equipment7,028 6,108 26,802 24,113 
Marketing2,582 2,647 7,389 7,427 
Outside data processing fees6,029 5,875 27,140 25,165 
Printing and office supplies377 402 1,462 1,552 
Intangible asset amortization1,771 2,182 7,271 8,743 
FDIC assessments3,744 7,557 15,029 14,674 
Other real estate owned and foreclosure expenses227 1,743 2,076 3,318 
Professional and other outside services3,777 3,981 14,586 16,172 
Other expenses7,982 7,552 27,957 28,502 
Total Noninterest Expenses96,289 108,103 379,266 388,270 
INCOME BEFORE INCOME TAX76,623 46,904 231,728 259,232 
Income tax expense12,274 4,425 30,326 35,446 
NET INCOME64,349 42,479 201,402 223,786 
Preferred stock dividends469 469 1,875 1,875 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$63,880 $42,010 $199,527 $221,911 
Per Share Data:
Basic Net Income Available to Common Stockholders$1.10 $0.71 $3.42 $3.74 
Diluted Net Income Available to Common Stockholders$1.10 $0.71 $3.41 $3.73 
Cash Dividends Paid to Common Stockholders$0.35 $0.34 $1.39 $1.34 
Average Diluted Common Shares Outstanding (in thousands)58,247 59,556 58,533 59,489 





FINANCIAL HIGHLIGHTS
(Dollars in thousands)Three Months EndedTwelve Months Ended
December 31,December 31,
2024202320242023
NET CHARGE-OFFS$771 $3,148 $49,377 $25,643 
AVERAGE BALANCES:
Total Assets$18,478,303 $18,397,200 $18,400,495 $18,186,507 
Total Loans12,757,676 12,396,451 12,634,324 12,297,974 
Total Earning Assets17,089,198 17,222,714 17,054,267 16,991,787 
Total Deposits14,788,294 15,000,580 14,816,564 14,721,498 
Total Stockholders' Equity2,312,270 2,130,993 2,252,491 2,127,262 
FINANCIAL RATIOS:
Return on Average Assets1.39 %0.92 %1.09 %1.23 %
Return on Average Stockholders' Equity11.05 7.89 8.86 10.43 
Return on Tangible Common Stockholders' Equity16.75 12.75 13.71 16.76 
Average Earning Assets to Average Assets92.48 93.62 92.68 93.43 
Allowance for Credit Losses - Loans as % of Total Loans1.50 1.64 1.50 1.64 
Net Charge-offs as % of Average Loans (Annualized)0.02 0.10 0.39 0.21 
Average Stockholders' Equity to Average Assets12.51 11.58 12.24 11.70 
Tax Equivalent Yield on Average Earning Assets5.63 5.64 5.69 5.40 
Interest Expense/Average Earning Assets2.35 2.48 2.50 2.05 
Net Interest Margin (FTE) on Average Earning Assets3.28 3.16 3.19 3.35 
Efficiency Ratio48.48 63.26 53.55 55.17 
Tangible Common Book Value Per Share$26.78 $25.06 $26.78 $25.06 

NONPERFORMING ASSETS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20242024202420242023
Nonaccrual Loans$73,773 $59,088 $61,906 $62,478 $53,580 
Other Real Estate Owned and Repossessions4,948 5,247 4,824 4,886 4,831 
Nonperforming Assets (NPA)78,721 64,335 66,730 67,364 58,411 
90+ Days Delinquent5,902 14,105 1,686 2,838 172 
NPAs & 90 Day Delinquent$84,623 $78,440 $68,416 $70,202 $58,583 
Allowance for Credit Losses - Loans$192,757 $187,828 $189,537 $204,681 $204,934 
Quarterly Net Charge-offs771 6,709 39,644 2,253 3,148 
NPAs / Actual Assets %0.43 %0.35 %0.36 %0.37 %0.32 %
NPAs & 90 Day / Actual Assets %0.46 %0.43 %0.37 %0.38 %0.32 %
NPAs / Actual Loans and OREO %0.61 %0.51 %0.53 %0.54 %0.47 %
Allowance for Credit Losses - Loans / Actual Loans (%)1.50 %1.48 %1.50 %1.64 %1.64 %
Net Charge-offs as % of Average Loans (Annualized)0.02 %0.21 %1.26 %0.07 %0.10 %





CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20242024202420242023
ASSETS
Cash and due from banks$87,616 $84,719 $105,372 $100,514 $112,649 
Interest-bearing deposits298,891 359,126 168,528 410,497 436,080 
Investment securities, net of allowance for credit losses3,460,695 3,662,145 3,753,088 3,783,574 3,811,364 
Loans held for sale18,663 40,652 32,292 15,118 18,934 
Loans12,854,359 12,646,808 12,639,650 12,465,582 12,486,027 
Less: Allowance for credit losses - loans(192,757)(187,828)(189,537)(204,681)(204,934)
Net loans12,661,602 12,458,980 12,450,113 12,260,901 12,281,093 
Premises and equipment129,743 129,582 133,245 132,706 133,896 
Federal Home Loan Bank stock41,690 41,716 41,738 41,758 41,769 
Interest receivable91,829 92,055 97,546 92,550 97,664 
Goodwill and other intangibles731,830 733,601 735,373 737,144 739,101 
Cash surrender value of life insurance304,906 304,613 306,379 306,028 306,301 
Other real estate owned4,948 5,247 4,824 4,886 4,831 
Tax asset, deferred and receivable92,387 86,732 107,080 101,121 99,883 
Other assets387,169 348,384 367,845 331,006 322,322 
TOTAL ASSETS$18,311,969 $18,347,552 $18,303,423 $18,317,803 $18,405,887 
LIABILITIES
Deposits:
Noninterest-bearing$2,325,579 $2,334,197 $2,303,313 $2,338,364 $2,500,062 
Interest-bearing12,196,047 12,030,903 12,265,757 12,546,220 12,321,391 
Total Deposits14,521,626 14,365,100 14,569,070 14,884,584 14,821,453 
Borrowings:
Federal funds purchased99,226 30,000 147,229 — — 
Securities sold under repurchase agreements142,876 124,894 100,451 130,264 157,280 
Federal Home Loan Bank advances822,554 832,629 832,703 612,778 712,852 
Subordinated debentures and other borrowings93,529 93,562 93,589 118,612 158,644 
Total Borrowings1,158,185 1,081,085 1,173,972 861,654 1,028,776 
Deposits and other liabilities held for sale— 288,476 — — — 
Interest payable16,102 18,089 18,554 19,262 18,912 
Other liabilities311,073 292,429 329,302 327,500 289,033 
Total Liabilities16,006,986 16,045,179 16,090,898 16,093,000 16,158,174 
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 outstanding7,247 7,265 7,256 7,321 7,428 
Additional paid-in capital1,188,768 1,192,683 1,191,193 1,208,447 1,236,506 
Retained earnings1,272,528 1,229,125 1,200,930 1,181,939 1,154,624 
Accumulated other comprehensive loss(188,685)(151,825)(211,979)(198,029)(175,970)
Total Stockholders' Equity2,304,983 2,302,373 2,212,525 2,224,803 2,247,713 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,311,969 $18,347,552 $18,303,423 $18,317,803 $18,405,887 









CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)December 31,September 30,June 30,March 31,December 31,
20242024202420242023
INTEREST INCOME
Loans:
Taxable$197,536 $206,680 $201,413 $198,023 $197,523 
Tax-exempt9,020 8,622 8,430 8,190 8,197 
Investment securities:
Taxable9,024 9,263 9,051 8,748 8,644 
Tax-exempt12,754 13,509 13,613 13,611 13,821 
Deposits with financial institutions5,350 2,154 2,995 6,493 8,034 
Federal Home Loan Bank stock958 855 879 835 771 
Total Interest Income234,642 241,083 236,381 235,900 236,990 
INTEREST EXPENSE
Deposits89,835 98,856 99,151 98,285 96,655 
Federal funds purchased26 329 126 — 1 
Securities sold under repurchase agreements680 700 645 1,032 827 
Federal Home Loan Bank advances8,171 8,544 6,398 6,773 6,431 
Subordinated debentures and other borrowings1,560 1,544 1,490 2,747 3,013 
Total Interest Expense100,272 109,973 107,810 108,837 106,927 
NET INTEREST INCOME134,370 131,110 128,571 127,063 130,063 
Provision for credit losses4,200 5,000 24,500 2,000 1,500 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES130,170 126,110 104,071 125,063 128,563 
NONINTEREST INCOME
Service charges on deposit accounts8,124 8,361 8,214 7,907 7,690 
Fiduciary and wealth management fees8,665 8,525 8,825 8,200 8,187 
Card payment fees4,957 5,121 4,739 4,500 4,437 
Net gains and fees on sales of loans5,681 6,764 5,141 3,254 4,111 
Derivative hedge fees1,594 736 489 263 1,049 
Other customer fees316 344 460 427 237 
Earnings on cash surrender value of life insurance2,188 2,755 1,929 1,592 3,202 
Net realized losses on sales of available for sale securities(11,592)(9,114)(49)(2)(2,317)
Gain on branch sale19,983 — — — — 
Other income (loss)2,826 1,374 1,586 497 (152)
Total Noninterest Income42,742 24,866 31,334 26,638 26,444 
NONINTEREST EXPENSES
Salaries and employee benefits55,437 55,223 52,214 58,293 60,967 
Net occupancy7,335 6,994 6,746 7,312 9,089 
Equipment7,028 6,949 6,599 6,226 6,108 
Marketing2,582 1,836 1,773 1,198 2,647 
Outside data processing fees6,029 7,150 7,072 6,889 5,875 
Printing and office supplies377 378 354 353 402 
Intangible asset amortization1,771 1,772 1,771 1,957 2,182 
FDIC assessments3,744 3,720 3,278 4,287 7,557 
Other real estate owned and foreclosure expenses227 942 373 534 1,743 
Professional and other outside services3,777 3,035 3,822 3,952 3,981 
Other expenses7,982 6,630 7,411 5,934 7,552 
Total Noninterest Expenses96,289 94,629 91,413 96,935 108,103 
INCOME BEFORE INCOME TAX76,623 56,347 43,992 54,766 46,904 
Income tax expense12,274 7,160 4,067 6,825 4,425 
NET INCOME64,349 49,187 39,925 47,941 42,479 
Preferred stock dividends469 468 469 469 469 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$63,880 $48,719 $39,456 $47,472 $42,010 
Per Share Data:
Basic Net Income Available to Common Stockholders$1.10 $0.84 $0.68 $0.80 $0.71 
Diluted Net Income Available to Common Stockholders$1.10 $0.84 $0.68 $0.80 $0.71 
Cash Dividends Paid to Common Stockholders$0.35 $0.35 $0.35 $0.34 $0.34 
Average Diluted Common Shares Outstanding (in thousands)58,247 58,289 58,328 59,273 59,556 
FINANCIAL RATIOS:
Return on Average Assets1.39 %1.07 %0.87 %1.04 %0.92 %
Return on Average Stockholders' Equity11.05 8.66 7.16 8.47 7.89 
Return on Tangible Common Stockholders' Equity16.75 13.39 11.29 13.21 12.75 
Average Earning Assets to Average Assets92.48 92.54 92.81 92.91 93.62 
Allowance for Credit Losses - Loans as % of Total Loans1.50 1.48 1.50 1.64 1.64 
Net Charge-offs as % of Average Loans (Annualized)0.02 0.21 1.26 0.07 0.10 
Average Stockholders' Equity to Average Assets12.51 12.26 12.02 12.17 11.58 
Tax Equivalent Yield on Average Earning Assets5.63 5.82 5.69 5.65 5.64 
Interest Expense/Average Earning Assets2.35 2.59 2.53 2.55 2.48 
Net Interest Margin (FTE) on Average Earning Assets3.28 3.23 3.16 3.10 3.16 
Efficiency Ratio48.48 53.76 53.84 59.21 63.26 
Tangible Common Book Value Per Share$26.78 $26.64 $25.10 $25.07 $25.06 





LOANS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20242024202420242023
Commercial and industrial loans$4,114,292 $4,041,217 $3,949,817 $3,722,365 $3,670,948 
Agricultural land, production and other loans to farmers256,312 238,743 239,926 234,431 263,414 
Real estate loans:
Construction792,144 814,704 823,267 941,726 957,545 
Commercial real estate, non-owner occupied2,274,016 2,251,351 2,323,533 2,368,360 2,400,839 
Commercial real estate, owner occupied1,157,944 1,152,751 1,174,195 1,137,894 1,162,083 
Residential2,374,729 2,366,943 2,370,905 2,316,490 2,288,921 
Home equity659,811 641,188 631,104 618,258 617,571 
Individuals' loans for household and other personal expenditures166,028 158,480 162,089 161,459 168,388 
Public finance and other commercial loans1,059,083 981,431 964,814 964,599 956,318 
Loans12,854,359 12,646,808 12,639,650 12,465,582 12,486,027 
Allowance for credit losses - loans(192,757)(187,828)(189,537)(204,681)(204,934)
NET LOANS$12,661,602 $12,458,980 $12,450,113 $12,260,901 $12,281,093 

DEPOSITS
(Dollars In Thousands)December 31,September 30,June 30,March 31,December 31,
20242024202420242023
Demand deposits$7,980,061 $7,678,510 $7,757,679 $7,771,976 $7,965,862 
Savings deposits4,522,758 4,302,236 4,339,161 4,679,593 4,516,433 
Certificates and other time deposits of $100,000 or more1,043,068 1,277,833 1,415,131 1,451,443 1,408,985 
Other certificates and time deposits692,068 802,949 889,949 901,280 849,906 
Brokered certificates of deposits1
283,671 303,572 167,150 80,292 80,267 
TOTAL DEPOSITS2
$14,521,626 $14,365,100 $14,569,070 $14,884,584 $14,821,453 
1 - Total brokered deposits of $955.7 million, which includes brokered CD's of $283.7 million at December 31, 2024.
2 - Total deposits at September 30, 2024 excluded $287.7 million of deposits reclassified to Deposits and other liabilities held for sale related to the Illinois branch sale. The sale of $267.4 million of deposits associated with the Illinois branch sale was subsequently completed on December 6, 2024.







CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Three Months Ended
December 31, 2024December 31, 2023
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
ASSETS
Interest-bearing deposits$522,868 $5,350 4.09 %$700,705 $8,034 4.59 %
Federal Home Loan Bank stock41,703 958 9.19 41,792 771 7.38 
Investment Securities: (1)
Taxable1,677,554 9,024 2.15 1,801,533 8,644 1.92 
Tax-exempt (2)
2,089,397 16,144 3.09 2,282,233 17,495 3.07 
Total Investment Securities3,766,951 25,168 2.67 4,083,766 26,139 2.56 
Loans held for sale36,219 550 6.07 16,355 246 6.02 
Loans: (3)
Commercial8,753,723 156,414 7.15 8,533,233 159,190 7.46 
Real estate mortgage2,177,351 24,401 4.48 2,118,060 21,829 4.12 
HELOC and installment841,537 16,171 7.69 820,728 16,258 7.92 
Tax-exempt (2)
948,846 11,418 4.81 908,075 10,376 4.57 
Total Loans12,757,676 208,954 6.55 12,396,451 207,899 6.71 
Total Earning Assets17,089,198 240,430 5.63 %17,222,714 242,843 5.64 %
Total Non-Earning Assets1,389,105 1,174,486 
TOTAL ASSETS$18,478,303 $18,397,200 
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits$5,564,228 $37,049 2.66 %$5,504,725 $40,996 2.98 %
Money market deposits3,189,334 25,463 3.19 3,096,085 27,909 3.61 
Savings deposits1,362,705 3,102 0.91 1,587,758 3,913 0.99 
Certificates and other time deposits2,313,284 24,221 4.19 2,225,528 23,837 4.28 
Total Interest-Bearing Deposits12,429,551 89,835 2.89 12,414,096 96,655 3.11 
Borrowings1,049,677 10,437 3.98 1,013,856 10,272 4.05 
Total Interest-Bearing Liabilities13,479,228 100,272 2.98 13,427,952 106,927 3.19 
Noninterest-bearing deposits2,358,743 2,586,484 
Other liabilities328,062 251,771 
Total Liabilities16,166,033 16,266,207 
STOCKHOLDERS' EQUITY2,312,270 2,130,993 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,478,303 100,272 $18,397,200 106,927 
Net Interest Income (FTE)$140,158 $135,916 
Net Interest Spread (FTE) (4)
2.65 %2.45 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets5.63 %5.64 %
Interest Expense / Average Earning Assets2.35 %2.48 %
Net Interest Margin (FTE) (5)
3.28 %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 2024 and 2023. These totals equal $5,788 and $5,853 for the three months ended December 31, 2024 and 2023, 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, 2024December 31, 2023
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
Assets:
Interest-bearing deposits$418,163 $16,992 4.06 %$431,581 $17,719 4.11 %
Federal Home Loan Bank stock41,736 3,527 8.45 41,319 3,052 7.39 
Investment Securities: (1)
Taxable1,759,578 36,086 2.05 1,854,438 35,207 1.90 
Tax-exempt (2)
2,200,466 67,705 3.08 2,366,475 73,566 3.11 
Total Investment Securities3,960,044 103,791 2.62 4,220,913 108,773 2.58 
Loans held for sale29,650 1,792 6.04 21,766 1,292 5.94 
Loans: (3)
Commercial8,687,638 641,393 7.38 8,519,706 603,611 7.08 
Real estate mortgage2,158,743 94,890 4.40 2,035,488 82,183 4.04 
HELOC and installment830,079 65,577 7.90 830,006 60,751 7.32 
Tax-exempt (2)
928,214 43,370 4.67 891,008 40,448 4.54 
Total Loans12,634,324 847,022 6.70 12,297,974 788,285 6.41 
Total Earning Assets17,054,267 971,332 5.69 %16,991,787 917,829 5.40 %
Total Non-Earning Assets1,346,228 1,194,720 
Total Assets$18,400,495 $18,186,507 
Liabilities:
Interest-Bearing deposits:
Interest-bearing deposits$5,506,492 $157,984 2.87 %$5,435,733 $138,012 2.54 %
Money market deposits3,061,461 106,026 3.46 2,884,271 83,777 2.90 
Savings deposits1,463,707 14,587 1.00 1,694,230 14,606 0.86 
Certificates and other time deposits2,413,900 107,530 4.45 1,923,268 69,697 3.62 
Total Interest-Bearing Deposits12,445,560 386,127 3.10 11,937,502 306,092 2.56 
Borrowings1,005,017 40,765 4.06 1,111,472 42,394 3.81 
Total Interest-Bearing Liabilities13,450,577 426,892 3.17 13,048,974 348,486 2.67 
Noninterest-bearing deposits2,371,004 2,783,996 
Other liabilities326,423 226,275 
Total Liabilities16,148,004 16,059,245 
Stockholders' Equity2,252,491 2,127,262 
Total Liabilities and Stockholders' Equity$18,400,495 426,892 $18,186,507 348,486 
Net Interest Income (FTE)$544,440 $569,343 
Net Interest Spread (FTE) (4)
2.52 %2.73 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets5.69 %5.40 %
Interest Expense / Average Earning Assets2.50 %2.05 %
Net Interest Margin (FTE) (5)
3.19 %3.35 %
(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 2024 and 2023. These totals equal $23,326 and $23,943 for the years ended December 31, 2024 and 2023, 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,
2024202420242024202320242023
Net Income Available to Common Stockholders - GAAP$63,880 $48,719 $39,456 $47,472 $42,010 $199,527 $221,911 
Adjustments:
PPP loan income— — — — (7)— (49)
Net realized losses on sales of available for sale securities11,592 9,114 49 2 2,317 20,757 6,930 
Gain on branch sale(19,983)— — — — (19,983)— 
Non-core expenses1,2,3
762 — — 3,481 12,682 4,243 12,682 
Tax on adjustments1,851 (2,220)(12)(848)(3,652)(1,229)(4,767)
Adjusted Net Income Available to Common Stockholders - Non-GAAP$58,102 $55,613 $39,493 $50,107 $53,350 $203,315 $236,707 
Average Diluted Common Shares Outstanding (in thousands)58,247 58,289 58,328 59,273 59,556 58,533 59,489 
Diluted Earnings Per Common Share - GAAP$1.10 $0.84 $0.68 $0.80 $0.71 $3.41 $3.73 
Adjustments:
PPP loan income— — — — — — — 
Net realized losses on sales of available for sale securities0.20 0.15 — — 0.04 0.35 0.12 
Gain on branch sale(0.34)— — — — (0.34)— 
Non-core expenses1,2,3
0.01 — — 0.06 0.21 0.07 0.21 
Tax on adjustments0.03 (0.04)— (0.01)(0.06)(0.02)(0.08)
Adjusted Diluted Earnings Per Common Share - Non-GAAP$1.00 $0.95 $0.68 $0.85 $0.90 $3.47 $3.98 
1 - Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
2 - Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
3 - Non-core expenses in 4Q23 included $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.



NET INTEREST MARGIN ("NIM"), ADJUSTED
(Dollars in Thousands)
Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2024202420242024202320242023
Net Interest Income (GAAP)$134,370 $131,110 $128,571 $127,063 $130,063 $521,114 $545,400 
Fully Taxable Equivalent ("FTE") Adjustment5,788 5,883 5,859 5,795 5,853 23,326 23,943 
Net Interest Income (FTE) (non-GAAP)$140,158 $136,993 $134,430 $132,858 $135,916 $544,440 $569,343 
Average Earning Assets (GAAP)$17,089,198 $16,990,358 $17,013,984 $17,123,851 $17,222,714 $17,054,267 $16,991,787 
Net Interest Margin (GAAP)3.15 %3.09 %3.02 %2.97 %3.02 %3.06 %3.21 %
Net Interest Margin (FTE) (non-GAAP)3.28 %3.23 %3.16 %3.10 %3.16 %3.19 %3.35 %




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,
2024202420242024202320242023
Total Average Stockholders' Equity (GAAP)$2,312,270 $2,251,547 $2,203,361 $2,242,139 $2,130,993 $2,252,491 $2,127,262 
Less: Average Preferred Stock(25,125)(25,125)(25,125)(25,125)(25,125)(25,125)(25,125)
Less: Average Intangible Assets, Net of Tax(728,218)(729,581)(730,980)(732,432)(734,007)(730,295)(736,601)
Average Tangible Common Equity, Net of Tax (Non-GAAP)$1,558,927 $1,496,841 $1,447,256 $1,484,582 $1,371,861 $1,497,071 $1,365,536 
Net Income Available to Common Stockholders (GAAP)$63,880 $48,719 $39,456 $47,472 $42,010 $199,527 $221,911 
Plus: Intangible Asset Amortization, Net of Tax1,399 1,399 1,399 1,546 1,724 5,744 6,906 
Tangible Net Income (Non-GAAP)$65,279 $50,118 $40,855 $49,018 $43,734 $205,271 $228,817 
Return on Tangible Common Equity (Non-GAAP)16.75 %13.39 %11.29 %13.21 %12.75 %13.71 %16.76 %



EFFICIENCY RATIO - NON-GAAP
(Dollars In Thousands)Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2024202420242024202320242023
Non Interest Expense (GAAP)$96,289 $94,629 $91,413 $96,935 $108,103 $379,266 $388,270 
Less: Intangible Asset Amortization(1,771)(1,772)(1,771)(1,957)(2,182)(7,271)(8,743)
Less: OREO and Foreclosure Expenses(227)(942)(373)(534)(1,743)(2,076)(3,318)
Adjusted Non Interest Expense (Non-GAAP)$94,291 $91,915 $89,269 $94,444 $104,178 $369,919 $376,209 
Net Interest Income (GAAP)$134,370 $131,110 $128,571 $127,063 $130,063 $521,114 $545,400 
Plus: Fully Taxable Equivalent Adjustment5,788 5,883 5,859 5,795 5,853 23,326 23,943 
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP)$140,158 $136,993 $134,430 $132,858 $135,916 $544,440 $569,343 
Non Interest Income (GAAP)$42,742 $24,866 $31,334 $26,638 $26,444 $125,580 $105,602 
Less: Investment Securities (Gains) Losses11,592 9,114 49 2 2,317 20,757 6,930 
Adjusted Non Interest Income (Non-GAAP)$54,334 $33,980 $31,383 $26,640 $28,761 $146,337 $112,532 
Adjusted Revenue (Non-GAAP)$194,492 $170,973 $165,813 $159,498 $164,677 $690,777 $681,875 
Efficiency Ratio (Non-GAAP)48.48 %53.76 %53.84 %59.21 %63.26 %53.55 %55.17 %
Adjusted Non Interest Expense (Non-GAAP)$94,291 $91,915 $89,269 $94,444 $104,178 $369,919 $376,209 
Less: Acquisition-related Expenses— — — — — — — 
Less: Non-core Expenses1,2,3
(762)— — (3,481)(12,682)(4,243)(12,682)
Adjusted Non Interest Expense Excluding Non-core Expenses (Non-GAAP)$93,529 $91,915 $89,269 $90,963 $91,496 $365,676 $363,527 
Adjusted Revenue (Non-GAAP)$194,492 $170,973 $165,813 $159,498 $164,677 $690,777 $681,875 
Less: Gain on Branch Sale(19,983)— — — — (19,983)— 
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP)$174,509 $170,973 $165,813 $159,498 $164,677 $670,794 $681,875 
Adjusted Efficiency Ratio (Non-GAAP)53.60 %53.76 %53.84 %57.03 %55.56 %54.51 %53.31 %
1 - Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
2 - Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
3 - Non-core expenses in 4Q23 included $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.