First Merchants Corporation

04/23/2026 | Press release | Distributed by Public on 04/23/2026 13:54

First Merchants Corporation Announces First Quarter 2026 Earnings Per Share

Thursday, April 23, 2026

First Merchants Corporation (NASDAQ - FRME)


First Quarter 2026 Highlights:

  • Net income available to common stockholders was $27.7 million, or $0.45 per diluted share, compared to $56.6 million, or $0.99 per diluted share, in the fourth quarter of 2025. On an adjusted basis1, net income totaled $63.1 million, or $1.03 per diluted share, compared to $56.4 million, or $0.98 per diluted share, in the prior quarter.
  • Completed legal closing on the acquisition of First Savings Financial Group, Inc. ("First Savings") on February 1, 2026.
  • Maintained strong capital position with Common Equity Tier 1 Capital Ratio of 11.22%.
  • Repurchased 708,856 shares totaling $27.6 million of common stock year-to-date, including 640,486 shares totaling $24.9 million in the first quarter.
  • Loans declined $18.8 million, or 0.5% annualized linked quarter, and increased $768.0 million, or 5.9%, during the last twelve months, excluding $1.8 billion of loans added from the First Savings acquisition.
  • Deposits declined $499.4 million, or 13.1% annualized linked quarter, and increased $333.5 million, or 2.3%, during the last twelve months, excluding $1.7 billion of deposits added from the First Savings acquisition.
  • Nonperforming assets to total assets were 43 basis points compared to 38 basis points in the prior quarter.
  • Adjusted efficiency ratio1 totaled 54.21% for the quarter.

"First Merchants delivered a strong start to 2026, highlighted by solid adjusted earnings growth, expanding net interest margin, and continued strength in commercial loan production," said Mark Hardwick, Chief Executive Officer. "We successfully closed the acquisition of First Savings, adding $2.4 billion in assets and further strengthening our statewide Indiana presence while enhancing our ability to serve clients across Indiana, Ohio, and Michigan. Our capital, liquidity, and credit quality remain very strong, positioning us well for continued growth and long-term shareholder value creation."

First Quarter Financial Results:

The Corporation reported first quarter 2026 net income available to common stockholders of $27.7 million compared to $54.9 million during the same period in 2025. Diluted earnings per common share1 for the period totaled $0.45 compared to $0.94 in the first quarter of 2025. Current quarter results included acquisition costs of $17.0 million that primarily consist of employee retention bonuses and severance, contract termination charges and professional fees. Current quarter results also included a mark-to-market loss of $29.8 million on $357 million of mortgage loans moved to held-for-sale with a weighted average coupon of 3.46%. The loan sale is expected to close during the second quarter and will create incremental funding capacity. Excluding these non-core charges, adjusted earnings per common share1 for the first quarter of 2026 totaled $1.03 compared to $0.94 in the prior year period, an increase of 9.6%.

Total assets of the Corporation equaled $21.1 billion as of quarter-end and loans totaled $15.3 billion. Loans increased $2.3 billion during the past twelve months. The acquisition of First Savings contributed $1.8 billion of loans. Excluding acquired loans and the impact of loans moved to held-for-sale, the Corporation experienced organic loan growth of $768.0 million, or 5.9%, during the past twelve months. On a linked quarter basis, loans declined $18.8 million, or 0.5% annualized.

Investment securities, totaling $3.3 billion, decreased $117.2 million, or 3.4%, during the last twelve months and decreased $68.7 million, or 8.1% annualized on a linked quarter basis. Investments declined during the quarter due to principal paydowns and maturities as well as a modest decline in the securities portfolio valuation.

Total deposits equaled $16.5 billion as of quarter-end and increased by $2.0 billion, over the past twelve months. The acquisition of First Savings contributed $1.7 billion in deposits. Excluding acquired deposits, the Corporation experienced an increase in organic deposit growth of $333.5 million, or 2.3%. Deposits decreased $499.4 million, or 13.1% annualized on a linked quarter basis, excluding acquired deposits. The balance sheet growth resulted in an increase in the loan to deposit ratio to 92.6% at period end from 90.3% in the prior quarter.

The Corporation's Allowance for Credit Losses - Loans (ACL) totaled $212.5 million as of quarter-end, or 1.39% of loans, an increase of $16.9 million from prior quarter. The ACL increased $22.3 million for the purchase accounting adjustment for estimated credit losses recorded for the First Savings loan portfolio. Net charge-offs totaled $10.3 million and provision for credit losses of $4.9 million was recorded during the quarter. Reserves for unfunded commitments totaled $18.5 million, an increase of $0.5 million from prior quarter recorded for estimated credit losses on unfunded commitments of First Savings. Non-performing assets to total assets were 0.43% for the first quarter of 2026, an increase of five basis points compared to 0.38% in the prior quarter reflecting stable credit performance.

Net interest income totaling $151.3 million for the quarter, increased $12.2 million, or 8.8%, compared to prior quarter and increased $21.0 million, or 16.1%, compared to the first quarter of 2025. Positively impacting net interest income was an interest recovery of $1.2 million recorded during the quarter from the successful resolution of a nonaccrual multifamily commercial real estate loan. Fully taxable equivalent net interest margin was 3.35%, an increase of six basis points compared to prior quarter and an increase of 13 basis points compared to the first quarter of 2025. The lower day count in the quarter caused a decline of five basis points in net interest margin from the prior quarter. This was more than offset by an improved funding mix and meaningfully lower deposit costs.

Noninterest income totaled $5.8 million for the quarter, a decrease of $27.3 million, compared to prior quarter and a decrease of $24.2 million compared to the first quarter of 2025. The declines were due to a valuation adjustment on mortgage loans that were reclassified to held-for-sale during the current quarter. Customer-related fees increased by $1.8 million from the previous quarter and $4.7 million over the first quarter of 2025. The linked quarter increase was driven by higher wealth management fees and higher gains on the sales of loans offset by a slight reduction in derivative hedge fees.

Noninterest expense totaled $125.1 million for the quarter, an increase of $25.6 million from the fourth quarter of 2025 and an increase of $32.2 million from the first quarter of 2025. Acquisition-related costs totaling $17.0 million were incurred during the quarter, including $5.2 million attributed to salaries and benefits and $11.3 million in professional and other outside services. Contributing to current quarter expenses was an annual benefit plan expense of $1.1 million and a $0.9 million one-time charge for the write-down of a held-for-sale building.

The Corporation's total risk-based capital ratio was 13.05%, common equity tier 1 capital ratio was 11.22%, and the tangible common equity ratio was 9.00%. These ratios continue to reflect the Corporation's strong capital position.

1 See "Non-GAAP Financial Information" for reconciliation

CONFERENCE CALL

First Merchants Corporation will conduct an earnings conference call and webcast at 9:00 a.m. (ET) on Thursday, April 23, 2026.

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-conf.media-server.com/register/BIea2e66c5a6e240dea7770076185c1054)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/i5u3npdn) during the time of the call. A replay of the webcast will be available until April 23, 2027.

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 news 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 forward- looking statements include, but are not limited to, statements relating to the expected benefits of the merger between First Merchants and First Savings, including future financial and operating results, cost savings, enhanced revenues, and accretion/dilution to reported earnings that may be realized from the merger, as well as other statements of expectations regarding the merger, and other 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, whether with respect to the merger or otherwise. 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: the risk that the businesses of First Merchants and First Savings will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; expected revenue synergies and cost savings from the merger may not be fully realized or realized within the expected time frame; revenues following the merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the merger; the ability to complete the merger on the expected timeframe; 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 First Merchants' business; the impacts of epidemics, pandemics or other infectious disease outbreaks; and other risks and factors identified in each of First Merchants' filings with the SEC. Neither First Merchants nor First Savings undertakes any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release. In addition, the companies' respective past results of operations do not necessarily indicate their anticipated future results, whether or not the merger is completed.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, First Merchants Corporation has provided reconciliations within this news release, as necessary, of the non-GAAP financial measure to the most directly comparable GAAP financial measure.

For more information, contact:
Nicole M. Weaver, First Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com



CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts) March 31,
2026 2025
ASSETS
Cash and due from banks $ 98,083 $ 86,113
Interest-bearing deposits 175,354 331,534
Investment securities available for sale 1,372,417 1,378,489
Investment securities held to maturity, net of allowance for credit losses of $245 in 2026 and 2025 1,937,485 2,048,632
Loans held for sale 401,839 23,004
Loans 15,261,889 13,004,905
Less: Allowance for credit losses - loans (212,520 ) (192,031 )
Net loans 15,049,369 12,812,874
Premises and equipment 146,013 128,749
Federal Home Loan Bank stock 70,835 45,006
Interest receivable 97,026 88,352
Goodwill 782,789 712,002
Other intangibles 41,678 18,302
Cash surrender value of life insurance 371,238 304,918
Other real estate owned 1,264 4,966
Tax asset, deferred and receivable 116,814 87,665
Other assets 410,317 369,181
TOTAL ASSETS $ 21,072,521 $ 18,439,787
LIABILITIES
Deposits:
Noninterest-bearing $ 3,748,279 $ 2,185,057
Interest-bearing 12,737,338 12,276,921
Total Deposits 16,485,617 14,461,978
Borrowings:
Federal funds purchased 170,000 185,000
Securities sold under repurchase agreements 89,458 122,947
Federal Home Loan Bank advances 1,299,192 972,478
Subordinated debentures and other borrowings 86,345 62,619
Total Borrowings 1,644,995 1,343,044
Interest payable 18,890 13,304
Other liabilities 250,454 289,247
Total Liabilities 18,399,956 16,107,573
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, $0.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding - 62,508,055 and 57,810,232 shares 7,813 7,226
Additional paid-in capital 1,369,879 1,183,263
Retained earnings 1,418,609 1,306,911
Accumulated other comprehensive loss (148,861 ) (190,311 )
Total Stockholders' Equity 2,672,565 2,332,214
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 21,072,521 $ 18,439,787
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended
(Dollars In Thousands, Except Per Share Amounts) March 31,
2026 2025
INTEREST INCOME
Loans:
Taxable $ 213,627 $ 187,728
Tax-exempt 11,589 10,532
Investment securities:
Taxable 7,547 8,372
Tax-exempt 12,597 12,517
Deposits with financial institutions 1,244 2,372
Federal Home Loan Bank stock 1,965 997
Total Interest Income 248,569 222,518
INTEREST EXPENSE
Deposits 84,093 80,547
Federal funds purchased 590 812
Securities sold under repurchase agreements 332 742
Federal Home Loan Bank advances 11,048 9,364
Subordinated debentures and other borrowings 1,203 783
Total Interest Expense 97,266 92,248
NET INTEREST INCOME 151,303 130,270
Provision for credit losses 4,900 4,200
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 146,403 126,070
NONINTEREST INCOME
Service charges on deposit accounts 9,037 8,072
Fiduciary and wealth management fees 9,768 8,644
Card payment fees 5,275 4,526
Net gains and fees on sales of loans 6,511 5,022
Derivative hedge fees 564 404
Other customer fees 593 415
Earnings on bank-owned life insurance 3,446 2,179
Net realized losses on sales of available for sale securities - (7 )
Net loss on mortgage loans reclassified to held for sale (29,755 ) -
Other income 390 793
Total Noninterest Income 5,829 30,048
NONINTEREST EXPENSE
Salaries and employee benefits 69,443 54,982
Net occupancy 8,301 7,216
Equipment 7,818 7,008
Marketing 1,601 1,353
Outside data processing fees 7,190 5,929
Printing and office supplies 377 347
Intangible asset amortization 2,302 1,526
FDIC assessments 3,893 3,648
Other real estate owned and foreclosure expenses 1,100 600
Professional and other outside services 14,593 3,261
Other expenses 8,527 7,032
Total Noninterest Expense 125,145 92,902
Income Before Income Taxes 27,087 63,216
Income tax expense (benefit) (1,069 ) 7,877
NET INCOME 28,156 55,339
Preferred stock dividends 469 469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 27,687 $ 54,870
PER SHARE DATA:
Basic Net Income Available to Common Stockholders $ 0.46 $ 0.95
Diluted Net Income Available to Common Stockholders $ 0.45 $ 0.94
Cash Dividends Paid to Common Stockholders $ 0.36 $ 0.35
Tangible Common Book Value Per Share $ 29.34 $ 27.34
Average Diluted Common Shares Outstanding (in thousands) 61,008 58,242
FINANCIAL HIGHLIGHTS
(Dollars In Thousands) Three Months Ended
March 31,
2026 2025
NET CHARGE-OFFS $ 10,256 $ 4,926
AVERAGE BALANCES:
Total Assets $ 20,407,523 $ 18,341,738
Total Loans 14,995,685 12,941,353
Total Earning Assets 18,842,984 16,960,475
Total Deposits 16,080,470 14,419,338
Total Stockholders' Equity 2,655,756 2,340,874
FINANCIAL RATIOS:
Return on Average Assets 0.55 % 1.21 %
Return on Average Stockholders' Equity 4.17 9.38
Return on Tangible Common Stockholders' Equity 6.39 14.12
Average Earning Assets to Average Assets 92.33 92.47
Allowance for Credit Losses - Loans as % of Total Loans 1.39 1.47
Net Charge-offs as % of Average Loans (Annualized) 0.27 0.15
Average Stockholders' Equity to Average Assets 13.01 12.76
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets 5.41 5.39
Interest Expense/Average Earning Assets 2.06 2.17
Net Interest Margin FTE 3.35 3.22
Efficiency Ratio 74.45 54.54
ASSET QUALITY
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Nonaccrual Loans $ 89,592 $ 71,773 $ 65,740 $ 67,358 $ 81,922
Other Real Estate Owned and Repossessions 1,264 658 1,270 177 4,966
Nonperforming Assets (NPA) 90,856 72,431 67,010 67,535 86,888
90+ Days Delinquent 4,078 2,042 1,925 4,443 4,280
NPAs & 90+ Days Delinquent $ 94,934 $ 74,473 $ 68,935 $ 71,978 $ 91,168
Allowance for Credit Losses - Loans $ 212,520 $ 195,597 $ 194,468 $ 195,316 $ 192,031
Quarterly Net Charge-offs 10,256 6,021 5,148 2,315 4,926
NPAs / Assets % 0.43 % 0.38 % 0.36 % 0.36 % 0.47 %
NPAs & 90 Day / Assets % 0.45 % 0.39 % 0.37 % 0.39 % 0.49 %
NPAs / Loans and OREO % 0.60 % 0.52 % 0.49 % 0.51 % 0.67 %
Allowance for Credit Losses - Loans / Loans (%) 1.39 % 1.42 % 1.43 % 1.47 % 1.47 %
Quarterly Net Charge-offs as % of Average Loans (Annualized) 0.27 % 0.18 % 0.15 % 0.07 % 0.15 %
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts) March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
ASSETS
Cash and due from banks $ 98,083 $ 84,158 $ 88,079 $ 81,567 $ 86,113
Interest-bearing deposits 175,354 196,300 168,706 223,343 331,534
Investment securities available for sale 1,372,417 1,407,102 1,386,903 1,358,130 1,378,489
Investment securities held to maturity, net of allowance for credit losses 1,937,485 1,971,539 1,995,488 2,022,826 2,048,632
Loans held for sale 401,839 20,079 23,190 28,783 23,004
Loans 15,261,889 13,791,707 13,591,174 13,296,759 13,004,905
Less: Allowance for credit losses - loans (212,520 ) (195,597 ) (194,468 ) (195,316 ) (192,031 )
Net loans 15,049,369 13,596,110 13,396,706 13,101,443 12,812,874
Premises and equipment 146,013 121,058 121,771 122,808 128,749
Federal Home Loan Bank stock 70,835 47,245 47,264 47,290 45,006
Interest receivable 97,026 93,374 89,102 93,258 88,352
Goodwill 782,789 712,002 712,002 712,002 712,002
Other intangibles 41,678 13,800 15,298 16,797 18,302
Cash surrender value of life insurance 371,238 308,438 306,583 305,695 304,918
Other real estate owned 1,264 658 1,270 177 4,966
Tax asset, deferred and receivable 116,814 78,664 89,758 97,749 87,665
Other assets 410,317 374,574 369,509 380,909 369,181
TOTAL ASSETS $ 21,072,521 $ 19,025,101 $ 18,811,629 $ 18,592,777 $ 18,439,787
LIABILITIES
Deposits:
Noninterest-bearing $ 3,748,279 $ 2,137,262 $ 2,100,570 $ 2,197,416 $ 2,185,057
Interest-bearing 12,737,338 13,157,593 12,769,409 12,600,162 12,276,921
Total Deposits 16,485,617 15,294,855 14,869,979 14,797,578 14,461,978
Borrowings:
Federal funds purchased 170,000 40,000 199,370 85,000 185,000
Securities sold under repurchase agreements 89,458 103,755 122,226 114,758 122,947
Federal Home Loan Bank advances 1,299,192 798,549 798,626 898,702 972,478
Subordinated debentures and other borrowings 86,345 57,630 57,632 62,617 62,619
Total Borrowings 1,644,995 999,934 1,177,854 1,161,077 1,343,044
Interest payable 18,890 18,235 18,240 16,174 13,304
Other liabilities 250,454 245,410 333,154 269,996 289,247
Total Liabilities 18,399,956 16,558,434 16,399,227 16,244,825 16,107,573
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, $0.125 stated value:
Authorized -- 100,000,000 shares
Issued and outstanding 7,813 7,119 7,149 7,159 7,226
Additional paid-in capital 1,369,879 1,150,816 1,158,026 1,163,170 1,183,263
Retained earnings 1,418,609 1,413,742 1,377,966 1,342,473 1,306,911
Accumulated other comprehensive loss (148,861 ) (130,135 ) (155,864 ) (189,975 ) (190,311 )
Total Stockholders' Equity 2,672,565 2,466,667 2,412,402 2,347,952 2,332,214
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 21,072,521 $ 19,025,101 $ 18,811,629 $ 18,592,777 $ 18,439,787
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars In Thousands, Except Per Share Amounts) March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
INTEREST INCOME
Loans:
Taxable $ 213,627 $ 203,120 $ 200,406 $ 195,173 $ 187,728
Tax-exempt 11,589 10,905 11,173 10,805 10,532
Investment securities:
Taxable 7,547 7,736 8,288 8,266 8,372
Tax-exempt 12,597 12,459 12,460 12,516 12,517
Deposits with financial institutions 1,244 2,187 1,676 1,892 2,372
Federal Home Loan Bank stock 1,965 1,037 1,092 1,083 997
Total Interest Income 248,569 237,444 235,095 229,735 222,518
INTEREST EXPENSE
Deposits 84,093 88,670 90,821 84,241 80,547
Federal funds purchased 590 218 224 965 812
Securities sold under repurchase agreements 332 405 654 663 742
Federal Home Loan Bank advances 11,048 8,047 8,638 9,714 9,364
Subordinated debentures and other borrowings 1,203 1,040 1,093 1,138 783
Total Interest Expense 97,266 98,380 101,430 96,721 92,248
NET INTEREST INCOME 151,303 139,064 133,665 133,014 130,270
Provision for credit losses 4,900 7,150 4,300 5,600 4,200
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 146,403 131,914 129,365 127,414 126,070
NONINTEREST INCOME
Service charges on deposit accounts 9,037 8,704 8,921 8,566 8,072
Fiduciary and wealth management fees 9,768 9,175 8,842 8,831 8,644
Card payment fees 5,275 5,325 5,007 4,932 4,526
Net gains and fees on sales of loans 6,511 5,421 4,983 5,849 5,022
Derivative hedge fees 564 1,053 1,097 831 404
Other customer fees 593 315 414 401 415
Earnings on bank-owned life insurance 3,446 1,854 1,667 1,913 2,179
Net realized losses on sales of available for sale securities - - - (1 ) (7 )
Net loss on mortgage loans reclassified to held for sale (29,755 ) - - - -
Other income (loss) 390 1,259 1,546 (19 ) 793
Total Noninterest Income 5,829 33,106 32,477 31,303 30,048
NONINTEREST EXPENSE
Salaries and employee benefits 69,443 58,254 57,317 54,527 54,982
Net occupancy 8,301 7,283 7,057 6,845 7,216
Equipment 7,818 7,681 6,998 6,927 7,008
Marketing 1,601 2,324 2,120 1,997 1,353
Outside data processing fees 7,190 7,509 6,943 7,107 5,929
Printing and office supplies 377 450 311 272 347
Intangible asset amortization 2,302 1,498 1,499 1,505 1,526
FDIC assessments 3,893 2,684 3,526 3,552 3,648
Other real estate owned and foreclosure expenses 1,100 775 121 29 600
Professional and other outside services 14,593 3,774 3,718 3,741 3,261
Other expenses 8,527 7,290 6,951 7,096 7,032
Total Noninterest Expense 125,145 99,522 96,561 93,598 92,902
Income Before Income Taxes 27,087 65,498 65,281 65,119 63,216
Income tax expense (benefit) (1,069 ) 8,433 8,516 8,287 7,877
NET INCOME 28,156 57,065 56,765 56,832 55,339
Preferred stock dividends 469 469 468 469 469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 27,687 $ 56,596 $ 56,297 $ 56,363 $ 54,870
PER SHARE DATA:
Basic Net Income Available to Common Stockholders $ 0.46 $ 0.99 $ 0.98 $ 0.98 $ 0.95
Diluted Net Income Available to Common Stockholders $ 0.45 $ 0.99 $ 0.98 $ 0.98 $ 0.94
Cash Dividends Paid to Common Stockholders $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.35
Tangible Common Book Value Per Share $ 29.34 $ 30.18 $ 29.08 $ 27.90 $ 27.34
Average Diluted Common Shares Outstanding (in thousands) 61,008 57,442 57,448 57,773 58,242
FINANCIAL RATIOS:
Return on Average Assets 0.55 % 1.20 % 1.22 % 1.23 % 1.21 %
Return on Average Stockholders' Equity 4.17 9.23 9.51 9.63 9.38
Return on Tangible Common Stockholders' Equity 6.39 13.57 14.21 14.49 14.12
Average Earning Assets to Average Assets 92.33 92.69 92.73 92.71 92.47
Allowance for Credit Losses - Loans as % of Total Loans 1.39 1.42 1.43 1.47 1.47
Net Charge-offs as % of Average Loans (Annualized) 0.27 0.18 0.15 0.07 0.15
Average Stockholders' Equity to Average Assets 13.01 12.88 12.71 12.64 12.76
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets 5.41 5.52 5.58 5.50 5.39
Interest Expense/Average Earning Assets 2.06 2.23 2.34 2.25 2.17
Net Interest Margin FTE 3.35 3.29 3.24 3.25 3.22
Efficiency Ratio 74.45 54.52 55.09 53.99 54.54
LOANS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Commercial and industrial loans $ 4,611,596 $ 4,478,282 $ 4,604,895 $ 4,440,924 $ 4,306,597
Agricultural land, production and other loans to farmers 310,788 283,125 275,817 265,172 243,864
Real estate loans:
Construction 899,895 804,775 789,021 836,033 793,175
Commercial real estate, non-owner occupied 3,192,337 2,338,666 2,304,889 2,171,092 2,177,869
Commercial real estate, owner occupied 1,334,959 1,237,100 1,232,117 1,226,797 1,214,739
Residential 2,273,860 2,420,310 2,412,783 2,397,094 2,389,852
Home equity 1,104,739 710,980 687,021 673,961 650,499
Individuals' loans for household and other personal expenditures 153,283 155,436 138,703 141,045 140,954
Public finance and other commercial loans 1,380,432 1,363,033 1,145,928 1,144,641 1,087,356
Loans 15,261,889 13,791,707 13,591,174 13,296,759 13,004,905
Allowance for credit losses - loans (212,520 ) (195,597 ) (194,468 ) (195,316 ) (192,031 )
NET LOANS $ 15,049,369 $ 13,596,110 $ 13,396,706 $ 13,101,443 $ 12,812,874
DEPOSITS
(Dollars In Thousands) March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Demand deposits $ 8,009,548 $ 7,770,473 $ 7,645,698 $ 7,798,695 $ 7,786,554
Savings deposits 6,204,526 5,481,785 5,164,707 4,984,659 4,791,874
Certificates and other time deposits of $100,000 or less 665,639 603,690 627,828 617,857 625,203
Certificates and other time deposits of $100,000 or more 1,012,922 915,293 910,337 891,139 896,143
Brokered certificates of deposits (1) 592,982 523,614 521,409 505,228 362,204
TOTAL DEPOSITS $ 16,485,617 $ 15,294,855 $ 14,869,979 $ 14,797,578 $ 14,461,978

(1) Total brokered deposits of $1.5 billion, which includes brokered CD's of $593.0 million at March 31, 2026.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
Three Months Ended
March 31, 2026 March 31, 2025
Average Balance Interest
Income /
Expense 		Average
Rate 		Average Balance Interest
Income /
Expense 		Average
Rate
ASSETS
Interest-bearing deposits $ 212,164 $ 1,244 2.35 % $ 294,016 $ 2,372 3.23 %
Federal Home Loan Bank stock 62,720 1,965 12.53 43,980 997 9.07
Investment Securities: (1)
Taxable 1,510,344 7,547 2.00 1,634,452 8,372 2.05
Tax-exempt (2) 2,062,071 15,946 3.09 2,046,674 15,844 3.10
Total Investment Securities 3,572,415 23,493 2.63 3,681,126 24,216 2.63
Loans held for sale 70,911 1,427 8.05 20,965 319 6.09
Loans: (3)
Commercial 10,234,765 164,765 6.44 8,770,282 147,772 6.74
Real estate mortgage 2,369,115 27,915 4.71 2,191,384 24,446 4.46
HELOC and installment 1,123,844 19,520 6.95 828,874 15,191 7.33
Tax-exempt (2) 1,197,050 14,634 4.89 1,129,848 13,332 4.72
Total Loans 14,995,685 228,261 6.09 12,941,353 201,060 6.21
Total Earning Assets 18,842,984 254,963 5.41 % 16,960,475 228,645 5.39 %
Total Non-Earning Assets 1,564,539 1,381,263
TOTAL ASSETS $ 20,407,523 $ 18,341,738
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits $ 5,430,190 $ 29,781 2.19 % $ 5,522,434 $ 34,606 2.51 %
Money market deposits 4,566,275 32,048 2.81 3,437,998 25,952 3.02
Savings deposits 1,371,796 2,233 0.65 1,299,405 2,445 0.75
Certificates and other time deposits 2,243,417 20,031 3.57 1,947,854 17,544 3.60
Total Interest-Bearing Deposits 13,611,678 84,093 2.47 12,207,691 80,547 2.64
Borrowings 1,408,233 13,173 3.74 1,262,926 11,701 3.71
Total Interest-Bearing Liabilities 15,019,911 97,266 2.59 13,470,617 92,248 2.74
Noninterest-bearing deposits 2,468,792 2,211,647
Other liabilities 263,064 318,600
Total Liabilities 17,751,767 16,000,864
STOCKHOLDERS' EQUITY 2,655,756 2,340,874
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 20,407,523 $ 18,341,738
Net Interest Income (FTE) $ 157,697 $ 136,397
Net Interest Spread (FTE) (4) 2.82 % 2.65 %
Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets 5.41 % 5.39 %
Interest Expense / Average Earning Assets 2.06 % 2.17 %
Net Interest Margin (FTE) (5) 3.35 % 3.22 %
(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2026 and 2025. These totals equal $6.4 million and $6.1 million for the three months ended March 31, 2026 and 2025, 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
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Net Income Available to Common Stockholders (GAAP) $ 27,687 $ 56,596 $ 56,297 $ 56,363 $ 54,870
Adjustments:
Net realized losses on sales of available for sale securities - - - 1 7
Net loss on mortgage loans reclassified to held for sale 29,755 - - - -
Acquisition-related expenses 16,968 524 276 - -
Non-core expenses (1)(2) - (743 ) 633 - -
Tax on adjustments (11,279 ) 53 (220 ) - (2 )
Adjusted Net Income Available to Common Stockholders (non-GAAP) $ 63,131 $ 56,430 $ 56,986 $ 56,364 $ 54,875
Average Diluted Common Shares Outstanding (in thousands) 61,008 57,442 57,448 57,773 58,242
Diluted Earnings Per Common Share (GAAP) $ 0.45 $ 0.99 $ 0.98 $ 0.98 $ 0.94
Adjustments:
Net realized losses on sales of available for sale securities - - - - -
Net loss on mortgage loans reclassified to held for sale 0.49 - - - -
Acquisition-related expenses 0.28 - - - -
Non-core expenses (1)(2) - (0.01 ) 0.01 - -
Tax on adjustments (0.19 ) - - - -
Adjusted Diluted Earnings Per Common Share (non-GAAP) $ 1.03 $ 0.98 $ 0.99 $ 0.98 $ 0.94
(1) Non-core expenses in the Three Months Ended December 31, 2025 included a $0.7 million reduction in the FDIC special assessment
(2) Non-core expenses in the Three Months Ended September 30, 2025 included $0.6 million of severance costs
NET INTEREST MARGIN (FTE) (NON-GAAP)
(Dollars in Thousands)
Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Net Interest Income (GAAP) $ 151,303 $ 139,064 $ 133,665 $ 133,014 $ 130,270
Fully Taxable Equivalent ("FTE") Adjustment 6,394 6,185 6,209 6,199 6,127
Net Interest Income (FTE) (Non-GAAP) $ 157,697 $ 145,249 $ 139,874 $ 139,213 $ 136,397
Average Earning Assets (GAAP) $ 18,842,984 $ 17,648,233 $ 17,282,901 $ 17,158,984 $ 16,960,475
Net Interest Margin (GAAP) 3.21 % 3.15 % 3.09 % 3.10 % 3.07 %
FTE Adjustment 0.14 % 0.14 % 0.15 % 0.15 % 0.15 %
Net Interest Margin (FTE) (Non-GAAP) 3.35 % 3.29 % 3.24 % 3.25 % 3.22 %
RETURN ON TANGIBLE COMMON EQUITY (NON-GAAP)
(Dollars In Thousands) Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Total Average Stockholders' Equity (GAAP) $ 2,655,756 $ 2,452,005 $ 2,367,971 $ 2,340,010 $ 2,340,874
Less: Average Preferred Stock (25,125 ) (25,125 ) (25,125 ) (25,125 ) (25,125 )
Less: Average Intangible Assets, Net of Tax (784,490 ) (723,466 ) (724,619 ) (725,813 ) (726,917 )
Average Tangible Common Equity, Net of Tax (non-GAAP) $ 1,846,141 $ 1,703,414 $ 1,618,227 $ 1,589,072 $ 1,588,832
Net Income Available to Common Stockholders (GAAP) $ 27,687 $ 56,596 $ 56,297 $ 56,363 $ 54,870
Plus: Intangible Asset Amortization, Net of Tax 1,819 1,183 1,185 1,188 1,206
Tangible Net Income (Non-GAAP) $ 29,506 $ 57,779 $ 57,482 $ 57,551 $ 56,076
Return on Tangible Common Equity (non-GAAP) 6.39 % 13.57 % 14.21 % 14.49 % 14.12 %
EFFICIENCY RATIO (NON-GAAP)
(Dollars In Thousands) Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
Noninterest Expense (GAAP) $ 125,145 $ 99,522 $ 96,561 $ 93,598 $ 92,902
Less: Intangible Asset Amortization (2,302 ) (1,498 ) (1,499 ) (1,505 ) (1,526 )
Less: OREO and Foreclosure Expenses (1,100 ) (775 ) (121 ) (29 ) (600 )
Adjusted Noninterest Expense (non-GAAP) $ 121,743 $ 97,249 $ 94,941 $ 92,064 $ 90,776
Net Interest Income (GAAP) $ 151,303 $ 139,064 $ 133,665 $ 133,014 $ 130,270
Plus: Fully Taxable Equivalent Adjustment 6,394 6,185 6,209 6,199 6,127
Net Interest Income on a Fully Taxable Equivalent Basis (non-GAAP) $ 157,697 $ 145,249 $ 139,874 $ 139,213 $ 136,397
Noninterest Income (GAAP) $ 5,829 $ 33,106 $ 32,477 $ 31,303 $ 30,048
Less: Investment Securities (Gains) Losses - - - 1 7
Adjusted Noninterest Income (non-GAAP) $ 5,829 $ 33,106 $ 32,477 $ 31,304 $ 30,055
Adjusted Revenue (non-GAAP) $ 163,526 $ 178,355 $ 172,351 $ 170,517 $ 166,452
Efficiency Ratio (non-GAAP) 74.45 % 54.52 % 55.09 % 53.99 % 54.54 %
Adjusted Noninterest Expense (non-GAAP) $ 121,743 $ 97,249 $ 94,941 $ 92,064 $ 90,776
Less: Acquisition-related Expenses (16,968 ) (524 ) (276 ) - -
Less: Non-core Expenses (1)(2) - 743 (633 ) - -
Adjusted Noninterest Expense Excluding Non-core Expenses (non-GAAP) $ 104,775 $ 97,468 $ 94,032 $ 92,064 $ 90,776
Adjusted Revenue (non-GAAP) $ 163,526 $ 178,355 $ 172,351 $ 170,517 $ 166,452
Add: Net loss on mortgage loans reclassified to held for sale 29,755 - - - -
Adjusted Revenue Excluding Net loss on mortgage loans reclassified to held to sale (non-GAAP) $ 193,281 $ 178,355 $ 172,351 $ 170,517 $ 166,452
Adjusted Efficiency Ratio (non-GAAP) 54.21 % 54.65 % 54.56 % 53.99 % 54.54 %
(1) Non-core expenses in the Three Months Ended December 31, 2025 included a $0.7 million reduction in the FDIC special assessment
(2) Non-core expenses in the Three Months Ended September 30, 2025 included $0.6 million of severance costs

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