MUNCIE, Ind., July 22, 2026 (GLOBE NEWSWIRE) -- 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.

¹See "Non-GAAP Financial Information" for reconciliation

²Excludes $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.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Three Months Ended
	June 30, 2026						June 30, 2025
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	228,468	$	1,147	2.01	%	$	252,613	$	1,892	3.00	%
Federal Home Loan Bank stock		70,826		1,525	8.61			46,598		1,083	9.30
Investment Securities: ⁽¹⁾
Taxable		1,457,179		7,355	2.02			1,605,718		8,266	2.06
Tax-exempt ⁽²⁾		2,024,323		15,769	3.12			2,042,326		15,843	3.10
Total Investment Securities		3,481,502		23,124	2.66			3,648,044		24,109	2.64
Loans held for sale		379,122		4,541	4.79			25,411		389	6.12
Loans: ⁽³⁾
Commercial		10,809,590		172,562	6.39			9,006,650		154,108	6.84
Real estate mortgage		2,133,638		26,859	5.04			2,200,521		25,062	4.56
HELOC and installment		1,281,529		22,569	7.04			834,901		15,614	7.48
Tax-exempt ⁽²⁾		1,198,529		14,903	4.97			1,144,246		13,677	4.78
Total Loans, including loans held for sale		15,802,408		241,434	6.11			13,211,729		208,850	6.32
Total Earning Assets		19,583,204		267,230	5.46	%		17,158,984		235,934	5.50	%
Total Non-Earning Assets		1,669,967						1,349,801
TOTAL ASSETS	$	21,253,171					$	18,508,785
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	4,515,106	$	31,239	2.77	%	$	5,545,158	$	35,303	2.55	%
Money market deposits		4,731,251		33,269	2.81			3,613,952		28,714	3.18
Savings deposits		1,424,566		2,279	0.64			1,282,951		2,513	0.78
Certificates and other time deposits		2,241,647		19,467	3.47			2,003,682		17,711	3.54
Total Interest-Bearing Deposits		12,912,570		86,254	2.67			12,445,743		84,241	2.71
Borrowings		1,640,431		15,644	3.81			1,250,519		12,480	3.99
Total Interest-Bearing Liabilities		14,553,001		101,898	2.80			13,696,262		96,721	2.82
Noninterest-bearing deposits		3,725,703						2,186,370
Other liabilities		272,218						286,143
Total Liabilities		18,550,922						16,168,775
STOCKHOLDERS' EQUITY		2,702,249						2,340,010
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	21,253,171					$	18,508,785
Net Interest Income (FTE)			$	165,332					$	139,213
Net Interest Spread (FTE) ⁽⁴⁾					2.66	%					2.68	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.46	%					5.50	%
Interest Expense / Average Earning Assets					2.08	%					2.25	%
Net Interest Margin (FTE) ⁽⁵⁾					3.38	%					3.25	%

⁽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 $6.2 million for the three months ended June 30, 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.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Six Months Ended
	June 30, 2026						June 30, 2025
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Federal Funds Sold
Interest-bearing deposits	$	220,361	$	2,391	2.17	%	$	273,200	$	4,264	3.12	%
Federal Home Loan Bank stock		66,795		3,490	10.45			45,296		2,080	9.18
Investment Securities: ⁽¹⁾
Taxable		1,483,615		14,902	2.01			1,620,005		16,638	2.05
Tax-exempt ⁽²⁾		2,043,092		31,715	3.10			2,044,489		31,687	3.10
Total Investment Securities		3,526,707		46,617	2.64			3,664,494		48,325	2.64
Loans held for sale		225,868		5,968	5.28			23,190		708	6.11
Loans: ⁽³⁾
Commercial		10,523,765		337,327	6.41			8,889,119		301,880	6.79
Real estate mortgage		2,250,726		54,774	4.87			2,195,988		49,508	4.51
HELOC and installment		1,203,122		42,089	7.00			831,904		30,805	7.41
Tax-exempt ⁽²⁾		1,197,794		29,537	4.93			1,137,087		27,009	4.75
Total Loans, including loans held for sale		15,401,275		469,695	6.10			13,077,288		409,910	6.27
Total Earning Assets		19,215,138		522,193	5.43	%		17,060,278		464,579	5.45	%
Total Non-Earning Assets		1,617,545						1,365,445
TOTAL ASSETS	$	20,832,683					$	18,425,723
LIABILITIES
Interest-Bearing deposits:
Interest-bearing deposits	$	4,970,120	$	61,020	2.46	%	$	5,533,858	$	69,909	2.53	%
Money market deposits		4,649,219		65,317	2.81			3,526,461		54,666	3.10
Savings deposits		1,398,327		4,512	0.65			1,291,133		4,958	0.77
Certificates and other time deposits		2,242,527		39,498	3.52			1,975,923		35,255	3.57
Total Interest-Bearing Deposits		13,260,193		170,347	2.57			12,327,375		164,788	2.67
Borrowings		1,524,974		28,817	3.78			1,256,688		24,181	3.85
Total Interest-Bearing Liabilities		14,785,167		199,164	2.69			13,584,063		188,969	2.78
Noninterest-bearing deposits		3,100,719						2,198,939
Other liabilities		267,666						302,281
Total Liabilities		18,153,552						16,085,283
STOCKHOLDERS' EQUITY		2,679,131						2,340,440
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	20,832,683					$	18,425,723
Net Interest Income (FTE)			$	323,029					$	275,610
Net Interest Spread (FTE) ⁽⁴⁾					2.74	%					2.67	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.43	%					5.45	%
Interest Expense / Average Earning Assets					2.07	%					2.22	%
Net Interest Margin (FTE) ⁽⁵⁾					3.36	%					3.23	%

⁽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 $12.8 million and $12.3 million for the six months ended June 30, 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														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 Income Available to Common Stockholders (GAAP)	$	43,511		$	27,687		$	56,596		$	56,297		$	56,363	$	71,198		$	111,233
Adjustments:
Net realized losses on sales of available for sale securities		—			—			—			—			1		—			8
Net loss on mortgage loans reclassified to held for sale		—			29,755			—			—			—		29,755			—
Acquisition-related expenses		3,830			16,968			524			276			—		20,798			—
Non-core expenses ⁽¹⁾⁽²⁾		—			—			(743	)		633			—		—			—
Tax on adjustments		(925	)		(11,279	)		53			(220	)		—		(12,204	)		(2	)
Adjusted Net Income Available to Common Stockholders (non-GAAP)	$	46,416		$	63,131		$	56,430		$	56,986		$	56,364	$	109,547		$	111,239

Average Diluted Common Shares Outstanding (in thousands)		62,574			61,008			57,442			57,448			57,773		61,795			58,005

Diluted Earnings Per Common Share (GAAP)	$	0.70		$	0.45		$	0.99		$	0.98		$	0.98	$	1.15		$	1.92
Adjustments:
Net realized losses on sales of available for sale securities		—			—			—			—			—		—			—
Net loss on mortgage loans reclassified to held for sale		—			0.49			—			—			—		0.48			—
Acquisition-related expenses		0.06			0.28			—			—			—		0.34			—
Non-core expenses ⁽¹⁾⁽²⁾		—			—			(0.01	)		0.01			—		—			—
Tax on adjustments		(0.02	)		(0.19	)		—			—			—		(0.20	)		—
Adjusted Diluted Earnings Per Common Share (non-GAAP)	$	0.74		$	1.03		$	0.98		$	0.99		$	0.98	$	1.77		$	1.92

⁽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