MUNCIE, Ind., April 22, 2026 (GLOBE NEWSWIRE) -- First Merchants Corporation (NASDAQ - FRME) (the "Corporation")
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 | Average | Average Balance | Interest | Average | ||||||||||||
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 | |||||||||||||||||||
SOURCE: First Merchants Corporation, Muncie, Indiana