EX-99.1 2 a3q22earningsreleaseex991.htm EX-99.1 Document



N / E / W / S R / E / L / E / A / S / E
    
October 25, 2022

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 2022 EARNINGS PER SHARE

First Merchants Corporation (NASDAQ - FRME)

Third Quarter 2022 Highlights:

•Net income available to common stockholders was $63.3 million and diluted earnings per common share totaled $1.08, compared to $52.8 million and $.98 in the third quarter of 2021, and $38.5 million and $.63 in the second quarter of 2022.
•Completed system integration for the acquisition of Level One Bancorp, Inc. (“Level One”) during the quarter.
•Adjusted net income available to common stockholders1 for the third quarter was $65.6 million and adjusted diluted earnings per common share1 totaled $1.12, compared to $46.6 million and $.87 in the third quarter of 2021, and $60.0 million and $1.01 in the second quarter of 2022.
•Total loans grew $290.6 million, or 10.2% annualized on a linked quarter basis, excluding the forgiveness of $21.7 million in Paycheck Protection Program (“PPP”) loans.
•Total deposits declined $136.0 million, or 3.7% annualized on a linked quarter basis.
•Nonaccrual loans totaled $43.5 million compared to $46.0 million on a linked quarter basis
•Net interest income totaled $140.3 million, an increase of $11.6 million, or 9.0% on a linked quarter basis

Mark Hardwick, Chief Executive Officer, stated, “Despite high inflation and volatility in both the bond and stock markets, our performance continues to be steady and strong. Margins are expanding, loan growth continues, and asset quality metrics remain at historical lows. We believe our balance sheet mix, allowance coverage and capital levels are well positioned for an uncertain economic environment.”

Third Quarter Financial Results

First Merchants Corporation (the “Corporation) has reported third quarter 2022 net income available to common stockholders of $63.3 million compared to $52.8 million during the same period in 2021. Diluted earnings per common share for the period totaled $1.08 per share compared to the third quarter of 2021 result of $.98 per share. Current quarter results included integration costs from the acquisition of Level One and severance expense totaling $4.0 million.

Total assets equaled $17.7 billion as of quarter-end and loans totaled $11.7 billion. Total loans increased $2.6 billion during the past twelve months. The acquisition of Level One contributed $1.6 billion of loans. Excluding acquired loans, the Corporation experienced organic loan growth of $1.2 billion, or 13.8 percent, during the past twelve months. This was offset by the forgiveness of PPP loans of $230.3 million. PPP loans accounted for $11.2 million of the period end loan portfolio balance. Investments decreased $150.7 million, or 3.4 percent, during the last twelve months and now total $4.3 billion.

Total deposits equaled $14.4 billion as of quarter-end and increased by $2.1 billion over the past twelve months. The acquisition of Level One contributed $1.9 billion in deposits resulting in $155.3 million or 1.3% in organic deposit growth. The balance sheet growth mix resulted in an increase in the loan to deposit ratio of 7.6% over the past twelve months with the current quarter ratio ending at 80.9 percent.





The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $226.7 million as of quarter-end, or 1.94 percent of total loans, an increase of $26.7 million over prior year due to the acquisition of Level One. Net loan recoveries for the quarter totaled $0.4 million. No provision expense was recorded during the quarter or during the last twelve months other than CECL Day 1 expense of $16.8 million due to the acquisition of Level One. Non-performing assets to total assets were 0.28% for the third quarter of 2022, a decrease of seven basis points compared to 0.35% in the third quarter of 2021.

Net-interest income totaling $140.3 million for the quarter, continued to grow with an increase of $11.6 million, or 9 percent, over prior quarter, and an increase of $35.6 million, or 34 percent compared to the third quarter of 2021. Stated net-interest margin on a tax equivalent basis, totaling 3.55 percent, increased by 27 basis points compared to the second quarter of 2022 and 35 basis points compared to the third quarter of 2021. Net-interest margin excluding the impact of fair value accretion and PPP loans totaled 3.47%, an increase of 28 basis points compared to 3.19% for the second quarter of 2022 and an increase of 48 basis points from the third quarter of 2021. During the quarter, the yield on earning assets expanded 53 basis points from higher loan and investment portfolio yields as well as organic loan growth, offset by a 26 basis point increase in funding costs.

Non-interest income, totaling $29.6 million for the quarter, increased $1.3 million or 4.7% compared to the second quarter of 2022. The increase was driven by higher earnings on cash surrender value of life insurance offset by lower customer related fees and other income. Non-interest income increased $1.1 million from the third quarter of 2021 also due to higher earnings on cash surrender value of life insurance offset by lower gains on the sale of securities and other income. The decline in other income was due to a write-down of an equity investment of $1.9 million.

Non-interest expense totaled $96.4 million for the quarter, a decrease of $0.9 million from the second quarter of 2022, and an increase of $25.0 million over the third quarter of 2021. Integration costs and severance expense totaling $4.0 million were incurred during the quarter.

The Corporation’s total risk-based capital ratio equaled 12.84 percent, common equity tier 1 capital ratio equaled 10.40 percent, and the tangible common equity ratio totaled 6.66 percent. These ratios continue to reflect the Corporation’s strong capital position.

1 See “Non-GAAP Financial Information” for reconciliation






CONFERENCE CALL

First Merchants Corporation will conduct a third quarter earnings conference call and web cast at 10:30 a.m. (ET) on Tuesday, October 25, 2022.

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/BI33d38f63624949c49527aaa096d2e146)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/988gy9uu) during the time of the call. A replay of the webcast will be available until October 25, 2023.

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, 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,
20222021
ASSETS
Cash and due from banks$119,532 $169,261 
Interest-bearing deposits179,593 369,447 
Investment securities, net of allowance for credit losses of $245,000 and $245,0004,294,768 4,445,516 
Loans held for sale25,394 5,990 
Loans11,650,002 9,041,576 
Less: Allowance for credit losses - loans(226,702)(199,972)
Net loans11,423,300 8,841,604 
Premises and equipment116,306 104,814 
Federal Home Loan Bank stock38,056 28,736 
Interest receivable71,605 53,079 
Goodwill and other intangibles750,713 572,323 
Cash surrender value of life insurance306,932 291,825 
Other real estate owned6,454 698 
Tax asset, deferred and receivable142,110 39,504 
Other assets244,222 137,928 
TOTAL ASSETS$17,718,985 $15,060,725 
LIABILITIES
Deposits:
Noninterest-bearing$3,356,651 $2,554,323 
Interest-bearing11,078,174 9,794,366 
Total Deposits14,434,825 12,348,689 
Borrowings:
Federal funds purchased185,000 — 
Securities sold under repurchase agreements194,482 183,589 
Federal Home Loan Bank advances643,769 334,149 
Subordinated debentures and other borrowings151,301 118,558 
Total Borrowings1,174,552 636,296 
Interest payable4,971 3,736 
Other liabilities197,971 203,914 
Total Liabilities15,812,319 13,192,635 
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 — 
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 59,145,414 and 53,510,745 shares7,393 6,689 
Additional paid-in capital1,226,695 988,659 
Retained earnings961,542 832,728 
Accumulated other comprehensive income (loss)(314,089)39,889 
Total Stockholders' Equity1,906,666 1,868,090 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$17,718,985 $15,060,725 







CONSOLIDATED STATEMENTS OF INCOMEThree Months EndedNine Months Ended
(Dollars In Thousands, Except Per Share Amounts)September 30,September 30,
2022202120222021
INTEREST INCOME
Loans receivable:
Taxable$128,504 $85,319 $314,366 $257,426 
Tax-exempt6,500 5,591 18,194 16,475 
Investment securities:
Taxable10,055 7,788 28,937 21,923 
Tax-exempt17,261 14,464 50,348 39,920 
Deposits with financial institutions704 218 1,544 461 
Federal Home Loan Bank stock314 168 635 434 
Total Interest Income163,338 113,548 414,024 336,639 
INTEREST EXPENSE
Deposits16,644 5,707 29,423 17,730 
Federal funds purchased418 — 494 4 
Securities sold under repurchase agreements372 77 595 239 
Federal Home Loan Bank advances3,493 1,389 6,485 4,283 
Subordinated debentures and other borrowings2,105 1,660 5,780 4,976 
Total Interest Expense23,032 8,833 42,777 27,232 
NET INTEREST INCOME140,306 104,715 371,247 309,407 
Provision for credit losses - loans— — 16,755 — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES140,306 104,715 354,492 309,407 
NON-INTEREST INCOME
Service charges on deposit accounts7,165 6,249 21,274 17,109 
Fiduciary and wealth management fees7,221 7,352 22,187 21,284 
Card payment fees4,776 4,156 15,674 12,682 
Net gains and fees on sales of loans2,543 3,955 7,968 16,266 
Derivative hedge fees700 1,028 3,062 2,288 
Other customer fees501 393 1,573 1,129 
Earnings on cash surrender value of life insurance6,655 2,468 9,659 5,009 
Net realized gains on sales of available for sale securities481 1,756 1,137 5,316 
Other income (loss)(425)1,144 1,257 2,393 
Total Non-Interest Income29,617 28,501 83,791 83,476 
NON-INTEREST EXPENSES
Salaries and employee benefits56,002 43,314 154,562 124,563 
Net occupancy6,738 5,576 19,573 17,682 
Equipment5,997 4,529 17,797 14,407 
Marketing2,401 1,676 4,551 3,922 
Outside data processing fees6,827 4,794 16,071 13,736 
Printing and office supplies472 265 1,198 861 
Intangible asset amortization2,303 1,463 5,972 4,284 
FDIC assessments2,824 1,552 7,940 4,381 
Other real estate owned and foreclosure expenses328 (91)626 821 
Professional and other outside services4,461 2,767 17,681 8,286 
Other expenses8,025 5,539 20,045 13,834 
Total Non-Interest Expenses96,378 71,384 266,016 206,777 
INCOME BEFORE INCOME TAX73,545 61,832 172,267 186,106 
Income tax expense9,793 9,062 20,938 28,308 
NET INCOME63,752 52,770 151,329 157,798 
Preferred stock dividends469 — 938 — 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$63,283 $52,770 $150,391 $157,798 
Per Share Data:
Basic Net Income Available to Common Stockholders$1.08 $0.98 $2.63 $2.93 
Diluted Net Income Available to Common Stockholders$1.08 $0.98 $2.62 $2.92 
Cash Dividends Paid to Common Stockholders$0.32 $0.29 $0.93 $0.84 
Average Diluted Common Shares Outstanding (in thousands)59,339 53,960 57,468 54,093 




FINANCIAL HIGHLIGHTS
(Dollars in thousands)Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
NET CHARGE-OFFS (RECOVERIES)$(427)$(197)$(751)$4,731 
AVERAGE BALANCES:
Total Assets$17,770,623 $15,006,087 $17,012,930 $14,672,596 
Total Loans11,488,203 9,089,648 10,647,950 9,202,327 
Total Earning Assets16,508,914 13,741,196 15,744,040 13,419,310 
Total Deposits14,577,532 12,350,336 14,074,696 12,017,335 
Total Stockholders' Equity2,018,156 1,889,037 1,977,299 1,858,680 
FINANCIAL RATIOS:
Return on Average Assets1.43 %1.41 %1.19 %1.43 %
Return on Average Stockholders' Equity12.54 11.17 10.14 11.32 
Return on Average Common Stockholders' Equity12.70 11.17 10.23 11.32 
Average Earning Assets to Average Assets92.90 91.57 92.54 91.46 
Allowance for Credit Losses - Loans as % of Total Loans1.94 2.21 1.94 2.21 
Net Charge-offs as % of Average Loans (Annualized)(0.01)(0.01)(0.01)0.07 
Average Stockholders' Equity to Average Assets11.36 12.59 11.62 12.67 
Tax Equivalent Yield on Average Earning Assets4.11 3.46 3.66 3.49 
Interest Expense/Average Earning Assets0.56 0.26 0.36 0.27 
Net Interest Margin (FTE) on Average Earning Assets3.55 3.20 3.30 3.22 
Efficiency Ratio53.34 51.18 54.95 50.10 
Tangible Common Book Value Per Share$19.26 $24.31 $19.26 $24.31 

NON-PERFORMING ASSETS
(Dollars In Thousands)September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Non-Accrual Loans$43,508 $45,970 $42,698 $43,062 $51,502 
Renegotiated Loans195 233 141 329 439 
Non-Performing Loans (NPL)43,703 46,203 42,839 43,391 51,941 
Other Real Estate Owned and Repossessions6,454 6,521 6,271 558 698 
Non-Performing Assets (NPA)50,157 52,724 49,110 43,949 52,639 
90+ Days Delinquent764 592 2,085 963 157 
NPAs & 90 Day Delinquent$50,921 $53,316 $51,195 $44,912 $52,796 
Allowance for Credit Losses - Loans$226,702 $226,275 $195,984 $195,397 $199,972 
Quarterly Net Charge-offs (Recoveries)(427)263 (587)4,575 (197)
NPAs / Actual Assets %0.28 %0.30 %0.32 %0.28 %0.35 %
NPAs & 90 Day / Actual Assets %0.29 %0.30 %0.33 %0.29 %0.35 %
NPAs / Actual Loans and OREO %0.43 %0.46 %0.52 %0.47 %0.58 %
Allowance for Credit Losses - Loans / Actual Loans (%)1.94 %1.98 %2.09 %2.11 %2.21 %
Net Charge-offs as % of Average Loans (Annualized)(0.01)%0.01 %(0.03)%0.20 %(0.01)%




CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)September 30,June 30,March 31,December 31,September 30,
20222022202220212021
ASSETS
Cash and due from banks$119,532 $212,559 $148,277 $167,146 $169,261 
Interest-bearing deposits179,593 136,702 395,262 474,154 369,447 
Investment securities, net of allowance for credit losses4,294,768 4,630,030 4,489,263 4,524,353 4,445,516 
Loans held for sale25,394 9,060 3,938 11,187 5,990 
Loans11,650,002 11,397,417 9,356,241 9,241,861 9,041,576 
Less: Allowance for credit losses - loans(226,702)(226,275)(195,984)(195,397)(199,972)
Net loans11,423,300 11,171,142 9,160,257 9,046,464 8,841,604 
Premises and equipment116,306 117,757 105,883 105,655 104,814 
Federal Home Loan Bank stock38,056 38,111 26,422 28,736 28,736 
Interest receivable71,605 68,728 56,081 57,187 53,079 
Goodwill and other intangibles750,713 753,649 569,494 570,860 572,323 
Cash surrender value of life insurance306,932 323,013 291,881 291,041 291,825 
Other real estate owned6,454 6,521 6,271 558 698 
Tax asset, deferred and receivable142,110 114,965 73,422 35,641 39,504 
Other assets244,222 198,255 138,807 140,167 137,928 
TOTAL ASSETS$17,718,985 $17,780,492 $15,465,258 $15,453,149 $15,060,725 
LIABILITIES
Deposits:
Noninterest-bearing$3,356,651 $3,435,331 $2,745,235 $2,709,646 $2,554,323 
Interest-bearing11,078,174 11,135,538 10,160,718 10,022,931 9,794,366 
Total Deposits14,434,825 14,570,869 12,905,953 12,732,577 12,348,689 
Borrowings:
Federal funds purchased185,000 100,000 — — — 
Securities sold under repurchase agreements194,482 186,468 169,697 181,577 183,589 
Federal Home Loan Bank advances643,769 598,865 308,960 334,055 334,149 
Subordinated debentures and other borrowings151,301 151,299 118,677 118,618 118,558 
Total Borrowings1,174,552 1,036,632 597,334 634,250 636,296 
Interest payable4,971 2,978 3,589 2,762 3,736 
Other liabilities197,971 192,372 150,749 170,989 203,914 
Total Liabilities15,812,319 15,802,851 13,657,625 13,540,578 13,192,635 
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 — — — 
Common Stock, $.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding7,393 7,383 6,678 6,676 6,689 
Additional paid-in capital1,226,695 1,226,378 987,404 985,818 988,659 
Retained earnings961,542 917,311 897,818 864,839 832,728 
Accumulated other comprehensive income (loss)(314,089)(198,556)(84,392)55,113 39,889 
Total Stockholders' Equity1,906,666 1,977,641 1,807,633 1,912,571 1,868,090 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$17,718,985 $17,780,492 $15,465,258 $15,453,149 $15,060,725 








CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)September 30,June 30,March 31,December 31,September 30,
20222022202220212021
INTEREST INCOME
Loans receivable:
Taxable$128,504 $106,787 $79,075 $80,583 $85,319 
Tax-exempt6,500 5,990 5,704 5,635 5,591 
Investment securities:
Taxable10,055 10,372 8,510 8,028 7,788 
Tax-exempt17,261 17,212 15,875 15,411 14,464 
Deposits with financial institutions704 610 230 173 218 
Federal Home Loan Bank stock314 175 146 163 168 
Total Interest Income163,338 141,146 109,540 109,993 113,548 
INTEREST EXPENSE
Deposits16,644 8,485 4,294 5,589 5,707 
Federal funds purchased418 76 — 1 — 
Securities sold under repurchase agreements372 134 89 75 77 
Federal Home Loan Bank advances3,493 1,774 1,218 1,389 1,389 
Subordinated debentures and other borrowings2,105 2,016 1,659 1,666 1,660 
Total Interest Expense23,032 12,485 7,260 8,720 8,833 
NET INTEREST INCOME140,306 128,661 102,280 101,273 104,715 
Provision for credit losses - loans— 16,755 — — — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES140,306 111,906 102,280 101,273 104,715 
NON-INTEREST INCOME
Service charges on deposit accounts7,165 7,690 6,419 6,462 6,249 
Fiduciary and wealth management fees7,221 7,634 7,332 7,078 7,352 
Card payment fees4,776 5,175 5,723 3,937 4,156 
Net gains and fees on sales of loans2,543 3,226 2,199 3,423 3,955 
Derivative hedge fees700 1,444 918 1,562 1,028 
Other customer fees501 662 410 361 393 
Earnings on cash surrender value of life insurance6,655 1,308 1,696 2,051 2,468 
Net realized gains on sales of available for sale securities481 90 566 358 1,756 
Other income (loss)(425)1,048 634 615 1,144 
Total Non-Interest Income29,617 28,277 25,897 25,847 28,501 
NON-INTEREST EXPENSES
Salaries and employee benefits56,002 56,041 42,519 42,432 43,314 
Net occupancy6,738 6,648 6,187 5,644 5,576 
Equipment5,997 6,720 5,080 4,994 4,529 
Marketing2,401 1,414 736 1,840 1,676 
Outside data processing fees6,827 4,881 4,363 4,581 4,794 
Printing and office supplies472 381 345 356 265 
Intangible asset amortization2,303 2,303 1,366 1,463 1,463 
FDIC assessments2,824 2,924 2,192 1,862 1,552 
Other real estate owned and foreclosure expenses328 (266)564 171 (91)
Professional and other outside services4,461 10,267 2,953 3,627 2,767 
Other expenses8,025 6,000 6,020 5,466 5,539 
Total Non-Interest Expenses96,378 97,313 72,325 72,436 71,384 
INCOME BEFORE INCOME TAX73,545 42,870 55,852 54,684 61,832 
Income tax expense9,793 3,879 7,266 6,951 9,062 
NET INCOME63,752 38,991 48,586 47,733 52,770 
Preferred stock dividends469 469 — — — 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$63,283 $38,522 $48,586 $47,733 $52,770 
Per Share Data:
Basic Net Income Available to Common Stockholders$1.08 $0.64 $0.91 $0.89 $0.98 
Diluted Net Income Available to Common Stockholders$1.08 $0.63 $0.91 $0.89 $0.98 
Cash Dividends Paid to Common Stockholders$0.32 $0.32 $0.29 $0.29 $0.29 
Average Diluted Common Shares Outstanding (in thousands)59,339 59,308 53,616 53,660 53,960 
FINANCIAL RATIOS:
Return on Average Assets1.43 %0.88 %1.26 %1.25 %1.41 %
Return on Average Stockholders' Equity12.54 7.62 10.28 10.10 11.17 
Return on Average Common Stockholders' Equity12.70 7.72 10.28 10.10 11.17 
Average Earning Assets to Average Assets92.90 92.45 92.23 91.86 91.57 
Allowance for Credit Losses - Loans as % of Total Loans1.94 1.98 2.09 2.11 2.21 
Net Charge-offs (Recoveries) as % of Average Loans (Annualized)(0.01)0.01 (0.03)0.20 (0.01)
Average Stockholders' Equity to Average Assets11.36 11.37 12.23 12.36 12.59 
Tax Equivalent Yield on Average Earning Assets4.11 3.58 3.23 3.29 3.46 
Interest Expense/Average Earning Assets0.56 0.30 0.20 0.25 0.26 
Net Interest Margin (FTE) on Average Earning Assets3.55 3.28 3.03 3.04 3.20 
Efficiency Ratio53.34 58.45 52.79 53.49 51.18 
Tangible Common Book Value Per Share$19.26 $20.45 $23.26 $25.21 $24.31 




LOANS
(Dollars In Thousands)September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Commercial and industrial loans$3,330,529 $3,297,477 $2,826,660 $2,714,565 $2,573,615 
Agricultural land, production and other loans to farmers221,954 214,904 209,077 246,442 240,686 
Real estate loans:
Construction828,923 745,983 552,975 523,066 521,889 
Commercial real estate, non-owner occupied2,299,272 2,423,185 2,073,197 2,135,459 2,150,387 
Commercial real estate, owner occupied1,268,567 1,264,563 974,521 986,720 952,441 
Residential1,990,668 1,813,297 1,226,695 1,159,127 1,154,373 
Home equity621,619 586,108 512,641 523,754 531,307 
Individuals' loans for household and other personal expenditures173,225 157,264 147,593 146,092 135,093 
Public finance and other commercial loans915,245 894,636 832,882 806,636 781,785 
Loans11,650,002 11,397,417 9,356,241 9,241,861 9,041,576 
Allowance for credit losses - loans(226,702)(226,275)(195,984)(195,397)(199,972)
NET LOANS$11,423,300 $11,171,142 $9,160,257 $9,046,464 $8,841,604 

DEPOSITS
(Dollars In Thousands)September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Demand deposits$8,534,950 $8,785,889 $7,806,033 $7,704,190 $7,317,399 
Savings deposits5,054,490 4,875,880 4,444,417 4,334,802 4,301,483 
Certificates and other time deposits of $100,000 or more443,588 436,942 252,033 273,379 283,396 
Other certificates and time deposits381,365 446,973 380,293 389,752 404,010 
Brokered deposits20,432 25,185 23,177 30,454 42,401 
TOTAL DEPOSITS$14,434,825 $14,570,869 $12,905,953 $12,732,577 $12,348,689 





CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
For the Three Months Ended
September 30, 2022September 30, 2021
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
Assets: 
Interest-bearing deposits$190,434 $704 1.48 %$539,377 $218 0.16 %
Federal Home Loan Bank stock38,089 314 3.30 28,736 168 2.34 
Investment Securities: (1)
 
Taxable2,091,608 10,055 1.92 1,843,026 7,788 1.69 
Tax-Exempt (2)
2,700,580 21,849 3.24 2,240,409 18,309 3.27 
Total Investment Securities4,792,188 31,904 2.66 4,083,435 26,097 2.56 
Loans held for sale20,039 266 5.74 17,426 158 3.63 
Loans: (3)
Commercial8,177,895 103,227 5.05 6,745,303 70,442 4.18 
Real Estate Mortgage1,666,173 14,701 3.53 886,469 8,142 3.67 
Installment813,112 10,310 5.07 690,093 6,576 3.81 
Tax-Exempt (2)
810,984 8,228 4.06 750,357 7,078 3.77 
Total Loans11,488,203 136,732 4.76 9,089,648 92,396 4.07 
Total Earning Assets16,508,914 169,654 4.11 %13,741,196 118,879 3.46 %
Total Non-Earning Assets1,261,709 1,264,891 
Total Assets$17,770,623 $15,006,087  
Liabilities:  
Interest-bearing deposits:  
Interest-bearing deposits$5,184,087 $8,723 0.67 %$4,799,624 $3,606 0.30 %
Money market deposits3,096,423 5,390 0.70 2,459,205 764 0.12 
Savings deposits1,978,596 1,538 0.31 1,788,281 486 0.11 
Certificates and other time deposits857,033 993 0.46 758,565 851 0.45 
Total Interest-bearing Deposits11,116,139 16,644 0.60 9,805,675 5,707 0.23 
Borrowings1,013,893 6,388 2.52 619,768 3,126 2.02 
Total Interest-bearing Liabilities12,130,032 23,032 0.76 10,425,443 8,833 0.34 
Noninterest-bearing deposits3,461,393 2,544,661  
Other liabilities161,042 146,946  
Total Liabilities15,752,467 13,117,050  
Stockholders' Equity2,018,156 1,889,037  
Total Liabilities and Stockholders' Equity$17,770,623 23,032 $15,006,087 8,833 
Net Interest Income (FTE)$146,622  $110,046 
Net Interest Spread (FTE) (4)
3.35 %  3.12 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets4.11 %3.46 %
Interest Expense / Average Earning Assets0.56 %0.26 %
Net Interest Margin (FTE) (5)
3.55 %3.20 %
(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 2022 and 2021. These totals equal $6,316 and $5,331 for the three months ended September 30, 2022 and 2021, 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, 2022September 30, 2021
Average BalanceInterest
 Income /
Expense		Average
Rate		Average BalanceInterest
 Income /
Expense		Average
Rate
Assets:
Interest-bearing deposits$333,818 $1,544 0.62 %$509,153 $461 0.12 %
Federal Home Loan Bank stock34,742 635 2.44 28,736 434 2.01 
Investment Securities: (1)
Taxable2,079,983 28,937 1.85 1,689,697 21,923 1.73 
Tax-Exempt (2)
2,647,547 63,732 3.21 1,989,397 50,532 3.39 
Total Investment Securities4,727,530 92,669 2.61 3,679,094 72,455 2.63 
Loans held for sale19,020 622 4.36 19,360 551 3.79 
Loans: (3)
Commercial7,731,591 253,770 4.38 6,857,968 210,502 4.09 
Real Estate Mortgage1,350,969 35,199 3.47 924,652 26,917 3.88 
Installment765,960 24,775 4.31 674,696 19,456 3.84 
Tax-Exempt (2)
780,410 23,030 3.93 725,651 20,854 3.83 
Total Loans10,647,950 337,396 4.22 9,202,327 278,280 4.03 
Total Earning Assets15,744,040 432,244 3.66 %13,419,310 351,630 3.49 %
Total Non-Earning Assets1,268,890 1,253,286 
Total Assets$17,012,930 $14,672,596 
Liabilities:
Interest-bearing deposits:
Interest-bearing deposits$5,195,249 $15,699 0.40 %$4,721,267 $10,875 0.31 %
Money market deposits2,880,603 8,392 0.39 2,295,589 2,395 0.14 
Savings deposits1,937,761 2,895 0.20 1,730,149 1,424 0.11 
Certificates and other time deposits828,158 2,437 0.39 809,721 3,036 0.50 
Total Interest-bearing Deposits10,841,771 29,423 0.36 9,556,726 17,730 0.25 
Borrowings817,894 13,354 2.18 646,326 9,502 1.96 
Total Interest-bearing Liabilities11,659,665 42,777 0.49 10,203,052 27,232 0.36 
Noninterest-bearing deposits3,232,925 2,460,609 
Other liabilities143,041 150,255 
Total Liabilities15,035,631 12,813,916 
Stockholders' Equity1,977,299 1,858,680 
Total Liabilities and Stockholders' Equity$17,012,930 42,777 $14,672,596 27,232 
Net Interest Income (FTE)$389,467 $324,398 
Net Interest Spread (FTE) (4)
3.17 %3.13 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets3.66 %3.49 %
Interest Expense / Average Earning Assets0.36 %0.27 %
Net Interest Margin (FTE) (5)
3.30 %3.22 %
(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 2022 and 2021. These totals equal $18,220 and $14,991 for the nine months ended September 30, 2022 and 2021, 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 EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2022202220222021202120222021
Net Income Available to Common Stockholders - GAAP$63,283 $38,522 $48,586 $47,733 $52,770 $150,391 $157,798 
Adjustments:
PPP loan income(323)(891)(1,884)(3,721)(8,211)(3,098)(27,179)
Acquisition-related expenses3,417 12,549 152 — — 16,118 — 
Acquisition-related provision expense— 16,755 — — — 16,755 — 
Tax on adjustment(759)(6,967)425 912 2,013 (7,301)6,664 
Adjusted Net Income Available to Common Stockholders - Non-GAAP$65,618 $59,968 $47,279 $44,924 $46,572 $172,865 $137,283 
Average Diluted Common Shares Outstanding (in thousands)59,339 59,308 53,616 53,660 53,960 57,468 54,093 
Diluted Earnings Per Common Share - GAAP$1.08 $0.63 $0.91 $0.89 $0.98 $2.62 $2.92 
Adjustments:
PPP loan income— (0.01)(0.04)(0.07)(0.15)(0.05)(0.50)
Acquisition-related expenses0.050.22— — — 0.27 — 
Acquisition-related provision expense— 0.30 — — — 0.30 — 
Tax on adjustment(0.01)-0.130.010.020.04(0.13)0.12
Adjusted Diluted Earnings Per Common Share - Non-GAAP$1.12 $1.01 $0.88 $0.84 $0.87 $3.01 $2.54