First Merchants Corporation Announces Second Quarter 2024 Earnings Per Share

| Source: First Merchants Corporation First Merchants Corporation

MUNCIE, Ind., July 25, 2024 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)

Second Quarter 2024 Highlights:

  • Net income available to common stockholders was $39.5 million and diluted earnings per common share totaled $.68 in the second quarter of 2024, compared to $60.4 million and $1.02 in the second quarter of 2023, and $47.5 million and $.80 in the first quarter of 2024.
  • Strong capital position with Common Equity Tier 1 Capital Ratio of 11.02 percent.
  • Net interest margin totaled 3.16 percent compared to 3.10 percent on a linked quarter basis.
  • Total loans grew $191.2 million, or 6.1 percent annualized on a linked quarter basis, and $374.4 million, or 3.0 percent during the last twelve months.
  • Total deposits declined $315.5 million, or 8.5 percent annualized on a linked quarter basis.
  • Nonperforming assets to total assets were 36 basis points compared to 37 basis points on a linked quarter basis.
  • The efficiency ratio totaled 53.84 percent for the quarter.

Mark Hardwick, Chief Executive Officer, stated, "We are pleased that net interest margin improved by 6 basis points over the first quarter of 2024 and that net interest income increased by $1.5 million over the same period. Non-interest income and non-interest expense also compared favorably helping the company produce an efficiency ratio better than our stated key performance indicator of less than 55 percent." Hardwick added, "The elevated provision expense driven by higher than normal net charge-off’s was the singular item that weakened our performance in the quarter."

Second Quarter Financial Results:

First Merchants Corporation (the “Corporation”) has reported second quarter 2024 net income available to common stockholders of $39.5 million compared to $60.4 million during the same period in 2023. Diluted earnings per common share for the period totaled $.68 per share compared to the second quarter of 2023 result of $1.02 per share.

Total assets equaled $18.3 billion as of quarter-end and loans totaled $12.7 billion. During the past twelve months, total loans grew by $374.4 million, or 3.0 percent. On a linked quarter basis, loans grew $191.2 million, or 6.1 percent with growth primarily in Commercial & Industrial loans.

Investments, totaling $3.8 billion, decreased $138.4 million, or 3.6 percent, during the last twelve months and decreased $30.5 million, or 3.2 percent annualized on a linked quarter basis.

Total deposits equaled $14.6 billion as of quarter-end and decreased by $12.1 million over the past twelve months. Total deposits declined $315.5 million, or 8.5 percent annualized on a linked quarter basis with noninterest-bearing deposits remaining stable. The loan to deposit ratio for the current quarter ended at 87.0 percent.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $189.5 million as of quarter-end, or 1.50 percent of total loans. Loan charge-offs, net of recoveries, for the quarter totaled $39.6 million and provision expense of $24.5 million was recorded during the quarter.  Reserves for unfunded commitments totaling $19.5 million remain unchanged from prior quarter. Non-performing assets to total assets were 0.36 percent for the second quarter of 2024, a decrease of one basis point compared to 0.37 percent in the prior quarter.

Net interest income, totaling $128.6 million for the quarter, increased $1.5 million, or 1.2 percent, compared to prior quarter but decreased $9.3 million, or 6.7 percent compared to the second quarter of 2023. Stated net-interest margin on a tax equivalent basis, totaling 3.16 percent, increased by six basis points compared to the first quarter of 2024 but decreased 23 basis points compared to the second quarter of 2023. During the quarter, higher yields on earnings assets and lower yields on interest bearing liabilities both contributed to the increase in net-interest margin over last quarter.

Noninterest income, totaling $31.3 million for the quarter, increased $4.7 million, or 17.6 percent, compared to the first quarter of 2024 and increased $5.0 million from the second quarter of 2023. The increase over first quarter of 2024 was driven primarily by higher gains on the sales of loans, private wealth fees, and an increase in CRA investment valuations recorded through Other Income on the Income Statement.

Noninterest expense totaled $91.4 million for the quarter, a decline of $5.5 million from the first quarter of 2024. The decrease was from lower salaries and employee benefits and lower FDIC assessments, offset by the inclusion of $0.7 million of gains on the sale of properties in the prior quarter which were recorded in Other Expenses.

The Corporation’s total risk-based capital ratio equaled 12.95 percent, common equity tier 1 capital ratio equaled 11.02 percent, and the tangible common equity ratio totaled 8.27 percent. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, July 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/BId0844162db694c8f80a4e6caa546f714)

In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/d6tnudnp) during the time of the call. A replay of the webcast will be available until July 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.

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

CONSOLIDATED BALANCE SHEETS   
(Dollars In Thousands)June 30,
  2024   2023 
ASSETS   
Cash and due from banks$105,372  $108,975 
Interest-bearing deposits 168,528   219,480 
Investment securities, net of allowance for credit losses of $245,000 and $245,000 3,753,088   3,891,491 
Loans held for sale 32,292   27,297 
Loans 12,639,650   12,270,233 
Less: Allowance for credit losses - loans (189,537)  (221,147)
Net loans 12,450,113   12,049,086 
Premises and equipment 133,245   114,402 
Federal Home Loan Bank stock 41,738   41,842 
Interest receivable 97,546   89,784 
Goodwill and other intangibles 735,373   743,465 
Cash surrender value of life insurance 306,379   307,020 
Other real estate owned 4,824   7,685 
Tax asset, deferred and receivable 107,080   113,724 
Other assets 367,845   318,005 
TOTAL ASSETS$18,303,423  $18,032,256 
LIABILITIES   
Deposits:   
Noninterest-bearing$2,303,313  $2,636,017 
Interest-bearing 12,265,757   11,945,138 
Total Deposits 14,569,070   14,581,155 
Borrowings:   
Federal funds purchased 147,229   — 
Securities sold under repurchase agreements 100,451   152,472 
Federal Home Loan Bank advances 832,703   723,480 
Subordinated debentures and other borrowings 93,589   151,325 
Total Borrowings 1,173,972   1,027,277 
Interest payable 18,554   13,595 
Other liabilities 329,302   264,664 
Total Liabilities 16,090,898   15,886,691 
STOCKHOLDERS' EQUITY   
Preferred Stock, $1,000 par value, $1,000 liquidation value:   
Authorized -- 600 cumulative shares   
Issued and outstanding - 125 cumulative shares 125   125 
Preferred Stock, Series A, no par value, $2,500 liquidation preference:   
Authorized -- 10,000 non-cumulative perpetual shares   
Issued and outstanding - 10,000 non-cumulative perpetual shares 25,000   25,000 
Common Stock, $.125 stated value:   
Authorized -- 100,000,000 shares   
Issued and outstanding - 58,045,653 and 59,297,148 shares 7,256   7,412 
Additional paid-in capital 1,191,193   1,233,593 
Retained earnings 1,200,930   1,097,399 
Accumulated other comprehensive loss (211,979)  (217,964)
Total Stockholders' Equity 2,212,525   2,145,565 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,303,423  $18,032,256 


CONSOLIDATED STATEMENTS OF INCOMEThree Months Ended Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)June 30, June 30,
  2024   2023   2024   2023 
INTEREST INCOME       
Loans receivable:       
Taxable$201,413  $186,256  $399,436  $358,609 
Tax-exempt 8,430   7,760   16,620   15,469 
Investment securities:       
Taxable 9,051   8,886   17,799   17,973 
Tax-exempt 13,613   14,279   27,224   30,349 
Deposits with financial institutions 2,995   3,164   9,488   3,801 
Federal Home Loan Bank stock 879   1,020   1,714   1,562 
Total Interest Income 236,381   221,365   472,281   427,763 
INTEREST EXPENSE       
Deposits 99,151   73,201   197,436   123,886 
Federal funds purchased 126   123   126   1,420 
Securities sold under repurchase agreements 645   979   1,677   1,827 
Federal Home Loan Bank advances 6,398   6,815   13,171   13,879 
Subordinated debentures and other borrowings 1,490   2,412   4,237   4,797 
Total Interest Expense 107,810   83,530   216,647   145,809 
NET INTEREST INCOME 128,571   137,835   255,634   281,954 
Provision for credit losses 24,500   —   26,500   — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 104,071   137,835   229,134   281,954 
NONINTEREST INCOME       
Service charges on deposit accounts 8,214   7,813   16,121   15,172 
Fiduciary and wealth management fees 8,825   7,397   17,025   15,259 
Card payment fees 4,739   4,537   9,239   9,709 
Net gains and fees on sales of loans 5,141   3,632   8,395   6,031 
Derivative hedge fees 489   672   752   1,820 
Other customer fees 460   742   887   1,259 
Earnings on cash surrender value of life insurance 1,929   2,096   3,521   3,384 
Net realized losses on sales of available for sale securities (49)  (1,392)  (51)  (2,963)
Other income 1,586   822   2,083   1,645 
Total Noninterest Income 31,334   26,319   57,972   51,316 
NONINTEREST EXPENSES       
Salaries and employee benefits 52,214   54,753   110,507   112,212 
Net occupancy 6,746   6,674   14,058   13,933 
Equipment 6,599   6,181   12,825   12,307 
Marketing 1,773   1,102   2,971   2,411 
Outside data processing fees 7,072   6,604   13,961   12,717 
Printing and office supplies 354   434   707   817 
Intangible asset amortization 1,771   2,182   3,728   4,379 
FDIC assessments 3,278   2,740   7,565   4,136 
Other real estate owned and foreclosure expenses 373   916   907   898 
Professional and other outside services 3,822   4,660   7,774   8,358 
Other expenses 7,411   6,347   13,345   14,145 
Total Noninterest Expenses 91,413   92,593   188,348   186,313 
INCOME BEFORE INCOME TAX 43,992   71,561   98,758   146,957 
Income tax expense 4,067   10,699   10,892   22,016 
NET INCOME 39,925   60,862   87,866   124,941 
Preferred stock dividends 469   469   938   938 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$39,456  $60,393  $86,928  $124,003 
        
Per Share Data:       
Basic Net Income Available to Common Stockholders$0.68  $1.02  $1.48  $2.09 
Diluted Net Income Available to Common Stockholders$0.68  $1.02  $1.48  $2.09 
Cash Dividends Paid to Common Stockholders$0.35  $0.34  $0.69  $0.66 
Average Diluted Common Shares Outstanding (in thousands) 58,328   59,448   58,800   59,446 


FINANCIAL HIGHLIGHTS       
(Dollars in thousands)Three Months Ended Six Months Ended
 June 30, June 30,
  2024   2023   2024   2023 
NET CHARGE-OFFS$39,644  $1,905  $41,897  $2,130 
        
AVERAGE BALANCES:       
Total Assets$18,332,159  $18,170,649  $18,381,340  $18,096,832 
Total Loans 12,620,530   12,369,673   12,548,798   12,253,176 
Total Earning Assets 17,013,984   16,968,465   17,068,917   16,896,834 
Total Deposits 14,895,867   14,719,913   14,888,536   14,572,480 
Total Stockholders' Equity 2,203,361   2,139,877   2,222,750   2,111,658 
        
FINANCIAL RATIOS:       
Return on Average Assets 0.87%  1.34%  0.96%  1.38%
Return on Average Stockholders' Equity 7.16   11.29   7.82   11.74 
Return on Tangible Common Stockholders' Equity 11.29   18.04   12.26   18.91 
Average Earning Assets to Average Assets 92.81   93.38   92.86   93.37 
Allowance for Credit Losses - Loans as % of Total Loans 1.50   1.80   1.50   1.80 
Net Charge-offs as % of Average Loans (Annualized) 1.26   0.06   0.67   0.03 
Average Stockholders' Equity to Average Assets 12.02   11.78   12.09   11.67 
Tax Equivalent Yield on Average Earning Assets 5.69   5.36   5.67   5.21 
Interest Expense/Average Earning Assets 2.53   1.97   2.54   1.73 
Net Interest Margin (FTE) on Average Earning Assets 3.16   3.39   3.13   3.48 
Efficiency Ratio 53.84   52.21   56.47   51.96 
Tangible Common Book Value Per Share$25.10  $23.34  $25.10  $23.34 


NONPERFORMING ASSETS         
(Dollars In Thousands)June 30, March 31, December 31, September 30, June 30,
  2024   2024   2023   2023   2023 
Nonaccrual Loans$61,906  $62,478  $53,580  $53,102  $69,240 
Other Real Estate Owned and Repossessions 4,824   4,886   4,831   6,480   7,685 
Nonperforming Assets (NPA) 66,730   67,364   58,411   59,582   76,925 
90+ Days Delinquent 1,686   2,838   172   89   428 
NPAs & 90 Day Delinquent$68,416  $70,202  $58,583  $59,671  $77,353 
          
Allowance for Credit Losses - Loans$189,537  $204,681  $204,934  $205,782  $221,147 
Quarterly Net Charge-offs 39,644   2,253   3,148   20,365   1,905 
NPAs / Actual Assets % 0.36%  0.37%  0.32%  0.33%  0.43%
NPAs & 90 Day / Actual Assets % 0.37%  0.38%  0.32%  0.33%  0.43%
NPAs / Actual Loans and OREO % 0.53%  0.54%  0.47%  0.48%  0.63%
Allowance for Credit Losses - Loans / Actual Loans (%) 1.50%  1.64%  1.64%  1.67%  1.80%
Net Charge-offs (Recoveries) as % of Average Loans (Annualized) 1.26%  0.07%  0.10%  0.66%  0.06%


CONSOLIDATED BALANCE SHEETS         
(Dollars In Thousands)June 30, March 31, December 31, September 30, June 30,
  2024   2024   2023   2023   2023 
ASSETS         
Cash and due from banks$105,372  $100,514  $112,649  $125,173  $108,975 
Interest-bearing deposits 168,528   410,497   436,080   348,639   219,480 
Investment securities, net of allowance for credit losses 3,753,088   3,783,574   3,811,364   3,713,724   3,891,491 
Loans held for sale 32,292   15,118   18,934   30,972   27,297 
Loans 12,639,650   12,465,582   12,486,027   12,271,422   12,270,233 
Less: Allowance for credit losses - loans (189,537)  (204,681)  (204,934)  (205,782)  (221,147)
Net loans 12,450,113   12,260,901   12,281,093   12,065,640   12,049,086 
Premises and equipment 133,245   132,706   133,896   132,441   114,402 
Federal Home Loan Bank stock 41,738   41,758   41,769   41,797   41,842 
Interest receivable 97,546   92,550   97,664   90,011   89,784 
Goodwill and other intangibles 735,373   737,144   739,101   741,283   743,465 
Cash surrender value of life insurance 306,379   306,028   306,301   306,106   307,020 
Other real estate owned 4,824   4,886   4,831   6,480   7,685 
Tax asset, deferred and receivable 107,080   101,121   99,883   135,521   113,724 
Other assets 367,845   331,006   322,322   340,476   318,005 
TOTAL ASSETS$18,303,423  $18,317,803  $18,405,887  $18,078,263  $18,032,256 
LIABILITIES         
Deposits:         
Noninterest-bearing$2,303,313  $2,338,364  $2,500,062  $2,554,984  $2,636,017 
Interest-bearing 12,265,757   12,546,220   12,321,391   12,091,592   11,945,138 
Total Deposits 14,569,070   14,884,584   14,821,453   14,646,576   14,581,155 
Borrowings:         
Federal funds purchased 147,229   —   —   —   — 
Securities sold under repurchase agreements 100,451   130,264   157,280   152,537   152,472 
Federal Home Loan Bank advances 832,703   612,778   712,852   713,384   723,480 
Subordinated debentures and other borrowings 93,589   118,612   158,644   158,665   151,325 
Total Borrowings 1,173,972   861,654   1,028,776   1,024,586   1,027,277 
Interest payable 18,554   19,262   18,912   16,473   13,595 
Other liabilities 329,302   327,500   289,033   297,984   264,664 
Total Liabilities 16,090,898   16,093,000   16,158,174   15,985,619   15,886,691 
STOCKHOLDERS' EQUITY         
Preferred Stock, $1,000 par value, $1,000 liquidation value:         
Authorized -- 600 cumulative shares         
Issued and outstanding - 125 cumulative shares 125   125   125   125   125 
Preferred Stock, Series A, no par value, $2,500 liquidation preference:         
Authorized -- 10,000 non-cumulative perpetual shares         
Issued and outstanding - 10,000 non-cumulative perpetual shares 25,000   25,000   25,000   25,000   25,000 
Common Stock, $.125 stated value:         
Authorized -- 100,000,000 shares         
Issued and outstanding 7,256   7,321   7,428   7,425   7,412 
Additional paid-in capital 1,191,193   1,208,447   1,236,506   1,234,402   1,233,593 
Retained earnings 1,200,930   1,181,939   1,154,624   1,132,962   1,097,399 
Accumulated other comprehensive loss (211,979)  (198,029)  (175,970)  (307,270)  (217,964)
Total Stockholders' Equity 2,212,525   2,224,803   2,247,713   2,092,644   2,145,565 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,303,423  $18,317,803  $18,405,887  $18,078,263  $18,032,256 
          


CONSOLIDATED STATEMENTS OF INCOME         
(Dollars In Thousands, Except Per Share Amounts)June 30, March 31, December 31, September 30, June 30,
  2024   2024   2023   2023   2023 
INTEREST INCOME         
Loans receivable:         
Taxable$201,413  $198,023  $197,523  $191,705  $186,256 
Tax-exempt 8,430   8,190   8,197   8,288   7,760 
Investment securities:         
Taxable 9,051   8,748   8,644   8,590   8,886 
Tax-exempt 13,613   13,611   13,821   13,947   14,279 
Deposits with financial institutions 2,995   6,493   8,034   5,884   3,164 
Federal Home Loan Bank stock 879   835   771   719   1,020 
Total Interest Income 236,381   235,900   236,990   229,133   221,365 
INTEREST EXPENSE         
Deposits 99,151   98,285   96,655   85,551   73,201 
Federal funds purchased 126   —   1   —   123 
Securities sold under repurchase agreements 645   1,032   827   797   979 
Federal Home Loan Bank advances 6,398   6,773   6,431   6,896   6,815 
Subordinated debentures and other borrowings 1,490   2,747   3,013   2,506   2,412 
Total Interest Expense 107,810   108,837   106,927   95,750   83,530 
NET INTEREST INCOME 128,571   127,063   130,063   133,383   137,835 
Provision for credit losses 24,500   2,000   1,500   2,000   — 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 104,071   125,063   128,563   131,383   137,835 
NONINTEREST INCOME         
Service charges on deposit accounts 8,214   7,907   7,690   7,975   7,813 
Fiduciary and wealth management fees 8,825   8,200   8,187   7,394   7,397 
Card payment fees 4,739   4,500   4,437   4,716   4,537 
Net gains and fees on sales of loans 5,141   3,254   4,111   5,517   3,632 
Derivative hedge fees 489   263   1,049   516   672 
Other customer fees 460   427   237   384   742 
Earnings on cash surrender value of life insurance 1,929   1,592   3,202   1,761   2,096 
Net realized losses on sales of available for sale securities (49)  (2)  (2,317)  (1,650)  (1,392)
Other income (loss) 1,586   497   (152)  1,229   822 
Total Noninterest Income 31,334   26,638   26,444   27,842   26,319 
NONINTEREST EXPENSES         
Salaries and employee benefits 52,214   58,293   60,967   55,566   54,753 
Net occupancy 6,746   7,312   9,089   6,837   6,674 
Equipment 6,599   6,226   6,108   5,698   6,181 
Marketing 1,773   1,198   2,647   2,369   1,102 
Outside data processing fees 7,072   6,889   5,875   6,573   6,604 
Printing and office supplies 354   353   402   333   434 
Intangible asset amortization 1,771   1,957   2,182   2,182   2,182 
FDIC assessments 3,278   4,287   7,557   2,981   2,740 
Other real estate owned and foreclosure expenses 373   534   1,743   677   916 
Professional and other outside services 3,822   3,952   3,981   3,833   4,660 
Other expenses 7,411   5,934   7,552   6,805   6,347 
Total Noninterest Expenses 91,413   96,935   108,103   93,854   92,593 
INCOME BEFORE INCOME TAX 43,992   54,766   46,904   65,371   71,561 
Income tax expense 4,067   6,825   4,425   9,005   10,699 
NET INCOME 39,925   47,941   42,479   56,366   60,862 
Preferred stock dividends 469   469   469   468   469 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$39,456  $47,472  $42,010  $55,898  $60,393 
Per Share Data:         
Basic Net Income Available to Common Stockholders$0.68  $0.80  $0.71  $0.95  $1.02 
Diluted Net Income Available to Common Stockholders$0.68  $0.80  $0.71  $0.94  $1.02 
Cash Dividends Paid to Common Stockholders$0.35  $0.34  $0.34  $0.34  $0.34 
Average Diluted Common Shares Outstanding (in thousands) 58,328   59,273   59,556   59,503   59,448 
FINANCIAL RATIOS:         
Return on Average Assets 0.87%  1.04%  0.92%  1.24%  1.34%
Return on Average Stockholders' Equity 7.16   8.47   7.89   10.38   11.29 
Return on Tangible Common Stockholders' Equity 11.29   13.21   12.75   16.54   18.04 
Average Earning Assets to Average Assets 92.81   92.91   93.62   93.36   93.38 
Allowance for Credit Losses - Loans as % of Total Loans 1.50   1.64   1.64   1.67   1.80 
Net Charge-offs as % of Average Loans (Annualized) 1.26   0.07   0.10   0.66   0.06 
Average Stockholders' Equity to Average Assets 12.02   12.17   11.58   11.87   11.78 
Tax Equivalent Yield on Average Earning Assets 5.69   5.65   5.64   5.55   5.36 
Interest Expense/Average Earning Assets 2.53   2.55   2.48   2.26   1.97 
Net Interest Margin (FTE) on Average Earning Assets 3.16   3.10   3.16   3.29   3.39 
Efficiency Ratio 53.84   59.21   63.26   53.91   52.21 
Tangible Common Book Value Per Share$25.10  $25.07  $25.06  $22.43  $23.34 


LOANS         
(Dollars In Thousands)June 30, March 31, December 31, September 30, June 30,
  2024   2024   2023   2023   2023 
Commercial and industrial loans$3,949,817  $3,722,365  $3,670,948  $3,490,953  $3,531,395 
Agricultural land, production and other loans to farmers 239,926   234,431   263,414   233,838   230,003 
Real estate loans:         
Construction 823,267   941,726   957,545   1,022,261   949,918 
Commercial real estate, non-owner occupied 2,323,533   2,368,360   2,400,839   2,360,596   2,379,819 
Commercial real estate, owner occupied 1,174,195   1,137,894   1,162,083   1,153,707   1,179,739 
Residential 2,370,905   2,316,490   2,288,921   2,257,385   2,248,473 
Home equity 631,104   618,258   617,571   609,352   614,366 
Individuals' loans for household and other personal expenditures 162,089   161,459   168,388   176,523   172,896 
Public finance and other commercial loans 964,814   964,599   956,318   966,807   963,624 
Loans 12,639,650   12,465,582   12,486,027   12,271,422   12,270,233 
Allowance for credit losses - loans (189,537)  (204,681)  (204,934)  (205,782)  (221,147)
NET LOANS$12,450,113  $12,260,901  $12,281,093  $12,065,640  $12,049,086 


DEPOSITS         
(Dollars In Thousands)June 30, March 31, December 31, September 30, June 30,
  2024  2024  2023  2023  2023
Demand deposits$7,757,679 $7,771,976 $7,965,862 $7,952,040 $8,045,455
Savings deposits 4,339,161  4,679,593  4,516,433  4,572,162  4,530,255
Certificates and other time deposits of $100,000 or more 1,415,131  1,451,443  1,408,985  1,280,607  1,160,303
Other certificates and time deposits 889,949  901,280  849,906  761,196  680,965
Brokered certificates of deposits 167,150  80,292  80,267  80,571  164,177
TOTAL DEPOSITS$14,569,070 $14,884,584 $14,821,453 $14,646,576 $14,581,155


CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS      
(Dollars in Thousands)           
 For the Three Months Ended
 June 30, 2024 June 30, 2023
 Average
Balance		 Interest
Income /
Expense		 Average
Rate		 Average
Balance		 Interest
Income /
Expense		 Average
Rate
ASSETS           
Interest-bearing deposits$322,647 $2,995 3.71% $343,253 $3,164 3.69%
Federal Home Loan Bank stock 41,749  879 8.42   41,873  1,020 9.74 
Investment Securities:(1)           
Taxable 1,788,749  9,051 2.02   1,876,676  8,886 1.89 
Tax-exempt(2) 2,240,309  17,232 3.08   2,336,990  18,075 3.09 
Total Investment Securities 4,029,058  26,283 2.61   4,213,666  26,961 2.56 
Loans held for sale 28,585  431 6.03   19,328  300 6.21 
Loans:(3)           
Commercial 8,691,746  160,848 7.40   8,605,339  150,766 7.01 
Real estate mortgage 2,150,591  23,799 4.43   2,031,136  20,345 4.01 
Installment 823,417  16,335 7.94   831,775  14,844 7.14 
Tax-exempt(2) 926,191  10,670 4.61   882,095  9,823 4.45 
Total Loans 12,620,530  212,083 6.72   12,369,673  196,078 6.34 
Total Earning Assets 17,013,984  242,240 5.69%  16,968,465  227,223 5.36%
Total Non-Earning Assets 1,318,175      1,202,184    
TOTAL ASSETS$18,332,159     $18,170,649    
LIABILITIES           
Interest-Bearing Deposits:           
Interest-bearing deposits$5,586,549 $40,994 2.94% $5,546,232 $34,574 2.49%
Money market deposits 3,036,398  27,230 3.59   2,766,876  18,684 2.70 
Savings deposits 1,508,734  3,476 0.92   1,724,816  3,884 0.90 
Certificates and other time deposits 2,414,967  27,451 4.55   1,883,998  16,059 3.41 
Total Interest-Bearing Deposits 12,546,648  99,151 3.16   11,921,922  73,201 2.46 
Borrowings 885,919  8,659 3.91   1,110,486  10,329 3.72 
Total Interest-Bearing Liabilities 13,432,567  107,810 3.21   13,032,408  83,530 2.56 
Noninterest-bearing deposits 2,349,219      2,797,991    
Other liabilities 347,012      200,373    
Total Liabilities 16,128,798      16,030,772    
STOCKHOLDERS' EQUITY 2,203,361      2,139,877    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$18,332,159  107,810   $18,170,649  83,530  
Net Interest Income (FTE)  $134,430     $143,693  
Net Interest Spread (FTE)(4)    2.48%     2.80%
            
Net Interest Margin (FTE):           
Interest Income (FTE) / Average Earning Assets    5.69%     5.36%
Interest Expense / Average Earning Assets    2.53%     1.97%
Net Interest Margin (FTE)(5)    3.16%     3.39%
            
(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 $5,859 and $5,858 for the three months ended June 30, 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 Six Months Ended
 June 30, 2024 June 30, 2023
 Average
Balance		 Interest
Income /
Expense		 Average
Rate		 Average
Balance		 Interest
Income /
Expense		 Average
Rate
Assets:           
Federal Funds Sold           
Interest-bearing deposits$449,173 $9,488 4.22% $258,504 $3,801 2.94%
Federal Home Loan Bank stock 41,757  1,714 8.21   40,821  1,562 7.65 
Investment Securities:(1)           
Taxable 1,785,903  17,799 1.99   1,900,247  17,973 1.89 
Tax-exempt(2) 2,243,286  34,461 3.07   2,444,086  38,416 3.14 
Total Investment Securities 4,029,189  52,260 2.59   4,344,333  56,389 2.60 
Loans held for sale 25,184  759 6.03   21,952  660 6.01 
Loans:(3)           
Commercial 8,644,927  320,057 7.40   8,544,945  290,428 6.80 
Real estate mortgage 2,140,769  46,156 4.31   1,972,680  38,736 3.93 
Installment 822,616  32,464 7.89   836,088  28,785 6.89 
Tax-exempt(2) 915,302  21,038 4.60   877,511  19,581 4.46 
Total Loans 12,548,798  420,474 6.70   12,253,176  378,190 6.17 
Total Earning Assets 17,068,917  483,936 5.67%  16,896,834  439,942 5.21%
Total Non-Earning Assets 1,312,423      1,199,998    
Total Assets$18,381,340     $18,096,832    
Liabilities:           
Interest-Bearing deposits:           
Interest-bearing deposits$5,503,185 $80,484 2.92% $5,405,696 $59,237 2.19%
Money market deposits 3,040,938  54,613 3.59   2,756,519  32,261 2.34 
Savings deposits 1,534,305  7,277 0.95   1,775,233  6,849 0.77 
Certificates and other time deposits 2,421,413  55,062 4.55   1,676,291  25,539 3.05 
Total Interest-Bearing Deposits 12,499,841  197,436 3.16   11,613,739  123,886 2.13 
Borrowings 948,866  19,211 4.05   1,201,392  21,923 3.65 
Total Interest-Bearing Liabilities 13,448,707  216,647 3.22   12,815,131  145,809 2.28 
Noninterest-bearing deposits 2,388,695      2,958,741    
Other liabilities 321,188      211,302    
Total Liabilities 16,158,590      15,985,174    
Stockholders' Equity 2,222,750      2,111,658    
Total Liabilities and Stockholders' Equity$18,381,340  216,647   $18,096,832  145,809  
   Net Interest Income (FTE)  $267,289     $294,133  
   Net Interest Spread (FTE)(4)    2.45%     2.93%
            
Net Interest Margin (FTE):           
Interest Income (FTE) / Average Earning Assets    5.67%     5.21%
Interest Expense / Average Earning Assets    2.54%     1.73%
   Net Interest Margin (FTE)(5)    3.13%     3.48%
            
(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 $11,655 and $12,179 for the six months ended June 30, 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 Ended Six Months Ended
 June 30, March 31, December 31, September 30, June 30, June 30, June 30,
  2024  2024   2023   2023   2023   2024   2023 
Net Income Available to Common Stockholders - GAAP$39,456 $47,472  $42,010  $55,898  $60,393  $86,928  $124,003 
Adjustments:             
PPP loan income —  —   (7)  (8)  (9)  —   (34)
Non-core expenses1,2 —  3,481   12,682   —   —   3,481   — 
Tax on adjustments —  (848)  (3,088)  2   2   (848)  8 
Adjusted Net Income Available to Common Stockholders - Non-GAAP$39,456 $50,105  $51,597  $55,892  $60,386  $89,561  $123,977 
              
Average Diluted Common Shares Outstanding (in thousands) 58,328  59,273   59,556   59,503   59,448   58,800   59,446 
              
Diluted Earnings Per Common Share - GAAP$0.68 $0.80  $0.71  $0.94  $1.02  $1.48  $2.09 
Adjustments:             
PPP loan income —  —   —   —   —   —   — 
Non-core expenses1,2 —  0.06   0.21   —   —   0.06   — 
Tax on adjustments —  (0.01)  (0.05)  —   —   (0.01)  — 
Adjusted Diluted Earnings Per Common Share - Non-GAAP$0.68 $0.85  $0.87  $0.94  $1.02  $1.53  $2.09 

1 - 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.
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.

         
NET INTEREST MARGIN ("NIM"), ADJUSTED        
(Dollars in Thousands, Except Per Share Amounts)        
 Three Months Ended Six Months Ended
 June 30, March 31, December 31, September 30, June 30, June 30, June 30,
  2024   2024   2023   2023   2023   2024   2023 
Net Interest Income (GAAP)$128,571  $127,063  $130,063  $133,383  $137,835  $255,634  $281,954 
Fully Taxable Equivalent ("FTE") Adjustment 5,859   5,795   5,853   5,911   5,858   11,655   12,179 
Net Interest Income (FTE) (non-GAAP)$134,430  $132,858  $135,916  $139,294  $143,693  $267,289  $294,133 
              
Average Earning Assets (GAAP)$17,013,984  $17,123,851  $17,222,714  $16,947,669  $16,968,465  $17,068,917  $16,896,834 
Net Interest Margin (GAAP) 3.02%  2.97%  3.02%  3.15%  3.25%  3.00%  3.34%
Net Interest Margin (FTE) (non-GAAP) 3.16%  3.10%  3.16%  3.29%  3.39%  3.13%  3.48%


RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands)Three Months Ended Six Months Ended
 June 30, March 31, December 31, September 30, June 30, June 30, June 30,
  2024   2024   2023   2023   2023   2024   2023 
Total Average Stockholders' Equity (GAAP)$2,203,361  $2,242,139  $2,130,993  $2,154,232  $2,139,877  $2,222,750  $2,111,658 
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 (730,980)  (732,432)  (734,007)  (735,787)  (737,489)  (731,706)  (738,334)
Average Tangible Common Equity, Net of Tax (Non-GAAP)$1,447,256  $1,484,582  $1,371,861  $1,393,320  $1,377,263  $1,465,919  $1,348,199 
              
Net Income Available to Common Stockholders (GAAP)$39,456  $47,472  $42,010  $55,898  $60,393  $86,928  $124,003 
Plus: Intangible Asset Amortization, Net of Tax 1,399   1,546   1,724   1,724   1,724   2,945   3,458 
Tangible Net Income (Non-GAAP)$40,855  $49,018  $43,734  $57,622  $62,117  $89,873  $127,461 
              
Return on Tangible Common Equity (Non-GAAP) 11.29%  13.21%  12.75%  16.54%  18.04%  12.26%  18.91%