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 Administration765-521-7619http://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 INCOME Three 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
  AverageBalance   InterestIncome /Expense   AverageRate   AverageBalance   InterestIncome /Expense   AverageRate
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
  AverageBalance   InterestIncome /Expense   AverageRate   AverageBalance   InterestIncome /Expense   AverageRate
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 %
                                                       
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