First Merchants Corporation (NASDAQ - FRME) (the "Corporation" or "First Merchants")

Second Quarter 2026 Highlights:

• Net income available to common stockholders was $43.5 million, or $0.70 per diluted common share, compared to $27.7 million, or $0.45 per diluted common share, in the first quarter of 2026. On an adjusted basis¹, net income totaled $46.4 million, or $0.74 per diluted common share, compared to $63.1 million, or $1.03 per diluted common share in the prior quarter.
• Adjusted pre-tax, pre-provision income¹ of $84.6 million, compared to $78.7 million in the prior quarter and $70.7 million in the second quarter of 2025.
• Net interest margin on a fully taxable equivalent basis¹ of 3.38%, up 3 basis points from the prior quarter and up 13 basis points from the second quarter of 2025.
• Loan growth of $221.7 million, or 5.8% annualized, on a linked quarter basis².
• Sold $271.1 million of mortgage loans with a weighted average rate of 3.43% during the current quarter and deployed proceeds to fund loan growth and pay down high-cost funding. The loans had been moved to held-for-sale and marked to fair value in the first quarter.
• Deposit growth of $267.8 million, or 6.5% annualized, on a linked quarter basis.
• Robust capital position with Common Equity Tier 1 Capital Ratio of 11.16%.
• Repurchased 976,631 shares of common stock totaling $38.3 million year-to-date, including 336,145 shares totaling $13.4 million in the second quarter.
• Nonperforming assets to total assets were 56 basis points compared to 43 basis points on a linked quarter basis. Two commercial lending relationships with outstanding balances totaling $41.8 million were placed in nonaccrual status and associated reserves of $29.7 million were recorded.
• Adjusted efficiency ratio¹ totaled 53.22% for the quarter.
• Successfully completed systems conversion of First Savings Financial Group, Inc. (“First Savings”) in mid-May.
  

"First Merchants continued to build momentum during the second quarter with expanding net interest margin, solid loan and deposit growth, and another quarter of strong commercial loan production," said Mark Hardwick, Chief Executive Officer. "While we identified two commercial lending relationships that were placed on nonaccrual, we acted promptly to recognize the associated reserves and believe our balance sheet remains well positioned. We successfully completed the integration of First Savings, further strengthening our statewide Indiana franchise and enhancing our ability to serve clients across Indiana, Ohio and Michigan. Our capital, liquidity and credit quality remain very strong and position us well to execute our long-term growth strategy and continue creating shareholder value."

 

Second Quarter Financial Results:

The Corporation reported second quarter 2026 net income available to common stockholders of $43.5 million compared to $56.4 million during the same period in 2025. Diluted earnings per common share for the period totaled $0.70 compared to $0.98 in the second quarter of 2025. Current quarter results included acquisition-related costs of $3.8 million that consist primarily of employee salaries, equipment, and professional fees. Excluding these non-core charges, adjusted earnings per common share¹ for the second quarter of 2026 totaled $0.74 compared to $0.98 in the prior year period. Subsequent to quarter-end, based on additional information obtained regarding conditions that existed at June 30, 2026, two commercial lending relationships were placed on nonaccrual status and reserve levels were increased, resulting in elevated provision expense for the second quarter. The first was a $28.1 million participation in a shared national credit to a commercial authorized wireless retailer. The second was a credit to a commercial and residential roofing contractor with an outstanding balance of $13.7 million. Associated reserves for these credits totaled $29.7 million.

Total assets of the Corporation equaled $21.3 billion as of quarter-end and loans totaled $15.5 billion. Loans increased $2.2 billion during the last twelve months and $268.8 million on a linked quarter basis. During the second quarter, the Corporation completed the previously announced sale of $271.1 million of mortgage loans that had been transferred to held-for-sale during the first quarter. Additionally, mortgage loans totaling $47.1 million were returned to held-for-investment during the second quarter. Excluding loans acquired through First Savings and the impact of mortgage loan sale activity, the Corporation generated organic loan growth of $697.9 million, or 5.2% during the past twelve months. On a linked quarter basis, organic loan growth totaled $221.7 million, or 5.8% annualized.

Investment securities, totaling $3.3 billion, decreased $88.9 million, or 2.6% during the last twelve months and decreased $17.8 million, or 2.2% annualized on a linked quarter basis. Investment securities declined during the quarter due to principal paydowns and maturities, offset by an increase in the securities portfolio valuation.

Total deposits equaled $16.8 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. Total deposits increased $267.8 million, or 6.5% annualized, on a linked quarter basis. The loan to deposit ratio of 92.7% at period end remained stable on a linked quarter basis.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $241.6 million as of quarter-end, or 1.56% of loans, an increase of $29.1 million from the prior quarter. Net charge-offs totaled $3.9 million and provision for credit losses of $33.0 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.5 million remained unchanged from the previous quarter. Nonperforming assets to total assets were 0.56% for the second quarter of 2026, an increase of 13 basis points compared to 0.43% in the prior quarter. The increase in nonperforming assets and provision for credit losses reflects the impact of the two commercial lending relationships placed in nonaccrual status.

Net interest income, totaling $158.9 million for the quarter, increased $7.6 million, or 5.0%, compared to prior quarter and increased $25.9 million, or 19.5%, compared to the second quarter of 2025. Fully taxable equivalent net interest margin was 3.38%, an increase of three basis points compared to the prior quarter and an increase of 13 basis points compared to the second quarter of 2025.

Noninterest income totaled $37.2 million for the quarter, an increase of $31.3 million, compared to the prior quarter and an increase of $5.9 million compared to the second quarter of 2025. The linked quarter increase primarily reflects the negative valuation adjustment of $29.8 million recorded in the first quarter on mortgage loans sold in the second quarter. Also contributing to the increase were higher gains on sales of loans and derivative hedge fees.

Noninterest expense totaled $115.3 million for the quarter, a decrease of $9.8 million from the prior quarter and an increase of $21.7 million from the second quarter of 2025. Acquisition-related costs totaling $3.8 million were incurred during the quarter, including $1.4 million in professional and other outside services and $1.0 million in equipment costs. Acquisition-related costs recorded in the prior quarter totaled $17.0 million.

The Corporation’s total risk-based capital ratio equaled 12.98%, the common equity tier 1 capital ratio equaled 11.16%, and the tangible common equity ratio totaled 8.99%. These ratios continue to reflect the Corporation’s strong capital position.

¹ See “Non-GAAP Financial Information” for reconciliation

² Excludes $47.1 million of loans returned to held-for-investment from held-for-sale

 

CONFERENCE CALL

First Merchants Corporation will conduct an earnings conference call and webcast at 9:00 a.m. (ET) on Thursday, July 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/BIc1f6f98686534d529e7f3d66c4d50b16)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/hqyvbr3q) during the time of the call. A replay of the webcast will be available until July 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; 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. First Merchants undertakes no obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release. In addition, First Merchants’ past results of operations do not necessarily indicate their anticipated future results.

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.

* * * *

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	June 30,
	2026		2025
ASSETS
Cash and due from banks	$86,665		$81,567
Interest-bearing deposits	529,432		223,343
Investment securities available for sale	1,384,392		1,358,130
Investment securities held to maturity, net of allowance for credit losses of $245 in 2026 and 2025	1,907,684		2,022,826
Loans held for sale	77,880		28,783
Loans	15,530,737		13,296,759
Less: Allowance for credit losses - loans	(241,615)		(195,316)
Net loans	15,289,122		13,101,443
Premises and equipment	148,164		122,808
Federal Home Loan Bank stock	70,818		47,290
Interest receivable	101,927		93,258
Goodwill	788,186		712,002
Other intangibles	38,972		16,797
Cash surrender value of life insurance	373,242		305,695
Other real estate owned	1,562		177
Tax asset, deferred and receivable	113,975		97,749
Other assets	436,744		380,909
TOTAL ASSETS	$21,348,765		$18,592,777
LIABILITIES
Deposits:
Noninterest-bearing	$3,831,836		$2,197,416
Interest-bearing	12,921,545		12,600,162
Total Deposits	16,753,381		14,797,578
Borrowings:
Federal funds purchased	—		85,000
Securities sold under repurchase agreements	103,340		114,758
Federal Home Loan Bank advances	1,414,059		898,702
Subordinated debentures and other borrowings	86,350		62,617
Total Borrowings	1,603,749		1,161,077
Interest payable	17,491		16,174
Other liabilities	276,967		269,996
Total Liabilities	18,651,588		16,244,825
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 - 62,205,528 and 57,272,433 shares	7,776		7,159
Additional paid-in capital	1,358,975		1,163,170
Retained earnings	1,438,894		1,342,473
Accumulated other comprehensive loss	(133,593)		(189,975)
Total Stockholders' Equity	2,697,177		2,347,952
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$21,348,765		$18,592,777

 

 

 

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)	Three Months Ended				Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)	June 30,				June 30,
	2026		2025		2026		2025
INTEREST INCOME
Loans:
Taxable	$226,531		$195,173		$440,158		$382,901
Tax-exempt	11,823		10,805		23,412		21,337
Investment securities:
Taxable	7,355		8,266		14,902		16,638
Tax-exempt	12,458		12,516		25,055		25,033
Deposits with financial institutions	1,147		1,892		2,391		4,264
Federal Home Loan Bank stock	1,525		1,083		3,490		2,080
Total Interest Income	260,839		229,735		509,408		452,253
INTEREST EXPENSE
Deposits	86,254		84,241		170,347		164,788
Federal funds purchased	717		965		1,307		1,777
Securities sold under repurchase agreements	419		663		751		1,405
Federal Home Loan Bank advances	13,190		9,714		24,238		19,078
Subordinated debentures and other borrowings	1,318		1,138		2,521		1,921
Total Interest Expense	101,898		96,721		199,164		188,969
NET INTEREST INCOME	158,941		133,014		310,244		263,284
Provision for credit losses	33,000		5,600		37,900		9,800
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	125,941		127,414		272,344		253,484
NONINTEREST INCOME
Service charges on deposit accounts	9,372		8,566		18,409		16,638
Fiduciary and wealth management fees	9,638		8,831		19,406		17,475
Card payment fees	5,505		4,932		10,780		9,458
Net gains and fees on sales of loans	7,742		5,849		14,253		10,871
Derivative hedge fees	1,117		831		1,681		1,235
Other customer fees	880		401		1,473		816
Earnings on bank-owned life insurance	2,325		1,913		5,771		4,092
Net realized losses on sales of available for sale securities	—		(1)		—		(8)
Net loss on mortgage loans reclassified to held for sale	—		—		(29,755)		—
Other income (loss)	577		(19)		967		774
Total Noninterest Income	37,156		31,303		42,985		61,351
NONINTEREST EXPENSE
Salaries and employee benefits	65,774		54,527		135,217		109,509
Net occupancy	8,227		6,845		16,528		14,061
Equipment	8,603		6,927		16,421		13,935
Marketing	2,370		1,997		3,971		3,350
Outside data processing fees	8,045		7,107		15,235		13,036
Printing and office supplies	491		272		868		619
Intangible asset amortization	2,706		1,505		5,008		3,031
FDIC assessments	4,390		3,552		8,283		7,200
Other real estate owned and foreclosure expenses	1,052		29		2,152		629
Professional and other outside services	4,979		3,741		19,572		7,002
Other expenses	8,710		7,096		17,237		14,128
Total Noninterest Expense	115,347		93,598		240,492		186,500
Income Before Income Taxes	47,750		65,119		74,837		128,335
Income tax expense	3,770		8,287		2,701		16,164
NET INCOME	43,980		56,832		72,136		112,171
Preferred stock dividends	469		469		938		938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$43,511		$56,363		$71,198		$111,233
PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$0.70		$0.98		$1.16		$1.93
Diluted Net Income Available to Common Stockholders	$0.70		$0.98		$1.15		$1.92
Cash Dividends Paid to Common Stockholders	$0.37		$0.36		$0.73		$0.71
Tangible Common Book Value Per Share1	$29.80		$27.90		$29.80		$27.90
Average Diluted Common Shares Outstanding (in thousands)	62,574		57,773		61,795		58,005

 

 

FINANCIAL HIGHLIGHTS
(Dollars In Thousands)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
NET CHARGE-OFFS	$3,905		$2,315		$14,161		$7,241
AVERAGE BALANCES:
Assets	$21,253,171		$18,508,785		$20,832,683		$18,425,723
Loans	15,423,286		13,211,729		15,175,407		13,077,288
Earning Assets	19,583,204		17,158,984		19,215,138		17,060,278
Deposits	16,638,273		14,632,113		16,360,912		14,526,314
Stockholders' Equity	2,702,249		2,340,010		2,679,131		2,340,440
FINANCIAL RATIOS:
Return on Average Assets	0.83%		1.23%		0.69%		1.22%
Return on Average Stockholders' Equity	6.44		9.63		5.32		9.51
Return on Tangible Common Stockholders' Equity1	9.80		14.49		8.10		14.30
Average Earning Assets to Average Assets	92.14		92.71		92.24		92.59
Allowance for Credit Losses - Loans as% of Loans	1.56		1.47		1.56		1.47
Net Charge-offs as% of Average Loans (Annualized)	0.10		0.07		0.19		0.11
Average Stockholders' Equity to Average Assets	12.71		12.64		12.86		12.70
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets	5.46		5.50		5.43		5.45
Interest Expense/Average Earning Assets	2.08		2.25		2.07		2.22
Net Interest Margin FTE1	3.38		3.25		3.36		3.23
Efficiency Ratio1	55.11		53.99		63.75		54.26

 

 

ASSET QUALITY
(Dollars In Thousands)	June 30,		March 31,		December 31,		September 30,		June 30,
	2026		2026		2025		2025		2025
Nonaccrual Loans	$118,203		$89,592		$71,773		$65,740		$67,358
Other Real Estate Owned and Repossessions	1,562		1,264		658		1,270		177
Nonperforming Assets (NPA)	119,765		90,856		72,431		67,010		67,535
Accruing Loans 90+ Days Delinquent	9,738		4,078		2,042		1,925		4,443
NPAs & 90+ Days Delinquent	$129,503		$94,934		$74,473		$68,935		$71,978
Allowance for Credit Losses - Loans	$241,615		$212,520		$195,597		$194,468		$195,316
Quarterly Net Charge-offs	3,905		10,256		6,021		5,148		2,315
NPAs / Assets%	0.56%		0.43%		0.38%		0.36%		0.36%
NPAs & 90 Day / Assets%	0.61%		0.45%		0.39%		0.37%		0.39%
NPAs / Loans and OREO%	0.77%		0.60%		0.52%		0.49%		0.51%
Allowance for Credit Losses - Loans as% of Loans	1.56%		1.39%		1.42%		1.43%		1.47%
Quarterly Net Charge-offs as% of Average Loans (Annualized)	0.10%		0.27%		0.18%		0.15%		0.07%

 

 

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	June 30,		March 31,		December 31,		September 30,		June 30,
	2026		2026		2025		2025		2025
ASSETS
Cash and due from banks	$86,665		$98,083		$84,158		$88,079		$81,567
Interest-bearing deposits	529,432		175,354		196,300		168,706		223,343
Investment securities available for sale	1,384,392		1,372,417		1,407,102		1,386,903		1,358,130
Investment securities held to maturity, net of allowance for credit losses	1,907,684		1,937,485		1,971,539		1,995,488		2,022,826
Loans held for sale	77,880		401,839		20,079		23,190		28,783
Loans	15,530,737		15,261,889		13,791,707		13,591,174		13,296,759
Less: Allowance for credit losses - loans	(241,615)		(212,520)		(195,597)		(194,468)		(195,316)
Net loans	15,289,122		15,049,369		13,596,110		13,396,706		13,101,443
Premises and equipment	148,164		146,013		121,058		121,771		122,808
Federal Home Loan Bank stock	70,818		70,835		47,245		47,264		47,290
Interest receivable	101,927		97,026		93,374		89,102		93,258
Goodwill	788,186		782,789		712,002		712,002		712,002
Other intangibles	38,972		41,678		13,800		15,298		16,797
Cash surrender value of life insurance	373,242		371,238		308,438		306,583		305,695
Other real estate owned	1,562		1,264		658		1,270		177
Tax asset, deferred and receivable	113,975		116,814		78,664		89,758		97,749
Other assets	436,744		410,317		374,574		369,509		380,909
TOTAL ASSETS	$21,348,765		$21,072,521		$19,025,101		$18,811,629		$18,592,777
LIABILITIES
Deposits:
Noninterest-bearing	$3,831,836		$3,748,279		$2,137,262		$2,100,570		$2,197,416
Interest-bearing	12,921,545		12,737,338		13,157,593		12,769,409		12,600,162
Total Deposits	16,753,381		16,485,617		15,294,855		14,869,979		14,797,578
Borrowings:
Federal funds purchased	—		170,000		40,000		199,370		85,000
Securities sold under repurchase agreements	103,340		89,458		103,755		122,226		114,758
Federal Home Loan Bank advances	1,414,059		1,299,192		798,549		798,626		898,702
Subordinated debentures and other borrowings	86,350		86,345		57,630		57,632		62,617
Total Borrowings	1,603,749		1,644,995		999,934		1,177,854		1,161,077
Interest payable	17,491		18,890		18,235		18,240		16,174
Other liabilities	276,967		250,454		245,410		333,154		269,996
Total Liabilities	18,651,588		18,399,956		16,558,434		16,399,227		16,244,825
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	7,776		7,813		7,119		7,149		7,159
Additional paid-in capital	1,358,975		1,369,879		1,150,816		1,158,026		1,163,170
Retained earnings	1,438,894		1,418,609		1,413,742		1,377,966		1,342,473
Accumulated other comprehensive loss	(133,593)		(148,861)		(130,135)		(155,864)		(189,975)
Total Stockholders' Equity	2,697,177		2,672,565		2,466,667		2,412,402		2,347,952
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$21,348,765		$21,072,521		$19,025,101		$18,811,629		$18,592,777

 

 

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	June 30,		March 31,		December 31,		September 30,		June 30,
	2026		2026		2025		2025		2025
INTEREST INCOME
Loans:
Taxable	$226,531		$213,627		$203,120		$200,406		$195,173
Tax-exempt	11,823		11,589		10,905		11,173		10,805
Investment securities:
Taxable	7,355		7,547		7,736		8,288		8,266
Tax-exempt	12,458		12,597		12,459		12,460		12,516
Deposits with financial institutions	1,147		1,244		2,187		1,676		1,892
Federal Home Loan Bank stock	1,525		1,965		1,037		1,092		1,083
Total Interest Income	260,839		248,569		237,444		235,095		229,735
INTEREST EXPENSE
Deposits	86,254		84,093		88,670		90,821		84,241
Federal funds purchased	717		590		218		224		965
Securities sold under repurchase agreements	419		332		405		654		663
Federal Home Loan Bank advances	13,190		11,048		8,047		8,638		9,714
Subordinated debentures and other borrowings	1,318		1,203		1,040		1,093		1,138
Total Interest Expense	101,898		97,266		98,380		101,430		96,721
NET INTEREST INCOME	158,941		151,303		139,064		133,665		133,014
Provision for credit losses	33,000		4,900		7,150		4,300		5,600
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	125,941		146,403		131,914		129,365		127,414
NONINTEREST INCOME
Service charges on deposit accounts	9,372		9,037		8,704		8,921		8,566
Fiduciary and wealth management fees	9,638		9,768		9,175		8,842		8,831
Card payment fees	5,505		5,275		5,325		5,007		4,932
Net gains and fees on sales of loans	7,742		6,511		5,421		4,983		5,849
Derivative hedge fees	1,117		564		1,053		1,097		831
Other customer fees	880		593		315		414		401
Earnings on bank-owned life insurance	2,325		3,446		1,854		1,667		1,913
Net realized losses on sales of available for sale securities	—		—		—		—		(1)
Net loss on mortgage loans reclassified to held for sale	—		(29,755)		—		—		—
Other income (loss)	577		390		1,259		1,546		(19)
Total Noninterest Income	37,156		5,829		33,106		32,477		31,303
NONINTEREST EXPENSE
Salaries and employee benefits	65,774		69,443		58,254		57,317		54,527
Net occupancy	8,227		8,301		7,283		7,057		6,845
Equipment	8,603		7,818		7,681		6,998		6,927
Marketing	2,370		1,601		2,324		2,120		1,997
Outside data processing fees	8,045		7,190		7,509		6,943		7,107
Printing and office supplies	491		377		450		311		272
Intangible asset amortization	2,706		2,302		1,498		1,499		1,505
FDIC assessments	4,390		3,893		2,684		3,526		3,552
Other real estate owned and foreclosure expenses	1,052		1,100		775		121		29
Professional and other outside services	4,979		14,593		3,774		3,718		3,741
Other expenses	8,710		8,527		7,290		6,951		7,096
Total Noninterest Expense	115,347		125,145		99,522		96,561		93,598
Income Before Income Taxes	47,750		27,087		65,498		65,281		65,119
Income tax expense (benefit)	3,770		(1,069)		8,433		8,516		8,287
NET INCOME	43,980		28,156		57,065		56,765		56,832
Preferred stock dividends	469		469		469		468		469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$43,511		$27,687		$56,596		$56,297		$56,363
PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$0.70		$0.46		$0.99		$0.98		$0.98
Diluted Net Income Available to Common Stockholders	$0.70		$0.45		$0.99		$0.98		$0.98
Cash Dividends Paid to Common Stockholders	$0.37		$0.36		$0.36		$0.36		$0.36
Tangible Common Book Value Per Share1	$29.80		$29.34		$30.18		$29.08		$27.90
Average Diluted Common Shares Outstanding (in thousands)	62,574		61,008		57,442		57,448		57,773
FINANCIAL RATIOS:
Return on Average Assets	0.83%		0.55%		1.20%		1.22%		1.23%
Return on Average Stockholders' Equity	6.44		4.17		9.23		9.51		9.63
Return on Tangible Common Stockholders' Equity1	9.80		6.39		13.57		14.21		14.49
Average Earning Assets to Average Assets	92.14		92.33		92.69		92.73		92.71
Allowance for Credit Losses - Loans as% of Total Loans	1.56		1.39		1.42		1.43		1.47
Net Charge-offs as% of Average Loans (Annualized)	0.10		0.27		0.18		0.15		0.07
Average Stockholders' Equity to Average Assets	12.71		13.01		12.88		12.71		12.64
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets	5.46		5.41		5.52		5.58		5.50
Interest Expense/Average Earning Assets	2.08		2.06		2.23		2.34		2.25
Net Interest Margin FTE1	3.38		3.35		3.29		3.24		3.25
Efficiency Ratio1	55.11		74.45		54.52		55.09		53.99

 

 

LOANS
(Dollars In Thousands)	June 30,		March 31,		December 31,		September 30,		June 30,
	2026		2026		2025		2025		2025
Commercial and industrial loans	$4,720,441		$4,611,596		$4,478,282		$4,604,895		$4,440,924
Agricultural land, production and other loans to farmers	323,348		310,788		283,125		275,817		265,172
Real estate loans:
Construction	874,419		899,895		804,775		789,021		836,033
Commercial real estate, non-owner occupied	3,271,620		3,192,337		2,338,666		2,304,889		2,171,092
Commercial real estate, owner occupied	1,368,627		1,334,959		1,237,100		1,232,117		1,226,797
Residential	2,361,480		2,273,860		2,420,310		2,412,783		2,397,094
Home equity	1,118,662		1,104,739		710,980		687,021		673,961
Individuals' loans for household and other personal expenditures	149,878		153,283		155,436		138,703		141,045
Public finance and other commercial loans	1,342,262		1,380,432		1,363,033		1,145,928		1,144,641
Loans	15,530,737		15,261,889		13,791,707		13,591,174		13,296,759
Allowance for credit losses - loans	(241,615)		(212,520)		(195,597)		(194,468)		(195,316)
NET LOANS	$15,289,122		$15,049,369		$13,596,110		$13,396,706		$13,101,443

 

 

DEPOSITS
(Dollars In Thousands)	June 30,		March 31,		December 31,		September 30,		June 30,
	2026		2026		2025		2025		2025
Demand deposits	$8,570,517		$8,009,548		$7,770,473		$7,645,698		$7,798,695
Savings deposits	6,043,560		6,204,526		5,481,785		5,164,707		4,984,659
Certificates and other time deposits of $100,000 or less	666,369		665,639		603,690		627,828		617,857
Certificates and other time deposits of $100,000 or more	1,054,075		1,012,922		915,293		910,337		891,139
Brokered certificates of deposits (1)	418,860		592,982		523,614		521,409		505,228
TOTAL DEPOSITS	$16,753,381		$16,485,617		$15,294,855		$14,869,979		$14,797,578

⁽¹⁾ Total brokered deposits of $1.3 billion, which includes brokered CD's of $418.9 million at June 30, 2026.

 

 

 

 

 

 

⁽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

 

 

PRE-TAX, PRE-PROVISION ("PTPP") EARNINGS, AS ADJUSTED (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,
	2026		2026		2025		2025		2025		2026		2025
Net Interest Income (GAAP)	$158,941		$151,303		$139,064		$133,665		$133,014		$310,244		$263,284
Noninterest Income (GAAP)	37,156		5,829		33,106		32,477		31,303		42,985		61,351
Total Revenue	196,097		157,132		172,170		166,142		164,317		353,229		324,635
Less: Noninterest Expense (GAAP)	(115,347)		(125,145)		(99,522)		(96,561)		(93,598)		(240,492)		(186,500)
Add: Net Realized Losses on Sales of Available for Sale Securities	—		—		—		—		1		—		8
Add: Net loss on mortgage loans reclassified to held for sale	—		29,755		—		—		—		29,755		—
Add: Acquisition-Related Expenses (non-GAAP)	3,830		16,968		524		276		—		20,798		—
Add: Non-core Expenses (1)(2) (non-GAAP)	—		—		(743)		633		—		—		—
Pre-Tax, Pre-Provision Earnings (non-GAAP)	$84,580		$78,710		$72,429		$70,490		$70,720		$163,290		$138,143
Average Assets (GAAP)	$21,253,171		$20,407,523		$19,039,989		$18,637,581		$18,508,785		$20,832,683		$18,425,723
Average Equity (GAAP)	$2,702,249		$2,655,756		$2,452,005		$2,367,971		$2,340,010		$2,679,131		$2,340,440
PTPP/Average Assets (PTPP ROA)	1.59%		1.54%		1.52%		1.51%		1.53%		1.57%		1.50%
PTPP/Average Equity (PTPP ROE)	12.52%		11.86%		11.82%		11.91%		12.09%		12.19%		11.80%

⁽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										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
	2026		2026		2025		2025		2025		2026		2025
Net Interest Income (GAAP)	$158,941		$151,303		$139,064		$133,665		$133,014		$310,244		$263,284
Fully Taxable Equivalent ("FTE") Adjustment	6,391		6,394		6,185		6,209		6,199		12,785		12,326
Net Interest Income (FTE) (Non-GAAP)	$165,332		$157,697		$145,249		$139,874		$139,213		$323,029		$275,610
Average Earning Assets (GAAP)	$19,583,204		$18,842,984		$17,648,233		$17,282,901		$17,158,984		$19,215,138		$17,060,278
Net Interest Margin (GAAP)	3.25%		3.21%		3.15%		3.09%		3.10%		3.23%		3.09%
FTE Adjustment	0.13%		0.14%		0.14%		0.15%		0.15%		0.13%		0.14%
Net Interest Margin (FTE) (Non-GAAP)	3.38%		3.35%		3.29%		3.24%		3.25%		3.36%		3.23%

 

 

 

⁽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