MUNCIE, Ind., Jan. 25, 2024 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME)
Fourth Quarter 2023 Highlights:
- Net income available to common stockholders was $42.0 million and diluted earnings per common share totaled $0.71 compared to $70.3 million and $1.19 in the fourth quarter of 2022, and $55.9 million and $0.94 in the third quarter of 2023. Net income and diluted earnings per common share, excluding one-time charges of $12.7 million incurred during the quarter, totaled $51.6 million and $0.87, respectively.
- Strong capital position with Common Equity Tier 1 Capital Ratio of 11.35 percent.
- Total loans grew $202.6 million, or 6.6 percent annualized on a linked quarter basis, and $608.6 million, or 5.1 percent during the last twelve months when excluding the impact of a non-relationship commercial loan portfolio sale of $116.6 million that occurred during the second quarter.
- Total deposits increased $174.9 million, or 4.8 percent annualized on a linked quarter basis, and $438.7 million, or 3.1 percent during the last twelve months.
- Nonaccrual loans totaled $53.6 million compared to $53.1 million on a linked quarter basis.
- The efficiency ratio totaled 63.26 percent for the quarter and 55.56% excluding $12.7 million of one-time charges incurred during the quarter.
Mark Hardwick, Chief Executive Officer, stated, "During a year where safety and soundness became the highest priority of stakeholders, we are very pleased with the positioning of our balance sheet. The Bank's liquidity position improved by $585 million as cash increased by $300 million and borrowings declined by $285 million year over year. Our tangible common equity increased by $222 million driving our tangible common equity ratio from 7.37 percent to 8.44 percent and the allowance to loans continues to be top decile totaling 1.64 percent." Hardwick added, "Our team built this resilient balance sheet while also producing core loan growth of just over 5 percent and deposit growth of 3 percent. In a year with large bank failures, our company produced solid results with net income totaling $222 million, a strong ROA of 1.23%, and an efficiency ratio of 55%. These results are without any adjustments for one-time charges totaling $12.7 million which were incurred in the fourth quarter. The actions taken during the quarter to reduce costs will lead to an even more efficient franchise in 2024."
Fourth Quarter Financial Results:
First Merchants Corporation (the "Corporation") has reported fourth quarter 2023 net income available to common stockholders of $42.0 million compared to $70.3 million during the same period in 2022. Diluted earnings per common share for the period totaled $0.71 per share compared to the fourth quarter of 2022 result of $1.19 per share. The corporation incurred $12.7 million of one-time charges during the quarter including $4.3 million from an FDIC special assessment, $6.3 million from employee early retirement and severance costs, and $2.1 million from a lease termination.
Total assets equaled $18.3 billion as of quarter-end and loans totaled $12.5 billion. During the past twelve months, total loans grew by $608.6 million, or 5.1 percent and were offset by a non-relationship based commercial loan sale of $116.6 million that occurred in the second quarter. On a linked quarter basis, loans grew $202.6 million, or 6.6 percent annualized.
Investments securities, totaling $3.8 billion, decreased $452.4 million, or 10.6 percent, during the last twelve months and increased $97.6 million, or 10.5 percent annualized on a linked quarter basis. The increase during the fourth quarter was due to a $163.1 million increase in value of available for sale securities offset by bond sales of $43.3 million and security paydowns and maturities.
Total deposits equaled $14.8 billion as of quarter-end and increased by $438.7 million, or 3.1 percent, over the past twelve months. Total deposits increased $174.9 million, or 4.8 percent annualized on a linked quarter basis. During the quarter, customer deposits increased $280.0 million which was offset by a reduction in brokered deposits of $105.1 million. The loan to deposit ratio increased slightly to 84.4 percent at period end from 84.0 percent in the prior quarter.
The Corporation's Allowance for Credit Losses - Loans (ACL) totaled $204.9 million as of quarter-end, or 1.64 percent of total loans, a decrease of $0.8 million from prior quarter. Loan charge-offs, net of recoveries, for the quarter totaled $3.1 million. Net charge-offs were offset with provision expense for loans recorded during the quarter of $2.3 million. Reserves for unfunded commitments totaling $19.5 million declined during the quarter due to reserve release of $0.8 million. Net provision expense for the quarter totaled $1.5 million. Non-performing assets to total assets were 0.32 percent for the fourth quarter of 2023, a decrease of one basis point compared to 0.33 percent in the prior quarter.
Net interest income, totaling $130.1 million for the quarter, declined $3.3 million, or 2.5 percent, compared to prior quarter and decreased $18.9 million, or 12.7 percent, compared to the fourth quarter of 2022. Stated net-interest margin on a tax equivalent basis totaling 3.16 percent, declined by 13 basis points compared to the third quarter of 2023 and decreased 56 basis points compared to the fourth quarter of 2022. During the quarter, increased deposit costs and a continued change in deposit mix offset the increase in earning asset yields reducing net-interest margin.
Noninterest income, totaling $26.4 million for the quarter, decreased $1.4 million, or 5.0 percent, compared to the third quarter of 2023 but increased $2.3 million from the fourth quarter of 2022. The decrease from third quarter of 2023 was driven by lower gains on the sales of loans, higher realized losses on the sales of securities, and a negative valuation adjustment related to CRA investments. These declines were somewhat offset by an increase in fiduciary and wealth management fees and gains on bank-owned life insurance.
Noninterest expense totaled $108.1 million for the quarter, an increase of $14.2 million from the third quarter of 2023. The increase was from higher credit-related expenses and one-time charges totaling $12.7 million as described above.
The Corporation's total risk-based capital ratio equaled 13.67 percent, common equity tier 1 capital ratio equaled 11.35 percent, and the tangible common equity ratio totaled 8.44 percent, which was an increase of 75 basis points from prior quarter. These ratios continue to demonstrate the Corporation's strong capital and liquidity position.
CONFERENCE CALL
First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, January 25, 2024.
To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BIed9b1a3a96754f9abe7b067d12fe2826)
In order to view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/9hsczd2t) during the time of the call. A replay of the webcast will be available until January 25, 2025.
Detailed financial results are reported on the attached pages.
About First Merchants Corporation
First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).
First Merchants Corporation's common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company's Internet web page (http://www.firstmerchants.com).
FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.
Forward-Looking Statements
This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like "believe", "continue", "pattern", "estimate", "project", "intend", "anticipate", "expect" and similar expressions or future or conditional verbs such as "will", "would", "should", "could", "might", "can", "may", or similar expressions. These statements include statements of First Merchants' goals, intentions and expectations; statements regarding the First Merchants' business plan and growth strategies; statements regarding the asset quality of First Merchants' loan and investment portfolios; and estimates of First Merchants' risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants' affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants' business; and other risks and factors identified in each of First Merchants' filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants' past results of operations do not necessarily indicate its anticipated future results.
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Dollars In Thousands) | December 31, | ||||||
| 2023 | 2022 | ||||||
| ASSETS | |||||||
| Cash and due from banks | $ | 112,649 | $ | 122,594 | |||
| Interest-bearing deposits | 436,080 | 126,061 | |||||
| Investment securities, net of allowance for credit losses of $245,000 and $245,000 | 3,811,364 | 4,263,788 | |||||
| Loans held for sale | 18,934 | 9,094 | |||||
| Loans | 12,486,027 | 12,003,894 | |||||
| Less: Allowance for credit losses - loans | (204,934 | ) | (223,277 | ) | |||
| Net loans | 12,281,093 | 11,780,617 | |||||
| Premises and equipment | 133,896 | 117,118 | |||||
| Federal Home Loan Bank stock | 41,769 | 38,525 | |||||
| Interest receivable | 97,664 | 85,070 | |||||
| Goodwill and other intangibles | 739,101 | 747,844 | |||||
| Cash surrender value of life insurance | 306,301 | 308,311 | |||||
| Other real estate owned | 4,831 | 6,431 | |||||
| Tax asset, deferred and receivable | 99,883 | 111,222 | |||||
| Other assets | 225,914 | 221,631 | |||||
| TOTAL ASSETS | $ | 18,309,479 | $ | 17,938,306 | |||
| LIABILITIES | |||||||
| Deposits: | |||||||
| Noninterest-bearing | $ | 2,500,062 | $ | 3,173,417 | |||
| Interest-bearing | 12,321,391 | 11,209,328 | |||||
| Total Deposits | 14,821,453 | 14,382,745 | |||||
| Borrowings: | |||||||
| Federal funds purchased | - | 171,560 | |||||
| Securities sold under repurchase agreements | 157,280 | 167,413 | |||||
| Federal Home Loan Bank advances | 712,852 | 823,674 | |||||
| Subordinated debentures and other borrowings | 158,644 | 151,298 | |||||
| Total Borrowings | 1,028,776 | 1,313,945 | |||||
| Interest payable | 18,912 | 7,530 | |||||
| Other liabilities | 192,625 | 199,316 | |||||
| Total Liabilities | 16,061,766 | 15,903,536 | |||||
| STOCKHOLDERS' EQUITY | |||||||
| Preferred Stock, $1,000 par value, $1,000 liquidation value: | |||||||
| Authorized -- 600 cumulative shares | |||||||
| Issued and outstanding - 125 cumulative 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 - 59,424,122 and 59,170,583 shares | 7,428 | 7,396 | |||||
| Additional paid-in capital | 1,236,506 | 1,228,626 | |||||
| Retained earnings | 1,154,624 | 1,012,774 | |||||
| Accumulated other comprehensive income (loss) | (175,970 | ) | (239,151 | ) | |||
| Total Stockholders' Equity | 2,247,713 | 2,034,770 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 18,309,479 | $ | 17,938,306 | |||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | Twelve Months Ended | |||||||||||||
| (Dollars In Thousands, Except Per Share Amounts) | December 31. | December 31. | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| INTEREST INCOME | |||||||||||||||
| Loans receivable: | |||||||||||||||
| Taxable | $ | 197,523 | $ | 156,102 | $ | 747,837 | $ | 470,468 | |||||||
| Tax-exempt | 8,197 | 6,930 | 31,954 | 25,124 | |||||||||||
| Investment securities: | |||||||||||||||
| Taxable | 8,644 | 9,417 | 35,207 | 38,354 | |||||||||||
| Tax-exempt | 13,821 | 17,033 | 58,117 | 67,381 | |||||||||||
| Deposits with financial institutions | 8,034 | 959 | 17,719 | 2,503 | |||||||||||
| Federal Home Loan Bank stock | 771 | 541 | 3,052 | 1,176 | |||||||||||
| Total Interest Income | 236,990 | 190,982 | 893,886 | 605,006 | |||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 96,655 | 33,516 | 306,092 | 62,939 | |||||||||||
| Federal funds purchased | 1 | 808 | 1,421 | 1,302 | |||||||||||
| Securities sold under repurchase agreements | 827 | 541 | 3,451 | 1,136 | |||||||||||
| Federal Home Loan Bank advances | 6,431 | 4,932 | 27,206 | 11,417 | |||||||||||
| Subordinated debentures and other borrowings | 3,013 | 2,229 | 10,316 | 8,009 | |||||||||||
| Total Interest Expense | 106,927 | 42,026 | 348,486 | 84,803 | |||||||||||
| NET INTEREST INCOME | 130,063 | 148,956 | 545,400 | 520,203 | |||||||||||
| Provision for credit losses | 1,500 | - | 3,500 | 16,755 | |||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 128,563 | 148,956 | 541,900 | 503,448 | |||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Service charges on deposit accounts | 7,690 | 7,097 | 30,837 | 28,371 | |||||||||||
| Fiduciary and wealth management fees | 8,187 | 7,501 | 30,840 | 29,688 | |||||||||||
| Card payment fees | 4,437 | 4,533 | 18,862 | 20,207 | |||||||||||
| Net gains and fees on sales of loans | 4,111 | 2,087 | 15,659 | 10,055 | |||||||||||
| Derivative hedge fees | 1,049 | 326 | 3,385 | 3,388 | |||||||||||
| Other customer fees | 237 | 362 | 1,880 | 1,935 | |||||||||||
| Earnings on cash surrender value of life insurance | 3,202 | 1,515 | 8,347 | 11,174 | |||||||||||
| Net realized gains (losses) on sales of available for sale securities | (2,317 | ) | 57 | (6,930 | ) | 1,194 | |||||||||
| Other income (loss) | (152 | ) | 672 | 2,722 | 1,929 | ||||||||||
| Total Noninterest Income | 26,444 | 24,150 | 105,602 | 107,941 | |||||||||||
| NONINTEREST EXPENSES | |||||||||||||||
| Salaries and employee benefits | 60,967 | 52,331 | 228,745 | 206,893 | |||||||||||
| Net occupancy | 9,089 | 6,638 | 29,859 | 26,211 | |||||||||||
| Equipment | 6,108 | 6,148 | 24,113 | 23,945 | |||||||||||
| Marketing | 2,647 | 3,157 | 7,427 | 7,708 | |||||||||||
| Outside data processing fees | 5,875 | 5,611 | 25,165 | 21,682 | |||||||||||
| Printing and office supplies | 402 | 390 | 1,552 | 1,588 | |||||||||||
| Intangible asset amortization | 2,182 | 2,303 | 8,743 | 8,275 | |||||||||||
| FDIC assessments | 7,557 | 2,295 | 14,674 | 10,235 | |||||||||||
| Other real estate owned and foreclosure expenses | 1,743 | 197 | 3,318 | 823 | |||||||||||
| Professional and other outside services | 3,981 | 3,961 | 16,172 | 21,642 | |||||||||||
| Other expenses | 7,552 | 6,668 | 28,502 | 26,713 | |||||||||||
| Total Noninterest Expenses | 108,103 | 89,699 | 388,270 | 355,715 | |||||||||||
| INCOME BEFORE INCOME TAX | 46,904 | 83,407 | 259,232 | 255,674 | |||||||||||
| Income tax expense | 4,425 | 12,647 | 35,446 | 33,585 | |||||||||||
| NET INCOME | 42,479 | 70,760 | 223,786 | 222,089 | |||||||||||
| Preferred stock dividends | 469 | 468 | 1,875 | 1,406 | |||||||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 42,010 | $ | 70,292 | $ | 221,911 | $ | 220,683 | |||||||
| Per Share Data: | |||||||||||||||
| Basic Net Income Available to Common Stockholders | $ | 0.71 | $ | 1.20 | $ | 3.74 | $ | 3.83 | |||||||
| Diluted Net Income Available to Common Stockholders | $ | 0.71 | $ | 1.19 | $ | 3.73 | $ | 3.81 | |||||||
| Cash Dividends Paid to Common Stockholders | $ | 0.34 | $ | 0.32 | $ | 1.34 | $ | 1.25 | |||||||
| Average Diluted Common Shares Outstanding (in thousands) | 59,556 | 59,384 | 59,489 | 57,950 | |||||||||||
| FINANCIAL HIGHLIGHTS | |||||||||||||||
| (Dollars in thousands) | Three Months Ended | Twelve Months Ended | |||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| NET CHARGE-OFFS (RECOVERIES) | $ | 3,148 | $ | 3,425 | $ | 25,643 | $ | 2,674 | |||||||
| AVERAGE BALANCES: | |||||||||||||||
| Total Assets | $ | 18,397,200 | $ | 17,834,468 | $ | 18,186,507 | $ | 17,220,002 | |||||||
| Total Loans | 12,396,451 | 11,818,911 | 12,297,974 | 10,943,051 | |||||||||||
| Total Earning Assets | 17,222,714 | 16,702,944 | 16,991,787 | 15,985,691 | |||||||||||
| Total Deposits | 15,000,580 | 14,564,853 | 14,721,498 | 14,198,243 | |||||||||||
| Total Stockholders' Equity | 2,130,993 | 1,958,041 | 2,127,262 | 1,972,445 | |||||||||||
| FINANCIAL RATIOS: | |||||||||||||||
| Return on Average Assets | 0.92 | % | 1.59 | % | 1.23 | % | 1.29 | % | |||||||
| Return on Average Stockholders' Equity | 7.89 | 14.36 | 10.43 | 11.19 | |||||||||||
| Return on Tangible Common Stockholders' Equity | 12.75 | 24.21 | 16.76 | 18.12 | |||||||||||
| Average Earning Assets to Average Assets | 93.62 | 93.66 | 93.43 | 92.83 | |||||||||||
| Allowance for Credit Losses - Loans as % of Total Loans | 1.64 | 1.86 | 1.64 | 1.86 | |||||||||||
| Net Charge-offs as % of Average Loans (Annualized) | 0.10 | 0.12 | 0.21 | 0.02 | |||||||||||
| Average Stockholders' Equity to Average Assets | 11.58 | 10.98 | 11.70 | 11.45 | |||||||||||
| Tax Equivalent Yield on Average Earning Assets | 5.64 | 4.73 | 5.40 | 3.94 | |||||||||||
| Interest Expense/Average Earning Assets | 2.48 | 1.01 | 2.05 | 0.53 | |||||||||||
| Net Interest Margin (FTE) on Average Earning Assets | 3.16 | 3.72 | 3.35 | 3.41 | |||||||||||
| Efficiency Ratio | 63.26 | 48.60 | 55.17 | 53.20 | |||||||||||
| Tangible Common Book Value Per Share | $ | 25.06 | $ | 21.45 | $ | 25.06 | $ | 21.45 | |||||||
| NONPERFORMING ASSETS | |||||||||||||||||||
| (Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| Nonaccrual Loans | $ | 53,580 | $ | 53,102 | $ | 69,240 | $ | 46,576 | $ | 42,324 | |||||||||
| Troubled Debt Restructures (TDR) | - | - | - | - | 224 | ||||||||||||||
| Nonperforming Loans (NPL) | 53,580 | 53,102 | 69,240 | 46,576 | 42,548 | ||||||||||||||
| Other Real Estate Owned and Repossessions | 4,831 | 6,480 | 7,685 | 7,777 | 6,431 | ||||||||||||||
| Nonperforming Assets (NPA) | 58,411 | 59,582 | 76,925 | 54,353 | 48,979 | ||||||||||||||
| 90+ Days Delinquent | 172 | 89 | 428 | 7,032 | 1,737 | ||||||||||||||
| NPAs & 90 Day Delinquent | $ | 58,583 | $ | 59,671 | $ | 77,353 | $ | 61,385 | $ | 50,716 | |||||||||
| Allowance for Credit Losses - Loans | $ | 204,934 | $ | 205,782 | $ | 221,147 | $ | 223,052 | $ | 223,277 | |||||||||
| Quarterly Net Charge-offs | 3,148 | 20,365 | 1,905 | 225 | 2,674 | ||||||||||||||
| NPAs / Actual Assets % | 0.32 | % | 0.33 | % | 0.43 | % | 0.30 | % | 0.27 | % | |||||||||
| NPAs & 90 Day / Actual Assets % | 0.32 | % | 0.33 | % | 0.43 | % | 0.34 | % | 0.28 | % | |||||||||
| NPAs / Actual Loans and OREO % | 0.47 | % | 0.48 | % | 0.63 | % | 0.44 | % | 0.41 | % | |||||||||
| Allowance for Credit Losses - Loans / Actual Loans (%) | 1.64 | % | 1.67 | % | 1.80 | % | 1.82 | % | 1.86 | % | |||||||||
| Net Charge-offs (Recoveries) as % of Average Loans (Annualized) | 0.10 | % | 0.66 | % | 0.06 | % | 0.01 | % | 0.12 | % | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
| (Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 112,649 | $ | 125,173 | $ | 108,975 | $ | 125,818 | $ | 122,594 | |||||||||
| Interest-bearing deposits | 436,080 | 348,639 | 219,480 | 352,695 | 126,061 | ||||||||||||||
| Investment securities, net of allowance for credit losses | 3,811,364 | 3,713,724 | 3,891,491 | 4,057,389 | 4,263,788 | ||||||||||||||
| Loans held for sale | 18,934 | 30,972 | 27,297 | 9,408 | 9,094 | ||||||||||||||
| Loans | 12,486,027 | 12,271,422 | 12,270,233 | 12,241,461 | 12,003,894 | ||||||||||||||
| Less: Allowance for credit losses - loans | (204,934 | ) | (205,782 | ) | (221,147 | ) | (223,052 | ) | (223,277 | ) | |||||||||
| Net loans | 12,281,093 | 12,065,640 | 12,049,086 | 12,018,409 | 11,780,617 | ||||||||||||||
| Premises and equipment | 133,896 | 132,441 | 114,402 | 115,857 | 117,118 | ||||||||||||||
| Federal Home Loan Bank stock | 41,769 | 41,797 | 41,842 | 41,878 | 38,525 | ||||||||||||||
| Interest receivable | 97,664 | 90,011 | 89,784 | 85,515 | 85,070 | ||||||||||||||
| Goodwill and other intangibles | 739,101 | 741,283 | 743,465 | 745,647 | 747,844 | ||||||||||||||
| Cash surrender value of life insurance | 306,301 | 306,106 | 307,020 | 309,090 | 308,311 | ||||||||||||||
| Other real estate owned | 4,831 | 6,480 | 7,685 | 7,777 | 6,431 | ||||||||||||||
| Tax asset, deferred and receivable | 99,883 | 135,521 | 113,724 | 103,070 | 111,222 | ||||||||||||||
| Other assets | 225,914 | 258,861 | 254,161 | 206,355 | 221,631 | ||||||||||||||
| TOTAL ASSETS | $ | 18,309,479 | $ | 17,996,648 | $ | 17,968,412 | $ | 18,178,908 | $ | 17,938,306 | |||||||||
| LIABILITIES | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | $ | 2,500,062 | $ | 2,554,984 | $ | 2,636,017 | $ | 2,964,355 | $ | 3,173,417 | |||||||||
| Interest-bearing | 12,321,391 | 12,091,592 | 11,945,138 | 11,738,932 | 11,209,328 | ||||||||||||||
| Total Deposits | 14,821,453 | 14,646,576 | 14,581,155 | 14,703,287 | 14,382,745 | ||||||||||||||
| Borrowings: | |||||||||||||||||||
| Federal funds purchased | - | - | - | 20 | 171,560 | ||||||||||||||
| Securities sold under repurchase agreements | 157,280 | 152,537 | 152,472 | 179,067 | 167,413 | ||||||||||||||
| Federal Home Loan Bank advances | 712,852 | 713,384 | 723,480 | 823,577 | 823,674 | ||||||||||||||
| Subordinated debentures and other borrowings | 158,644 | 158,665 | 151,325 | 151,312 | 151,298 | ||||||||||||||
| Total Borrowings | 1,028,776 | 1,024,586 | 1,027,277 | 1,153,976 | 1,313,945 | ||||||||||||||
| Interest payable | 18,912 | 16,473 | 13,595 | 11,979 | 7,530 | ||||||||||||||
| Other liabilities | 192,625 | 216,369 | 200,820 | 187,218 | 199,316 | ||||||||||||||
| Total Liabilities | 16,061,766 | 15,904,004 | 15,822,847 | 16,056,460 | 15,903,536 | ||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Preferred Stock, $1,000 par value, $1,000 liquidation value: | |||||||||||||||||||
| Authorized -- 600 cumulative shares | |||||||||||||||||||
| Issued and outstanding - 125 cumulative 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 | 7,428 | 7,425 | 7,412 | 7,407 | 7,396 | ||||||||||||||
| Additional paid-in capital | 1,236,506 | 1,234,402 | 1,233,593 | 1,231,532 | 1,228,626 | ||||||||||||||
| Retained earnings | 1,154,624 | 1,132,962 | 1,097,399 | 1,057,298 | 1,012,774 | ||||||||||||||
| Accumulated other comprehensive loss | (175,970 | ) | (307,270 | ) | (217,964 | ) | (198,914 | ) | (239,151 | ) | |||||||||
| Total Stockholders' Equity | 2,247,713 | 2,092,644 | 2,145,565 | 2,122,448 | 2,034,770 | ||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 18,309,479 | $ | 17,996,648 | $ | 17,968,412 | $ | 18,178,908 | $ | 17,938,306 | |||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
| (Dollars In Thousands, Except Per Share Amounts) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| INTEREST INCOME | |||||||||||||||||||
| Loans receivable: | |||||||||||||||||||
| Taxable | $ | 197,523 | $ | 191,705 | $ | 186,256 | $ | 172,353 | $ | 156,102 | |||||||||
| Tax-exempt | 8,197 | 8,288 | 7,760 | 7,709 | 6,930 | ||||||||||||||
| Investment securities: | |||||||||||||||||||
| Taxable | 8,644 | 8,590 | 8,886 | 9,087 | 9,417 | ||||||||||||||
| Tax-exempt | 13,821 | 13,947 | 14,279 | 16,070 | 17,033 | ||||||||||||||
| Deposits with financial institutions | 8,034 | 5,884 | 3,164 | 637 | 959 | ||||||||||||||
| Federal Home Loan Bank stock | 771 | 719 | 1,020 | 542 | 541 | ||||||||||||||
| Total Interest Income | 236,990 | 229,133 | 221,365 | 206,398 | 190,982 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||
| Deposits | 96,655 | 85,551 | 73,201 | 50,685 | 33,516 | ||||||||||||||
| Federal funds purchased | 1 | - | 123 | 1,297 | 808 | ||||||||||||||
| Securities sold under repurchase agreements | 827 | 797 | 979 | 848 | 541 | ||||||||||||||
| Federal Home Loan Bank advances | 6,431 | 6,896 | 6,815 | 7,064 | 4,932 | ||||||||||||||
| Subordinated debentures and other borrowings | 3,013 | 2,506 | 2,412 | 2,385 | 2,229 | ||||||||||||||
| Total Interest Expense | 106,927 | 95,750 | 83,530 | 62,279 | 42,026 | ||||||||||||||
| NET INTEREST INCOME | 130,063 | 133,383 | 137,835 | 144,119 | 148,956 | ||||||||||||||
| Provision for credit losses | 1,500 | 2,000 | - | - | - | ||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 128,563 | 131,383 | 137,835 | 144,119 | 148,956 | ||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||
| Service charges on deposit accounts | 7,690 | 7,975 | 7,813 | 7,359 | 7,097 | ||||||||||||||
| Fiduciary and wealth management fees | 8,187 | 7,394 | 7,397 | 7,862 | 7,501 | ||||||||||||||
| Card payment fees | 4,437 | 4,716 | 4,537 | 5,172 | 4,533 | ||||||||||||||
| Net gains and fees on sales of loans | 4,111 | 5,517 | 3,632 | 2,399 | 2,087 | ||||||||||||||
| Derivative hedge fees | 1,049 | 516 | 672 | 1,148 | 326 | ||||||||||||||
| Other customer fees | 237 | 384 | 742 | 517 | 362 | ||||||||||||||
| Earnings on cash surrender value of life insurance | 3,202 | 1,761 | 2,096 | 1,288 | 1,515 | ||||||||||||||
| Net realized gains (losses) on sales of available for sale securities | (2,317 | ) | (1,650 | ) | (1,392 | ) | (1,571 | ) | 57 | ||||||||||
| Other income (loss) | (152 | ) | 1,229 | 822 | 823 | 672 | |||||||||||||
| Total Noninterest Income | 26,444 | 27,842 | 26,319 | 24,997 | 24,150 | ||||||||||||||
| NONINTEREST EXPENSES | |||||||||||||||||||
| Salaries and employee benefits | 60,967 | 55,566 | 54,753 | 57,459 | 52,331 | ||||||||||||||
| Net occupancy | 9,089 | 6,837 | 6,674 | 7,259 | 6,638 | ||||||||||||||
| Equipment | 6,108 | 5,698 | 6,181 | 6,126 | 6,148 | ||||||||||||||
| Marketing | 2,647 | 2,369 | 1,102 | 1,309 | 3,157 | ||||||||||||||
| Outside data processing fees | 5,875 | 6,573 | 6,604 | 6,113 | 5,611 | ||||||||||||||
| Printing and office supplies | 402 | 333 | 434 | 383 | 390 | ||||||||||||||
| Intangible asset amortization | 2,182 | 2,182 | 2,182 | 2,197 | 2,303 | ||||||||||||||
| FDIC assessments | 7,557 | 2,981 | 2,740 | 1,396 | 2,295 | ||||||||||||||
| Other real estate owned and foreclosure expenses | 1,743 | 677 | 916 | (18 | ) | 197 | |||||||||||||
| Professional and other outside services | 3,981 | 3,833 | 4,660 | 3,698 | 3,961 | ||||||||||||||
| Other expenses | 7,552 | 6,805 | 6,347 | 7,798 | 6,668 | ||||||||||||||
| Total Noninterest Expenses | 108,103 | 93,854 | 92,593 | 93,720 | 89,699 | ||||||||||||||
| INCOME BEFORE INCOME TAX | 46,904 | 65,371 | 71,561 | 75,396 | 83,407 | ||||||||||||||
| Income tax expense | 4,425 | 9,005 | 10,699 | 11,317 | 12,647 | ||||||||||||||
| NET INCOME | 42,479 | 56,366 | 60,862 | 64,079 | 70,760 | ||||||||||||||
| Preferred stock dividends | 469 | 468 | 469 | 469 | 468 | ||||||||||||||
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 42,010 | $ | 55,898 | $ | 60,393 | $ | 63,610 | $ | 70,292 | |||||||||
| Per Share Data: | |||||||||||||||||||
| Basic Net Income Available to Common Stockholders | $ | 0.71 | $ | 0.95 | $ | 1.02 | $ | 1.07 | $ | 1.20 | |||||||||
| Diluted Net Income Available to Common Stockholders | $ | 0.71 | $ | 0.94 | $ | 1.02 | $ | 1.07 | $ | 1.19 | |||||||||
| Cash Dividends Paid to Common Stockholders | $ | 0.34 | $ | 0.34 | $ | 0.34 | $ | 0.32 | $ | 0.32 | |||||||||
| Average Diluted Common Shares Outstanding (in thousands) | 59,556 | 59,503 | 59,448 | 59,441 | 59,384 | ||||||||||||||
| FINANCIAL RATIOS: | |||||||||||||||||||
| Return on Average Assets | 0.92 | % | 1.24 | % | 1.34 | % | 1.42 | % | 1.59 | % | |||||||||
| Return on Average Stockholders' Equity | 7.89 | 10.38 | 11.29 | 12.21 | 14.36 | ||||||||||||||
| Return on Tangible Common Stockholders' Equity | 12.75 | 16.54 | 18.04 | 19.82 | 24.21 | ||||||||||||||
| Average Earning Assets to Average Assets | 93.62 | 93.36 | 93.38 | 93.35 | 93.66 | ||||||||||||||
| Allowance for Credit Losses - Loans as % of Total Loans | 1.64 | 1.67 | 1.80 | 1.82 | 1.86 | ||||||||||||||
| Net Charge-offs as % of Average Loans (Annualized) | 0.10 | 0.66 | 0.06 | 0.01 | 0.12 | ||||||||||||||
| Average Stockholders' Equity to Average Assets | 11.58 | 11.87 | 11.78 | 11.56 | 10.98 | ||||||||||||||
| Tax Equivalent Yield on Average Earning Assets | 5.64 | 5.55 | 5.36 | 5.06 | 4.73 | ||||||||||||||
| Interest Expense/Average Earning Assets | 2.48 | 2.26 | 1.97 | 1.48 | 1.01 | ||||||||||||||
| Net Interest Margin (FTE) on Average Earning Assets | 3.16 | 3.29 | 3.39 | 3.58 | 3.72 | ||||||||||||||
| Efficiency Ratio | 63.26 | 53.91 | 52.21 | 51.72 | 48.60 | ||||||||||||||
| Tangible Common Book Value Per Share | $ | 25.06 | $ | 22.43 | $ | 23.34 | $ | 22.93 | $ | 21.45 | |||||||||
| LOANS | |||||||||||||||||||
| (Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| Commercial and industrial loans | $ | 3,670,948 | $ | 3,490,953 | $ | 3,531,395 | $ | 3,502,204 | $ | 3,437,126 | |||||||||
| Agricultural land, production and other loans to farmers | 263,414 | 233,838 | 230,003 | 219,598 | 241,793 | ||||||||||||||
| Real estate loans: | |||||||||||||||||||
| Construction | 957,545 | 1,022,261 | 949,918 | 960,979 | 835,582 | ||||||||||||||
| Commercial real estate, non-owner occupied | 2,400,839 | 2,360,596 | 2,379,819 | 2,375,410 | 2,407,475 | ||||||||||||||
| Commercial real estate, owner occupied | 1,162,083 | 1,153,707 | 1,179,739 | 1,244,117 | 1,246,528 | ||||||||||||||
| Residential | 2,288,921 | 2,257,385 | 2,248,473 | 2,185,943 | 2,096,655 | ||||||||||||||
| Home equity | 617,571 | 609,352 | 614,366 | 621,354 | 630,632 | ||||||||||||||
| Individuals' loans for household and other personal expenditures | 168,388 | 176,523 | 172,896 | 172,389 | 175,211 | ||||||||||||||
| Public finance and other commercial loans | 956,318 | 966,807 | 963,624 | 959,467 | 932,892 | ||||||||||||||
| Loans | 12,486,027 | 12,271,422 | 12,270,233 | 12,241,461 | 12,003,894 | ||||||||||||||
| Allowance for credit losses - loans | (204,934 | ) | (205,782 | ) | (221,147 | ) | (223,052 | ) | (223,277 | ) | |||||||||
| NET LOANS | $ | 12,281,093 | $ | 12,065,640 | $ | 12,049,086 | $ | 12,018,409 | $ | 11,780,617 | |||||||||
| DEPOSITS | |||||||||||||||||||
| (Dollars In Thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| Demand deposits | $ | 7,965,862 | $ | 7,952,040 | $ | 8,045,455 | $ | 8,422,387 | $ | 8,448,797 | |||||||||
| Savings deposits | 4,516,433 | 4,572,162 | 4,530,255 | 4,499,487 | 4,657,140 | ||||||||||||||
| Certificates and other time deposits of $100,000 or more | 1,408,985 | 1,280,607 | 1,160,303 | 1,040,379 | 742,539 | ||||||||||||||
| Other certificates and time deposits | 849,906 | 761,196 | 680,965 | 574,886 | 468,712 | ||||||||||||||
| Brokered certificates of deposits | 80,267 | 80,571 | 164,177 | 166,148 | 65,557 | ||||||||||||||
| TOTAL DEPOSITS | $ | 14,821,453 | $ | 14,646,576 | $ | 14,581,155 | $ | 14,703,287 | $ | 14,382,745 | |||||||||
| CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
| Average Balance | Interest Income / Expense | Average Rate | Average Balance | Interest Income / Expense | Average Rate | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Interest-bearing deposits | $ | 700,705 | $ | 8,034 | 4.59 | % | $ | 187,204 | $ | 959 | 2.05 | % | |||||||||||
| Federal Home Loan Bank stock | 41,792 | 771 | 7.38 | 38,066 | 541 | 5.68 | |||||||||||||||||
| Investment Securities: (1) | |||||||||||||||||||||||
| Taxable | 1,801,533 | 8,644 | 1.92 | 1,987,161 | 9,417 | 1.90 | |||||||||||||||||
| Tax-exempt (2) | 2,282,233 | 17,495 | 3.07 | 2,671,602 | 21,561 | 3.23 | |||||||||||||||||
| Total Investment Securities | 4,083,766 | 26,139 | 2.56 | 4,658,763 | 30,978 | 2.66 | |||||||||||||||||
| Loans held for sale | 16,355 | 246 | 6.02 | 4,732 | 71 | 6.00 | |||||||||||||||||
| Loans: (3) | |||||||||||||||||||||||
| Commercial | 8,533,233 | 159,190 | 7.46 | 8,309,561 | 126,850 | 6.11 | |||||||||||||||||
| Real estate mortgage | 2,118,060 | 21,829 | 4.12 | 1,827,749 | 16,654 | 3.64 | |||||||||||||||||
| Installment | 820,728 | 16,258 | 7.92 | 843,562 | 12,527 | 5.94 | |||||||||||||||||
| Tax-exempt (2) | 908,075 | 10,376 | 4.57 | 833,307 | 8,772 | 4.21 | |||||||||||||||||
| Total Loans | 12,396,451 | 207,899 | 6.71 | 11,818,911 | 164,874 | 5.58 | |||||||||||||||||
| Total Earning Assets | 17,222,714 | 242,843 | 5.64 | % | 16,702,944 | 197,352 | 4.73 | % | |||||||||||||||
| Total Non-Earning Assets | 1,174,486 | 1,131,524 | |||||||||||||||||||||
| TOTAL ASSETS | $ | 18,397,200 | $ | 17,834,468 | |||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
| Interest-Bearing Deposits: | |||||||||||||||||||||||
| Interest-bearing deposits | $ | 5,504,725 | $ | 40,996 | 2.98 | % | $ | 5,238,422 | $ | 16,810 | 1.28 | % | |||||||||||
| Money market deposits | 3,096,085 | 27,909 | 3.61 | 3,018,644 | 10,778 | 1.43 | |||||||||||||||||
| Savings deposits | 1,587,758 | 3,913 | 0.99 | 1,895,551 | 2,125 | 0.45 | |||||||||||||||||
| Certificates and other time deposits | 2,225,528 | 23,837 | 4.28 | 1,038,502 | 3,803 | 1.46 | |||||||||||||||||
| Total Interest-Bearing Deposits | 12,414,096 | 96,655 | 3.11 | 11,191,119 | 33,516 | 1.20 | |||||||||||||||||
| Borrowings | 1,013,856 | 10,272 | 4.05 | 1,097,586 | 8,510 | 3.10 | |||||||||||||||||
| Total Interest-Bearing Liabilities | 13,427,952 | 106,927 | 3.19 | 12,288,705 | 42,026 | 1.37 | |||||||||||||||||
| Noninterest-bearing deposits | 2,586,484 | 3,373,734 | |||||||||||||||||||||
| Other liabilities | 251,771 | 213,988 | |||||||||||||||||||||
| Total Liabilities | 16,266,207 | 15,876,427 | |||||||||||||||||||||
| STOCKHOLDERS' EQUITY | 2,130,993 | 1,958,041 | |||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 18,397,200 | 106,927 | $ | 17,834,468 | 42,026 | |||||||||||||||||
| Net Interest Income (FTE) | $ | 135,916 | $ | 155,326 | |||||||||||||||||||
| Net Interest Spread (FTE) (4) | 2.45 | % | 3.36 | % | |||||||||||||||||||
| Net Interest Margin (FTE): | |||||||||||||||||||||||
| Interest Income (FTE) / Average Earning Assets | 5.64 | % | 4.73 | % | |||||||||||||||||||
| Interest Expense / Average Earning Assets | 2.48 | % | 1.01 | % | |||||||||||||||||||
| Net Interest Margin (FTE) (5) | 3.16 | % | 3.72 | % | |||||||||||||||||||
| (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis. | |||||||||||||||||||||||
| (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2023 and 2022. These totals equal $5,853 and $6.370 for the three months ended December 31, 2023 and 2022, respectively. | |||||||||||||||||||||||
| (3) Non accruing loans have been included in the average balances. | |||||||||||||||||||||||
| (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities. | |||||||||||||||||||||||
| (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets. | |||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||
| For the Twelve Months Ended | |||||||||||||||||||||||
| December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
| Average Balance | Interest Income / Expense | Average Rate | Average Balance | Interest Income / Expense | Average Rate | ||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Interest-bearing deposits | $ | 431,581 | $ | 17,719 | 4.11 | % | $ | 296,863 | $ | 2,503 | 0.84 | % | |||||||||||
| Federal Home Loan Bank stock | 41,319 | 3,052 | 7.39 | 35,580 | 1,176 | 3.31 | |||||||||||||||||
| Investment Securities: (1) | |||||||||||||||||||||||
| Taxable | 1,854,438 | 35,207 | 1.90 | 2,056,586 | 38,354 | 1.86 | |||||||||||||||||
| Tax-exempt (2) | 2,366,475 | 73,566 | 3.11 | 2,653,611 | 85,292 | 3.21 | |||||||||||||||||
| Total Investment Securities | 4,220,913 | 108,773 | 2.58 | 4,710,197 | 123,646 | 2.63 | |||||||||||||||||
| Loans held for sale | 21,766 | 1,292 | 5.94 | 14,715 | 692 | 4.70 | |||||||||||||||||
| Loans: (3) | |||||||||||||||||||||||
| Commercial | 8,519,706 | 603,611 | 7.08 | 7,877,271 | 380,621 | 4.83 | |||||||||||||||||
| Real estate mortgage | 2,035,488 | 82,183 | 4.04 | 1,471,802 | 51,853 | 3.52 | |||||||||||||||||
| Installment | 830,006 | 60,751 | 7.32 | 785,520 | 37,302 | 4.75 | |||||||||||||||||
| Tax-exempt (2) | 891,008 | 40,448 | 4.54 | 793,743 | 31,803 | 4.01 | |||||||||||||||||
| Total Loans | 12,297,974 | 788,285 | 6.41 | 10,943,051 | 502,271 | 4.59 | |||||||||||||||||
| Total Earning Assets | 16,991,787 | 917,829 | 5.40 | % | 15,985,691 | 629,596 | 3.94 | % | |||||||||||||||
| Total Non-Earning Assets | 1,194,720 | 1,234,311 | |||||||||||||||||||||
| Total Assets | $ | 18,186,507 | $ | 17,220,002 | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Interest-Bearing deposits: | |||||||||||||||||||||||
| Interest-bearing deposits | $ | 5,435,733 | $ | 138,012 | 2.54 | % | $ | 5,206,131 | $ | 32,511 | 0.62 | % | |||||||||||
| Money market deposits | 2,884,271 | 83,777 | 2.90 | 2,915,397 | 19,170 | 0.66 | |||||||||||||||||
| Savings deposits | 1,694,230 | 14,606 | 0.86 | 1,927,122 | 5,019 | 0.26 | |||||||||||||||||
| Certificates and other time deposits | 1,923,268 | 69,697 | 3.62 | 881,176 | 6,239 | 0.71 | |||||||||||||||||
| Total Interest-Bearing Deposits | 11,937,502 | 306,092 | 2.56 | 10,929,826 | 62,939 | 0.58 | |||||||||||||||||
| Borrowings | 1,111,472 | 42,394 | 3.81 | 888,392 | 21,864 | 2.46 | |||||||||||||||||
| Total Interest-Bearing Liabilities | 13,048,974 | 348,486 | 2.67 | 11,818,218 | 84,803 | 0.72 | |||||||||||||||||
| Noninterest-bearing deposits | 2,783,996 | 3,268,417 | |||||||||||||||||||||
| Other liabilities | 226,275 | 160,922 | |||||||||||||||||||||
| Total Liabilities | 16,059,245 | 15,247,557 | |||||||||||||||||||||
| Stockholders' Equity | 2,127,262 | 1,972,445 | |||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 18,186,507 | 348,486 | $ | 17,220,002 | 84,803 | |||||||||||||||||
| Net Interest Income (FTE) | $ | 569,343 | $ | 544,793 | |||||||||||||||||||
| Net Interest Spread (FTE) (4) | 2.73 | % | 3.22 | % | |||||||||||||||||||
| Net Interest Margin (FTE): | |||||||||||||||||||||||
| Interest Income (FTE) / Average Earning Assets | 5.40 | % | 3.94 | % | |||||||||||||||||||
| Interest Expense / Average Earning Assets | 2.05 | % | 0.53 | % | |||||||||||||||||||
| Net Interest Margin (FTE) (5) | 3.35 | % | 3.41 | % | |||||||||||||||||||
| (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis. | |||||||||||||||||||||||
| (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2023 and 2022. These totals equal $23,943 and $24,590 for the years ended December 31, 2023 and 2022, respectively. | |||||||||||||||||||||||
| (3) Non accruing loans have been included in the average balances. | |||||||||||||||||||||||
| (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities. | |||||||||||||||||||||||
| (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets. | |||||||||||||||||||||||
| ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - NON-GAAP | |||||||||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Amounts) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||
| Net Income Available to Common Stockholders - GAAP | $ | 42,010 | $ | 55,898 | $ | 60,393 | $ | 63,610 | $ | 70,292 | $ | 221,911 | $ | 220,683 | |||||||||||||
| Adjustments: | |||||||||||||||||||||||||||
| PPP loan income | (7 | ) | (8 | ) | (9 | ) | (25 | ) | (109 | ) | (49 | ) | (3,207 | ) | |||||||||||||
| Acquisition-related expenses | - | - | - | - | 413 | - | 16,531 | ||||||||||||||||||||
| Acquisition-related provision expense | - | - | - | - | - | - | 16,755 | ||||||||||||||||||||
| Non-core expenses1 | 12,682 | - | - | - | - | 12,682 | - | ||||||||||||||||||||
| Tax on adjustments | (3,088 | ) | 2 | 2 | 6 | (75 | ) | (3,078 | ) | (7,376 | ) | ||||||||||||||||
| Adjusted Net Income Available to Common Stockholders - Non-GAAP | $ | 51,597 | $ | 55,892 | $ | 60,386 | $ | 63,591 | $ | 70,521 | $ | 231,466 | $ | 243,386 | |||||||||||||
| Average Diluted Common Shares Outstanding (in thousands) | 59,556 | 59,503 | 59,448 | 59,441 | 59,384 | 59,489 | 57,590 | ||||||||||||||||||||
| Diluted Earnings Per Common Share - GAAP | $ | 0.71 | $ | 0.94 | $ | 1.02 | $ | 1.07 | $ | 1.19 | $ | 3.73 | $ | 3.81 | |||||||||||||
| Adjustments: | |||||||||||||||||||||||||||
| PPP loan income | - | - | - | - | (0.01 | ) | - | (0.06 | ) | ||||||||||||||||||
| Acquisition-related expenses | - | - | - | - | 0.01 | - | 0.28 | ||||||||||||||||||||
| Acquisition-related provision expense | - | - | - | - | - | - | 0.30 | ||||||||||||||||||||
| Non-core expenses1 | 0.21 | - | - | - | - | 0.21 | - | ||||||||||||||||||||
| Tax on adjustments | (0.05 | ) | - | - | - | - | (0.05 | ) | (0.13 | ) | |||||||||||||||||
| Adjusted Diluted Earnings Per Common Share - Non-GAAP | $ | 0.87 | $ | 0.94 | $ | 1.02 | $ | 1.07 | $ | 1.19 | $ | 3.89 | $ | 4.20 | |||||||||||||
1 - Non-core expenses include one-time charges consisting of $6.3 million from early retirement and severance costs, $4.3 million from the FDIC special assessment, and $2.1 million from a lease termination.
| RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP | |||||||||||||||||||||||||||
| (Dollars In Thousands) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||
| Total Average Stockholders' Equity (GAAP) | $ | 2,130,993 | $ | 2,154,232 | $ | 2,139,877 | $ | 2,083,125 | $ | 1,958,041 | $ | 2,127,262 | $ | 1,972,445 | |||||||||||||
| Less: Average Preferred Stock | (25,125 | ) | (25,125 | ) | (25,125 | ) | (25,125 | ) | (25,125 | ) | (25,125 | ) | (18,875 | ) | |||||||||||||
| Less: Average Intangible Assets, Net of Tax | (734,007 | ) | (735,787 | ) | (737,489 | ) | (739,190 | ) | (741,632 | ) | (736,601 | ) | (699,803 | ) | |||||||||||||
| Average Tangible Common Equity, Net of Tax (Non-GAAP) | $ | 1,371,861 | $ | 1,393,320 | $ | 1,377,263 | $ | 1,318,810 | $ | 1,191,284 | $ | 1,365,536 | $ | 1,253,767 | |||||||||||||
| Net Income Available to Common Stockholders (GAAP) | $ | 42,010 | $ | 55,898 | $ | 60,393 | $ | 63,610 | $ | 70,292 | $ | 221,911 | $ | 220,683 | |||||||||||||
| Plus: Intangible Asset Amortization, Net of Tax | 1,724 | 1,724 | 1,724 | 1,734 | 1,819 | 6,906 | 6,537 | ||||||||||||||||||||
| Tangible Net Income (Non-GAAP) | $ | 43,734 | $ | 57,622 | $ | 62,117 | $ | 65,344 | $ | 72,111 | $ | 228,817 | $ | 227,220 | |||||||||||||
| Return on Tangible Common Equity (Non-GAAP) | 12.75 | % | 16.54 | % | 18.04 | % | 19.82 | % | 24.21 | % | 16.76 | % | 18.12 | % | |||||||||||||
For more information, contact:
Nicole M. Weaver, Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com
